161
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 31, 
2003’’ and inserting ‘‘December 31, 2004’’. 
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND 
SPECIAL PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Section 
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’. 
(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—Sec-
tion 309(e) of such title is amended by striking ‘‘December 
31, 2003’’ and inserting ‘‘December 31, 2004’’. 
(d) RETENTION BONUS FOR MEMBERS WITH CRITICAL 
MILITARY SKILLS.—Section 323(i) of such title is amended 
by striking ‘‘December 31, 2003’’ and inserting ‘‘December 
31, 2004’’.
162
(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by 
striking ‘‘December 31, 2003’’ and inserting ‘‘December 31, 
2004’’.
SEC. 615. COMPUTATION OF HAZARDOUS DUTY INCENTIVE 
PAY FOR DEMOLITION DUTY AND PARACHUTE 
JUMPING BY MEMBERS OF RESERVE COMPO-
NENTS ENTITLED TO COMPENSATION UNDER 
SECTION 206 OF TITLE 37. 
(a) IN GENERAL.—Section 301(f) of title 37, United 
States Code, is amended by adding at the end the following 
new paragraph: 
‘‘(3) Notwithstanding paragraphs (1) or (2), if a mem-
ber described in paragraph (1) performs the duty described 
in clauses (3) or (4) of subsection (a) in any month, the 
member shall be entitled for that month to the full amount 
specified in the first sentence of subsection (c)(1), in the 
case of the duty described in clause (4) of subsection (a) 
or parachute jumping involving the use of a static line, or 
the full amount specified in the second sentence of subsection 
(c)(1), in the case of parachute jumping in military free 
fall operations.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect October 1, 2003.
163
SEC. 616. AVAILABILITY OF HOSTILE FIRE AND IMMINENT 
DANGER PAY FOR RESERVE COMPONENT 
MEMBERS ON INACTIVE DUTY. 
(a) EXPANSION
AND CLARIFICATION
OF CURRENT 
LAW.—Section 310 of title 37, United States Code, is 
amended—
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking subsection (a) and inserting the 
following new subsections: 
‘‘(a) ELIGIBILITY AND SPECIAL PAY AMOUNT.—Under 
regulations prescribed by the Secretary of Defense, a mem-
ber of a uniformed service may be paid special pay at the 
rate of $150 for any month in which—
‘‘(1) the member was entitled to basic pay or 
compensation under section 204 or 206 of this title; 
and 
‘‘(2) the member—
‘‘(A) was subject to hostile fire or explosion 
of hostile mines; 
‘‘(B) was on duty in an area in which the 
member was in imminent danger of being ex-
posed to hostile fire or explosion of hostile mines 
and in which, during the period the member was 
on duty in the area, other members of the uni-
164
formed services were subject to hostile fire or ex-
plosion of hostile mines; 
‘‘(C) was killed, injured, or wounded by 
hostile fire, explosion of a hostile mine, or any 
other hostile action; or 
‘‘(D) was on duty in a foreign area in 
which the member was subject to the threat of 
physical harm or imminent danger on the basis 
of civil insurrection, civil war, terrorism, or 
wartime conditions. 
‘‘(b) CONTINUATION DURING HOSPITALIZATION.—A 
member covered by subsection (a)(2)(C) who is hospitalized 
for the treatment of the injury or wound may be paid spe-
cial pay under this section for not more than three addi-
tional months during which the member is so hospitalized.’’. 
(b) CLERICAL AMENDMENTS.—Such section is further 
amended—
(1) in subsection (c), as redesignated by sub-
section (a)(1), by inserting ‘‘LIMITATIONS AND AD-
MINISTRATION.—’’ before ‘‘(1)’’; and 
(2) in subsection (d), as redesignated by sub-
section (a)(1), by inserting ‘‘DETERMINATIONS
OF 
FACT.—’’ before ‘‘Any’’.
165
SEC. 617. EXPANSION OF OVERSEAS TOUR EXTENSION IN-
CENTIVE PROGRAM TO OFFICERS. 
(a) SPECIAL PAY OR BONUS FOR EXTENDING OVER-
SEAS TOUR OF DUTY.—(1) Subsections (a) and (b) of sec-
tion 314 of title 37, United States Code, are amended by 
striking ‘‘an enlisted member’’ and inserting ‘‘a member’’. 
(2)(A) The heading of such section is amended to read 
as follows: 
‘‘§ 314. Special pay or bonus: qualified members ex-
tending duty at designated locations over-
seas’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 5 of such title is amend-
ed to read as follows:
‘‘314. Special pay or bonus: qualified members extending duty at designated loca-
tions overseas.’’.
(b) REST AND RECUPERATIVE ABSENCE IN LIEU OF 
PAY OR BONUS.—(1) Subsection (a) of section 705 of title 
10, United States Code, is amended by striking ‘‘an enlisted 
member’’ and inserting ‘‘a member’’. 
(2)(A) The heading of such section is amended to read 
as follows:
166
‘‘§ 705. Rest and recuperation absence: qualified mem-
bers extending duty at designated loca-
tions overseas’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 40 of such title is 
amended to read as follows:
‘‘705. Rest and recuperative absence for qualified members extending duty at des-
ignated locations overseas.’’.
SEC. 618. ELIGIBILITY OF APPOINTED WARRANT OFFICERS 
FOR ACCESSION BONUS FOR NEW OFFICERS 
IN CRITICAL SKILLS. 
Section 324 of title 37, United States Code, is amended 
in subsections (a) and (f)(1) by inserting ‘‘or an appoint-
ment’’ after ‘‘commission’’.
SEC. 619. INCENTIVE PAY FOR DUTY ON GROUND IN ANT-
ARCTICA OR ON ARCTIC ICEPACK. 
(a) IN GENERAL.—(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 301e the 
following new section:
‘‘§ 301f. Incentive pay: duty on ground in Antarctica 
or on Arctic icepack 
‘‘(a) AVAILABILITY OF INCENTIVE PAY.—A member of 
the uniformed services who performs duty at a location de-
scribed in subsection (b) is entitled to special pay under 
this section at a rate of $5 for each day of that duty.
167
‘‘(b) COVERED LOCATIONS.—Subsection (a) applies 
with respect to duty performed on the ground in Antarctica 
or on the Arctic icepack.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
301e the following new item:
‘‘301f. Incentive pay: duty on ground in Antarctica or on Arctic icepack.’’.
(b) EFFECTIVE DATE.—Section 301f of title 37, United 
States Code, as added by subsection (a), shall take effect 
on October 1, 2003.
SEC. 620. SPECIAL PAY FOR SERVICE AS MEMBER OF WEAP-
ONS OF MASS DESTRUCTION CIVIL SUPPORT 
TEAM. 
(a) IN GENERAL.—(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 305a the 
following new section:
‘‘§ 305b. Special pay: service as member of Weapons of 
Mass Destruction Civil Support Team 
‘‘(a) AVAILABILITY OF SPECIAL PAY.—The Secretary 
of a military department may pay special pay under this 
section to a member of the armed forces under the jurisdic-
tion of that Secretary who is entitled to basic pay under 
section 204 and is assigned by orders to duty as a member 
of a Weapons of Mass Destruction Civil Support Team. 
‘‘(b) MONTHLY RATE.—Special pay payable under 
subsection (a) shall be paid at a rate equal to $150 a month.
168
‘‘(c) ELIGIBILITY OF RESERVE COMPONENT MEMBERS 
WHEN PERFORMING INACTIVE DUTY TRAINING.—Under 
regulations prescribed by the Secretary concerned and to 
the extent provided for in appropriation Acts, when a mem-
ber of a reserve component of the armed forces who is enti-
tled to compensation under section 206 of this title performs 
duty under orders as a member of a Weapons of Mass De-
struction Civil Support Team, the member may be paid an 
increase in compensation equal to 1⁄30 of the monthly spe-
cial pay specified in subsection (b) for each day on which 
the member performs such duty. 
‘‘(d) DEFINITION.—In this section, the term ‘Weapons 
of Mass Destruction Civil Support Team’ means a team 
of members of the reserve components of the armed forces 
that is established under section 12310(c) of title 10 in sup-
port of emergency preparedness programs to prepare for or 
to respond to any emergency involving the use of a weapon 
of mass destruction.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
305a the following new item:
‘‘305b. Special pay: service as member of Weapons of Mass Destruction Civil Sup-
port Team.’’.
(b) EFFECTIVE DATE.—Section 305b of title 37, 
United States Code, as added by subsection (a), shall take 
effect on October 1, 2003.
169
SEC. 621. INCENTIVE BONUS FOR AGREEMENT TO SERVE IN 
CRITICALLY 
SHORT 
MILITARY 
OCCUPA-
TIONAL SPECIALTY. 
(a) IN GENERAL.—Chapter 5 of title 37, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 326. Incentive bonus: lateral conversion bonus for 
service in critically short military occupa-
tional speciality 
‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Secretary 
concerned may pay a bonus under this section to a member 
of the armed forces who executes a written agreement to con-
vert to, and serve for a period of not less than two years 
in, a critically short military occupational specialty. 
‘‘(b) ELIGIBLE MEMBERS.—A bonus may only be paid 
under this section only to a member who—
‘‘(1) is entitled to basic pay; and 
‘‘(2) is serving in pay grade E–6 (with less than 
10 years of service computed under section 205 of this 
title) or pay grade E–5 or below (regardless of years 
of service) at the time the agreement under subsection 
(a) is executed. 
‘‘(c) AMOUNT AND PAYMENT OF BONUS.—(1) A bonus 
under this section may not exceed $4,000. 
‘‘(2) A bonus payable under this section shall be dis-
bursed in one lump sum payment when the member’s con-
170
version to the critically short military occupational spe-
cialty is approved by the personnel chief of the member’s 
armed force. 
‘‘(d) RELATIONSHIP
TO OTHER PAY
AND ALLOW-
ANCES.—A bonus paid to a member under this section is 
in addition to any other pay and allowances to which the 
member is entitled. 
‘‘(e) REPAYMENT OF BONUS.—(1) A member who re-
ceives a bonus under this section and who, voluntarily or 
because of misconduct, fails to serve in the critically short 
military occupational specialty for the period specified in 
the agreement shall refund to the United States an amount 
that bears the same ratio to the bonus amount paid to the 
member as the unserved part of such period bears to the 
total period agreed to be served. 
‘‘(2) An obligation to reimburse the United States im-
posed under paragraph (1) is, for all purposes, a debt owed 
to the United States. 
‘‘(3) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of the 
agreement for which a bonus was paid under this section 
shall not discharge the person signing such agreement from 
the debt arising under paragraph (1). 
‘‘(4) Under regulations prescribed pursuant to sub-
section (f), the Secretary concerned may waive, in whole
171
in part, a refund required under paragraph (1) if the Sec-
retary determines that recovery would be against equity 
and good conscience or would be contrary to the best inter-
ests of the United States. 
‘‘(f) REGULATIONS.—The Secretaries concerned shall 
prescribe regulations to carry out this section. Regulations 
prescribed by the Secretary of a military department shall 
be subject to the approval of the Secretary of Defense. 
‘‘(g) DEFINITION.—In this section, the term ‘critically 
short military occupational specialty’ means a military oc-
cupational specialty, military rating, or other military spe-
ciality designated by the Secretary concerned as under-
manned for purposes of this section. 
‘‘(h) TERMINATION
OF AUTHORITY.—No agreement 
under this section may be entered into after December 31, 
2004.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item:
‘‘326. Incentive bonus: lateral conversion bonus for service in critically short mili-
tary occupational speciality.’’.
172
SEC. 622. INCREASE IN RATE FOR IMMINENT DANGER PAY 
AND FAMILY SEPARATION ALLOWANCE RE-
LATED TO SERVICE IN OPERATION IRAQI 
FREEDOM OR OPERATION ENDURING FREE-
DOM. 
(a) SPECIAL PAYMENT RATES.—Effective October 1, 
2003, in the case of a member of the uniformed services who 
serves, for any period of time during a month, in a combat 
zone designated for Operation Iraqi Freedom or Operation 
Enduring Freedom, the monthly rate for imminent danger 
pay under section 310 of title 37, United States Code, shall 
be deemed to be $225 and the monthly rate for the family 
separation allowance under section 427 of such title shall 
be deemed to be $250. 
(b) DURATION.—The special rates for imminent dan-
ger pay and the family separation allowance in effect under 
subsection (a) for an operation referred to in such sub-
section expire on the date the President terminates the oper-
ation.
Subtitle C—Travel and 
Transportation Allowances
SEC. 631. SHIPMENT OF PRIVATELY OWNED MOTOR VEHI-
CLE WITHIN CONTINENTAL UNITED STATES. 
(a) AUTHORITY TO PROCURE CONTRACT FOR TRANS-
PORTATION OF MOTOR VEHICLE.—Section 2634 of title 10, 
United States Code, is amended—
173
(1) by redesignating subsection (h) as subsection 
(i); and 
(2) by inserting after subsection (g) the following 
new subsection (h): 
‘‘(h) In the case of a change of permanent station de-
scribed in subparagraph (A) or (B) of subsection (i)(1), the 
Secretary concerned may authorize the member to arrange 
for the shipment of the motor vehicle in lieu of transpor-
tation at the expense of the United States under this section. 
The Secretary concerned may pay the member a monetary 
allowance in lieu of transportation, as established under 
section 404(d)(1) of title 37, and the member shall be re-
sponsible for any transportation costs in excess of such al-
lowance.’’. 
(b) ALLOWANCE FOR SELF-PROCUREMENT OF TRANS-
PORTATION OF MOTOR VEHICLE.—Section 406(b)(1)(B) of 
title 37, United States Code, is amended by adding at the 
end the following new sentence: ‘‘In the case of the transpor-
tation of a motor vehicle arranged by the member under 
section 2634(h) of title 10, the Secretary concerned may pay 
the member, upon proof of shipment, a monetary allowance 
in lieu of transportation, as established under section 
404(d)(1) of this title.’’.
174
SEC. 632. PAYMENT OR REIMBURSEMENT OF STUDENT BAG-
GAGE 
STORAGE 
COSTS 
FOR 
DEPENDENT 
CHILDREN OF MEMBERS STATIONED OVER-
SEAS. 
Section 430(b)(2) of title 37, United States Code, is 
amended in the first sentence by inserting before the period 
at the end the following: ‘‘or during a different period in 
the same fiscal year selected by the member’’.
SEC. 633. REIMBURSEMENT FOR LODGING EXPENSES OF 
CERTAIN RESERVE COMPONENT AND RE-
TIRED 
MEMBERS 
DURING 
AUTHORIZED 
LEAVE FROM TEMPORARY DUTY LOCATION. 
(a) REIMBURSEMENT AUTHORIZED.—The Secretary 
concerned (as defined in section 101 of title 37, United 
States Code) may reimburse a member of the Armed Forces 
described in subsection (b) for lodging expenses incurred by 
the member at the member’s duty location while the member 
is in an authorized leave status. 
(b) COVERED MEMBERS.—Subsection (a) applies with 
respect to a member of a reserve component who is called 
or ordered to active duty for a period of more than 30 days, 
or a retired member who is ordered to active duty under 
section 688(a) of title 10, United States Code, if the mem-
ber—
175
(1) immediately before taking authorized leave 
was performing duty at a location away from the 
member’s home; 
(2) was receiving a per diem allowance under 
section 404(a)(4) of title 37, United States Code, to 
cover lodging and subsistence expenses incurred at the 
duty location because quarters of the United States 
were not available for assignment to the member at 
that location; and 
(3) immediately after completing the authorized 
leave, returned to the duty location. 
(c) AMOUNT OF REIMBURSEMENT.—The amount of the 
reimbursement provided to a member under subsection (a) 
may not exceed the lesser of—
(1) the actual daily cost of lodging incurred by 
the member at the duty location while the member 
was in an authorized leave status; and 
(2) the lodging portion of the applicable daily 
per diem rate for that duty location. 
(d) RETROACTIVE APPLICATION.—This section applies 
with respect to members of the reserve components described 
in subsection (b) who, since September 11, 2001, were or 
are called or ordered to active duty for a period of more 
than 30 days and retired members described in such sub-
176
section who, since that date, were or are ordered to active 
duty under section 688(a) of title 10, United States Code. 
Subtitle D—Retired Pay and 
Survivors Benefits
SEC. 641. FUNDING FOR SPECIAL COMPENSATION AU-
THORITIES FOR DEPARTMENT OF DEFENSE 
RETIREES. 
(a) SOURCE OF PAYMENTS.—
(1) Section 1413(g) of title 10, United States 
Code, is amended—
(A) by inserting before ‘‘Payments under’’ 
the following new sentence: ‘‘Payments under 
this section for a member of the Army, Navy, Air 
Force, or Marine Corps shall be paid from the 
Department of Defense Military Retirement 
Fund.’’; and 
(B) by inserting ‘‘for any other member’’ 
before ‘‘for any fiscal year’’. 
(2) Section 1413a(h) of such title is amended—
(A) by inserting before ‘‘Payments under’’ 
the following new sentence: ‘‘Payments under 
this section for a member of the Army, Navy, Air 
Force, or Marine Corps shall be paid from the 
Department of Defense Military Retirement 
Fund.’’; and
177
(B) by inserting ‘‘for any other member’’ 
before ‘‘for any fiscal year’’. 
(b) PAYMENT
OF INCREASED RETIREMENT TRUST 
FUND COSTS DUE
TO CONCURRENT RECEIPT
OR EN-
HANCED
SPECIAL
DISABILITY
COMPENSATION
PAY-
MENTS.—
(1) Section 1463(a)(1) of this title is amended by 
inserting before the semicolon the following: ‘‘and 
payments under section 1413, 1413a, or 1414 of this 
title paid to such members’’. 
(2) Section 1465(b) of such title is amended by 
adding at the end the following new paragraph: 
‘‘(3) At the same time that the Secretary of Defense 
makes the determination required by paragraph (1) for any 
fiscal year, the Secretary shall determine the amount of the 
Treasury contribution to be made to the Fund for the next 
fiscal year under section 1466(b)(2)(D) of this title. That 
amount shall be determined in the same manner as the de-
termination under paragraph (1) of the total amount of De-
partment of Defense contributions to be made to the Fund 
during that fiscal year under section 1466(a) of this title, 
except that for purposes of this paragraph the Secretary, 
in making the calculations required by subparagraphs (A) 
and (B) of that paragraph, shall use the single level percent-
178
ages determined under subsection (c)(4), rather than those 
determined under subsection (c)(1).’’. 
(3) Section 1465(c) of such title is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting before 
the semicolon at the end the following: ‘‘, to be 
determined without regard to section 1413, 
1413a, or 1414 of this title’’; 
(ii) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘, to be 
determined without regard to section 1413, 
1413a, or 1414 of this title’’; and 
(iii) in the sentence following subparagraph 
(B), by striking ‘‘subsection (b)’’ and inserting 
‘‘subsection (b)(1)’’; 
(B) by redesignating paragraph (4) as para-
graph (5); and 
(C) by inserting after paragraph (3) the fol-
lowing new paragraph (4): 
‘‘(4) Whenever the Secretary carries out an actuarial 
valuation under paragraph (1), the Secretary shall include 
as part of such valuation the following: 
‘‘(A) A determination of a single level percentage 
determined in the same manner as applies under sub-
paragraph (A) of paragraph (1), but based only upon
179
the provisions of section 1413, 1413a, or 1414 of this 
title (whichever is in effect). 
‘‘(B) A determination of a single level percentage 
determined in the same manner as applies under sub-
paragraph (B) of paragraph (1), but based only upon 
the provisions of section 1413, 1413a, or 1414 of this 
title (whichever is in effect). 
Such single level percentages shall be used for the purposes 
of subsection (b)(3).’’. 
(4) Section 1466(b) of such title is amended—
(A) in paragraph (1), by striking ‘‘sections 
1465(a) 
and 
1465(c)’’ 
and 
inserting 
‘‘sections 
1465(a), 1465(b)(3), 1465(c)(2), and 1465(c)(3)’’; and 
(B) by adding at the end of paragraph (2) the 
following new subparagraph: 
‘‘(D) The amount for that year determined by 
the Secretary of Defense under section 1465(b)(3) of 
this title for the cost to the Fund arising from in-
creased amounts payable from the Fund by reason of 
section 1413, 1413a, or 1414 of this title.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2003.
180
Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits
SEC. 651. EXPANDED COMMISSARY ACCESS FOR SELECTED 
RESERVE 
MEMBERS, 
RESERVE 
RETIREES 
UNDER AGE 60, AND THEIR DEPENDENTS. 
(a) ACCESS
TO MILITARY COMMISSARIES.—Section 
1065 of title 10, United States Code, is amended—
(1) in subsections (a), (b), and (c), by inserting 
‘‘commissary stores and’’ after ‘‘use’’ each place it ap-
pears; and 
(2) in subsection (d)—
(A) by inserting ‘‘commissary stores and’’ 
after ‘‘use’’ the first and third places it appears; 
and 
(B) by inserting ‘‘stores and’’ after ‘‘use’’ 
the second and fourth places it appears. 
(b) CONFORMING AMENDMENTS; TRANSFER OF SEC-
TION.—Chapter 54 of such title is amended—
(1) by striking sections 1063 and 1064; 
(2) in section 1063a(c)(2), by striking ‘‘section 
1065(e)’’ and inserting ‘‘section 1063(e)’’; 
(3) by redesignating section 1063a, as amended 
by paragraph (2), as section 1064;
181
(4) by transferring section 1065, as amended by 
subsection (a), so as to appear after section 1062; and 
(5) by striking the heading of such section, as 
amended by subsection (a) and transferred by para-
graph (4), and inserting the following new heading: 
‘‘§ 1063. Use of commissary stores and MWR retail fa-
cilities: members of reserve components 
and reserve retirees under age 60’’. 
(c) CLERICAL AMENDMENTS.—The table of sections at 
the beginning of such chapter is amended by striking the 
items relating to sections 1063, 1063a, 1064, and 1065 and 
inserting the following new items:
‘‘1063. Use of commissary stores and MWR retail facilities: members of reserve 
components and reserve retirees under age 60. 
‘‘1064. Use of commissary stores and MWR retail facilities: members of National 
Guard serving in federally declared disaster or national emer-
gency.’’.
SEC. 652. DEFENSE COMMISSARY SYSTEM AND EXCHANGE 
STORES SYSTEM. 
(a) EXISTENCE OF SYSTEMS.—Chapter 147 of title 10, 
United States Code, is amended by inserting before section 
2482 the following new section:
‘‘§ 2481. Existence of defense commissary system and 
exchange stores system 
‘‘(a) IN GENERAL.—The Secretary of Defense shall op-
erate a defense commissary system and an exchange stores 
system in the manner provided by this chapter and other 
provisions of law.
182
‘‘(b) SEPARATE SYSTEMS.—Except as authorized by 
section 2490a of this title, the defense commissary system 
and the exchange stores system shall be operated as separate 
systems of the Department of Defense.’’.
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting before 
the item relating to section 2482 the following new item:
‘‘2481. Existence of defense commissary system and exchange stores system.’’.
SEC. 653. LIMITATIONS ON PRIVATE OPERATION OF DE-
FENSE COMMISSARY STORE FUNCTIONS. 
Section 2482(a) of title 10, United States Code, is 
amended—
(1) by striking the first and second sentences and 
inserting the following: ‘‘(1) Under such regulations 
as the Secretary of Defense may approve, private per-
sons may operate selected commissary store functions, 
except that such functions may not include functions 
relating to the procurement of products to be sold in 
a commissary store or functions relating to the overall 
management of a commissary system or the manage-
ment of a commissary store.’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) Any change to private operation of a commissary 
store function shall not take effect until the Secretary of 
Defense submits written notice of the proposed change to
183
Congress and a period of 90 days of continuous session of 
Congress expires following the date on which notice was re-
ceived, determined as provided in section 2486(d)(2) of this 
title.’’.
