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‘‘(2) Each report shall set forth—
‘‘(A) the number of members who were permitted
to elect to become entitled to basic educational assist-
ance under this section during the preceding year;
‘‘(B) the number of members so permitted who
elected to become entitled to basic educational assist-
ance during that year; and
‘‘(C) if no members were so permitted during
that year, a justification for such Secretary’s decision
not to permit any members to elect to become so enti-
tled during that year.’’.
(2) The table of sections at the beginning of chapter
30 of that title, as amended by section 682(a) of this Act,
is further amended by inserting after the item relating to
section 3018C the following new item:
‘‘3018D. Opportunity to enroll: certain VEAP participants; active duty personnel
not previously enrolled.’’.
(b) CONFORMING AMENDMENT.—Section 3015(f) of
that title is amended by striking ‘‘or 3018C’’ and inserting
‘‘3018C, or 3018D’’.
(c) TREATMENT UNDER DEPARTMENT OF DEFENSE
EDUCATION BENEFITS FUND.—Section 2006(b)(2) of title
10, United States Code, as amended by section 682(b) of
this Act, is further amended by adding at the end the fol-
lowing:
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‘‘(E) The present value of the future benefits
payable from the Fund as a result of elections
under section 3018D of title 38 of entitlement to
basic educational assistance under chapter 30 of
title 38.’’.
(d) PLANS FOR IMPLEMENTATION.—(1) Not later than
June 30, 2001, the Secretary of Defense shall submit to Con-
gress a report describing the manner in which the Secre-
taries of the military departments propose to exercise the
authority granted by section 3018A of title 38, United
States Code, as added by subsection (a).
(2) Not later than June 30, 2001, the Secretary of
Transportation shall submit to Congress a report describing
the manner in which that Secretary proposes to exercise the
authority granted by such section 3018A with respect to
members of the Coast Guard.
SEC. 684. MODIFICATION OF AUTHORITY TO PAY TUITION
FOR OFF-DUTY TRAINING AND EDUCATION.
(a) AUTHORITY TO PAY ALL CHARGES.—Section 2007
of title 10, United States Code, is amended—
(1) by striking subsections (a) and (b) and in-
serting the following new subsections:
‘‘(a) Subject to subsection (b), the Secretary of a mili-
tary department may pay all or a portion of the charges
of an educational institution for the tuition or expenses of
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a member of the armed forces enrolled in such educational
institution for education or training during the member’s
off-duty periods.
‘‘(b) In the case of a commissioned officer on active
duty, the Secretary of the military department concerned
may not pay charges under subsection (a) unless the officer
agrees to remain on active duty for a period of at least
two years after the completion of the training or education
for which the charges are paid.’’; and
(2) in subsection (d)—
(A) by striking ‘‘(within the limits set forth
in subsection (a))’’ in the matter preceding para-
graph (1); and
(B) in paragraph (3), by striking ‘‘sub-
section (a)(3)’’ and inserting ‘‘subsection (b)’’.
(b) USE OF ENTITLEMENT TO ASSISTANCE UNDER
MONTGOMERY GI BILL FOR PAYMENT OF CHARGES.—(1)
That section is further amended by adding at the end the
following new subsection:
‘‘(e)(1) A member of the armed forces who is entitled
to basic educational assistance under chapter 30 of title 38
may use such entitlement for purposes of paying any por-
tion of the charges described in subsection (a) or (c) that
are not paid for by the Secretary of the military department
concerned under such subsection.
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‘‘(2) The use of entitlement under paragraph (1) shall
be governed by the provisions of section 3014(b) of title 38.’’.
(2) Section 3014 of title 38, United States Code, is
amended—
(A) by inserting ‘‘(a)’’ before ‘‘The Secretary’’;
and
(B) by adding at the end the following new sub-
section:
‘‘(b)(1) In the case of an individual entitled to basic
educational assistance who is pursuing education or train-
ing described in subsection (a) or (c) of section 2007 of title
10, the Secretary shall, at the election of the individual,
pay the individual a basic educational assistance allowance
to meet all or a portion of the charges of the educational
institution for the education or training that are not paid
by the Secretary of the military department concerned
under such subsection.
‘‘(2)(A) The amount of the basic educational assistance
allowance payable to an individual under this subsection
for a month shall be the amount of the basic educational
assistance allowance to which the individual would be enti-
tled for the month under section 3015 of this title (without
regard to subsection (g) of that section) were payment made
under that section instead of under this subsection.
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‘‘(B) The maximum number of months for which an
individual may be paid a basic educational assistance al-
lowance under paragraph (1) is 36.’’.
(3) Section 3015 of title 38, United States Code, is
amended—
(A) by striking ‘‘subsection (g)’’ each place it ap-
pears in subsections (a) and (b);
(B) by redesignating subsection (g) as subsection
(h); and
(C) by inserting after subsection (f) the following
new subsection (g):
‘‘(g) In the case of an individual who has been paid
a basic educational assistance allowance under section
3014(b) of this title, the rate of the basic educational assist-
ance allowance applicable to the individual under this sec-
tion shall be the rate otherwise applicable to the individual
under this section reduced by an amount equal to—
‘‘(1) the aggregate amount of such allowances
paid the individual under such section 3014(b); di-
vided by
‘‘(2) 36.’’.
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SEC. 685. MODIFICATION OF TIME FOR USE BY CERTAIN
MEMBERS OF SELECTED RESERVE OF ENTI-
TLEMENT TO CERTAIN EDUCATIONAL ASSIST-
ANCE.
Section 16133(b) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(5)(A) In the case of a person who continues to serve
as member of the Selected Reserve as of the end of the 10-
year period applicable to the person under subsection (a),
as extended, if at all, under paragraph (4), the period dur-
ing which the person may use the person’s entitlement shall
expire at the end of the 5-year period beginning on the date
the person is separated from the Selected Reserve.
