II 
Calendar No. 537
108TH CONGRESS 
2D SESSION 
H. R. 4200
IN THE SENATE OF THE UNITED STATES 
MAY 21, 2004
Received; read twice and placed on the calendar 
AN ACT 
To authorize appropriations for fiscal year 2005 for military 
activities of the Department of Defense, for military 
construction, and for defense activities of the Depart-
ment of Energy, to prescribe personnel strengths for 
such fiscal year for the Armed Forces, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 2005’’. 
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
CONTENTS. 
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows: 
(1) Division A—Department of Defense Au-
thorizations. 
(2) Division B—Military Construction Author-
izations. 
(3) Division C—Department of Energy Na-
tional Security Authorizations and Other Authoriza-
tions. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows:
Sec. 1. Short title; findings. 
Sec. 2. Organization of Act into divisions; table of contents. 
Sec. 3. Congressional defense committees.
DIVISION A—DEPARTMENT OF DEFENSE 
AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—Authorization of Appropriations 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense-wide activities.
Subtitle B—Program Matters 
Sec. 111. Multiyear procurement authority for the light-weight 155-millimeter 
howitzer program. 
Sec. 112. DDG–51 modernization program. 
Sec. 113. Repeal of authority for pilot program for flexible funding of cruiser 
conversions and overhauls. 
Sec. 114. Force protection for asymmetric threat environment. 
Sec. 115. Allocation of equipment authorized by this title to be made on basis 
of units deployed or preparing to deploy. 
Sec. 116. Multiyear procurement authority for KC–767 tanker aircraft acquisi-
tion program. 
Sec. 117. Other matters relating to KC–767 tanker aircraft acquisition pro-
gram. 
Sec. 118. Additional amount for patriot missile procurement. 
Sec. 119. Transfer of certain Army procurement funds. 
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND 
EVALUATION 
Subtitle A—Authorization of Appropriations 
Sec. 201. Authorization of appropriations. 
Sec. 202. Amount for defense science and technology. 
Sec. 203. Program increases. 
Subtitle B—Program Requirements, Restrictions, and 
Limitations 
Sec. 211. Future Combat Systems program strategy. 
Sec. 212. Collaborative program for research and development of vacuum elec-
tronics technologies. 
Sec. 213. Annual Comptroller General report on Joint Strike Fighter program. 
Sec. 214. Amounts for United States Joint Forces Command to be derived only 
from Defense-wide amounts. 
Sec. 215. Space Based Radar. 
Sec. 216. Mark–54 Torpedo Product Improvement Program. 
Subtitle C—Missile Defense 
Sec. 221. Fielding of ballistic missile defense capabilities. 
TITLE III—OPERATION AND MAINTENANCE 
Subtitle A—Authorization of Appropriations 
Sec. 301. Operation and Maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Other Department of Defense programs. 
Sec. 304. Reimbursement of members of the Armed Forces who purchased pro-
tective body armor during shortage of defense stocks of body 
armor. 
Sec. 305. Reduction in authorization for Air Force operations and maintenance. 
Sec. 306. Elimination of backlog in processing forensic evidence collection kits 
and acquisition of sufficient stocks of such kits. 
Subtitle B—Environmental Provisions
Sec. 311. Report regarding encroachment issues affecting Utah Test and 
Training Range, Utah. 
Subtitle C—Workplace and Depot Issues 
Sec. 321. Simplification of annual reporting requirements concerning funds ex-
pended for depot maintenance and repair workloads. 
Sec. 322. Repeal of annual reporting requirement concerning management of 
depot employees. 
Sec. 323. Public-private competition for work performed by civilian employees 
of Department of Defense. 
Sec. 324. Public-private competition pilot program. 
Sec. 325. Sense of Congress on equitable legal standing for civilian employees. 
Sec. 326. Competitive sourcing reporting requirement. 
Subtitle D—Information Technology 
Sec. 331. Preparation of Department of Defense plan for transition to Internet 
Protocol version 6. 
Sec. 332. Defense business enterprise architecture, system accountability, and 
conditions for obligation of funds for defense business system 
modernization. 
Sec. 333. Establishment of joint program office to improve interoperability of 
battlefield management command and control systems. 
Subtitle E—Readiness Reporting Requirements 
Sec. 341. Annual report on Department of Defense operation and financial sup-
port for military museums. 
Sec. 342. Report on Department of Defense programs for prepositioning of ma-
terial and equipment. 
Subtitle F—Other Matters 
Sec. 351. Extension of Arsenal Support Program Initiative. 
Sec. 352. Limitation on preparation or implementation of Mid-Range Financial 
Improvement Plan. 
Sec. 353. Procurement of follow-on contracts for the operation of five Cham-
pion-class T-5 tank vessels. 
Sec. 354. Sense of Congress on America’s National World War I Museum. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS 
Subtitle A—Active Forces 
Sec. 401. End strengths for active forces. 
Sec. 402. Revision in permanent active duty end strength minimum levels. 
Sec. 403. Maximum number of reserve personnel authorized to be on active 
duty for operational support. 
Sec. 404. Accounting and management of reserve component personnel per-
forming active duty or full-time National Guard duty for oper-
ational support. 
Subtitle B—Reserve Forces 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for Reserves on active duty in support of the reserves. 
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2005 limitation on number of non-dual status technicians. 
Subtitle C—Authorizations of Appropriations 
Sec. 421. Military personnel. 
Sec. 422. Armed Forces Retirement Home. 
TITLE V—MILITARY PERSONNEL POLICY 
Subtitle A—General and Flag Officer Matters 
Sec. 501. Length of service for service chiefs. 
Sec. 502. Repeal of requirement that Deputy Chiefs and Assistant Chiefs of 
Naval Operations be selected from officers in the line of the 
Navy. 
Sec. 503. Increase in age limit for deferral of mandatory retirement for up to 
10 senior general and flag officers. 
Sec. 504. Increased flexibility for voluntary retirement for military officers. 
Sec. 505. Repeal of requirement that no more than 50 percent of active duty 
general and flag officers be in grades above brigadier general 
and rear admiral (lower half). 
Sec. 506. Revision to terms for assistants to the Chairman of the Joint Chiefs 
of Staff for National Guard and Reserve matters. 
Sec. 507. Succession for position of Chief, National Guard Bureau. 
Sec. 508. Title of Vice Chief of the National Guard Bureau changed to Director 
of the Joint Staff of the National Guard Bureau. 
Sec. 509. Two-year extension of authority to waive requirement that Reserve 
chiefs and National Guard Directors have significant joint duty 
experience. 
Sec. 510. Repeal of distribution requirements for Naval Reserve flag officers. 
Subtitle B—Other Officer Personnel Policy Matters 
Sec. 511. Transition of active-duty list officer force to all regular status. 
Sec. 512. Mandatory retention on active duty to qualify for retirement pay. 
Sec. 513. Distribution in grade of Marine Corps Reserve officers in an active 
status in grades below brigadier general 
Sec. 514. Tuition assistance for officers. 
Subtitle C—Reserve Component Matters 
Sec. 521. Revision to statutory purpose of the reserve components. 
Sec. 522. Improved access to reserve component members for enhanced train-
ing. 
Sec. 523. Status under disability retirement system for reserve members re-
leased from active duty due to inability to perform within 30 
days of call to active duty. 
Sec. 524. Federal civil service military leave for Reserve and National Guard 
civilian technicians. 
Sec. 525. Expanded educational assistance authority for officers commissioned 
through ROTC program at military junior colleges. 
Sec. 526. Effect of appointment or commission as officer on eligibility for Se-
lected Reserve education loan repayment program for enlisted 
members. 
Sec. 527. Number of Starbase academies in a State. 
Sec. 528. Comptroller General assessment of integration of active and reserve 
components of the Navy.
Sec. 529. Operational activities conducted by the National Guard under author-
ity of title 32. 
Sec. 530. Army program for assignment of active component advisers to units 
of the Selected Reserve. 
Subtitle D—Joint Officer Management 
Sec. 531. Strategic plan to link joint officer development to overall missions 
and goals of Department of Defense. 
Sec. 532. Joint requirements for promotion to flag or general officer grade. 
Sec. 533. Clarification of tours of duty qualifying as a joint duty assignment. 
Sec. 534. Reserve joint special officer qualification requirements. 
Subtitle E—Professional Military Education 
Sec. 541. Improvement to professional military education in the Department of 
Defense. 
Sec. 542. Ribbons to recognize completion of joint professional military edu-
cation. 
Sec. 543. Increase in number of private-sector civilians who may be enrolled for 
instruction at National Defense University. 
Sec. 544. Requirement for completion of Phase I joint professional military 
education before promotion to colonel or Navy captain. 
Subtitle F—Other Education and Training Matters 
Sec. 551. College First delayed enlistment program. 
Sec. 552. Standardization of authority to confer degrees on graduates of Com-
munity College of the Air Force with authority for other 
schools of Air University. 
Sec. 553. Change in titles of heads of the Naval Postgraduate School. 
Sec. 554. Increase from two years to three years in period for which edu-
cational leave of absence may be authorized. 
Sec. 555. Correction to disparate treatment of disabilities sustained during ac-
cession training. 
Sec. 556. Prayer at military service academy activities. 
Sec. 557. Revision to conditions on service of officers as service academy super-
intendents. 
Sec. 558. Codification of prohibition on imposition of certain charges and fees 
at the service academies. 
