157 
HR 4200 EAS/PP 
member’s dependents reside in that area on and 
after the date of the member’s departure for the 
duty station to which the member is reas-
signed.’’. 
(b) CONFORMING AMENDMENT.—The heading of such 
subsection is amended by striking ‘‘ARE UNABLE TO’’ and 
inserting ‘‘DO NOT’’. 
SEC. 602. IMMEDIATE LUMP-SUM REIMBURSEMENT FOR UN-
USUAL 
NONRECURRING 
EXPENSES 
IN-
CURRED FOR DUTY OUTSIDE THE CONTI-
NENTAL UNITED STATES. 
Section 405 of title 37, United States Code, is amended 
by adding at the end the following new subsection: 
‘‘(d) NONRECURRING EXPENSES.—(1) The Secretary 
concerned may pay a member of the uniformed services on 
duty as described in subsection (a) a reimbursement for a 
nonrecurring expense incurred by the member incident to 
such duty that— 
‘‘(A) is directly related to the conditions or loca-
tion of the duty; 
‘‘(B) is of a nature or a magnitude not normally 
incurred by members of the uniformed services on 
duty inside the continental United States; and
158 
HR 4200 EAS/PP 
‘‘(C) is not included in the per diem determined 
under subsection (b) as payable to the member under 
subsection (a). 
‘‘(2) Any reimbursement payable to a member under 
paragraph (1) is in addition to a per diem payable to that 
member under subsection (a).’’. 
SEC. 603. PERMANENT INCREASE IN AUTHORIZED AMOUNT 
OF FAMILY SEPARATION ALLOWANCE. 
(a) PERMANENT AMOUNT.—Subsection (a)(1) of sec-
tion 427 of title 37, United States Code, is amended by 
striking ‘‘$100’’ and inserting ‘‘$250’’. 
(b) REPEAL OF TEMPORARY AUTHORITY.—Subsection 
(e) of such section is repealed. 
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the earlier 
of— 
(1) the first day of the first month that begins 
after the date of the enactment of this Act; or 
(2) January 1, 2005.
159 
HR 4200 EAS/PP 
Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR RESERVE 
FORCES. 
(a) SELECTED RESERVE REENLISTMENT BONUS.— 
Section 308b(g) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2004’’ and inserting ‘‘December 
31, 2005’’. 
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘December 
31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED 
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of 
such title is amended by striking ‘‘December 31, 2004’’ and 
inserting ‘‘December 31, 2005’’. 
(d) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘December 
31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(e) READY RESERVE ENLISTMENT
AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended by 
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 
2005’’.
160 
HR 4200 EAS/PP 
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section 
308i(f ) of such title is amended by striking ‘‘December 31, 
2004’’ and inserting ‘‘December 31, 2005’’. 
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAY AUTHORITIES FOR CERTAIN 
HEALTH CARE PROFESSIONALS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code, 
is amended by striking ‘‘December 31, 2004’’ and inserting 
‘‘December 31, 2005’’. 
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN 
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED 
RESERVE.—Section 16302(d) of such title is amended by 
striking ‘‘January 1, 2005’’ and inserting ‘‘January 1, 
2006’’. 
(c) ACCESSION BONUS FOR REGISTERED NURSES.— 
Section 302d(a)(1) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2004’’ and inserting 
‘‘December 31, 2005’’. 
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended by 
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 
2005’’. 
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH 
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIAL-
161 
HR 4200 EAS/PP 
TIES.—Section 302g(f ) of such title is amended by striking 
‘‘December 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Sec-
tion 302h(a)(1) of such title is amended by striking ‘‘De-
cember 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND 
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS 
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e) 
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 31, 
2004’’ and inserting ‘‘December 31, 2005’’. 
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.— 
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND 
SPECIAL PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Section 
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2004’’ and inserting ‘‘December 31, 
2005’’.
162 
HR 4200 EAS/PP 
(b) ASSIGNMENT INCENTIVE PAY.—Section 307a(f) of 
such title is amended by striking ‘‘December 31, 2005’’ and 
inserting ‘‘December 31, 2006’’. 
(c) REENLISTMENT BONUS FOR ACTIVE MEMBERS.— 
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(d) ENLISTMENT BONUS FOR ACTIVE MEMBERS.— 
Section 309(e) of such title is amended by striking ‘‘Decem-
ber 31, 2004’’ and inserting ‘‘December 31, 2005’’. 
(e) RETENTION BONUS FOR MEMBERS WITH CRITICAL 
MILITARY SKILLS.—Section 323(i) of such title is amended 
by striking ‘‘December 31, 2004’’ and inserting ‘‘December 
31, 2005’’. 
(f) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by 
striking ‘‘December 31, 2004’’ and inserting ‘‘December 31, 
2005’’. 
SEC. 615. REDUCED SERVICE OBLIGATION FOR NURSES RE-
CEIVING NURSE ACCESSION BONUS. 
(a) 
PERIOD
OF
OBLIGATED
SERVICE.—Section 
302d(a)(1) of title 37, United States Code, is amended by 
striking ‘‘four years’’ and inserting ‘‘three years’’. 
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The 
amendment made by subsection (a) shall take effect on Octo-
ber 1, 2004, and shall apply with respect to agreements en-
163 
HR 4200 EAS/PP 
tered into under section 302d of title 37, United States 
Code, on or after such date. 
SEC. 616. ASSIGNMENT INCENTIVE PAY. 
(a) DISCONTINUATION UPON COMMENCEMENT OF TER-
MINAL LEAVE.—(1) Subsection (e) of section 307a of title 
37, United States Code, is amended by striking ‘‘absence 
of the member for authorized leave.’’ and inserting the fol-
lowing: 
‘‘(2) absence of the member for authorized leave, 
other than leave authorized for a period ending upon 
the discharge of the member or the release of the mem-
ber from active duty.’’. 
(2) Such subsection is further amended by striking ‘‘by 
reason of’’ and all that follows through ‘‘pursuant to orders 
or’’ and inserting ‘‘by reason of— 
‘‘(1) temporary duty performed by the member 
pursuant to orders; or’’. 
(b) DISCRETIONARY WRITTEN AGREEMENTS.—Sub-
section (b) of such section is amended to read as follows: 
‘‘(b) WRITTEN AGREEMENT.—The Secretary concerned 
may require a member to enter into a written agreement 
with the Secretary in order to qualify for the incentive pay 
under this section. A written agreement under this sub-
section shall set forth the period for which the incentive pay
164 
HR 4200 EAS/PP 
is to be provided and the monthly rate at which the incen-
tive pay is to be paid.’’. 
(c) EFFECTIVE DATE AND APPLICABILITY.—(1) The 
amendments made by subsection (a) shall take effect on Oc-
tober 1, 2004. 
(2) Paragraph (2) of section 307a(e) of title 37, United 
States Code, shall apply with respect to authorized leave 
for days after September 30, 2004. 
SEC. 617. PERMANENT INCREASE IN AUTHORIZED AMOUNT 
OF HOSTILE FIRE AND IMMINENT DANGER 
SPECIAL PAY. 
(a) PERMANENT AMOUNT.—Subsection (a) of section 
310 of title 37, United States Code, is amended by striking 
‘‘$150’’ in the matter preceding paragraph (1) and insert-
ing ‘‘$225’’. 
(b) REPEAL OF TEMPORARY AUTHORITY.—Subsection 
(e) of such section is repealed. 
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the earlier 
of— 
(1) the first day of the first month that begins 
after the date of the enactment of this Act; or 
(2) January 1, 2005.
165 
HR 4200 EAS/PP 
SEC. 618. ELIGIBILITY OF ENLISTED MEMBERS TO QUALIFY 
FOR CRITICAL SKILLS RETENTION BONUS 
WHILE SERVING ON INDEFINITE REENLIST-
MENT. 
Paragraph (2) of section 323(a) of title 37, United 
States Code, is amended to read as follows: 
‘‘(2) in the case of an enlisted member— 
‘‘(A) the member, if serving under an enlist-
ment for a definite period— 
‘‘(i) reenlists for a period of at least 
one year; or 
‘‘(ii) voluntarily extends the member’s 
enlistment for a period of at least one year; 
or 
‘‘(B) the member, if serving under an enlist-
ment for an indefinite period, enters into a writ-
ten agreement with the Secretary concerned to 
remain on active duty for at least one year 
under such enlistment.’’. 
SEC. 619. CLARIFICATION OF EDUCATIONAL PURSUITS 
QUALIFYING FOR SELECTED RESERVE EDU-
CATION LOAN REPAYMENT PROGRAM FOR 
HEALTH PROFESSIONS OFFICERS. 
Section 16302(a)(5) of title 10, United States Code, 
is amended by striking ‘‘regarding’’ and inserting ‘‘for a 
basic professional qualifying degree (as determined under
166 
HR 4200 EAS/PP 
regulations prescribed by the Secretary), or graduate edu-
cation, in’’. 
SEC. 620. BONUS FOR CERTAIN INITIAL SERVICE OF COM-
MISSIONED OFFICERS IN THE SELECTED RE-
SERVE. 
(a) AUTHORITY.—Chapter 5 of title 37, United States 
Code, is amended by inserting after section 308i the fol-
lowing new section: 
‘‘§ 308j. Special pay: bonus for certain initial service 
of commissioned officers in the Selected 
Reserve 
‘‘(a) AFFILIATION BONUS.—(1) The Secretary con-
cerned may pay an affiliation bonus under this section to 
an eligible commissioned officer in any of the armed forces 
who enters into an agreement with the Secretary to serve, 
for the period specified in the agreement, in the Selected 
Reserve of the Ready Reserve of an armed force under the 
Secretary’s jurisdiction— 
‘‘(A) in a critical officer skill designated under 
paragraph (3); or 
‘‘(B) to meet a manpower shortage in— 
‘‘(i) a unit of that Selected Reserve; or 
‘‘(ii) a particular pay grade in that armed 
force.
167 
HR 4200 EAS/PP 
‘‘(2) A commissioned officer is eligible for an affili-
ation bonus under this section if the officer— 
‘‘(A) either— 
‘‘(i) is serving on active duty for a period 
of more than 30 days; or 
‘‘(ii) is a member of a reserve component 
not on active duty and, if the member formerly 
served on active duty, was released from active 
duty under honorable conditions; 
‘‘(B) has not previously served in the Selected 
Reserve of the Ready Reserve; and 
‘‘(C) is not entitled to receive retired or retainer 
pay. 
‘‘(3)(A) The Secretary concerned shall designate for an 
armed force under the Secretary’s jurisdiction the critical 
officer skills to which the bonus authority under this sub-
section is to be applied. 
‘‘(B) A skill may be designated as a critical officer 
skill for an armed force under subparagraph (A) if, to meet 
requirements of that armed force, it is critical for that 
armed force to have a sufficient number of officers who are 
qualified in that skill. 
‘‘(4) An affiliation bonus payable pursuant to an 
agreement under this section to an eligible officer accrues 
on the date on which the person is assigned to a unit or
168 
HR 4200 EAS/PP 
position in the Selected Reserve pursuant to such agree-
ment. 
‘‘(b) ACCESSION BONUS.—(1) The Secretary concerned 
may pay an accession bonus under this section to an eligi-
ble person who enters into an agreement with the Sec-
retary— 
‘‘(A) to accept an appointment as a commis-
sioned officer in the armed forces; and 
‘‘(B) to serve in the Selected Reserve of the 
Ready Reserve in a skill designated under paragraph 
(2) for a period specified in the agreement. 
‘‘(2)(A) The Secretary concerned shall designate for an 
armed force under the Secretary’s jurisdiction the officer 
skills to which the authority under this subsection is to be 
applied. 
‘‘(B) A skill may be designated for an armed force 
under subparagraph (A) if, to mitigate a current or pro-
jected significant shortage of personnel in that armed force 
who are qualified in that skill, it is critical to increase the 
number of persons accessed into that armed force who are 
qualified in that skill or are to be trained in that skill. 
‘‘(3) An accession bonus payable to a person pursuant 
to an agreement under this section accrues on the date on 
which that agreement is accepted by the Secretary con-
cerned.
169 
HR 4200 EAS/PP 
‘‘(c) PERIOD OF OBLIGATED SERVICE.—An agreement 
entered into with the Secretary concerned under this section 
shall require the person entering into that agreement to 
serve in the Selected Reserve for a specified period. The pe-
riod specified in the agreement shall be any period not less 
than three years that the Secretary concerned determines 
appropriate to meet the needs of the reserve component in 
which the service is to be performed. 
‘‘(d) AMOUNT.—The amount of a bonus under this sec-
tion may be any amount not in excess of $6,000 that the 
Secretary concerned determines appropriate. 
‘‘(e) PAYMENT.—Upon acceptance of a written agree-
ment by the Secretary concerned under this section, the 
total amount of the bonus payable under the agreement be-
comes fixed. The agreement shall specify whether the bonus 
is to be paid in one lump sum or in installments. 
‘‘(f) RELATION TO OTHER ACCESSION BONUS AU-
THORITY.—No person may receive an affiliation bonus or 
accession bonus under this section and financial assistance 
under chapter 1608, 1609, or 1611 of title 10, or under sec-
tion 302g of this title, for the same period of service. 
‘‘(g) REPAYMENT FOR FAILURE TO COMMENCE OR 
COMPLETE OBLIGATED SERVICE.—(1) A person who, after 
receiving all or part of the bonus under an agreement en-
tered into by that person under this section, does not accept
170 
HR 4200 EAS/PP 
a commission as an officer or does not commence to partici-
pate or does not satisfactorily participate in the Selected 
Reserve for the total period of service specified in the agree-
ment shall repay to the United States such compensation 
or benefit, except under conditions prescribed by the Sec-
retary concerned. 
‘‘(2) The Secretary concerned shall include in each 
agreement entered into by the Secretary under this section 
the requirements that apply for any repayment under this 
subsection, including the method for computing the amount 
of the repayment and any exceptions. 
‘‘(3) An obligation to repay the United States imposed 
under paragraph (1) is for all purposes a debt owed to the 
United States. A discharge in bankruptcy under title 11 
that is entered less than five years after the termination 
of an agreement entered into under this section does not 
discharge a person from a debt arising under an agreement 
entered into under this subsection or a debt arising under 
paragraph (1).’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘308j. Special pay: bonus for certain initial service of commissioned officers in 
the Selected Reserve.’’.
171 
HR 4200 EAS/PP 
SEC. 621. RELATIONSHIP BETWEEN ELIGIBILITY TO RE-
CEIVE SUPPLEMENTAL SUBSISTENCE ALLOW-
ANCE AND ELIGIBILITY TO RECEIVE IMMI-
NENT DANGER PAY, FAMILY SEPARATION AL-
LOWANCE, AND CERTAIN FEDERAL ASSIST-
ANCE. 
(a) ENTITLEMENT NOT AFFECTED BY RECEIPT OF IM-
MINENT DANGER PAY AND FAMILY SEPARATION ALLOW-
ANCE.—Subsection (b)(2) of section 402a of title 37, United 
States Code, is amended by striking subparagraph (A) and 
inserting the following: 
‘‘(A) shall not take into consideration— 
‘‘(i) the amount of the supplemental subsist-
ence allowance that is payable under this section; 
‘‘(ii) the amount of special pay (if any) 
that is payable under section 310 of this section, 
relating to duty subject to hostile fire or immi-
nent danger; or 
‘‘(iii) the amount of family separation al-
lowance (if any) that is payable under section 
427 of this title; but’’. 
(b) ELIGIBILITY FOR OTHER FEDERAL ASSISTANCE.— 
Section 402a of such title is amended— 
(1) by redesignating subsections (g) and (h) as 
subsections (h) and (i), respectively; and
172 
HR 4200 EAS/PP 
(2) by inserting after subsection (f) the following 
new subsection (g): 
‘‘(g) ELIGIBILITY
FOR OTHER FEDERAL ASSIST-
ANCE.—(1)(A) A child or spouse of a member of the armed 
forces receiving the supplemental subsistence allowance 
under this section who, except for the receipt of such allow-
ance, would otherwise be eligible to receive a benefit de-
scribed in subparagraph (B) shall be considered to be eligi-
ble for that benefit. 
‘‘(B) The benefits referred to in subparagraph (A) are 
as follows: 
‘‘(i) Assistance provided under the Richard B. 
Russell National School Lunch Act (42 U.S.C. 1751 
et seq.). 
‘‘(ii) Assistance provided under the Child Nutri-
tion Act of 1966 (42 U.S.C. 1771 et seq.). 
‘‘(iii) A service under the Head Start Act (42 
U.S.C. 9831 et seq.). 
‘‘(iv) Assistance under the Child Care and Devel-
opment Block Grant Act of 1990 (42 U.S.C. 9858 et 
seq.). 
‘‘(2) A household that includes a member of the armed 
forces receiving the supplemental subsistence allowance 
under this section and, except for the receipt of such allow-
ance, would otherwise be eligible to receive a benefit under
173 
HR 4200 EAS/PP 
the Low-Income Home Energy Assistance Act of 1981 (42 
U.S.C. 8621 et seq.) shall be considered to be eligible for 
that benefit.’’. 
(c) REQUIREMENT FOR REPORT.—(1) Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the committees of Con-
gress named in paragraph (2) a report on the accessibility 
of social services to members of the Armed Forces and their 
families. The report shall include the following matters: 
(A) The social services for which members of the 
Armed Forces and their families are eligible under so-
cial services programs generally available to citizens 
and other nationals of the United States. 
(B) The extent to which members of the Armed 
Forces and their families utilize the social services for 
which they are eligible under the programs identified 
under subparagraph (A). 
(C) The efforts made by each of the military de-
partments— 
(i) to ensure that members of the Armed 
Forces and their families are aware of the social 
services for which they are eligible under the pro-
grams identified under subparagraph (A); and 
(ii) to assist members and their families in 
applying for and obtaining such social services.
174 
HR 4200 EAS/PP 
(2) The committees of Congress referred to in para-
graph (1) are as follows: 
(A) The Committee on Armed Services and the 
Committee on Health, Education, Labor, and Pen-
sions of the Senate. 
(B) The Committee on Armed Services of the 
House of Representatives. 
(d) EFFECTIVE DATE.—(1) Except as provided in 
paragraph (2), this section and the amendments made by 
this section shall take effect on October 1, 2004. 
(2) Subsection (c) shall take effect on the date of the 
enactment of this Act. 
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES 
FOR FAMILY MEMBERS TO ATTEND BURIAL 
CEREMONIES OF MEMBERS WHO DIE ON 
DUTY. 
(a) AUTHORIZED TRAVEL DESTINATION.—Subsection 
(a)(1) of section 411f of title 37, United States Code, is 
amended by inserting before the period at the end the fol-
lowing: ‘‘at the location determined under subsection (a)(8) 
or (d)(2) of section 1482 of title 10’’. 
(b) LIMITATION ON AMOUNT.—Subsection (b) of such 
section is amended to read as follows:
175 
HR 4200 EAS/PP 
‘‘(b) LIMITATION ON AMOUNT.—Allowances for travel 
under subsection (a) may not exceed the rates for two days 
and the time necessary for such travel.’’. 
(c) UNCONDITIONAL
ELIGIBILITY
OF
DECEASED’S 
PARENTS.—Subsection (c)(1)(C) of such section is amended 
by striking ‘‘If no person described in subparagraph (A) 
or (B) is provided travel and transportation allowances 
under subsection (a)(1), the’’ and inserting ‘‘The’’. 
SEC. 632. LODGING COSTS INCURRED IN CONNECTION 
WITH DEPENDENT STUDENT TRAVEL. 
(a) AUTHORITY.—Section 430(b)(1) of title 37, United 
States Code, is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(b) ALLOWANCE 
AUTHORIZED.—(1)’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(B) The allowance authorized under subparagraph 
(A) for an eligible dependent’s travel may include reim-
bursement for costs that are incurred by or for the depend-
ent for lodging of the dependent that is necessitated by an 
interruption in the travel caused by extraordinary cir-
cumstances prescribed in the regulations under subsection 
(a). The amount of a reimbursement payable under this 
subparagraph shall be a rate that is applicable to the cir-
176 
HR 4200 EAS/PP 
cumstances under regulations prescribed by the Secretaries 
concerned.’’. 
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The 
amendments made by subsection (a) shall take effect on Oc-
tober 1, 2004, and shall apply with respect to lodging that 
commences on or after such date. 
Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. SPECIAL RULE FOR COMPUTING THE HIGH-36 
MONTH AVERAGE FOR DISABLED MEMBERS 
OF RESERVE COMPONENTS. 
(a) COMPUTATION OF HIGH 36-MONTH AVERAGE.— 
Subsection (c) of section 1407 of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(3) SPECIAL RULE FOR RESERVE COMPONENT 
MEMBERS.—In the application of paragraphs (1) and 
(2) to a member of a reserve component of a uni-
formed service who is entitled to retired pay under 
section 1201 or 1202 of this title, each month during 
which the member performed duty for which basic 
pay is paid under section 203 of title 37 or com-
pensation is paid under section 206 of such title shall 
be treated as if it were one month of active service.’’.
177 
HR 4200 EAS/PP 
(b) EFFECTIVE
DATES
AND
APPLICABILITY.—(1) 
Paragraph (3) of section 1407(c) of title 10, United States 
Code (as added by subsection (a)), shall take effect on Octo-
ber 1, 2004, and shall apply with respect to months begin-
ning on or after such date, except as provided in paragraph 
(2). 
(2) For the computation of survivor annuities under 
subparagraph (A)(i) or (B) of section 1451(c)(1) of title 10, 
United States Code (as amended by section 642(b) of Public 
Law 107–107; 115 Stat. 1152)), paragraph (3) of section 
1407(c) of title 10, United States Code (as added by sub-
section (a)), shall take effect as of September 10, 2001, and 
shall apply with respect to deaths of members of the uni-
formed services occurring on or after that date. 
SEC. 642. DEATH BENEFITS ENHANCEMENT. 
(a) FINAL ACTIONS ON FISCAL YEAR 2004 DEATH 
BENEFITS STUDY.—(1) Congress finds that the study of the 
Federal death benefits for survivors of deceased members of 
the Armed Forces under section 647 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108– 
136; 117 Stat. 1520) has given Congress sufficient insight 
to initiate action to provide for the enhancement of the cur-
rent set of death benefits that are provided under law for 
the survivors.
178 
HR 4200 EAS/PP 
(2) The Secretary of Defense shall expedite the comple-
tion and submission of the final report, which was due on 
March 1, 2004, under section 647 of the National Defense 
Authorization Act for Fiscal Year 2004. 
(3) It is the sense of Congress that the President should 
promptly submit to Congress any recommendation for legis-
lation, together with a request for appropriations, that the 
President determines necessary to implement the death ben-
efits enhancements that are recommended in the final report 
under section 647 of the National Defense Authorization Act 
for Fiscal Year 2004. 