SEC. 654. USE OF APPROPRIATED FUNDS TO OPERATE DE-
FENSE COMMISSARY SYSTEM. 
(a) REQUIREMENT THAT COMMISSARY OPERATING 
EXPENSES BE PAID FROM APPROPRIATED FUNDS.—Sec-
tion 2484 of title 10, United States Code, is amended—
(1) in subsection (a), by striking ‘‘may’’ and in-
serting ‘‘shall’’; and 
(2) in subsection (b), by striking ‘‘may’’ in the 
first sentence and inserting ‘‘shall’’. 
(b) SUPPLEMENTAL FUNDS FOR COMMISSARY OPER-
ATIONS.—Such section is further amended by adding at the 
end the following new subsection: 
‘‘(c) SUPPLEMENTAL FUNDS FOR COMMISSARY OPER-
ATIONS.—Amounts appropriated to cover the expenses of 
operating the Defense Commissary Agency and the defense 
commissary system may be supplemented with additional 
funds from manufacturers’ coupon redemption fees, han-
dling fees for tobacco products, and other amounts received 
as reimbursement for other support activities provided by 
commissary activities.’’.
184
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2003.
SEC. 655. RECOVERY OF NONAPPROPRIATED FUND INSTRU-
MENTALITY AND COMMISSARY STORE IN-
VESTMENTS IN REAL PROPERTY AT MILITARY 
INSTALLATIONS CLOSED OR REALIGNED. 
(a) 1988 LAW.—Section 204(b)(7)(C)(i) of the Defense 
Authorization Amendments and Base Closure and Realign-
ment Act (Public Law 100–526; 10 U.S.C. 2687 note) is 
amended in the second sentence by striking ‘‘The Secretary 
may use amounts in the account (in such an aggregate 
amount as is provided in advance in appropriation Acts)’’ 
and inserting ‘‘Amounts in the account shall be available 
to the Secretary, without appropriation and until ex-
pended,’’. 
(b) 1990 LAW.—Section 2906(d)(3) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101–510; 10 U.S.C. 2687 note) is amended 
by striking ‘‘The Secretary may use amounts in the account 
(in such an aggregate amount as is provided in advance 
in appropriation Acts)’’ and inserting ‘‘Amounts in the ac-
count shall be available to the Secretary, without appro-
priation and until expended,’’.
185
SEC. 656. COMMISSARY SHELF-STOCKING PILOT PROGRAM. 
(a) PILOT PROGRAM AUTHORITY.—Subject to sub-
section (c), the Secretary of Defense may conduct a pilot 
program under which the stocking of shelves at three defense 
commissary stores operated by the Defense Commissary 
Agency shall be the sole responsibility of Federal employees 
of the Agency or employees contracted by the agency. 
(b) IMPLEMENTATION PLAN.—(1) The Secretary of De-
fense shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the 
House of Representatives a plan for the conduct of the pilot 
program. The plan shall be submitted not later than six 
months after the date of the enactment of this Act. 
(2) The plan shall include the following: 
(A) The financial structure of the pilot program 
and expected costs. 
(B) The Secretary’s request to the Office of Per-
sonnel Management to conduct the pilot program as 
a Federal civilian personnel demonstration project 
under chapter 47 of title 5, United States Code, or a 
plan to provide otherwise a sufficiently flexible Fed-
eral civilian workforce for the pilot program through 
another authority. 
(C) Specification of the three sites for the 
conduct of the pilot program and the criteria 
used to select those sites.
186
(D) Proposed duration of the pilot program 
and the expected timing for providing to Con-
gress the results of the pilot program and rec-
ommendations of the Secretary. 
(E) Other observations and recommenda-
tions of the Secretary. 
(c) IMPLEMENTATION.—The Secretary of Defense may 
not begin to conduct the pilot program until a period of 
30 days has elapsed after the date of the submission of the 
plan for the pilot program under subsection (b).
Subtitle F—Other Matters
SEC. 661. REPEAL OF CONGRESSIONAL NOTIFICATION RE-
QUIREMENT FOR DESIGNATION OF CRITICAL 
MILITARY SKILLS FOR RETENTION BONUS. 
Section 323(b) of title 37, United States Code, is 
amended—
(1) by striking ‘‘(1)’’; and 
(2) by striking paragraph (2).
187
TITLE VII—HEALTH CARE 
PROVISIONS
SEC. 701. REVISION OF DEPARTMENT OF DEFENSE MEDI-
CARE-ELIGIBLE RETIREE HEALTH CARE FUND 
TO PERMIT MORE ACCURATE ACTUARIAL 
VALUATIONS. 
Section 1115(c) of title 10, United States Code, is 
amended by adding at the end of paragraph (1) the fol-
lowing: ‘‘In determining single level dollar amounts under 
subparagraphs (A) and (B) of this paragraph, the Secretary 
of Defense may determine a separate single level dollar 
amount under either or both subparagraphs for any partici-
pating uniformed service, if, in the judgment of the Sec-
retary, such a determination would produce a more accu-
rate and appropriate actuarial valuation for that uni-
formed service.’’.
SEC. 702. TRANSFER OF CERTAIN MEMBERS FROM PHAR-
MACY AND THERAPEUTICS COMMITTEE TO 
UNIFORM FORMULARY BENEFICIARY ADVI-
SORY PANEL UNDER THE PHARMACY BENE-
FITS PROGRAM. 
Section 1074g of title 10, United States Code, is 
amended—
188
(1) in subsection (b)(1) in the second sentence, by 
striking ‘‘facilities,’’ and all that follows through the 
end of the sentence and inserting ‘‘facilities and rep-
resentatives of providers in facilities of the uniformed 
services.’’; and 
(2) in subsection (c)(2)—
(A) by striking ‘‘represent nongovern-
mental’’ and inserting the following: ‘‘rep-
resent—
‘‘(A) nongovernmental’’; 
(B) by striking the period at the end and 
inserting a semicolon; and 
(C) by adding at the end the following new 
subparagraphs: 
‘‘(B) contractors responsible for the TRICARE 
retail pharmacy program; 
‘‘(C) contractors responsible for the national 
mail-order pharmacy program; and 
‘‘(D) TRICARE network providers.’’.
189
SEC. 703. PERMANENT EXTENSION OF AUTHORITY TO 
ENTER 
INTO 
PERSONAL 
SERVICES 
CON-
TRACTS FOR THE PERFORMANCE OF HEALTH 
CARE 
RESPONSIBILITIES 
AT 
LOCATIONS 
OTHER THAN MILITARY MEDICAL TREAT-
MENT FACILITIES. 
Section 1091(a)(2) of title 10, United States Code, is 
amended by striking ‘‘The Secretary may not enter into a 
contract under this paragraph after December 31, 2003.’’.
SEC. 704. PLAN FOR PROVIDING HEALTH COVERAGE INFOR-
MATION TO MEMBERS, FORMER MEMBERS, 
AND DEPENDENTS ELIGIBLE FOR CERTAIN 
HEALTH BENEFITS. 
(a) HEALTH INFORMATION PLAN REQUIRED.—The 
Secretary of Defense shall develop a plan to—
(1) ensure that each household that includes one 
or more eligible persons is provided information con-
cerning—
(A) the extent of health coverage provided 
by sections 1079 or 1086 of title 10, United 
States Code, for each such person; 
(B) the costs, including the limits on such 
costs, that each such person is required to pay 
for such health coverage;
190
(C) sources of information for locating 
TRICARE-authorized providers in the house-
hold’s locality; and 
(D) methods to obtain assistance in resolv-
ing difficulties encountered with billing, pay-
ments, eligibility, locating TRICARE-authorized 
providers, collection actions, and such other 
issues as the Secretary considers appropriate; 
(2) provide mechanisms to ensure that each eligi-
ble person has access to information identifying 
TRICARE-authorized providers in the person’s local-
ity who have agreed to accept new patients under sec-
tion 1079 or 1086 of title 10, United States Code, and 
to ensure that such information is periodically up-
dated; 
(3) provide mechanisms to ensure that each eligi-
ble person who requests assistance in locating a 
TRICARE-authorized provider is provided such as-
sistance; 
(4) provide information and recruitment mate-
rials and programs aimed at attracting participation 
of health care providers as necessary to meet health 
care access requirements for all eligible persons; and 
(5) provide mechanisms to allow for the periodic 
identification by the Department of Defense of the
191
number and locality of eligible persons who may in-
tend to rely on TRICARE-authorized providers for 
health care services. 
(b) IMPLEMENTATION OF PLAN.—The Secretary of De-
fense shall implement the plan required by subsection (a) 
with respect to any contract entered into by the Department 
of Defense after May 31, 2003, for managed health care. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘eligible person’’ means a person 
eligible for health benefits under section 1079 or 1086 
of title 10, United States Code. 
(2) The term ‘‘TRICARE-authorized provider’’ 
means a facility, doctor, or other provider of health 
care services—
(A) 
that 
meets 
the 
licensing 
and 
credentialing certification requirements in the 
State where the services are rendered; 
(B) that meets requirements under regula-
tions relating to TRICARE for the type of health 
care services rendered; and 
(C) that has accepted reimbursement by the 
Secretary of Defense as payment for services ren-
dered during the 12-month period preceding the 
date of the most recently updated provider infor-
192
mation provided to households under the plan re-
quired by subsection (a).
(d) SUBMISSION OF PLAN.—Not later than March 31, 
2004, the Secretary shall submit to the Committees on 
Armed Services of the Senate and House of Representatives 
the plan required by subsection (a), together with a schedule 
for implementation of the plan.
SEC. 705. WORKING GROUP ON MILITARY HEALTH CARE 
FOR PERSONS RELIANT ON HEALTH CARE FA-
CILITIES AT MILITARY INSTALLATIONS TO BE 
CLOSED OR REALIGNED. 
Section 722 of the National Defense Authorization Act 
for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 1073 
note) is amended by striking subsections (a), (b), (c), and 
(d) and inserting the following new subsections: 
‘‘(a) ESTABLISHMENT.—Not later than December 31, 
2003, the Secretary of Defense shall establish a working 
group on the provision of military health care to persons 
who rely for health care on health care facilities located at 
military installations—
‘‘(1) inside the United States that are selected for 
closure or realignment in the 2005 round of realign-
ments and closures authorized by sections 2912, 2913, 
and 2914 of the Defense Base Closure and Realign-
ment Act of 1990 (part A of title XXIX of Public Law
193
101–510; 10 U.S.C. 2687 note), as added by title 
XXX of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107–107; 155 Stat. 
1342); or 
‘‘(2) outside the United States that are selected 
for closure or realignment as a result of force posture 
changes. 
‘‘(b) MEMBERSHIP.—The members of the working 
group shall include, at a minimum, the following: 
‘‘(1) The Assistant Secretary of Defense of 
Health Affairs, or the designee of the Assistant Sec-
retary. 
‘‘(2) The Surgeon General of the Army, or the 
designee of that Surgeon General. 
‘‘(3) The Surgeon General of the Navy, or the 
designee of that Surgeon General. 
‘‘(4) The Surgeon General of the Air Force, or 
the designee of that Surgeon General. 
‘‘(5) At least one independent member from each 
TRICARE region, but not to exceed a total of 12 
members appointed under this paragraph, whose ex-
perience in matters within the responsibility of the 
working group qualify that person to represent per-
sons authorized health care under chapter 55 of title 
10, United States Code.
194
‘‘(c) DUTIES.—(1) In developing the selection criteria 
and recommendations for the 2005 round of realignments 
and closures required by sections 2913 and 2914 of the De-
fense Base Closure and Realignment Act of 1990, the Sec-
retary of Defense shall consult with the working group. 
‘‘(2) The working group shall be available to provide 
assistance to the Defense Base Closure and Realignment 
Commission. 
‘‘(3) In the case of each military installation referred 
to in paragraph (1) or (2) of subsection (a) whose closure 
or realignment will affect the accessibility to health care 
services for persons entitled to such services under chapter 
55 of title 10, United States Code, the working group shall 
provide to the Secretary of Defense a plan for the provision 
of the health care services to such persons. 
‘‘(d) SPECIAL CONSIDERATIONS.—In carrying out its 
duties under subsection (c), the working group—
‘‘(1) shall conduct meetings with persons entitled 
to health care services under chapter 55 of title 10, 
United States Code, or representatives of such per-
sons; 
‘‘(2) may use reliable sampling techniques; 
‘‘(3) may visit the areas where closures or re-
alignments of military installations will adversely af-
195
fect the accessibility of health care for such persons 
and may conduct public meetings; and 
‘‘(4) shall ensure that members of the uniformed 
services on active duty, members and former members 
of the uniformed services entitled to retired or re-
tainer pay, and dependents and survivors of such 
members and retired personnel are afforded the oppor-
tunity to express their views.’’.
SEC. 706. ACCELERATION OF IMPLEMENTATION OF CHIRO-
PRACTIC HEALTH CARE FOR MEMBERS ON 
ACTIVE DUTY. 
The Secretary of Defense shall accelerate the implemen-
tation of the plan required by section 702 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 
2001 (Public Law 106–398) (relating to chiropractic health 
care services and benefits), with a goal of completing imple-
mentation of the plan by October 1, 2005.
SEC. 707. MEDICAL AND DENTAL SCREENING FOR MEMBERS 
OF SELECTED RESERVE UNITS ALERTED FOR 
MOBILIZATION. 
Section 1074a of title 10, United States Code, is 
amended by adding at the end the following new subsection: 
‘‘(f)(1) The Department of Defense may provide med-
ical and dental screening and care to members of the Se-
lected Reserve who are assigned to a unit that has been
196
alerted that the unit will be mobilized for active duty in 
support of an operational mission or contingency operation, 
during a national emergency, or in a time of war. 
‘‘(2) The medical and dental screening and care that 
may be provided under this subsection is screening and care 
necessary to ensure that a member meets the medical and 
dental standards for required deployment. 
‘‘(3) The services provided under this subsection shall 
be provided to a member at no cost to the member and at 
any time after the unit to which the member is assigned 
is alerted or otherwise notified that the unit will be mobi-
lized.’’.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Amendments to General 
Contracting Authorities, Proce-
dures, and Limitations
SEC. 801. EXTENSION OF AUTHORITY TO CARRY OUT CER-
TAIN PROTOTYPE PROJECTS. 
Section 845 of the National Defense Authorization Act 
for Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 
note) is amended in subsection (g) by striking ‘‘September 
30, 2004’’ and inserting ‘‘September 30, 2008’’.
197
SEC. 802. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFI-
CATION REQUIREMENTS. 
Subsection (e) of section 2306 of title 10, United States 
Code, is amended—
(1) by striking ‘‘(A)’’ and ‘‘(B)’’ and inserting 
‘‘(i)’’ and ‘‘(ii)’’, respectively; 
(2) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, 
(3) by striking ‘‘Each’’ and inserting ‘‘(1) Ex-
cept as provided in paragraph (2), each’’; and 
(4) by adding at the end the following new para-
graph: 
‘‘(2) Paragraph (1) shall not apply to a prime contract 
with a contractor that maintains a purchasing system ap-
proved by the contracting officer for the contract.’’.
SEC. 803. ELIMINATION OF REQUIREMENT TO FURNISH 
WRITTEN ASSURANCES OF TECHNICAL DATA 
CONFORMITY. 
Section 2320(b) of title 10, United States Code, is 
amended—
(1) by striking paragraph (7); and 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (7) and (8), respectively.
198
SEC. 804. LIMITATION PERIOD FOR TASK AND DELIVERY 
ORDER CONTRACTS. 
(a) IN GENERAL.—Chapter 137 of title 10, United 
States Code, is amended—
(1) in section 2304a—
(A) in subsection (e)—
(i) by inserting ‘‘(1)’’ before ‘‘A task’’; 
and 
(ii) by adding at the end the following 
new paragraphs: 
‘‘(2) Unless use of procedures other than competitive 
procedures is authorized by an exception in subsection (c) 
of section 2304 of this title and approved in accordance 
with subsection (f) of such section, competitive procedures 
shall be used for making such a modification. 
‘‘(3) Notice regarding the modification shall be pro-
vided in accordance with section 18 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 416) and section 8(e) 
of the Small Business Act (15 U.S.C. 637(e)).’’; and 
(B) by striking subsection (f) and inserting 
the following: 
‘‘(f) LIMITATION ON CONTRACT PERIOD.—The base pe-
riod of a task order contract or delivery order contract en-
tered into under this section may not exceed five years un-
less a longer period is specifically authorized in a law that 
is applicable to such contract. The contract may be extended
199
for an additional 5 years (for a total contract period of 
not more than 10 years) through modifications, options, or 
otherwise.’’; and 
(2) in section 2304b—
(A) by striking subsection (a) and inserting 
the following: 
‘‘(a) IN GENERAL.—A task order contract (as defined 
in section 2304d of this title) for procurement of advisory 
and assistance services shall be subject to the requirements 
of this section, sections 2304a and 2304c of this title, and 
other applicable provisions of law.’’; 
(B) by striking subsections (b), (f), and (g) 
and redesignating subsections (c), (d), (e), (h), 
and (i) as subsections (b) through (f); 
(C) by amending subsection (c) (as redesig-
nated by subparagraph (B)) to read as follows: 
‘‘(c) REQUIRED CONTENT
OF CONTRACT.—A task 
order contract described in subsection (a) shall contain the 
same information that is required by section 2304a(b) to 
be included in the solicitation of offers for that contract.’’; 
and 
(D) in subsection (d) (as redesignated by 
subparagraph (B))—
200
(i) in paragraph (1), by striking 
‘‘under this section’’ and inserting ‘‘de-
scribed in subsection (a)’’; and 
(ii) in paragraph (2), by striking 
‘‘under this section’’. 
(b) REPEALS.—(1) Subsection (g) of section 2306c of 
title 10, United States Code, is repealed. 
(2) Subsection (c) of section 811 of the Bob Stump Na-
tional Defense Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–314; 116 Stat. 2608) is repealed.
SEC. 805. ADDITIONAL AUTHORITIES RELATING TO OBTAIN-
ING PERSONAL SERVICES. 
(a) IN GENERAL.—Section 129b of title 10, United 
States Code, is amended—
(1) in subsection (a)(1), by striking ‘‘in accord-
ance with section 3109 of title 5’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(d) ADDITIONAL AUTHORITY.—(1) In addition to the 
authority provided under subsection (a), the Secretary of 
Defense may enter into personal services contracts with in-
dividuals, regardless of their nationality, outside of the 
United States. 
‘‘(2) The contracting officer for a personal services con-
tract shall be responsible for ensuring that a personal serv-
201
ices contract is the appropriate vehicle for carrying out the 
purpose of the contract.’’. 
(b) INTELLIGENCE COMPONENTS.—(1) Subchapter I of 
chapter 21 of title 10, United States Code, is amended by 
adding at the end the following new section:
‘‘§ 426. Personal services contracts: authority and lim-
itations 
‘‘(a) PERSONAL SERVICES.—(1) The Secretary of De-
fense may, notwithstanding section 3109 of title 5, enter 
into personal services contracts in the United States if the 
personal services directly support the mission of a defense 
intelligence component or counter-intelligence organization. 
‘‘(2) The contracting officer for a personal services con-
tract shall be responsible for ensuring that a personal serv-
ices contract is the appropriate vehicle for carrying out the 
purpose of the contract.
‘‘(b) DEFINITION.—In this section, the term ‘defense 
intelligence component’ means a component of the Depart-
ment of Defense that is an element of the intelligence com-
munity, as defined in section 3(4) of the National Security 
Act of 1947 (50 U.S.C. 401a(4)).’’.
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following new 
item:
‘‘426. Personal services contracts: authority and limitations.’’.
202
(c) SPECIAL OPERATIONS COMMAND.—Section 167 of 
title 10, United States Code, is amended by adding at the 
end the following new subsection: 
‘‘(l) PERSONAL SERVICES CONTRACTS.—(1) The Sec-
retary of Defense may, notwithstanding section 3109 of title 
5, enter into personal services contracts in the United States 
if the personal services directly support the mission of the 
special operations command. 
‘‘(2) The contracting officer for a personal services con-
tract shall be responsible for ensuring that a personal serv-
ices contract is the appropriate vehicle for carrying out the 
purpose of the contract.’’.
SEC. 806. EVALUATION OF PROMPT PAYMENT PROVISIONS. 
(a) EVALUATION REQUIREMENT.—The Secretary of 
Defense shall evaluate provisions of law and regulation re-
lating to the prompt payment of amounts due contractors 
under contracts with the Department of Defense. 
(b) MATTERS COVERED.—In carrying out such evalua-
tion, the Secretary shall focus in particular on the imple-
mentation of prompt payment provisions with respect to 
small businesses, including—
(1) an analysis of compliance by the Department 
of Defense with chapter 39 of title 31, United States 
Code, and regulations applicable to the Department of
203
Defense under that chapter, with respect to small 
business contractors; 
(2) a determination of the number of Depart-
ment of Defense contracts with small businesses that 
are not in compliance with prompt payment require-
ments; and 
(3) a determination of the average length of time 
that elapses between performance of work by small 
business contractors under Department of Defense 
contracts and payment for such work.
Subtitle B—United States Defense 
Industrial Base Provisions
Part I—Critical Items Identification and Domestic 
Production Capabilities Improvement Program
SEC. 811. ASSESSMENT OF UNITED STATES DEFENSE IN-
DUSTRIAL BASE CAPABILITIES. 
(a) ASSESSMENT PROGRAM.—The Secretary of De-
fense, in coordination with the Secretary of each military 
department, shall establish a program to assess the capabili-
ties of the United States defense industrial base to produce 
military systems necessary to support national security re-
quirements. 
(b) DESIGNEE.—The Secretary of each military de-
partment shall designate a position to be responsible for as-
sisting in carrying out the program under subsection (a)
204
with respect to the military department concerned. The per-
son designated to serve in such position shall do the fol-
lowing: 
(1) Report to the Service Acquisition Executive 
of the military department concerned on defense in-
dustrial base matters affecting the acquisition and 
production of military systems. 
(2) Provide information to assist the Secretary of 
Defense in carrying out the Secretary’s duties as a 
member of the National Defense Technology and In-
dustrial Base Council (as established under section 
2502 of title 10, United States Code). 
(3) Oversee the collection of data to assist the 
Secretary of Defense in carrying out subsection (c). 
(4) Oversee the process for identifying and deter-
mining critical items to assist the Secretary of De-
fense in carrying out section 812. 
(c) COLLECTION OF DATA.—The Secretary of Defense 
shall collect data in support of the program. At a min-
imum, with respect to each procurement for a covered mili-
tary system, the following information shall be collected: 
(1) With respect to the contractor awarded the 
contract: 
(A) An identification of the critical item or 
items included in the covered military system
205
and whether the item is of a domestic or foreign 
source. 
(B) Whether the contractor is a foreign con-
tractor, and, if so—
(i) whether the contract was awarded 
on a sole source basis because of the un-
availability of responsible offerors with 
United States production capabilities; or 
(ii) whether the contract was awarded 
after receipt of offers from responsible 
offerors with United States production ca-
pabilities. 
(C) Whether the contractor is a United 
States contractor, and, if the contractor plans to 
perform work under the contract outside the 
United States, an identification of the locations 
where the work (including research, development, 
and manufacturing) will be performed. 
(2) With respect to the offerors submitting bids 
or proposals (other than the offeror awarded the con-
tract): 
(A) An identification of the critical item or 
items included in the covered military system 
and whether the item is of a domestic or foreign 
source.
206
(B) An identification of the domestic and 
foreign offerors and the locations where the work 
(including research, development, and manufac-
turing) was proposed to be performed under the 
contract. 
(C) A statement of whether there were no 
offerors or whether there was only one offeror. 
(d) CONFIDENTIALITY.—The Secretary of Defense shall 
make every effort to ensure that the information collected 
under this section from private sector entities remains con-
fidential. 