Sec. 559. Qualifications of the dean of the faculty of United States Air Force 
Academy. 
Sec. 560A. Board of visitors of United States Air Force Academy. 
Sec. 560B. Establishment of college financial assistance program for District of 
Columbia National Guard. 
Subtitle G—Medals and Decorations and Special Promotions 
and Appointments 
Sec. 561. Separate military campaign medals to recognize service in Operation 
Enduring Freedom and service in Operation Iraqi Freedom. 
Sec. 562. Eligibility of all uniformed services personnel for National Defense 
Service Medal. 
Sec. 563. Authority to appoint Brigadier General Charles E. Yeager, United 
States Air Force (retired), to the grade of major general on the 
retired list.
Sec. 564. Posthumous commission of William Mitchell in the grade of major 
general in the Army. 
Sec. 565. Requirements for award of combat infantryman badge and combat 
medical badge with respect to service in Korea after July 28, 
1953. 
Sec. 566. Army combat recognition ribbon. 
Subtitle H—Military Justice Matters 
Sec. 571. Review on how sexual offenses are covered by Uniform Code of Mili-
tary Justice. 
Sec. 572. Service time not lost when confined in connection with trial if con-
finement excused as unavoidable. 
Sec. 573. Clarification of authority of military legal assistance counsel to pro-
vide military legal assistance without regard to licensing re-
quirements. 
Subtitle I—Administrative and Management Matters 
Sec. 581. Three-year extension of limitation on reductions of personnel of agen-
cies responsible for review and correction of military records. 
Sec. 582. Staffing and funding for Defense Prisoner of War/Missing Personnel 
office (DPMO). 
Sec. 583. Permanent ID cards for retiree dependents age 70 and older. 
Sec. 584. Authority to provide civilian clothing to members traveling in connec-
tion with medical evacuation. 
Sec. 585. Authority to accept donation of frequent traveler miles, credits, and 
tickets to facilitate rest and recuperation travel of deployed 
members of the Armed Forces and their families. 
Sec. 586. Limitation on amendment or cancellation of Department of Defense 
directive relating to reasonable access to military installations 
for certain personal commercial solicitation. 
Sec. 587. Annual identification of reasons for discharges from the Armed 
Forces during preceding fiscal year. 
Sec. 588. Authority for Federal recognition of National Guard commissioned 
officers appointed from former Coast Guard personnel. 
Sec. 589. Study of blended wing concept for the Air Force. 
Sec. 590. Continuation of impact aid assistance on behalf of dependents of cer-
tain members despite change in status of member. 
Subtitle J—Other Matters 
Sec. 591. Employment preferences for spouses of certain Department of De-
fense civilian employees subject to relocation agreements. 
Sec. 592. Repeal of requirement to conduct electronic voting demonstration 
project for the Federal election to be held in November 2004. 
Sec. 593. Examination of sexual assault in the Armed Forces by the defense 
task force established to examine sexual harassment and vio-
lence at the military service academies. 
Sec. 594. Renewal of pilot program for treating GED and home school diploma 
recipients as high school graduates for determinations of eligi-
bility for enlistment. 
Sec. 595. Assistance to local educational agencies that benefit dependents of 
members of the Armed Forces and Department of Defense ci-
vilian employees.
Sec. 596. Senior Reserve Officer Training Corps and recruiter access at institu-
tions of higher education. 
Sec. 597. Reports on transformation milestones. 
Sec. 598. Department of Defense policy and procedures on prevention and re-
sponse to sexual assaults involving members of the Armed 
Forces. 
Sec. 599. Authority for removal of remains of certain persons interred in 
United States military cemeteries overseas. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL 
BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Increase in basic pay for fiscal year 2005. 
Sec. 602. Authority to provide family separation basic allowance for housing. 
Sec. 603. Geographic basis for basic allowance for housing during short 
changes of station for professional military education or train-
ing. 
Sec. 604. Immediate lump-sum reimbursement for unusual nonrecurring ex-
penses incurred by members serving outside continental United 
States. 
Sec. 605. Income replacement payments for Reserves experiencing extended and 
frequent mobilization for active duty service. 
Sec. 606. Authority for certain members deployed in combat zones to receive 
limited advances on their future basic pay. 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. One-year extension of bonus and special pay authorities. 
Sec. 612. Reduction in required service commitment to receive accession bonus 
for registered nurses. 
Sec. 613. Increase in maximum monthly rate authorized for hardship duty pay. 
Sec. 614. Termination of assignment incentive pay for members placed on ter-
minal leave. 
Sec. 615. Consolidation of reenlistment and enlistment bonus authorities for 
regular and reserve components. 
Sec. 616. Revision of authority to provide foreign language proficiency pay. 
Sec. 617. Eligibility of reserve component members for critical skills retention 
bonus and expansion of authority to provide bonus. 
Sec. 618. Eligibility of new reserve component officers for accession or affili-
ation bonus for officers in critical skills. 
Sec. 619. Eligibility of reserve component members for incentive bonus for con-
version to military occupational specialty to ease personnel 
shortage. 
Sec. 620. Availability of hazardous duty incentive pay for military firefighters. 
Subtitle C—Travel and Transportation Allowances 
Sec. 631. Expansion of travel and transportation allowances to assist survivors 
of a deceased member to attend burial ceremony of the mem-
ber. 
Sec. 632. Transportation of family members incident to the serious illness or 
injury of members of the uniformed services. 
Sec. 633. Reimbursement of members for certain lodging costs incurred in con-
nection with student dependent travel.
Subtitle D—Retired Pay and Survivor Benefits 
Sec. 641. Computation of benefits under Survivor Benefit Plan for surviving 
spouses over age 62. 
Sec. 642. Open enrollment period for Survivor Benefit Plan commencing Octo-
ber 1, 2005. 
Sec. 643. Source of funds for Survivor Benefit Plan annuities for Department 
of Defense beneficiaries over age 62. 
Subtitle E—Commissary and Nonappropriated Fund 
Instrumentality Benefits 
Sec. 651. Consolidation and reorganization of legislative provisions regarding 
defense commissary system and exchanges and other morale, 
welfare, and recreation activities. 
Sec. 652. Consistent State treatment of Department of Defense Non-
appropriated Fund Health Benefits Program. 
Sec. 653. Cooperation and assistance for qualified scouting organizations serv-
ing dependents of members of the Armed Forces and civilian 
employees overseas. 
Subtitle F—Other Matters 
Sec. 661. Repeal of requirement that members entitled to basic allowance for 
subsistence pay subsistence charges while hospitalized. 
Sec. 662. Clarification of education loans qualifying for education loan repay-
ment program for reserve component health professions offi-
cers. 
Sec. 663. Survey and analysis of effect of extended and frequent mobilization 
of Reservists for active duty service on Reservist income. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—Enhanced Benefits for Reserves 
Sec. 701. Demonstration project for TRICARE coverage for Ready Reserve 
members. 
Sec. 702. Comptroller General report on the cost and feasibility of providing 
private health insurance stipends for members of the Ready 
Reserves. 
Sec. 703. Improvement of medical services for activated members of the Ready 
Reserve and their families. 
Sec. 704. Modification of waiver of certain deductibles under TRICARE pro-
gram. 
Sec. 705. Authority for payment by United States of additional amounts billed 
by health care providers to activated Reserve members. 
Sec. 706. Extension of transitional health care benefits after separation from 
active duty. 
Subtitle B—Other Benefits Improvements 
Sec. 711. Coverage of certain young children under TRICARE dental program. 
Sec. 712. Comptroller General report on provision of health and support serv-
ices for exceptional family member program enrollees. 
Sec. 713. Exceptional eligibility for TRICARE prime remote. 
Sec. 714. Transition to home health care benefit under sub-acute care program.
Sec. 715. Requirement relating to prescription drug benefits for medicare-eligi-
ble enrollees under defense health care plans. 
Sec. 716. Professional accreditation of military dentists. 
Sec. 717. Addition of certain unremarried former spouses to persons eligible for 
dental insurance plan of retirees of the uniformed services. 
Sec. 718. Waiver of collection of payments due from certain persons unaware 
of loss of CHAMPUS eligibility. 
Subtitle C—Planning, Programming, and Management 
Sec. 721. Pilot program for transformation of health care delivery. 
Sec. 722. Study of provision of travel reimbursement to hospitals for certain 
military disability retirees. 
Sec. 723. Study of mental health services. 
TITLE VIII—ACQUISITION POLICY, ACQUISITION 
MANAGEMENT, AND RELATED MATTERS 
Subtitle A—Amendments to General Contracting Authorities, 
Procedures, and Limitations 
Sec. 801. Rapid acquisition authority to respond to combat emergencies. 
Sec. 802. Defense acquisition workforce changes. 
Sec. 803. Limitation on task and delivery order contracts. 
Sec. 804. Funding for contract cancellation ceilings for certain multiyear pro-
curement contracts. 
Sec. 805. Increased threshold for requiring contractors to provide specified em-
ployee information to cooperative agreement holders. 
Sec. 806. Extension of authority for use of simplified acquisition procedures. 
Sec. 807. Authority to adjust acquisition-related dollar thresholds for inflation. 
Subtitle B—United States Defense Industrial Base Provisions 
Sec. 811. Defense trade reciprocity. 
Sec. 812. Amendments to domestic source requirements. 
