H. R. 4200—227
(C) identify the Secretary’s preferred approach among the
alternatives identified pursuant to subparagraph (A) and pro-
vide the Secretary’s rationale for preferring that approach.
(3) In identifying alternative approaches pursuant to paragraph
(2)(A), the Secretary shall examine—
(A) approaches used by other Federal departments and
agencies; and
(B) the feasibility of using private economic forecasting.
(b) COMPTROLLER GENERAL REVIEW AND REPORT.—The Comp-
troller General shall review the report under subsection (a),
including the basis for the Secretary’s conclusions stated in the
report, and shall submit, not later than January 15, 2005, to the
Committee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives a report con-
taining the results of that review.
SEC. 1007. FISCAL YEAR 2004 TRANSFER AUTHORITY.
Section 1001(a)(2) of the National Defense Authorization Act
for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 1582) is
amended 
by 
striking 
‘‘$2,500,000,000’’ 
and 
inserting
‘‘$2,800,000,000’’.
SEC. 1008. CLARIFICATION OF FISCAL YEAR 2004 FUNDING LEVEL FOR
A NATIONAL INSTITUTE OF STANDARDS AND TECH-
NOLOGY ACCOUNT.
For the purposes of applying sections 204 and 605 of the Depart-
ments of Commerce, Justice, and State, the Judiciary, and Related
Agencies Appropriations Act, 2004 (division B of Public Law 108–
199) to matters in title II of such Act under the heading ‘‘NATIONAL
INSTITUTE OF STANDARDS AND TECHNOLOGY’’ (118 Stat. 69), in the
account under the heading ‘‘INDUSTRIAL TECHNOLOGY SERVICES’’,
the Secretary of Commerce shall make all determinations based
on the Industrial Technology Services funding level of $218,782,000
for reprogramming and transferring of funds for the Manufacturing
Extension Partnership program and may submit such a reprogram-
ming or transfer, as the case may be, to the appropriate committees
within 30 days after the date of the enactment of this Act.
SEC. 1009. NOTIFICATION OF FUND TRANSFERS FROM WORKING-CAP-
ITAL FUNDS.
Section 2208 of title 10, United States Code, is amended by
adding at the end the following new subsection:
‘‘(r) NOTIFICATION
OF TRANSFERS.—(1) Notwithstanding any
authority provided in this section to transfer funds, the transfer
of funds from a working-capital fund, including a transfer to another
working-capital fund, shall not be made under such authority unless
the Secretary of Defense submits, in advance, a notification of
the proposed transfer to the congressional defense committees in
accordance with customary procedures.
‘‘(2) The amount of a transfer covered by a notification under
paragraph (1) that is made in a fiscal year does not count toward
any limitation on the total amount of transfers that may be made
for that fiscal year under authority provided to the Secretary of
Defense in a law authorizing appropriations for a fiscal year for
military activities of the Department of Defense or a law making
appropriations for the Department of Defense.’’.
H. R. 4200—228
SEC. 1010. CHARGES FOR DEFENSE LOGISTICS INFORMATION SERV-
ICES MATERIALS.
(a) AUTHORITY.—Subchapter I of chapter 8 of title 10, United
States Code, is amended by adding at the end the following new
section:
‘‘§ 197. Defense Logistics Agency: fees charged for logistics
information
‘‘(a) AUTHORITY.—The Secretary of Defense may charge fees
for providing information in the Federal Logistics Information
System through Defense Logistics Information Services to a depart-
ment or agency of the executive branch outside the Department
of Defense, or to a State, a political subdivision of a State, or
any person.
‘‘(b) AMOUNT.—The fee or fees prescribed under subsection (a)
shall be such amount or amounts as the Secretary of Defense
determines appropriate for recovering the costs of providing
information as described in such subsection.
‘‘(c) RETENTION
OF FEES.—Fees collected under this section
shall be credited to the appropriation available for Defense Logistics
Information Services for the fiscal year in which collected, shall
be merged with other sums in such appropriation, and shall be
available for the same purposes and period as the appropriation
with which merged.
‘‘(d) DEFENSE LOGISTICS INFORMATION SERVICES DEFINED.—In
this section, the term ‘Defense Logistics Information Services’ means
the organization within the Defense Logistics Agency that is known
as Defense Logistics Information Services.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such subchapter is amended by adding at the end the
following new item:
‘‘197. Defense Logistics Agency: fees charged for logistics information.’’.
Subtitle B—Naval Vessels and Shipyards
SEC. 1011. AUTHORITY FOR AWARD OF CONTRACTS FOR SHIP DISMAN-
TLING ON NET-COST BASIS.
(a) IN GENERAL.—Chapter 633 of title 10, United States Code,
is amended by inserting after section 7305 the following new section:
‘‘§ 7305a. Vessels stricken from Naval Vessel Register: con-
tracts for dismantling on net-cost basis
‘‘(a) AUTHORITY FOR NET-COST BASIS CONTRACTS.—When the
Secretary of the Navy awards a contract for the dismantling of
a vessel stricken from the Naval Vessel Register, the Secretary
may award the contract on a net-cost basis.
‘‘(b) RETENTION
BY CONTRACTOR
OF PROCEEDS
OF SALE
OF
SCRAP AND REUSABLE ITEMS.—When the Secretary awards a con-
tract on a net-cost basis under subsection (a), the Secretary shall
provide in the contract that the contractor may retain the proceeds
from the sale of scrap and reusable items removed from the vessel
dismantled under the contract.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘net-cost basis’, with respect to a contract
for the dismantling of a vessel, means that the amount to
be paid to the contractor under the contract for dismantling
H. R. 4200—229
and for removal and disposal of hazardous waste material
is discounted by the offeror’s estimate of the value of scrap
and reusable items that the contractor will remove from the
vessel during performance of the contract.
