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(1) LIMITATION ON REQUIRING PUBLIC-PRIVATE
COMPETITION.—No public-private competition may be
required for any Department of Defense function
before—
(A) the commencement of the performance
by civilian employees of the Department of De-
fense of a new Department of Defense function;
(B) the commencement of the performance
by civilian employees of the Department of De-
fense of any Department of Defense function de-
scribed in subparagraphs (B) through (D) of sub-
section (a)(2); or
(C) the expansion of the scope of any De-
partment of Defense function performed by civil-
ian employees of the Department of Defense.
(2) CONSIDERATION OF FEDERAL GOVERNMENT
EMPLOYEES.—The Secretary of Defense shall, to the
maximum extent practicable, ensure that Federal
Government employees are fairly considered for the
performance of new requirements, with special consid-
eration given to new requirements that include func-
tions that—
(A) are similar to functions that have been
performed by Federal Government employees at
any time on or after October 1, 1980; or
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(B) are associated with the performance of
inherently governmental functions.
(c) USE OF FLEXIBLE HIRING AUTHORITY.—The Sec-
retary may use the flexible hiring authority available to
the Secretary under the National Security Personnel Sys-
tem, as established pursuant to section 9902 of title 5,
United States Code, to facilitate the performance by civilian
employees of the Department of Defense of functions de-
scribed in subsection (b).
(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
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).
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(f) CONFORMING REPEAL.—The National Defense Au-
thorization Act for Fiscal Year 2006 (Public Law 109–163)
is amended by striking section 343.
SEC. 369. RESTRICTION ON OFFICE OF MANAGEMENT AND
BUDGET INFLUENCE OVER DEPARTMENT OF
DEFENSE PUBLIC-PRIVATE COMPETITIONS.
(a) RESTRICTION ON OFFICE OF MANAGEMENT AND
BUDGET.—The Office of Management and Budget may not
direct or require the Secretary of Defense or the Secretary
of a military department to prepare for, undertake, con-
tinue, or complete a public-private competition or direct
conversion of a Department of Defense function to perform-
ance by a contractor under Office of Management and
Budget Circular A–76, or any other successor regulation,
directive, or policy.
(b) RESTRICTION ON SECRETARY OF DEFENSE.—The
Secretary of Defense or the Secretary of a military depart-
ment may not prepare for, undertake, continue, or complete
a public-private competition or direct conversion of a De-
partment of Defense function to performance by a con-
tractor under Office of Management and Budget Circular
A–76, or any other successor regulation, directive, or policy
by reason of any direction or requirement provided by the
Office of Management and Budget.
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SEC. 370. PUBLIC-PRIVATE COMPETITION AT END OF PE-
RIOD SPECIFIED IN PERFORMANCE AGREE-
MENT NOT REQUIRED.
Section 2461(a) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(4) A military department or defense agency
may not be required to conduct a public-private com-
petition under Office of Management and Budget Cir-
cular A–76 or any other provision of law at the end
of the period specified in the performance agreement
entered into in accordance with this section for any
function of the Department of Defense performed by
Department of Defense civilian employees.’’.
TITLE IV—MILITARY PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 2008, as follows:
(1) The Army, 525,400.
(2) The Navy, 328,400.
(3) The Marine Corps, 189,000.
(4) The Air Force, 328,600.
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Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve com-
ponents as of September 30, 2008, as follows:
(1) The Army National Guard of the United
States, 351,300.
(2) The Army Reserve, 205,000.
(3) The Navy Reserve, 67,800.
(4) The Marine Corps Reserve, 39,600.
(5) The Air National Guard of the United
States, 106,700.
(6) The Air Force Reserve, 67,500.
(7) The Coast Guard Reserve, 10,000.
(b) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve compo-
nent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such
component which are on active duty (other than for
training) at the end of the fiscal year; and
(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
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pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be increased propor-
tionately by the total authorized strengths of such units and
by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
Within the end strengths prescribed in section 411(a),
the reserve components of the Armed Forces are authorized,
as of September 30, 2008, the following number of Reserves
to be serving on full-time active duty or full-time duty, in
the case of members of the National Guard, for the purpose
of organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United
States, 29,204.
(2) The Army Reserve, 15,870.
(3) The Navy Reserve, 11,579.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United
States, 13,936.
(6) The Air Force Reserve, 2,721.
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SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS
(DUAL STATUS).
The minimum number of military technicians (dual
status) as of the last day of fiscal year 2008 for the reserve
components of the Army and the Air Force (notwith-
standing section 129 of title 10, United States Code) shall
be the following:
(1) For the Army Reserve, 8,249.
(2) For the Army National Guard of the United
States, 26,502.
(3) For the Air Force Reserve, 9,909.
(4) For the Air National Guard of the United
States, 22,553.