Sec. 813. Three-year extension of restriction on acquisition of polyacrylonitrile 
(PAN) carbon fiber from foreign sources. 
Sec. 814. Grant program for defense contractors to implement strategies to 
avoid outsourcing of jobs. 
Sec. 815. Preference for domestic freight forwarding services. 
Subtitle C—Other Acquisition Matters 
Sec. 821. Sustainment and modernization plans for existing systems while re-
placement systems are under development. 
Sec. 822. Review and demonstration project relating to contractor employees.
Sec. 823. Defense acquisition workforce limitation and reports. 
Sec. 824. Provision of information to Congress to enhance transparency in con-
tracting. 
Sec. 825. Requirement to treat sureties in same manner as financing institu-
tions when contractors default. 
Sec. 826. Provisions relating to creation of jobs in the United States by defense 
contractors. 
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION 
AND MANAGEMENT
Sec. 901. Change in title of Secretary of the Navy to Secretary of the Navy 
and Marine Corps. 
Sec. 902. Transfer of Center for the Study of Chinese Military Affairs from 
National Defense University to United States-China Economic 
and Security Review Commission. 
Sec. 903. Transfer to Secretary of the Army of responsibility for Assembled 
Chemical Weapons Alternatives Program. 
Sec. 904. Modification of obligated service requirements under National Secu-
rity Education Program. 
Sec. 905. Change of membership of certain councils. 
Sec. 906. Actions to prevent the abuse of detainees. 
Sec. 907. Responses to congressional inquiries. 
Sec. 908. Secretary of Defense guidance on identification and internal trans-
mission of critical information. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. Transfer authority. 
Sec. 1002. Budget justification documents for operation and maintenance. 
Sec. 1003. Retention of fees from intellectual property licenses. 
Sec. 1004. Authority to waive claims of the United States when amounts recov-
erable are less than costs of collection. 
Sec. 1005. Repeal of funding restrictions concerning development of medical 
countermeasures against biological warfare threats. 
Sec. 1006. Report on budgeting for exchange rates for foreign currency fluctua-
tions. 
Sec. 1007. Fiscal year 2004 transfer authority. 
Sec. 1008. Report on amounts remitted and reimbursed during fiscal year 2004 
under section 1007 of Public Law 108–136. 
Subtitle B—Naval Vessels and Shipyards 
Sec. 1011. Authority for award of contracts for ship dismantling on net-cost 
basis. 
Sec. 1012. Independent study to assess cost effectiveness of the Navy ship con-
struction program. 
Sec. 1013. Authority to transfer specified former naval vessels to certain for-
eign countries. 
Sec. 1014. Limitation on leasing of foreign-built vessels. 
Subtitle C—Sunken Military Craft 
Sec. 1021. Preservation of title to sunken military craft and associated con-
tents. 
Sec. 1022. Prohibitions. 
Sec. 1023. Permits. 
Sec. 1024. Penalties. 
Sec. 1025. Liability for damages. 
Sec. 1026. Relationship to other laws. 
Sec. 1027. Encouragement of agreements with foreign countries. 
Sec. 1028. Definitions. 
Subtitle D—Counter-Drug Activities
Sec. 1031. Continuation of authority to use Department of Defense funds for 
unified counterdrug and counterterrorism campaign in Colom-
bia. 
Sec. 1032. Limitation on number of United States military personnel in Colom-
bia. 
Subtitle E—Reports 
Sec. 1041. Study of continued requirement for two-crew manning for ballistic 
missile submarines. 
Sec. 1042. Study of effect on defense industrial base of elimination of United 
States domestic firearms manufacturing base. 
Sec. 1043. Study of extent and quality of training provided to members of the 
Armed Services to prepare for post-conflict operations. 
Subtitle F—Security Matters 
Sec. 1051. Use of National Driver Register for personnel security investigations 
and determinations. 
Sec. 1052. Standards for disqualification from eligibility for Department of De-
fense security clearance. 
Subtitle G—Transportation-Related Matters 
Sec. 1061. Use of military aircraft to transport mail to and from overseas loca-
tions. 
Sec. 1062. Reorganization and clarification of certain provisions relating to 
control and supervision of transportation within the Depart-
ment of Defense. 
Sec. 1063. Determination of whether private air carriers are controlled by 
United States citizens for purposes of eligibility for Govern-
ment contracts for transportation of passengers or supplies. 
Sec. 1064. Evaluation of whether to prohibit certain offers for transportation 
of security-sensitive cargo. 
Sec. 1065. Phased implementation of new program for transporting household 
goods of members of the Armed Forces. 
Subtitle H—Other Matters 
Sec. 1071. Two-year extension of authority of the Secretary of Defense to en-
gage in commercial activities as security for intelligence collec-
tion activities abroad. 
Sec. 1072. Assistance for study of feasibility of biennial international air trade 
show in the United States and for initial implementation. 
Sec. 1073. Technical and clerical amendments. 
Sec. 1074. Commission on the long-term implementation of the new strategic 
posture of the United States. 
Sec. 1075. Liability protection for certain Department of Defense volunteers 
working in the maritime environment. 
Sec. 1076. Transfer of historic F3A-1 Brewster Corsair aircraft. 
Sec. 1077. Assignment of members to assist Bureau of Border Security and 
Bureau of Citizenship and Immigration Services of the Depart-
ment of Homeland Security. 
Sec. 1078. Authority to accept certain voluntary services. 
Sec. 1079. Transfer of excess department of defense personal property suitable 
for firefighting use to support Federal excess personal property 
program.
Sec. 1080. Expansion of Department of Defense excess personal property dis-
posal program to include health agencies. 
Sec. 1081. Placement of memorial in Arlington National Cemetery honoring 
noncitizens killed in the line of duty while serving in the Armed 
Forces of the United States. 
TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN 
PERSONNEL 
Sec. 1101. Payment of Federal employee health benefit premiums for mobilized 
Federal employees. 
Sec. 1102. Foreign language proficiency pay. 
Sec. 1103. Pay parity for civilian intelligence personnel. 
Sec. 1104. Pay parity for senior executives in nonappropriated fund instrumen-
talities. 
Sec. 1105. Prohibition of unauthorized wearing or use of civilian medals or 
decorations. 
TITLE XII—MATTERS RELATING TO OTHER NATIONS 
Subtitle A—Matters Relating to Iraq, Afghanistan, and Global 
War on Terrorism 
Sec. 1201. Documentation of conditions in Iraq under former dictatorial gov-
ernment as part of transition to post-dictatorial government. 
Sec. 1202. Support of military operations to combat terrorism. 
Sec. 1203. Commanders’ Emergency Response Program. 
Sec. 1204. Status of Iraqi security forces. 
Sec. 1205. Guidance and report required on contractors supporting deployed 
forces in Iraq. 
Sec. 1206. Findings and sense of Congress concerning Army Specialist Joseph 
Darby. 
Sec. 1207. Sense of Congress concerning the abuse of persons in custody in 
Iraq. 
Sec. 1208. Sense of Congress regarding limitation on use of funds for the re-
construction of Iraq. 
Sec. 1209. Sense of Congress on destruction of Abu Ghraib prison in Iraq. 
Subtitle B—Other Matters 
Sec. 1211. Assignment of allied naval personnel to submarine safety programs. 
Sec. 1212. Expansion of entities of the People’s Republic of China subject to 
certain presidential authorities when operating in the United 
States. 
Sec. 1213. Report by President on Global Peace Operations Initiative. 
Sec. 1214. Procurement sanctions against foreign persons that transfer certain 
defense articles and services to the People’s Republic of China. 
Sec. 1215. Military educational exchanges between senior officers and officials 
of the United States and Taiwan. 
TITLE XIII—COOPERATIVE THREAT REDUCTION WITH 
STATES OF THE FORMER SOVIET UNION 
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds. 
Sec. 1302. Funding allocations. 
Sec. 1303. Temporary authority to waive limitation on funding for chemical 
weapons destruction facility in Russia.
TITLE XIV—EXPORT CONTROL AND 
COUNTERPROLIFERATION MATTERS 
Subtitle A—Export Controls 
Sec. 1401. Definitions under Arms Export Control Act. 
Sec. 1402. Exemption from licensing requirements for export of significant 
military equipment. 
Sec. 1403. Cooperative projects with friendly foreign countries. 
Sec. 1404. Licensing requirement for export of militarily critical technologies. 
Sec. 1405. Control of exports of United States weapons technology to the Peo-
ple’s Republic of China. 
Sec. 1406. Strengthening international export controls. 
Subtitle B—Counterproliferation Matters 
Sec. 1411. Defense international counterproliferation programs. 
Sec. 1412. Defense counterproliferation fellowship program. 
Subtitle C—Initiatives Relating to Countries of Former Soviet 
Union 
Sec. 1421. Silk Road initiative. 
Sec. 1422. Teller-Kurchatov nonproliferation fellowships. 
Sec. 1423. Collaboration to reduce the risks of a launch of Russian nuclear 
weapons. 
TITLE XV—AUTHORIZATION FOR INCREASED COSTS DUE 
TO OPERATION IRAQI FREEDOM AND OPERATION EN-
DURING FREEDOM 
Sec. 1501. Purpose. 
Subtitle A—Authorization of Appropriations 
Sec. 1511. Army procurement. 
Sec. 1512. Navy and Marine Corps procurement. 
Sec. 1513. Air Force procurement. 