(e) ASSESSMENT.—The Secretary of Defense shall pre-
pare an assessment of the data compiled under this section 
during every two-year period and shall submit the results 
of the assessment to the Committees on Armed Services of 
the Senate and the House of Representatives. The first such 
assessment shall cover the period of fiscal Year 2002 and 
fiscal Year 2003 and shall be submitted to the Committees 
no later than November 1, 2004. 
SEC. 812. IDENTIFICATION OF CRITICAL ITEMS: MILITARY 
SYSTEM BREAKOUT LIST. 
(a) IDENTIFICATION PROCESS.—The Secretary of De-
fense shall establish a process to identify, with respect to 
each military system—
207
(1) the items and components within the mili-
tary system; 
(2) the items and components within the mili-
tary system that are essential, in accordance with 
subsection (c); and 
(3) the items and components within the mili-
tary system that are critical, in accordance with sub-
section (d). 
(b) MILITARY SYSTEM BREAKOUT LIST.—The Sec-
retary of Defense shall produce a list, to be known as the 
‘‘military system breakout list’’, consisting of the items and 
components identified under the process established under 
subsection (a). 
(c) ESSENTIAL ITEMS AND COMPONENTS.—For pur-
poses of determining whether an item or component is es-
sential, the Secretary shall include only an item or compo-
nent that—
(1) is essential for the proper functioning and 
performance of the military system of which the item 
or component is a part; or 
(2) involves a critical technology (as defined in 
section 2500 of title 10, United States Code). 
(d) CRITICAL ITEMS OR COMPONENTS.—(1) For pur-
poses of determining whether an item or component is crit-
208
ical, the Secretary shall include only an item or component 
that—
(A) is essential, as determined under subsection 
(c); and 
(B) with respect to which there is a high barrier 
to entry for the production of the item or component. 
(2) For purposes of paragraph (1)(B), a high barrier 
to entry for the production of an item or component means 
that—
(A) there would be a significant period of time 
required to reestablish United States production capa-
bilities; and 
(B) the level of investment necessary to reestab-
lish United States production capabilities that are 
able to meet surge and sustained production rates for 
wartime requirements is significant. 
(e) REPORT.—Not later than November 1 of each year, 
beginning with November 1, 2004, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
implementation of this section. The report shall include the 
following: 
(1) A list of each military system covered by the 
process established under subsection (a).
209
(2) A list of items and components determined to 
be essential. 
(3) A list of items and components determined to 
be critical. 
(4) A list of the items and components contained 
in the lists provided under paragraphs (2) and (3) 
that are manufactured or produced outside the United 
States. 
SEC. 813. PROCUREMENT OF CERTAIN CRITICAL ITEMS 
FROM AMERICAN SOURCES. 
(a) REQUIREMENT FOR PROCUREMENT OF CERTAIN 
CRITICAL ITEMS PRODUCED IN UNITED STATES.—With re-
spect to items that meet the criteria set forth in subsection 
(b), the Secretary of Defense may procure such items only 
if the items are entirely produced in the United States. 
(b) CRITERIA.—For purposes of subsection (a), an 
item meets the criteria of this subsection if—
(1) it is a critical item; and 
(2) there are limited sources of production capa-
bility of the item in the United States. 
(c) EXCEPTION.—Subsection (a) does not apply to a 
procurement of an item when the Secretary of Defense deter-
mines in writing that the Department of Defense’s need for 
the item is of such an unusual and compelling urgency that 
the United States would be seriously injured unless the De-
210
partment is permitted to procure the item from sources out-
side the United States. 
(d) APPLICABILITY.—Subsection (a) shall apply to 
contracts for the procurement of covered military systems 
and subcontracts under such contracts. 
SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR 
CERTAIN CRITICAL ITEMS USING DEFENSE 
INDUSTRIAL BASE CAPABILITIES FUND. 
(a) ESTABLISHMENT OF FUND.—There is established 
in the Treasury of the United States a separate fund to 
be known as the Defense Industrial Base Capabilities Fund 
(hereafter in this section referred to as the‘Fund’). 
(b) MONEYS IN FUND.—There shall be credited to the 
Fund amounts appropriated to it. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Fund $100,000,000 for 
fiscal year 2004. 
(d) USE OF FUND.—The Secretary of Defense is au-
thorized to use all amounts in the Fund, subject to appro-
priation, for the purposes of establishing capabilities within 
the United States to produce critical items that meet any 
of the following criteria: 
(1) The item is available only from foreign con-
tractors.
211
(2) The item is available only from a limited 
number of United States contractors. 
(e) LIMITATION ON USE OF FUND.—Before the obliga-
tion of any amounts in the Fund, the Secretary of Defense 
shall submit to Congress a report describing the Secretary’s 
plans for implementing the Fund established in subsection 
(a), including the priorities for the obligation of amounts 
in the Fund, the criteria for determining the recipients of 
such amounts, and the mechanisms through which such 
amounts may be provided to the recipients. 
(f) AVAILABILITY OF FUNDS.—Amounts in the Fund 
shall remain available until expended. 
(g) FUND MANAGER.—The Secretary of Defense shall 
designate a Fund manager. The duties of the Fund manager 
shall include—
(1) ensuring the visibility and accountability of 
transactions engaged in through the Fund; and 
(2) reporting to Congress each year regarding ac-
tivities of the Fund during the previous fiscal year.
Part II—Requirements Relating to Specific Items
SEC. 821. DOMESTIC SOURCE LIMITATION AMENDMENTS. 
(a) ADDITIONAL ITEMS.—Section 2534(a) of title 10, 
United States Code, is amended by adding at the end of 
the following new paragraphs: 
‘‘(6) Fuzes used for ordnance.
212
‘‘(7) Microwave power tubes or traveling wave 
tubes. 
‘‘(8) PAN carbon fiber. 
‘‘(9) Aircraft tires. 
‘‘(10) Ground vehicle tires. 
‘‘(11) Tank track assemblies. 
‘‘(12) Tank track components. 
‘‘(13) Packaging in direct contact with meals 
within meals ready-to-eat listed in Federal Supply 
Class 8970.’’. 
(b) AMENDMENT OF NATIONAL TECHNOLOGY AND IN-
DUSTRIAL BASE.—Paragraph (1) of section 2500 of title 
10, United States Code, is amended—
(1) by striking all that follows after ‘‘States’’ to 
the end of the paragraph and inserting a period; and 
(2) by striking ‘‘production, or maintenance’’ 
and inserting ‘‘production, and maintenance’’. 
(c) AMENDMENT
OF WAIVER AUTHORITY.—Section 
2534(d) of title 10, United States Code, is amended—
(1) in the text before paragraph (1), by inserting 
‘‘in writing’’ after ‘‘determines’’; 
(2) by striking paragraphs (1), (2), (3), (6), (7), 
and (8); 
(3) by redesignating paragraphs (4) and (5) as 
paragraphs (2) and (3), respectively, and in such
213
paragraph (3), as so redesignated, by adding at the 
end the following: ‘‘This exception shall not apply to 
items determined to be critical by the Secretary of De-
fense under section 812 of the National Defense Au-
thorization Act for Fiscal Year 2004.’’; and 
(4) by inserting before paragraph (2), as so re-
designated, the following new paragraph (1): 
‘‘(1) The Department of Defense’s need for the 
item is of such an unusual and compelling urgency 
that the United States would be seriously injured un-
less the Department is permitted to procure the item 
from sources outside the United States.’’.
SEC. 822. REQUIREMENTS RELATING TO BUYING COMMER-
CIAL ITEMS CONTAINING SPECIALTY METALS 
FROM AMERICAN SOURCES. 
(a) SPECIALTY METALS
AND OTHER INDUSTRIAL 
BASE PROTECTION MEASURES.—(1) Subsection (b) of sec-
tion 2533a of title 10, United States Code, is amended—
(A) in paragraph (1)(B), by inserting before the 
semicolon the following: ‘‘and the materials and com-
ponents thereof’’; and 
(B) in paragraph (2), by inserting before the pe-
riod the following: ‘‘ and any specialty metal that 
may be part of another item’’. 
(2) Subsection (c) is amended—
214
(A) by striking ‘‘or the Secretary of the military 
department concerned’’; and 
(B) by adding at the end the following: ‘‘For 
each such determination, the Secretary of Defense 
shall notify Congress in writing of the factors sup-
porting the determination.’’. 
(3) Section 2533a of such title is amended by adding 
at the end the following new subsection: 
‘‘(l) AUTHORITY NOT DELEGABLE.—The Secretary 
may not delegate any authority under this section to any-
one other than the Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics.’’. 
(b) EXCEPTION TO BERRY AMENDMENT FOR COMMER-
CIAL ITEMS CONTAINING SPECIALTY METALS.—Section 
2533a of title 10, United States Code, is amended—
(1) by redesignating subsections (i) and (j) as 
subsections (j) and (k), respectively; and 
(2) by inserting after subsection (h) the following 
new subsection: 
‘‘(i) EXCEPTION FOR COMMERCIAL ITEMS CONTAINING 
SPECIALTY METALS.—
‘‘(1) IN GENERAL.—Subsection (a) does not 
apply to the procurement of a commercial item con-
taining specialty metals if—
215
‘‘(A) the contractor agrees to comply with 
the requirement set forth in paragraph (2); or 
‘‘(B) the Secretary of Defense determines in 
writing that the Department of Defense’s need 
for the commercial item containing specialty 
metal is of such an unusual and compelling ur-
gency that the United States would be seriously 
injured unless the Department is permitted to 
procure the item containing specialty metal from 
outside the United States. 
‘‘(2) REQUIREMENT TO PURCHASE EQUIVALENT 
AMOUNT
OF
DOMESTIC
METAL.—For purposes of 
paragraph (1)(A), the requirement set forth in this 
paragraph is that the contractor for each contract en-
tered into by the Secretary for the procurement of a 
commercial item containing specialty metal agrees to 
purchase, over the 18-month period beginning on the 
date of award of the contract, an amount of specialty 
metal that is—
‘‘(A) produced, including such functions as 
melting and smelting, in the United States; and 
‘‘(B) equivalent to—
‘‘(i) the amount of specialty metal 
(measured by factors including volume, 
type, and grade) purchased to carry out the
216
work under the contract (including the work 
under each subcontract at any tier under 
the contract); plus 
‘‘(ii) 10 percent of the amount referred 
to in clause (i). 
‘‘(3) RELATIONSHIP TO OTHER EXCEPTIONS.—
The exceptions under subsections (c), (d), and (h) of 
this section shall not apply to the procurement of a 
commercial item containing specialty metals.
‘‘(4) NOTICE TO CONGRESS.—The Secretary of 
Defense shall not enter into a contract to procure a 
commercial item containing specialty metal pursuant 
to the exception in subsection (a) until Congress is 
notified that the Secretary has applied the exception 
and a period of 15 days has expired after such notifi-
cation is made. 
‘‘(5) NOTICE TO INDUSTRY.—The Secretary of 
Defense shall publish a notice in the Federal Register 
on the method that the Department of Defense will use 
to measure an equivalent amount of specialty metal 
for purposes of this subsection. Such a method shall 
consider factors such as volume, type, and grade of 
specialty metal that otherwise would be produced 
from United States sources.’’.
217
(c) REMOVAL
OF SPECIALTY METAL FROM SUB-
SECTION (e) EXCEPTION.—Subsection (e) of such section is 
amended—
(1) in the heading, by striking ‘‘SPECIALTY MET-
ALS AND’’; and 
(2) by striking ‘‘specialty metals or’’. 
(d) CONFORMING AMENDMENT.—Subsection (a) of sec-
tion 2533a of such title is amended by striking ‘‘through 
(h)’’ and inserting ‘‘through (i)’’. 
(e) EFFECTIVE DATE.—Section 2533a(i) of title 10, 
United States Code, as added by subsection (a), shall apply 
to each contract for the procurement of a commercial item 
containing specialty metal entered into before, on, or after 
the date of the enactment of this Act. 
SEC. 823. ELIMINATION OF UNRELIABLE SOURCES OF DE-
FENSE ITEMS AND COMPONENTS. 
(a) IDENTIFICATION OF CERTAIN COUNTRIES.—The 
Secretary of Defense shall identify foreign countries that, 
by law, policy, or regulation, restricted the provision or sale 
of military goods or services to the United States because 
of United States policy toward, or military operations in, 
Iraq since September 12, 2002. 
(b) PROHIBITION
ON PROCUREMENT
OF CERTAIN 
ITEMS FROM IDENTIFIED COUNTRIES.—The Secretary of 
Defense may not procure any items or components con-
218
tained in military systems if the items or components, or 
the systems, are manufactured in any foreign country iden-
tified under subsection (a). 
(c) WAIVER AUTHORITY.—The Secretary of Defense 
may waive the limitation in subsection (b) if the Secretary 
determines in writing and notifies Congress that the De-
partment of Defense’s need for the item is of such an un-
usual and compelling urgency that the United States would 
be seriously injured unless the Department is permitted to 
procure the item from the sources identified in subsection 
(a). 
(d) EFFECTIVE DATE.—(1) Subject to paragraph (2), 
subsection (b) applies to contracts in existence on the date 
of the enactment of this Act or entered into after such date. 
(2) With respect to contracts in existence on the date 
of the enactment of this Act, the Secretary of Defense shall 
take such action as is necessary to ensure that such con-
tracts are in compliance with subsection (b) not later than 
24 months after such date.
SEC. 824. CONGRESSIONAL NOTIFICATION REQUIRED BE-
FORE EXERCISING EXCEPTION TO REQUIRE-
MENT TO BUY SPECIALTY METALS FROM 
AMERICAN SOURCES. 
Section 2533a(c) of title 10, United States Code, is 
amended by adding at the end the following new sentence:
219
‘‘The Secretary of Defense or the Secretary of the military 
department concerned may not procure specialty metals 
pursuant to the exception authorized by this subsection 
until the Secretary submits to Congress and publishes in 
the Federal Register notice of the determination made under 
this subsection and a period of 15 days expires after the 
date such notification is submitted.’’.
SEC. 825. REPEAL OF AUTHORITY FOR FOREIGN PROCURE-
MENT OF PARA-ARAMID FIBERS AND YARNS. 
Section 807 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105–
261; 112 Stat. 2084) is repealed.
SEC. 826. REQUIREMENT FOR MAJOR DEFENSE ACQUISI-
TION PROGRAMS TO USE MACHINE TOOLS 
ENTIRELY PRODUCED WITHIN THE UNITED 
STATES. 
(a) IN GENERAL.—(1) Chapter 144 of title 10, United 
States Code, is amended by inserting after section 2435 the 
end the following new section:
‘‘§ 2436. Major defense acquisition programs: require-
ment for certain items to be entirely pro-
duced in United States 
‘‘The Secretary of Defense shall require that, for any 
procurement of a major defense acquisition program—
220
‘‘(1) the contractor for the procurement shall use 
only machine tools entirely produced within the 
United States to carry out the contract; and 
‘‘(2) any subcontractor under the contract shall 
comply with paragraph (1) in the case of any con-
tract in an amount that is $5,000,000 or greater.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘2436. Major defense acquisition programs: requirement for certain items to be 
entirely produced in United States.’’.
(b) EFFECTIVE DATE.—Section 2436 of title 10, 
United States Code, as added by subsection (a), shall apply 
with respect to contracts entered into after the date occur-
ring four years after the date of the enactment of this Act.
Part III—General Provisions
SEC. 831. DEFINITIONS. 
In this subtitle: 
(1) COVERED
MILITARY
SYSTEM.—The term 
‘‘covered military system’’ means a military system 
that includes one or more critical items. 
(2) MILITARY SYSTEM.—The term ‘‘military sys-
tem’’ means a military system necessary to support 
national security requirements, as determined by the 
Secretary of Defense, and which costs more than 
$25,000. At a minimum, the term includes the fol-
lowing:
221
(A) Weapons listed in Federal Supply 
Group 10. 
(B) Nuclear ordnance listed in Federal 
Supply Group 11. 
(C) Fire control equipment listed in Federal 
Supply Group 12. 
(D) Ammunition and explosives listed in 
Federal Supply Group 13. 
(E) Guided missiles listed in Federal Sup-
ply Group 14. 
(F) Aircraft and related components, acces-
sories, and equipment listed in Federal Supply 
Groups 15, 16, and 17. 
(G) Space vehicles listed in Federal Supply 
Group 18. 
(H) Ships, small craft, pontoons, and float-
ing docks listed in Federal Supply Group 19. 
(I) Ship and marine equipment listed in 
Federal Supply Group 20. 
(J) Tracked combat vehicles listed in Fed-
eral Supply Class 2350. 
(K) Engines, turbines, and components list-
ed in Federal Supply Group 28.
222
(3) CRITICAL ITEM.—The term ‘‘critical item’’ 
means an item or component determined to be critical 
by the Secretary of Defense under section 812. 
(4) ITEM.—The term ‘‘item’’ means an end item. 
(5) COMPONENT.—The term ‘‘component’’ means 
an article, material, or supply incorporated into an 
end item. The term includes software and subassem-
blies. 
(6) FOREIGN CONTRACTOR.—The term ‘‘foreign 
contractor’’ means a contractor or subcontractor orga-
nized or existing under the laws of a country other 
than the United States. 
(7) UNITED
STATES
CONTRACTOR.—The term 
‘‘United States contractor’’ means a contractor or 
subcontractor organized or existing under the laws of 
the United States. 
(8) UNITED
STATES
PRODUCTION
CAPABILI-
TIES.—The term ‘‘United States production capabili-
ties’’ means, with respect to an item or component, 
facilities located in the United States to design, de-
velop, or manufacture the item or component.
223
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. 
(a) CHANGE IN TITLE.—The position of the Secretary 
of the Navy is hereby redesignated as the Secretary of the 
Navy and Marine Corps. 
(b) REFERENCES.—Any reference to the Secretary of 
the Navy in any law, regulation, document, record, or other 
paper of the United States shall be considered to be a ref-
erence to the Secretary of the Navy and Marine Corps.
SEC. 902. REDESIGNATION OF NATIONAL IMAGERY AND 
MAPPING 
AGENCY 
AS 
NATIONAL 
GEOSPATIAL-INTELLIGENCE AGENCY. 
(a) REDESIGNATION.—The National Imagery and 
Mapping Agency of the Department of Defense is hereby 
redesignated as the National Geospatial-Intelligence Agen-
cy. 
(b) DEFINITION OF GEOSPATIAL INTELLIGENCE.—Sec-
tion 467 of title 10, United States Code, is amended by add-
ing at the end the following new paragraph: 
‘‘(5) The term ’geospatial intelligence’ means the 
exploitation and analysis of imagery and geospatial
224
information to describe, assess, and visually depict 
physical features and geographically referenced activi-
ties on the earth. Geospatial intelligence consists of 
imagery, imagery intelligence, and geospatial infor-
mation.’’. 
(c) AGENCY MISSIONS.—(1) Section 442(a) of title 10, 
United States Code, is amended—
(A) in paragraph (1), by inserting ‘‘geospatial 
intelligence consisting of’’ after ‘‘provide’’; and 
(B) in paragraph (2), by striking ‘‘Imagery, 
intelligency, 
and 
information’’ 
and 
inserting 
‘‘Geospatial intelligence’’. 
(2) Section 110(a) of the National Security Act of 1947 
(50 U.S.C. 404e(a)) is amended by striking ‘‘imagery’’ and 
inserting ‘‘geospatial intelligence’’. 
(d) CONFORMING AMENDMENTS TO TITLE 10, UNITED 
STATES CODE.—Title 10, United States Code, is amended 
as follows: 
(1) The heading of chapter 22 is amended to 
read as follows: 
‘‘CHAPTER 22—NATIONAL GEOSPATIAL-
INTELLIGENCE AGENCY’’. 
(2) Chapter 22 is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ each place it appears and in-
225
serting ‘‘National Geospatial-Intelligence Agen-
cy’’; and 
(B) in section 453(b), by striking ‘‘NIMA’’ 
in paragraphs (1) and (2) and inserting ‘‘NGA’’. 
(3) Section 193 is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ in subsections (d)(1), (d)(2), 
(e), 
and 
(f)(4) 
and 
inserting 
‘‘National 
Geospatial-Intelligence Agency’’; 
(B) in the heading for subsection (d), by 
striking ‘‘NATIONAL
IMAGERY
AND
MAPPING 
AGENCY’’ 
and 
inserting 
‘‘NATIONAL 
GEOSPATIAL-INTELLIGENCE AGENCY’’; and 
(C) in the heading for subsection (e), by 
striking ‘‘NIMA’’ and inserting ‘‘NGA’’. 
(4) Section 201 is amended by striking ‘‘Na-
tional Imagery and Mapping Agency’’ in subsections 
(b)(2)(C) and (c)(2)(C) and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(5)(A) Section 424 is amended by striking ‘‘Na-
tional Imagery and Mapping Agency’’ in subsection 
(b)(3) and inserting ‘‘National Geospatial-Intelligence 
Agency’’. 
(B)(i) The heading of such section is amended to 
read as follows:
226
‘‘§ 424. Disclosure of organizational and personnel in-
formation: exemption for specified intel-
ligence agencies’’. 
(ii) The item relating to that section in the table 
of sections at the beginning of subchapter I of chapter 
21 is amended to read as follows:
‘‘424. Disclosure of organizational and personnel information: exemption for spec-
ified intelligence agencies.’’.
(6) Section 425(a) is amended by adding at the 
end the following new paragraph: 
‘‘(5) The words ‘National Geospatial-Intelligence 
Agency’, the initials ’NGA,’ or the seal of the National 
Geospatial-Intelligence Agency.’’. 
(7) Section 1614(2)(C) is amended by striking 
‘‘National Imagery and Mapping Agency’’ and insert-
ing ‘‘National Geospatial-Intelligence Agency’’. 
(8) The tables of chapters at the beginning of 
subtitle A, and at the beginning of part I of subtitle 
A, are each amended by striking ‘‘Imagery and Map-
ping’’ in the item relating to chapter 22 and insert-
ing ‘‘Geospatial-Intelligence’’. 
(e) CONFORMING AMENDMENTS TO NATIONAL SECU-
RITY ACT OF 1947.—The National Security Act of 1947 is 
amended as follows: 
(1) Section 3 (50 U.S.C. 401a) is amended by 
striking ‘‘National Imagery and Mapping Agency’’ in
227
paragraph 
(4)(E) 
and 
inserting 
‘‘National 
Geospatial- Intelligence Agency’’. 
(2) Section 105 (50 U.S.C. 403–5) is amended 
by striking ‘‘National Imagery and Mapping Agency’’ 
in subsections (b)(2) and (d) and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(3) Section 105A (50 U.S.C. 403–5a) is amended 
by striking ‘‘National Imagery and Mapping Agency’’ 
in subsection (b)(1)(C) and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(4) Section 105C (50 U.S.C. 403-5c) is amend-
ed—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ each place it appears and in-
serting ‘‘National Geospatial-Intelligence Agen-
cy’’; 
(B) by striking ‘‘NIMA’’ each place it ap-
pears and inserting ‘‘NGA’’; and 
(C) by striking ‘‘NATIONAL IMAGERY AND 
MAPPING AGENCY’’ in the section heading and in-
serting ‘‘NATIONAL
GEOSPATIAL-INTELLIGENCE 
AGENCY’’. 
(5) Section 106 (50 U.S.C. 403–6) is amended 
by striking ‘‘National Imagery and Mapping Agency’’
228
in subsection (a)(2)(C) and inserting ‘‘National 
Geospatial-Intelligence Agency’’. 
(6) Section 110 (50 U.S.C. 404e) is amended—
(A) by striking ‘‘National Imagery and 
Mapping Agency’’ in subsections (a), (b), and (c) 
and inserting ‘‘National Geospatial-Intelligence 
Agency’’; and 
(B) by striking ‘‘NATIONAL IMAGERY AND 
MAPPING AGENCY’’ in the section heading and in-
serting ‘‘NATIONAL
GEOSPATIAL-INTELLIGENCE 
AGENCY’’. 