(b) INCREASES
OF DEATH GRATUITY CONSISTENT 
WITH INCREASES OF RATES OF BASIC PAY.—Section 1478 
of title 10, United States Code, is amended— 
(1) in subsection (a), by inserting ‘‘(as adjusted 
under subsection (c)’’ before the period at the end of 
the first sentence; and 
(2) by adding at the end the following new sub-
section: 
‘‘(c) Effective on the date on which rates of basic pay 
under section 204 of this title are increased under section 
1009 of title 37 or any other provision of law, the amount 
of the death gratuity provided under subsection (a) shall 
be increased by the same overall average percentage of the
179 
HR 4200 EAS/PP 
increase in the rates of basic pay taking effect on that 
date.’’. 
(c) FISCAL YEAR 2005 ACTIONS.—At the same time 
that the President submits to Congress the budget for fiscal 
year 2006 under section 1105(a) of title 31, United States 
Code, the President shall submit to the appropriate commit-
tees of Congress referred to in subsection (g) a draft or 
drafts of legislation to provide enhanced death benefits for 
survivors of deceased members of the uniformed services. The 
draft legislation shall include provisions for the following: 
(1) Revision of the Servicemembers’ Group Life 
Insurance program to provide for— 
(A) an increase of the maximum benefit 
provided under Servicemembers’ Group Life In-
surance to $350,000, together with an increase, 
each fiscal year, by the same overall average per-
centage increase that takes effect during such fis-
cal year in the rates of basic pay under section 
204 of title 37, United States Code; and 
(B) a minimum benefit of $100,000 at no 
cost to the insured members of the uniformed 
services who elect the maximum coverage, to-
gether with an increase in such minimum benefit 
each fiscal year by the same percentage increase 
as is described in subparagraph (A).
180 
HR 4200 EAS/PP 
(2) An additional set of death benefits for each 
member of the uniformed services who dies in the line 
of duty while on active duty that includes, at a min-
imum, an additional death gratuity in the amount 
that— 
(A) in the case of a member not described 
in subparagraph (B), is equal to the sum of— 
(i) the total amount of the basic pay to 
which the deceased member would have been 
entitled under section 204 of title 37, 
United States Code, if the member had not 
died and had continued to serve on active 
duty for an additional year; and 
(ii) the total amount of all allowances 
and special pays that the member would 
have been entitled to receive under title 37, 
United States Code, over the one-year pe-
riod beginning on the member’s date of 
death if the member had not died and had 
continued to serve on active duty for an ad-
ditional year with the unit to which the 
member was assigned or detailed on such 
date; and 
(B) in the case of a member who dies as a 
result of an injury caused by or incurred while
181 
HR 4200 EAS/PP 
exposed to hostile action (including any hostile 
fire or explosion and any hostile action from a 
terrorist source), is equal to twice the amount 
calculated under subparagraph (A). 
(3) Any other new death benefits or enhancement 
of existing death benefits that the President rec-
ommends. 
(4) Retroactive applicability of the benefits re-
ferred to in paragraph (2) and, as appropriate, the 
benefits recommended under paragraph (3) so as to 
provide the benefits— 
(A) for members of the uniformed services 
who die in line of duty on or after October 7, 
2001, of a cause incurred or aggravated while 
deployed in support of Operation Enduring 
Freedom; and 
(B) for members of the uniformed services 
who die in line of duty on or after March 19, 
2003, of a cause incurred or aggravated while 
deployed in support of Operation Iraqi Freedom. 
(d) CONSULTATION.—The President shall consult with 
the Secretary of Defense and the Secretary of Veterans Af-
fairs in developing the draft legislation required under sub-
section (c).
182 
HR 4200 EAS/PP 
(e) FISCAL YEAR 2006 BUDGET SUBMISSION.—The 
budget for fiscal year 2006 that is submitted to Congress 
under section 1105(a) of title 31, United States Code, shall 
include draft legislation (other than draft appropriations) 
that includes provisions that, on the basis of the assumption 
that the draft legislation submitted under subsection (c) 
would be enacted and would take effect in fiscal year 
2006— 
(1) would offset fully the increased outlays that 
would result from enactment of the provisions of the 
draft legislation submitted under subsection (c), for 
fiscal year 2006 and each of the ensuing nine fiscal 
years; 
(2) expressly state that they are proposed for the 
purpose of the offset described in paragraph (1); and 
(3) are included in full in the estimates that are 
made by the Director of the Congressional Budget Of-
fice and the Director of the Office of Management and 
Budget under section 252(d) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 
902(d)) with respect to the fiscal years referred to in 
paragraph (1). 
(f) EARLY SUBMISSION
OF PROPOSAL
FOR ADDI-
TIONAL DEATH BENEFITS.—Congress urges the President 
to submit the draft of legislation for the additional set of
183 
HR 4200 EAS/PP 
death benefits under paragraph (2) of subsection (c) before 
the time for submission required under that subsection and 
as soon as is practicable after the date of the enactment 
of this Act. 
(g) APPROPRIATE COMMITTEES OF CONGRESS.—For 
the purposes of subsection (c), the appropriate committees 
of Congress are as follows: 
(1) The Committees on Armed Services of the 
Senate and the House of Representatives, with respect 
to draft legislation that is within the jurisdiction of 
such committees. 
(2) The Committees on Veterans Affairs of the 
Senate and the House of Representatives, with respect 
to draft legislation within the jurisdiction of such 
committees. 
SEC. 643. REPEAL OF PHASE-IN OF CONCURRENT RECEIPT 
OF RETIRED PAY AND VETERANS’ DISABILITY 
COMPENSATION FOR VETERANS WITH SERV-
ICE-CONNECTED DISABILITIES RATED AS 100 
PERCENT. 
Section 1414 of title 10, United States Code, is amend-
ed— 
(1) in subsection (a)(1)— 
(A) by inserting after the first sentence the 
following new sentence: ‘‘During the period be-
184 
HR 4200 EAS/PP 
ginning on January 1, 2004, and ending on De-
cember 31, 2004, payment of retired pay to such 
a qualified retiree described in subsection 
(c)(1)(B) is subject to subsection (c).’’; and 
(B) in the last sentence, by inserting ‘‘(other 
than a qualified retiree covered by the preceding 
sentence)’’ after ‘‘such a qualified retiree’’; and 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by inserting 
‘‘(other than a retiree described by subpara-
graph (B))’’ after ‘‘the retiree’’; 
(ii) by redesignating subparagraphs 
(B) through (F) as subparagraphs (C) 
through (G), respectively; and 
(iii) by inserting after subparagraph 
(A) the following new subparagraph (B): 
‘‘(B) For a month for which the retiree re-
ceives veterans’ disability compensation for a 
disability rated as 100 percent, $750.’’; 
(B) by redesignating paragraph (11) as 
paragraph (12); and 
(C) by inserting after paragraph (10) the 
following new paragraph (11):
185 
HR 4200 EAS/PP 
‘‘(11) INAPPLICABILITY TO VETERANS WITH DIS-
ABILITIES RATED AS 100 PERCENT AFTER CALENDAR 
YEAR
2004.—This subsection shall not apply to a 
qualified retiree described by paragraph (1)(B) after 
calendar year 2004.’’. 
SEC. 644. FULL SBP SURVIVOR BENEFITS FOR SURVIVING 
SPOUSES OVER AGE 62. 
(a) PHASED INCREASE IN BASIC ANNUITY.— 
(1) INCREASE
TO
PERCENT.—Subsection 
(a)(1)(B)(i) of section 1451 of title 10, United States 
Code, is amended by striking ‘‘35 percent of the base 
amount.’’ and inserting ‘‘the product of the base 
amount and the percent applicable for the month. The 
percent applicable for a month is 35 percent for 
months beginning before October 2005, 40 percent for 
months beginning after September 2005 and before 
October 2008, 45 percent for months beginning after 
September 2008, and 55 percent for months beginning 
after September 2014.’’. 
(2) RESERVE-COMPONENT ANNUITY.—Subsection 
(a)(2)(B)(i)(I) of such section is amended by striking 
‘‘35 percent’’ and inserting ‘‘the percent specified 
under paragraph (1)(B)(i) as being applicable for the 
month’’.
186 
HR 4200 EAS/PP 
(3) SPECIAL-ELIGIBILITY
ANNUITY.—Subsection 
(c)(1)(B)(i) of such section is amended— 
(A) by striking ‘‘35 percent’’ and inserting 
‘‘the applicable percent’’; and 
(B) by adding at the end the following: 
‘‘The percent applicable for a month under the 
preceding sentence is the percent specified under 
subsection (a)(1)(B)(i) as being applicable for 
the month.’’. 
(4) CONFORMING AMENDMENT.—The heading for 
subsection (d)(2)(A) of such section is amended to 
read as follows: ‘‘COMPUTATION
OF
ANNUITY.—’’. 
(b) PHASED ELIMINATION OF SUPPLEMENTAL ANNU-
ITY.— 
(1) 
DECREASING
PERCENTAGES.—Section 
1457(b) of title 10, United States Code, is amended— 
(A) by striking ‘‘5, 10, 15, or 20 percent’’ 
and inserting ‘‘the applicable percent’’; and 
(B) by inserting after the first sentence the 
following: ‘‘The percent used for the computation 
shall be an even multiple of 5 percent and, what-
ever the percent specified in the election, may not 
exceed 20 percent for months beginning before 
October 2005, 15 percent for months beginning 
after September 2005 and before October 2008,
187 
HR 4200 EAS/PP 
and 10 percent for months beginning after Sep-
tember 2008.’’. 
(2) REPEAL OF PROGRAM IN 2014.—Effective on 
October 1, 2014, chapter 73 of such title is amend-
ed— 
(A) by striking subchapter III; and 
(B) by striking the item relating to sub-
chapter III in the table of subchapters at the be-
ginning of that chapter. 
(c) RECOMPUTATION OF ANNUITIES.— 
(1) REQUIREMENT FOR RECOMPUTATION.—Effec-
tive on the first day of each month referred to in 
paragraph (2)— 
(A) each annuity under section 1450 of title 
10, United States Code, that commenced before 
that month, is computed under a provision of 
section 1451 of that title amended by subsection 
(a), and is payable for that month shall be re-
computed so as to be equal to the amount that 
would be in effect if the percent applicable for 
that month under that provision, as so amended, 
had been used for the initial computation of the 
annuity; and 
(B) each supplemental survivor annuity 
under section 1457 of such title that commenced
188 
HR 4200 EAS/PP 
before that month and is payable for that month 
shall be recomputed so as to be equal to the 
amount that would be in effect if the percent ap-
plicable for that month under that section, as 
amended by this section, had been used for the 
initial computation of the supplemental survivor 
annuity. 
(2) TIMES FOR RECOMPUTATION.—The require-
ments for recomputation of annuities under para-
graph (1) apply with respect to the following months: 
(A) October 2005. 
(B) October 2008. 
(C) October 2014. 
(d) RECOMPUTATION OF RETIRED PAY REDUCTIONS 
FOR
SUPPLEMENTAL
SURVIVOR
ANNUITIES.—The Sec-
retary of Defense shall take such actions as are necessitated 
by the amendments made by subsection (b) and the require-
ments of subsection (c)(1)(B) to ensure that the reductions 
in retired pay under section 1460 of title 10, United States 
Code, are adjusted to achieve the objectives set forth in sub-
section (b) of that section. 
SEC. 645. OPEN ENROLLMENT PERIOD FOR SURVIVOR BEN-
EFIT PLAN COMMENCING OCTOBER 1, 2005. 
(a) PERSONS NOT CURRENTLY PARTICIPATING
IN 
SURVIVOR BENEFIT PLAN.—
189 
HR 4200 EAS/PP 
(1) ELECTION OF SBP COVERAGE.—An eligible 
retired or former member may elect to participate in 
the Survivor Benefit Plan under subchapter II of 
chapter 73 of title 10, United States Code, during the 
open enrollment period specified in subsection (f). 
(2) ELECTION OF SUPPLEMENTAL ANNUITY COV-
ERAGE.—An eligible retired or former member who 
elects under paragraph (1) to participate in the Sur-
vivor Benefit Plan at the maximum level may also 
elect during the open enrollment period to participate 
in the Supplemental Survivor Benefit Plan estab-
lished under subchapter III of chapter 73 of title 10, 
United States Code. 
(3) ELIGIBLE RETIRED OR FORMER MEMBER.— 
For purposes of paragraphs (1) and (2), an eligible 
retired or former member is a member or former 
member of the uniformed services who on the day be-
fore the first day of the open enrollment period is not 
a participant in the Survivor Benefit Plan and— 
(A) is entitled to retired pay; or 
(B) would be entitled to retired pay under 
chapter 1223 of title 10, United States Code, but 
for the fact that such member or former member 
is under 60 years of age.
190 
HR 4200 EAS/PP 
(4) STATUS UNDER SBP OF PERSONS MAKING 
ELECTIONS.— 
(A) STANDARD ANNUITY.—A person making 
an election under paragraph (1) by reason of eli-
gibility under paragraph (3)(A) shall be treated 
for all purposes as providing a standard annuity 
under the Survivor Benefit Plan. 
(B) 
RESERVE-COMPONENT
ANNUITY.—A 
person making an election under paragraph (1) 
by reason of eligibility under paragraph (3)(B) 
shall be treated for all purposes as providing a 
reserve-component annuity under the Survivor 
Benefit Plan. 
(b) ELECTION
TO
INCREASE
COVERAGE
UNDER 
SBP.—A person who on the day before the first day of the 
open enrollment period is a participant in the Survivor 
Benefit Plan but is not participating at the maximum base 
amount or is providing coverage under the Plan for a de-
pendent child and not for the person’s spouse or former 
spouse may, during the open enrollment period, elect to— 
(1) participate in the Plan at a higher base 
amount (not in excess of the participant’s retired 
pay); or 
(2) provide annuity coverage under the Plan for 
the person’s spouse or former spouse at a base amount
191 
HR 4200 EAS/PP 
not less than the base amount provided for the de-
pendent child. 
(c) ELECTION FOR CURRENT SBP PARTICIPANTS TO 
PARTICIPATE IN SUPPLEMENTAL SBP.— 
(1) ELECTION.—A person who is eligible to make 
an election under this paragraph may elect during 
the open enrollment period to participate in the Sup-
plemental Survivor Benefit Plan established under 
subchapter III of chapter 73 of title 10, United States 
Code. 
(2) PERSONS ELIGIBLE.—Except as provided in 
paragraph (3), a person is eligible to make an elec-
tion under paragraph (1) if on the day before the first 
day of the open enrollment period the person is a par-
ticipant in the Survivor Benefit Plan at the max-
imum level, or during the open enrollment period the 
person increases the level of such participation to the 
maximum level under subsection (b) of this section, 
and under that Plan is providing annuity coverage 
for the person’s spouse or a former spouse. 
(3) LIMITATION
ON
ELIGIBILITY
FOR
CERTAIN 
SBP PARTICIPANTS NOT AFFECTED BY TWO-TIER AN-
NUITY
COMPUTATION.—A person is not eligible to 
make an election under paragraph (1) if (as deter-
mined by the Secretary concerned) the annuity of a
192 
HR 4200 EAS/PP 
spouse or former spouse beneficiary of that person 
under the Survivor Benefit Plan is to be computed 
under section 1451(e) of title 10, United States Code. 
However, such a person may during the open enroll-
ment period waive the right to have that annuity 
computed under such section 1451(e). Any such elec-
tion is irrevocable. A person making such a waiver 
may make an election under paragraph (1) as in the 
case of any other participant in the Survivor Benefit 
Plan. 
(d) MANNER OF MAKING ELECTIONS.—An election 
under this section shall be made in writing, signed by the 
person making the election, and received by the Secretary 
concerned before the end of the open enrollment period. Any 
such election shall be made subject to the same conditions, 
and with the same opportunities for designation of bene-
ficiaries and specification of base amount, that apply under 
the Survivor Benefit Plan or the Supplemental Survivor 
Benefit Plan, as the case may be. A person making an elec-
tion under subsection (a) to provide a reserve-component 
annuity shall make a designation described in section 
1448(e) of title 10, United States Code. 
(e) EFFECTIVE DATE FOR ELECTIONS.—Any such elec-
tion shall be effective as of the first day of the first calendar
193 
HR 4200 EAS/PP 
month following the month in which the election is received 
by the Secretary concerned. 
(f) OPEN ENROLLMENT PERIOD.—The open enroll-
ment period under this section shall be the one-year period 
beginning on October 1, 2005. 
(g) EFFECT OF DEATH OF PERSON MAKING ELECTION 
WITHIN TWO YEARS OF MAKING ELECTION.—If a person 
making an election under this section dies before the end 
of the two-year period beginning on the effective date of the 
election, the election is void and the amount of any reduc-
tion in retired pay of the person that is attributable to the 
election shall be paid in a lump sum to the person who 
would have been the deceased person’s beneficiary under the 
voided election if the deceased person had died after the end 
of such two-year period. 
(h) APPLICABILITY
OF
CERTAIN
PROVISIONS
OF 
LAW.—The provisions of sections 1449, 1453, and 1454 of 
title 10, United States Code, are applicable to a person 
making an election, and to an election, under this section 
in the same manner as if the election were made under the 
Survivor Benefit Plan or the Supplemental Survivor Ben-
efit Plan, as the case may be. 
(i) ADDITIONAL PREMIUM.—The Secretary of Defense 
shall prescribe in regulations premiums which a person 
electing under this section shall be required to pay for par-
194 
HR 4200 EAS/PP 
ticipating in the Survivor Benefit Plan pursuant to the 
election. The total amount of the premiums to be paid by 
a person under the regulations shall be equal to the sum 
of— 
(i) the total amount by which the retired pay of 
the person would have been reduced before the effective 
date of the election if the person had elected to par-
ticipate in the Survivor Benefit Plan (for the same 
base amount specified in the election) at the first op-
portunity that was afforded the member to partici-
pate under chapter 73 of title 10, United States Code; 
(ii) interest on the amounts by which the retired 
pay of the person would have been so reduced, com-
puted from the dates on which the retired pay would 
have been so reduced at such rate or rates and accord-
ing to such methodology as the Secretary of Defense 
determines reasonable; and 
(iii) any additional amount that the Secretary 
determines necessary to protect the actuarial sound-
ness of the Department of Defense Military Retire-
ment Fund against any increased risk for the fund 
that is associated with the election. 
(A) Premiums paid under the regulations shall be 
credited to the Department of Defense Military Retirement 
Fund.
195 
HR 4200 EAS/PP 
(B) In this paragraph, the term ‘‘Department of De-
fense Military Retirement Fund’’ means the Department of 
Defense Military Retirement Fund established under section 
1461(a) of title 10, United States Code. 
Subtitle E—Other Matters 
SEC. 651. INCREASED MAXIMUM PERIOD FOR LEAVE OF AB-
SENCE FOR PURSUIT OF A PROGRAM OF EDU-
CATION IN A HEALTH CARE PROFESSION. 
Section 708(a) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘for a period not to exceed two 
years’’; and 
(2) by adding at the end the following: ‘‘The pe-
riod of a leave of absence granted under this section 
may not exceed two years, except that the period may 
exceed two years but may not exceed three years in 
the case of an eligible member pursuing a program of 
education in a health care profession.’’. 
SEC. 652. ELIGIBILITY OF MEMBERS FOR REIMBURSEMENT 
OF EXPENSES INCURRED FOR ADOPTION 
PLACEMENTS MADE BY FOREIGN GOVERN-
MENTS. 
Section 1052(g)(3) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph:
196 
HR 4200 EAS/PP 
‘‘(D) A foreign government or an agency 
authorized by a foreign government to place chil-
dren for adoption, in any case in which— 
‘‘(i) the adopted child is entitled to 
automatic citizenship under section 320 of 
the Immigration and Nationality Act (8 
U.S.C. 1431); or 
‘‘(ii) a certificate of citizenship has 
been issued for such child under section 322 
of that Act (8 U.S.C. 1433).’’. 
SEC. 653. ACCEPTANCE OF FREQUENT TRAVELER MILES, 
CREDITS, AND TICKETS TO FACILITATE THE 
AIR OR SURFACE TRAVEL OF CERTAIN MEM-
BERS OF THE ARMED FORCES AND THEIR 
FAMILIES. 
Section 2608 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsections (g) through (k) 
as subsections (h) through (l), respectively; and 
(2) by inserting after subsection (f) the following 
new subsection: 
‘‘(g) OPERATION HERO MILES.—(1) The Secretary of 
Defense may use the authority of subsection (a) to accept 
the donation of frequent traveler miles, credits, and tickets 
for air or surface transportation issued by any air carrier
197 
HR 4200 EAS/PP 
or surface carrier that serves the public and that consents 
to such donation, and under such terms and conditions as 
the air or surface carrier may specify. The Secretary shall 
designate a single office in the Department of Defense to 
carry out this subsection, including the establishment of 
such rules and procedures as may be necessary to facilitate 
the acceptance of such frequent traveler miles, credits, and 
tickets. 
‘‘(2) Frequent traveler miles, credits, and tickets ac-
cepted under this subsection shall be used only in accord-
ance with the rules established by the air carrier or surface 
carrier that is the source of the miles, credits, or tickets and 
shall be used only for the following purposes: 
‘‘(A) To facilitate the travel of a member of the 
armed forces who— 
‘‘(i) is deployed on active duty outside the 
United States away from the permanent duty 
station of the member in support of a contin-
gency operation; and 
‘‘(ii) is granted, during such deployment, 
rest and recuperative leave, emergency leave, 
convalescent leave, or another form of leave au-
thorized for the member. 
‘‘(B) In the case of a member of the armed forces 
recuperating from an injury or illness incurred or ag-
198 
HR 4200 EAS/PP 
gravated in the line of duty during such deployment, 
to facilitate the travel of family members of the mem-
ber to be reunited with the member. 
‘‘(3) For the use of miles, credits, or tickets under 
paragraph (2)(B) by family members of a member of the 
armed forces, the Secretary may, as the Secretary deter-
mines appropriate, limit— 
‘‘(A) eligibility to family members who, by rea-
son of affinity, degree of consanguinity, or otherwise, 
are sufficiently close in relationship to the member of 
the armed forces to justify the travel assistance; 
‘‘(B) the number of family members who may 
travel; and 
‘‘(C) the number of trips that family members 
may take. 
‘‘(4) Notwithstanding paragraph (2), the Secretary of 
Defense may, in an exceptional case, authorize a person not 
described in subparagraph (B) of that paragraph to use fre-
quent traveler miles, credits, or a ticket accepted under this 
subsection to visit a member of the armed forces described 
in such subparagraph if that person has a notably close 
relationship with the member. The frequent traveler miles, 
credits, or ticket may be used by such person only in accord-
ance with such conditions and restrictions as the Secretary 
determines appropriate and the rules established by the air
199 
HR 4200 EAS/PP 
carrier or surface carrier that is the source of the miles, 
credits, or ticket. 
‘‘(5) The Secretary of Defense shall encourage air car-
riers and surface carriers to participate in, and to facilitate 
through minimization of restrictions and otherwise, the do-
nation, acceptance, and use of frequent traveler miles, cred-
its, and tickets under this section. 