‘‘(2) The term ‘scrap’ means personal property that has
no value except for its basic material content.
‘‘(3) The term ‘reusable item’ means a demilitarized compo-
nent or a removable portion of a vessel or equipment that
the Secretary of the Navy has identified as excess to the needs
of the Navy but which has potential resale value on the open
market.’’.
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating
to section 7305 the following new item:
‘‘7305a. Vessels stricken from Naval Vessel Register: contracts for dismantling on
net-cost basis.’’.
SEC. 1012. USE OF PROCEEDS FROM EXCHANGE AND SALE OF OBSO-
LETE NAVY SERVICE CRAFT AND BOATS.
(a) COSTS OF PREPARATION FOR DISPOSAL.—(1) Chapter 633
of title 10, United States Code, is amended by inserting after
section 7311 the following new section:
‘‘§ 7312. Service craft stricken from Naval Vessel Register;
obsolete boats: use of proceeds from exchange
or sale
‘‘(a) EXCHANGE OR SALE OF SIMILAR ITEMS.—When the Sec-
retary of the Navy sells an obsolete service craft or an obsolete
boat, or exchanges such a craft or boat in a transaction for which
a similar craft or boat is acquired, the Secretary may retain the
proceeds of the sale or the exchange allowance from the exchange,
as the case may be, and apply the proceeds of sale or the exchange
allowance for any of the following purposes:
‘‘(1) For payment, in whole or in part, for a similar service
craft or boat acquired as a replacement, as authorized by section
503 of title 40.
‘‘(2) For reimbursement, to the extent practicable, of the
appropriate accounts of the Navy for the full costs of prepara-
tion of such obsolete craft or boat for such sale or exchange.
‘‘(3) For deposit to the special account established under
subsection (b), to be available in accordance with that sub-
section.
‘‘(b) SPECIAL ACCOUNT.—Amounts retained under subsection
(a) that are not applied as provided in paragraph (1) or (2) of
that subsection shall be deposited into a special account. Amounts
in the account shall be available under subsection (c) without regard
to fiscal year limitation. Amounts in the account that the Secretary
of the Navy determines are not needed for the purpose stated
in subsection (c) shall be transferred at least annually to the Gen-
eral Fund of the Treasury.
‘‘(c) COSTS OF PREPARATION OF OBSOLETE SERVICE CRAFT AND
BOATS FOR FUTURE SALE OR EXCHANGE.—The Secretary may use
amounts in the account under subsection (b) for payment, in whole
or in part, for the full costs of preparation of obsolete service
craft and obsolete boats for future sale or exchange.
‘‘(d) COSTS OF PREPARATION FOR SALE OR EXCHANGE.—In this
section, the term ‘full costs of preparation’ means the full costs
H. R. 4200—230
(direct and indirect) incurred by the Navy in preparing an obsolete
service craft or an obsolete boat for exchange or sale, including
the cost of the following:
‘‘(1) Towing.
‘‘(2) Storage.
‘‘(3) Defueling.
‘‘(4) Removal and disposal of hazardous wastes.
‘‘(5) Environmental surveys to determine the presence of
regulated materials containing polychlorinated biphenyl (PCB)
and, if such materials are found, the removal and disposal
of such materials.
‘‘(6) Other costs related to such preparation.
‘‘(e) OBSOLETE SERVICE CRAFT.—For purposes of this section,
an obsolete service craft is a service craft that has been stricken
from the Naval Vessel Register.
‘‘(f) INAPPLICABILITY OF ADVERTISING REQUIREMENT.—Section
3709 of the Revised Statutes (41 U.S.C. 5) does not apply to sales
of service craft and boats described in subsection (a).
‘‘(g) REGULATIONS.—The Secretary of the Navy shall prescribe
regulations for the purposes of this section.’’.
(2) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 7311
the following new item:
‘‘7312. Service craft stricken from Naval Vessel Register; obsolete boats: use of pro-
ceeds from exchange or sale.’’.
(b) APPLICABILITY.—Section 7312 of title 10, United States
Code, as added by subsection (a), shall apply with respect to
amounts received on or after the date of the enactment of this
Act and to amounts received before the date of the enactment
of this Act and not obligated as of that date.
SEC. 1013. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
RECIPIENTS.
(a) TRANSFERS
BY GRANT.—The President is authorized to
transfer vessels to foreign recipients on a grant basis under section
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j), as
follows:
(1) CHILE.—To the Government of Chile, the SPRUANCE
class destroyer USS O’BANNON (DD–987).
(2) PORTUGAL.—To the Government of Portugal, the
OLIVER HAZARD PERRY class guided missile frigates
GEORGE PHILIP (FFG–12) and SIDES (FFG–14).
(b) TRANSFERS
BY
SALE.—The President is authorized to
transfer vessels to foreign recipients on a sale basis under section
21 of the Arms Export Control Act (22 U.S.C. 2761), as follows:
(1) CHILE.—To the Government of Chile, the SPRUANCE
class destroyer FLETCHER (DD–992).
(2) TAIWAN.—To the Taipei Economic and Cultural Rep-
resentative Office of the United States (which is the Taiwan
instrumentality designated pursuant to section 10(a) of the
Taiwan Relations Act (22 U.S.C. 3309(a))), the ANCHORAGE
class dock landing ship ANCHORAGE (LSD–36).
(c) GRANTS NOT COUNTED IN ANNUAL TOTAL OF TRANSFERRED
EXCESS DEFENSE ARTICLES.—The value of a vessel transferred to
another country on a grant basis pursuant to authority provided
by subsection (a) shall not be counted against the aggregate value
of excess defense articles transferred to countries in any fiscal