‘‘(B) The provisions of paragraph (4) shall apply with
respect to any period of active duty of a person referred
to in subparagraph (A) during the 5-year period referred
to in that subparagraph.’’.
Subtitle G—Additional Benefits For
Reserves and Their Dependents
SEC. 691. SENSE OF CONGRESS.
It is the sense of Congress that it is in the national
interest for the President to provide the funds for the reserve
components of the Armed Forces (including the National
Guard and Reserves) that are sufficient to ensure that the
reserve components meet the requirements specified for the
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reserve components in the National Military Strategy, in-
cluding training requirements.
SEC. 692. TRAVEL BY RESERVES ON MILITARY AIRCRAFT.
(a) SPACE-REQUIRED TRAVEL FOR TRAVEL TO DUTY
STATIONS INCONUS AND OCONUS.—(1) Subsection (a)
of section 18505 of title 10, United States Code, is amended
to read as follows:
‘‘(a) A member of a reserve component traveling to a
place of annual training duty or inactive-duty training
(including a place other than the member’s unit training
assembly if the member is performing annual training duty
or inactive-duty training in another location) may travel
in a space-required status on aircraft of the armed forces
between the member’s home and the place of such duty or
training.’’.
(2) The heading of such section is amended to read
as follows:
‘‘§ 18505. Reserves traveling to annual training duty
or inactive-duty training: authority for
space-required travel’’.
(b) SPACE-AVAILABLE TRAVEL FOR MEMBERS OF SE-
LECTED RESERVE AND DEPENDENTS.—Chapter 1805 of
such title is amended by adding at the end the following
new section:
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‘‘§ 18506. Space-available travel: Selected Reserve
members and dependents
‘‘(a) ELIGIBILITY FOR SPACE-AVAILABLE TRAVEL.—
The Secretary of Defense shall prescribe regulations to allow
persons described in subsection (b) to receive transportation
on aircraft of the Department of Defense on a space-avail-
able basis under the same terms and conditions (including
terms and conditions applicable to travel outside the United
States) as apply to members of the armed forces entitled
to retired pay.
‘‘(b) PERSONS ELIGIBLE.—Subsection (a) applies to
a person who is a member of the Selected Reserve in good
standing (as determined by the Secretary concerned) or who
is a participating member of the Individual Ready Reserve
of the Navy or Coast Guard in good standing (as deter-
mined by the Secretary concerned).
‘‘(c) DEPENDENTS.—A dependent of a person described
in subsection (b) shall be provided transportation under
this section on the same basis as dependents of members
of the armed forces entitled to retired pay.
‘‘(d) LIMITATION ON REQUIRED IDENTIFICATION.—
Neither the ‘Authentication of Reserve Status for Travel
Eligibility’ form (DD Form 1853), nor or any other form,
other than the presentation of military identification and
duty orders upon request, or other methods of identification
required of active duty personnel, shall be required of re-
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serve component personnel using space-available transpor-
tation within or outside the continental United States
under this section.’’.
(c) CLERICAL AMENDMENTS.—The table of sections at
the beginning of such chapter is amended by striking the
item relating to section 18505 and inserting the following
new items:
‘‘18505. Reserves traveling to annual training duty or inactive-duty training: au-
thority for space-required travel.
‘‘18506. Space-available travel: Selected Reserve members and dependents.’’.
(d) 
IMPLEMENTING
REGULATIONS.—Regulations
under section 18506 of title 10, United States Code, as
added by subsection (b), shall be prescribed not later than
180 days after the date of the enactment of this Act.
SEC. 693. BILLETING SERVICES FOR RESERVE MEMBERS
TRAVELING FOR INACTIVE DUTY TRAINING.
(a) IN GENERAL.—(1) Chapter 1217 of title 10, United
States Code, is amended by inserting after section 12603
the following new section:
‘‘§ 12604. Billeting in Department of Defense facilities:
Reserves attending inactive-duty training
‘‘(a) AUTHORITY FOR BILLETING ON SAME BASIS AS
ACTIVE DUTY MEMBERS TRAVELING UNDER ORDERS.—
The Secretary of Defense shall prescribe regulations author-
izing a Reserve traveling to inactive-duty training at a lo-
cation more than 50 miles from that Reserve’s residence to
be eligible for billeting in Department of Defense facilities
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on the same basis and to the same extent as a member of
the armed forces on active duty who is traveling under or-
ders away from the member’s permanent duty station.
‘‘(b) PROOF OF REASON FOR TRAVEL.—The Secretary
shall include in the regulations the means for confirming
a Reserve’s eligibility for billeting under subsection (a).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section
12603 the following new item:
‘‘12604. Billeting in Department of Defense facilities: Reserves attending inactive-
duty training.
(b) EFFECTIVE DATE.—Section 12604 of title 10,
United States Code, as added by subsection (a), shall apply
with respect to periods of inactive-duty training beginning
more than 180 days after the date of the enactment of this
Act.
SEC. 694. INCREASE IN MAXIMUM NUMBER OF RESERVE RE-
TIREMENT POINTS THAT MAY BE CREDITED
IN ANY YEAR.
Section 12733(3) of title 10, United States Code, is
amended by striking ‘‘but not more than’’ and all that fol-
lows and inserting ‘‘but not more than—
‘‘(A) 60 days in any one year of service be-
fore the year of service that includes September
23, 1996;
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‘‘(B) 75 days in the year of service that in-
cludes September 23, 1996, and in any subse-
quent year of service before the year of service
that includes the date of the enactment of the Na-
tional Defense Authorization Act for Fiscal Year
2001; and
‘‘(C) 90 days in the year of service that in-
cludes the date of the enactment of the National
Defense Authorization Act for Fiscal Year 2001
and in any subsequent year of service.’’.