‘‘(6) The Secretary of Defense may enter into an agree-
ment with a nonprofit organization to use the services of 
the organization— 
‘‘(A) to promote the donation of frequent traveler 
miles, credits, and tickets under paragraph (1), except 
that amounts appropriated to the Department of De-
fense may not be expended for this purpose; and 
‘‘(B) to assist in administering the collection, 
distribution, and use of donated frequent traveler 
miles, credits, and tickets. 
‘‘(7) Members of the armed forces, family members, 
and other persons who receive air or surface transportation 
using frequent traveler miles, credits, or tickets donated 
under this subsection are deemed to recognize no income 
from such use. Donors of frequent traveler miles, credits, 
or tickets under this subsection are deemed to obtain no tax 
benefit from such donation.
200 
HR 4200 EAS/PP 
‘‘(8) In this subsection, the term ‘family member’ has 
the meaning given that term in section 411h(b)(1) of title 
37.’’. 
SEC. 654. CHILD CARE FOR CHILDREN OF MEMBERS OF 
ARMED FORCES ON ACTIVE DUTY FOR OPER-
ATION ENDURING FREEDOM OR OPERATION 
IRAQI FREEDOM. 
(a) CHILD CARE FOR CHILDREN WITHOUT ACCESS TO 
MILITARY CHILD CARE.—(1) In any case where the chil-
dren of a covered member of the Armed Forces are geo-
graphically dispersed and do not have practical access to 
a military child development center, the Secretary of De-
fense may, to the extent funds are available for such pur-
pose, provide such funds as are necessary permit the mem-
ber’s family to secure access for such children to State li-
censed child care and development programs and activities 
in the private sector that are similar in scope and quality 
to the child care and development programs and activities 
the Secretary would otherwise provide access to under sub-
chapter II of chapter 88 of title 10, United States Code, 
and other applicable provisions of law. 
(2) Funds may be provided under paragraph (1) in 
accordance with the provisions of section 1798 of title 10, 
United States Code, or by such other mechanism as the Sec-
retary considers appropriate.
201 
HR 4200 EAS/PP 
(3) The Secretary shall prescribe in regulations prior-
ities for the allocation of funds for the provision of access 
to child care under paragraph (1) in circumstances where 
funds are inadequate to provide all children described in 
that paragraph with access to child care as described in 
that paragraph. 
(b) PRESERVATION OF SERVICES AND PROGRAMS.— 
The Secretary shall provide for the attendance and partici-
pation of children in military child development centers 
and child care and development programs and activities 
under subsection (a) in a manner that preserves the scope 
and quality of child care and development programs and 
activities otherwise provided by the Secretary. 
(c) FUNDING.—Amounts otherwise available to the De-
partment of Defense and the military departments under 
this Act may be available for purposes of providing access 
to child care under subsection (a). 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘covered members of the Armed 
Forces’’ means members of the Armed Forces on active 
duty, including members of the Reserves who are 
called or ordered to active duty under a provision of 
law referred to in section 101(a)(13)(B) of title 10, 
United States Code, for Operation Enduring Freedom 
or Operation Iraqi Freedom.
202 
HR 4200 EAS/PP 
(2) The term ‘‘military child development cen-
ter’’ has the meaning given such term in section 
1800(1) of title 10, United States Code. 
SEC. 655. RELIEF FOR MOBILIZED MILITARY RESERVISTS 
FROM 
CERTAIN 
FEDERAL 
AGRICULTURAL 
LOAN OBLIGATIONS. 
The Consolidated Farm and Rural Development Act 
is amended by inserting after section 331F (7 U.S.C. 1981f) 
the following: 
‘‘SEC. 332. RELIEF FOR MOBILIZED MILITARY RESERVISTS 
FROM CERTAIN AGRICULTURAL LOAN OBLI-
GATIONS. 
‘‘(a) DEFINITION OF MOBILIZED MILITARY RESERV-
IST.—In this section, the term ‘mobilized military reservist’ 
means an individual who— 
‘‘(1) is on active duty under section 688, 
12301(a), 12301(g), 12302, 12304, 12306, or 12406, 
or chapter 15 of title 10, United States Code, or any 
other provision of law during a war or during a na-
tional emergency declared by the President or Con-
gress, regardless of the location at which the active 
duty service is performed; or 
‘‘(2) in the case of a member of the National 
Guard, is on full-time National Guard duty (as de-
fined in section 101(d)(5) of title 10, United States
203 
HR 4200 EAS/PP 
Code) under a call to active service authorized by the 
President or the Secretary of Defense for a period of 
more than 30 consecutive days under section 502(f) of 
title 32, United States Code, for purposes of respond-
ing to a national emergency declared by the President 
and supported by Federal funds. 
‘‘(b) FORGIVENESS
OF INTEREST PAYMENTS DUE 
WHILE BORROWER IS A MOBILIZED MILITARY RESERV-
IST.—Any requirement that a borrower of a direct loan 
made under this title make any interest payment on the 
loan that would otherwise be required to be made while the 
borrower is a mobilized military reservist is rescinded. 
‘‘(c) DEFERRAL OF PRINCIPAL PAYMENTS DUE WHILE 
OR AFTER BORROWER IS A MOBILIZED MILITARY RESERV-
IST.—The due date of any payment of principal on a direct 
loan made to a borrower under this title that would other-
wise be required to be made while or after the borrower is 
a mobilized military reservist is deferred for a period equal 
in length to the period for which the borrower is a mobilized 
military reservist. 
‘‘(d) NONACCRUAL OF INTEREST.—Interest on a direct 
loan made to a borrower described in this section shall not 
accrue during the period the borrower is a mobilized mili-
tary reservist.
204 
HR 4200 EAS/PP 
‘‘(e) BORROWER NOT CONSIDERED TO BE DELIN-
QUENT
OR RECEIVING DEBT FORGIVENESS.—Notwith-
standing section 373 or any other provision of this title, 
a borrower who receives assistance under this section shall 
not, as a result of the assistance, be considered to be delin-
quent or receiving debt forgiveness for purposes of receiving 
a direct or guaranteed loan under this title.’’. 
TITLE VII—HEALTH CARE 
Subtitle A—Enhanced Benefits for 
Reserves 
SEC. 701. DEMONSTRATION PROJECT ON HEALTH BENE-
FITS FOR RESERVES. 
(a) DEMONSTRATION PROJECT REQUIRED.—The Sec-
retary of Defense shall carry out a demonstration project 
under section 1092 of title 10, United States Code, to assess 
the need for, and feasibility of, providing benefits under the 
TRICARE program to members of the Ready Reserve of the 
Armed Forces who are (1) eligible unemployment com-
pensation recipients, (2) in a period of continuous unem-
ployment from the end of their last month as eligible unem-
ployment compensation recipients, or (3) ineligible for cov-
erage by employer-sponsored health benefits plans for em-
ployees. 
(b) DEFINITION.—In this section, the term ‘‘eligible 
unemployment compensation recipient’’ has the meaning
205 
HR 4200 EAS/PP 
given such term in section 1076b(j) of title 10, United 
States Code. 
SEC. 702. PERMANENT EARLIER ELIGIBILITY DATE FOR 
TRICARE BENEFITS FOR MEMBERS OF RE-
SERVE COMPONENTS. 
Section 1074(d) of title 10, United States Code, is 
amended by striking paragraph (3). 
SEC. 703. WAIVER OF CERTAIN DEDUCTIBLES FOR MEM-
BERS ON ACTIVE DUTY FOR A PERIOD OF 
MORE THAN 30 DAYS. 
Section 1095d(a) of title 10, United States Code, is 
amended by striking ‘‘a period of less than one year’’ both 
places that it appears and inserting ‘‘a period of more than 
30 days’’. 
SEC. 704. PROTECTION OF DEPENDENTS FROM BALANCE 
BILLING. 
Section 1079(h)(4) of title 10, United States Code, is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) In the case of a member of the reserve components 
serving on active duty for a period of more than 30 days 
in support of a contingency operation under a provision 
of law referred to in section 101(a)(13)(B) of this title, the 
Secretary may pay the amount applicable under subpara-
206 
HR 4200 EAS/PP 
graph (B) to a dependent of such member who is referred 
to in subparagraph (A).’’. 
SEC. 705. PERMANENT EXTENSION OF TRANSITIONAL 
HEALTH CARE BENEFITS AND ADDITION OF 
REQUIREMENT FOR PRESEPARATION PHYS-
ICAL EXAMINATION. 
(a) PERMANENT REQUIREMENT.—(1) Paragraph (3) 
of section 1145(a) of title 10, United States Code, is amend-
ed to read as follows: 
‘‘(3) Transitional health care for a member under sub-
section (a) shall be available for 180 days beginning on the 
date on which the member is separated from active duty.’’. 
(2) The following provisions of law are repealed: 
(A) Section 704 of the National Defense Author-
ization Act for Fiscal Year 2004 (Public Law 108– 
136; 117 Stat. 1527; 10 U.S.C. 1145 note). 
(B) Section 1117 of the Emergency Supple-
mental Appropriations Act for Defense and for the 
Reconstruction of Iraq and Afghanistan, 2004 (Public 
Law 108–106; 117 Stat. 1218; 10 U.S.C. 1145 note). 
(b) REQUIREMENT
FOR PHYSICAL EXAMINATION.— 
Such section 1145(a), as amended by subsection (a), is fur-
ther amended by adding at the end the following new para-
graph:
207 
HR 4200 EAS/PP 
‘‘(4) The Secretary concerned shall require each mem-
ber referred to in paragraph (1) to undergo a comprehensive 
physical examination immediately before the member is 
separated from active duty as described in paragraph (2).’’. 
SEC. 706. EXPANDED ELIGIBILITY OF READY RESERVE MEM-
BERS UNDER TRICARE PROGRAM. 
(a) UNCONDITIONAL ELIGIBILITY.—Subsection (a) of 
section 1076b of title 10, United States Code, is amended 
by striking ‘‘is eligible, subject to subsection (h), to enroll 
in TRICARE’’ and all that follows through ‘‘an employer- 
sponsored health benefits plan’’ and inserting ‘‘, except for 
a member who is enrolled or is eligible to enroll in a health 
benefits plan under chapter 89 of title 5, is eligible to enroll 
in TRICARE, subject to subsection (h)’’. 
(b) PERMANENT AUTHORITY.—Subsection (l) of such 
section is repealed. 
(c) CONFORMING
REPEAL
OF
OBSOLETE
PROVI-
SIONS.—Such section is further amended— 
(1) by striking subsections (i) and (j); and 
(2) by redesignating subsection (k) as subsection 
(i).
208 
HR 4200 EAS/PP 
SEC. 707. CONTINUATION OF NON-TRICARE HEALTH BENE-
FITS PLAN COVERAGE FOR CERTAIN RE-
SERVES CALLED OR ORDERED TO ACTIVE 
DUTY AND THEIR DEPENDENTS. 
(a) REQUIRED CONTINUATION.—(1) Chapter 55 of 
title 10, United States Code, is amended by inserting after 
section 1078a the following new section: 
‘‘§ 1078b. Continuation of non-TRICARE health bene-
fits plan coverage for dependents of cer-
tain Reserves called or ordered to active 
duty 
‘‘(a) PAYMENT OF PREMIUMS.—The Secretary con-
cerned shall pay the applicable premium to continue in 
force any qualified health benefits plan coverage for the 
members of the family of an eligible reserve component 
member for the benefits coverage continuation period if 
timely elected by the member in accordance with regulations 
prescribed under subsection (j). 
‘‘(b) ELIGIBLE MEMBER; FAMILY MEMBERS.—(1) A 
member of a reserve component is eligible for payment of 
the applicable premium for continuation of qualified health 
benefits plan coverage under subsection (a) while serving 
on active duty pursuant to a call or order issued under 
a provision of law referred to in section 101(a)(13)(B) of 
this title during a war or national emergency declared by 
the President or Congress.
209 
HR 4200 EAS/PP 
‘‘(2) For the purposes of this section, the members of 
the family of an eligible reserve component member include 
only the member’s dependents described in subparagraphs 
(A), (D), and (I) of section 1072(2) of this title. 
‘‘(c) QUALIFIED
HEALTH
BENEFITS
PLAN
COV-
ERAGE.—For the purposes of this section, health benefits 
plan coverage for the members of the family of a reserve 
component member called or ordered to active duty is quali-
fied health benefits plan coverage if— 
‘‘(1) the coverage was in force on the date on 
which the Secretary notified the reserve component 
member that issuance of the call or order was pending 
or, if no such notification was provided, the date of 
the call or order; 
‘‘(2) on such date, the coverage applied to the re-
serve component member and members of the family 
of the reserve component member; and 
‘‘(3) the coverage has not lapsed. 
‘‘(d) APPLICABLE PREMIUM.—The applicable pre-
mium payable under this section for continuation of health 
benefits plan coverage for the family members of a reserve 
component member is the amount of the premium payable 
by the member for the coverage of the family members. 
‘‘(e) MAXIMUM AMOUNT.—The total amount that the 
Department of Defense may pay for the applicable premium
210 
HR 4200 EAS/PP 
of a health benefits plan for the family members of a reserve 
component member under this section in a fiscal year may 
not exceed the amount determined by multiplying— 
‘‘(1) the sum of one plus the number of the fam-
ily members covered by the health benefits plan, by 
‘‘(2) the per capita cost of providing TRICARE 
coverage and benefits for dependents under this chap-
ter for such fiscal year, as determined by the Sec-
retary of Defense. 
‘‘(f) BENEFITS COVERAGE CONTINUATION PERIOD.— 
The benefits coverage continuation period under this section 
for qualified health benefits plan coverage for the family 
members of an eligible reserve component member called or 
ordered to active duty is the period that— 
‘‘(1) begins on the date of the call or order; and 
‘‘(2) ends on the earlier of— 
‘‘(A) the date on which the reserve compo-
nent member’s eligibility for transitional health 
care under section 1145(a) of this title termi-
nates under paragraph (3) of such section; or 
‘‘(B) the date on which the reserve compo-
nent member elects to terminate the continued 
qualified health benefits plan coverage of the 
member’s family members.
211 
HR 4200 EAS/PP 
‘‘(g) EXTENSION OF PERIOD OF COBRA COVERAGE.— 
Notwithstanding any other provision of law— 
‘‘(1) any period of coverage under a COBRA 
continuation 
provision 
(as 
defined 
in 
section 
9832(d)(1) of the Internal Revenue Code of 1986) for 
an eligible reserve component member under this sec-
tion shall be deemed to be equal to the benefits cov-
erage continuation period for such member under this 
section; and 
‘‘(2) with respect to the election of any period of 
coverage under a COBRA continuation provision (as 
so defined), rules similar to the rules under section 
4980B(f)(5)(C) of such Code shall apply. 
‘‘(h) NONDUPLICATION OF BENEFITS.—A member of 
the family of a reserve component member who is eligible 
for benefits under qualified health benefits plan coverage 
paid on behalf of the reserve component member by the Sec-
retary concerned under this section is not eligible for bene-
fits under the TRICARE program during a period of the 
coverage for which so paid. 
‘‘(i) REVOCABILITY OF ELECTION.—A reserve compo-
nent member who makes an election under subsection (a) 
may revoke the election. Upon such a revocation, the mem-
ber’s family members shall become eligible for benefits under 
the TRICARE program as provided for under this chapter.
212 
HR 4200 EAS/PP 
‘‘(j) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations for carrying out this section. The regu-
lations shall include such requirements for making an elec-
tion of payment of applicable premiums as the Secretary 
considers appropriate.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
1078a the following new item: 
‘‘1078b. Continuation of non-TRICARE health benefits plan coverage for depend-
ents of certain Reserves called or ordered to active duty.’’. 
(b) APPLICABILITY.—Section 1078b of title 10, United 
States Code (as added by subsection (a)), shall apply with 
respect to calls or orders of members of reserve components 
of the Armed Forces to active duty as described in sub-
section (b) of such section, that are issued by the Secretary 
of a military department before, on, or after the date of 
the enactment of this Act, but only with respect to qualified 
health benefits plan coverage (as described in subsection (c) 
of such section) that is in effect on or after the date of the 
enactment of this Act. 
Subtitle B—Other Matters 
SEC. 711. REPEAL OF REQUIREMENT FOR PAYMENT OF SUB-
SISTENCE CHARGES WHILE HOSPITALIZED. 
(a) REPEAL.—Section 1075 of title 10, United States 
Code, is repealed.
213 
HR 4200 EAS/PP 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of chapter 55 of such title is amended by 
striking the item relating to section 1075. 
SEC. 712. OPPORTUNITY FOR YOUNG CHILD DEPENDENT OF 
DECEASED MEMBER TO BECOME ELIGIBLE 
FOR ENROLLMENT IN A TRICARE DENTAL 
PLAN. 
Section 1076a(k)(2) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘under subsection (a) or’’ and in-
serting ‘‘under subsection (a),’’; and 
(2) by inserting after ‘‘under subsection (f),’’ the 
following: ‘‘or is not enrolled because the dependent is 
a child under the minimum age for enrollment,’’. 
SEC. 713. PEDIATRIC DENTAL PRACTICE NECESSARY FOR 
PROFESSIONAL ACCREDITATION. 
Section 1077(c) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘A dependent’’ and inserting ‘‘(1) 
Except as specified in paragraph (2), a dependent’’; 
and 
(2) by adding at the end the following new para-
graph: 
‘‘(2)(A) Dependents 12 years of age or younger who 
are covered by a dental plan under section 1076a of this
214 
HR 4200 EAS/PP 
title may be treated by postgraduate dental students in a 
dental treatment facility of the uniformed services accred-
ited by the American Dental Association under a graduate 
dental education program accredited by the American Den-
tal Association if— 
‘‘(i) treatment of pediatric dental patients is 
necessary in order to satisfy an accreditation stand-
ard of the American Dental Association that is appli-
cable to such facility or program, or training in pedi-
atric dental care is necessary for the students to be 
professionally qualified to provide dental care for de-
pendent children accompanying members of the uni-
formed services outside the United States; and 
‘‘(ii) the caseload of pediatric patients at such 
facility is insufficient to support satisfaction of the 
accreditation or professional requirements in pedi-
atric dental care that apply to such facility, program, 
or students. 
‘‘(B) The total number of dependents treated in all fa-
cilities of the uniformed services under subparagraph (A) 
in a fiscal year may not exceed 2,000.’’. 
SEC. 714. SERVICES OF MARRIAGE AND FAMILY THERA-
PISTS. 
(a) AUTHORITY TO ENTER INTO PERSONAL SERVICES 
CONTRACTS.—Section 704(c)(2) of the National Defense
215 
HR 4200 EAS/PP 
Authorization Act for Fiscal Year 1995 (Public Law 103– 
337; 108 Stat. 2799; 10 U.S.C. 1091 note) is amended by 
inserting ‘‘marriage and family therapists certified as such 
by a certification recognized by the Secretary of Defense,’’ 
after ‘‘psychologists,’’. 
(b) APPLICABILITY OF LICENSURE REQUIREMENT FOR 
HEALTH-CARE
PROFESSIONALS.—Section 1094(e)(2) of 
title 10, United States Code, is amended by inserting ‘‘mar-
riage and family therapist certified as such by a certifi-
cation recognized by the Secretary of Defense,’’ after ‘‘psy-
chologist,’’. 
SEC. 715. CHIROPRACTIC HEALTH CARE BENEFITS ADVI-
SORY COMMITTEE. 
(a) ESTABLISHMENT.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall establish an oversight advisory committee to pro-
vide the Secretary with advice and recommendations re-
garding the continued development and implementation of 
an effective program of chiropractic health care benefits for 
members of the uniformed services on active duty. 
(b) MEMBERSHIP.—The advisory committee shall be 
composed of members selected from among persons who, by 
reason of education, training, and experience, are experts 
in chiropractic health care, as follows:
216 
HR 4200 EAS/PP 
(1) Members appointed by the Secretary of De-
fense in such number as the Secretary determines ap-
propriate for carrying out the duties of the advisory 
committee effectively. 
(2) A representative of each of the Armed Forces, 
as designated by the Secretary of the military depart-
ment concerned. 
(c) CHAIRMAN.—The Secretary of Defense shall des-
ignate one member of the advisory committee to serve as 
the Chairman of the advisory committee. 
(d) MEETINGS.—The advisory committee shall meet at 
the call of the Chairman, but not fewer than three times 
each fiscal year, beginning in fiscal year 2005. 
(e) DUTIES.—The advisory committee shall have the 
following duties: 
(1) Review and evaluate the program of chiro-
practic health care benefits provided to members of 
the uniformed services on active duty under chapter 
55 of title 10, United States Code. 
(2) Provide the Secretary of Defense with advice 
and recommendations as described in subsection (a). 
(3) Upon the Secretary’s determination that the 
program of chiropractic health care benefits referred 
to in paragraph (1) has been fully implemented, pre-
pare and submit to the Secretary a report containing
217 
HR 4200 EAS/PP 
the advisory committee’s evaluation of such program 
as implemented. 
(f) APPLICABILITY
OF TEMPORARY ORGANIZATIONS 
LAW.—(1) Section 3161 of title 5, United States Code, shall 
apply to the advisory committee under this section. 
(2) The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply to the oversight advisory committee 
under this section. 
(g) TERMINATION.—The advisory committee shall ter-
minate 90 days after the date on which the committee sub-
mits the report to the Secretary of Defense under subsection 
(e)(3). 
SEC. 716. GROUNDS FOR PRESIDENTIAL WAIVER OF RE-
QUIREMENT FOR INFORMED CONSENT OR 
OPTION TO REFUSE REGARDING ADMINIS-
TRATION OF DRUGS NOT APPROVED FOR 
GENERAL USE. 
(a) INVESTIGATIONAL NEW DRUGS.—Section 1107(f) 
of title 10, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘obtaining 
consent—’’ and all that follows through ‘‘(C) is’’ and 
inserting ‘‘obtaining consent is’’; and 
(2) by striking paragraph (2) and inserting the 
following new paragraph:
218 
HR 4200 EAS/PP 
‘‘(2) The waiver authority provided in paragraph (1) 
shall not be construed to apply to any case other than a 
case in which prior consent for administration of a par-
ticular drug is required by reason of a determination by 
the Secretary of Health and Human Services that such drug 
is subject to the investigational new drug requirements of 
section 505(i) of the Federal Food, Drug, and Cosmetic 
Act.’’. 
(b) EMERGENCY USE DRUGS.—Section 1107a(a) of 
such title is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘PRESIDENT.—(1)’’; 
(2) by striking ‘‘is not feasible,’’ and all that fol-
lows through ‘‘members affected, or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) The waiver authority provided in subparagraph 
(A) shall not be construed to apply to any case other than 
a case in which an individual is required to be informed 
of an option to accept or refuse administration of a par-
ticular product by reason of a determination by the Sec-
retary of Health and Human Services that emergency use 
of such product is authorized under section 564 of the Fed-
eral Food, Drug, and Cosmetic Act.’’.
219 
HR 4200 EAS/PP 
SEC. 717. ELIGIBILITY OF CADETS AND MIDSHIPMEN FOR 
MEDICAL AND DENTAL CARE AND DISABILITY 
BENEFITS. 