(7) The table of contents in the first section is 
amended—
(A) by striking the item relating to section 
105C and inserting the following:
‘‘Sec. 105C. Protection of operational files of National Geospatial-Intelligence 
Agency.’’;
and 
(B) by striking the item relating to section 
110 and inserting the following:
‘‘Sec. 110. National mission of National Geospatial-Intelligence Agency.’’.
(f) CROSS REFERENCE CORRECTION.—Section 442(d) 
of title 10, United States Code, is by striking ‘‘section 
120(a) of the National Security Act of 1947’’ and inserting 
‘‘section 110(a) of the National Security Act of 1947 (50 
U.S.C. 404e(a))’’.
229
(g) REFERENCES.—Any reference to the National Im-
agery and Mapping Agency in any law, regulation, map, 
document, record, or other paper of the United States shall 
be considered to be a reference to the National Geospatial-
Intelligence Agency.
SEC. 903. PILOT PROGRAM FOR PROVISION OF SPACE SUR-
VEILLANCE NETWORK SERVICES TO NON-
UNITED STATES GOVERNMENTAL ENTITIES. 
(a) IN GENERAL.—Chapter 135 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 2272. Space surveillance network: pilot program for 
provision of satellite tracking support to 
entities outside Unites States Government 
‘‘(a) PILOT PROGRAM.—The Secretary of Defense may 
carry out a pilot program to determine the feasibility and 
desirability of providing to non-United States Govern-
mental entities space surveillance data support described in 
subsection (b). 
‘‘(b) SPACE SURVEILLANCE DATA SUPPORT.—Under 
such a pilot program, the Secretary may provide to a non-
United States Governmental entity, subject to an agreement 
described in subsection (c), the following: 
‘‘(1) Satellite tracking services from assets owned 
or controlled by the Department of Defense, but only
230
if the Secretary determines, in the case of any such 
agreement, that providing such services to that entity 
is in the national security interests of the United 
States. 
‘‘(2) Space surveillance data and the analysis of 
space surveillance data, but only if the Secretary de-
termines, in the case of any such agreement, that pro-
viding such data and analysis to that entity is in the 
national security interests of the United States. 
‘‘(c) REQUIRED AGREEMENT.—The Secretary may not 
provide space surveillance data support to a non-United 
States Governmental entity under the pilot program unless 
that entity enters into an agreement with the Secretary 
under which the entity—
‘‘(1) agrees to pay an amount that may be 
charged by the Secretary under subsection (f); and 
‘‘(2) agrees not to transfer any data or technical 
information received under the agreement, including 
the analysis of tracking data, to any other entity 
without the Secretary’s express approval. 
‘‘(d) REQUIREMENTS WITH RESPECT
TO FOREIGN 
TRANSACTIONS.—(1) The Secretary may enter into an 
agreement under subsection (c) to provide space surveillance 
data support to a foreign government or other foreign entity 
only with the concurrence of the Secretary of State.
231
‘‘(2) In the case of such an agreement that is entered 
into with a foreign government or other foreign entity, the 
Secretary of Defense may provide approval under sub-
section (c)(2) for a transfer of data or technical information 
only with the concurrence of the Secretary of State. 
‘‘(e) PROHIBITION CONCERNING PROVISION OF INTEL-
LIGENCE ASSETS OR DATA.—Nothing in this section shall 
be considered to authorize the provision of services or infor-
mation concerning, or derived from, United States intel-
ligence assets or data. 
‘‘(f) CHARGES.—As a condition of an agreement under 
subsection (c), the Secretary of Defense may require the 
non-United States Governmental entity entering into the 
agreement to pay to the Department of Defense—
‘‘(1) such amounts as the Secretary determines to 
be necessary to reimburse the Department of Defense 
for the costs to the Department of providing space 
surveillance data support under the agreement; and 
‘‘(2) any other amount or fee that the Secretary 
may prescribe 
‘‘(g) CREDITING OF FUNDS RECEIVED.—Funds re-
ceived pursuant to an agreement under this section shall 
be credited to accounts of the Department of Defense that 
are current when the proceeds are received and that are 
available for the same purposes as the accounts originally
232
charged to perform the services. Funds so credited shall 
merge with and become available for obligation for the same 
period as the accounts to which they are credited. 
‘‘(h) PROCEDURES.—The Secretary shall establish pro-
cedures for the conduct of the pilot program. As part of those 
procedures, the Secretary may allow space surveillance data 
and analytical support to be provided through a contractor 
of the Department of Defense. 
‘‘(i) DURATION OF PILOT PROGRAM.—The pilot pro-
gram under this section shall be conducted during the three-
year period beginning on a date specified by the Secretary 
of Defense, which date shall be not later than 180 days after 
the date of the enactment of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item:
‘‘2272. Space surveillance network: pilot program for provision of satellite track-
ing services and data to entities outside Unites States Govern-
ment.’’.
SEC. 904. CLARIFICATION OF RESPONSIBILITY OF MILITARY 
DEPARTMENTS 
TO 
SUPPORT 
COMBATANT 
COMMANDS. 
Sections 3013(c)(4), 5013(c)(4), and 8013(c)(4) of title 
10, United States Code, are each amended by striking ‘‘(to 
the maximum extent practicable)’’.
233
SEC. 905. BIENNIAL REVIEW OF NATIONAL MILITARY 
STRATEGY BY CHAIRMAN OF THE JOINT 
CHIEFS OF STAFF. 
(a) BIENNIAL REVIEW.—Section 153 of title 10, 
United States Code, by adding at the end the following new 
subsection: 
‘‘(d) BIENNIAL
REVIEW
OF
NATIONAL
MILITARY 
STRATEGY.—(1) Not later then February 15 of each even-
numbered year, the Chairman shall submit to the Com-
mittee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report 
containing the results of a comprehensive examination of 
the national military strategy. Each such examination 
shall be conducted by the Chairman in conjunction with 
the other members of the Joint Chiefs of Staff and the com-
manders of the unified and specified commands. 
‘‘(2) Each report on the examination of the national 
military strategy under paragraph (1) shall include the fol-
lowing: 
‘‘(A) Delineation of a national military strategy 
consistent with the most recent National Security 
Strategy prescribed by the President pursuant to sec-
tion 108 of the National Security Act of 1947 (50 
U.S.C. 404a) and the most recent Quadrennial De-
fense Review prescribed by the Secretary of Defense 
pursuant to section 118 of this title.
234
‘‘(B) A description of the strategic environment 
and the opportunities and challenges that affect 
United States national interests and United States 
national security. 
‘‘(C) A description of the regional threats to 
United States national interests and United States 
national security. 
‘‘(D) A description of the international threats 
posed by terrorism, weapons of mass destruction, and 
asymmetric challenges to United States national secu-
rity. 
‘‘(E) Identification of United States national 
military objectives and the relationship of those objec-
tives to the strategic environment, regional, and inter-
national threats. 
‘‘(F) Identification of the strategy, underlying 
concepts, and component elements that contribute to 
the achievement of United States national military 
objectives. 
‘‘(G) Assessment of the capabilities and adequacy 
of United States forces (including both active and re-
serve components) to successfully execute the national 
military strategy. 
‘‘(H) Assessment of the capabilities, adequacy, 
and interoperability of regional allies of the United
235
States and or other friendly nations to support 
United States forces in combat operations and other 
operations for extended periods of time. 
‘‘(I) Assessment of the resources, basing require-
ments, and support structure needed to provide the 
capabilities necessary to be assured United States 
forces can successfully achieve national military objec-
tives and to assess what resources and support might 
be required to sustain allies or friendly nation forces 
during combat operations. 
‘‘(3)(A) As part of the assessment under this sub-
section, the Chairman, in conjunction with the other mem-
bers of the Joint Chiefs of Staff and the commanders of the 
unified and specified commands, shall undertake an assess-
ment of the nature and magnitude of the strategic and mili-
tary risks associated with successfully executing the mis-
sions called for under the current National Military Strat-
egy. 
‘‘(B) In preparing the assessment of risk, the Chair-
man should assume the existence of those threats described 
in subparagraphs (C) and (D) of paragraph (2) and should 
assess the risk associated with two regional threats occur-
ring nearly simultaneously. 
‘‘(C) In addition to the assumptions to be made under 
subparagraph (B), the Chairman should make other as-
236
sumptions pertaining to the readiness of United States 
forces (in both the active and reserve components), the 
length of conflict and the level of intensity of combat oper-
ations, and the levels of support from allies and other 
friendly nations. 
‘‘(4) Before submitting a report under this subsection 
to the Committees on Armed Services of the Senate and 
House of Representatives, the Chairman shall provide the 
report to the Secretary of Defense. The Secretary’s assess-
ment and comments thereon (if any) shall be included with 
the report. If the Chairman’s assessment in such report in 
any year is that the risk associated with executing the mis-
sions called for under the National Military Strategy is sig-
nificant, the Secretary shall include with the report as sub-
mitted to those committees the Secretary’s plan for miti-
gating the risk.’’. 
(b) CONFORMING AMENDMENT.—Subsection (b)(1) of 
such section is amended by striking ‘‘each year’’ and insert-
ing ‘‘of each odd-numbered year’’.
SEC. 906. AUTHORITY FOR ACCEPTANCE BY ASIA-PACIFIC 
CENTER FOR SECURITY STUDIES OF GIFTS 
AND 
DONATIONS 
FROM 
NONFOREIGN 
SOURCES. 
(a) AUTHORITY.—Subsection (a) of section 2611 of 
title 10, United States Code, is amended—
237
(1) by striking ‘‘FOREIGN’’ in the subsection cap-
tion; 
(2) by striking ‘‘foreign’’ in paragraph (1) after 
‘‘Center,’’; and 
(3) by adding at the end of paragraph (1) the 
following sentence: ‘‘Such gifts and donations may be 
accepted from any agency of the United States, any 
State or local government, any foreign government, 
any foundation or other charitable organization (in-
cluding any that is organized or operates under the 
laws of a foreign country), or any other private 
source in the United States or a foreign country.’’. 
(b) CONFORMING AMENDMENTS.—Such section is fur-
ther amended 
(1) by striking ‘‘foreign’’ in subsection (c); and 
(2) in subsection (f)—
(A) by striking ‘‘FOREIGN’’ in the sub-
section caption; 
(B) by striking ‘‘foreign’’ after ‘‘section, a’’; 
and 
(C) by striking ‘‘from a foreign’’ and all 
that follows through ‘‘country.’’ and inserting a 
period. 
(c) CLERICAL AMENDMENTS.— The heading of such 
section, and the item relating to such section in the table
238
of sections at the beginning of chapter 155 of such title, 
are each amended by striking the third word after the colon.
SEC. 907. REPEAL OF ROTATING CHAIRMANSHIP OF ECO-
NOMIC ADJUSTMENT COMMITTEE. 
Section 4004(b) of the Defense Economic Adjustment, 
Diversification, Conversion, and Stabilization Act of 1990 
(division D of Public Law 101–510; 10 U.S.C. 2391 note) 
is amended—
(1) by striking ‘‘Until October 1, 1997, the’’ and 
inserting ‘‘The’’; and 
(2) by striking the second sentence.
SEC. 908. PILOT PROGRAM FOR IMPROVED CIVILIAN PER-
SONNEL MANAGEMENT. 
(a) PILOT PROGRAM.—(1) The Secretary of Defense 
may carry out a pilot program using an automated work-
force management system to demonstrate improved effi-
ciency in the performance of civilian personnel manage-
ment. 
(2) Under the pilot program, the Secretary of Defense 
shall provide the Secretary of each military department 
with the authority for the following: 
(A) To use an automated workforce management 
system for its civilian workforce to assess its potential 
to substantially reduce hiring cycle times, lower labor 
costs, increase efficiency, improve performance man-
239
agement, provide better management reporting, and 
enable it to make operational new personnel manage-
ment flexibilities granted under the civilian personnel 
transformation program. 
(B) Identify one regional civilian personnel cen-
ter (or equivalent) in each military department for 
participation in the pilot program. 
(3) The Secretary may carry out the pilot program 
under this subsection at each selected regional civilian per-
sonnel center for a period of two years beginning not later 
than March 1, 2004. 
(b) PILOT PROGRAM CHARACTERISTICS.—The pilot 
program civilian personnel management system shall have 
at a minimum the following characteristics: 
(1) Currently in use by Federal government agencies 
outside the Department of Defense. 
(2) Able to be purchased on an annual subscription 
basis. 
(3) Requires no capital investment, software license 
fees, transaction charges, or ‘‘per seat’’ or ‘‘concurrent user’’ 
restrictions. 
(4) Capable of automating the workforce management 
functions of job definition, position management, recruit-
ment, staffing, and performance management using inte-
grated vendor-supplied and supported data, expert system
240
rules engines, and software functionality across those func-
tions. 
(5) Has a ‘‘native web’’ technical architecture and an 
Oracle database. 
(6) Fully hosted by the vendor so that the customer 
requires only Internet access and an Internet browser to 
use the system. 
(8) Capable of operating completely ‘‘server side’’ so 
that no software is required on the client system and no 
invasive elements are used. 
(c) IMPLEMENTATION PLAN.—(1) The Secretary shall 
submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Rep-
resentatives a plan for the implementation of the pilot pro-
gram. The plan shall be submitted no later than six months 
after the date of the enactment of this Act. 
(2) The plan shall include the following: 
(A) The Secretary’s request to the Office of Per-
sonnel Management to conduct the pilot program as 
a Federal civilian personnel demonstration project 
under chapter 47 of title 5, United States Code, or a 
plan to provide for the pilot program through another 
plan. 
(B) The expected cost of the pilot program.
241
(C) Identification of the regional civilian per-
sonnel centers for participation in the pilot program 
and the criteria used to select them. 
(D) Expected timing for providing to Congress 
the results of the pilot program and recommendations 
of the Secretary. 
(d) IMPLEMENTATION.—The Secretary may not begin 
to implement the pilot program until a period of 30 days 
has elapsed after the date of the submission of the plan for 
the pilot program under subsection (c).
SEC. 909. EXTENSION OF CERTAIN AUTHORITIES APPLICA-
BLE TO THE PENTAGON RESERVATION TO IN-
CLUDE 
DESIGNATED 
PENTAGON 
CON-
TINUITY-OF-GOVERNMENT LOCATIONS. 
Section 2674 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(g) For purposes of subsections (b), (c), (d), and (e), 
the terms ‘Pentagon Reservation’ and ‘National Capital Re-
gion’ shall be treated as including the land and physical 
facilities at the Raven Rock Mountain Complex and such 
other areas of land, locations, and physical facilities of the 
Department of Defense within 100 miles of the District of 
Columbia as the Secretary of Defense determines are nec-
essary to meet the needs of the Department of Defense di-
242
rectly relating to continuity of operations and continuity 
of government.’’.
SEC. 910. DEFENSE ACQUISITION WORKFORCE REDUC-
TIONS. 
(a) REVISED LIMITATION.—Subchapter V of chapter 
87 of title 10, United States Code, is amended by adding 
at the end the following new section: 
‘‘§ 1765. Defense acquisition workforce: limitation 
‘‘(a) LIMITATION.—Effective October 1, 2008, the num-
ber of defense acquisition and support personnel in the De-
partment of Defense may not exceed 75 percent of the base-
line number. 
‘‘(b) PHASED REDUCTION.—The number of defense ac-
quisition and support personnel in the Department of De-
fense—
‘‘(1) as of October 1, 2004, may not exceed 95 
percent of the baseline number; 
‘‘(2) as of October 1, 2005, may not exceed 90 
percent of the baseline number; 
‘‘(3) as of October 1, 2006, may not exceed 85 
percent of the baseline number; and 
‘‘(4) as of October 1, 2007, may not exceed 80 
percent of the baseline number. 
‘‘(c) BASELINE NUMBER.—In this section, the term 
‘baseline number’ means the number of defense acquisition
243
and support personnel in the Department of Defense as of 
October 1, 2003. 
‘‘(d) DEFENSE ACQUISITION
AND SUPPORT PER-
SONNEL DEFINED.—In this section, the term ‘defense acqui-
sition and support personnel’ means military and civilian 
personnel (other than civilian personnel who are employed 
at a maintenance depot) who are assigned to, or employed 
in, acquisition organizations of the Department of Defense 
(as specified in Department of Defense Instruction num-
bered 5000.58 dated January 14, 1992), and any other or-
ganizations which the Secretary may determine to have a 
predominantly acquisition mission.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such subchapter is amended by adding at 
the end the following new item:
‘‘1765. Defense acquisition workforce: limitation.’’.
SEC. 911. REQUIRED FORCE STRUCTURE. 
(a) ARMY.—Section 3062 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection: 
‘‘(e) The Army shall be so organized as to include not 
less than—
‘‘(1) 10 active and eight National Guard combat 
divisions or their equivalents; 
‘‘(2) one active armored cavalry regiment and 
one light cavalry regiment or their equivalents;
244
‘‘(3) 15 National Guard enhanced brigades or 
their equivalents; and 
‘‘(4) such other active and reserve component 
land combat, rotary-wing aviation, and other services 
as may be required to support forces specified in 
paragraphs (1) through (3).’’. 
(b) NAVY.—Section 5062 of such title is amended by 
adding at the end the following new subsection: 
‘‘(d) The Navy, within the Department of the Navy, 
shall be so organized as to include—
‘‘(1) not less than 305 vessels in active service; 
‘‘(2) not less than 12 aircraft carrier battle 
groups or their equivalents, not less than 12 amphib-
ious ready groups or their equivalents, not less than 
55 attack submarines, not less than 108 active surface 
combatant vessels, and not less than 8 reserve combat-
ant vessels; and 
‘‘(3) such other active and reserve naval combat, 
naval aviation, and service forces as may be required 
to support forces specified in paragraphs (1) and 
(2).’’. 
(c) AIR FORCE.—Section 8062 of title 10, United 
States Code, is amended by adding at the end the following 
new subsection:
245
‘‘(g) Notwithstanding subsection (e), the Air Force 
shall be so organized as to include not less than—
‘‘(1) 46 active fighter squadrons or their equiva-
lents; 
‘‘(2) 38 National Guard and Reserve squadrons 
or their equivalents; 
‘‘(3) 96 combat-coded bomber aircraft in active 
service; and 
‘‘(4) such other squadrons, reserve groups, and 
supporting auxiliary and reserve units as may be re-
quired to support forces specified in paragraphs (1) 
through (3).’’.
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) 
Upon determination by the Secretary of Defense that such 
action is necessary in the national interest, the Secretary 
may transfer amounts of authorizations made available to 
the Department of Defense in this division for fiscal year 
2004 between any such authorizations for that fiscal year 
(or any subdivisions thereof). Amounts of authorizations so 
transferred shall be merged with and be available for the 
same purposes as the authorization to which transferred.
246
(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section may 
not exceed $2,500,000,000. 
(b) LIMITATIONS.—The authority provided by this sec-
tion to transfer authorizations—
(1) may only be used to provide authority for 
items that have a higher priority than the items from 
which authority is transferred; and 
(2) may not be used to provide authority for an 
item that has been denied authorization by Congress. 
(c) EFFECT ON AUTHORIZATION AMOUNTS.—A trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized for the account to which the amount is transferred 
by an amount equal to the amount transferred. 
(d) NOTICE
TO
CONGRESS.—The Secretary shall 
promptly notify Congress of each transfer made under sub-
section (a). 
SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 2003. 
(a) DOD AUTHORIZATIONS.—Amounts authorized to 
be appropriated to the Department of Defense for fiscal year 
2003 in the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107–314) are hereby ad-
justed, with respect to any such authorized amount, by the
247
amount by which appropriations pursuant to such author-
ization are increased (by a supplemental appropriation) or 
decreased (by a rescission), or both, or are increased by a 
transfer of funds, pursuant to the following: 
(1) Chapters 3 and 8 of title I of the Emergency 
Wartime Supplemental Appropriations Act, 2003 
(Public Law 108–11). 
(2) Any Act enacted after May 23, 2003, making 
supplemental appropriations for fiscal year 2003 for 
the military functions of the Department of Defense. 
(b) NNSA AUTHORIZATIONS.—Amounts authorized to 
be appropriated to the Department of Energy for fiscal year 
2003 in the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107–314) are hereby ad-
justed, with respect to any such authorized amount, by the 
amount by which appropriations pursuant to such author-
ization are increased (by a supplemental appropriation) or 
decreased (by a rescission), or both, or are increased by a 
transfer of funds, pursuant to the following: 
(1) Chapter 4 of the Emergency Wartime Sup-
plemental Appropriations Act, 2003 (Public Law 
108–11). 
(2) Any Act enacted after May 23, 2003, making 
supplemental appropriations for fiscal year 2003 for
248
the atomic energy defense activities of the Department 
of Energy. 
SEC. 
1003. 
AUTHORITY 
TO 
TRANSFER 
PROCUREMENT 
FUNDS FOR A MAJOR DEFENSE ACQUISITION 
PROGRAM FOR CONTINUED DEVELOPMENT 
WORK ON THAT PROGRAM. 
(a) AUTHORITY.—Section 2214 of title 10, United 
States Code, is amended—
(1) by redesignating subsections (b), (c), and (d) 
as subsections (c), (d), and (e), respectively; and 
(2) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b) TRANSFER OF PROCUREMENT FUNDS FOR DE-
VELOPMENT ACTIVITIES FOR MAJOR DEFENSE ACQUISI-
TION SYSTEMS.—(1) In the case of a major defense acquisi-
tion program (as defined in section 2430 of this title) for 
which funds are currently available both for procurement 
and for research, development, test, and evaluation, if the 
Secretary concerned determines that funds are required for 
further research, development, test, and evaluation activities 
for that program in excess of the funds currently available 
for that purpose, the Secretary may (subject to paragraph 
(2)) transfer funds available for that program for procure-
ment to funds available for that program for research, devel-
opment, test, and evaluation for the purpose of continuing
249
research, development, test, and evaluation activities for 
that program. 
‘‘(2)(A) The total amount transferred under the au-
thority of paragraph (1) for any acquisition program may 
not exceed $20,000,000. 
‘‘(B) The total amount transferred under the authority 
of paragraph (1) from amounts made available for any fis-
cal year may not exceed $250,000,000. 
‘‘(3) The authority provided by paragraph (1) is in 
addition to any other transfer authority that may be pro-
vided by law. 
‘‘(4) Upon a determination that all or part of the 
funds transferred under paragraph (1) are not necessary 
for the purpose for which the transfer was made, such 
amounts may be transferred back to a Procurement appro-
priation for the purpose of procurement of the acquisition 
program for which funds were transferred.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall not apply with respect to funds appro-
priated for a fiscal year before fiscal year 2004. 
SEC. 1004. RESTORATION OF AUTHORITY TO ENTER INTO 
12-MONTH LEASES AT ANY TIME DURING THE 
FISCAL YEAR. 
Section 2410a(a) of title 10, United States Code, is 
amended by inserting after ‘‘severable services’’ the fol-
250
lowing: ‘‘and the lease of real or personal property, includ-
ing the maintenance of such property when contracted for 
as part of the lease agreement,’’. 
SEC. 1005. AUTHORITY FOR RETENTION OF ADDITIONAL 
AMOUNTS REALIZED FROM ENERGY COST 
SAVINGS. 
(a) INCREASE IN AMOUNT OF ENERGY COST SAVINGS 
RETAINED.—Section 2865(b)(1) of title 10, United States 
Code, is amended by striking ‘‘Two-thirds of the portion 
of the funds appropriated to Department of Defense for a 
fiscal year that is’’ and inserting ‘‘Funds appropriated to 
the Department of Defense for a fiscal year that are’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall not apply to funds appropriated for a fiscal 
year before fiscal year 2004. 
SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDG-
ET CYCLE FOR THE DEPARTMENT OF DE-
FENSE. 