Sec. 1514. Defense-wide activities procurement. 
Sec. 1515. Operation and maintenance. 
Sec. 1516. Defense health program. 
Sec. 1517. Military personnel. 
Sec. 1518. Treatment as additional authorizations. 
Sec. 1519. Transfer authority. 
Sec. 1520. Designation of emergency authorizations. 
Subtitle B—Personnel Provisions 
Sec. 1531. Three-year increase in active Army strength levels. 
Sec. 1532. Three-year increase in active Marine Corps strength levels. 
Sec. 1533. Extension of increased rates for imminent danger pay and family 
separation allowance. 
Subtitle C—Financial Management Matters 
Sec. 1541. Revised funding methodology for military retiree health care bene-
fits. 
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title. 
TITLE XXI—ARMY 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Authorization of appropriations, Army. 
Sec. 2105. Modification of authority to carry out certain fiscal year 2004 
projects. 
Sec. 2106. Modification of authority to carry out certain fiscal year 2003 
project. 
TITLE XXII—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Authorization of appropriations, Navy. 
TITLE XXIII—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects. 
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Authorization of appropriations, Air Force. 
TITLE XXIV—DEFENSE AGENCIES 
Sec. 2401. Authorized Defense Agencies construction and land acquisition 
projects. 
Sec. 2402. Improvements to military family housing units. 
Sec. 2403. Energy conservation projects. 
Sec. 2404. Authorization of appropriations, Defense Agencies. 
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION 
SECURITY INVESTMENT PROGRAM 
Sec. 2501. Authorized NATO construction and land acquisition projects. 
Sec. 2502. Authorization of appropriations, NATO. 
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES 
Sec. 2601. Authorized Guard and Reserve construction and land acquisition 
projects. 
TITLE XXVII—EXPIRATION AND EXTENSION OF 
AUTHORIZATIONS 
Sec. 2701. Expiration of authorizations and amounts required to be specified 
by law. 
Sec. 2702. Extension of authorizations of certain fiscal year 2002 projects. 
Sec. 2703. Extension and renewal of authorizations of certain fiscal year 2001 
projects. 
Sec. 2704. Effective date. 
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military 
Family Housing Changes 
Sec. 2801. Increase in certain thresholds for carrying out unspecified minor 
military construction projects. 
Sec. 2802. Assessment of vulnerability of military installations to terrorist at-
tack and annual report on military construction requirements 
related to antiterrorism and force protection. 
Sec. 2803. Change in threshold for congressional notification regarding use of 
operation and maintenance funds for facility repair. 
Sec. 2804. Reporting requirements regarding military family housing require-
ments for general officers and flag officers. 
Sec. 2805. Congressional notification of deviations from authorized cost vari-
ations for military construction projects and military family 
housing projects. 
Sec. 2806. Repeal of limitation on use of alternative authority for acquisition 
and improvement of military family housing. 
Sec. 2807. Temporary authority to accelerate design efforts for military con-
struction projects carried out using design-build selection pro-
cedures. 
Sec. 2808. Exchange or sale of reserve component facilities to acquire replace-
ment facilities. 
Sec. 2809. One-year extension of temporary, limited authority to use operation 
and maintenance funds for construction projects outside the 
United States. 
Sec. 2810. Consideration of combination of military medical treatment facilities 
and health care facilities of Department of Veterans Affairs. 
Subtitle B—Real Property and Facilities Administration 
Sec. 2811. Increase in certain thresholds for reporting real property trans-
actions. 
Sec. 2812. Reorganization of existing administrative provisions relating to real 
property transactions. 
Sec. 2813. Treatment of money rentals from golf course at Rock Island Arse-
nal, Illinois. 
Sec. 2814. Number of contracts authorized department-wide under demonstra-
tion program on reduction in long-term facility maintenance 
costs. 
Sec. 2815. Repeal of Commission on Review of Overseas Military Facility 
Structure of the United States. 
Sec. 2816. Designation of Airmen Leadership School at Luke Air Force Base, 
Arizona, in honor of John J. Rhodes, a former minority leader 
of the House of Representatives. 
Sec. 2817. Elimination of reversionary interests clouding United States title to 
property used as Navy homeports. 
Sec. 2818. Report on feasibility of veterans memorial at Marine Corps Air Sta-
tion, El Toro, California. 
Subtitle C—Base Closure and Realignment 
Sec. 2821. Two-year postponement of 2005 base closure and realignment round 
and submission of reports regarding future infrastructure re-
quirements for the armed forces.
Sec. 2822. Establishment of specific deadline for submission of revisions to 
force-structure plan and infrastructure inventory for next base 
closure round. 
Sec. 2823. Specification of final selection criteria for next base closure round. 
Sec. 2824. Requirement for unanimous vote of Defense Base Closure and Re-
alignment Commission to add to or otherwise expand closure 
and realignment recommendations made by Secretary of De-
fense. 
Sec. 2825. Adherence to certain authorities on preservation of military depot 
capabilities during any subsequent round of base closures and 
realignments. 
Subtitle D—Land Conveyances 
PART I—ARMY CONVEYANCES 
Sec. 2831. Transfer of administrative jurisdiction, Defense Supply Center, Co-
lumbus, Ohio. 
Sec. 2832. Land conveyance, Fort Hood, Texas. 
Sec. 2833. Land conveyance, Army National Guard Facility, Seattle, Wash-
ington. 
Sec. 2834. Modification of land exchange and consolidation, Fort Lewis, Wash-
ington. 
PART II—NAVY CONVEYANCES 
Sec. 2841. Transfer of jurisdiction, Nebraska Avenue Naval Complex, District 
of Columbia. 
Sec. 2842. Land conveyance, Navy property, former Fort Sheridan, Illinois. 
Sec. 2843. Land exchange, Naval Air Station, Patuxent River, Maryland. 
PART III—AIR FORCE CONVEYANCES 
Sec. 2851. Land exchange, Maxwell Air Force Base, Alabama. 
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS 
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL 
SECURITY PROGRAMS 
Subtitle A—National Security Programs Authorizations 
Sec. 3101. National Nuclear Security Administration. 
Sec. 3102. Defense environmental management. 
Sec. 3103. Other defense activities. 
Sec. 3104. Defense nuclear waste disposal. 
Subtitle B—Program Authorizations, Restrictions, and 
Limitations 
Sec. 3111. Extension of authority for appointment of certain scientific, engi-
neering, and technical personnel. 
Sec. 3112. Requirements for baseline of projects under Facilities and Infra-
structure Recapitalization Program. 
Subtitle C—Other Matters
Sec. 3131. Transfers and reprogrammings of National Nuclear Security Admin-
istration funds. 
Sec. 3132. National Academy of Sciences study on management by Department 
of Energy of high-level radioactive waste. 
Sec. 3133. Contract to review Waste Isolation Pilot Plant, New Mexico. 
Sec. 3134. Additional amount for defense site acceleration completion. 
Sec. 3135. Improvements to energy employees occupational illness compensa-
tion program. 
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY 
BOARD 
Sec. 3201. Authorization. 
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE 
Sec. 3301. Authorized uses of National Defense Stockpile funds. 
Sec. 3302. Relaxation of quantity restrictions on disposal of manganese ferro 
in National Defense Stockpile. 
Sec. 3303. Revision of earlier authority to dispose of certain materials in Na-
tional Defense Stockpile. 
TITLE XXXIV—NAVAL PETROLEUM RESERVES 
Sec. 3401. Authorization of appropriations. 
TITLE XXXV—MARITIME ADMINISTRATION 
Sec. 3501. Authorization of appropriations for Maritime Administration. 
Sec. 3502. Extension of authority to provide war risk insurance for merchant 
marine vessels. 
TITLE XXXVI—SMALL BUSINESS ADMINISTRATION 
Sec. 3601. Addition of landscaping and pest control services to list of des-
ignated industry groups participating in the small business 
competitiveness demonstration program.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES. 
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ has the meaning given that term in sec-
tion 101(a)(16) of title 10, United States Code.
DIVISION A—DEPARTMENT OF 
DEFENSE AUTHORIZATIONS 
TITLE I—PROCUREMENT 
Subtitle A—Authorization of 
Appropriations 
SEC. 101. ARMY. 
Funds are hereby authorized to be appropriated for 
fiscal year 2005 for procurement for the Army as follows: 
(1) For aircraft, $2,805,941,000. 
(2) For missiles, $1,414,321,000. 
(3) For weapons and tracked combat vehicles, 
$1,739,695,000. 
(4) For ammunition, $1,729,402,000. 
(5) For other procurement, $4,313,640,000. 
SEC. 102. NAVY AND MARINE CORPS. 
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 2005 for procurement for the Navy 
as follows: 
(1) For aircraft, $8,912,667,000. 
(2) For weapons, including missiles and tor-
pedoes, $2,253,454,000. 
(3) For ammunition, $870,840,000. 
(4) 
For 
shipbuilding 
and 
conversion, 
$10,120,027,000. 
(5) For other procurement, $4,876,725,000.
(b) MARINE CORPS.—Funds are hereby authorized to 
be appropriated for fiscal year 2005 for procurement for 
the Marine Corps in the amount of $1,315,103,000. 
SEC. 103. AIR FORCE. 
Funds are hereby authorized to be appropriated for 
fiscal year 2005 for procurement for the Air Force as fol-
lows: 
(1) For aircraft, $13,649,174,000. 