(a) MEDICAL AND DENTAL CARE.—(1) Chapter 55 of 
title 10, United States Code, is amended by inserting after 
section 1074a the following new section: 
‘‘§ 1074b. Medical and dental care: cadets and mid-
shipmen 
‘‘(a) ELIGIBILITY.—Under joint regulations prescribed 
by the administering Secretaries, the following persons are, 
except as provided in subsection (c), entitled to the benefits 
described in subsection (b): 
‘‘(1) A cadet at the United States Military Acad-
emy, the United States Air Force Academy, or the 
Coast Guard Academy, and a midshipman at the 
United States Naval Academy, who incurs or aggra-
vates an injury, illness, or disease in the line of duty. 
‘‘(2) Each member of, and each designated appli-
cant for membership in, the Senior Reserve Officers’ 
Training Corps who incurs or aggravates an injury, 
illness, or disease in the line of duty while performing 
duties under section 2109 of this title. 
‘‘(b) BENEFITS.—A person eligible for benefits in sub-
section (a) for an injury, illness, or disease is entitled to— 
‘‘(1) the medical and dental care under this 
chapter that is appropriate for the treatment of the
220 
HR 4200 EAS/PP 
injury, illness, or disease until the injury, illness, dis-
ease, or any resulting disability cannot be materially 
improved by further hospitalization or treatment; and 
‘‘(2) meals during hospitalization. 
‘‘(c) EXCEPTION.—A person is not entitled to benefits 
under subsection (b) for an injury, illness, or disease, or 
the aggravation of an injury, illness, or disease that is a 
result of the gross negligence or the misconduct of that per-
son.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
1074a the following new item: 
‘‘1074b. Medical and dental care: cadets and midshipmen of the service acad-
emies.’’. 
(b) ELIGIBILITY
OF ACADEMY CADETS
AND MID-
SHIPMEN FOR DISABILITY RETIRED PAY.—(1)(A) Section 
1217 of title 10, United States Code, is amended to read 
as follows: 
‘‘§ 1217. Cadets, midshipmen, and aviation cadets: ap-
plicability of chapter 
‘‘(a) This chapter applies to cadets at the United 
States Military Academy, the United States Air Force 
Academy, and the United States Coast Guard Academy and 
midshipmen of the United States Naval Academy. 
‘‘(b) Monthly cadet pay and monthly midshipman pay 
under section 203(c) of title 37 shall be considered to be
221 
HR 4200 EAS/PP 
basic pay for purposes of this chapter and the computation 
of retired pay and severance and separation pay to which 
entitlement is established under this chapter.’’. 
(B) The item related to section 1217 in the table of 
sections at the beginning of chapter 61 of such title is 
amended to read as follows: 
‘‘1217. Cadets, midshipmen, and aviation cadets: applicability of chapter.’’. 
(2) The amendments made by paragraph (1) shall take 
effect on October 1, 2004. 
SEC. 718. CONTINUATION OF SUB-ACUTE CARE FOR TRANSI-
TION PERIOD. 
Section 1074j(b) of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(4) The Secretary of Defense may take such actions 
as are necessary to ensure that there is an effective transi-
tion in the furnishing of part-time or intermittent home 
health care benefits for covered beneficiaries who were re-
ceiving such benefits before the establishment of the program 
under this section. The actions taken under this paragraph 
may include the continuation of such benefits on an ex-
tended basis for such time as the Secretary determines ap-
propriate.’’.
222 
HR 4200 EAS/PP 
SEC. 719. TEMPORARY AUTHORITY FOR WAIVER OF COLLEC-
TION OF PAYMENTS DUE FOR CHAMPUS BEN-
EFITS RECEIVED BY DISABLED PERSONS UN-
AWARE OF LOSS OF CHAMPUS ELIGIBILITY. 
(a) AUTHORITY TO WAIVE DEBT.—(1) The Secretary 
of Defense, in consultation with the other administering 
Secretaries, may waive (in whole or in part) the collection 
of payments otherwise due from a person described in sub-
section (b) for health benefits received by such person under 
section 1086 of title 10, United States Code, after the termi-
nation of that person’s eligibility for such benefits. 
(2) If the Secretary of Defense waives collection of pay-
ments from a person under paragraph (1), the Secretary 
may also authorize a continuation of benefits for such per-
son under such section 1086 for a period ending not later 
than the end of the period specified in subsection (c) of this 
section. 
(b) ELIGIBLE PERSONS.—A person is eligible for relief 
under subsection (a)(1) if— 
(1) the person is described in paragraph (1) of 
subsection (d) of section 1086 of title 10, United 
States Code; 
(2) except for such paragraph, the person would 
have been eligible for the health benefits under such 
section; and 
(3) at the time of the receipt of such benefits—
223 
HR 4200 EAS/PP 
(A) the person satisfied the criteria specified 
in paragraph (2)(B) of such subsection (d); and 
(B) the person was unaware of the loss of 
eligibility to receive the health benefits. 
(c) PERIOD OF APPLICABILITY.—The authority pro-
vided under this section to waive collection of payments and 
to continue benefits shall apply, under terms and conditions 
prescribed by the Secretary of Defense, to health benefits 
provided under section 1086 of title 10, United States Code, 
during the period beginning on July 1, 1999, and ending 
at the end of December 31, 2004. 
(d) CONSULTATION WITH OTHER ADMINISTERING 
SECRETARIES.—(1) The Secretary of Defense shall consult 
with the other administering Secretaries in exercising the 
authority provided in this section. 
(2) In this subsection, the term ‘‘administering Secre-
taries’’ has the meaning given such term in section 1072(3) 
of title 10, United States Code. 
SEC. 720. VACCINE HEALTHCARE CENTERS NETWORK. 
Section 1110 of title 10, United States Code, is amend-
ed by adding at the end the following: 
‘‘(c) VACCINE HEALTHCARE CENTERS NETWORK.—(1) 
The Secretary shall carry out this section through the Vac-
cine Healthcare Centers Network as established by the Sec-
224 
HR 4200 EAS/PP 
retary in collaboration with the Director of the Centers for 
Disease Control and Prevention. 
‘‘(2) In addition to conducting the activities described 
in subsection (b), it shall be the purpose of the Vaccine 
Healthcare Centers Network to improve— 
‘‘(A) the safety and quality of vaccine adminis-
tration for the protection of members of the armed 
forces; 
‘‘(B) the submission of data to the Vaccine-re-
lated Adverse Events Reporting System to include 
comprehensive content and follow-up data; 
‘‘(C) the access to clinical management services 
to members of the armed forces who experience vac-
cine adverse events; 
‘‘(D) the knowledge and understanding by mem-
bers of the armed forces and vaccine-providers of im-
munization benefits and risks. 
‘‘(E) networking between the Department of De-
fense, the Department of Health and Human Services, 
the Department of Veterans Affairs, and private advo-
cacy and coalition groups with regard to immuniza-
tion benefits and risks; and 
‘‘(F) clinical research on the safety and efficacy 
of vaccines.
225 
HR 4200 EAS/PP 
‘‘(3) To achieve the purposes described in paragraph 
(2), the Vaccine Healthcare Centers Network, in collabora-
tion with the medical departments of the armed forces, shall 
carry out the following: 
‘‘(A)(i) Establish a network of centers of excel-
lence in clinical immunization safety assessment that 
provides for outreach, education, and confidential 
consultative and direct patient care services for vac-
cine related adverse events prevention, diagnosis, 
treatment and follow-up with respect to members of 
the armed services. 
‘‘(ii) Such centers shall provide expert second 
opinions for such members regarding medical exemp-
tions under this section and for additional care that 
is not available at the local medical facilities of such 
members. 
‘‘(B) Develop standardized educational outreach 
activities to support the initial and ongoing provision 
of training and education for providers and nursing 
personnel who are engaged in delivering immuniza-
tion services to the members of the armed forces. 
‘‘(C) Develop a program for quality improve-
ment in the submission and understanding of data 
that is provided to the Vaccine-related Adverse Events
226 
HR 4200 EAS/PP 
Reporting System, particularly among providers and 
members of the armed forces. 
‘‘(D) Develop and standardize a quality im-
provement program for the Department of Defense re-
lating to immunization services. 
‘‘(E) Develop an effective network system, with 
appropriate internal and external collaborative ef-
forts, to facilitate integration, educational outreach, 
research, and clinical management of adverse vaccine 
events. 
‘‘(F) Provide education and advocacy for vaccine 
recipients to include access to vaccine safety pro-
grams, medical exemptions, and quality treatment. 
‘‘(G) Support clinical studies with respect to the 
safety and efficacy of vaccines, including outcomes 
studies on the implementation of recommendations 
contained in the clinical guidelines for vaccine-related 
adverse events. 
‘‘(H) Develop implementation recommendations 
for vaccine exemptions or alternative vaccine strate-
gies for members of the armed forces who have had 
prior, or who are susceptible to, serious adverse 
events, including those with genetic risk factors, and 
the discovery of treatments for adverse events that are 
most effective.
227 
HR 4200 EAS/PP 
‘‘(4) It is the sense of the Senate— 
‘‘(A) to recognize the important work being done 
by the Vaccine Healthcare Center Network for the 
members of the armed forces; and 
‘‘(B) that each of the military departments (as 
defined in section 102 of title 5, United States Code) 
is strongly encouraged to fund the Vaccine Healthcare 
Center Network.’’. 
SEC. 721. USE OF DEPARTMENT OF DEFENSE FUNDS FOR 
ABORTIONS IN CASES OF RAPE AND INCEST. 
Section 1093(a) of title 10, United States Code, is 
amended by inserting before the period at the end the fol-
lowing: ‘‘ or in a case in which the pregnancy is the result 
of an act of rape or incest’’. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. RESPONSIBILITIES OF ACQUISITION EXECUTIVES 
AND CHIEF INFORMATION OFFICERS UNDER 
THE CLINGER-COHEN ACT. 
(a) ACQUISITIONS
OF INFORMATION TECHNOLOGY 
EQUIPMENT INTEGRAL TO A WEAPON OR WEAPON SYS-
228 
HR 4200 EAS/PP 
TEM.—(1) Chapter 131 of title 10, United States Code, is 
amended by inserting after section 2223 the following: 
‘‘§ 2223a. Acquisition 
of 
information 
technology 
equipment integral to a weapon or a 
weapon system 
‘‘(a) RESPONSIBILITIES
OF
ACQUISITION
EXECU-
TIVES.—The acquisition executive of each military depart-
ment shall be responsible for ensuring that, with regard to 
a weapon or weapon system acquired or to be acquired by 
or for that military department— 
‘‘(1) the acquisition of information technology 
equipment that is integral to the weapon or a weapon 
system is conducted in a manner that is consistent 
with the capital planning, investment control, and 
performance and results-based management processes 
and requirements provided under sections 11302, 
11303, 11312, and 11313 of title 40, to the extent that 
such processes requirements are applicable to the ac-
quisition of such equipment; 
‘‘(2) issues of spectrum availability, interoper-
ability, and information security are appropriately 
addressed in the development of the weapon or weap-
on system; and 
‘‘(3) in the case of information technology equip-
ment that is to be incorporated into a weapon or a
229 
HR 4200 EAS/PP 
weapon system under a major defense acquisition 
program, the information technology equipment is in-
corporated in a manner that is consistent with— 
‘‘(A) the planned approach to applying cer-
tain provisions of law to major defense acquisi-
tion programs following the evolutionary acqui-
sition process that the Secretary of Defense re-
ported to Congress under section 802 of the Bob 
Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107–314; 116 
Stat. 2602); 
‘‘(B) the acquisition policies that apply to 
spiral development programs under section 803 
of such Act (116 Stat. 2603; 10 U.S.C. 2430 
note); and 
‘‘(C) the software acquisition processes of 
the military department or Defense Agency con-
cerned under section 804 of such Act (116 Stat. 
2604; 10 U.S.C. 2430 note). 
‘‘(b) BOARD OF SENIOR ACQUISITION OFFICIALS.—(1) 
The Secretary of Defense shall establish a board of senior 
acquisition officials to develop policy and provide oversight 
on the implementation of the requirements of this section 
and chapter 113 of title 40 in procurements of information
230 
HR 4200 EAS/PP 
technology equipment that is integral to a weapon or a 
weapon system. 
‘‘(2) The board shall be composed of the following offi-
cials: 
‘‘(A) The Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics, who shall be the 
Chairman. 
‘‘(B) The acquisition executives of the military 
departments. 
‘‘(C) The Chief Information Officer of the De-
partment of Defense. 
‘‘(3) Any question regarding whether information tech-
nology equipment is integral to a weapon or weapon system 
shall be resolved by the board in accordance with policies 
established by the board. 
‘‘(c) INAPPLICABILITY
OF OTHER LAWS.—The fol-
lowing provisions of law do not apply to information tech-
nology equipment that is integral to a weapon or a weapon 
system: 
‘‘(1) Section 11315 of title 40. 
‘‘(2) The policies and procedures established 
under section 11316 of title 40. 
‘‘(3) Subsections (d) and (e) of section 811 of the 
Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public
231 
HR 4200 EAS/PP 
Law 106–398; 114 Stat. 1654A–211), and the re-
quirements and prohibitions that are imposed by De-
partment of Defense Directive 5000.1 pursuant to 
subsections (b) and (c) of such section. 
‘‘(4) Section 351 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Public 
Law 107–314; 116 Stat. 2516; 10 U.S.C. 221 note). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘acquisition executive’, with re-
spect to a military department, means the official 
who is designated as the senior procurement executive 
of the military department under section 16(3) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)). 
‘‘(2) The term ‘information technology’ has the 
meaning given such term in section 11101 of title 40. 
‘‘(3) The term ‘major defense acquisition pro-
gram’ has the meaning given such term in section 
2430 of this title.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2223 the following new item: 
‘‘2223a. Acquisition of information technology equipment integral to a weapon or 
a weapon system.’’. 
(b) CONFORMING AMENDMENTS.—Section 2223 of such 
title is amended—
232 
HR 4200 EAS/PP 
(1) by redesignating subsection (c) as subsection 
(d); and 
(2) by inserting after subsection (b) the following 
new subsection (c): 
‘‘(c) EQUIPMENT INTEGRAL TO A WEAPON OR WEAPON 
SYSTEM.—(1) In the case of information technology equip-
ment that is integral to a weapon or weapon system ac-
quired or to be acquired by or for a military department, 
the responsibilities under this section shall be performed by 
the acquisition executive of that military department pur-
suant to the guidance and oversight of the board of senior 
acquisition officials established under section 2223a(b) of 
this title. 
‘‘(2) In this subsection, the term ‘acquisition executive’ 
has the meaning given said term in section 2223a(d) of this 
title.’’. 
SEC. 802. SOFTWARE-RELATED PROGRAM COSTS UNDER 
MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) CONTENT OF QUARTERLY UNIT COST REPORT.— 
Subsection (b) of section 2433 of title 10, United States 
Code, is amended by adding at the end the following new 
paragraph: 
‘‘(5) Any significant changes in the total pro-
gram cost for development and procurement of the 
software component of the program, schedule mile-
233 
HR 4200 EAS/PP 
stones for the software component of the program, or 
expected performance for the software component of 
the program that are known, expected, or anticipated 
by the program manager.’’. 
(b) CONTENT OF SELECTED ACQUISITION REPORT.— 
(1) Subsection (g)(1) of such section is amended by adding 
at the end the following new subparagraph: 
‘‘(Q) In any case in which one or more problems 
with the software component of the program signifi-
cantly contributed to the increase in program unit 
costs, the action taken and proposed to be taken to 
solve such problems.’’. 
(2) Section 2432(e) of title 10, United States Code, is 
amended— 
(A) by redesignating paragraphs (7), (8), and 
(9), as paragraphs (8), (9) and (10), respectively; and 
(B) by inserting after paragraph (6) the fol-
lowing new paragraph (7): 
‘‘(7) The reasons for any significant changes 
(from the previous Selected Acquisition Report) in the 
total program cost for development and procurement 
of the software component of the program, schedule 
milestones for the software component of the program, 
or expected performance for the software component of
234 
HR 4200 EAS/PP 
the program that are known, expected, or anticipated 
by the program manager.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2004, and shall apply 
with respect to reports due to be submitted to Congress on 
or after such date. 
SEC. 803. INTERNAL CONTROLS FOR DEPARTMENT OF DE-
FENSE PURCHASES THROUGH GSA CLIENT 
SUPPORT CENTERS. 
(a) LIMITATION.—No official of the Department of De-
fense may place an order for, make a purchase of, or other-
wise procure property or services in an amount in excess 
of $100,000 through any particular GSA Client Support 
Center until the Inspector General of the Department of De-
fense has, after the date of the enactment of this Act— 
(1) reviewed the policies, procedures, and inter-
nal controls of such Client Support Center in con-
sultation with the Inspector General of the General 
Services Administration; and 
(2) certified in writing to the Secretary of De-
fense and the Administrator of General Services that 
such policies, procedures, and internal controls are 
adequate to ensure the compliance of such Client Sup-
port Center with the requirements of law and regula-
235 
HR 4200 EAS/PP 
tions that are applicable to orders, purchases, and 
other procurements of property and services. 
(b) GSA CLIENT SUPPORT CENTER DEFINED.—In 
this section, the term ‘‘GSA Client Support Center’’ means 
a Client Support Center of the Federal Technology Service 
of the General Services Administration. 
(c) EFFECTIVE DATE AND APPLICABILITY.—This sec-
tion shall take effect on the date of the enactment of this 
Act and shall apply with respect to orders, purchases, and 
other procurements that are initiated by the Department 
of Defense with a GSA Client Support Center on or after 
such date. 
SEC. 804. DEFENSE COMMERCIAL SATELLITE SERVICES 
PROCUREMENT PROCESS. 
(a) REQUIREMENT FOR DETERMINATION.—The Sec-
retary of Defense shall review alternative mechanisms for 
procuring commercial satellite services and provide guid-
ance to the Director of the Defense Information Systems 
Agency and the Secretaries of the military departments on 
how such procurements should be conducted. The alternative 
procurement mechanisms reviewed by the Secretary of De-
fense shall, at a minimum, include the following: 
(1) Procurement under indefinite delivery, in-
definite quantity contracts of the Federal Technology 
Service of the General Services Administration.
236 
HR 4200 EAS/PP 
(2) 
Procurement 
directly 
from 
commercial 
sources that are qualified as described in subsection 
(b), using full and open competition (as defined in 
section 4(6) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 403(6))). 
(3) Procurement by any other means that has 
been used by the Director of the Defense Information 
Systems Agency or the Secretary of a military de-
partment to enter into a contract for the procurement 
of commercial satellite services that is in force on the 
date of the enactment of this Act. 
(b) QUALIFIED SOURCES.—A source of commercial 
satellite services referred to in paragraph (2) of subsection 
(a) is a qualified source if the source is incorporated under 
the laws of a State of the United States and is either— 
(1) a source of commercial satellite services 
under a Federal Technology Service contract for the 
procurement of commercial satellite services described 
in paragraph (1) of such subsection that is in force 
on the date of the enactment of this Act; or 
(2) a source of commercial satellite services that 
meets qualification requirements (as defined in sec-
tion 2319 of title 10, United States Code, and estab-
lished in accordance with that section) to enter into
237 
HR 4200 EAS/PP 
a Federal Technology Service contract for the procure-
ment of commercial satellite services. 
(c) REPORT.—Not later than April 30, 2005, the Sec-
retary of Defense shall submit to Congress a report setting 
forth the conclusions resulting from the Secretary’s review 
under subsection (a). The report shall include— 
(1) the guidance provided under such subsection; 
and 
(2) a discussion of the rationale for that guid-
ance. 
SEC. 805. REVISION AND EXTENSION OF AUTHORITY FOR 
ADVISORY PANEL ON REVIEW OF GOVERN-
MENT PROCUREMENT LAWS AND REGULA-
TIONS. 
(a) RELATIONSHIP OF RECOMMENDATIONS TO SMALL 
BUSINESSES.—Section 1423 of the National Defense Au-
thorization Act for Fiscal Year 2004 (Public Law 106–136; 
117 Stat. 1669; 41 U.S.C. 405 note) is amended— 
(1) by redesignating subsection (d) as subsection 
(e); and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) ISSUES RELATING TO SMALL BUSINESSES.—In 
developing recommendations under subsection (c)(2), the 
panel shall—
238 
HR 4200 EAS/PP 
‘‘(1) consider the effects of its recommendations 
on small business concerns; and 
‘‘(2) include any recommended modifications of 
laws, regulations, and policies that the panel con-
siders necessary to enhance and ensure competition in 
contracting that affords small business concerns 
meaningful opportunity to participate in Federal 
Government contracts.’’. 
(b) REVISION AND EXTENSION OF REPORTING RE-
QUIREMENT.—Section 1423(d) of the National Defense Au-
thorization Act for Fiscal Year 2004 (Public Law 108–136; 
117 Stat. 1669; 41 U.S.C. 405 note) is amended— 
(1) by striking ‘‘one year after the establishment 
of the panel’’ and inserting ‘‘one year after the date 
of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 2005’’; 
(2) by striking ‘‘Services and’’ both places it ap-
pears and inserting ‘‘Services,’’; 
(3) by inserting ‘‘, and Small Business’’ after 
‘‘Government Reform’’; and 
(4) by inserting ‘‘, and Small Business and En-
trepreneurship’’ after ‘‘Governmental Affairs’’.
239 
HR 4200 EAS/PP 
Subtitle 
B—General 
Contracting 
Authorities, 
Procedures, 
and 
Limitations, and Other Matters 
SEC. 811. INCREASED THRESHOLDS FOR APPLICABILITY OF 
CERTAIN REQUIREMENTS. 
(a) SENIOR PROCUREMENT EXECUTIVE APPROVAL OF 
USE OF PROCEDURES OTHER THAN COMPETITIVE PROCE-
DURES.—Section 2304(f)(1)(B) of title 10, United States 
Code, is amended by striking ‘‘$50,000,000’’ both places it 
appears and inserting ‘‘$75,000,000’’. 
(b) INFORMATION ON SUBCONTRACTING AUTHORITY 
OF DEFENSE CONTRACTOR PERSONNEL.—Section 2416(d) 
of such title is amended by striking ‘‘$500,000’’ and insert-
ing ‘‘$1,000,000’’. 
SEC. 812. PERIOD FOR MULTIYEAR TASK AND DELIVERY 
ORDER CONTRACTS. 
(a) REVISED MAXIMUM PERIOD.—Section 2304a(f) of 
title 10, United States Code, is amended by striking ‘‘a total 
period of not more than five years.’’ and inserting ‘‘any 
period up to five years and may extend the contract period 
for one or more successive periods pursuant to an option 
provided in the contract or a modification of the contract. 
The total contract period as extended may not exceed eight 
years unless such head of an agency personally determines
240 
HR 4200 EAS/PP 
in writing that exceptional circumstances necessitate a 
longer contract period.’’. 
(b) ANNUAL REPORT.—Not later than 60 days after 
the end of each of fiscal years 2005 through 2009, the Sec-
retary of Defense shall submit to Congress a report setting 
forth each extension of a contract period to a total of more 
than eight years that was granted for task and delivery 
order contracts of the Department of Defense during such 
fiscal year under section 2304a(f) of title 10, United States 
Code. The report shall include, with respect to each such 
contract period extension— 
(1) a discussion of the exceptional circumstances 
on which the extension was based; and 
(2) the justification for the determination of ex-
ceptional circumstances. 