Section 1405 of the Department of Defense Authoriza-
tion Act, 1986 (Public Law 99–145; 31 U.S.C. 1105 note), 
is repealed.
251
SEC. 1007. AUTHORITY TO PROVIDE REIMBURSEMENT FOR 
USE OF PERSONAL CELLULAR TELEPHONES 
WHEN USED FOR OFFICIAL GOVERNMENT 
BUSINESS. 
(a) IN GENERAL.—(1) Chapter 134 of title 10, United 
States Code, is amended by inserting after section 2257 the 
following new section: 
‘‘§ 2258. Personal cellular telephones: reimbursement 
when used for Government business 
‘‘(a) GENERAL AUTHORITY.—The Secretary of Defense 
may reimburse members of the Army, Navy, Air Force, and 
Marine Corp, and civilian officers and employees of the De-
partment of Defense, for cellular telephone use on a pri-
vately owned cellular telephone when used on official Gov-
ernment business. Such reimbursement shall be on a flat-
rate basis. 
‘‘(b) REIMBURSEMENT RATE.—The Secretary of De-
fense may prescribe the reimbursement rate for purposes of 
subsection (a). That reimbursement rate may not exceed the 
equivalent Government costs of providing a cellular tele-
phone to employees on official Government business.’’. 
(2) The table of sections at the beginning of subchapter 
II of such chapter is amended by inserting after the item 
relating to section 2257 the following new item:
‘‘2258. Personal cellular telephones: reimbursement when used for Government 
business.’’.
252
(b) EFFECTIVE DATE.—Section 2258 of title 10, 
United States Code, as added by subsection (a), shall take 
effect on October 1, 2003, and shall apply with respect to 
the use of cellular phones on or after that date. 
Subtitle B—Naval Vessels and 
Shipyards 
SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESER-
VATION OF SURGE CAPABILITY FOR NAVAL 
SURFACE COMBATANTS. 
(a) REPEAL.—Section 7296 of title 10, United States 
Code, is amended by striking subsection (b). 
(b) CLERICAL AMENDMENTS.—Such section is further 
amended—
(1) by striking ‘‘(3) Any notification under 
paragraph (1)(A)’’ and inserting ‘‘(b) CONTENT OF 
NOTIFICATION.—Any notification under subsection 
(a)(1)(A)’’; 
(2) by redesignating subparagraphs (A), (B), 
and (C) of subsection (b) (as redesignated by para-
graph (1)) as paragraphs (1), (2), and (3), respec-
tively; and 
(3) by striking ‘‘subparagraph (B)’’ in subsection 
(b)(3) (as redesignated by paragraphs (1) and (2)) 
and inserting ‘‘paragraph (2)’’.
253
SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO 
USE FOR EXPERIMENTAL PURPOSES OF VES-
SELS STRICKEN FROM NAVAL VESSEL REG-
ISTER. 
(a) SALE OF MATERIAL AND EQUIPMENT STRIPPED 
FROM VESSEL.—Subsection (b)(1) of section 7306a of title 
10, United States Code, is amended by adding at the end 
the following new sentence: ‘‘Material and equipment 
stripped from the vessel may be sold by a contractor or a 
designated sales agent on behalf of the Navy.’’. 
(b) USE OF PROCEEDS.—(1) Subsection (b)(2) of such 
section is amended by striking ‘‘scrapping services’’ and all 
that follows through and inserting ‘‘services needed for such 
stripping and for environmental remediation required for 
the use of the vessel for experimental purposes. Amounts re-
ceived in excess of amounts needed for reimbursement of 
those costs shall be deposited into the account from which 
the stripping and environmental remediation expenses were 
incurred and shall be available for stripping and environ-
mental remediation of other vessels to be used for experi-
mental purposes.’’. 
(2) The amendment made by paragraph (1) shall not 
apply with respect to proceeds from the stripping of a vessel 
under any vessel stripping contract entered into before the 
date of the enactment of this Act.
254
(c) CLARIFICATION OF COVERED EXPERIMENTAL PUR-
POSES.—Such section is further amended by adding at the 
end the following new subsection: 
‘‘(c) USE FOR EXPERIMENTAL PURPOSES DEFINED.—
In this section, the term ‘use for experimental purposes’ in-
cludes use of a vessel in a Navy sink exercise or for target 
purposes.’’. 
SEC. 1013. AUTHORIZATION FOR TRANSFER OF VESSELS 
STRICKEN FROM NAVAL VESSEL REGISTER 
FOR USE AS ARTIFICIAL REEFS. 
(a) AUTHORITY.—Chapter 633 of title 10, United 
States Code, is amended by inserting after section 7306a 
the following new section: 
‘‘§ 7306b. Vessels stricken from Naval Vessel Register: 
transfer by gift or otherwise for use as ar-
tificial reefs 
‘‘(a) AUTHORITY TO MAKE TRANSFER.—The Sec-
retary of the Navy may transfer, by gift or otherwise, any 
vessel stricken from the Naval Vessel Register to any State, 
Commonwealth, or possession of the United States or any 
municipal corporation or political subdivision thereof for 
use as an artificial reef as provided in subsection (b). 
‘‘(b) VESSEL TO BE USED AS ARTIFICIAL REEF.—An 
agreement for the transfer of a vessel under subsection (a) 
shall require that—
255
‘‘(1) the transferee use, site, construct, monitor, 
and manage the vessel only as an artificial reef in ac-
cordance with the requirements of the National Fish-
ing Enhancement Act of 1984 (33 U.S.C. 2101 et 
seq.), except that the transferee also may use the arti-
ficial reef to enhance diving opportunities if that use 
does not have an adverse effect on fishery resources; 
and 
‘‘(2) the transferee shall obtain, and bear all of 
the responsibility for complying with, all applicable 
Federal, State, interstate, and local permits for siting, 
constructing, monitoring, and managing a vessel as 
an artificial reef. 
‘‘(c) ADDITIONAL TERMS.—The Secretary may require 
such additional terms in connection with a conveyance au-
thorized by this section as the Secretary considers appro-
priate. 
‘‘(d) COST SHARING ON TRANSFERS.—The Secretary 
of the Navy may share with the recipient any of the costs 
associated with transferring a vessel under this section. 
‘‘(e) APPLICATION FOR MORE THAN ONE VESSEL.—
A State, Commonwealth, or possession of the United States, 
or any municipal corporation or political subdivision 
thereof, may apply for more than one vessel under this sec-
tion.
256
‘‘(f) DEFINITION.—In this section, the term ‘fishery re-
sources’ has the meaning given such term in section 3(14) 
of the Magnuson-Stevens Fishery Conservation and Man-
agement Act of 1976 (16 U.S.C. 1802(14)).’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 7306a the following new item:
‘‘7306b. Vessels stricken from Naval Vessel Register: transfer by gift or otherwise 
for use as artificial reefs.’’.
SEC. 1014. PILOT PROGRAM FOR SEALIFT SHIP CONSTRUC-
TION. 
(a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec-
retary of the Navy may establish a pilot program, under 
which the Secretary of the Navy, subject to the availability 
of appropriations, may guarantee loans for—
(1) the construction in a United States shipyard 
of two qualified sealift ships that are to be docu-
mented under the laws of the United States for use in 
United States-flag commercial service; and 
(2) the acquisition of facilities or equipment per-
taining to the marine operations of those ships, which 
may include specialized loading equipment. 
(b) CONDITIONS OF GUARANTEE.—A guarantee under 
this section is subject to the following conditions: 
(1) MSP.—The owner of the ships for which 
guarantees are issued shall apply for an operating
257
agreement with the Secretary of Transportation under 
subtitle B of this title. 
(2) NDF; CHARTER.—If the Secretary of the 
Navy requests, the owner of the ships shall engage in 
negotiations on reasonable terms and conditions for—
(A) installation and maintenance of defense 
features for national defense purposes on one or 
both ships under section 2218 of title 10, United 
States Code; and 
(B) a short-term charter to the United 
States Government of at least one ship for which 
a guarantee is issued, for a period of at least 60 
days prior to entry into commercial service, for 
the purpose of demonstrating the military capa-
bilities of the ships. 
(c) PAYMENT OF COST.—The cost of a guarantee under 
this section shall be paid for with amounts made available 
in appropriations Acts. 
(d) PERCENTAGE LIMITATION; TERM.—A guarantee 
under this section may apply—
(1) to up to 87.5 percent of the loan principal; 
and 
(2) for a term ending up to 25 years after deliv-
ery of the second ship.
258
(e) AUTHORITIES, PROCEDURES, REQUIREMENTS, AND 
RESTRICTIONS.—The Secretary of the Navy, subject to the 
other provisions of this section—
(1) in implementing this section, may exercise 
authorities that are substantially the same as the au-
thorities available to the Secretary of Transportation 
under title XI of the Merchant Marine Act, 1936 (46 
App. U.S.C. 1271 et seq.) with respect to loan guar-
antees under that title; 
(2) shall implement this section under proce-
dures, requirements, and restrictions that are substan-
tially the same as those under which loan guarantees 
are made under that title, including the regulations 
implementing that title; and 
(3) may establish such additional requirements 
for loan guarantees under this section as the Sec-
retary determines to be necessary to minimize the cost 
of such guarantees. 
(f) INTERAGENCY
AGREEMENT.—The Secretary of 
Transportation shall enter into an interagency agreement 
or other appropriate arrangement with the Secretary of the 
Navy to make available to the Department of the Navy such 
Maritime Administration personnel with expertise in vessel 
construction financing as are necessary to carry out the 
program under this section.
259
(g) DEFINITIONS.—In this section: 
(1) COST.—The term ‘‘cost’’, with respect to a 
loan guarantee under this section, has the meaning 
given that term in section 502 of the Congressional 
Budget and Impoundment Control Act of 1974 (2 
U.S.C. 661a). 
(2) QUALIFIED SEALIFT SHIP.—The term ‘‘quali-
fied sealift ship’’ means a roll-on, roll-off vessel that 
is—
(A) 
militarily 
useful 
for 
additional 
medium- to long-haul strategic sealift capacity; 
(B) designed to carry at least 10,000 tons 
of cargo; and 
(C) capable of operating commercially in 
the foreign commerce of the United States. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of the Navy 
to carry out this section $40,000,000. 
Subtitle C—Reports 
SEC. 1021. REPEAL AND MODIFICATION OF VARIOUS RE-
PORTING REQUIREMENTS APPLICABLE TO 
THE DEPARTMENT OF DEFENSE. 
(a) TITLE 10, UNITED STATES CODE.—Title 10, 
United States Code, is amended as follows:
260
(1) Section 113 is amended by striking sub-
section (m). 
(2) Section 117(e) is amended by striking ‘‘each 
month’’ and all that follows through ‘‘subsection (d)’’ 
and inserting ‘‘each quarter submit to the congres-
sional defense committees a report in writing con-
taining the results of the most recent joint readiness 
review under subsection (d)(1)(A)’’. 
(3) Section 127(d) is amended to read as follows: 
‘‘(d) ANNUAL REPORT.—Not later than December 1 
each year, the Secretary of Defense shall submit to the con-
gressional defense committees a report on expenditures dur-
ing the preceding fiscal year under subsections (a) and 
(b).’’. 
(4) Section 127a is amended—
(A) in subsection (a)—
(i) by striking paragraph (3); and 
(ii) by redesignating paragraph (4) as 
paragraph (3); and 
(B) by striking subsection (d). 
(5) Section 128 is amended by striking sub-
section (d). 
(6) Section 129 is amended by striking sub-
section (f).
261
(7) Section 184 is amended by striking sub-
section (b). 
(8) Section 226(a) is amended—
(A) by striking ‘‘December 15’’ and insert-
ing ‘‘January 15’’; and 
(B) by striking ‘‘in the following year’’ in 
paragraph (1) and inserting ‘‘in that year’’. 
(9)(A) Section 228 is amended—
(i) in subsection (a)—
(I) by striking ‘‘MONTHLY’’ in the sub-
section heading and inserting ‘‘QUAR-
TERLY’’; 
(II) by striking ‘‘monthly’’ and insert-
ing ‘‘quarterly’’; and 
(III) by striking ‘‘month’’ and insert-
ing ‘‘fiscal-year quarter’’; and 
(ii) in subsection (c), by striking ‘‘month’’ 
each place it appears and inserting ‘‘quarter’’. 
(B)(i) The heading of such section is amended to 
read as follows:
262
‘‘§ 228. Quarterly reports on allocation of funds with-
in operation and maintenance budget 
subactivities’’. 
(ii) The item relating to section 228 in the table 
of sections at the beginning of chapter 9 is amended 
to read as follows:
‘‘228. Quarterly reports on allocation of funds within operation and maintenance 
budget subactivities.’’.
(10) Section 401 is amended by striking sub-
section (d). 
(11) Section 437 is amended—
(A) by striking the second sentence of sub-
section (b); and 
(B) by striking subsection (c). 
(12)(A) Section 484 is repealed. 
(B) The table of sections at the beginning of such 
chapter is amended by striking the item relating to 
section 484. 
(13)(A) Section 520c is amended—
(i) by striking subsection (b); 
(ii) by striking ‘‘(a) PROVISION OF MEALS 
AND REFRESHMENTS.’’; and 
(iii) by striking the heading for such section 
and inserting the following:
263
‘‘§ 520c. Recruiting functions: provision of meals and 
refreshments’’. 
(B) The item relating to such section in the table 
of sections at the beginning of chapter 31 is amended 
to read as follow:
‘‘520c. Recruiting functions: provision of meals and refreshments.’’.
(14) Section 983(e)(1) is amended by striking 
‘‘and to Congress’’. 
(15) Section 1060 is amended by striking sub-
section (d). 
(16) Section 1130 is amended—
(A) in subsection (a), by striking ‘‘the other 
determinations necessary to comply with sub-
section (b)’’ and inserting ‘‘respond with a de-
tailed description of the rationale supporting the 
determination’’; and 
(B) by striking subsection (b). 
(17) Section 1557 is amended by striking sub-
section (e). 
(18) Section 1563 is amended—
(A) in subsection (a), by striking ‘‘the other 
determinations necessary to comply with sub-
section (b)’’ and inserting ‘‘respond with a de-
tailed description of the rationale supporting the 
determination’’; and 
(B) by striking subsection (b).
264
(19) Section 2010 is amended by striking sub-
section (b). 
(20) Section 2166 is amended—
(A) in subsection (e)(5), by inserting ‘‘and 
to Congress’’ after ‘‘to the Secretary of Defense’’; 
and 
(B) by striking subsection (i). 
(21) Section 2208(j)(2) is amended by striking 
‘‘and notifies Congress regarding the reasons for the 
waiver’’. 
(22) Section 2216(a) is amended—
(A) by striking ‘‘QUARTERLY REPORTS.—
(1) Not later than 15 days after the end of each 
calendar quarter’’ and inserting ‘‘ANNUAL RE-
PORT.—Not later than 60 days after the end of 
each fiscal year’’; and 
(B) by striking ‘‘quarter’’ in subparagraphs 
(A), (B), and (C) of paragraph (1) and inserting 
‘‘fiscal year’’. 
(23) Section 2224(e) is amended by inserting 
‘‘through 2007’’ after ‘‘Each year’’. 
(24) Section 2255(b)—
(A) by striking paragraph (2); and 
(B) by striking ‘‘(1)’’ after ‘‘(b) EXCEP-
TION.—’’.
265
(25) Section 2281 is amended by striking sub-
section (d). 
(26)(A) Section 2282 is repealed. 
(B) The table of sections at the beginning of 
chapter 136 is amended by striking the item relating 
to section 2282. 
(27) Section 2323 is amended—
(A) in subsection (d)—
(i) by striking ‘‘Defense—’’ and all 
that follows through ‘‘the extent’’ and insert-
ing ‘‘Defense to the extent’’; 
(ii) by striking ‘‘; and’’ and inserting 
a period; and 
(iii) by striking paragraph (2); and 
(B) by striking subsection (i). 
(28) Section 2327(c)(1) is amended—
(A) in subparagraph (A), by striking ‘‘after 
the date on which such head of an agency sub-
mits to Congress a report on the contract’’ and 
inserting ‘‘if in the best interests of the Govern-
ment’’; 
(B) in subparagraph (B), by striking ‘‘A re-
port under subparagraph (A)’’ and inserting 
‘‘The Secretary shall maintain records of each
266
contract entered into by reason of subparagraph 
(A). Such records’’; and 
(C) by striking subparagraph (C). 
(29) Section 2350a is amended—
(A) by striking subsection (f); and 
(B) in subsection (g), by striking paragraph 
(3). 
(30) Section 2350j is amended by striking sub-
sections (e) and (g). 
(31) Section 2367 is amended by striking sub-
section (d). 
(32) Section 2371 is amended by striking sub-
section (h). 
(33) Section 2374a is amended by striking sub-
section (e). 
(34) Section 2410i(c) is amended by striking the 
last sentence. 
(35) Section 2410m(c) is amended—
(A) by striking ‘‘REPORTING
REQUIRE-
MENT.—Each year’’ and inserting ‘‘ANNUAL RE-
PORT.—Not later than 60 days after the end of 
each fiscal year’’; 
(B) by inserting ‘‘at the end of such fiscal 
year’’ in paragraph (1) before the period;
267
(C) by striking ‘‘during the year preceding 
the year in which the report is submitted’’ in 
paragraph (2) and inserting ‘‘under this section 
during that fiscal year’’; 
(D) by striking ‘‘in such preceding year’’ in 
paragraph (3) and inserting ‘‘under this section 
during that fiscal year’’; and 
(E) by striking ‘‘in such preceding year’’ in 
paragraph (4) and inserting ‘‘under this section 
during that fiscal year’’. 
(36) Section 2433 is amended—
(A) in subsection (d)—
(i) in paragraphs (1) and (2), by strik-
ing ‘‘, or by at least 25 percent,’’; and 
(ii) in paragraph (3)—
(I) by striking ‘‘or by at least 25 
percent,’’ both places it appears; and 
(II) by inserting a comma after 
‘‘paragraph (1)’’; and 
(B) in subsection (e)—
(i) by striking paragraph (2); 
(ii) by redesignating paragraph (3) as 
paragraph (2); 
(iii) in paragraph (2), as so redesig-
nated, by striking ‘‘or if a’’ in the first sen-
268
tence and all that follows through ‘‘para-
graph (2),’’; and 
(iv) by designating the second sentence 
of such paragraph as paragraph (3) and in 
that paragraph—
(I) by inserting ‘‘under paragraph 
(2)’’ after ‘‘The prohibition’’; and 
(II) by striking ‘‘the date—’’ and 
all that follows through ‘‘subsection 
(d).’’ and inserting ‘‘the date on which 
Congress receives the Selected Acquisi-
tion Report under paragraph (1) with 
respect to that program.’’. 
(37) Section 2457 is amended by striking sub-
section (d). 
(38) Section 2493 is amended by striking sub-
section (g). 
(39) Section 2515 is amended by striking sub-
section (d). 
(40) Section 2521 is amended by striking sub-
section (e). 
(41) Section 2536 is amended—
(A) in subsection (b)(2)—
269
(i) by striking ‘‘notify Congress’’ in the 
first sentence and inserting ‘‘maintain a 
record’’; and 
(ii) by striking the second sentence and 
inserting the following: ‘‘The records main-
tained under the preceding sentence with re-
spect to a waiver shall include a justifica-
tion in suport of the decision to grant the 
waiver and shall be retrievable for any par-
ticular waiver or for waivers during any 
period of time.’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(d) The Secretary of Defense shall maintain an ac-
count of actions relating to the award of contracts to a 
prime contractor. The Secretary of Defense shall include in 
such accounts the reasons for exercising the awards and the 
work expected to be performed.’’. 
(42) Section 2541d is amended—
(A) by striking subsection (b); and 
(B) in subsection (a), by striking ‘‘(a)’’ and 
all that follows through ‘‘The Secretary of De-
fense’’ and inserting ‘‘The Secretary of Defense’’. 
(43) Section 2561 is amended by striking sub-
sections (c), (d) and (f).
270
(44) Section 2563(c)(2) is amended by striking 
‘‘and notifies Congress regarding the reasons for the 
waiver’’. 
(45) Section 2645 is amended by striking sub-
sections (d) and (g). 
(46) Section 2667a(c)(2) is amended by striking 
‘‘45 days’’ and inserting ‘‘14 days’’. 
(47) Section 2676(d) is amended by striking ‘‘21 
days’’ and inserting ‘‘14 days’’. 
(48) Section 2680 is amended by striking sub-
section (e). 
(49) Section 2696 is amended by striking sub-
sections (c) and (d). 
(50) Section 2703(c)(2) is amended—
(A) by striking subparagraph (B); 
(B) by striking ‘‘unless the Secretary—’’ 
and all that follows through ‘‘determines that’’ 
and inserting ‘‘unless the Secretary determines 
that’’; and 
(C) by redesignating clauses (i), (ii), and 
(iii) as subparagraphs (A), (B), and (C), respec-
tively, and realigning such subparagraphs (as so 
redesignated) two ems from the left margin. 
(51)(A) Section 2723 is repealed.
271
(B) The table of sections at the beginning of 
chapter 161 is amended by striking the item relating 
to section 2723. 
(52) Section 2803(b) is amended by striking 
‘‘21–day period’’ and inserting ‘‘seven-day period’’. 
(53) Section 2804(b) is amended by striking 
‘‘21–day period’’ and inserting ‘‘14–day period’’. 
(54) Section 2805(b) is amended—
(A) 
in 
paragraph 
(1), 
by 
striking 
‘‘$750,000’’ and inserting ‘‘$1,000,000’’; and 
(B) in paragraph (2), by striking ‘‘by strik-
ing ‘‘21–day period’’ and inserting ‘‘seven-day 
period’’’. 
(55) Section 2807 is amended—
(A) in subsection (b)—
(i) by striking ‘‘$500,000’’ and insert-
ing ‘‘$1,000,000’’; and 
(ii) by striking ‘‘not less than 21 
days’’; and 
(B) in subsection (c)(2), by striking ‘‘21 
days’’ and inserting ‘‘14 days’’. 
(56) Section 2809(f)(2) is amended by striking 
‘‘21 calendar days’’ and inserting ‘‘14 days’’. 
(57) Section 2812(c)(1)(B) is amended by strik-
ing ‘‘21 days’’ and inserting ‘‘14 days’’.
272
(58) Section 2813(c) is amended by striking 
‘‘30–day period’’ and inserting ‘‘21–day period’’. 
(59) Section 2825 is amended—
(A) by striking ‘‘21 days’’ in the last sen-
tence of subsection (b)(1)(B) and inserting ‘‘14 
days’’; and 
(B) by striking ‘‘21 days’’ in subsection 
(c)(1)(D) and inserting ‘‘14 days’’. 
(60) Section 2826 is amended—
(A) 
by 
striking 
‘‘(a) 
LOCAL
COM-
PARABILITY.—’’; and 
(B) by striking subsection (b). 
(61) Section 2827(b)(2) is amended by striking 
‘‘21 days’’ and inserting ‘‘14 days’’. 
(62) Section 2836(f)(2) is amended by striking 
‘‘21 calendar days’’ and inserting ‘‘14 days’’. 
(63) Section 2837(c)(2) is amended by striking 
‘‘21–day period’’ and inserting ‘‘14–day period’’. 
(64) Section 2854(b) is amended by striking 
‘‘21–day period’’ and inserting ‘‘seven-day period’’. 
(65) Section 2854a(c)(2) is amended by striking 
‘‘21 calendar days’’ and inserting ‘‘14 days’’. 
(66) Section 2865 is amended—
(A) in subsection (e)—
273
(i) by striking ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(ii) by striking paragraph (2); and 
(B) by striking subsection (f). 
(67) Section 2866(c) is amended—
(A) by striking ‘‘(1)’’ before ‘‘The Sec-
retary’’; and 
(B) by striking paragraph (2). 
(68) Section 2867(c) is amended by striking 
‘‘21–day period’’ and inserting ‘‘14–day period’’. 