SEC. 695. AUTHORITY FOR PROVISION OF LEGAL SERVICES
TO RESERVE COMPONENT MEMBERS FOL-
LOWING RELEASE FROM ACTIVE DUTY.
(a) LEGAL SERVICES.—Section 1044(a) of title 10,
United States Code, is amended—
(1) by redesignating paragraph (4) as para-
graph (5); and
(2) by inserting after paragraph (3) the fol-
lowing new paragraph (4):
‘‘(4) Members of reserve components of the armed
forces not covered by paragraph (1) or (2) following
release from active duty under a call or order to ac-
tive duty for more than 30 days issued under a mobi-
lization authority (as determined by the Secretary of
Defense), but only during the period that begins on
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the date of the release and is equal to at least twice
the length of the period served on active duty under
such call or order to active duty.’’.
(b) DEPENDENTS.—Paragraph (5) of such section, as
redesignated by subsection (a)(1), is amended by striking
‘‘and (3)’’ and inserting ‘‘(3), and (4)’’.
(c) IMPLEMENTING REGULATIONS.—Regulations to
implement the amendments made by this section shall be
prescribed not later than 180 days after the date of the en-
actment of this Act.
TITLE VII—HEALTH CARE
Subtitle A—Senior Health Care
SEC. 701. CONDITIONS FOR ELIGIBILITY FOR CHAMPUS
UPON THE ATTAINMENT OF 65 YEARS OF AGE.
(a) ELIGIBILITY OF MEDICARE ELIGIBLE PERSONS.—
Section 1086(d) of title 10, United States Code, is
amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) The prohibition contained in paragraph (1) shall
not apply to a person referred to in subsection (c) who—
‘‘(A) is enrolled in the supplementary medical
insurance program under part B of such title (42
U.S.C. 1395j et seq.); and
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‘‘(B) in the case of a person under 65 years of
age, is entitled to hospital insurance benefits under
part A of title XVIII of the Social Security Act pur-
suant to subparagraph (A) or (C) of section 226(b)(2)
of such Act (42 U.S.C. 426(b)(2)) or section 226A(a)
of such Act (42 U.S.C. 426–1(a)).’’; and
(2) in paragraph (4), by striking ‘‘paragraph (1)
who satisfy only the criteria specified in subpara-
graphs (A) and (B) of paragraph (2), but not sub-
paragraph (C) of such paragraph,’’ and inserting
‘‘subparagraph (B) of paragraph (2) who do not sat-
isfy the condition specified in subparagraph (A) of
such paragraph’’.
(b) EXTENSION OF TRICARE SENIOR PRIME DEM-
ONSTRATION PROGRAM.—Paragraph (4) of section 1896(b)
of the Social Security Act (42 U.S.C. 1395ggg(b)) is amend-
ed by striking ‘‘3-year period beginning on January 1,
1998’’ and inserting ‘‘period beginning on January 1,
1998, and ending on December 31, 2001’’.
(c) EFFECTIVE DATES.—(1) The amendments made by
subsection (a) shall take effect on October 1, 2001.
(2) The amendment made by subsection (b) shall take
effect on the date of the enactment of this Act.
(d) ADJUSTMENT FOR BUDGET-RELATED RESTRIC-
TIONS.—Effective on October 1, 2003, section 1086(d)(2) of
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title 10, United States Code, as amended by subsection (a),
is further amended by striking ‘‘in the case of a person
under 65 years of age,’’ and inserting ‘‘is under 65 years
of age and’’.
Subtitle B—TRICARE Program
SEC. 711. ADDITIONAL BENEFICIARIES UNDER TRICARE
PRIME REMOTE PROGRAM IN CONUS.
(a) COVERAGE OF OTHER UNIFORMED SERVICES.—
(1) Section 1074(c) of title 10, United States Code, is
amended—
(A) by striking ‘‘armed forces’’ each place it ap-
pears, except in paragraph (3)(A), and inserting
‘‘uniformed services’’;
(B) in paragraph (1), by inserting after ‘‘mili-
tary department’’ in the first sentence the following:
‘‘, the Department of Transportation (with respect to
the Coast Guard when it is not operating as a service
in the Navy), or the Department of Health and
Human Services (with respect to the National Oce-
anic and Atmospheric Administration and the Public
Health Service)’’;
(C) in paragraph (2), by adding at the end the
following:
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‘‘(C) The Secretary of Defense shall consult with
the other administering Secretaries in the adminis-
tration of this paragraph.’’; and
(D) in paragraph (3)(A), by striking ‘‘The Sec-
retary of Defense may not require a member of the
armed forces described in subparagraph (B)’’ and in-
serting ‘‘A member of the uniformed services described
in subparagraph (B) may not be required’’.
(2)(A) Subsections (b), (c), and (d)(3) of section 731
of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 1811; 10 U.S.C. 1074
note) are amended by striking ‘‘Armed Forces’’ and insert-
ing ‘‘uniformed services’’.
(B) Subsection (b) of such section is further amended
by adding at the end the following:
‘‘(4) The Secretary of Defense shall consult with the
other administering Secretaries in the administration of
this subsection.’’.
(C) Subsection (f) of such section is amended by add-
ing at the end the following:
‘‘(3) The terms ‘uniformed services’ and ‘admin-
istering Secretaries’ have the meanings given those
terms in section 1072 of title 10, United States
Code.’’.
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(3) Section 706(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113
Stat. 684) is amended by striking ‘‘Armed Forces’’ and in-
serting ‘‘uniformed services (as defined in section 1072(1)
of title 10, United States Code)’’.
