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ances when travel is necessary in the performance of a duty
of the Panel, except that no such aircraft, ship, vehicle, or
other conveyance may be scheduled primarily for the trans-
portation of any such member or employee when the cost
of commercial transportation is less expensive.
‘‘(g) ADMINISTRATIVE PROVISIONS.—(1) The Panel
may use the United States mails and obtain printing and
binding services in the same manner and under the same
conditions as other departments and agencies of the Federal
Government.
‘‘(2) The Secretary shall furnish the Panel any admin-
istrative and support services requested by the Panel.
‘‘(3) The Panel may accept, use, and dispose of gifts
or donations of services or property.
‘‘(h) PAYMENT OF PANEL EXPENSES.—The compensa-
tion, travel expenses, and per diem allowances of members
and employees of the Panel shall be paid out of funds avail-
able to the Department of Defense for the payment of com-
pensation, travel allowances, and per diem allowances, re-
spectively, of civilian employees of the Department. The
other expenses of the Panel shall be paid out of funds avail-
able to the Department for the payment of similar expenses
incurred by the Department.
‘‘(i) TERMINATION.—The Panel shall terminate at the
end of the year following the year in which the Panel sub-
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mits its final report under subsection (d)(1)(B). For the pe-
riod that begins 90 days after the date of submittal of the
report, the activities and staff of the panel shall be reduced
to a level that the Secretary of Defense considers sufficient
to continue the availability of the panel for consultation
with the Secretary of Defense and with the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives.’’.
(c) CLERICAL AMENDMENTS.—(1) The table of sections
at the beginning of chapter 2 of title 10, United States Code,
is amended by inserting after the item relating to section
116 the following:
‘‘117. Quadrennial defense review.’’.
(2) The table of sections at the beginning of chapter
7 of such title is amended by adding at the end the follow-
ing:
‘‘181. National Defense Panel.’’.
(d) CONTINUATION
OF 1997 NATIONAL DEFENSE
PANEL.—Section 924(j) of the Military Force Structure Re-
view Act of 1996 (subtitle B of title IX of Public Law 104–
201; 110 Stat. 2626; 10 U.S.C. 111 note) is amended to
read as follows:
‘‘(j) TERMINATION.—The Panel shall continue until
the first National Defense Panel is established under section
181(a) of title 10, United States Code, and shall then termi-
nate. The activities and staff of the panel shall be reduced
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to a level that the Secretary of Defense considers sufficient
to continue the availability of the panel for consultation
with the Secretary of Defense and with the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives.’’.
SEC. 906. MANAGEMENT REFORM FOR RESEARCH, DEVEL-
OPMENT, TEST, AND EVALUATION.
(a) REQUIREMENTS FOR ANALYSIS AND PLAN.—(1)
The Secretary of Defense, acting through the Under Sec-
retary of Defense for Acquisition and Technology, shall ana-
lyze the structures and processes of the Department of De-
fense for management of its laboratories and test and eval-
uation centers and, taking into consideration the analysis,
develop a plan for improving the management of the labora-
tories and centers. The plan shall include the reorganiza-
tions and reforms that the Secretary considers appropriate.
(2) The analysis shall include the following:
(A) Opportunities to achieve efficiency and re-
duce duplication of efforts by consolidating respon-
sibilities for research, development, test, and evalua-
tion, by area or function, in a military department
as a lead agency or executive agent.
(B) Reforms of the management processes of De-
partment of Defense laboratories and test and evalua-
tion centers that would reduce costs and increase effi-
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ciency in the conduct of research, development, test,
and evaluation.
(C) Opportunities for Department of Defense lab-
oratories and test and evaluation centers to enter into
partnership arrangements with laboratories in indus-
try, academia, and other Federal agencies that dem-
onstrate leadership, initiative, and innovation in re-
search, development, test, and evaluation.
(D) The benefits of consolidating test ranges and
test facilities under one management structure.
(E) Personnel demonstration projects and pilot
projects that are being carried out to address the chal-
lenges for and constraints on recruitment and reten-
tion of scientists and engineers.