SEC. 813. SUBMISSION OF COST OR PRICING DATA ON NON-
COMMERCIAL MODIFICATIONS OF COMMER-
CIAL ITEMS. 
(a) INAPPLICABILITY OF COMMERCIAL ITEMS EXCEP-
TION TO NONCOMMERCIAL MODIFICATIONS OF COMMERCIAL 
ITEMS.—Subsection (b) of section 2306a of title 10, United 
States Code, is amended by adding at the end the following 
new paragraph: 
‘‘(3) NONCOMMERCIAL MODIFICATIONS OF COM-
MERCIAL
ITEMS.—(A) The exception in paragraph
241 
HR 4200 EAS/PP 
(1)(B) does not apply to cost or pricing data on non-
commercial modifications of a commercial item that 
are expected to cost, in the aggregate, more than 
$500,000. 
‘‘(B) In this paragraph, the term ‘noncommer-
cial modification’, with respect to a commercial item, 
means a modification of such item that is not a 
modification described in section 4(12)(C)(i) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 
403(12)(C)(i)). 
‘‘(C) Nothing in subparagraph (A) shall be con-
strued— 
‘‘(i) to limit the applicability of the excep-
tion in subparagraph (A) or (C) of paragraph 
(1) to cost or pricing data on a noncommercial 
modification of a commercial item; or 
‘‘(ii) to require the submission of cost or 
pricing data on any aspect of an acquisition of 
a commercial item other than the cost and pric-
ing of noncommercial modifications of such 
item.’’. 
(b) EFFECTIVE DATE
AND APPLICABILITY.—Para-
graph (3) of section 2306a of title 10, United States Code 
(as added by subsection (a)), shall take effect on January 
1, 2005, and shall apply with respect to offers submitted,
242 
HR 4200 EAS/PP 
and to modifications of contracts or subcontracts made, on 
or after that date. 
SEC. 814. DELEGATIONS OF AUTHORITY TO MAKE DETER-
MINATIONS RELATING TO PAYMENT OF DE-
FENSE CONTRACTORS FOR BUSINESS RE-
STRUCTURING COSTS. 
Section 2325(a)(2) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘paragraph (1) to an official’’ 
and all that follows and inserting ‘‘paragraph (1), 
with respect to a business combination, to an official 
of the Department of Defense—’’; and 
(2) by adding at the end the following: 
‘‘(A) below the level of an Assistant Secretary of 
Defense for cases in which the amount of restruc-
turing costs is expected to exceed $25,000,000 over a 
5-year period; or 
‘‘(B) below the level of the Director of the Defense 
Contract Management Agency for all other cases.’’. 
SEC. 815. LIMITATION REGARDING SERVICE CHARGES IM-
POSED FOR DEFENSE PROCUREMENTS MADE 
THROUGH CONTRACTS OF OTHER AGENCIES. 
(a) LIMITATION.—(1) Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2382 the 
following new section 2383:
243 
HR 4200 EAS/PP 
‘‘§ 2383. Procurements through contracts of other 
agencies: service charges 
‘‘(a) LIMITATION.—The head of an agency may not 
procure goods or services (under section 1535 of title 31, 
pursuant to a designation under section 11302(e) of title 
40, or otherwise) through a contract entered into by an 
agency outside the Department of Defense if the amount 
charged such head of an agency by the contracting agency 
for the goods or services includes a service charge in a total 
amount that exceeds one percent of the amount charged by 
the contractor for such goods or services under the contract. 
‘‘(b) WAIVER AUTHORITY.—(1) The appropriate offi-
cial of the Department of Defense may waive the limitation 
in subsection (a) in the case of any procurement for which 
that official determines that it is in the national security 
interests of the United States to do so. 
‘‘(2) The appropriate official for exercise of the waiver 
authority under paragraph (1) is as follows: 
‘‘(A) In the case of a procurement by a Defense 
Agency or Department of Defense Field Activity, the 
Secretary of Defense. 
‘‘(B) In the case of a procurement for a military 
department, the Secretary of that military depart-
ment. 
‘‘(3)(A) The Secretary of Defense may not delegate the 
authority under paragraph (1) to any person other than
244 
HR 4200 EAS/PP 
the Deputy Secretary of Defense or the Under Secretary of 
Defense for Acquisition, Technology, and Logistics. 
‘‘(B) The Secretary of a military department may not 
delegate the authority under paragraph (1) to any person 
other than the acquisition executive of that military depart-
ment. 
‘‘(c) INAPPLICABILITY TO CONTRACTS FOR CERTAIN 
SERVICES.—This section does not apply to procurements of 
the following services: 
‘‘(1) Printing, binding, or blank-book work to 
which section 502 of title 44 applies. 
‘‘(2) Services available under programs pursuant 
to section 103 of the Library of Congress Fiscal Oper-
ations Improvement Act of 2000 (Public Law 106– 
481; 114 Stat. 2187; 2 U.S.C. 182c). 
‘‘(d) 
INAPPLICABILITY
TO
COAST
GUARD
AND 
NASA.—This section does not apply to the Coast Guard 
when it is not operating as a service in the Navy or to 
the National Aeronautics and Space Administration. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘head of an agency’ has the mean-
ing given such term in section 2302 of this title. 
‘‘(2) The term ‘acquisition executive’, with re-
spect to a military department, means the official 
who is designated as the senior procurement executive
245 
HR 4200 EAS/PP 
of that military department under section 16(3) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)).’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2382 the following new item: 
‘‘2383. Procurements through contracts of other agencies: service charges.’’. 
(b) EFFECTIVE DATE AND APPLICABILITY.—Section 
2383 of title 10, United States Code, shall take effect on 
October 1, 2004, and shall apply with respect to orders for 
goods or services that are issued by the head of an agency 
(as defined in section 2302 of such title) on or after such 
date. 
SEC. 816. SENSE OF THE SENATE ON EFFECTS OF COST IN-
FLATION ON THE VALUE RANGE OF THE CON-
TRACTS TO WHICH A SMALL BUSINESS CON-
TRACT RESERVATION APPLIES. 
(a) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that— 
(1) in the administration of the requirement for 
reservation of contracts for small businesses under 
subsection (j) of section 15 of the Small Business Act 
(15 U.S.C. 644), the maximum amount in the con-
tract value range provided under that subsection 
should be treated as being adjusted to the same 
amount to which the simplified acquisition threshold
246 
HR 4200 EAS/PP 
is increased whenever such threshold is increased 
under law; and 
(2) the Administrator for Federal Procurement 
Policy, in consultation with the Federal Acquisition 
Regulatory Council, should ensure that appropriate 
governmentwide policies and procedures are in 
place— 
(A) to monitor socioeconomic data con-
cerning purchases made by means of purchase 
cards or credit cards issued for use in trans-
actions on behalf of the Federal Government; and 
(B) to encourage the placement of a fair 
portion of such purchases with small businesses 
consistent with governmentwide goals for small 
business prime contracting established under sec-
tion 15(g) of the Small Business Act (15 U.S.C. 
644(g)). 
(b) 
SIMPLIFIED
ACQUISITION
THRESHOLD
DE-
FINED.—In this section, the term ‘‘simplified acquisition 
threshold’’ has the meaning given such term in section 4(11) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
403(11)).
247 
HR 4200 EAS/PP 
Subtitle C—Extensions of 
Temporary Program Authorities 
SEC. 821. EXTENSION OF CONTRACT GOAL FOR SMALL DIS-
ADVANTAGED BUSINESS AND CERTAIN INSTI-
TUTIONS OF HIGHER EDUCATION. 
Section 2323(k) of title 10, United States Code, is 
amended by striking ‘‘2006’’ both places it appears and in-
serting ‘‘2009’’. 
SEC. 822. EXTENSION OF MENTOR-PROTEGE PROGRAM. 
Section 831 of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2302 
note) is amended— 
(1) in subsection (j)— 
(A) in paragraph (1), by striking ‘‘Sep-
tember 30, 2005’’ and inserting ‘‘September 30, 
2010’’; and 
(B) in paragraph (2), by striking ‘‘Sep-
tember 30, 2008’’ and inserting ‘‘September 30, 
2013’’; and 
(2) in subsection (l)(3), by striking ‘‘2007’’ and 
inserting ‘‘2012’’.
248 
HR 4200 EAS/PP 
SEC. 823. EXTENSION OF TEST PROGRAM FOR NEGOTIA-
TION OF COMPREHENSIVE SMALL BUSINESS 
SUBCONTRACTING PLANS. 
Section 834(e) of the National Defense Authorization 
Act for Fiscal Years 1990 and 1991 (Public Law 101–189; 
15 U.S.C. 637 note) is amended by striking ‘‘September 30, 
2005’’ and inserting ‘‘September 30, 2010’’. 
SEC. 824. EXTENSION OF PILOT PROGRAM ON SALES OF 
MANUFACTURED ARTICLES AND SERVICES OF 
CERTAIN ARMY INDUSTRIAL FACILITIES. 
Section 141(a) of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C. 
4543 note) is amended by striking ‘‘through 2004’’ in the 
first sentence and inserting ‘‘through 2009’’. 
Subtitle D—Industrial Base Matters 
SEC. 831. COMMISSION ON THE FUTURE OF THE NATIONAL 
TECHNOLOGY AND INDUSTRIAL BASE. 
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the Commission on the Future of the 
National Technology and Industrial Base (hereafter in this 
section referred to as the ‘‘Commission’’). 
(b) MEMBERSHIP.—(1) The Commission shall be com-
posed of 12 members appointed by the President. 
(2) The members of the Commission shall include— 
(A) persons with extensive experience and na-
tional reputations for expertise in the defense indus-
249 
HR 4200 EAS/PP 
try, commercial industries that support the defense 
industry, and the economics, finance, national secu-
rity, international trade, or foreign policy areas; and 
(B) persons who are representative of labor orga-
nizations associated with the defense industry, and 
persons who are representative of small business con-
cerns or organizations of small business concerns that 
are involved in Department of Defense contracting 
and other Federal Government contracting. 
(3) The appointment of the members of the Commis-
sion under this subsection shall be made not later than 
March 1, 2005. 
(4) Members shall be appointed for the life of the Com-
mission. A vacancy in the Commission shall not affect its 
powers, but shall be filled in the same manner in which 
the original appointment was made. 
(5) The President shall designate one member of the 
Commission to serve as the Chairman of the Commission. 
(c) MEETINGS.—(1) The Commission shall meet at the 
call of the Chairman. 
(2) A majority of the members of the Commission shall 
constitute a quorum, but a lesser number may hold hear-
ings. 
(d) DUTIES.—(1) The Commission shall—
250 
HR 4200 EAS/PP 
(A) study the issues associated with the future of 
the national technology and industrial base in the 
global economy, particularly with respect to its effect 
on United States national security; and 
(B) assess the future ability of the national tech-
nology and industrial base to attain the national se-
curity objectives set forth in section 2501 of title 10, 
United States Code. 
(2) In carrying out the study and assessment under 
paragraph (1), the Commission shall consider the following 
matters: 
(A) Existing and projected future capabilities of 
the national technology and industrial base. 
(B) The impact on the national technology and 
industrial base of civil-military integration and the 
growing dependence of the Department of Defense on 
the commercial market for defense products and serv-
ices. 
(C) Any current or projected shortages of a crit-
ical technology (as defined in section 2500(6) of title 
10, United States Code), or the raw materials nec-
essary for the production of such technology, that 
could adversely affect the national security of the 
United States.
252 
HR 4200 EAS/PP 
vide transformational breakthroughs in advanced 
manufacturing technologies and processes that ensure 
the strength and productivity of the national tech-
nology and industrial base. 
(J) The role of small business concerns in 
strengthening the national technology and industrial 
base. 
(e) REPORT.—Not later than March 1, 2007, the Com-
mission shall submit a report on its activities to the Presi-
dent and Congress. The report shall include the following 
matters: 
(1) The findings and conclusions of the Commis-
sion. 
(2) The recommendations of the Commission for 
actions by Federal Government officials to support 
the maintenance of a robust national technology and 
industrial base in the 21st century. 
(3) The recommendations of the Commission for 
addressing shortages in critical technologies, and 
shortages of raw materials necessary for the produc-
tion of critical technologies, that could adversely affect 
the national security of the United States. 
(4) Any recommendations for legislation or 
changes in regulations to support the implementation 
of the findings of the Commission.
253 
HR 4200 EAS/PP 
(5) A discussion of appropriate measures to im-
plement the recommendations of the Commission. 
(f) ADMINISTRATIVE REQUIREMENTS AND AUTHORI-
TIES.—(1) The Director of the Office of Management and 
Budget shall ensure that the Commission is provided such 
administrative services, facilities, staff, and other support 
services as may be necessary for the Commission to carry 
out its duties. Expenses of the Commission shall be paid 
out of funds available to the Director. 
(2) The Commission may hold such hearings, sit and 
act at such times and places, take such testimony, and re-
ceive such evidence as the Commission considers advisable 
to carry out the purposes of this section. 
(3) The Commission may secure directly from any 
Federal department or agency such information as the com-
mission considers necessary to carry out the provisions of 
this section. Upon a request of the Chairman of the Com-
mission, the head of such department or agency shall fur-
nish such information to the Commission. 
(4) The Commission may use the United States mails 
in the same manner and under the same conditions as other 
departments and agencies of the Federal Government. 
(g) PERSONNEL MATTERS.—(1) Members of the Com-
mission shall serve without compensation for their service 
on the Commission, except that each member of the Com-
254 
HR 4200 EAS/PP 
mission who is not an officer or employee of the United 
States shall be allowed travel expenses, including per diem 
in lieu of subsistence, at rates authorized for employees of 
agencies under subchapter I of chapter 57 of title 5, United 
States Code, while away from their homes or regular places 
of business in the performance of services for the Commis-
sion. 
(2) Section 3161 of title 5, United States Code, shall 
apply to the Commission, except that— 
(A) members of the Commission shall not be enti-
tled to pay for services under subsection (d) of such 
section; and 
(B) subsection (b)(2) of such section shall not 
apply to the employees of the Commission. 
(h) APPLICABILITY
OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to the Commission. 
(i) TERMINATION.—The Commission shall terminate 
30 days after the date on which the Commission submits 
its report under subsection (e). 
(j) DEFINITION OF NATIONAL TECHNOLOGY AND IN-
DUSTRIAL BASE.—In this section, the term ‘‘national tech-
nology and industrial base’’ has the meaning given such 
term in section 2500 of title 10, United States Code.
255 
HR 4200 EAS/PP 
SEC. 832. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR 
CONTENT REQUIREMENTS. 
(a) AUTHORITY.—Subchapter V of chapter 148 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 2539c. Waiver of domestic source or content re-
quirements 
‘‘(a) AUTHORITY.—Except as provided in subsection 
(f), the Secretary of Defense may waive the application of 
any domestic source requirement or domestic content re-
quirement referred to in subsection (b) and thereby author-
ize the procurement of items that are grown, reprocessed, 
reused, produced, or manufactured— 
‘‘(1) in a foreign country that has a Declaration 
of Principles with the United States; 
‘‘(2) in a foreign country that has a Declaration 
of Principles with the United States substantially 
from components and materials grown, reprocessed, 
reused, produced, or manufactured in the United 
States or any foreign country that has a Declaration 
of Principles with the United States; or 
‘‘(3) in the United States substantially from 
components and materials grown, reprocessed, reused, 
produced, or manufactured in the United States or 
any foreign country that has a Declaration of Prin-
ciples with the United States.
256 
HR 4200 EAS/PP 
‘‘(b) COVERED REQUIREMENTS.—For purposes of this 
section: 
‘‘(1) A domestic source requirement is any re-
quirement under law that the Department of Defense 
satisfy its requirements for an item by procuring an 
item that is grown, reprocessed, reused, produced, or 
manufactured in the United States or by a manufac-
turer that is a part of the national technology and in-
dustrial base (as defined in section 2500(1) of this 
title). 
‘‘(2) A domestic content requirement is any re-
quirement under law that the Department of Defense 
satisfy its requirements for an item by procuring an 
item produced or manufactured partly or wholly from 
components and materials grown, reprocessed, reused, 
produced, or manufactured in the United States. 
‘‘(c) APPLICABILITY.—The authority of the Secretary 
to waive the application of a domestic source or content 
requirements under subsection (a) applies to the procure-
ment of items for which the Secretary of Defense determines 
that— 
‘‘(1) application of the requirement would im-
pede the reciprocal procurement of defense items 
under a Declaration of Principles with the United 
States; and
257 
HR 4200 EAS/PP 
‘‘(2) such country does not discriminate against 
defense items produced in the United States to a 
greater degree than the United States discriminates 
against defense items produced in that country. 
‘‘(d) LIMITATION ON DELEGATION.—The authority of 
the Secretary to waive the application of domestic source 
or content requirements under subsection (a) may not be 
delegated to any officer or employee other than the Under 
Secretary of Defense for Acquisition, Technology and Logis-
tics. 
‘‘(e) CONSULTATIONS.—The Secretary may grant a 
waiver of the application of a domestic source or content 
requirement under subsection (a) only after consultation 
with the United States Trade Representative, the Secretary 
of Commerce, and the Secretary of State. 
‘‘(f) LAWS NOT WAIVABLE.—The Secretary of Defense 
may not exercise the authority under subsection (a) to 
waive any domestic source or content requirement con-
tained in any of the following laws: 
‘‘(1) The Small Business Act (15 U.S.C. 631 et 
seq.). 
‘‘(2) The Javits-Wagner-O’Day Act (41 U.S.C. 
46 et seq.). 
‘‘(3) Sections 7309 and 7310 of this title. 
‘‘(4) Section 2533a of this title.
258 
HR 4200 EAS/PP 
‘‘(g) RELATIONSHIP
TO OTHER WAIVER AUTHOR-
ITY.—The authority under subsection (a) to waive a domes-
tic source requirement or domestic content requirement is 
in addition to any other authority to waive such require-
ment. 
‘‘(h) CONSTRUCTION WITH RESPECT TO LATER EN-
ACTED LAWS.—This section may not be construed as being 
inapplicable to a domestic source requirement or domestic 
content requirement that is set forth in a law enacted after 
the enactment of this section solely on the basis of the later 
enactment. 
‘‘(i) DECLARATION OF PRINCIPLES.—(1) In this sec-
tion, the term ‘Declaration of Principles’ means a written 
understanding (including any Statement of Principles) be-
tween the Department of Defense and its counterpart in a 
foreign country signifying a cooperative relationship be-
tween the Department and its counterpart to standardize 
or make interoperable defense equipment used by the armed 
forces and the armed forces of the foreign country across 
a broad spectrum of defense activities, including— 
‘‘(A) harmonization of military requirements 
and acquisition processes; 
‘‘(B) security of supply; 
‘‘(C) export procedures; 
‘‘(D) security of information;
259 
HR 4200 EAS/PP 
‘‘(E) ownership and corporate governance; 
‘‘(F) research and development; 
‘‘(G) flow of technical information; and 
‘‘(H) defense trade. 
‘‘(2) A Declaration of Principles is underpinned by a 
memorandum of understanding or other agreement pro-
viding for the reciprocal procurement of defense items be-
tween the United States and the foreign country concerned 
without unfair discrimination in accordance with section 
2531 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such subchapter is amended by inserting 
after the item relating to section 2539b the following new 
item: 
‘‘2539c. Waiver of domestic source or content requirements.’’. 
SEC. 833. CONSISTENCY WITH UNITED STATES OBLIGA-
TIONS UNDER TRADE AGREEMENTS. 
No provision of this Act or any amendment made by 
this Act shall apply to a procurement by or for the Depart-
ment of Defense to the extent that the Secretary of Defense, 
in consultation with the Secretary of Commerce, the United 
States Trade Representative, and the Secretary of State, de-
termines that it is inconsistent with United States obliga-
tions under a trade agreement.
260 
HR 4200 EAS/PP 
SEC. 834. REPEAL OF CERTAIN REQUIREMENTS AND LIMI-
TATIONS RELATING TO THE DEFENSE INDUS-
TRIAL BASE. 
(a) ESSENTIAL ITEM IDENTIFICATION AND DOMESTIC 
PRODUCTION CAPABILITIES IMPROVEMENT.—Sections 812, 
813, and 814 of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108–136; 117 Stat. 1542, 
1543, 1545; 10 U.S.C. 2501 note) are repealed. 
(b) ELIMINATION OF UNRELIABLE SOURCE FOR ITEMS 
AND COMPONENTS.—Section 821 of such Act (117 Stat. 
1546; 10 U.S.C. 2534 note) is repealed. 
Subtitle E—Defense Acquisition 
and Support Workforce 
SEC. 841. LIMITATION AND REINVESTMENT AUTHORITY RE-
LATING TO REDUCTION OF THE DEFENSE AC-
QUISITION AND SUPPORT WORKFORCE. 
(a) LIMITATION.—Notwithstanding any other provi-
sion of law, the defense acquisition and support workforce 
may not be reduced, during fiscal years 2005, 2006, and 
2007, below the level of that workforce as of September 30, 
2003, determined on the basis of full-time employee equiva-
lence, except as may be necessary to strengthen the defense 
acquisition and support workforce in higher priority posi-
tions in accordance with this section. 
(b) INCREASE AND REALIGNMENT OF WORKFORCE.— 
(1)(A) During fiscal years 2005, 2006, and 2007, the Sec-
261 
HR 4200 EAS/PP 
retary of Defense shall increase the number of persons em-
ployed in the defense acquisition and support workforce as 
follows: 
(i) During fiscal year 2005, to 105 percent of the 
baseline number (as defined in subparagraph (B)). 
(ii) During fiscal year 2006, to 110 percent of 
the baseline number. 
(iii) During fiscal year 2007, to 115 percent of 
the baseline number. 
(B) In this paragraph, the term ‘‘baseline number’’, 
with respect to persons employed in the defense acquisition 
and support workforce, means the number of persons em-
ployed in such workforce as of September 30, 2003 (deter-
mined on the basis of full-time employee equivalence). 
(C) The Secretary of Defense may waive a requirement 
in subparagraph (A) and, subject to subsection (a), employ 
in the defense acquisition and support workforce a lesser 
number of employees if the Secretary determines and cer-
tifies to the congressional defense committees that the cost 
of increasing such workforce to the larger size as required 
under that subparagraph would exceed the savings to be de-
rived from the additional oversight that would be achieved 
by having a defense acquisition and support workforce of 
such larger size.
262 
HR 4200 EAS/PP 
(2) During fiscal years 2005, 2006, and 2007, the Sec-
retary of Defense may realign any part of the defense acqui-
sition and support workforce to support reinvestment in 
other, higher priority positions in such workforce. 
(c) HIGHER PRIORITY POSITIONS.—For the purposes 
of this section, higher priority positions in the defense ac-
quisition and support workforce include the following posi-
tions: 
(1) Positions the responsibilities of which include 
drafting performance-based work statements for serv-
ices contracts and overseeing the performance of con-
tracts awarded pursuant to such work statements. 