(2) For ammunition, $1,396,457,000. 
(3) For missiles, $4,638,313,000. 
(4) For other procurement, $13,229,257,000. 
SEC. 104. DEFENSE-WIDE ACTIVITIES. 
Funds are hereby authorized to be appropriated for 
fiscal year 2005 for Defense-wide procurement in the 
amount of $2,950,702,000.
Subtitle B—Program Matters 
SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR THE 
LIGHT-WEIGHT 155–MILLIMETER HOWITZER 
PROGRAM. 
The Secretary of the Army and the Secretary of the 
Navy may, in accordance with section 2306b of title 10, 
United States Code, jointly enter into a multiyear con-
tract, beginning with the fiscal year 2005 program year, 
for procurement of the light-weight 155-millimeter how-
itzer.
SEC. 112. DDG–51 MODERNIZATION PROGRAM. 
(a) 
ACCELERATION
OF
MODERNIZATION
PRO-
GRAM.—The Secretary of the Navy shall accelerate the 
program for in-service modernization of the DDG–51 class 
of destroyers. As part of that modernization program, the 
Secretary shall include additional emphasis on deter-
mining a means to reduce crew size from approximately 
300 to about 200. 
(b) REPORT.—Not later than March 31, 2005, the 
Secretary of the Navy shall submit to the congressional 
defense committees a report on the steps taken as of that 
date to carry out subsection (a).
SEC. 113. REPEAL OF AUTHORITY FOR PILOT PROGRAM 
FOR FLEXIBLE FUNDING OF CRUISER CON-
VERSIONS AND OVERHAULS. 
Section 126 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1410; 10 U.S.C. 7291 note) is repealed. 
SEC. 114. FORCE PROTECTION FOR ASYMMETRIC THREAT 
ENVIRONMENT. 
(a) REQUIREMENT FOR ASYMMETRIC THREAT AS-
SESSMENT.—(1) The Secretary of Defense shall require 
the Secretary of each military department to perform an 
assessment of the survivability and suitability against 
asymmetrical threats of each of the following military sys-
tems under the jurisdiction of that Secretary:
(A) Each manned ground system or war-fighter 
survivability system that may be required to deploy 
in an asymmetrical threat environment. 
(B) Each manned airborne system that may be 
required to deploy in an asymmetrical threat envi-
ronment. 
(2) For each system covered by paragraph (1), the 
Secretary concerned shall establish the key performance 
parameters for survivability and suitability against asym-
metric threats. 
(3) The assessments under paragraph (1) shall be 
completed not later than July 1, 2005. 
(4) The Secretary of each military department shall 
review annually the assessments under paragraph (1) con-
ducted by that Secretary to ensure that the assessments 
remains relevant to the asymmetric threat environment. 
(b) REQUIREMENT FOR FORCE PROTECTION.—(1) 
The Secretary of Defense shall require the Secretary of 
each military department, for each system covered by sub-
section (a)(1) under that Secretary’s jurisdiction, either 
to—
(A) take each of the force protection or surviv-
ability steps specified in paragraph (2); or 
(B) restrict the system from deployment to an 
asymmetrical threat environment.
(2) The force protection or survivability steps for a 
system covered by subsection (a)(1) are the following: 
(A) Development of force protection or surviv-
ability enhancements for the system that meet the 
key performance parameters established for that sys-
tem under subsection (a)(2). 
(B) Budgeting for in-service modification pro-
grams for the system to provide force protection and 
survivability enhancements developed under subpara-
graph (A). 
(C) Development of tactics, techniques, and 
procedures for the system to maximize force protec-
tion and survivability. 
(c) WAIVER.—The Secretary of Defense may waive 
the applicability of subsection (b) to a system covered by 
subsection (a)(1) if the Secretary determines that, but for 
such a waiver, the Department would be unable to meet 
national security objectives. Whenever the Secretary 
makes such a determination and authorizes such a waiver, 
the Secretary shall submit notice of such waiver and of 
the Secretary’s determination and the reasons therefor in 
writing to the congressional defense committees. 
(d) REQUIREMENT FOR NEW DEVELOPMENT MILI-
TARY ACQUISITION PROGRAMS.—The Secretary of De-
fense shall require the Secretary of each military depart-
ment, for each military acquisition program that has not 
entered low-rate initial production as of the date of the 
enactment of this Act, to include in the development of 
that program—
(1) as part of the system requirements develop-
ment, assessments of war-fighter survivability and of 
system suitability against asymmetrical threats; and 
(2) as part of the documentation of system re-
quirements, requirements for key performance pa-
rameters for force protection and survivability. 
(e) ASYMMETRICAL THREAT ENVIRONMENT.—For 
purposes of this section, the term ‘‘asymmetrical threat 
environment’’, with respect to a manned system, means 
a security, stability, or peacekeeping operation in which 
the system is deployed or any other such environment in 
which an asymmetrical threat may exist (or, in the case 
of a manned airborne system, another such environment 
in which airborne operations would subject the system to 
a ground-based asymmetrical threat).
SEC. 115. ALLOCATION OF EQUIPMENT AUTHORIZED BY 
THIS TITLE TO BE MADE ON BASIS OF UNITS 
DEPLOYED OR PREPARING TO DEPLOY. 
The Secretary of Defense shall provide that, in the 
allocation to operational units of equipment acquired using 
funds authorized to be appropriated by this title, priority
shall be given to units that are deployed to, or preparing 
to deploy to, Operation Iraqi Freedom or Operation En-
during Freedom, regardless of the status of those units 
as active, Guard, or reserve component units.
SEC. 116. MULTIYEAR PROCUREMENT AUTHORITY FOR KC–
767 TANKER AIRCRAFT ACQUISITION PRO-
GRAM. 
(a) MULTIYEAR PROCUREMENT AUTHORITY.—(1) 
The Secretary of the Air Force may, in accordance with 
section 2306b of title 10, United States Code, enter into 
a multiyear contract, beginning with the fiscal year 2005 
program year, for procurement of 80 KC–767 tanker air-
craft. 
(2) Notwithstanding subsection (k) of section 2306b 
of title 10, United States Code, a contract under this sub-
section may be for any period not in excess of eight pro-
gram years. 
(b) LIMITATION.—Subsection (b) of section 135 of 
the National Defense Authorization Act for Fiscal Year 
2004 (Public Law 108–136; 117 Stat. 1413; 10 U.S.C. 
2401a note) is repealed. 
(c) 
RELATIONSHIP
TO
PREVIOUS
LAW.—The 
multiyear procurement authority in subsection (a) may 
not be executed under section 135 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108–
136; 117 Stat. 1413; 10 U.S.C. 2401a note) or under sec-
tion 8159 of the Department of Defense Appropriations 
Act, 2002 (division A of Public Law 107–117).
SEC. 117. OTHER MATTERS RELATING TO KC–767 TANKER 
AIRCRAFT ACQUISITION PROGRAM. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
(1) aerial refueling capability for the Armed 
Forces is a critical combat force multiplier; 
(2) the Nation must expeditiously proceed with 
a program to replace the Air Force’s aging fleet of 
aerial refueling tankers; 
(3) in pursuing an aerial refueling tanker pro-
gram, the Department of Defense should take full 
advantage of the United States commercial aircraft 
production base; and 
(4) anyone suspected of involvement in im-
proper or illegal activities associated with such a 
program should be investigated and, if warranted, 
prosecuted to the fullest extent of the law. 
(b) REQUIREMENT FOR RENEGOTIATION OF CON-
TRACT.—The Secretary of the Air Force shall enter into 
one or more contracts for the Air Force multiyear tanker 
aircraft program no later than March 1, 2005, provided 
that any such contract is negotiated after June 1, 2004.
(c) REVIEW BY OUTSIDE PANEL.—(1) The Secretary 
of Defense shall establish a panel of experts from outside 
the Department of Defense to review any proposed con-
tract for the multiyear tanker aircraft program. The panel 
shall be comprised of individuals who, by reason of edu-
cation, training, or experience, have expertise relevant to 
the evaluation of a proposed contract for the lease or pro-
curement of aircraft under that program. 
(2) The panel shall review any proposed contract for 
the multiyear tanker aircraft program to assess, and assist 
the Secretary of the Air Force in determining, whether 
the Air Force would under that contract obtain the best 
value for funds expended. The panel shall serve in what-
ever manner the Secretary of Defense determines is appro-
priate to provide an independent review of any such pro-
posed contract. The Secretary shall provide for the panel 
to make a determination of, and to advise the Secretary 
of the Air Force on, what would constitute a fair and rea-
sonable contract for that program. 
(d) REPORT.—The Secretary of Defense shall provide 
for the panel established under subsection (c) to submit 
a report providing the results of its review to the Secretary 
of the Air Force and the congressional defense commit-
tees.
(e) MULTIYEAR TANKER AIRCRAFT PROGRAM DE-
FINED.—In this section, the term ‘‘multiyear tanker air-
craft program’’ means the program for—
(1) lease of no more than 20 aerial refueling 
aircraft for the Air Force authorized under section 
8159 of the Department of Defense Appropriations 
Act, 2002 (division A of Public Law 107–117; 115 
Stat. 2284), subject to section 135(a) of the Na-
tional Defense Authorization Act for Fiscal Year 
2004 (Public Law 108–136; 117 Stat. 1413); and 
(2) procurement of no more than 80 KC–767 
tanker aircraft for which a multiyear procurement 
contract is authorized by section 116(a) of this Act. 