(b) COVERAGE OF IMMEDIATE FAMILY.—(1) Section
1079 of title 10, United States Code, is amended by adding
at the end the following:
‘‘(p)(1) Subject to such exceptions as the Secretary of
Defense considers necessary, coverage for medical care under
this section for the dependents referred to in subsection (a)
of a member of the uniformed services referred to in section
1074(c)(3) of this title who are residing with the member,
and standards with respect to timely access to such care,
shall be comparable to coverage for medical care and stand-
ards for timely access to such care under the managed care
option of the TRICARE program known as TRICARE
Prime.
‘‘(2) The Secretary of Defense shall enter into arrange-
ments with contractors under the TRICARE program or
with other appropriate contractors for the timely and effi-
cient processing of claims under this subsection.
‘‘(3) The Secretary of Defense shall consult with the
other administering Secretaries in the administration of
this subsection.’’.
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(2) Section 731(b) of the National Defense Authoriza-
tion Act for Fiscal Year 1998 (Public Law 105–85; 111
Stat. 1811; 10 U.S.C. 1074 note) is amended—
(A) in paragraph (1), by adding at the end the
following: ‘‘A dependent of the member, as described
in subparagraph (A), (D), or (I) of section 1072(2) of
title 10, United States Code, who is residing with the
member shall have the same entitlement to care and
to waiver of charges as the member.’’; and
(B) in paragraph (2), by inserting ‘‘or depend-
ent of the member, as the case may be,’’ after ‘‘(2) A
member’’.
(c) EFFECTIVE DATE.—(1) The amendments made by
subsection (a)(2), with respect to members of the uniformed
services, and the amendments made by subsection (b)(2),
with respect to dependents of members, shall take effect on
the date of the enactment of this Act and shall expire with
respect to a member or the dependents of a member, respec-
tively, on the later of the following:
(A) The date that is one year after the date of
the enactment of this Act.
(B) The date on which the amendments sub-
section (a)(1) or (b)(1) apply with respect to the cov-
erage of medical care for and provision of such care
to the member or dependents, respectively.
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(2) Section 731(b)(3) of Public Law 105–85 does not
apply to a member of the Coast Guard, the National Oce-
anic and Atmospheric Administration, or the Commis-
sioned Corps of the Public Health Service, or to a dependent
of a member of a uniformed service.
SEC. 712. ELIMINATION OF COPAYMENTS FOR IMMEDIATE
FAMILY.
(a) NO COPAYMENT FOR IMMEDIATE FAMILY.—Sec-
tion 1097a of title 10, United States Code, is amended—
(1) by redesignating subsection (e) as subsection
(f); and
(2) by inserting after subsection (d) the following
new subsection (e):
‘‘(e) NO COPAYMENT FOR IMMEDIATE FAMILY.—No co-
payment shall be charged a member for care provided under
TRICARE Prime to a dependent of a member of the uni-
formed services described in subparagraph (A), (D), or (I)
of section 1072 of this title.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2000, and shall
apply with respect to care provided on or after that date.
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SEC. 713. IMPROVEMENT IN BUSINESS PRACTICES IN THE
ADMINISTRATION 
OF 
THE 
TRICARE 
PRO-
GRAM.
(a) REQUIREMENT.—Not later than October 1, 2001,
the Secretary of Defense shall take actions that the Sec-
retary considers appropriate to improve the business prac-
tices used in administering the access of eligible persons to
health care services through the TRICARE program under
chapter 55 of title 10, United States Code, including the
practices relating to the following:
(1) The availability and scheduling of appoint-
ments.
(2) The filing, processing, and payment of
claims.
(3) Public relations efforts that are focused on
outreach to eligible persons.
(4) The continuation of enrollments without ex-
piration.
(5) The portability of enrollments nationwide.
(b) CONSULTATION.—The Secretary of Defense shall
consult with the other administering Secretaries in the de-
velopment of the actions to be taken under subsection (a).
(c) REPORT.—Not later than March 15, 2001, the Sec-
retary of Defense shall submit to the Committees on Armed
Services of the Senate and House of Representatives a re-
port on the actions to be taken under subsection (a).
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(d) DEFINITIONS.—In this section the terms ‘‘admin-
istering Secretaries’’ and ‘‘TRICARE program’’ shall have
the meanings given such terms in section 1072 of title 10,
United States Code.
SEC. 714. IMPROVEMENT OF ACCESS TO HEALTH CARE
UNDER THE TRICARE PROGRAM.
(a) WAIVER
OF NONAVAILABILITY STATEMENT
OR
PREAUTHORIZATION.—In the case of a covered beneficiary
under chapter 55 of title 10, United States Code, who is
enrolled in TRICARE Standard, the Secretary of Defense
may not require with regard to authorized health care serv-
ices (other than mental health services) under any new con-
tract for the provision of health care services under such
chapter that the beneficiary—
(1) obtain a nonavailability statement or
preauthorization from a military medical treatment
facility in order to receive the services from a civilian
provider; or
(2) obtain a nonavailability statement for care
in specialized treatment facilities outside the 200-mile
radius of a military medical treatment facility.
(b) NOTICE.—The Secretary may require that the cov-
ered beneficiary inform the primary care manager of the
beneficiary of any health care received from a civilian pro-
vider or in a specialized treatment facility.
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(c) EXCEPTIONS.—Subsection (a) shall not apply if—
(1) the Secretary demonstrates significant cost
avoidance for specific procedures at the affected mili-
tary medical treatment facilities;
(2) the Secretary determines that a specific pro-
cedure must be maintained at the affected military
medical treatment facility to ensure the proficiency
levels of the practitioners at the facility; or
(3) the lack of nonavailability statement data
would significantly interfere with TRICARE contract
administration.