(2) Positions the responsibilities of which include 
conducting spending analyses, negotiating company- 
wide pricing agreements, and taking other measures 
to reduce contract costs. 
(3) Positions the responsibilities of which include 
reviewing contractor quality control systems, assess-
ing and analyzing quality deficiency reports, and 
taking other measures to improve product quality. 
(4) Positions the responsibilities of which include 
effectively conducting public-private competitions in 
accordance with Office of Management and Budget 
Circular A–76.
263 
HR 4200 EAS/PP 
(5) Any other positions in the defense acquisition 
and support workforce that the Secretary of Defense 
identifies as being higher priority positions that are 
staffed at levels not likely to ensure efficient and effec-
tive performance of all of the responsibilities of those 
positions. 
(d) STRATEGIC ASSESSMENT AND PLAN.—(1) The Sec-
retary of Defense shall— 
(A) assess the extent to which the Department of 
Defense can recruit, retain, train, and provide profes-
sional development opportunities for acquisition pro-
fessionals over the 10-fiscal year period beginning 
with fiscal year 2005; and 
(B) develop a human resources strategic plan for 
the defense acquisition and support workforce that in-
cludes objectives and planned actions for improving 
the management of such workforce. 
(2) The Secretary shall submit to Congress, not later 
than April 1, 2005, a report on the progress made in— 
(A) completing the assessment required under 
paragraph (1); and 
(B) completing and implementing the strategic 
plan required under such paragraph. 
(e) DEFENSE ACQUISITION AND SUPPORT WORKFORCE 
DEFINED.—In this section, the term ‘‘defense acquisition
264 
HR 4200 EAS/PP 
and support workforce’’ means members of the Armed 
Forces and civilian personnel who are assigned to, or are 
employed in, an organization of the Department of Defense 
that has acquisition as its predominant mission, as deter-
mined by the Secretary of Defense. 
SEC. 842. DEFENSE ACQUISITION WORKFORCE IMPROVE-
MENTS. 
(a) SELECTION CRITERIA FOR ACQUISITION CORPS 
AND FOR CRITICAL ACQUISITION POSITIONS.—(1) Section 
1732(b)(1)(A) of title 10, United States Code, is amended 
by striking ‘‘within grade GS–13 or above of’’ and inserting 
‘‘for which the employee is being paid at a rate of basic 
pay that equals or exceeds the minimum rate of basic pay 
provided for grade GS–13 under’’. 
(2) Section 1733(b)(1)(A)(i) of such title is amended 
by striking ‘‘in a position within grade GS–14 or above 
of the General Schedule, or’’ and inserting ‘‘who is cur-
rently serving in a position for which the employee is being 
paid at a rate of basic pay that equals or exceeds the min-
imum rate of basic pay provided for grade GS–14 under 
the General Schedule or is required to be filled by an em-
ployee who is’’. 
(b) SCHOLARSHIP PROGRAM.—Section 1742 of such 
title is amended—
265 
HR 4200 EAS/PP 
(1) 
by 
inserting 
‘‘(a) 
REQUIRED
PROGRAMS.—’’ before ‘‘The Secretary of Defense shall 
conduct’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) SCHOLARSHIP PROGRAM REQUIREMENTS.—(1) 
Each recipient of a scholarship under a program conducted 
under subsection (a)(3) shall be required to sign a written 
agreement that sets forth the terms and conditions of the 
scholarship. The agreement shall include the following: 
‘‘(A) Criteria for the recipient’s continued eligi-
bility for the scholarship. 
‘‘(B) The terms of any requirement for the re-
cipient to reimburse the United States for educational 
assistance provided under the scholarship upon— 
‘‘(i) a failure by the recipient to satisfy the 
criteria for continued eligibility for the scholar-
ship; or 
‘‘(ii) a termination of the recipient’s service 
in the Department of Defense before the end of 
any period of obligated service provided in the 
agreement, as described in paragraph (2). 
‘‘(2) Subject to paragraph (3)(C), a recipient of a 
scholarship under the program shall reimburse the United 
States the total amount of educational assistance provided
266 
HR 4200 EAS/PP 
to the recipient under the program if the recipient is volun-
tarily separated from service or involuntarily separated for 
cause from the Department of Defense before the end of any 
period for which the recipient has agreed, as a condition 
of the scholarship, to continue in the service of the Depart-
ment of Defense in an acquisition position. 
‘‘(3)(A) If an employee fails to fulfill an agreement to 
pay the Government any amount of educational assistance 
provided to that person under the program, a sum equal 
to such amount of the educational assistance is recoverable 
by the Government from the employee or his estate by— 
‘‘(i) setoff against accrued pay, compensation, 
amount of retirement credit, or other amount due the 
employee from the Government; and 
‘‘(ii) such other method as is provided by law for 
the recovery of amounts owing to the Government. 
‘‘(B) An obligation to reimburse the United States 
under an agreement entered into under this subsection is 
for all purposes a debt owed to the United States. 
‘‘(C) The Secretary of Defense may waive in whole or 
in part a reimbursement required under this subsection or 
under an agreement entered into under this subsection if 
the Secretary determines that the recovery would be against 
equity and good conscience or would be contrary to the best 
interests of the United States.
267 
HR 4200 EAS/PP 
‘‘(D) A discharge in bankruptcy under title 11 that 
is entered less than five years after the termination of an 
agreement entered into under this subsection does not dis-
charge a person executing the agreement from a debt arising 
under this subsection or such agreement. 
‘‘(4) Nothing in this subsection shall be considered to 
require that a position be offered to a recipient of a scholar-
ship under the program after such recipient successfully 
completes the course of education for which the scholarship 
is granted. However, the agreement entered into under this 
subsection with respect to such scholarship shall be consid-
ered terminated if the recipient is not, within the time spec-
ified in the agreement, offered a full-time acquisition posi-
tion in the Department of Defense that— 
‘‘(A) is commensurate with the recipient’s aca-
demic degree and experience; and 
‘‘(B) is— 
‘‘(i) in the excepted service, if the recipient 
has not previously acquired competitive status, 
with the right, after successful completion of two 
years of service and such other requirements as 
the Office of Personnel Management may pre-
scribe, to be appointed to a position in the com-
petitive service, notwithstanding subchapter I of 
chapter 33 of title 5; or
268 
HR 4200 EAS/PP 
‘‘(ii) in the competitive service, if the recipi-
ent has previously acquired competitive status.’’. 
(c) AUTHORITY TO ESTABLISH DIFFERENT MINIMUM 
REQUIREMENTS.—(1) Section 1764(b) of such title is 
amended— 
(A) by redesignating paragraph (5) as para-
graph (6); and 
(B) by inserting after paragraph (4) the fol-
lowing new paragraph (5): 
‘‘(5) Deputy program manager.’’. 
(2) Paragraph (1) of such section is amended by strik-
ing ‘‘in paragraph (5)’’ and inserting ‘‘in paragraph (6)’’. 
Subtitle F—Public-Private 
Competitions 
SEC. 851. PUBLIC-PRIVATE COMPETITION FOR WORK PER-
FORMED BY CIVILIAN EMPLOYEES OF THE 
DEPARTMENT OF DEFENSE. 
(a) LIMITATION.—Section 2461(b) of title 10, United 
States Code, is amended by adding at the end the following 
new paragraph: 
‘‘(5)(A) Notwithstanding subsection (d), a function of 
the Department of Defense performed by 10 or more civilian 
employees may not be converted, in whole or in part, to 
performance by a contractor unless the conversion is based 
on the results of a public-private competition process that—
269 
HR 4200 EAS/PP 
‘‘(i) formally compares the cost of civilian em-
ployee performance of that function with the costs of 
performance by a contractor; 
‘‘(ii) creates an agency tender, including a most 
efficient organization plan, in accordance with Office 
of Management and Budget Circular A–76, as imple-
mented on May 29, 2003; 
‘‘(iii) requires continued performance of the 
function by civilian employees unless the competitive 
sourcing official concerned determines that, over all 
performance periods stated in the solicitation of offers 
for performance of the activity or function, the cost of 
performance of the activity or function by a con-
tractor would be less costly to the Department of De-
fense by an amount that equals or exceeds the lesser 
of $10,000,000 or 10 percent of the most efficient or-
ganization’s personnel-related costs for performance of 
that activity or function by Federal employees; and 
‘‘(iv) ensures that the public sector bid would not 
be disadvantaged in the cost comparison process by a 
proposal of an offeror to reduce costs for the Depart-
ment of Defense by not making an employer-spon-
sored health insurance plan available to the workers 
who are to be employed in the performance of such 
function under a contract or by offering to such work-
270 
HR 4200 EAS/PP 
ers an employer-sponsored health benefits plan that 
requires the employer to contribute less towards the 
premium or subscription share than that which is 
paid by the Department of Defense for health benefits 
for civilian employees under chapter 89 of title 5. 
‘‘(B) Any function that is performed by civilian em-
ployees of the Department of Defense and is proposed to 
be reengineered, reorganized, modernized, upgraded, ex-
panded, or changed in order to become more efficient shall 
not be considered a new requirement for the purpose of the 
competition requirements in subparagraph (A) or the re-
quirements for public-private competition in Office of Man-
agement and Budget Circular A–76. 
‘‘(C) A function performed by more than 10 Federal 
Government employees may not be separated into separate 
functions for the purposes of avoiding the competition re-
quirement in subparagraph (A) or the requirements for 
public-private competition in Office of Management and 
Budget Circular A–76. 
‘‘(D) The Secretary of Defense may waive the require-
ment for a public-private competition under subparagraph 
(A) in specific instances if— 
‘‘(i) the written waiver is prepared by the Sec-
retary of Defense or the relevant Assistant Secretary
271 
HR 4200 EAS/PP 
of Defense, Secretary of a military department, or 
head of a Defense Agency; 
‘‘(ii) the written waiver is accompanied by a de-
tailed determination that national security interests 
are so compelling as to preclude compliance with the 
requirement for a public-private competition; and 
‘‘(iii) a copy of the waiver is published in the 
Federal Register within 10 working days after the 
date on which the waiver is granted, although use of 
the waiver need not be delayed until its publication.’’. 
(b) INAPPLICABILITY TO BEST-VALUE SOURCE SELEC-
TION PILOT PROGRAM.—(1) Paragraph (5) of section 
2461(b) of title 10, United States Code, as added by sub-
section (a), shall not apply with respect to the pilot pro-
gram for best-value source selection for performance of in-
formation technology services authorized by section 336 of 
the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108–136; 117 Stat. 1444; 10 U.S.C. 2461 
note). 
SEC. 852. PERFORMANCE OF CERTAIN WORK BY FEDERAL 
GOVERNMENT EMPLOYEES. 
(a) GUIDELINES.—(1) The Secretary of Defense shall 
prescribe guidelines and procedures for ensuring that con-
sideration is given to using Federal Government employees 
on a regular basis for work that is performed under Depart-
272 
HR 4200 EAS/PP 
ment of Defense contracts and could be performed by Fed-
eral Government employees. 
(2) The guidelines and procedures prescribed under 
paragraph (1) shall provide for special consideration to be 
given to contracts that— 
(A) have been performed by Federal Government 
employees at any time on or after October 1, 1980; 
(B) are associated with the performance of inher-
ently governmental functions; 
(C) were not awarded on a competitive basis; or 
(D) have been determined by a contracting offi-
cer to be poorly performed due to excessive costs or in-
ferior quality. 
(b) NEW REQUIREMENTS.—(1) No public-private com-
petition may be required under Office of Management and 
Budget Circular A–76 or any other provision of law or reg-
ulation before the performance of a new requirement by 
Federal Government employees commences, the performance 
by Federal Government employees of work pursuant to sub-
section (a) commences, or the scope of an existing activity 
performed by Federal Government employees is expanded. 
Office of Management and Budget Circular A–76 shall be 
revised to ensure that the heads of all Federal agencies give 
fair consideration to the performance of new requirements 
by Federal Government employees.
273 
HR 4200 EAS/PP 
(2) The Secretary of Defense shall, to the maximum 
extent practicable, ensure that Federal Government employ-
ees are fairly considered for the performance of new require-
ments, with special consideration given to new requirements 
that include functions that— 
(A) are similar to functions that have been per-
formed by Federal Government employees at any time 
on or after October 1, 1980; or 
(B) are associated with the performance of inher-
ently governmental functions. 
(c) USE OF FLEXIBLE HIRING AUTHORITY.—The Sec-
retary shall include the use of the flexible hiring authority 
available through the National Security Personnel System 
in order to facilitate performance by Federal Government 
employees of new requirements and work that is performed 
under Department of Defense contracts. 
(d) INSPECTOR GENERAL REPORT.—Not later than 
180 days after the enactment of this Act, the Inspector Gen-
eral of the Department of Defense shall submit to the Com-
mittees on Armed Services of the Senate and the House of 
Representatives a report on the compliance of the Secretary 
of Defense with the requirements of this section. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘National Security Personnel Sys-
tem’’ means the human resources management system
274 
HR 4200 EAS/PP 
established under the authority of section 9902 of title 
5, United States Code. 
(2) The term ‘‘inherently governmental function’’ 
has the meaning given that term in section 5 of the 
Federal Activities Inventory Reform Act of 1998 
(Public Law 105–270; 112 Stat. 2384; 31 U.S.C. 501 
note). 
SEC. 853. COMPETITIVE SOURCING REPORTING REQUIRE-
MENT. 
Not later than February 1, 2005, the Inspector General 
of the Department of Defense shall submit to Congress a 
report addressing whether the Department of Defense— 
(1) employs a sufficient number of adequately 
trained civilian employees— 
(A) to conduct satisfactorily, taking into ac-
count equity, efficiency and expeditiousness, all 
of the public-private competitions that are sched-
uled to be undertaken by the Department of De-
fense during the next fiscal year (including a 
sufficient number of employees to formulate sat-
isfactorily the performance work statements and 
most efficient organization plans for the pur-
poses of such competitions); and 
(B) to administer any resulting contracts; 
and
275 
HR 4200 EAS/PP 
(2) has implemented a comprehensive and reli-
able system to track and assess the cost and quality 
of the performance of functions of the Department of 
Defense by service contractors. 
Subtitle G—Other Matters 
SEC. 861. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO 
SETTLEMENTS UNDER SPECIAL TEMPORARY 
CONTRACT CLOSEOUT AUTHORITY. 
Section 804(a) of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1541) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(a) AUTHOR-
ITY.—’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) Under regulations which the Secretary of Defense 
may prescribe, a settlement of a financial account for a con-
tract for the procurement of property or services under 
paragraph (1) may be made without regard to— 
‘‘(A) section 1301 of title 31, United States Code; 
and 
‘‘(B) any other provision of law that would pre-
clude the Secretary from charging payments under 
the contract—
276 
HR 4200 EAS/PP 
‘‘(i) to an unobligated balance in an appro-
priation available for funding that contract; or 
‘‘(ii) if and to the extent that the unobli-
gated balance (if any) in such appropriation is 
insufficient for funding such payments, to any 
current appropriation that is available to the 
Department of Defense for funding contracts for 
the procurement of the same or similar property 
or services.’’. 
SEC. 862. DEMONSTRATION PROGRAM ON EXPANDED USE 
OF RESERVES TO PERFORM DEVELOPMENTAL 
TESTING, NEW EQUIPMENT TRAINING, AND 
RELATED ACTIVITIES. 
(a) REQUIREMENT FOR PROGRAM.—The Secretary of 
the Army shall carry out a demonstration program on use 
of members of reserve components of the Armed Forces to 
perform test, evaluation, and related activities for an acqui-
sition program. The Secretary shall design and carry out 
the demonstration program to achieve the purposes set forth 
in subsection (b). 
(b) PURPOSES.—The purposes of the demonstration 
program are as follows: 
(1) To determine whether cost savings and other 
benefits result from use of members of reserve compo-
nents of the Armed Forces instead of contractor per-
277 
HR 4200 EAS/PP 
sonnel to perform test and evaluation activities for an 
acquisition program and related acquisition, logistics, 
and new equipment training activities for the acqui-
sition program. 
(2) To evaluate the advisability of using appro-
priations available for multiyear research, develop-
ment, test, and evaluation and appropriations avail-
able for multiyear procurements to reimburse reserve 
components for the pay, allowances, and other ex-
penses paid to or for Reserves used for the acquisition 
program as described in paragraph (1). 
(c) REIMBURSEMENT OF PERSONNEL ACCOUNTS OUT 
OF PROCUREMENT AND RDT&E ACCOUNTS.—(1) The Sec-
retary of the Army may transfer from funds available to 
the Army for an acquisition program to a reserve compo-
nent military personnel account the amount necessary to 
reimburse that account for costs charged to that account for 
military pay and allowances in connection with the use of 
reserve component personnel for such acquisition program 
under this section. 
(2) Not more than $10,000,000 may be transferred 
under this subsection during any fiscal year of the dem-
onstration program. 
(3) Funds transferred to an account under this sub-
section shall be merged with other sums in the account and
278 
HR 4200 EAS/PP 
shall be available for the same period and purposes as the 
sums with which merged. 
(4) The transfer authority under this subsection is in 
addition to any other transfer authority provided in this 
or any other Act. 
(d) NONWAIVER OF PERSONNEL AND TRAINING POLI-
CIES AND PROCEDURES.—Nothing in this section may be 
construed to authorize any deviation from established per-
sonnel or training policies or procedures that are applicable 
to the reserve components of the personnel used under the 
demonstration program. 
(e) TERMINATION.—The demonstration program under 
this section shall terminate on September 30, 2009. 
SEC. 863. APPLICABILITY OF COMPETITION EXCEPTIONS TO 
ELIGIBILITY OF NATIONAL GUARD FOR FI-
NANCIAL ASSISTANCE FOR PERFORMANCE OF 
ADDITIONAL DUTIES. 
Section 113(b)(1)(B) of title 32, United States Code, 
is amended by inserting before the period at the end the 
following: ‘‘, subject to the exceptions provided in section 
2304(c) of title 10’’. 
SEC. 864. MANAGEMENT PLAN FOR CONTRACTOR SECURITY 
PERSONNEL. 
(a) REQUIREMENT FOR PLAN.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary
279 
HR 4200 EAS/PP 
of Defense shall submit to the congressional defense commit-
tees, the Select Committee on Intelligence of the Senate, and 
the Permanent Select Committee on Intelligence of the 
House of Representatives a plan for the management and 
oversight of contractor security personnel by Federal Gov-
ernment personnel in areas where the Armed Forces are en-
gaged in military operations. In the preparation of such 
plan, the Secretary shall coordinate, as appropriate, with 
the heads of other departments and agencies of the Federal 
Government that would be affected by the implementation 
of the plan. 
(b) POLICIES AND PROCEDURES.—The plan under this 
section shall set forth policies and procedures applicable to 
contractor security personnel in potentially hazardous 
areas of military operations. The policies and procedures 
shall address the following matters: 
(1) Warning contractor security personnel of po-
tentially hazardous situations. 
(2) Coordinating the movement of contractor se-
curity personnel, especially through areas of increased 
risk or planned or ongoing military operations. 
(3) Rapidly identifying contractor security per-
sonnel by members of the Armed Forces. 
(4) Sharing relevant threat information with 
contractor security personnel, and receiving informa-
280 
HR 4200 EAS/PP 
tion gathered by contractor security personnel for use 
by United States and coalition forces. 
(5) Providing appropriate assistance to con-
tractor security personnel who become engaged in hos-
tile situations. 
(6) Providing medical assistance for, and evacu-
ation of, contractor personnel who become casualties 
as a result of enemy actions. 
(7) Investigating background and qualifications 
of contractor security personnel and organizations. 
(8) Establishing rules of engagement for armed 
contractor security personnel, and ensuring proper 
training and compliance with the rules of engage-
ment. 
(c) OPTIONS FOR ENHANCED AND COST-EFFECTIVE 
CONTRACTOR SECURITY.—The plan under subsection (a) 
shall include assessed options for enhancing contractor secu-
rity and reducing contractor security costs in Iraq or in 
locations of armed conflict in the future. The options cov-
ered shall include the following: 
(1) Temporary commissioning of contractor secu-
rity personnel as reserve component officers in order 
to subject such personnel to the military chain of com-
mand.
281 
HR 4200 EAS/PP 
(2) Requiring contractor security personnel to 
obtain security clearances to facilitate the commu-
nication of critical threat information. 
(3) Establishing a contract schedule for compa-
nies furnishing contractor security personnel to pro-
vide a more orderly process for the selection, training, 
and compensation of such personnel. 
(4) Establishing a contract schedule for compa-
nies to provide more cost-effective insurance for con-
tractor security personnel. 
(5) Providing for United States indemnification 
of contractors to reduce the costs of insuring con-
tractor security personnel. 
SEC. 865. REPORT ON CONTRACTOR PERFORMANCE OF SE-
CURITY, INTELLIGENCE, LAW ENFORCEMENT, 
AND CRIMINAL JUSTICE FUNCTIONS IN IRAQ. 
(a) REPORT REQUIRED.—Not later than 60 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall submit to the congressional defense committees 
a report on the procurement of services, by an agency of 
the United States Government or by the Coalition Provi-
sional Authority, for the performance of security, intel-
ligence, law enforcement, and criminal justice functions in 
Iraq.
282 
HR 4200 EAS/PP 
(b) CONTENT.—The report under subsection (a) shall 
include, at a minimum, the following: 
(1) Each security, intelligence, law enforcement, 
or criminal justice function performed by a con-
tractor in Iraq. 
(2) For each such function— 
(A) a determination of whether such func-
tion is an inherently governmental function, to-
gether with a discussion of the factual basis and 
rationale for that determination; 
(B) an explanation of the basis for the deci-
sion to rely on a contractor to perform such 
function, including a discussion of the extent to 
which the Armed Forces lacked the expertise or 
manpower to perform that function using Armed 
Forces personnel; 
(C) a description of the chain of command 
for the contractor performing such function, to-
gether with a discussion of the manner in which 
the United States Government or the Coalition 
Provisional Authority supervises and directs the 
contractor’s performance of that function; and 
(D) what sanctions are available to impose 
on any contractor employee who—
283 
HR 4200 EAS/PP 
(i) fails to comply with a requirement 
of law or regulation that applies to such 
employee in the performance of that func-
tion; or 
(ii) engages in other misconduct in the 
performance of that function. 
(3) An explanation of the legal status of con-
tractor employees in the performance of such func-
tions after the administration of the sovereign powers 
of Iraq is transferred from the Coalition Provisional 
Authority to a government of Iraq on June 30, 2004. 
(c) COORDINATION.—In the preparation of the report 
under this section, the Secretary of Defense shall coordinate, 
as appropriate, with the heads of any departments and 
agencies of the Federal Government that are involved in the 
procurement of services for the performance of functions de-
scribed in subsection (a). 
(d) ADDITIONAL CONGRESSIONAL RECIPIENTS.—In 
addition to submitting the report under this section to the 
congressional defense committees, the Secretary of Defense 
shall also submit the report to the Select Committee on In-
telligence of the Senate and the Permanent Select Com-
mittee on Intelligence of the House of Representatives.