SEC. 414. FISCAL YEAR 2008 LIMITATION ON NUMBER OF
NON-DUAL STATUS TECHNICIANS.
(a) LIMITATIONS.—
(1) NATIONAL
GUARD.—Within the limitation
provided in section 10217(c)(2) of title 10, United
States Code, the number of non-dual status techni-
cians employed by the National Guard as of Sep-
tember 30, 2008, may not exceed the following:
(A) For the Army National Guard of the
United States, 1,600.
(B) For the Air National Guard of the
United States, 350.
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(2) ARMY RESERVE.—The number of non-dual
status technicians employed by the Army Reserve as
of September 30, 2008, may not exceed 595.
(3) AIR FORCE RESERVE.—The number of non-
dual status technicians employed by the Air Force
Reserve as of September 30, 2008, may not exceed 90.
(b) NON-DUAL STATUS TECHNICIANS DEFINED.—In
this section, the term ‘‘non-dual status technician’’ has the
meaning given that term in section 10217(a) of title 10,
United States Code.
SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AU-
THORIZED TO BE ON ACTIVE DUTY FOR
OPERATIONAL SUPPORT.
During fiscal year 2008, the maximum number of
members of the reserve components of the Armed Forces who
may be serving at any time on full-time operational sup-
port duty under section 115(b) of title 10, United States
Code, is the following:
(1) The Army National Guard of the United
States, 17,000.
(2) The Army Reserve, 13,000.
(3) The Navy Reserve, 6,200.
(4) The Marine Corps Reserve, 3,000.
(5) The Air National Guard of the United
States, 16,000.
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(6) The Air Force Reserve, 14,000.
SEC. 416. REVISION OF AUTHORIZED VARIANCES IN END
STRENGTHS FOR SELECTED RESERVE PER-
SONNEL.
(a) INCREASE.—Section 115(f)(3) of title 10, United
States Code, is amended by striking ‘‘2 percent’’ and insert-
ing ‘‘3 percent’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2007, and shall
apply with respect to fiscal years beginning on or after that
date.
Subtitle C—Authorization of
Appropriations
SEC. 421. MILITARY PERSONNEL.
Funds are hereby authorized to be appropriated for fis-
cal year 2008 for military personnel, in amounts as follows:
(1) For the Army, $34,952,762,000.
(2) For the Navy, $23,300,841,000.
(3) For the Marine Corps, $11,065,542,000.
(4) For the Air Force, $24,091,993,000.
(5) For the Army Reserve, $3,701,197,000.
(6) For the Navy Reserve, $1,766,408,000.
(7) For the Marine Corps Reserve, $593,961,000.
(8) For the Air Force Reserve, $1,356,618,000.
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(9) 
For 
the 
Army 
National 
Guard,
$5,914,979,000.
(10) 
For 
the 
Air 
National 
Guard,
$2,607,456,000.
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—Officer Personnel Policy
SEC. 501. INCREASE IN AUTHORIZED STRENGTHS FOR
ARMY OFFICERS ON ACTIVE DUTY IN THE
GRADE OF MAJOR TO MEET FORCE STRUC-
TURE REQUIREMENTS.
The table in section 523(a)(1) of title 10, United States
Code, is amended by striking the items under the heading
‘‘Major’’ in the portion of the table relating to the Army
and inserting the following new items:
‘‘7,768
8,689
9,611
10,532
11,454
12,375
13,297
14,218
15,140
16,061
16,983
17,903
18,825
19,746
20,668
21,589
22,511
24,354
26,197
28,040
35,412’’.
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SEC. 502. INCREASE IN AUTHORIZED STRENGTHS FOR
NAVY OFFICERS ON ACTIVE DUTY IN GRADES
OF LIEUTENANT COMMANDER, COMMANDER,
AND CAPTAIN TO MEET FORCE STRUCTURE
REQUIREMENTS.
(a) IN GENERAL.—The table in section 523(a)(2) of
title 10, United States Code, is amended to read as follows:
‘‘Total number of
commissioned offi-
cers (excluding of-
ficers in categories
specified in sub-
section (b)) on ac-
tive duty:
Number of officers who may be serving on active duty in
the grade of:
Lieutenant Com-
mander
Commander
Captain
Navy:
30,000
7,698
5,269
2,222
33,000
8,189
5,501
2,334
36,000
8,680
5,733
2,447
39,000
9,172
5,965
2,559
42,000
9,663
6,197
2,671
45,000
10,155
6,429
2,784
48,000
10,646
6,660
2,896
51,000
11,136
6,889
3,007
54,000
11,628
7,121
3,120
57,000
12,118
7,352
3,232
60,000
12,609
7,583
3,344
63,000
13,100
7,813
3,457
66,000
13,591
8,044
3,568
70,000
14,245
8,352
3,718
90,000
17,517
9,890
4,467’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2007.