(d) EFFECTIVE DATE.—This section shall take effect
on October 1, 2001.
SEC. 715. ENHANCEMENT OF ACCESS TO TRICARE IN RURAL
STATES.
(a) HIGHER MAXIMUM ALLOWABLE CHARGE.—Sec-
tion 1079(h) of title 10, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘paragraphs
(2) and (3)’’ in the first sentence and inserting
‘‘paragraphs (2), (3), and (4)’’;
(2) by redesignating paragraph (4) as para-
graph (5);
(3) by inserting after paragraph (3) the fol-
lowing new paragraph (4):
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‘‘(4)(A) The amount payable for a charge for a service
provided by an individual health care professional or other
noninstitutional health care provider in a rural State for
which a claim is submitted under a plan contracted for
under subsection (a) shall be equal to 80 percent of the cus-
tomary and reasonable charge for services of that type when
provided by such a professional or other provider, as the
case may be, in that State.
‘‘(B) A customary and reasonable charge shall be deter-
mined for the purposes of subparagraph (A) under regula-
tions prescribed by the Secretary of Defense in consultation
with the other administering Secretaries. In prescribing the
regulations, the Secretary may also consult with the Admin-
istrator of the Health Care Financing Administration of
the Department of Health and Human Services.’’; and
(4) by adding at the end the following:
‘‘(6) In this subsection the term ‘rural State’ means
a State that has, on average, as determined by the Bureau
of the Census in the latest decennial census—
‘‘(A) less than 76 residents per square mile; and
‘‘(B) less than 211 actively practicing physicians
(not counting physicians employed by the United
States) per 100,000 residents.’’.
(b) REPORT.—(1) Not later than 180 days after the
date of the enactment of this Act, the Secretary of Defense
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shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report on the
extent to which physicians are choosing not to participate
in contracts for the furnishing of health care in rural States
under chapter 55 of title 10, United States Code.
(2) The report shall include the following:
(A) The number of physicians in rural States
who are withdrawing from participation, or otherwise
refusing to participate, in the health care contracts.
(B) The reasons for the withdrawals and refus-
als.
(C) The actions that the Secretary of Defense can
take to encourage more physicians to participate in
the health care contracts.
(D) Any recommendations for legislation that
the Secretary considers necessary to encourage more
physicians to participate in the health care contracts.
(3) In this subsection, the term ‘‘rural State’’ has the
meaning given that term in section 1079(h)(6) of title 10,
United States Code (as added by subsection (a)).
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Subtitle C—Joint Initiatives With
Department of Veterans Affairs
SEC. 721. TRACKING PATIENT SAFETY IN MILITARY AND
VETERANS HEALTH CARE SYSTEMS.
(a) CENTRALIZED TRACKING PROCESS.—The Sec-
retary of Defense and the Secretary of Veterans Affairs shall
jointly prescribe a centralized process for the reporting,
compiling, and analysis of errors in the provision of health
care under the Defense Health Program and the Depart-
ment of Veterans Affairs health care system that endanger
patients beyond the normal risks associated with the care
and treatment of the patients.
(b) SAFETY INDICATORS, ET CETERA.—The process
shall include such indicators, standards, and protocols as
the Secretary of Defense and the Secretary of Veterans Af-
fairs consider necessary for the establishment and adminis-
tration of an effective process.
SEC. 
722. 
PHARMACEUTICAL 
IDENTIFICATION 
TECH-
NOLOGY.
(a) BAR CODE IDENTIFICATION TECHNOLOGY.—The
Secretary of Defense and the Secretary of Veterans Affairs
shall jointly develop a system for the use of bar codes for
the identification of pharmaceuticals.
(b) USE IN MAIL ORDER PHARMACEUTICALS PRO-
GRAM.—The Secretary of Defense, in consultation with the
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Secretary of Veterans Affairs, shall experiment with the use
of bar code identification of pharmaceuticals in the admin-
istration of the mail order pharmaceuticals program car-
ried out under section 1110(a) of title 10, United States
Code (as added by section 731).
SEC. 723. MEDICAL INFORMATICS.
(a) ADDITION MATTERS
FOR ANNUAL REPORT
ON
MEDICAL INFORMATICS ADVISORY COMMITTEE.—Section
723(d)(5) of the National Defense Authorization Act for Fis-
cal Year 2000 (Public Law 106–65; 113 Stat. 697; 10
U.S.C. 1071 note) is amended to read as follows:
‘‘(5) The Secretary of Defense shall submit to Congress
an annual report on medical informatics. The report shall
include a discussion of the following matters:
‘‘(A) The activities of the Committee.
‘‘(B) The coordination of development, deploy-
ment, and maintenance of health care informatics
systems within the Federal Government, and between
the Federal Government and the private sector.
‘‘(C) The progress or growth occurring in med-
ical informatics.
‘‘(D) How the TRICARE program and the De-
partment of Veterans Affairs health care system can
use the advancement of knowledge in medical
informatics to raise the standards of health care and
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treatment and the expectations for improving health
care and treatment.’’.
(b) FISCAL
YEAR
2001 FUNDING
FOR
PHARMA-
CEUTICALS-RELATED
MEDICAL
INFORMATICS.—Of the
amount authorized to be appropriated under section
301(22)—
(1) $64,000,000 is available for the commence-
ment of the implementation of a new computerized
medical record, including an automated entry order
system for pharmaceuticals, that makes all relevant
clinical information on a patient under the Defense
Health Program available when and where it is need-
ed; and
(2) $9,000,000 is available for the implementa-
tion of an integrated pharmacy system under the De-
fense Health Program that creates a single profile for
all of the prescription medications a patient takes, re-
gardless of whether the prescriptions for those medica-
tions were filled at military or private pharmacies
serving Department of Defense beneficiaries world-
wide.