284 
HR 4200 EAS/PP 
SEC. 866. ACCREDITATION STUDY OF COMMERCIAL OFF- 
THE-SHELF PROCESSES FOR EVALUATING IN-
FORMATION TECHNOLOGY PRODUCTS AND 
SERVICES. 
(a) REQUIREMENT FOR STUDY.—The Secretary of De-
fense shall carry out a study of commercial off-the-shelf 
processes that are available for measuring the quality of in-
formation technology and related services through assess-
ment of the production methods of the producers of the tech-
nology. 
(b) PURPOSES.—The purposes of the study of commer-
cial off-the-shelf processes under subsection (a) are as fol-
lows: 
(1) To assess the value of such a process as a 
consistent methodology for identifying high quality 
information technology and the engineering sources 
capable of providing high quality information tech-
nology and related services. 
(2) To determine whether to accredit such a 
process for use in procurements of information tech-
nology and related services throughout the Depart-
ment of Defense. 
(c) SAVINGS AND ENHANCEMENTS.—In carrying out 
the study under subsection (a), the Secretary shall deter-
mine the benefits that would result for the Department of 
Defense from use throughout the Department of Defense of
285 
HR 4200 EAS/PP 
a commercial off-the-shelf process described in that sub-
section to measure the quality of information technology 
products and services in procurements described in sub-
section (b)(2), including— 
(1) projected annual savings in costs of develop-
ment and maintenance of information technology; 
and 
(2) quantified enhancements of productivity, 
schedule, performance, deficiency rates, and predict-
ability. 
(d) BASELINE DATA.—To define a baseline for meas-
uring benefits under subsection (c), the Secretary shall use 
empirical data that is readily available to the Department 
of Defense and contractor sources. 
(e) INFORMATION CONSIDERED.—The Secretary of De-
fense may consider projections of savings and quantifica-
tions of enhancements that are submitted by a contractor. 
(f) INFORMATION TECHNOLOGY DEFINED.—In this 
section, the term ‘‘information technology’’ has the meaning 
given such term in section 11101(6) of title 40, United 
States Code.
286 
HR 4200 EAS/PP 
SEC. 867. CONTRACTOR PERFORMANCE OF ACQUISITION 
FUNCTIONS CLOSELY ASSOCIATED WITH IN-
HERENTLY GOVERNMENTAL FUNCTIONS. 
(a) LIMITATION.—(1) Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2382 the 
following new section: 
‘‘§ 2383. Contractor performance of acquisition func-
tions closely associated with inherently 
governmental functions 
‘‘(a) LIMITATION.—The head of an agency may enter 
a contract for the performance of acquisition functions 
closely associated with inherently governmental functions 
only if the Secretary determines that— 
‘‘(1) appropriate military or civilian personnel 
of the Department of Defense cannot reasonably be 
made available to perform the functions; 
‘‘(2) appropriate military or civilian personnel 
of the Department of Defense are— 
‘‘(A) to supervise contractor performance of 
the contract; and 
‘‘(B) to perform all inherently governmental 
functions associated with the functions to be per-
formed under the contract; and 
‘‘(3) the contractor does not have an organiza-
tional conflict of interest or the appearance of an or-
287 
HR 4200 EAS/PP 
ganizational conflict of interest in the performance of 
the functions under the contract. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘head of an agency’ has the mean-
ing given such term in section 2302(1) of this title, 
except that such term does not include the Secretary 
of Homeland Security or the Administrator of the 
National Oceanic and Atmospheric Administration. 
‘‘(2) The term ‘inherently governmental func-
tions’ has the meaning given such term in subpart 7.5 
of part 7 of the Federal Acquisition Regulation. 
‘‘(3) The term ‘functions closely associated with 
inherently governmental functions’ means the func-
tions described in section 7.503(d) of the Federal Ac-
quisition Regulation. 
‘‘(4) The term ‘organizational conflict of interest’ 
has the meaning given such term in subpart 9.5 of 
part 9 of the Federal Acquisition Regulation.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2382 the following new item: 
‘‘2383. Contractor performance of acquisition functions closely associated with in-
herently governmental functions.’’. 
(b) EFFECTIVE DATE AND APPLICABILITY.—Section 
2383 of title 10, United States Code (as added by subsection
288 
HR 4200 EAS/PP 
(a)), shall take effect on the date of enactment of this Act 
and shall apply to— 
(1) contracts entered into on or after such date; 
(2) any task or delivery order issued on or after 
such date under a contract entered into before, on, or 
after such date; and 
(3) any decision on or after such date to exercise 
an option or otherwise extend a contract for program 
management or oversight of contracts for the recon-
struction of Iraq, regardless of whether such program 
management or oversight contract was entered into 
before, on, or after the date of enactment of this Act. 
SEC. 868. CONTRACTING WITH EMPLOYERS OF PERSONS 
WITH DISABILITIES. 
(a) 
INAPPLICABILITY
OF
RANDOLPH-SHEPPARD 
ACT.—The Randolph-Sheppard Act does not apply to any 
contract described in subsection (b) for so long as the con-
tract 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—
289 
HR 4200 EAS/PP 
(1) was entered into before the date of the enact-
ment of this Act with a nonprofit agency for the blind 
or an agency for other severely handicapped in com-
pliance with section 3 of the Javits-Wagner-O’Day 
Act (41 U.S.C. 48); and 
(2) either— 
(A) is in effect on such date; or 
(B) was in effect on the date of the enact-
ment of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108–136). 
(c) REPEAL OF SUPERSEDED LAW.—Section 852 of 
the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108–136; 117 Stat. 1556) is repealed. 
SEC. 869. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
The Secretary of Defense shall, to the extent prac-
ticable, exercise existing statutory authority, including the 
authority provided by section 2865 of title 10, United States 
Code, and section 8256 of title 42, United States Code, to 
introduce life-cycle cost-effective upgrades to Federal assets 
through shared energy savings contracting, demand man-
agement programs, and utility incentive programs.
290 
HR 4200 EAS/PP 
SEC. 870. AVAILABILITY OF FEDERAL SUPPLY SCHEDULE 
SUPPLIES AND SERVICES TO UNITED SERV-
ICE ORGANIZATIONS, INCORPORATED. 
Section 220107 of title 36, United States Code, is 
amended by inserting after ‘‘Department of Defense’’ the 
following: ‘‘, including access to General Services Adminis-
tration supplies and services through the Federal Supply 
Schedule of the General Services Administration,’’. 
SEC. 871. ACQUISITION OF AERIAL REFUELING AIRCRAFT 
FOR THE AIR FORCE. 
(a) 
COMPLIANCE
WITH
APPLICABLE
REQUIRE-
MENTS.—The Secretary of Defense shall ensure that the Sec-
retary of the Air Force does not proceed with the acquisition 
of aerial refueling aircraft for the Air Force by lease or 
other contract, either with full and open competition or 
under section 135 of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 1413) 
until the date that is 60 days after the date on which the 
Secretary Defense has— 
(1) reviewed all documentation for the acquisi-
tion, including— 
(A) the completed aerial refueling analysis 
of alternatives (AOA) required by section 134(b) 
of the National Defense Authorization Act for 
Fiscal Year 2004, pursuant to ‘‘Analysis of Al-
291 
HR 4200 EAS/PP 
ternatives (AoA) Guidance of KC–135 Recapital-
ization’’, dated February 24, 2004; 
(B) the completed aerial refueling portion of 
the Mobility Capabilities Study; 
(C) a new validated capabilities document 
in accordance with the applicable Chairman of 
Joint Chiefs of Staff Instruction; and 
(D) the approval of a Defense Acquisition 
Board in accordance with Department of Defense 
regulations; and 
(2) submitted to the congressional defense com-
mittees a determination in writing that the acquisi-
tion is in compliance with all currently applicable 
laws, Office of Management and Budget circulars, 
and regulations. 
(b) INDEPENDENT REVIEW.—Not later than 45 days 
after the Secretary of Defense makes the determination de-
scribed in paragraph (2) of subsection (a), the Comptroller 
General and the Inspector General of the Department of De-
fense shall each review the documentation referred to in 
paragraph (1) of such subsection and submit to the congres-
sional defense committees a report on the extent to which 
the acquisition is— 
(1) in compliance with the requirements of this 
section and all currently applicable laws, Office of
292 
HR 4200 EAS/PP 
Management and Budget circulars, and regulations; 
and 
(2) consistent with the analysis of alternatives 
referred to in subparagraph (A) of subsection (a)(1) 
and the other documentation referred to in such sub-
section. 
(c) LIMITATION ON ACQUISITION BEYOND LOW-RATE 
INITIAL PRODUCTION.—(1) The acquisition by lease or 
other contract of any aerial refueling aircraft for the Air 
Force beyond low-rate initial production shall be subject to, 
and for such acquisition the Secretary of the Air Force shall 
comply with, the requirements of sections 2366 and 2399 
of title 10, United States Code. 
(2) For the purposes of this subsection, the term ‘‘low- 
rate initial production’’, with respect to a lease, shall have 
the same meaning as applies in the administration of sec-
tions 2366 and 2399 of title 10, United States Code, with 
regard to any other form of acquisition. 
(d) SOURCE SELECTION FOR INTEGRATED SUPPORT 
OF AERIAL REFUELING AIRCRAFT FLEET.—For the selec-
tion of a provider of integrated support for the aerial refuel-
ing aircraft fleet in any acquisition by lease or other con-
tract of aerial refueling aircraft for the Air Force, the Sec-
retary of the Air Force shall—
293 
HR 4200 EAS/PP 
(1) before selecting the provider, perform all 
analyses required by law of— 
(A) the costs and benefits of— 
(i) the alternative of using Federal 
Government personnel to provide such sup-
port; and 
(ii) the alternative of using contractor 
personnel to provide such support; 
(B) the core logistics requirements; 
(C) use of performance-based logistics; and 
(D) the length of contract period; and 
(2) select the provider on the basis of fairly con-
ducted full and open competition (as defined in sec-
tion 4(6) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403(6))). 
(e) PRICE INFORMATION.—Before the Secretary of the 
Air Force commits to acquiring by lease or other contract 
any aerial refueling aircraft for the Air Force, the Secretary 
shall require the manufacturer to provide, with respect to 
commercial items covered by the lease or contract, appro-
priate information on the prices at which the same or simi-
lar items have previously been sold that is adequate for eval-
uating the reasonableness of the price for the items. 
(f) AUDIT SERVICES.—The Secretary of the Air Force 
shall contact the Office of the Inspector General for the De-
294 
HR 4200 EAS/PP 
partment of Defense for review and approval of any Air 
Force use of non-Federal audit services for any lease or 
other contract for the acquisition of aerial refueling air-
craft. 
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Reserve Components 
SEC. 901. MODIFICATION OF STATED PURPOSE OF THE RE-
SERVE COMPONENTS. 
Section 10102 of title 10, United States Code, is 
amended by striking ‘‘, during and after the period needed 
to procure and train additional units and qualified persons 
to achieve the planned mobilization,’’. 
SEC. 902. COMMISSION ON THE NATIONAL GUARD AND RE-
SERVES. 
(a) ESTABLISHMENT.—There is established a commis-
sion to be known as the ‘‘Commission on the National 
Guard and Reserves’’ (hereafter in this section referred to 
as the ‘‘Commission’’). 
(b) COMPOSITION.—(1) The Commission shall be com-
posed of 13 members appointed as follows: 
(A) Three members appointed by the chairman 
of the Committee on Armed Services of the Senate.
295 
HR 4200 EAS/PP 
(B) Three members appointed by the chairman 
of the Committee on Armed Services of the House of 
Representatives. 
(C) Two members appointed by the ranking mi-
nority member of the Committee on Armed Services 
of the Senate. 
(D) Two members appointed by the ranking mi-
nority member of the Committee on Armed Service of 
the House of Representatives. 
(E) Three members appointed by the Secretary 
of Defense. 
(2) The members of the Commission shall be appointed 
from among persons who have knowledge and expertise in 
the following areas: 
(A) National security. 
(B) Roles and missions of any of the Armed 
Forces. 
(C) The mission, operations, and organization of 
the National Guard of the United States. 
(D) The mission, operations, and organization of 
the other reserve components of the Armed Forces. 
(E) Military readiness of the Armed Forces. 
(F) Personnel pay and other forms of compensa-
tion.
296 
HR 4200 EAS/PP 
(G) Other personnel benefits, including health 
care. 
(3) Members of the Commission shall be appointed for 
the life of the Commission. A vacancy in the membership 
of the Commission shall not affect the powers of the Com-
mission, but shall be filled in the same manner as the origi-
nal appointment. 
(4) The Secretary of Defense shall designate a member 
of the Commission to be chairman of the Commission. 
(c) DUTIES.—(1) The Commission shall carry out a 
study of the following matters: 
(A) The roles and missions of the National 
Guard and the other reserve components of the Armed 
Forces. 
(B) The compensation and other benefits, includ-
ing health care benefits, that are provided for mem-
bers of the reserve components under the laws of the 
United States. 
(2) In carrying out the study under paragraph (1), 
the Commission shall— 
(A) assess the current roles and missions of the 
reserve components and identify appropriate poten-
tial future roles and missions for the reserve compo-
nents;
297 
HR 4200 EAS/PP 
(B) assess the capabilities of the reserve compo-
nents and determine how the units and personnel of 
the reserve components may be best used to support 
the military operations of the Armed Forces and the 
achievement of national security objectives, including 
homeland defense, of the United States; 
(C) assess— 
(i) the current organization and structure of 
the National Guard and the other reserve compo-
nents; and 
(ii) the plans of the Department of Defense 
and the Armed Forces for future organization 
and structure of the National Guard and the 
other reserve components; 
(D) assess the manner in which the National 
Guard and the other reserve components are currently 
organized and funded for training and identify an 
organizational and funding structure for training 
that best supports the achievement of training objec-
tives and operational readiness; 
(E) assess the effectiveness of the policies and 
programs of the National Guard and the other reserve 
components for achieving operational readiness and 
personnel readiness, including medical and personal 
readiness;
298 
HR 4200 EAS/PP 
(F) assess— 
(i) the adequacy and appropriateness of the 
compensation and benefits currently provided for 
the members of the National Guard and the other 
reserve components, including the availability of 
health care benefits and health insurance; and 
(ii) the effects of proposed changes in com-
pensation and benefits on military careers in 
both the regular and the reserve components of 
the Armed Forces; 
(G) identify various feasible options for improv-
ing the compensation and other benefits available to 
the members of the National Guard and the members 
of the other reserve components and assess— 
(i) the cost-effectiveness of such options; and 
(ii) the foreseeable effects of such options on 
readiness, recruitment, and retention of per-
sonnel for careers in the regular and reserve com-
ponents the Armed Forces; 
(H) assess the traditional military career paths 
for members of the National Guard and the other re-
serve components and identify alternative career 
paths that could enhance professional development; 
and
299 
HR 4200 EAS/PP 
(I) assess the adequacy of the funding provided 
for the National Guard and the other reserve compo-
nents for several previous fiscal years, including the 
funding provided for National Guard and reserve 
component equipment and the funding provided for 
National Guard and other reserve component per-
sonnel in active duty military personnel accounts and 
reserve military personnel accounts. 
(d) FIRST MEETING.—The Commission shall hold its 
first meeting not later than 30 days after the date on which 
all members of the Commission have been appointed. 
(e) ADMINISTRATIVE
AND PROCEDURAL AUTHORI-
TIES.—(1) Except as provided in paragraph (2), sections 
955, 956, 957, 958, and 959 of the National Defense Author-
ization Act for Fiscal Year 1994 (Public Law 103–160; 107 
Stat. 1740; 10 U.S.C 111 note) shall apply to the Commis-
sion. 
(2)(A) The daily rate of pay payable under section 
957(a) of Public Law 103–160 shall be equal to the daily 
rate of basic pay prescribed for level IV of the Executive 
Schedule. 
(B) Section 957(f) of Public Law 103–160 (relating 
to services of federally funded research and development 
centers) shall not apply to the Commission.
300 
HR 4200 EAS/PP 
(3) The following provisions of law do not apply to 
the Commission: 
(A) Section 3161 of title 5, United States Code. 
(B) The Federal Advisory Committee Act (5 
U.S.C. App.). 
(f) REPORTS.—(1) Not later than March 31, 2005, the 
Commission shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a report 
setting forth— 
(A) a strategic plan for the work of the Commis-
sion; 
(B) a discussion of the activities of the Commis-
sion; and 
(C) any initial findings of the Commission. 
(2) Not later than December 31, 2005, the Commission 
shall submit a final report to the Committees of Congress 
referred to in paragraph (1). The final report shall include 
any recommendations that the Commission determines ap-
propriate, including any recommended legislation, policies, 
regulations, directives, and practices. 
(g) TERMINATION.—The Commission shall terminate 
90 days after the date on which the final report is submitted 
under subsection (f)(2).
301 
HR 4200 EAS/PP 
(h) ANNUAL REVIEW BOARD.—(1)(A) Chapter 7 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 186. Reserve components: annual review 
‘‘(a) INDEPENDENT REVIEW BOARD.—The Secretary 
of Defense shall appoint a board to review the reserve com-
ponents of the armed forces. 
‘‘(b) COMPOSITION
OF BOARD.—(1) The Secretary 
shall appoint the members of the board from among persons 
who have knowledge and expertise in the following areas: 
‘‘(A) National security. 
‘‘(B) Roles and missions of any of the armed 
forces. 
‘‘(C) The mission, operations, and organization 
of any of the reserve components. 
‘‘(D) Military readiness of the armed forces. 
‘‘(E) Personnel pay and other forms of com-
pensation. 
‘‘(F) Other personnel benefits, including health 
care. 
‘‘(2) The Secretary of Defense shall designate a member 
of the board to be chairman of the board. 
‘‘(c) DUTIES.—The board shall, on an annual basis— 
‘‘(1) review—
302 
HR 4200 EAS/PP 
‘‘(A) the roles and missions of the reserve 
components; and 
‘‘(B) the compensation and other benefits, 
including health care benefits, that are provided 
for members of the reserve components under the 
laws of the United States; and 
‘‘(2) submit to the Secretary of Defense a report 
on the review, which shall include the findings of the 
board regarding the matters reviewed and any rec-
ommendations that the board considers appropriate 
regarding those matters. 
‘‘(d) REPORT TO CONGRESS.—Promptly after receiv-
ing the report under subsection (c)(2), the Secretary shall 
transmit the report, together with any comments and rec-
ommendations that the Secretary considers appropriate, to 
the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives. 
‘‘(e) ADMINISTRATIVE PROVISIONS.—Section 180(d) of 
this title shall apply to the members of the review board 
appointed under this section.’’. 
(B) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item: 
‘‘186. Reserve components: annual review.’’.
303 
HR 4200 EAS/PP 
(2) The first review board under section 186 of title 
10, United States Code (as added by paragraph (1)), shall 
be appointed during fiscal year 2006. 
SEC. 903. CHAIN OF SUCCESSION FOR THE CHIEF OF THE 
NATIONAL GUARD BUREAU. 
(a) SENIOR OFFICER.—(1) Section 10502 of title 10, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(e) SUCCESSION.—Unless otherwise directed by the 
President or the Secretary of Defense, the most senior officer 
among the officers of the Army National Guard of the 
United States and the officers of the Air National Guard 
of the United States performing the duties of positions in 
the National Guard Bureau shall act as the Chief of the 
National Guard Bureau during any period that— 
‘‘(1) there is a vacancy in the position of Chief 
of the National Guard Bureau; or 
‘‘(2) the Chief is unable to perform the duties of 
that position.’’. 
(2)(A) The heading of such section is amended by add-
ing at the end the following: ‘‘; succession’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 1011 of such title is 
amended to read as follows: 
‘‘10502. Chief of the National Guard Bureau: appointment; adviser on National 
Guard matters; grade; succession.’’.
304 
HR 4200 EAS/PP 
(b) CONFORMING AMENDMENT.—Section 10505 of such 
title is amended by striking subsections (d) and (e). 
SEC. 904. REDESIGNATION OF VICE CHIEF OF THE NA-
TIONAL GUARD BUREAU AS DIRECTOR OF 
THE JOINT STAFF OF THE NATIONAL GUARD 
BUREAU. 
(a) REDESIGNATION OF POSITION.—Subsection (a)(1) 
of section 10505 of title 10, United States Code, is amended 
by striking ‘‘Vice Chief of the National Guard Bureau’’ and 
inserting ‘‘Director of the Joint Staff of the National Guard 
Bureau’’. 
(b) CONFORMING
AMENDMENTS.—(1) Subsections 
(a)(3)(A), (a)(3)(B), (b), (c), and (d) of section 10505 of 
title 10, United States Code, are amended by striking ‘‘Vice 
Chief of the National Guard Bureau’’ and inserting ‘‘Direc-
tor of the Joint Staff of the National Guard Bureau’’. 
(2) Subsection (a)(3)(B) of such section, as amended 
by paragraph (1), is further amended by striking ‘‘as the 
Vice Chief’’ and inserting ‘‘as the Director’’. 
(3) Paragraphs (2) and (4) of subsection (a) of such 
section are amended by striking ‘‘Chief and Vice Chief of 
the National Guard Bureau’’ and inserting ‘‘Chief of the 
National Guard Bureau and the Director of the Joint Staff 
of the National Guard Bureau’’. 
(4)(A) Subsection (e) of such section is amended—
305 
HR 4200 EAS/PP 
(i) by striking ‘‘Chief and Vice Chief of the Na-
tional Guard Bureau or in the absence or disability 
of both the Chief and Vice Chief of the National 
Guard Bureau’’ and inserting ‘‘Chief of the National 
Guard Bureau and the Director of the Joint Staff of 
the National Guard Bureau or in the absence or dis-
ability of both the Chief and the Director’’; and 
(ii) by striking ‘‘Chief or Vice Chief’’ both places 
it appears and inserting ‘‘Chief or Director’’. 
(B) The heading for such subsection is amended by 
striking ‘‘VICE CHIEF.—’’ and inserting ‘‘DIRECTOR OF 
THE JOINT STAFF.—’’. 
(5) Section 10506(a)(1) of title 10, United States Code, 
is amended by striking ‘‘Chief and Vice Chief of the Na-
tional Guard Bureau’’ and inserting ‘‘Chief of the National 
Guard Bureau and the Director of the Joint Staff of the 
National Guard Bureau’’. 
(c) CLERICAL AMENDMENTS.—(1) The heading for sec-
tion 10505 of title 10, United States Code, is amended to 
read as follows: 
‘‘§ 10505. Director of the Joint Staff of the National 
Guard Bureau’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 1011 of such title is 
amended to read as follows: 
‘‘10505. Director of the Joint Staff of the National Guard Bureau.’’.
306 
HR 4200 EAS/PP 
(d) OTHER REFERENCES.—Any reference that is made 
in any law, regulation, document, paper, or other record 
of the United States to the Vice Chief of the National Guard 
Bureau shall be deemed to be a reference to the Director 
of the Joint Staff of the National Guard Bureau. 
SEC. 905. AUTHORITY TO REDESIGNATE THE NAVAL RE-
SERVE. 