(f) INTERPRETATION.—Section 134 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108–136; 117 Stat. 1412) is amended by adding at 
the end the following new subsection: 
‘‘(c) INTERPRETATION.—Nothing in subsection (b) or 
section 1111 of the Emergency Supplemental Appropria-
tions Act for Defense and for the Reconstruction of Iraq 
and Afghanistan, 2004 (Public Law 108–106; 117 Stat. 
1215) is intended to prohibit the Secretary of the Air 
Force from executing the program described in section 
135(a) of this Act and section 116 of the National Defense 
Authorization Act for Fiscal Year 2005.’’.
SEC. 118. ADDITIONAL AMOUNT FOR PATRIOT MISSILE 
PROCUREMENT. 
(a) ADDITIONAL AMOUNTS.—The amount in section 
101 for Army procurement, missiles, is hereby increased 
by $90,000,000, to be available for Patriot missiles. 
(b) OFFSETTING REDUCTIONS.—(1) The amount in 
section 101 for Other Support Space Programs is hereby 
decreased by $27,000,000, to be derived from Titan Space 
Boosters (SPACE). 
(2) The amount in section 301(4) for operation and 
maintenance, 
Air 
Force, 
is 
hereby 
reduced 
by 
$15,000,000, to be derived from the transportation work-
ing capital fund. 
(3) The amount in section 201(4) for research, devel-
opment, test, and evaluation, defense-wide, is hereby re-
duced by $48,000,000, to be derived from the Ballistic 
Missile Defense System Interceptor program element (PE 
63886C).
SEC. 119. TRANSFER OF CERTAIN ARMY PROCUREMENT 
FUNDS. 
(a) INCREASE FOR CERTAIN HELICOPTER ITEMS.—
The amount provided in section 101(1) for procurement 
of aircraft for the Army is hereby increased by 
$4,000,000, of which—
(1) $2,000,000 shall be available for procure-
ment of the Aircraft Wireless Intercom System; and
(2) $2,000,000 shall be available for procure-
ment of bladefold kits for Apache Helicopters. 
(b) OFFSET.—The amount provided in section 
101(5) for Other Procurement, Army, is hereby reduced 
by $4,000,000, to be derived from amounts for Informa-
tion Systems.
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of 
Appropriations 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS. 
Funds are hereby authorized to be appropriated for 
fiscal year 2005 for the use of the Department of Defense 
for research, development, test, and evaluation as follows: 
(1) For the Army, $9,478,164,000. 
(2) For the Navy, $16,047,841,000. 
(3) For the Air Force, $21,527,967,000. 
(4) 
For 
Defense-wide 
activities, 
$21,074,389,000, of which $305,135,000 is author-
ized for the Director of Operational Test and Eval-
uation.
SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECH-
NOLOGY. 
(a) FISCAL YEAR 2005.—Of the amounts authorized 
to be appropriated by section 201, $11,067,698,000 shall 
be available for the Defense Science and Technology Pro-
gram, including basic research, applied research, and ad-
vanced technology development projects. 
(b) BASIC RESEARCH, APPLIED RESEARCH, AND AD-
VANCED TECHNOLOGY DEVELOPMENT DEFINED.—For 
purposes of this section, the term ‘‘basic research, applied 
research, and advanced technology development’’ means 
work funded in program elements for defense research and 
development under Department of Defense category 6.1, 
6.2, or 6.3.
SEC. 203. PROGRAM INCREASES. 
(a) NANO-COMPOSITE HARD-COAT
FOR AIRCRAFT 
CANOPIES.—The amount provided in section 201(2) for 
research development, test and evaluation, Navy, is hereby 
increased by $5,000,000, to be available for Nano-com-
posite hard-coat for aircraft canopies in Program Element 
0205633N. 
(b) COMMAND-AND-CONTROL SERVICE LEVEL MAN-
AGEMENT.—The amount provided in section 201(3) for 
research development, test and evaluation, Air Force, is 
hereby increased by $5,000,000, to be available for com-
mand-and-control service level management in Program
Element 0207443F for best-commercial practices and en-
terprise wide architectures for military command-and-con-
trol applications. 
Subtitle 
B—Program 
Require-
ments, Restrictions, and Limita-
tions
SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY. 
(a) PROGRAM STRATEGY REQUIRED.—The Secretary 
of the Army shall establish and implement a program 
strategy for the Future Combat Systems acquisition pro-
gram of the Army. The purpose of the program strategy 
shall be to provide an effective, affordable, producible, and 
supportable military capability with a realistic schedule 
and a robust cost estimate. 
(b) ELEMENTS OF PROGRAM STRATEGY.—The pro-
gram strategy shall—
(1) require the release, at the design readiness 
review, of not less than 90 percent of engineering 
drawings for the building of prototypes; 
(2) require, before facilitating production or 
contracting for items with long lead times, that an 
acceptable demonstration be carried out of the per-
formance of the information network, including the 
performance of the Joint Tactical Radio System and 
the Warfighter Information Network-Tactical; and
(3) require, before the initial production deci-
sion, that an acceptable demonstration be carried 
out of the collective capability of each system to 
meet system-of-systems requirements when inte-
grated with the information network. 
(c) REQUIRED SUBMISSIONS TO CONGRESS.—Before 
convening the Milestone B update for the Future Combat 
Systems acquisition program required by the Future Com-
bat Systems acquisition decision memorandum, the Under 
Secretary of Defense for Acquisition, Technology, and Lo-
gistics shall submit to Congress each of the following docu-
ments: 
(1) The independent cost estimate with respect 
to the program prepared by the cost analysis im-
provement group of the Office of the Secretary of 
Defense. 
(2) A report, prepared by an independent panel, 
on the maturity levels of the critical technologies 
with respect to the program, including an assess-
ment of those technologies that are likely to require 
a decision to use an alternative approach. 
(3) A report, prepared by the chief information 
officer of the Army, describing—
(A) the status of the development and inte-
gration of the network and the command, con-
trol, computers, communications, intelligence, 
surveillance, and reconnaissance components; 
and 
(B) the progress made toward meeting the 
requirements for network-centric capabilities as 
set forth by such officer. 
(4) A report identifying the key performance 
parameters with respect to the program, with all ob-
jectives and thresholds quantified, together with the 
supporting analytical rationale. 
(d) LIMITATION ON FUNDING.—(1) Except as pro-
vided in paragraph (2), the Secretary of the Army may 
not obligate, from amounts made available for fiscal year 
2005, more than $2,200,000,000 for the Future Combat 
Systems acquisition program. 
(2) The limitation in paragraph (1) shall not apply 
after the Secretary of the Army submits to Congress the 
Secretary’s certification that the Secretary has established 
and implemented the program strategy required by sub-
section (a).
SEC. 212. COLLABORATIVE PROGRAM FOR RESEARCH AND 
DEVELOPMENT OF VACUUM ELECTRONICS 
TECHNOLOGIES. 
(a) PROGRAM REQUIRED.—The Secretary of Defense 
shall establish a program for research and development
in advanced vacuum electronics to meet the requirements 
of the Department of Defense electromagnetic systems. 
(b) DESCRIPTION
OF
PROGRAM.—The program 
under subsection (a) shall be carried out collaboratively 
by the Director of Defense Research and Engineering, the 
Secretary of the Navy, the Secretary of the Air Force, the 
Secretary of the Army, and other appropriate elements of 
the Department of Defense. The program shall include the 
following activities: 
(1) Activities needed for development and matu-
ration of advanced vacuum electronics technologies 
needed to meet the requirements of the Department 
of Defense. 
(2) Identification of legacy and developmental 
electromagnetic systems for use of advanced vacuum 
electronics under the program. 
(c) REPORT.—Not later than January 31, 2005, the 
Director of Defense Research and Engineering shall sub-
mit to the congressional defense committees a report on 
the implementation of the program under subsection (a). 
The report shall include the following: 
(1) Identification of the officer to have lead re-
sponsibility for carrying out the program.
(2) A description of the management plan for 
the program and any agreements relating to that 
plan. 
(3) A schedule for the program. 
(4) Identification of the funding required for 
fiscal year 2006 and for the future-years defense 
program to carry out the program. 
(5) A list of program capability goals and objec-
tives. 
(d) FUNDING.—Of the funds authorized to be appro-
priated in section 201—
(1) $13,500,000 shall be available in program 
element 62771N for applied research in vacuum 
electronics; and 
(2) $5,000,000 shall be available in program 
element 63771N for advanced technology develop-
ment in vacuum electronics.
SEC. 213. ANNUAL COMPTROLLER GENERAL REPORT ON 
JOINT STRIKE FIGHTER PROGRAM. 
(a) ANNUAL GAO REVIEW.—The Comptroller Gen-
eral shall conduct an annual review of the Joint Strike 
Fighter aircraft program and shall, not later than March 
15 of each year, submit to Congress a report on the results 
of the most recent review. With each such report, the 
Comptroller General shall submit a certification as to
whether the Comptroller General has had access to suffi-
cient information to enable the Comptroller General to 
make informed judgments on the matters covered by the 
report. 
(b) MATTERS TO BE INCLUDED.—Each report on the 
Joint Strike Fighter aircraft program under subsection 
(a) shall include the following with respect to system devel-
opment and demonstration under the program: 
(1) The extent to which such system develop-
ment and demonstration is meeting established 
goals, including the goals established for perform-
ance, cost, and schedule. 