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Subtitle D—Other Matters
SEC. 731. PERMANENT AUTHORITY FOR CERTAIN PHARMA-
CEUTICAL BENEFITS.
(a) AUTHORITY.—(1) Chapter 55 of title 10, United
States Code, is amended by adding at the end the following:
‘‘§ 1110. Pharmaceutical benefits
‘‘(a) PHARMACEUTICALS BY MAIL.—The Secretary of
Defense shall carry out a program to provide eligible per-
sons with prescription pharmaceuticals by mail.
‘‘(b) RETAIL PHARMACY NETWORK.—To the maximum
extent practicable, the Secretary of Defense shall include in
each managed health care program under this chapter, a
program to supply prescription pharmaceuticals to eligible
persons through a managed care network of community re-
tail pharmacies in the area covered by the managed health
care program.
‘‘(c) ELIGIBLE PERSONS.—A person is eligible to ob-
tain pharmaceuticals under the program of pharma-
ceuticals by mail under subsection (a) or through a retail
pharmacy network included in a managed health care pro-
gram under subsection (b) as follows:
‘‘(1) A person who is eligible for medical care
under a contract for medical care entered into by the
Secretary of Defense under section 1079 or 1086 of
this title.
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‘‘(2) A person who would be eligible for medical
care under a contract for medical care entered into
under section 1086 of this title except for the oper-
ation of subsection (d)(1) of such section.
‘‘(d) PHARMACEUTICALS OFFERED.—The Secretary of
Defense shall determine the pharmaceuticals that may be
obtained by eligible persons under subsection (a) or (b).
‘‘(e) FEES.—The Secretary of Defense shall prescribe
an appropriate fee, charge, or copayment to be paid by per-
sons for pharmaceuticals obtained under subsection (a) or
(b).
‘‘(f) CONSULTATION REQUIREMENT.—The Secretary of
Defense shall consult with the other administering Secre-
taries in the administration of this section.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘1110. Pharmaceutical benefits.’’.
(b) REPEAL OF SUPERSEDED AUTHORITY.—Section
702 of the National Defense Authorization Act for Fiscal
Year 1993 (Public Law 102–484; 106 Stat. 2431; 10 U.S.C.
1079 note) is repealed.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on January 1,
2001.
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SEC. 732. PROVISION OF DOMICILIARY AND CUSTODIAL
CARE FOR CHAMPUS BENEFICIARIES.
(a) CONTINUATION OF CARE FOR CERTAIN CHAMPUS
BENEFICIARIES.—Section 703(a)(1) of the National De-
fense Authorization Act for Fiscal Year 2000 (Public Law
106–65; 113 Stat. 682; 10 U.S.C. 1077 note) is amended
by inserting before the period at the end the following: ‘‘or
by the prohibition in section 1086(d)(1) of such title’’.
(b) COST LIMITATION FOR INDIVIDUAL CASE MANAGE-
MENT PROGRAM.—(1) Section 1079(a)(17) of title 10,
United States Code, is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(17)’’; and
(B) by adding at the end the following:
‘‘(B) The total amount expended under subpara-
graph (A) for a fiscal year may not exceed
$100,000,000.’’.
(2) Section 703 of the National Defense Authorization
Act for Fiscal Year 2000 is amended by adding at the end
the following:
‘‘(e) COST LIMITATION.—The total amount paid for
services for eligible beneficiaries under subsection (a) for a
fiscal year (together with the costs of administering the au-
thority under that subsection) shall be included in the ex-
penditures limited by section 1079(a)(17)(B) of title 10,
United States Code.’’.
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(c) 
APPLICABILITY
OF
COST
LIMITATION.—The
amendments made by subsection (b) shall apply to fiscal
years after fiscal year 1999.
SEC. 733. MEDICAL AND DENTAL CARE FOR MEDAL OF
HONOR RECIPIENTS AND THEIR DEPEND-
ENTS.
(a) MEDAL RECIPIENTS.—Section 1074 of title 10,
United States Code, is amended by adding at the end the
following:
‘‘(d)(1) A medal of honor recipient is entitled to med-
ical and dental care under this chapter to the same extent
as a person referred to in subsection (b).
‘‘(2) In this subsection, the term ‘medal of honor re-
cipient’ means a person awarded a medal of honor under
section 3741, 6241, or 8741 of this title, or section 491 of
title 14.’’.
(b) DEPENDENTS.—Section 1076 of such title is
amended by adding at the end the following:
‘‘(f)(1) The immediate dependents of a medal of honor
recipient are entitled to medical and dental care under this
chapter to the same extent as a person referred to in sub-
section (b).
‘‘(2) In this subsection:
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‘‘(A) The term ‘medal of honor recipient’ has the
meaning given the term in section 1074(d)(2) of this
title.
‘‘(B) The term ‘immediate dependent’ means a
dependent described in subparagraphs (A), (B), (C),
and (D) of section 1072(2) of this title.’’.
SEC. 734. SCHOOL-REQUIRED PHYSICAL EXAMINATIONS
FOR CERTAIN MINOR DEPENDENTS.
Section 1076 of title 10, United States Code, as amend-
ed by section 733(b), is further amended by adding at the
end the following:
‘‘(g)(1) The administering Secretaries shall furnish an
eligible dependent a physical examination that is required
by a school in connection with the enrollment of the depend-
ent as a student in that school.
‘‘(2) A dependent is eligible for a physical examination
under paragraph (1) if the dependent—
‘‘(A) is entitled to receive medical care under
subsection (a) or is authorized to receive medical care
under subsection (b); and
‘‘(B) is at least 5 years of age and less than 12
years of age.