(a) AUTHORITY OF SECRETARY OF THE NAVY.—The 
Secretary of the Navy may, with the approval of the Presi-
dent, redesignate the Naval Reserve as the ‘‘Navy Reserve’’ 
effective on the date that is 180 days after the date on which 
the Secretary submits recommended legislation under sub-
section (b). 
(b) RECOMMENDED LEGISLATION.—If the Secretary of 
the Navy exercises the authority to redesignate the Naval 
Reserve under subsection (a), the Secretary shall submit to 
the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representa-
tives recommended legislation that identifies each specific 
provision of law that refers to the Naval Reserve and sets 
forth an amendment to that specific provision of law to con-
form the reference to the new designation. 
(c) EFFECT OF REDESIGNATION.—On and after the ef-
fective date of a redesignation of the Naval Reserve under 
subsection (a), any reference in any law, map, regulation,
307 
HR 4200 EAS/PP 
document, paper, or other record of the United States to 
the Naval Reserve shall be deemed to be a reference to the 
Navy Reserve. 
SEC. 906. HOMELAND SECURITY ACTIVITIES OF THE NA-
TIONAL GUARD. 
(a) AUTHORITY.—Chapter 1 of title 32, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 116. Homeland security activities 
‘‘(a) USE OF PERSONNEL PERFORMING FULL-TIME 
NATIONAL GUARD DUTY.—The Governor of a State may, 
upon the request by the head of a Federal agency and with 
the concurrence of the Secretary of Defense, order any per-
sonnel of the National Guard of the State to perform full- 
time National Guard duty under section 502(f) of this title 
for the purpose of carrying out homeland security activities, 
as described in subsection (b). 
‘‘(b) PURPOSE AND DURATION.—(1) The purpose for 
the use of personnel of the National Guard of a State under 
this section is to temporarily provide trained and dis-
ciplined personnel to a Federal agency to assist that agency 
in carrying out homeland security activities. 
‘‘(2) The duration of the use of the National Guard 
of a State under this section shall be limited to a period 
of 180 days. The Governor of the State may, with the con-
308 
HR 4200 EAS/PP 
currence of the Secretary of Defense, extend the period one 
time for an additional 90 days to meet extraordinary cir-
cumstances. 
‘‘(c) RELATIONSHIP
TO REQUIRED TRAINING.— A 
member of the National Guard serving on full-time Na-
tional Guard duty under orders authorized under sub-
section (a) shall participate in the training required under 
section 502(a) of this title in addition to the duty performed 
for the purpose authorized under that subsection. The pay, 
allowances, and other benefits of the member while partici-
pating in the training shall be the same as those to which 
the member is entitled while performing duty for the pur-
pose of carrying out homeland security activities. The mem-
ber is not entitled to additional pay, allowances, or other 
benefits for participation in training required under section 
502(a)(1) of this title. 
‘‘(d) READINESS.—To ensure that the use of units and 
personnel of the National Guard of a State for homeland 
security activities does not degrade the training and readi-
ness of such units and personnel, the following requirements 
shall apply in determining the homeland security activities 
that units and personnel of the National Guard of a State 
may perform: 
‘‘(1) The performance of the activities may not 
adversely affect the quality of that training or other-
309 
HR 4200 EAS/PP 
wise interfere with the ability of a member or unit of 
the National Guard to perform the military functions 
of the member or unit. 
‘‘(2) National Guard personnel will not degrade 
their military skills as a result of performing the ac-
tivities. 
‘‘(3) The performance of the activities will not 
result in a significant increase in the cost of training. 
‘‘(4) In the case of homeland security performed 
by a unit organized to serve as a unit, the activities 
will support valid unit training requirements. 
‘‘(e) PAYMENT OF COSTS.—(1) The Secretary of De-
fense shall provide funds to the Governor of a State to pay 
costs of the use of personnel of the National Guard of the 
State for the performance of homeland security activities 
under this section. Such funds shall be used for the following 
costs: 
‘‘(A) The pay, allowances, clothing, subsistence, 
gratuities, travel, and related expenses (including all 
associated training expenses, as determined by the 
Secretary), as authorized by State law, of personnel 
of the National Guard of that State used, while not 
in Federal service, for the purpose of homeland secu-
rity activities.
310 
HR 4200 EAS/PP 
‘‘(B) The operation and maintenance of the 
equipment and facilities of the National Guard of 
that State used for the purpose of homeland security 
activities. 
‘‘(2) The Secretary of Defense shall require the head 
of an agency receiving support from the National Guard 
of a State in the performance of homeland security activi-
ties under this section to reimburse the Department of De-
fense for the payments made to the State for such support 
under paragraph (1). 
‘‘(f) MEMORANDUM OF AGREEMENT.—The Secretary of 
Defense and the Governor of a State shall enter into a 
memorandum of agreement with the head of each Federal 
agency to which the personnel of the National Guard of that 
State are to provide support in the performance of home-
land security activities under this section. The memo-
randum of agreement shall— 
‘‘(1) specify how personnel of the National 
Guard are to be used in homeland security activities; 
‘‘(2) include a certification by the Adjutant Gen-
eral of the State that those activities are to be per-
formed at a time when the personnel are not in Fed-
eral service; 
‘‘(3) include a certification by the Adjutant Gen-
eral of the State that—
311 
HR 4200 EAS/PP 
‘‘(A) participation by National Guard per-
sonnel in those activities is service in addition to 
training required under section 502 of this title; 
and 
‘‘(B) the requirements of subsection (d) of 
this section will be satisfied; 
‘‘(4) include a certification by the Attorney Gen-
eral of the State (or, in the case of a State with no 
position of Attorney General, a civilian official of the 
State equivalent to a State attorney general), that the 
use of the National Guard of the State for the activi-
ties provided for under the memorandum of agree-
ment is authorized by, and is consistent with, State 
law; 
‘‘(5) include a certification by the Governor of 
the State or a civilian official of the State designated 
by the Governor that the activities provided for under 
the memorandum of agreement serve a State security 
purpose; and 
‘‘(6) include a certification by the head of the 
Federal agency that the agency will have a plan to 
ensure that the agency’s requirement for National 
Guard support ends not later than 179 days after the 
commencement of the support.
312 
HR 4200 EAS/PP 
‘‘(g) EXCLUSION FROM END-STRENGTH COMPUTA-
TION.—Notwithstanding any other provision of law, mem-
bers of the National Guard on active duty or full-time Na-
tional Guard duty for the purposes of administering (or 
during fiscal year 2003 otherwise implementing) this sec-
tion shall not be counted toward the annual end strength 
authorized for Reserves on active duty in support of the re-
serve components of the armed forces or toward the strengths 
authorized in sections 12011 and 12012 of title 10. 
‘‘(h) ANNUAL REPORT.—The Secretary of Defense shall 
submit to Congress an annual report regarding any assist-
ance provided and activities carried out under this section 
during the preceding fiscal year. The report shall include 
the following: 
‘‘(1) The number of members of the National 
Guard excluded under subsection (g) from the com-
putation of end strengths. 
‘‘(2) A description of the homeland security ac-
tivities conducted with funds provided under this sec-
tion. 
‘‘(3) An accounting of the amount of funds pro-
vided to each State. 
‘‘(4) A description of the effect on military train-
ing and readiness of using units and personnel of the
313 
HR 4200 EAS/PP 
National Guard to perform homeland security activi-
ties under this section. 
‘‘(i) STATUTORY CONSTRUCTION.—Nothing in this sec-
tion shall be construed as a limitation on the authority of 
any unit of the National Guard of a State, when such unit 
is not in Federal service, to perform functions authorized 
to be performed by the National Guard by the laws of the 
State concerned. 
‘‘(j) DEFINITIONS.—For purposes of this section: 
‘‘(1) The term ‘Governor of a State’ means, in 
the case of the District of Columbia, the Commanding 
General of the National Guard of the District of Co-
lumbia. 
‘‘(2) The term ‘State’ means each of the several 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, or a territory or possession of the 
United States.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such section is amended by adding at the 
end the following new item: 
‘‘116. Homeland security activities.’’.
314 
HR 4200 EAS/PP 
Subtitle B—Other Matters 
SEC. 911. STUDY OF ROLES AND AUTHORITIES OF THE DI-
RECTOR OF DEFENSE RESEARCH AND ENGI-
NEERING. 
(a) STUDY REQUIRED.—The Secretary of Defense shall 
carry out a study of the roles and authorities of the Director 
of Defense Research and Engineering. 
(b) CONTENT OF STUDY.—The study under this section 
shall include the following: 
(1) An examination of the past and current roles 
and authorities of the Director of Defense Research 
and Engineering. 
(2) An analysis to determine appropriate future 
roles and authorities for the Director, including an 
analysis of the following matters: 
(A) The relationship of the Director to other 
senior science and technology and acquisition of-
ficials of the military departments and the De-
fense Agencies 
(B) The relationship of the Director to the 
performance of the following functions: 
(i) The planning, programming, and 
budgeting of the science and technology pro-
grams of the Department of Defense, includ-
315 
HR 4200 EAS/PP 
ing those of the military departments and 
the Defense Agencies. 
(ii) The management of Department of 
Defense laboratories and technical centers, 
including the management of the Federal 
Government scientific and technical work-
force for such laboratories and centers. 
(iii) The promotion of the rapid tran-
sition of technologies to acquisition pro-
grams within the Department of Defense. 
(iv) The promotion of the transfer of 
technologies into and from the commercial 
sector. 
(v) The coordination of Department of 
Defense science and technology activities 
with organizations outside the Department 
of Defense, including other Federal Govern-
ment agencies, international research orga-
nizations, industry, and academia. 
(vi) The technical review of Depart-
ment of Defense acquisition programs and 
policies. 
(vii) The training and educational ac-
tivities for the national scientific and tech-
nical workforce.
316 
HR 4200 EAS/PP 
(viii) The development of science and 
technology policies and programs relating to 
the maintenance of the national technology 
and industrial base. 
(3) An examination of the duties of the Director 
as the Chief Technology Officer of the Department of 
Defense, especially in comparison to the duties of 
similar positions in the Federal Government and in-
dustry. 
(4) An examination of any other matters that 
the Secretary considers appropriate for the study. 
(c) REPORT.—(1) Not later than February 1, 2006, the 
Secretary shall submit a report on the results of the study 
under this section to the congressional defense committees. 
(2) The report shall include recommendations regard-
ing the appropriate roles, authorities, and resources that 
should be assigned to the Director of Defense Research and 
Engineering in order to enable the Director to serve effec-
tively as the Chief Technology Officer of the Department 
of Defense and to support the transformation of the Armed 
Forces. 
(d) ROLE OF DEFENSE SCIENCE BOARD IN STUDY AND 
REPORT.—The Secretary shall act through the Defense 
Science Board in carrying out the study under this section 
and preparing the report under subsection (c).
317 
HR 4200 EAS/PP 
SEC. 912. DIRECTORS OF SMALL BUSINESS PROGRAMS. 
(a) REDESIGNATION OF EXISTING POSITIONS AND OF-
FICES.—(1) Each of the following positions within the De-
partment of Defense is redesignated as the Director of Small 
Business Programs: 
(A) The Director of Small and Disadvantaged 
Business Utilization of the Department of Defense. 
(B) The Director of Small and Disadvantaged 
Business Utilization of the Department of the Army. 
(C) The Director of Small and Disadvantaged 
Business Utilization of the Department of the Navy. 
(D) The Director of Small and Disadvantaged 
Business Utilization of the Department of the Air 
Force. 
(2) Each of the following offices within the Department 
of Defense is redesignated as the Office of Small Business 
Programs: 
(A) The Office of Small and Disadvantaged 
Business Utilization of the Department of Defense. 
(B) The Office of Small and Disadvantaged 
Business Utilization of the Department of the Army. 
(C) The Office of Small and Disadvantaged 
Business Utilization of the Department of the Navy. 
(D) The Office of Small and Disadvantaged 
Business Utilization of the Department of the Air 
Force.
318 
HR 4200 EAS/PP 
(3) Any reference that is made in any law, regulation, 
document, paper, or other record of the United States to 
a position or office redesignated by paragraph (1) or (2) 
shall be deemed to be a reference to the position or office 
as so redesignated. 
(b) DEPARTMENT OF DEFENSE POSITION AND OF-
FICE.—(1) Chapter 4 of title 10, United States Code, is 
amended by inserting after section 133b the following new 
section: 
‘‘§ 133c. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Busi-
ness Programs in the Department of Defense. The Director 
is appointed by the Secretary of Defense. 
‘‘(b) OFFICE OF SMALL BUSINESS PROGRAMS.—The 
Office of Small Business Programs of the Department of 
Defense is the office that is established within the Office of 
the Secretary of Defense under section 15(k) of the Small 
Business Act (15 U.S.C. 644(k)). The Director of Small 
Business Programs is the head of such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small 
Business Programs shall, subject to paragraph (2), perform 
such duties regarding small business programs of the De-
partment of Defense, and shall exercise such powers regard-
ing those programs, as the Secretary of Defense may pre-
scribe.
319 
HR 4200 EAS/PP 
‘‘(2) Section 15(k) of the Small Business Act (15 
U.S.C. 644(k)), except for the designations of the Director 
and the Office, applies to the Director of Small Business 
Programs.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
133b the following new item: 
‘‘133c. Director of Small Business Programs.’’. 
(c) DEPARTMENT OF THE ARMY POSITION AND OF-
FICE.—(1) Chapter 303 of title 10, United States Code, is 
amended by adding at the end the following new section: 
‘‘§ 3024. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Busi-
ness Programs in the Department of the Army. The Director 
is appointed by the Secretary of the Army. 
‘‘(b) OFFICE OF SMALL BUSINESS PROGRAMS.—The 
Office of Small Business Programs of the Department of 
the Army is the office that is established within the Depart-
ment of the Army under section 15(k) of the Small Business 
Act (15 U.S.C. 644(k)). The Director of Small Business 
Programs is the head of such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small 
Business Programs shall, subject to paragraph (2), perform 
such duties regarding small business programs of the De-
partment of the Army, and shall exercise such powers re-
320 
HR 4200 EAS/PP 
garding those programs, as the Secretary of the Army may 
prescribe. 
‘‘(2) Section 15(k) of the Small Business Act (15 
U.S.C. 644(k)), except for the designations of the Director 
and the Office, applies to the Director of Small Business 
Programs.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item: 
‘‘3024. Director of Small Business Programs.’’. 
(d) DEPARTMENT OF THE NAVY POSITION AND OF-
FICE.—(1) Chapter 503 of title 10, United States Code, is 
amended by adding at the end the following new section: 
‘‘§ 5028. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Busi-
ness Programs in the Department of the Navy. The Director 
is appointed by the Secretary of the Navy. 
‘‘(b) OFFICE OF SMALL BUSINESS PROGRAMS.—The 
Office of Small Business Programs of the Department of 
the Navy is the office that is established within the Depart-
ment of the Navy under section 15(k) of the Small Business 
Act (15 U.S.C. 644(k)). The Director of Small Business 
Programs is the head of such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small 
Business Programs shall, subject to paragraph (2), perform 
such duties regarding small business programs of the De-
partment of the Navy, and shall exercise such powers re-
321 
HR 4200 EAS/PP 
garding those programs, as the Secretary of the Navy may 
prescribe. 
‘‘(2) Section 15(k) of the Small Business Act (15 
U.S.C. 644(k)), except for the designations of the Director 
and the Office, applies to the Director of Small Business 
Programs.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item: 
‘‘5028. Director of Small Business Programs.’’. 
(d) DEPARTMENT OF THE AIR FORCE POSITION AND 
OFFICE.—(1) Chapter 803 of title 10, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 8024. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Busi-
ness Programs in the Department of the Air Force. The Di-
rector is appointed by the Secretary of the Air Force. 
‘‘(b) OFFICE OF SMALL BUSINESS PROGRAMS.—The 
Office of Small Business Programs of the Department of 
the Air Force is the office that is established within the De-
partment of the Air Force under section 15(k) of the Small 
Business Act (15 U.S.C. 644(k)). The Director of Small 
Business Programs is the head of such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small 
Business Programs shall, subject to paragraph (2), perform 
such duties regarding small business programs of the De-
partment of the Air Force, and shall exercise such powers
322 
HR 4200 EAS/PP 
regarding those programs, as the Secretary of the Air Force 
may prescribe. 
‘‘(2) Section 15(k) of the Small Business Act (15 
U.S.C. 644(k)), except for the designations of the Director 
and the Office, applies to the Director of Small Business 
Programs.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item: 
‘‘8024. Director of Small Business Programs.’’. 
SEC. 913. LEADERSHIP POSITIONS FOR THE NAVAL POST-
GRADUATE SCHOOL. 
(a) DESIGNATION OF PRESIDENT.—(1) The position of 
Superintendent of the Naval Postgraduate School is redesig-
nated as President of the Naval Postgraduate School. 
(2) Any reference to the Superintendent of the Naval 
Postgraduate School in any law, rule, regulation, docu-
ment, record, or other paper of the United States shall be 
deemed to be a reference to the President of the Naval Post-
graduate School. 
(3) Sections 7042, 7044, 7048(a), and 7049(e) of title 
10, United States Code, are amended by striking ‘‘Super-
intendent’’ each place it appears and inserting ‘‘President’’. 
(4) The heading of section 7042 of such title is amend-
ed by striking ‘‘Superintendent;’’ in the section heading 
and inserting ‘‘President;’’.
323 
HR 4200 EAS/PP 
(b) PROVOST AND ACADEMIC DEAN.—(1) The position 
of Academic Dean of the Naval Postgraduate School is re-
designated as Provost and Academic Dean of the Naval 
Postgraduate School. 
(2) Any reference to the Academic Dean of the Naval 
Postgraduate School in any law, rule, regulation, docu-
ment, record, or other paper of the United States shall be 
deemed to be a reference to the Provost and Academic Dean 
of the Naval Postgraduate School. 
(3)(A) Subsection (a) of section 7043 of title 10, 
United States Code, is amended to read as follows: 
‘‘(a) There is at the Naval Postgraduate School the sin-
gle civilian position of Provost and Academic Dean. The 
Provost and Academic Dean shall be appointed, to serve 
for periods of not more than five years, by the Secretary 
of the Navy. Before making an appointment to the position 
of Provost and Academic Dean, the Secretary shall consult 
with the Board of Advisors for the Naval Postgraduate 
School and consider any recommendation of the leadership 
and faculty of the Naval Postgraduate School regarding an 
appointment to the position.’’. 
(B) The heading of such section is amended to read 
as follows:
324 
HR 4200 EAS/PP 
‘‘§ 7043. Provost and Academic Dean’’. 
(4) Sections 7043(b) and 7081(a) of title 10, United 
States Code, are amended by striking ‘‘Academic Dean’’ 
and inserting ‘‘Provost and Academic Dean’’. 
(5) Section 5102(c)(10) of title 5, United States Code, 
is amended by striking ‘‘Academic Dean of the Post-
graduate School of the Naval Academy’’ and inserting 
‘‘Provost and Academic Dean of the Naval Postgraduate 
School’’. 
(c) CLERICAL AMENDMENTS.—The table of sections at 
the beginning of chapter 605 of such title 10, United States 
Code, is amended by striking the items related to sections 
7042 and 7043 and inserting the following new items: 
‘‘7042. President: assistants. 
‘‘7043. Provost and Academic Dean.’’. 
SEC. 914. UNITED STATES MILITARY CANCER INSTITUTE. 
(a) ESTABLISHMENT.—Chapter 104 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2117. United States Military Cancer Institute 
‘‘(a) ESTABLISHMENT.—(1) There is a United States 
Military Cancer Institute in the University. The Director 
of the United States Military Cancer Institute is the head 
of the Institute. 
‘‘(2) The Institute is composed of clinical and basic 
scientists in the Department of Defense who have an exper-
325 
HR 4200 EAS/PP 
tise in research, patient care, and education relating to on-
cology and who meet applicable criteria for participation 
in the Institute. 
‘‘(3) The components of the Institute include military 
treatment and research facilities that meet applicable cri-
teria and are designated as affiliates of the Institute. 
‘‘(b) RESEARCH.—(1) The Director of the United 
States Military Cancer Institute shall carry out research 
studies on the following: 
‘‘(A) The epidemiological features of cancer, in-
cluding assessments of the carcinogenic effect of ge-
netic and environmental factors, and of disparities in 
health, inherent or common among populations of 
various ethnic origins. 
‘‘(B) The prevention and early detection of can-
cer. 
‘‘(C) Basic, translational, and clinical investiga-
tion matters relating to the matters described in sub-
paragraphs (A) and (B). 
‘‘(2) The research studies under paragraph (1) shall 
include complementary research on oncologic nursing. 
‘‘(c) COLLABORATIVE RESEARCH.—The Director of the 
United States Military Cancer Institute shall carry out the 
research studies under subsection (b) in collaboration with
326 
HR 4200 EAS/PP 
other cancer research organizations and entities selected by 
the Institute for purposes of the research studies. 
‘‘(d) ANNUAL REPORT.—(1) Promptly after the end of 
each fiscal year, the Director of the United States Military 
Cancer Institute shall submit to the President of the Univer-
sity a report on the results of the research studies carried 
out under subsection (b). 
‘‘(2) Not later than 60 days after receiving the annual 
report under paragraph (1), the President of the University 
shall transmit such report to the Secretary of Defense and 
to Congress.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘2117. United States Military Cancer Institute.’’. 
SEC. 915. AUTHORITIES OF THE JUDGE ADVOCATES GEN-
ERAL. 
(a) DEPARTMENT OF THE ARMY.—(1) Section 3019(b) 
of title 10, United States Code, is amended by striking ‘‘The 
General Counsel’’ and inserting ‘‘Subject to sections 806 
and 3037 of this title, the General Counsel’’. 
(2)(A) Section 3037 of such title is amended to read 
as follows:
327 
HR 4200 EAS/PP 
‘‘§ 3037. Judge Advocate General, Assistant Judge Ad-
vocate General: appointment; duties 
‘‘(a) POSITION
OF JUDGE ADVOCATE GENERAL.— 
There is a Judge Advocate General in the Army, who is 
appointed by the President, by and with the advice and 
consent of the Senate, from officers of the Judge Advocate 
General’s Corps. The term of office is four years, but may 
be sooner terminated or extended by the President. The 
Judge Advocate General, while so serving, has the grade of 
lieutenant general. 
‘‘(b) APPOINTMENT.—The Judge Advocate General of 
the Army shall be appointed from those officers who at the 
time of appointment are members of the bar of a Federal 
court or the highest court of a State or Territory, and who 
have had at least eight years of experience in legal duties 
as commissioned officers. 
‘‘(c) DUTIES.—The Judge Advocate General, in addi-
tion to other duties prescribed by law— 
‘‘(1) is the legal adviser of the Secretary of the 
Army, the Chief of Staff of the Army, and the Army 
Staff, and of all offices and agencies of the Depart-
ment of the Army; 
‘‘(2) shall direct and supervise the members of 
the Judge Advocate General’s Corps and civilian at-
torneys employed by the Department of the Army 
(other than those assigned or detailed to the Office of