(69) Section 2875(e) is amended by striking 
‘‘30–day period’’ and inserting ‘‘14–day period’’. 
(70) Section 2883(f) is amended by striking 
‘‘30–day period’’ and inserting ‘‘14–day period’’. 
(71) Section 2902(g) is amended—
(A) by striking paragraph (2); and 
(B) by striking ‘‘(1)’’ after ‘‘(g)’’. 
(72) Section 4342(h) is amended by striking 
‘‘Secretary of the Army’’ and inserting ‘‘Super-
intendent’’. 
(73) Section 4357(c) is amended is amended by strik-
ing ‘‘the expiration of 30 days following’’. 
(74) Section 6954(f) is amended by striking 
‘‘Secretary of the Navy’’ and inserting ‘‘Super-
intendent of the Naval Academy’’.
274
(75) Section 6975(c) is amended is amended by 
striking ‘‘the expiration of 30 days following’’. 
(76) Section 7049(c) is amended—
(A) by striking ‘‘CERTIFICATION’’ in the 
subsection heading and inserting ‘‘DETERMINA-
TION’’; and 
(B) by striking ‘‘, and certifies to’’ and all 
that follows through ‘‘House of Representatives,’’. 
(77) Section 9342(h) is amended by striking 
‘‘Secretary of the Air Force’’ and inserting ‘‘Super-
intendent’’. 
(78) Section 9356(c) is amended is amended by 
striking ‘‘the expiration of 30 days following’’. 
(79) Section 12302—
(A) in subsection (b), by striking the last 
sentence; and 
(B) by striking subsection (d). 
(80)(A) Section 16137 is repealed. 
(B) The table of sections at the beginning of 
chapter 1606 is amended by striking the item relating 
to section 16137. 
(b) FOREIGN ASSISTANCE ACT OF 1961.—Section 656 
of the Foreign Assistance Act of 1961 (22 U.S.C. 2416) is 
repealed.
275
(c) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1991.—Part B of title XXIX of the National 
Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101–510; 10 U.S.C. 2687 note) is amended as follows: 
(1) Section 2921 is amended—
(A) in subsection (f)(1), by striking ‘‘30 
days’’ and inserting ‘‘14 days’’; and 
(B) in subsection (g), by striking ‘‘30 days’’ 
in paragraphs (1) and (2) and inserting ‘‘14 
days’’. 
(2) Section 2926 is amended by striking sub-
section (g). 
(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEARS 1992 AND 1993.—The National Defense Au-
thorization Act for Fiscal Years 1992 and 1993 (Public 
Law 102–190) is amended as follows: 
(1) Section 734 (10 U.S.C. 1074 note) is amend-
ed by striking subsection (c). 
(2) Section 2868 (10 U.S.C. 2802 note) is 
amended by striking ‘‘The Secretary of Defense’’ and 
all that follows through ‘‘is to be authorized’’ and in-
serting ‘‘Not later than 30 days after the date on 
which a decision is made selecting the site or sites for 
the permanent basing of a new weapon system, the 
Secretary of Defense shall submit to Congress’’.
276
(e) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1993.—The National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102–484) is amended 
as follows: 
(1) Section 324 (10 U.S.C. 2701 note) is amend-
ed—
(A) by striking ‘‘(a) SENSE
OF
CON-
GRESS.—’’; and 
(B) by striking subsection (b). 
(2) Section 1082(b)(1) (10 U.S.C. 113 note) is 
amended by striking ‘‘the Secretary of Defense—’’ 
and all that follows and inserting ‘‘the Secretary of 
Defense determines that it is in the national security 
interests of the United States for the military depart-
ments to do so.’’. 
(f) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1995.—Section 721 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 10 U.S.C. 1074 note) is amended by striking subsection 
(h). 
(g) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1997.—The National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104–201) is amended 
as follows:
277
(1) Section 324 (10 U.S.C. 2706 note) is amend-
ed by striking subsection (c). 
(2) Section 1065(b) (10 U.S.C. 113 note) is 
amended—
(1) by striking ‘‘(1)’’ before ‘‘Notwith-
standing’’; and 
(2) by striking paragraph (2). 
(h) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 
1997.—Section 8009 of the Department of Defense Appro-
priations Act, 1997 (as contained in section 101(b) of Pub-
lic Law 104–208; 110 Stat. 3009-89), is amended by strik-
ing ‘‘, unless the congressional defense committees have been 
notified at least thirty days in advance of the proposed con-
tract award’’. 
(i) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1998.— Section 349 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105–
85; 10 U.S.C. 2702 note) is amended by striking subsection 
(e). 
(j) STROM THURMOND NATIONAL DEFENSE AUTHOR-
IZATION ACT FOR FISCAL YEAR 1999.—The Strom Thur-
mond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105–261) is amended as follows: 
(1) Section 745(e) (10 U.S.C. 1071 note) is 
amended—
278
(A) by striking ‘‘(1)’’ before ‘‘The Secretary 
of Defense’’; and 
(B) by striking paragraph (2). 
(2) Section 1223 (22 U.S.C. 1928 note) is re-
pealed. 
(k) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2000.—The National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106–65) is amended 
as follows: 
(1) Section 212 (10 U.S.C. 2501 note) is amend-
ed by striking subsection (c). 
(2) Section 724 (10 U.S.C. 1092 note) is amend-
ed by striking subsection (e). 
(4) Section 1039 (10 U.S.C. 113 note) is amend-
ed by striking subsection (b). 
(l) MILITARY CONSTRUCTION APPROPRIATIONS ACT, 
2001.—Section 125 of the Military Construction Appro-
priations Act, 2001 (division A of Public Law 106–246; 
114 Stat. 517), is repealed. 
(m) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 
2001.—Section 8019 of the Department of Defense Appro-
priations Act, 2001 (Public Law 106–259; 114 Stat. 678; 
10 U.S.C. 2687 note), is amended by striking ‘‘of Congress:’’ 
and all that follows through ‘‘this provision’’ and inserting 
‘‘of Congress’’.
279
(n) FLOYD D. SPENCE NATIONAL DEFENSE AUTHOR-
IZATION ACT FOR FISCAL YEAR 2001.—Section 1006 of the 
Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106–
398; 114 Stat. 1654A–247; 10 U.S.C. 2226 note), is amend-
ed by striking subsection (c). 
(o) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 
2002.—Section 8009 of the Department of Defense Appro-
priations Act, 2002 (division A of Public Law 107–117; 
115 Stat. 2249; 10 U.S.C. 401 note), is amended by striking 
‘‘, and these obligations shall be reported to the Congress’’. 
SEC. 1022. REPORT ON OPERATION IRAQI FREEDOM. 
(a) REPORT REQUIRED.—Not later than June 15, 
2004, the Secretary of Defense shall submit to the Com-
mittee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report 
on Operation Iraqi Freedom. The Secretary shall submit 
to those committees a preliminary report on the conduct 
of those hostilities not later than January 15, 2004. 
(b) DISCUSSION OF ACCOMPLISHMENTS AND SHORT-
COMINGS.—The report (and the preliminary report, to the 
extent feasible) shall contain a discussion, with a particular 
emphasis on accomplishments and shortcomings, of the fol-
lowing matters:
280
(1) The military objectives of the multinational 
coalition. 
(2) The military strategy of the multinational 
coalition to achieve those military objectives and how 
the military strategy contributed to the achievement 
of those objectives. 
(3) The deployment of United States forces and 
the transportation of supplies to the theater of oper-
ations, including an assessment of airlift, sealift, 
afloat 
prepositioning 
ships, 
and 
Maritime 
Prepositioning Squadron ships. 
(4) The conduct of military operations. 
(5) The use of special operations forces, includ-
ing operational and intelligence uses classified under 
special access procedures. 
(6) The use and performance of United States 
military equipment, weapon systems, and munitions 
(including items classified under special access proce-
dures) and an analysis of—
(A) any equipment or capabilities that were 
in research and development and if available 
could have been used in the theater of operations; 
and
281
(B) any equipment or capabilities that were 
available and could have been used but were not 
introduced into the theater of operations. 
(7) The scope of logistics support, including sup-
port from other nations. 
(8) The acquisition policies and processes used to 
support the forces in the theater of operations. 
(9) The personnel management actions taken to 
support the forces in the theater of operations. 
(10) The effectiveness of reserve component forces, 
including a discussion of each of the following mat-
ters: 
(A) The readiness and activation of such 
forces. 
(B) The decisionmaking process regarding 
both activation of reserve component forces and 
deployment of those forces to the theater of oper-
ations. 
(C) The post-activation training received by 
such forces. 
(D) The integration of forces and equipment 
of reserve component forces into the active com-
ponent forces.
282
(E) The use and performance of the reserve 
component forces in operations in the theater of 
operations. 
(F) The use and performance of such forces 
at duty stations outside the theater of operations. 
(11) The role of the law of armed conflict in the 
planning and execution of military operations by 
United States forces and the other coalition forces and 
the effects on operations of Iraqi compliance or non-
compliance with the law of armed conflict, including 
a discussion regarding each of the following matters: 
(A) Use of Iraqi civilians as human shields. 
(B) Collateral damage and civilian casual-
ties. 
(C) Treatment of prisoners of war. 
(D) Repatriation of prisoners of war. 
(E) Use of ruses and acts of perfidy. 
(F) War crimes. 
(G) Environmental terrorism. 
(H) Conduct of neutral nations. 
(12) The actions taken by the coalition forces in 
anticipation of, and in response to, Iraqi acts of envi-
ronmental terrorism.
283
(13) The actions taken by the coalition forces in 
anticipation of possible Iraqi use of weapons of mass 
destruction. 
(14) Evidence of Iraqi weapons of mass destruc-
tion programs and Iraqi preparations for the use of 
such weapons. 
(15) The contributions of United States and coa-
lition intelligence and counterintelligence systems and 
personnel, including contributions regarding bomb 
damage assessments and particularly including 
United States tactical intelligence and related activi-
ties (TIARA) programs and the Joint Military Intel-
ligence Program (JMIP). 
(16) Command, control, communications, and 
operational security of the coalition forces as a whole, 
and command, control, communications, and oper-
ational security of the United States forces. 
(17) The rules of engagement for the coalition 
forces. 
(18) The actions taken to reduce the casualties 
among coalition forces caused by the fire of such 
forces. 
(19) The role of supporting combatant com-
mands and Defense Agencies of the Department of De-
fense.
284
(20) The policies and procedures relating to the 
media, including the use of embedded media. 
(21) The assignment of roles and missions to the 
United States forces and other coalition forces and the 
performance of those forces in carrying out their as-
signed roles and missions. 
(22) The preparedness, including doctrine and 
training, of the United States forces. 
(23) The acquisition of foreign military tech-
nology from Iraq, and any compromise of military 
technology of the United States or other countries in 
the multinational coalition. 
(24) The problems posed by Iraqi possession and 
use of equipment produced in the United States and 
other coalition nations. 
(25) The use of deception by Iraqi forces and by 
coalition forces. 
(26) The military criteria used to determine 
when to progress from one phase of military oper-
ations to another phase of military operations. 
(27) The role, if any, of the Status of Resources 
and Training System (SORTS) in determining which 
units would be employed during the operation. 
(28) The role of the Coast Guard.
285
(29) The direct and indirect cost of military op-
erations, including an assessment of the total incre-
mental expenditures made by the Department of De-
fense as a result of Operation Iraqi Freedom. 
(c) CASUALTY STATISTICS.—The report (and the pre-
liminary report, to the extent feasible) shall also contain—
(1) the number of military and civilian casual-
ties sustained by coalition nations; and 
(2) estimates of such casualties sustained by Iraq 
and by nations not directly participating in hos-
tilities during Operation Iraqi Freedom. 
(d) CLASSIFICATION OF REPORTS.—The Secretary of 
Defense shall submit both the report and the preliminary 
report in a classified form and an unclassified form. 
SEC. 1023. REPORT ON DEPARTMENT OF DEFENSE POST-
CONFLICT ACTIVITIES IN IRAQ 
(a) REPORT REQUIRED.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of De-
fense shall submit to Congress a report on the activities of 
the Department of Defense in post-conflict Iraq. 
(b) REPORT ELEMENTS.—The report shall discuss the 
range of infrastructure reconstruction, civil administration, 
humanitarian assistance, interim governance, and political 
development activities undertaken in Iraq by officials of the 
Department and by those civilians reporting to the Sec-
286
retary of Defense and the missions undertaken in Iraq by 
United States military forces during the post-conflict pe-
riod. In particular, the report shall include a discussion 
of the following: 
(1) The evolution of the organizational structure 
of the civilian groups reporting to the Secretary, in-
cluding the Office of Reconstruction and Humani-
tarian Assistance, on issues of Iraqi post-conflict ad-
ministration and reconstruction and the factors influ-
encing that evolution. 
(2) The relationship of the Department of De-
fense with other United States departments and agen-
cies involved in post-conflict administration and re-
construction planning and execution in Iraq. 
(3) The relationship of Department of Defense 
entities, including the Office of Reconstruction and 
Humanitarian Assistance, with intergovernmental 
and nongovernmental organizations contributing to 
the reconstruction and governance efforts. 
(4) Progress made to the date of the report in—
(A) rebuilding Iraqi infrastructure; 
(B) providing for the humanitarian needs 
of the Iraqi people; 
(C) reconstituting the Iraqi governmental 
bureaucracy and its provision of services; and
287
(D) 
developing 
mechanisms 
of 
fully 
transitioning Iraq to representative self-govern-
ment. 
(5) Progress made to the date of the report by 
Department of Defense civilians and military per-
sonnel in accounting for any Iraqi weapons of mass 
destruction and associated weapons capabilities. 
(6) Progress made to the date of the report by 
United States military personnel in providing secu-
rity in Iraq and in transferring security functions to 
a reconstituted Iraqi police force and military. 
(7) The Secretary’s assessment of the scope of the 
ongoing needed commitment of United States mili-
tary forces and of the remaining tasks to be completed 
by Department of Defense civilian personnel in the 
governance and reconstruction areas, including an es-
timate of the total expenditures the Department of 
Defense expects to make for activities in post-conflict 
Iraq.
SEC. 1024. REPORT ON DEVELOPMENT OF MECHANISMS TO 
BETTER CONNECT DEPARTMENT OF DEFENSE 
SPACE CAPABILITIES TO THE WAR FIGHTER. 
Not later than March 15, 2004, the Secretary of De-
fense shall submit to the congressional defense committees 
a report on development and implementation of systematic
288
mechanisms to provide for integrating into activities of the 
United States Strategic Command planning and require-
ments for connecting space capabilities of that command 
with the war fighter. 
Subtitle D—Procurement of Defense 
Biomedical Countermeasures 
SEC. 1031. RESEARCH AND DEVELOPMENT OF DEFENSE 
BIOMEDICAL COUNTERMEASURES. 
(a) IN GENERAL.—The Secretary of Defense (in this 
section referred to as the ‘‘Secretary’’) shall carry out a pro-
gram to accelerate the research, development and procure-
ment of biomedical countermeasures, including but not lim-
ited to therapeutics and vaccines, for the protection of the 
Armed Forces from attack by one or more biological, chem-
ical, radiological, or nuclear agents. 
(b) INTERAGENCY COOPERATION.—(1) In carrying out 
the program under subsection (a), the Secretary may enter 
into interagency agreements and other collaborative under-
takings with other Federal agencies. Under such agreements 
and undertakings, the participating agencies are authorized 
to provide funds and receive funds from other participating 
agencies. 
(2) The Secretary, in consultation with the Secretary 
of Health and Human Services and the Secretary of Home-
land Security, shall ensure that the activities of the Depart-
289
ment of Defense in carrying out the program are coordi-
nated with, complement, and do not unnecessarily duplicate 
activities of the Department of Health and Human Services 
or the Department of Homeland Security. 
(c) EXPEDITED PROCUREMENT AUTHORITY.—(1)(A) 
For any procurement by the Secretary, of property or serv-
ices for use (as determined by the Secretary) in performing, 
administering, or supporting biomedical countermeasures 
research or development, the amount specified in section 
4(11) of the Office of Federal Procurement Policy Act (41 
U.S.C. 403(11)), as applicable pursuant to section 302A(a) 
of the Federal Property and Administrative Services Act 
of 1949 (41 U.S.C. 252a(a)), shall be deemed to be 
$25,000,000 in the administration, with respect to such 
procurement, of sections 302A(b) (41 U.S.C. 252a(b)) and 
303(g)(1)(A) (42 U.S.C. 253(g)(1)(A)) of the Federal Prop-
erty and Administrative Services Act of 1949 and the regu-
lations implementing those sections. 
(B) The Secretary shall institute appropriate internal 
controls for use of the authority under subparagraph (A), 
including requirements for documenting the justification for 
each use of such authority. 
(2)(A) For a procurement described in paragraph (1), 
the amount specified in subsections (c), (d), and (f) of sec-
tion 32 of the Office of Federal Procurement Policy Act (41
290
U.S.C. 428) shall be deemed to be $15,000 in the adminis-
tration of that section with respect to such procurement. 
(B) The Secretary shall institute appropriate internal 
controls for each use of the authority under subparagraph 
(A) for a procurement greater than $2,500. 
(d) FACILITIES AUTHORITY.—(1) The Secretary may 
acquire, lease, construct, improve, renovate, remodel, repair, 
operate, and maintain laboratories, other research facilities 
and equipment, and other real or personal property that 
the Secretary determines necessary for carrying out the pro-
gram under this section. The authority under this para-
graph is in addition to any other authority under law. 
(2) The Secretary may exercise the authorities of para-
graph (1) as part of an intergency cooperation activity 
under subsection (b). 
(e) AUTHORITY
FOR
PERSONAL
SERVICES
CON-
TRACTS.—The authority provided by section 1091 of title 
10, United States Code, for personal services contracts to 
carry out health care responsibilities in medical treatment 
facilities of the Department of Defense shall also be avail-
able, subject to the same terms and conditions, for personal 
services contracts to carry out research and development ac-
tivities under this section. The number of individuals whose 
personal services are obtained under this subsection may 
not exceed 30 at any time.
291
(f) 
STREAMLINED
PERSONNEL
AUTHORITY.—(1) 
Without regard to any provision of title 5, United States 
Code, governing appointments in the competitive service, 
and without regard to any provision of chapter 51, or sub-
chapter III of chapter 43, of such title relating to classifica-
tion and General Schedule pay rates, the Secretary may 
appoint professional and technical employees, not to exceed 
30 such employees at any time, to positions in the Depart-
ment of Defense to carry out research and development 
under the program under this section. The authority under 
this paragraph is in addition to any other authority under 
law. 
(2) The Secretary may use the authority under para-
graph (1) only upon a determination by the Secretary that 
use of such authority is necessary to accelerate the research 
and development under the program. 
(3) The Secretary shall institute appropriate internal 
controls for each use of the authority under paragraph (1). 
SEC. 1032. PROCUREMENT OF DEFENSE BIOMEDICAL COUN-
TERMEASURES. 
(a) DETERMINATION
OF MATERIAL THREATS.—(1) 
The Secretary of Defense (in this section referred to as the 
‘‘Secretary’’), in consultation with the Secretary of Health 
and Human Services and the Secretary of Homeland Secu-
rity shall on an ongoing basis—
292
(A) assess current and emerging threats of use of 
biological, chemical, radiological, and nuclear agents; 
and 
(B) identify, on the basis of such assessment, 
those agents that present a material risk of use 
against the Armed Forces. 
(2) The Secretary, in consultation with the Secretary 
of Health and Human Services and the Secretary of Home-
land Security, shall on an ongoing basis—
(A) assess the potential consequences to the 
health of members of the Armed Forces of use against 
the Armed Forces of the agents identified under para-
graph (1)(B); and 
(B) identify, on the basis of such assessment, 
those agents for which countermeasures are necessary 
to protect the health of members of the Armed Forces. 
(b) ASSESSMENT OF AVAILABILITY AND APPROPRIATE-
NESS OF COUNTERMEASURES.—The Secretary, in consulta-
tion with the Secretary of Health and Human Services and 
the Secretary of Homeland Security, shall on an ongoing 
basis assess the availability and appropriateness of specific 
countermeasures to address specific threats identified under 
subsection (a). 
(c) SECRETARY’S
DETERMINATION
OF
COUNTER-
MEASURES APPROPRIATE
FOR PROCUREMENT.—(1) The
293
Secretary, in accordance with paragraph (2), shall on an 
ongoing basis identify specific countermeasures that the 
Secretary determines to be appropriate for procurement for 
the Department of Defense stockpile of biomedical counter-
measures. 
(2) The Secretary may not identify a specific counter-
measure under paragraph (1) unless the Secretary deter-
mines that—
(A) the countermeasure is a qualified counter-
measure; and 
(B) it is reasonable to expect that producing and 
delivering, within 5 years, the quantity of that coun-
termeasure required to meet the needs of the Depart-
ment (as determined by the Secretary) is feasible. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘qualified countermeasure’’ means 
a biomedical countermeasure—
(A) that is approved under section 505(a) of 
the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 355) or licensed under section 351 of the 
Public Health Service Act (42 U.S.C. 262), or 
that is approved under section 515 or cleared 
under section 510(k) of the Federal Food, Drug, 
and Cosmetic Act (21 U.S.C. 360e and 360) for 
use as such a countermeasure to a biological,
294
chemical, radiological, or nuclear agent identi-
fied as a material threat under subsection (a); or 
(B) with respect to which the Secretary, in 
consultation with the Secretary of Health and 
Human Services, makes a determination that 
sufficient and satisfactory clinical experience or 
research data (including data, if available, from 
preclinical and clinical trials) exists to support 
a reasonable conclusion that the product will, 
not later than 5 years after the date on which 
the Secretary identifies the product under sub-
section (c)(1), qualify for such approval or li-
censing for use as such a countermeasure. 
(2) The term ‘‘biomedical countermeasure’’ 
means a drug (as defined in section 201(g)(1) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321(g)(1))), device (as defined in section 201(h) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 
321(h))), or biological product (as defined in section 
351(i) of the Public Health Service Act (42 U.S.C. 
262(i)) that is—
(A) used to treat, identify, or prevent harm 
from any biological, chemical, radiological, or 
nuclear agent that may cause a military health 
emergency affecting the Armed Forces; or
295
(B) used to treat, identify, or prevent harm 
from a condition that may result in adverse 
health consequences or death and may be caused 
by administering a drug or biological product 
that is used as described in subparagraph (A). 
(e) FUNDING.—(1) Of the amount authorized to be ap-
propriated for the Department of Defense and available 
within the transfer authority established under section 1001 
of this Act for fiscal year 2004 and for each fiscal year 
thereafter, such sums are authorized as may be necessary 
for the costs incurred by the Secretary in the procurement 
of countermeasures under this section, subject to paragraph 
(2). 
(2) Amounts authorized to be appropriated under 
paragraph (1) shall not be available to pay—
(A) costs for the purchase of vaccines under pro-
curement contracts entered into before January 1, 
2003; 
(B) costs under new contracts, or costs of new ob-
ligations under contracts previously entered into, for 
procurement of a countermeasure after the date of a 
determination under subsection (c)(2)(D) that the 
countermeasure does have a significant commercial 
market other than as a biomedical countermeasure; or 
(C) administrative costs.
296
SEC. 1033. AUTHORIZATION FOR USE OF MEDICAL PROD-
UCTS IN EMERGENCIES. 
(a) USE OF MEDICAL PRODUCTS AUTHORIZED.—Dur-
ing the period in which a declaration of emergency under 
subsection (b) is in effect, the Secretary of Defense, in ac-
cordance with this section, may authorize the use on mem-
bers of the Armed Forces of a drug or device intended solely 
for use in an actual or potential emergency. 
(b) DECLARATION OF EMERGENCY.—(1) A declaration 
of emergency referred to in subsection (a) is a declaration 
by the Secretary of Defense that there exists a military 
emergency, or a significant potential for a military emer-
gency, involving a heightened risk to the Armed Forces of 
attack by one or more biological, chemical, radiological, or 
nuclear agents. 