‘‘(3) Nothing in paragraph (2) may be construed to
prohibit the furnishing of a school-required physical exam-
ination to any dependent who, except for not satisfying the
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age requirement under that paragraph, would otherwise be
eligible for a physical examination required to be furnished
under this subsection.’’.
SEC. 735. TWO-YEAR EXTENSION OF DENTAL AND MEDICAL
BENEFITS FOR SURVIVING DEPENDENTS OF
CERTAIN DECEASED MEMBERS.
(a) DENTAL BENEFITS.—Section 1076a(k)(2) of title
10, United States Code, is amended by striking ‘‘one-year
period’’ and inserting ‘‘three-year period’’.
(b) MEDICAL BENEFITS.—Section 1079(g) of title 10,
United States Code, is amended by striking ‘‘one-year pe-
riod’’ in the second sentence and inserting ‘‘three-year pe-
riod’’.
SEC. 736. EXTENSION OF AUTHORITY FOR CONTRACTS FOR
MEDICAL SERVICES AT LOCATIONS OUTSIDE
MEDICAL TREATMENT FACILITIES.
Section 1091(a)(2) of title 10, United States Code, is
amended by striking ‘‘December 31, 2000’’ and inserting
‘‘September 30, 2002’’.
SEC. 737. TRANSITION OF CHIROPRACTIC HEALTH CARE
DEMONSTRATION PROGRAM TO PERMANENT
STATUS.
(a) TRICARE PRIME BENEFITS.—The Secretary of
Defense shall complete the development and implementation
of a program to provide chiropractic health care services
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and benefits for all TRICARE Prime enrollees as a perma-
nent part of the military health care system for the enrollees
in that plan, as follows:
(1) At the military medical treatment facilities
designated pursuant to section 731(a)(2)(A) of the
National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 10 U.S.C. 1092 note), not
later than 180 days after the date of the enactment
of this Act.
(2) At the other military medical treatment fa-
cilities considered by the Secretary of Defense to be
major military medical treatment facilities, not later
than October 1, 2001.
(b) PRIMARY CARE MANAGEMENT.—The Secretary
shall ensure that the primary care manager model, which
requires referral by a primary care manager, is used for
providing the chiropractic health care services and benefits
under the program referred to in subsection (a).
(c) CONTINUATION OF EXISTING CHIROPRACTIC BENE-
FITS.—Section 731(a)(4) of the National Defense Author-
ization Act for Fiscal Year 1995 is amended—
(1) by striking ‘‘During fiscal year 2000, the’’
and inserting ‘‘The’’; and
(2) by adding at the end the following: ‘‘The re-
quirement under the preceding sentence shall cease to
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apply with respect to a military medical treatment
facility on the date on which the Secretary of Defense
completes the implementation of a program to provide
chiropractic health care services and benefits at that
facility for all TRICARE Prime enrollees as a perma-
nent part of the military health care system for the
enrollees in that plan.’’.
SEC. 738. USE OF INFORMATION TECHNOLOGY FOR EN-
HANCEMENT OF DELIVERY OF ADMINISTRA-
TIVE 
SERVICES 
UNDER 
THE 
DEFENSE
HEALTH PROGRAM.
(a) REQUIREMENT.—The Secretary of Defense shall
take the actions that the Secretary determines necessary to
use, in at least one TRICARE program region, commer-
cially available information technology systems and prod-
ucts to simplify the critical administrative processes of the
defense health program (including TRICARE), to enhance
the efficiency of the performance of administrative services
under the program, to match commercially recognized
standards of performance of the services, and otherwise to
improve the performance of the services.
(b) IMPLEMENTATION.—In carrying out subsection
(a), the Secretary shall ensure that—
(1) the use of Internet technology is incorporated
into the processes referred to in that subsection; and
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(2) conversions to new or different computer
technologies incorporate data requirements that are
widely used in the marketplace (including those used
by medicare or commercial insurers) for the perform-
ance of administrative services.
(c) ADMINISTRATIVE SERVICES DEFINED.—In this
section, the term ‘‘administrative services’’ includes the per-
formance of the following functions:
(1) Marketing.
(2) Enrollment.
(3) Program education of beneficiaries.
(4) Program education of health care providers.
(5) Scheduling of appointments.
(6) Processing of claims.
SEC. 739. PATIENT CARE REPORTING AND MANAGEMENT
SYSTEM.
(a) ESTABLISHMENT.—The Secretary of Defense shall
establish a patient care error reporting and management
system.
(b) PURPOSES OF SYSTEM.—The purposes of the sys-
tem are as follows:
(1) To study the occurrences of errors in the pa-
tient care provided under chapter 55 of title 10,
United States Code.
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(2) To identify the systemic factors that are asso-
ciated with such occurrences.
(3) To provide for action to be taken to correct
the identified systemic factors.
(c) REQUIREMENTS FOR SYSTEM.—The patient care
error reporting and management system shall include the
following:
(1) A hospital-level patient safety center, within
the quality assurance department of each health care
organization of the Department of Defense, to collect,
assess, and report on the nature and frequency of er-
rors related to patient care.
(2) For each health care organization of the De-
partment of Defense and for the entire Defense health
program, the patient safety baselines that are nec-
essary for the development of a full understanding of
patient safety issues in each such organization and
the entire program, including the nature and types of
errors and the systemic causes of the errors.
(3) A Department of Defense Patient Safety Cen-
ter within the Armed Forces Institute of Pathology to
have the following missions:
(A) To analyze information on patient care
errors that is submitted to the Center by each
military health care organization.
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(B) To develop action plans for addressing
patterns of patient care errors.
(C) To execute those action plans to miti-
gate and control errors in patient care with a
goal of ensuring that the health care organiza-
tions of the Department of Defense provide high-
ly reliable patient care with virtually no error.