(2) The plan for such system development and 
demonstration (leading to production) for the fiscal 
year that begins in the year in which the report is 
submitted. 
(3) The Comptroller General’s conclusion re-
garding whether such system development and dem-
onstration (leading to production) is likely to be 
completed at a total cost not in excess of the amount 
specified (or to be specified) for such purpose in the 
Selected Acquisition report for the Joint Strike 
Fighter aircraft program under section 2432 of title 
10, United States Code, for the first quarter of the
fiscal year during which the report of the Comp-
troller General is submitted. 
(c) REQUIREMENT TO SUPPORT ANNUAL GAO RE-
VIEW.—The Secretary of Defense and the prime con-
tractor for the Joint Strike Fighter aircraft program shall 
provide to the Comptroller General such information on 
that program as the Comptroller General considers nec-
essary to carry out the responsibilities of the Comptroller 
General under this section, including such information as 
is necessary for the purposes of subsection (b)(3). 
(d) TERMINATION.—No report is required under this 
section after the report that, under subsection (a), is re-
quired to be submitted not later than March 15, 2009.
SEC. 214. AMOUNTS FOR UNITED STATES JOINT FORCES 
COMMAND TO BE DERIVED ONLY FROM DE-
FENSE-WIDE AMOUNTS. 
(a) IN GENERAL.—Chapter 9 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 232. 
United 
States 
Joint 
Forces 
Command: 
amounts for research, development, test, 
and evaluation to be derived only from 
Defense-wide amounts 
‘‘(a) REQUIREMENT.—Amounts for research, devel-
opment, test, and evaluation for the United States Joint
Forces Command shall be derived only from amounts 
made available to the Department of Defense for Defense-
wide research, development, test, and evaluation. 
‘‘(b) SEPARATE DISPLAY IN BUDGET.—Any amount 
in the budget submitted to Congress under section 1105 
of title 31 for any fiscal year for research, development, 
test, and evaluation for the United States Joint Forces 
Command shall be set forth under the account of the De-
partment of Defense for Defense-wide research, develop-
ment, test, and evaluation.’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘232. United States Joint Forces Command: amounts for research, develop-
ment, test, and evaluation to be derived only from Defense-
wide amounts.’’.
SEC. 215. SPACE BASED RADAR. 
(a) LIMITATION.—In carrying out the Space Based 
Radar program, the Secretary of Defense may not author-
ize that program to proceed into the system development 
and procurement phase referred to as Milestone B until 
the Secretary—
(1) submits to the congressional defense com-
mittees, the Permanent Select Committee on Intel-
ligence of the House of Representatives, and the Se-
lect Committee on Intelligence of the Senate a re-
port described in subsection (b); and
(2) a period of 30 days has elapsed after the 
date on which such report is submitted. 
(b) REPORT.—A report under this subsection is a re-
port on the Space Based Radar program in which the Sec-
retary of Defense sets forth the following with respect to 
that program: 
(1) A description of the technical system con-
cept selected. 
(2) A description of the concept of operations 
associated with the technical system concept se-
lected. 
(3) An independent cost estimate for develop-
ment and procurement under the program. 
(4) The acquisition strategy for the program. 
SEC. 216. MARK–54 TORPEDO PRODUCT IMPROVEMENT 
PROGRAM. 
Of the amount provided in section 201 for research, 
development, 
test, 
and 
evaluation 
for 
the 
Navy, 
$2,000,000 within the budget line designated as line 120 
shall be available for the Mark-54 Torpedo Product Im-
provement Program.
Subtitle C—Ballistic Missile 
Defense 
SEC. 221. FIELDING OF BALLISTIC MISSILE DEFENSE CAPA-
BILITIES. 
(a) AUTHORITY.—Funds described in subsection (b) 
may, upon approval by the Secretary of Defense, be used 
for the development and fielding of ballistic missile defense 
capabilities. 
(b) COVERED FUNDS.—Subsection (a) applies to 
funds appropriated for fiscal year 2005 or fiscal year 2006 
for research, development, test, and evaluation for the 
Missile Defense Agency.
TITLE III—OPERATION AND 
MAINTENANCE
Subtitle A—Authorization of 
Appropriations 
SECTION 301. OPERATION AND MAINTENANCE FUNDING. 
Funds are hereby authorized to be appropriated for 
fiscal year 2005 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for 
expenses, not otherwise provided for, for operation and 
maintenance, in amounts as follows: 
(1) For the Army, $25,838,611,000. 
(2) For the Navy, $29,523,490,000. 
(3) For the Marine Corps, $3,637,615,000.
(4) For the Air Force, $27,143,566,000. 
(5) 
For 
Defense-wide 
activities, 
$17,317,406,000. 
(6) For the Army Reserve, $2,003,728,000. 
(7) For the Naval Reserve, $1,240,038,000. 
(8) 
For 
the 
Marine 
Corps 
Reserve, 
$188,696,000
(9) For the Air Force Reserve, $2,226,790,000
(10) 
For 
the 
Army 
National 
Guard, 
$4,425,686,000. 
(11) 
For 
the 
Air 
National 
Guard, 
$4,448,938,000. 
(12) For the United States Court of Appeals 
for the Armed Forces, $10,825,000. 
(13) For Environmental Restoration, Army, 
$400,948,000. 
(14) For Environmental Restoration, Navy, 
$266,820,000. 
(15) For Environmental Restoration, Air Force, 
$397,368,000. 
(16) For Environmental Restoration, Defense-
wide, $23,684,000
(17) For Environmental Restoration, Formerly 
Used Defense Sites, $216,516,000.
(18) For Overseas Humanitarian, Disaster, and 
Civic Aid programs, $59,000,000. 
(19) For Cooperative Threat Reduction pro-
grams, $409,200,000. 
(20) For the Overseas Contingency Operations 
Transfer Fund, $5,000,000. 
(21) For the Defense Industrial Base Capabili-
ties Fund, $50,000,000
SEC. 302. WORKING CAPITAL FUNDS. 
Funds are hereby authorized to be appropriated for 
fiscal year 2005 for the use of the Armed Forces and other 
activities and agencies of the Department of Defense for 
providing capital for working capital and revolving funds 
in amounts as follows: 
(1) For the Defense Working Capital Funds, 
$372,886,000. 
(2) For the National Defense Sealift Fund, 
$1,219,252,000. 
(3) For the Defense Working Capital Fund, 
Defense Commissary, $1,175,000,000
SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS. 
(a) DEFENSE HEALTH PROGRAM.—Funds are here-
by authorized to be appropriated for the Department of 
Defense for fiscal year 2005 for expenses, not otherwise
provided 
for, 
for 
the 
Defense 
Health 
Program, 
$17,811,586,000, of which—
(1) $17,374,544,000 is for Operation and 
Maintenance; 
(2) $72,407,000 is for Research, Development, 
Test, and Evaluation; and 
(3) $364,635,000 is for Procurement. 
(b) CHEMICAL AGENTS AND MUNITIONS DESTRUC-
TION, DEFENSE.—(1) Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 
2005 for expenses, not otherwise provided for, for Chem-
ical 
Agents 
and 
Munitions 
Destruction, 
Defense, 
$1,371,990,000, of which—
(A) $1,138,801,000 is for Operation and Main-
tenance; 
(B) $154,209,000 is for Research, Develop-
ment, Test, and Evaluation; and 
(C) $78,980,000 is for Procurement. 
(2) Amounts authorized to be appropriated under 
paragraph (1) are authorized for—
(A) the destruction of lethal chemical agents 
and munitions in accordance with section 1412 of 
the Department of Defense Authorization Act, 1986 
(50 U.S.C. 1521); and
(B) the destruction of chemical warfare mate-
riel of the United States that is not covered by sec-
tion 1412 of such Act. 
(c) DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES, DEFENSE-WIDE.—Funds are hereby authorized 
to be appropriated for the Department of Defense for fis-
cal year 2005 for expenses, not otherwise provided for, for 
Drug Interdiction and Counter-Drug Activities, Defense-
wide, $852,697,000. 
(d) DEFENSE INSPECTOR GENERAL.—Funds are 
hereby authorized to be appropriated for the Department 
of Defense for fiscal year 2005 for expenses, not otherwise 
provided for, for the Office of the Inspector General of 
the Department of Defense, $193,562,000, of which—
(1) $191,362,000 is for Operation and Mainte-
nance; 
(2) $2,100,000 is for Research, Development, 
Test, and Evaluation; and 
(3) $100,000 is for Procurement. 
SEC. 304. REIMBURSEMENT OF MEMBERS OF THE ARMED 
FORCES 
WHO 
PURCHASED 
PROTECTIVE 
BODY ARMOR DURING SHORTAGE OF DE-
FENSE STOCKS OF BODY ARMOR. 
(a) REIMBURSEMENT AUTHORIZED.—The Secretary 
of Defense may reimburse a member of the Armed Forces
for the cost of protective body armor purchased by the 
member, or by another person on behalf of the member, 
for use by the member while deployed in connection with 
Operation Noble Eagle, Operation Enduring Freedom, or 
Operation Iraqi Freedom if the member was not issued 
protective body armor before the member became engaged 
in operations in areas or situations described in section 
310(a)(2) of title 37, United States Code. 