(2) Subject to paragraph (3), the period during which 
a declaration of emergency under this subsection is in effect 
begins upon the making of the declaration and ends upon 
the first to occur of the following events: 
(A) The making of a determination by the Sec-
retary that the military emergency, or the significant 
potential for a military emergency, has ceased to 
exist. 
(B) The expiration of the one-year period begin-
ning on the date on which the declaration of emer-
gency is made.
297
(3) Before the expiration of the period during which 
a declaration of emergency is in effect, the Secretary may 
declare one or more extensions of that declaration of emer-
gency. In such a case, the date on which the most recent 
extension was declared shall be treated for purposes of sub-
section (2)(B) as the date on which the declaration of emer-
gency is made. 
(c) CRITERIA FOR ISSUANCE OF AUTHORIZATION.—
The Secretary, in consultation with the Secretary of Health 
and Human Services, may use the authority under sub-
section (a) with respect to a biomedical countermeasure 
only if the Secretary make a determination that—
(1) an agent to which a declaration of emergency 
under subsection (b) relates can cause a serious or 
life-threatening disease or condition; 
(2) based on the totality of scientific evidence 
available to the Secretary, including data from ade-
quate and well-controlled clinical trials, if available, 
it is reasonable to believe that—
(A) such countermeasure may be effective in 
detecting, diagnosing, treating, or preventing 
such disease or condition; or 
(B) the known and potential benefits of such 
countermeasure, when used to detect, diagnose, 
treat, or prevent such disease or condition, out-
298
weigh the known and potential risks of such 
countermeasure; 
(3) no adequate, approved, and available alter-
native exists to such countermeasure for detecting, di-
agnosing, treating, or preventing such disease or con-
dition; and 
(4) such other criteria as the Secretary may by 
regulation prescribe are satisfied. 
(d) SCOPE OF AUTHORIZATION.—For each use of the 
authority under subsection (a), the Secretary, in consulta-
tion with the Secretary of Health and Human Services, 
shall—
(1) specify each disease or condition that the bio-
logical countermeasure may be used to detect, diag-
nose, treat, or prevent; and 
(2) set forth each determination under subsection 
(c) with respect to that countermeasure and the basis 
for each such determination. 
(e) CONDITION.—In carrying out this section, the Sec-
retary shall ensure compliance with section 1107 of title 
10, United States Code, and section 731(a)(3) of the Strom 
Thurmond National Defense Authorization Act for Fiscal 
Year 1999 (Public Law 105–261; 112 Stat. 2071; 10 U.S.C. 
1107 note).
299
Subtitle E—Other Matters 
SEC. 1041. CODIFICATION AND REVISION OF DEFENSE 
COUNTERINTELLIGENCE 
POLYGRAPH 
PRO-
GRAM AUTHORITY. 
(a) CODIFICATION.—(1) Chapter 21 of title 10, United 
States Code, is amended by inserting after section 425 the 
following new section: 
‘‘§ 426. Counterintelligence polygraph program 
‘‘(a) AUTHORITY FOR PROGRAM.—The Secretary of 
Defense may carry out a program for the administration 
of counterintelligence polygraph examinations to persons 
described in subsection (b). The program shall be based on 
Department of Defense Directive 5210.48, dated December 
24, 1984. 
‘‘(b) PERSONS COVERED.—Except as provided in sub-
section (c), the following persons whose duties involve access 
to information that has been classified at the level of top 
secret or designated as being within a special access pro-
gram under section 4.4(a) of Executive Order 12958 (or a 
successor Executive order) are subject to this section: 
‘‘(1) Military and civilian personnel of the De-
partment of Defense. 
‘‘(2) Personnel of defense contractors. 
‘‘(3) A person assigned or detailed to the Depart-
ment of Defense.
300
‘‘(4) An applicant for a position in the Depart-
ment of Defense. 
‘‘(c) EXCEPTIONS FROM COVERAGE FOR CERTAIN IN-
TELLIGENCE AGENCIES AND FUNCTIONS.—This section does 
not apply to the following persons: 
‘‘(1) A person assigned or detailed to the Central 
Intelligence Agency or to an expert or consultant 
under a contract with the Central Intelligence Agen-
cy. 
‘‘(2) A person who is—
‘‘(A) employed by or assigned or detailed to 
the National Security Agency; 
‘‘(B) an expert or consultant under contract 
to the National Security Agency; 
‘‘(C) an employee of a contractor of the Na-
tional Security Agency; or 
‘‘(D) a person applying for a position in 
the National Security Agency. 
‘‘(3) A person assigned to a space where sensitive 
cryptographic information is produced, processed, or 
stored. 
‘‘(4) A person employed by, or assigned or de-
tailed to, an office within the Department of Defense 
for the collection of specialized national foreign intel-
301
ligence through reconnaissance programs or a con-
tractor of such an office. 
‘‘(d) OVERSIGHT.—(1) The Secretary shall establish a 
process to monitor responsible and effective application of 
polygraphs within the Department of Defense. 
‘‘(2) The Secretary shall make information on the use 
of polygraphs within the Department of Defense available 
to the congressional defense committees. 
‘‘(e) POLYGRAPH RESEARCH PROGRAM.—The Sec-
retary of Defense shall carry out a continuing research pro-
gram to support the polygraph activities of the Department 
of Defense. The program shall include—
‘‘(1) an on-going evaluation of the validity of 
polygraph techniques used by the Department; 
‘‘(2) research on polygraph countermeasures and 
anti-countermeasures; and 
‘‘(3) developmental research on polygraph tech-
niques, instrumentation, and analytic methods.’’. 
(2) The table of sections at the beginning of subchapter 
I of such chapter is amended by adding at the end the fol-
lowing new item:
‘‘426. Counterintelligence polygraph program.’’.
(b) CONFORMING REPEAL.—Section 1121 of the Na-
tional Defense Authorization Act for Fiscal Years 1988 and 
1989 (10 U.S.C. 113 note), is repealed.
302
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2003. 
SEC. 1042. CODIFICATION AND REVISION OF LIMITATION 
ON MODIFICATION OF MAJOR ITEMS OF 
EQUIPMENT SCHEDULED FOR RETIREMENT 
OR DISPOSAL. 
(a) IN GENERAL.—(1) Chapter 134 of title 10, United 
States Code, is amended by inserting after section 2244 the 
following new section: 
‘‘§ 2244a. Equipment scheduled for retirement or dis-
posal: 
limitation 
on 
expenditures 
for 
modifications 
‘‘(a) PROHIBITION.—Except as otherwise provided in 
this section, the Secretary of a military department may 
not carry out a significant modification of an aircraft, 
weapon, vessel, or other item of equipment that the Sec-
retary plans to retire or otherwise dispose of within five 
years after the date on which the modification, if carried 
out, would be completed. 
‘‘(b) SIGNIFICANT
MODIFICATIONS
DEFINED.—For 
purposes of this section, a significant modification is any 
modification for which the cost is in an amount equal to 
or greater than $1,000,000.
303
‘‘(c) EXCEPTION FOR SAFETY MODIFICATIONS.—The 
prohibition in subsection (a) does not apply to a safety 
modification. 
‘‘(d) WAIVER AUTHORITY.—The Secretary concerned 
may waive the prohibition in subsection (a) in the case of 
any modification otherwise subject to that subsection if the 
Secretary determines that carrying out the modification is 
in the national security interest of the United States. When-
ever the Secretary issues such a waiver, the Secretary shall 
notify the congressional defense committees in writing.’’. 
(2) The table of sections at the beginning of such sub-
chapter is amended by inserting after the item relating to 
section 2244 the following new item:
‘‘2244a. Equipment scheduled for retirement or disposal: limitation on expendi-
tures for modifications.’’.
(b) CONFORMING REPEAL.—Section 8053 of the De-
partment of Defense Appropriations Act, 1998 (10 U.S.C. 
2241 note), is repealed. 
SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF 
TITLE 10, UNITED STATES CODE.
(a) GENERAL DEFINITIONS.—Section 101(a) of title 
10, United States Code, is amended by adding at the end 
the following new paragraphs: 
‘‘(16) The term ‘congressional defense commit-
tees’ means—
304
‘‘(A) the Committee on Armed Services and 
the Committee on Appropriations of the Senate; 
and 
‘‘(B) the Committee on Armed Services and 
the Committee on Appropriations of the House of 
Representatives. 
‘‘(17) The term ‘base closure law’ means the fol-
lowing: 
‘‘(A) Section 2687 of this title. 
‘‘(B) The Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of 
Public Law 101–510; 10 U.S.C. 2687 note). 
‘‘(C) Title II of the Defense Authorization 
Amendments and Base Closure and Realignment 
Act (Public Law 100–526; 10 U.S.C. 2687 note). 
(b) REFERENCES TO CONGRESSIONAL DEFENSE COM-
MITTEES.—Title 10, United States Code, is further amend-
ed as follows: 
(1) Section 135(e) is amended—
(A) by striking ‘‘(1)’’; 
(B) by striking ‘‘each congressional com-
mittee specified in paragraph (2)’’ and inserting 
‘‘each of the congressional defense committees’’; 
and 
(C) by striking paragraph (2).
305
(2) Section 153(c) is amended—
(A) by striking ‘‘committees of Congress 
named in paragraph (2)’’ and inserting ‘‘con-
gressional defense committees’’; 
(B) by striking paragraph (2); and 
(C) by designating the second sentence of 
paragraph (1) as paragraph (2) and in that 
paragraph (as so designated) by striking ‘‘The 
report’’ and inserting ‘‘Each report under para-
graph (1)’’. 
(3) Section 181(d)(2) is amended—
(A) by striking ‘‘subsection:’’ and all that 
follows through ‘‘oversight’’ and inserting ‘‘sub-
section, the term ‘oversight’’; and 
(B) by striking subparagraph (B). 
(4) Section 224 is amended by striking sub-
section (f). 
(5) Section 228(e) is amended—
(A) by striking ‘‘DEFINITIONS’’ and all that 
follows through ‘‘(1) The term’’ and inserting 
‘‘O&M BUDGET ACTIVITY DEFINED.—In this sec-
tion, the term’’; and 
(B) by striking paragraph (2). 
(6) Section 229 is amended by striking sub-
section (f).
306
(7) Section 1107(f)(4) is amended by striking 
subparagraph (C). 
(8) Section 2216(j) is amended by striking para-
graph (3). 
(9) Section 2218(l) is amended—
(A) by striking paragraph (4); and 
(B) by redesignating paragraph (5) as 
paragraph (4). 
(10) Section 2306b(l) is amended—
(A) by striking paragraph (9); and 
(B) by redesignating paragraph (10) as 
paragraph (9). 
(11) Section 2308(e)(2) is amended—
(A) by striking subparagraph (A); and 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (A) and (B), respec-
tively. 
(12) Section 2366(e) is amended—
(A) by striking paragraph (7); and 
(B) by redesignating paragraphs (8) and 
(9) as paragraphs (7) and (8), respectively. 
(13) Section 2399(h) is amended—
(A) by striking ‘‘DEFINITIONS.—’’ and all 
that follows through ‘‘(1) The term’’ and insert-
307
ing ‘‘OPERATIONAL TEST AND EVALUATION DE-
FINED.—In this section, the term’’; 
(B) by striking paragraph (2); 
(C) by redesignating subparagraphs (A), 
(B), and (C) as paragraphs (1), (2), and (3), re-
spectively; and 
(D) by realigning those paragraphs (as so 
redesignated) so as to be indented two ems from 
the left margin. 
(14) Section 2667(h) is amended by striking 
paragraph (1). 
(15) Section 2688(e)(1) is amended by striking 
‘‘the Committee on’’ the first place it appears and all 
that follows through ‘‘House of Representatives’’ and 
inserting ‘‘the congressional defense committees’’. 
(16) Section 2801(c)(4) is amended by striking 
‘‘the Committee on’’ the first place it appears and all 
that follows through ‘‘House of Representatives’’ and 
inserting ‘‘the congressional defense committees’’. 
(c) REFERENCES TO BASE CLOSURE LAWS.—Title 10, 
United States Code, is further amended as follows: 
(1) Section 2306c(h) is amended by striking 
‘‘ADDITIONAL’’ and all that follows through ‘‘(2) The 
term’’ and inserting ‘‘MILITARY INSTALLATION DE-
FINED.—In this section, the term’’.
308
(2) Section 2490a(f) is amended—
(A) by striking ‘‘DEFINITIONS.—’’ and all 
that follows through ‘‘(1) The term’’ and insert-
ing ‘‘NONAPPROPRIATED
FUND
INSTRUMEN-
TALITY DEFINED.—In this section, the term’’; 
and 
(B) by striking paragraph (2). 
(3) Section 2667(h), as amended by subsection 
(b)(13), is further amended by striking ‘‘section:’’ and 
all that follows through ‘‘(3) The term’’ and inserting 
‘‘section, the term’’. 
(4) Section 2696(e) is amended—
(A) by striking paragraphs (1), (2), (3), 
and (4) and inserting the following: 
‘‘(1) A base closure law.’’; and 
(B) by redesignating paragraph (6) as 
paragraph (2). 
(4) Section 2705 is amended by striking sub-
section (h). 
(5) Section 2871 is amended by striking para-
graph (2).
309
SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUC-
TION AUTHORIZATION REQUEST IN ANNUAL 
DEFENSE AUTHORIZATION REQUEST. 
(a) INCLUSION
OF MILITARY CONSTRUCTION RE-
QUEST.—Section 113a(b) of title 10, United States Code, 
is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3): 
‘‘(3) Authority to carry out military construc-
tion projects, as required by section 2802 of this 
title.’’. 
(b) REPEAL
OF SEPARATE TRANSMISSION
OF RE-
QUEST.—(1) Section 2859 of such title is repealed. 
(2) The table of sections at the beginning of subchapter 
III of chapter 169 of such title is amended by striking the 
item relating to section 2859. 
SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS. 
(a) TITLE 10, UNITED STATES CODE.—Title 10, 
United States Code, is amended as follows: 
(1) The tables of chapters at the beginning of 
subtitle A, and at the beginning of part IV of subtitle 
A, are amended by striking ‘‘2701’’ in the item relat-
ing to chapter 160 and inserting ‘‘2700’’.
310
(2) Section 101(a)(9)(D) is amended by striking 
‘‘Transportation’’ and inserting ‘‘Homeland Secu-
rity’’. 
(3) Section 2002(a)(2) is amended by striking 
‘‘Foreign Service Institute’’ and inserting ‘‘George P. 
Schultz National Foreign Affairs Training Center’’. 
(4)(A) Section 2248 is repealed. 
(B) The table of sections at the beginning of 
chapter 134 is amended by striking the item relating 
to section 2248. 
(5) Section 2305a(c) is amended by striking ‘‘the 
Brooks Architect-Engineers Act (40 U.S.C. 541 et 
seq.)’’ and inserting ‘‘chapter 11 of title 40’’. 
(6) Section 2432(h)(1) is amended by inserting 
‘‘program’’ in the first sentence after ‘‘for such’’. 
(7) Section 7503(d) is amended by inserting 
‘‘such’’ before ‘‘title III.’’
(b) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended as follows: 
(1) Section 323(a) is amended by striking ‘‘1 
year’’ in paragraphs (1) and (2) and inserting ‘‘one 
year’’. 
(2) Section 402(b) is amended—
(A) by striking paragraph (1); and
311
(B) in paragraph (2), by striking ‘‘On and 
after January 1, 2002, the’’ and inserting ‘‘The’’. 
(c) 
FLOYD
D. 
SPENCE
NATIONAL
DEFENSE 
AUTHORIZATON ACT FOR FISCAL YEAR 2001.—The Floyd 
D. Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106–398) 
is amended as follows: 
(1) Section 1308(c) (22 U.S.C. 5959) is amend-
ed—
(A) by redesignating paragraph (7) as 
paragraph (8); and 
(B) by redesignating the second paragraph 
(6) as paragraph (7). 
(2) Section 814 (10 U.S.C. 1412 note) is amend-
ed in subsection (d)(1) by striking ‘‘the Clinger-Cohen 
Act of 1996 (divisions D and E of Public Law 104–
106)’’ and inserting ‘‘subtitle III of title 40, United 
States Code’’. 
(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2000.—Section 1305 of the National Defense 
Authorization Act for Fiscal Year 2000 (Public Law 106–
65; 22 U.S.C. 5952 note) is amended by striking the second 
period at the end. 
(e) STROM THURMOND NATIONAL DEFENSE AUTHOR-
IZATION ACT FOR FISCAL YEAR 1999.—Section 819 of the
312
Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105–261; 112 Stat. 2089) 
is amended by striking ‘‘section 201(c) of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C. 
481(c)),’’ and inserting ‘‘section 503 of title 40, United 
States Code,’’.
(f) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1997.—Section 1084(e) of the National De-
fense Authorization Act for Fiscal Year 1997 (Public Law 
104–201; 110 Stat. 2675) is amended by striking ‘‘98–515’’ 
and inserting ‘‘98–525’’. The amendment made by the pre-
ceding sentence shall take effect as if included in Public 
Law 104–201. 
(g) FEDERAL ACQUISITION STREAMLINING ACT
OF 
1994.—Subsection (d) of section 1004 of the Federal Acquisi-
tion Streamlining Act of 1994 (Public Law 103–355; 108 
Stat, 3253) is amended by striking ‘‘under—’’ and all that 
follows through the end of paragraph (2) and inserting 
‘‘under chapter 11 of title 40, United States Code.’’. 
(h) ARMED FORCES RETIREMENT HOME ACT
OF 
1991.—Section 1520(b)(1)(C) of the Armed Forces Retire-
ment Home Act of 1991 (24 U.S.C. 420(b)(1)(C)) is amend-
ed by inserting ‘‘Armed Forces’’ before ‘‘Retirement Home 
Trust Fund’’.
313
SEC. 1046. AUTHORITY TO PROVIDE LIVING QUARTERS FOR 
CERTAIN STUDENTS IN COOPERATIVE AND 
SUMMER EDUCATION PROGRAMS OF THE NA-
TIONAL SECURITY AGENCY. 
Section 2195 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(d)(1) The Director of the National Security Agency 
may provide a qualifying employee of a defense laboratory 
of that Agency with living quarters at no charge, or at a 
rate or charge prescribed by the Director by regulation, 
without regard to section 5911(c) of title 5. 
‘‘(2) In this subsection, the term ‘qualifying employee’ 
means a student who is employed at the National Security 
Agency under—
‘‘(A) a Student Educational Employment Pro-
gram of the Agency conducted under this section or 
any other provision of law; or 
‘‘(B) a similar cooperative or summer education 
program of the Agency that meets the criteria for Fed-
eral cooperative or summer education programs pre-
scribed by the Office of Personnel Management.’’. 
SEC. 1047. USE OF DRUG INTERDICTION AND COUNTER-
DRUG FUNDS TO SUPPORT ACTIVITIES OF 
THE GOVERNMENT OF COLOMBIA. 
(a) AUTHORITY TO PROVIDE ASSISTANCE.—During 
fiscal years 2004 and 2005, the Secretary of Defense may
314
use funds made available to the Department of Defense for 
drug interdiction and counter-drug activities to provide as-
sistance to the Government of Colombia—
(1) to support a unified campaign against nar-
cotics trafficking in Colombia; 
(2) to support a unified campaign against ac-
tivities by designated terrorist organizations, such as 
the Revolutionary Armed Forces of Colombia (FARC), 
the National Liberation Army (ELN), and the United 
Self-Defense Forces of Colombia (AUC); and 
(3) to take actions to protect human health and 
welfare in emergency circumstances, including under-
taking rescue operations. 
(b) RELATION TO OTHER ASSISTANCE AUTHORITY.—
The authority provided by subsection (a) is in addition to 
other provisions of law authorizing the provision of assist-
ance to the Government of Colombia. 
SEC. 1048. AUTHORITY FOR JOINT TASK FORCES TO PRO-
VIDE SUPPORT TO LAW ENFORCEMENT AGEN-
CIES CONDUCTING COUNTER-TERRORISM AC-
TIVITIES. 
(a) AUTHORITY.—A joint task force of the Department 
of Defense that provides support to law enforcement agen-
cies conducting counter-drug activities may also provide, 
consistent with all applicable laws and regulations, support
315
to law enforcement agencies conducting counter-terrorism 
activities. 
(b) CONDITIONS.—Any support provided under sub-
section (a) may only be provided in the geographic area 
of responsibility of the joint task force. 
SEC. 1049. USE OF NATIONAL DRIVER REGISTER FOR PER-
SONNEL SECURITY INVESTIGATIONS AND DE-
TERMINATIONS. 
Section 30305(b) of title 49, United States Code, is 
amended—
(1) by redesignating paragraphs (9) through (11) 
as paragraphs (10) through (12), respectively; and 
(2) by inserting after paragraph (8) the fol-
lowing new paragraph: 
‘‘(9) An individual who is being investigated for—
‘‘(A) eligibility for access to a particular level of 
classified information for purposes of Executive Order 
12968, or any successor Executive order; or 
‘‘(B) Federal employment under authority of Ex-
ecutive Order 10450, or any successor Executive 
order, 
may request the chief driver licensing official of a State to 
provide information about the individual pursuant to sub-
section (a) of this section to a Federal department or agency 
that is authorized to investigate the individual for the pur-
316
pose of assisting in the determination of the eligibility of 
the individual for access to classified information or for 
Federal employment. A Federal department or agency that 
receives such information about an individual may use it 
in accordance with applicable law. Information may not 
be obtained from the Register under this paragraph if the 
information was entered in the Register more than 3 years 
before the request, unless the information is about a revoca-
tion or suspension still in effect on the date of the request.’’. 
SEC. 1050. PROTECTION OF OPERATIONAL FILES OF THE 
NATIONAL SECURITY AGENCY. 
The National Security Agency Act of 1959 (50 U.S.C. 
402 note) is amended by adding at the end the following 
new section: 
‘‘SEC. 19. (a) EXEMPTION OF CERTAIN OPERATIONAL 
FILES FROM SEARCH, REVIEW, PUBLICATION, OR DISCLO-
SURE.—(1) The Director of the National Security Agency, 
with the coordination of the Director of Central Intelligence, 
may exempt operational files of the National Security 
Agency from the provisions of section 552 of title 5, United 
States Code, which require publication, disclosure, search, 
or review in connection therewith. 
‘‘(2)(A) Subject to subparagraph (B), for the purposes 
of this section, the term ‘operational files’ means files of 
the National Security Agency that document the means by
317
which foreign intelligence or counterintelligence is collected 
through technical systems. 
‘‘(B) Files that contain disseminated intelligence are 
not operational files. 
‘‘(3) Notwithstanding paragraph (1), exempted oper-
ational files shall continue to be subject to search and review 
for information concerning—
‘‘(A) United States citizens or aliens lawfully 
admitted for permanent residence who have requested 
information on themselves pursuant to the provisions 
of section 552 of title 5 or section 552a of title 5, 
United States Code; 
‘‘(B) any special activity the existence of which 
is not exempt from disclosure under the provisions of 
section 552 of title 5, United States Code; or 
‘‘(C) the specific subject matter of an investiga-
tion by any of the following for any impropriety, or 
violation of law, Executive order, or Presidential di-
rective, in the conduct of an intelligence activity: 
‘‘(i) The Permanent Select Committee on 
Intelligence of the House of Representatives. 
‘‘(ii) The Select Committee on Intelligence 
of the Senate. 
‘‘(iii) The Intelligence Oversight Board. 
‘‘(iv) The Department of Justice.
318
‘‘(v) The Office of General Counsel of the 
National Security Agency. 
‘‘(vi) The Office of the Director of the Na-
tional Security Agency. 
‘‘(4)(A) Files that are not exempted under paragraph 
(1) which contain information derived or disseminated 
from exempted operational files shall be subject to search 
and review. 