(F) The extent to which there is disseminated
within the Department of Defense laboratories and
test and evaluation centers information regarding ini-
tiatives that have successfully improved efficiency
through reform of management processes and other
means.
(G) Any cost savings that can be derived directly
from reorganization of management structures.
(H) Options for reinvesting any such cost sav-
ings in the Department of Defense laboratories and
test and evaluation centers.
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(3) The Secretary shall submit the plan required under
paragraph (1) to the congressional defense committees not
later than 180 days after the date of the enactment of this
Act.
(b) COST-BASED MANAGEMENT INFORMATION SYS-
TEM.—(1) The Secretary of Defense shall develop a plan,
including a schedule, for establishing a cost-based manage-
ment information system for Department of Defense labora-
tories and test and evaluation centers. The system shall pro-
vide for accurately identifying and comparing the costs of
operating each laboratory and each center.
(2) In preparing the plan, the Secretary shall assess
the feasibility and desirability of establishing a common
methodology for assessing costs. The Secretary shall consider
the use of a revolving fund as one potential methodology.
(3) The Secretary shall submit the plan required under
paragraph (1) to the congressional defense committees not
later than 90 days after the date of the enactment of this
Act.
SEC. 907. RESTRUCTURING OF ADMINISTRATION OF FISH-
ER HOUSES.
(a) ADMINISTRATION AS NONAPPROPRIATED FUND IN-
STRUMENTALITY.—(1) Chapter 147 of title 10, United
States Code, is amended by adding at the end the following:
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‘‘§ 2490b. Fisher Houses: administration as non-
appropriated fund instrumentality
‘‘(a) FISHER HOUSES AND SUITES.—(1) For the pur-
poses of this section, a Fisher House is a housing facility
that—
‘‘(A) is located in proximity to a health care fa-
cility of the Army, the Air Force, or the Navy;
‘‘(B) is available for residential use on a tem-
porary basis by patients of that health care facility,
members of the families of such patients, and others
providing the equivalent of familial support for such
patients; and
‘‘(C) has been constructed and donated by—
‘‘(i) the Zachary and Elizabeth M. Fisher
Armed Services Foundation; or
‘‘(ii) another source, if the Secretary des-
ignates the housing facility as a Fisher House.
‘‘(2) For the purposes of this section, a Fisher Suite
is one or more rooms that meet the requirements of subpara-
graph (A) and (B) of paragraph (1), are constructed, al-
tered, or repaired and donated by a source described in sub-
paragraph (C) of that paragraph, and are designated by
the Secretary concerned as a Fisher Suite.
‘‘(b) NONAPPROPRIATED FUND INSTRUMENTALITY.—
The Secretary of a military department shall administer
all Fisher Houses and Fisher Suites associated with health
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care facilities of that military department as a non-
appropriated fund instrumentality of the United States.
‘‘(c) GOVERNANCE.—The Secretary shall establish a
system for the governance of the nonappropriated fund in-
strumentality.
‘‘(d) CENTRAL FUND.—The Secretary shall establish a
single fund as the source of funding for the operation, main-
tenance, and improvement of all Fisher Houses and Fisher
Suites of the nonappropriated fund instrumentality.
‘‘(e) ACCEPTANCE OF CONTRIBUTIONS AND FEES.—
The Secretary of a military department may accept money,
property, and services donated for the support of a Fisher
House or Fisher Suite, and may impose fees relating to the
use of the Fisher Houses and Fisher Suites. All monetary
donations, and the proceeds of the disposal of any other do-
nated property, accepted by the Secretary under this sub-
section shall be credited to the fund established under sub-
section (d) for the Fisher Houses and Fisher Suites of that
military department and shall be available for all Fisher
Houses and Fisher Suites of that military department.
‘‘(f) ANNUAL REPORT.—Not later than January 15 of
each year, the Secretary of each military department shall
submit a report on Fisher House operations to the Commit-
tee on Armed Services of the Senate and the Committee on