(b) DURATION
OF
AUTHORITY.—Reimbursement 
may be provided under subsection (a) for protective body 
armor purchased during the period beginning on Sep-
tember 11, 2001, and ending on December 31, 2003. Not 
later than 60 days after the date of the enactment of this 
Act, the Secretary shall implement regulations to expedite 
the provision of such reimbursement.
SEC. 305. REDUCTION IN AUTHORIZATION FOR AIR FORCE 
OPERATIONS AND MAINTENANCE. 
The amount authorized to be appropriated in section 
301(4) is hereby reduced by $10,000,000, to be derived 
from the transportation working capital fund.
SEC. 306. ELIMINATION OF BACKLOG IN PROCESSING FO-
RENSIC EVIDENCE COLLECTION KITS AND 
ACQUISITION OF SUFFICIENT STOCKS OF 
SUCH KITS. 
The Secretary of Defense shall take such steps as 
may be necessary to eliminate the current backlog in the 
processing of forensic evidence collection kits used by the 
Department of Defense, to shorten the time period be-
tween the use of such kits and their processing in the fu-
ture, and to ensure an adequate supply of such kits for 
all domestic and overseas United States military installa-
tions, including the military service academies, and for 
units of the Armed Forces deployed in theaters of oper-
ation. 
Subtitle B—Environmental 
Provisions 
SEC. 311. REPORT REGARDING ENCROACHMENT ISSUES 
AFFECTING 
UTAH 
TEST 
AND 
TRAINING 
RANGE, UTAH. 
(a) REPORT REQUIRED.—The Secretary of the Air 
Force shall prepare a report that outlines current and an-
ticipated encroachments on the use and utility of the spe-
cial use airspace of the Utah Test and Training Range 
in the State of Utah, including encroachments brought 
about through actions of other Federal agencies. The Sec-
retary shall include such recommendations as the Sec-
retary considers appropriate regarding any legislative ini-
tiatives necessary to address encroachment problems iden-
tified by the Secretary in the report. 
(b) SUBMISSION OF REPORT.—Not later than one 
year after the date of the enactment of this Act, the Sec-
retary shall submit the report to the Committee on Armed 
Services of the House of Representatives and the Com-
mittee on Armed Services of the Senate. 
Subtitle C—Workplace and Depot 
Issues 
SEC. 321. SIMPLIFICATION OF ANNUAL REPORTING RE-
QUIREMENTS 
CONCERNING 
FUNDS 
EX-
PENDED FOR DEPOT MAINTENANCE AND RE-
PAIR WORKLOADS. 
Subsection (d) of section 2466 of title 10, United 
States Code, is amended to read as follows: 
‘‘(d) ANNUAL REPORT AND REVIEW.—(1) Not later 
than April 1 of each year, the Secretary of Defense shall 
submit to Congress a report identifying, for each of the 
armed forces (other than the Coast Guard) and each De-
fense Agency, the percentage of the funds referred to in 
subsection (a) that was expended during the preceding fis-
cal year, and are projected to be expended in the current 
fiscal year and next fiscal year, for performance of depot-
level maintenance and repair workloads by the public and 
private sectors. 
‘‘(2) Not later than 60 days after the date on which 
the Secretary submits a report under paragraph (1), the 
Comptroller General shall submit to Congress the Comp-
troller General’s views on whether—
‘‘(A) the Department of Defense has complied 
with the requirements of subsection (a) during the 
preceding fiscal year covered by the report; and 
‘‘(B) the expenditure projections for the current 
fiscal year and next fiscal year are reasonable.’’. 
SEC. 322. REPEAL OF ANNUAL REPORTING REQUIREMENT 
CONCERNING MANAGEMENT OF DEPOT EM-
PLOYEES. 
(a) REPEAL.—Section 2472 of title 10, United States 
Code, is amended—
(1) by striking ‘‘(a) PROHIBITION ON MANAGE-
MENT BY END STRENGTH.—’’; and 
(2) by striking subsection (b). 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows:
‘‘§ 2472. Prohibition on management of depot employ-
ees by end strength’’. 
(2) The table of sections at the beginning of chapter 
146 of such title is amended by striking the item relating 
to section 2472 and inserting the following new item:
‘‘2472. Prohibition on management of depot employees by end strength.’’.
SEC. 323. PUBLIC-PRIVATE COMPETITION FOR WORK PER-
FORMED BY CIVILIAN EMPLOYEES OF DE-
PARTMENT OF DEFENSE. 
(a) IN GENERAL.—Section 2461(b) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph:
‘‘(5)(A) 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 con-
tractor unless, the conversion is based on the results of 
a public-private competition process that—
‘‘(i) formally compares the cost of civilian em-
ployee performance of the 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 im-
plemented on May 29, 2003; 
‘‘(iii) determines whether the submitted offers 
meet the needs of the Department of Defense with
respect to factors other than cost, including quality 
and reliability; 
‘‘(iv) requires continued performance of the 
function by civilian employees if the cost of perform-
ance of the function by a contractor would, over all 
performance periods required by the solicitation, cost 
less than—
‘‘(I) 10 percent of the personnel-related 
costs for performance of that activity or func-
tion in the agency tender; or 
‘‘(II) $10,000,000; and 
‘‘(v) provides no advantage to an offeror for a 
proposal to reduce costs for the Department of De-
fense by—
‘‘(I) not making an employer-sponsored 
health insurance plan available to the workers 
who are to be employed in the performance of 
such function under a contract; or 
‘‘(II) offering to such workers an em-
ployer-sponsored health benefits plan that re-
quires 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 modification, reorganization, division, or 
other change in the organization of a function of the De-
partment of Defense so that is performed by less than 10 
civilian employees of the Department of Defense and, 
therefore, excluded from subparagraph (A), is prohibited. 
‘‘(C) 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, but 
the civilian employees would still provide essentially the 
same service, is subject to the competition requirement in 
subparagraph (A). 
‘‘(D) The cost savings requirement specified in sub-
paragraph (A) does not apply to any contracts for special 
studies and analyses, construction services, architectural 
services, medical services, scientific and technical services 
related to (but not in support of) research and develop-
ment, and depot-level maintenance and repair services. 
‘‘(E) The Secretary of Defense may waive the com-
petition requirement in specific instances if—
‘‘(i) the written waiver is prepared by the Sec-
retary of Defense, or the relevant Assistant Sec-
retary or agency head; 
‘‘(ii) the written waiver is accompanied by a de-
tailed determination that national security interests
one was undertaken, including the cost of consult-
ants as well as civilian employees. 
(5) In the case of a function formerly per-
formed by civilian employees, the actual cost of the 
performance by such employees. 
(6) The cost to the Department of Defense of 
civilian employee performance of the function under 
the most efficient organization plan. 
(7) The anticipated cost of contractor perform-
ance, based on the award. 
(8) The cost to the Department of Defense for 
performance of the function by the contractor. 
(9) A description of the quality control process 
used by the agency in connection with monitoring 
the contract performance (including the applicable 
quality control standards and the frequency of the 
quality control reports), together with an assessment 
of whether the contractor achieved, exceeded, or 
failed to achieve the quality control standards. 
(c) ASSESSMENT OF TRACKING SYSTEM.—The In-
spector General of the Department of Defense shall in-
clude in the report required by subsection (a) an assess-
ment of the comprehensiveness and reliability of the De-
partment of Defense system for tracking cost and quality 
of performance of a function under a service contract, in-
‘‘(4) The Assistant Secretary of Defense for 
Networks and Information Integration and the Chief 
Information Officer of the Department of Defense 
shall be responsible and accountable for any defense 
business system the primary purpose of which is to 
support information technology infrastructure or in-
formation assurance activities of the Department of 
Defense. 
‘‘(5) The Deputy Secretary of Defense or an 
Under Secretary of Defense, as designated by the 
Secretary of Defense, shall be responsible for any 
defense business system the primary purpose of 
which is to support any activity of the Department 
of Defense not covered by paragraphs (1) through 
(4). 
‘‘(d) DEFENSE BUSINESS SYSTEM INVESTMENT RE-
VIEW.—(1) The Secretary of Defense shall require each 
approval authority designated under subsection (c) to es-
tablish, not later than March 15, 2005, an investment re-
view process, consistent with section 11312 of title 40, to 
review the planning, design, acquisition, development, de-
ployment, operation, maintenance, modernization, and 
project cost benefits and risks of all defense business sys-
tems for which the approval authority is responsible. The 
investment review process so established shall specifically
address the responsibilities of approval authorities under 
subsection (a). 
‘‘(2) The review of defense business systems under 
the investment review process shall include the following: 
‘‘(A) Review and approval by an investment re-
view board of each defense business system as an in-
vestment before the obligation of funds on the sys-
tem. 
‘‘(B) Periodic review, but not less than annu-
ally, of every defense business system investment. 
‘‘(C) Representation on each investment review 
board by appropriate officials from among the armed 
forces, combatant commands, the Joint Chiefs of 
Staff, and Defense Agencies. 
‘‘(D) Use of threshold criteria to ensure an ap-
propriate level of review within the Department of 
Defense of, and accountability for, defense business 
system investments depending on scope, complexity, 
and cost. 
‘‘(e) BUDGET INFORMATION.—In the materials that 
the Secretary submits to Congress in support of the budg-
et submitted by the President to Congress under section 
1105 of title 31 for fiscal year 2006 and fiscal years there-
after, the Secretary of Defense shall—