‘‘(B) The inclusion of information from exempted oper-
ational files in files that are not exempted under paragraph 
(1) shall not affect the exemption under paragraph (1) of 
the originating operational files from search, review, publi-
cation, or disclosure. 
‘‘(C) The declassification of some of the information 
contained in exempted operational files shall not affect the 
status of the operational file as being exempt from search, 
review, publication, or disclosure. 
‘‘(D) Records from exempted operational files which 
have been disseminated to and referenced in files that are 
not exempted under paragraph (1) and which have been 
returned to exempted operational files for sole retention 
shall be subject to search and review. 
‘‘(5) The provisions of paragraph (1) may not be su-
perseded except by a provision of law which is enacted after
319
the date of the enactment of this section, and which specifi-
cally cites and repeals or modifies its provisions. 
‘‘(6)(A) Except as provided in subparagraph (B), 
whenever any person who has requested agency records 
under section 552 of title 5, United States Code, alleges that 
the National Security Agency has withheld records improp-
erly because of failure to comply with any provision of this 
section, judicial review shall be available under the terms 
set forth in section 552(a)(4)(B) of title 5, United States 
Code. 
‘‘(B) Judicial review shall not be available in the man-
ner provided for under subparagraph (A) as follows: 
‘‘(i) In any case in which information specifi-
cally authorized under criteria established by an Ex-
ecutive order to be kept secret in the interests of na-
tional defense or foreign relations which is filed with, 
or produced for, the court by the National Security 
Agency, such information shall be examined ex parte, 
in camera by the court. 
‘‘(ii) The court shall, to the fullest extent prac-
ticable, determine the issues of fact based on sworn 
written submissions of the parties. 
‘‘(iii) When a complainant alleges that requested 
records are improperly withheld because of improper 
placement solely in exempted operational files, the
320
complainant shall support such allegation with a 
sworn written submission based upon personal knowl-
edge or otherwise admissible evidence. 
‘‘(iv)(I) When a complainant alleges that re-
quested records were improperly withheld because of 
improper exemption of operational files, the National 
Security Agency shall meet its burden under section 
552(a)(4)(B) of title 5, United States Code, by dem-
onstrating to the court by sworn written submission 
that exempted operational files likely to contain re-
sponsive records currently perform the functions set 
forth in paragraph (2). 
‘‘(II) The court may not order the National Se-
curity Agency to review the content of any exempted 
operational file or files in order to make the dem-
onstration required under subclause (I), unless the 
complainant disputes the National Security Agency’s 
showing with a sworn written submission based on 
personal knowledge or otherwise admissible evidence. 
‘‘(v) In proceedings under clauses (iii) and (iv), 
the parties may not obtain discovery pursuant to 
rules 26 through 36 of the Federal Rules of Civil Pro-
cedure, except that requests for admission may be 
made pursuant to rules 26 and 36.
321
‘‘(vi) If the court finds under this paragraph 
that the National Security Agency has improperly 
withheld requested records because of failure to com-
ply with any provision of this subsection, the court 
shall order the Agency to search and review the ap-
propriate exempted operational file or files for the re-
quested records and make such records, or portions 
thereof, available in accordance with the provisions of 
section 552 of title 5, United States Code, and such 
order shall be the exclusive remedy for failure to com-
ply with this subsection. 
‘‘(vii) If at any time following the filing of a 
complaint pursuant to this paragraph the National 
Security Agency agrees to search the appropriate ex-
empted operational file or files for the requested 
records, the court shall dismiss the claim based upon 
such complaint. 
‘‘(viii) Any information filed with, or produced 
for the court pursuant to clauses (i) and (iv) shall be 
coordinated with the Director of Central Intelligence 
prior to submission to the court. 
‘‘(b) DECENNIAL
REVIEW
OF
EXEMPTED
OPER-
ATIONAL FILES.—(1) Not less than once every 10 years, the 
Director of the National Security Agency and the Director 
of Central Intelligence shall review the exemptions in force
322
under subsection (a)(1) to determine whether such exemp-
tions may be removed from the category of exempted files 
or any portion thereof. The Director of Central Intelligence 
must approve any determination to remove such exemp-
tions. 
‘‘(2) The review required by paragraph (1) shall in-
clude consideration of the historical value or other public 
interest in the subject matter of the particular category of 
files or portions thereof and the potential for declassifying 
a significant part of the information contained therein. 
‘‘(3) A complainant that alleges that the National Se-
curity Agency has improperly withheld records because of 
failure to comply with this subsection may seek judicial re-
view in the district court of the United States of the district 
in which any of the parties reside, or in the District of 
Columbia. In such a proceeding, the court’s review shall be 
limited to determining the following: 
‘‘(A) Whether the National Security Agency has 
conducted the review required by paragraph (1) before 
the expiration of the 10-year period beginning on the 
date of the enactment of this section or before the ex-
piration of the 10-year period beginning on the date 
of the most recent review.
323
‘‘(B) Whether the National Security Agency, in 
fact, considered the criteria set forth in paragraph (2) 
in conducting the required review.’’.
SEC. 1051. ASSISTANCE FOR STUDY OF FEASIBILITY OF BI-
ENNIAL INTERNATIONAL AIR TRADE SHOW IN 
THE UNITED STATES AND FOR INITIAL IM-
PLEMENTATION. 
(a) 
ASSISTANCE
FOR
COMMUNITY
FEASIBILITY 
STUDY.—(1) The Secretary of Defense shall provide assist-
ance to a community selected under subsection (d) for ex-
penses of a study by that community of the feasibility of 
the establishment and operation of a biennial international 
air trade show in the area of that community. 
(2) The Secretary shall provide for the community to 
submit to the Secretary a report containing the results of 
the study not later than September 30, 2004. The Secretary 
shall promptly submit the report to Congress, together with 
such comments on the report as the Secretary considers ap-
propriate. 
(b) ASSISTANCE FOR IMPLEMENTATION.—If the com-
munity conducting the study under subsection (a) deter-
mines that the establishment and operation of such an air 
show is feasible and should be implemented, the Secretary 
shall provide assistance to the community for the initial
324
expenses of implementing such an air show in the selected 
community. 
(c) AMOUNT OF ASSISTANCE.—The amount of assist-
ance provided by the Secretary under subsections (a) and 
(b)—
(1) may not exceed a total of $1,000,000, to be 
derived from amounts available for operation and 
maintenance for the Air Force for fiscal year 2004 or 
later fiscal years; and 
(2) may not exceed one-half of the cost of the 
study and may not exceed one-half the cost of such 
initial implementation. 
(d) SELECTION OF COMMUNITY.—The Secretary shall 
select a community for purposes of subsection (a) through 
the use of competitive procedures. In making such selection, 
the Secretary shall give preference to those communities that 
already sponsor an air show, have demonstrated a history 
of supporting air shows with local resources, and have a 
significant role in the aerospace community. The commu-
nity shall be selected not later than March 1, 2004.
SEC. 1052. CONTINUATION OF REASONABLE ACCESS TO 
MILITARY INSTALLATIONS FOR PERSONAL 
COMMERCIAL SOLICITATION. 
(a) CONTINUED ACCESS TO MEMBERS.—Section 2679 
of title 10, United States Code, is amended—
325
(1) in subsection (a), by inserting ‘‘ACCESS BY 
REPRESENTATIVES OF VETERANS’ ORGANIZATIONS.—
(1)’’ before ‘‘Upon certification’’; 
(2) by redesignating subsections (b) and (c) as 
paragraphs (2) and (3), respectively; 
(3) in paragraph (2), as so redesignated, by 
striking ‘‘subsection (a)’’ and inserting ‘‘paragraph 
(1)’’; 
(4) in paragraph (3), as so redesignated, by 
striking ‘‘section’’ and inserting ‘‘subsection’’; 
(5) by redesignating subsection (d) as subsection 
(c); and 
(6) by inserting before such subsection the fol-
lowing new subsection (b): 
‘‘(b) ACCESS FOR PERSONAL COMMERCIAL SOLICITA-
TION.—An amendment or other revision to a Department 
of Defense directive relating to access to military installa-
tions for the purpose of conducting limited personal com-
mercial solicitation shall not take effect until the end of the 
90-day period beginning on the date the Secretary of De-
fense submits to Congress notice of the amendment or revi-
sion and the reasons therefor.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of such 
section is amended to read as follows:
326
‘‘§ 2679. Access to and use of space and equipment at 
military installations: representatives of 
veterans’ organizations and other per-
sons’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 159 of such title is 
amended to read as follows:
‘‘2679. Access to and use of space and equipment at military installations: rep-
resentatives of veterans’ organizations and other persons.’’.
SEC. 1053. COMMISSION ON NUCLEAR STRATEGY OF THE 
UNITED STATES.
(a) ESTABLISHMENT OF COMMISSION.—
(1) ESTABLISHMENT.—There is hereby estab-
lished a commission to be known as the ‘‘Commission 
on Nuclear Strategy of the United States’’ (herein-
after this this section referred to as the ‘‘Commis-
sion’’). The Secretary of Defense, in consultation with 
the Secretary of Energy, shall enter into a contract 
with a federally funded research and development cen-
ter to provide for the organization, management, and 
suport of the Commission. 
(2) COMPOSITION.—(A) The Commission shall be 
composed of 12 members appointed by the Secretary 
of Defense. In selecting individuals for appointment 
to the Commission, the Secretary of Defense shall con-
sult with the chairman and ranking minority mem-
327
ber of the Committee on Armed Services of the Senate 
and the chairman and ranking minority member of 
the Committee on Armed Services of the House of 
Representatives. 
(B) Members of the Commission shall be ap-
pointed from among private United States citizens 
with knowledge and expertise in the political, mili-
tary, operational, and technical aspects of nuclear 
strategy. 
(3) CHAIRMAN OF THE COMMISSION.—The Sec-
retary of Defense shall designate one of the members 
of the Commission to serve as chairman of the Com-
mission. 
(4) PERIOD
OF
APPOINTMENT; VACANCIES.—
Members shall be appointed for the life of the Com-
mission. Any vacancy in the Commission shall be 
filled in the same manner as the original appoint-
ment. 
(5) SECURITY CLEARANCES.—All members of the 
Commission shall hold appropriate security clear-
ances. 
(b) DUTIES OF COMMISSION.—
(1) REVIEW OF NUCLEAR STRATEGY.—The Com-
mission shall consider all matters of policy, force 
structure, nuclear stockpile stewardship, estimates of
328
threats and force requirements, and any other issue 
the Commission may consider necessary in order to 
assess and make recommendations about current 
United States nuclear strategy as envisioned in the 
National Security Strategy of the United States and 
the Nuclear Posture Review, as well as possible alter-
native future strategies. 
(2) ASSESSMENT OF RANGE OF NUCLEAR STRAT-
EGIES.—The Commission shall assess possible future 
nuclear strategies for the United States that could be 
pursued over the next 20 years. 
(3) RELATIONS WITH RUSSIA.—The Commission 
shall give special attention to assessing how the 
United States goal of strengthening partnership with 
Russia may be advanced or adversely affected by each 
of the possible nuclear strategies considered. The Com-
mission shall also assess how relations with China, 
and the overall global security environment, may be 
affected by each of those possible nuclear strategies. 
(4) OTHER
MATTERS
TO
BE
INCLUDED.—For 
each of the possible nuclear strategies considered, the 
Commission shall include in its report under sub-
section (c)(1), at a minimum, the following:
329
(A) A discussion of the policy defining the 
deterrence and military-political objectives of the 
United States against potential adversaries. 
(B) A discussion of the military require-
ments for United States forces, the force structure 
and capabilities necessary to meet those require-
ments, and how they relate to the achievement of 
the objectives identified under subparagraph (A). 
(C) Appropriate quantitative and quali-
tative analysis, including force-on-force exchange 
modeling, to calculate the effectiveness of the 
strategy under various scenario conditions, in-
cluding scenarios of strategic and tactical sur-
prise. 
(D) An assessment of the role of missile de-
fenses in the strategy, the dependence of the 
strategy on missile defense effectiveness, and the 
effect of missile defenses on the threat environ-
ment. 
(E) An assessment of the implications of the 
proliferation of missiles and weapons of mass de-
struction, the proliferation of underground facili-
ties and mobile launch platforms, and China’s 
modernization of strategic forces.
330
(F) An assessment of the implications of 
asymmetries between the United States and Rus-
sia, including doctrine, nonstrategic nuclear 
weapons, and active and passive defenses. 
(G) An assessment of strategies or options 
for dealing with nuclear capable nations that 
may provide nuclear weapons to terrorist or 
transnational groups. 
(H) An assessment of the contribution of 
non-proliferation strategies and programs to the 
overall security of the United States and how 
those strategies and programs may affect the 
overall requirements of future nuclear strategy. 
(I) An assessment of the effect of the strat-
egy on the nuclear programs of emerging nuclear 
weapons states, including North Korea, Iran, 
Pakistan, and India. 
(5) RECOMMENDATIONS.—The Commission shall 
include in its report recommendations for any con-
tinuities or changes in nuclear strategy it believes 
should be taken to enhance the national security of the 
United States. 
(6) COOPERATION
FROM
GOVERNMENT
OFFI-
CIALS.—(A) In carrying out its duties, the Commis-
sion shall receive the full and timely cooperation of
331
the Secretary of Defense, the Secretary of Energy, and 
any other United States Government official in pro-
viding the Commission with analyses, briefings, and 
other information necessary for the fulfillment of its 
responsibilities. 
(B) The Secretary of Energy and the Secretary 
of Defense shall each designate at least one officer or 
employee of the Department of Energy and the De-
partment of Defense, respectively, to serve as a liaison 
officer between the department and the Commission. 
The Director of Central Intelligence may designate at 
least one officer or employee of the Central Intel-
ligence Agency to serve as a liaison officer between 
that agency and the Commission. 
(c) REPORTS.—
(1) COMMISSION
REPORT.—The Commission 
shall submit to the Secretary of Defense and to the 
Committees on Armed Services of the Senate and 
House of Representatives a report on the Commis-
sion’s findings and conclusions not later than 18 
months after the date of its first meeting. 
(2) SECRETARY
OF
DEFENSE
RESPONSE.—Not 
later than one year after the date on which the Com-
mission submits its report under paragraph (1), the
332
Secretary of Defense shall submit to Congress a re-
port—
(A) commenting on the Commission’s find-
ings and conclusions; and 
(B) explaining what actions, if any, the 
Secretary intends to take to implement the rec-
ommendations of the Commission and, with re-
spect to each such recommendation, the Sec-
retary’s reasons for implementing, or not imple-
menting, the recommendation. 
(d) HEARINGS AND PROCEDURES.—
(1) HEARINGS.—The Commission may, for the 
purpose of carrying out the purposes of this section, 
hold hearings and take testimony. 
(2) PROCEDURES.—The federally funded re-
search and development center referred to in sub-
section (a)(1) shall be responsible for establishing ap-
propriate procedures for the Commission. 
(3) DETAIL
OF
GOVERNMENT
EMPLOYEES.—
Upon request of the chairman of the Commission, the 
head of any Federal department or agency may de-
tail, on a nonreimbursable basis, any personnel of 
that department or agency to the Commission to as-
sist it in carrying out its duties.
333
(e) FUNDING.—Funds for activities of the Commission 
shall be provided from amounts appropriated for the De-
partment of Defense. 
(f) TERMINATION OF COMMISSION.—The Commission 
shall terminate 60 days after the date of the submission of 
its report under subsection (c)(1). 
(g) IMPLEMENTATION.—
(1) FFRDC CONTRACT.—The Secretary of De-
fense shall enter into the contract required under sub-
section (a)(1) not later than 60 days after the date of 
the enactment of this Act. 
(2) FIRST MEETING.—The Commission shall con-
vene its first meeting not later than 60 days after the 
date as of which all members of the Commission have 
been appointed.
SEC. 1054. EXTENSION OF COUNTERPROLIFERATION PRO-
GRAM REVIEW COMMITTEE. 
Section 1605(f) of the National Defense Authorization 
Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is amended 
by striking ‘‘September 30, 2004’’ and inserting ‘‘September 
30, 2008’’.
334
TITLE XI—DEPARTMENT OF 
DEFENSE CIVILIAN PERSONNEL 
Subtitle A—Department of Defense 
Civilian Personnel Generally 
SEC. 1101. MODIFICATION OF THE OVERTIME PAY CAP. 
Section 5542(a)(2) of title 5, United States Code, is 
amended—
(1) by inserting ‘‘the greater of’’ before ‘‘one and 
one-half’’; and 
(2) by inserting ‘‘or the hourly rate of basic pay 
of the employee’’ after ‘‘law)’’ the second place it ap-
pears. 
SEC. 1102. MILITARY LEAVE FOR MOBILIZED FEDERAL CI-
VILIAN EMPLOYEES. 
(a) IN GENERAL.—Subsection (b) of section 6323 of 
title 5, United States Code, is amended—
(1) in paragraph (2)—
(A) by redesignating subparagraphs (A) 
and (B) as clauses (i) and (ii), respectively, and 
at the end of clause (ii), as so redesignated, by 
inserting ‘‘or’’; and 
(B) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 
(2) by inserting the following before the text be-
ginning with ‘‘is entitled’’:
335
‘‘(B) performs full-time military service as a re-
sult of a call or order to active duty in support of a 
contingency 
operation 
as 
defined 
in 
section 
101(a)(13) of title 10;’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to military service performed on or 
after the date of the enactment of this Act.
SEC. 1103. COMMON OCCUPATIONAL AND HEALTH STAND-
ARDS FOR DIFFERENTIAL PAYMENTS AS A 
CONSEQUENCE OF EXPOSURE TO ASBESTOS. 
(a) PREVAILING RATE SYSTEMS.—Section 5343(c)(4) 
of title 5, United States Code, is amended by inserting be-
fore the semicolon at the end the following: ‘‘, and for any 
hardship or hazard related to asbestos, such differentials 
shall be determined by applying occupational safety and 
health standards consistent with the permissible exposure 
limit promulgated by the Secretary of Labor under the Oc-
cupational Safety and Health Act of 1970’’. 
(b) GENERAL
SCHEDULE
PAY
RATES.—Section 
5545(d) of such title is amended by inserting before the pe-
riod at the end of the first sentence the following: ‘‘, and 
for any hardship or hazard related to asbestos, such dif-
ferentials shall be determined by applying occupational 
safety and health standards consistent with the permissible
336
exposure limit promulgated by the Secretary of Labor under 
the Occupational Safety and Health Act of 1970’’. 
(c) APPLICABILITY.—Subject to any vested constitu-
tional property rights, any administrative or judicial deter-
mination after the date of enactment of this Act concerning 
backpay for a differential established under sections 
5343(c)(4) or 5545(d) of such title shall be based on occupa-
tional safety and health standards described in the amend-
ments made by subsections (a) and (b). 
SEC. 1104. INCREASE IN ANNUAL STUDENT LOAN REPAY-
MENT AUTHORITY. 
Section 5379(b)(2)(A) of title 5, United States Code, 
is amended by striking ‘‘$6,000’’ and inserting ‘‘$10,000’’. 
SEC. 1105. AUTHORIZATION FOR CABINET SECRETARIES, 
SECRETARIES OF MILITARY DEPARTMENTS, 
AND HEADS OF EXECUTIVE AGENCIES TO BE 
PAID ON A BIWEEKLY BASIS. 
(a) AUTHORIZATION.—Section 5504 of title 5, United 
States Code, is amended—
(1) by redesignating subsection (c) as subsection 
(d); 
(2) by striking the last sentence of both sub-
section (a) and subsection (b); and 
(3) by inserting after subsection (b) the fol-
lowing:
337
‘‘(c) For the purposes of this section: 
‘‘(1) The term ‘employee’ means—
‘‘(A) an employee in or under an Executive 
agency; 
‘‘(B) an employee in or under the Office of 
the Architect of the Capitol, the Botanic Garden, 
and the Library of Congress, for whom a basic 
administrative workweek is established under 
section 6101(a)(5) of this title; and 
‘‘(C) an individual employed by the govern-
ment of the District of Columbia. 
‘‘(2) The term ‘employee’ does not include—
‘‘(A) an employee on the Isthmus of Pan-
ama in the service of the Panama Canal Com-
mission; or 
‘‘(B) an employee or individual excluded 
from the definition of employee in section 
5541(2) of this title other than an employee or 
individual excluded by clauses (ii), (iii), and 
(xiv) through (xvii) of such section. 
‘‘(3) Notwithstanding paragraph (2), an indi-
vidual who otherwise would be excluded from the defi-
nition of employee shall be deemed to be an employee 
for purposes of this section if the individual’s employ-
ing agency so elects, under guidelines in regulations
338
promulgated by the Office of Personnel Management 
under subsection (d)(2).’’. 
(b) GUIDELINES.—Subsection (d) of section 5504 of 
such title, as redesignated by subsection (a), is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) The Office of Personnel Management shall provide 
guidelines by regulation for exemptions to be made by the 
heads of agencies under subsection (c)(3). Such guidelines 
shall provide for such exemptions only under exceptional 
circumstances.’’. 
SEC. 1106. SENIOR EXECUTIVE SERVICE AND PERFORM-
ANCE. 
(a) SENIOR EXECUTIVE PAY.—Chapter 53 of title 5, 
United States Code, is amended—
(1) in section 5304—
(A) in subsection (g)(2)—
(i) in subparagraph (A) by striking 
‘‘subparagraphs (A)–(E)’’ and inserting 
‘‘subparagraphs (A)–(D)’’; and 
(ii) in subparagraph (B) by striking 
‘‘subsection (h)(1)(F)’’ and inserting ‘‘sub-
section (h)(1)(D)’’; 
(B) in subsection (h)(1)—
339
(i) by striking subparagraphs (B) and 
(C); 
(ii) by redesignating subparagraphs 
(D), (E), and (F) as subparagraphs (B), 
(C), and (D), respectively; 
(iii) in clause (ii) by striking ‘‘or’’ at 
the end; 
(iv) in clause (iii) by striking the pe-
riod and inserting a semicolon; and 
(v) by adding at the end the following 
new clauses: 
‘‘(iv) a Senior Executive Service position under 
section 3132; 
‘‘(v) a position in the Federal Bureau of Inves-
tigation and Drug Enforcement Administration Sen-
ior Executive Service under section 3151; or 
‘‘(vi) a position in a system equivalent to the 
system in clause (iv), as determined by the Presi-
dent’s Pay Agent designated under subsection (d).’’; 
and 
(C) in subsection (h)(2)(B)—
(i) in clause (i)—
(I) by striking ‘‘subparagraphs 
(A) through (E)’’ and inserting ‘‘sub-
paragraphs (A) through (C)’’; and
340
(II) by striking ‘‘clause (i) or 
(ii)’’ and inserting ‘‘clause (i), (ii), 
(iii), (iv), (v), or (vii)’’; and 
(ii) in clause (ii)—
(I) 
by 
striking 
‘‘paragraph 
(1)(F)’’ 
and 
inserting 
‘‘paragraph 
(1)(D)’’; and 
(II) by striking ‘‘clause (i) or 
(ii)’’ and inserting ‘‘clause (i), (ii), 
(iii), (iv), (v), or (vi)’’; 
(2) by amending section 5382 to read as follows: 
‘‘§ 5382. Establishment of rates of pay for the Senior 
Executive Service 
‘‘(a) Subject to regulations prescribed by the Office of 
Personnel Management, there shall be established a range 
of rates of basic pay for the Senior Executive Service, and 
each senior executive shall be paid at one of the rates within 
the range, based on individual performance, contribution 
to the agency’s performance, or both, as determined under 
a rigorous performance management system. The lowest 
rate of the range shall not be less than the minimum rate 
of basic pay payable under section 5376, and the highest 
rate, for any position under this system or an equivalent 
system as determined by the President’s Pay Agent des-
ignated under section 5304(d), shall not exceed the rate for