(D) To provide, through the Assistant Sec-
retary of Defense for Health Affairs, to the Agen-
cy for Healthcare Research and Quality of the
Department of Health and Human Services any
reports that the Assistant Secretary determines
appropriate.
(E) To review and integrate processes for
reducing errors associated with patient care and
for enhancing patient safety.
(F) To contract with a qualified and objec-
tive external organization to manage the na-
tional patient safety database of the Department
of Defense.
(d) MEDTEAMS PROGRAM.—The Secretary shall ex-
pand the health care team coordination program to inte-
grate that program into all Department of Defense health
care operations. In carrying out this subsection, the Sec-
retary shall take the following actions:
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(1) Establish not less than two Centers of Excel-
lence for the development, validation, proliferation,
and sustainment of the health care team coordination
program, one of which shall support all fixed military
health care organizations, the other of which shall
support all combat casualty care organizations.
(2) Deploy the program to all fixed and combat
casualty care organizations of each of the Armed
Forces, at the rate of not less than 10 organizations
in each fiscal year.
(3) Expand the scope of the health care team co-
ordination program from a focus on emergency de-
partment care to a coverage that includes care in all
major medical specialties, at the rate of not less than
one specialty in each fiscal year.
(4) Continue research and development invest-
ments to improve communication, coordination, and
team work in the provision of health care.
(e) CONSULTATION.—The Secretary shall consult with
the other administering Secretaries (as defined in section
1072(3) of title 10, United States Code) in carrying out
this section.
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SEC. 740. HEALTH CARE MANAGEMENT DEMONSTRATION
PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Defense shall
carry out a demonstration program on health care manage-
ment to explore opportunities for improving the planning
and management of the Department of Defense health care
system.
(b) TEST MODELS.—Under the demonstration pro-
gram, the Secretary shall test the use of the following plan-
ning and management models:
(1) A health care simulation model for studying
alternative delivery policies, processes, organizations,
and technologies.
(2) A health care simulation model for studying
long term disease management.
(c) DEMONSTRATION SITES.—The Secretary shall test
each model separately at one or more sites.
(d) PERIOD FOR PROGRAM.—The demonstration pro-
gram shall begin not later than 180 days after the date of
the enactment of this Act and shall terminate on December
31, 2001.
(e) REPORTS.—The Secretary of Defense shall submit
a report on the demonstration program to the Committees
on Armed Services of the Senate and the House of Rep-
resentatives not later than March 15, 2002. The report shall
include the Secretary’s assessment of the value of incor-
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porating the use of the tested planning and management
models throughout the Department of Defense health care
system.
(f) FUNDING.—Of the amount authorized to be appro-
priated under section 301(22), $6,000,000 shall be available
for the demonstration program under this section.
SEC. 741. STUDIES OF ACCRUAL FINANCING FOR HEALTH
CARE FOR MILITARY RETIREES.
(a) STUDIES REQUIRED.—The Secretary of Defense
shall carry out two studies to assess the feasibility and de-
sirability of financing the military health care program for
retirees of the uniformed services on an accrual basis.
(b) SOURCES OF STUDIES.—The Secretary shall pro-
vide for—
(1) one of the studies under subsection (a) to be
conducted by one or more Department of Defense or-
ganizations designated by the Secretary; and
(2) the other study to be conducted by an organi-
zation that is independent of the Department of De-
fense and has expertise in financial programs and
health care.
(c) REPORTS.—(1) The Secretary shall provide for the
submission of a final report on each study to the Secretary
within such time as the Secretary determines necessary to
satisfy the requirement in paragraph (2).
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(2) The Secretary shall transmit the final reports on
the studies to Congress not later than February 8, 2001.
The Secretary may include in the transmittal any com-
ments on the reports or on the matters studied that the Sec-
retary considers appropriate.
SEC. 742. AUGMENTATION OF ARMY MEDICAL DEPARTMENT
BY 
RESERVE 
OFFICERS 
OF 
THE 
PUBLIC
HEALTH SERVICE.
(a) AUTHORITY.—The Secretary of the Army and the
Secretary of Health and Human Services may jointly con-
duct a program to augment the Army Medical Department
by exercising any authorities provided to those officials in
law for the detailing of reserve commissioned officers of the
Public Health Service not in an active status to the Army
Medical Department for that purpose.
(b) AGREEMENT.—The Secretary of the Army and the
Secretary of Health and Human Services shall enter into
an agreement governing any program conducted under sub-
section (a).
(c) ASSESSMENT.—(1) The Secretary of the Army shall
review the laws providing the authorities described in sub-
section (a) and assess the adequacy of those laws for
authorizing—
(A) the Secretary of Health and Human Services
to detail reserve commissioned officers of the Public
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Health Service not in an active status to the Army
Medical Department to augment that department;
and
(B) the Secretary of the Army to accept the de-
tail of such officers for that purpose.
(2) The Secretary shall complete the review and assess-
ment under paragraph (1) not later than 90 days after the
date of the enactment of this Act.
(d) REPORT TO CONGRESS.—Not later than March 1,
2001, the Secretary of the Army shall submit a report on
the results of the review and assessment under subsection
(c) to the Committees on Armed Services of the Senate and
the House of Representatives. The report shall include the
following:
(1) The findings resulting from the review and
assessment.
(2) Any proposal for legislation that the Sec-
retary recommends to strengthen the authority of the
Secretary of Health and Human Services and the au-
thority of the Secretary of the Army to take the ac-
tions described in subparagraphs (A) and (B), respec-
tively, of subsection (c)(1).
(e) CONSULTATION REQUIREMENT.—The Secretary of
the Army shall consult with the Secretary of Health and
Human Services in carrying out the review and assessment
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under subsection (c) and in preparing the report (including
making recommendations) under subsection (d).
SEC. 743. SERVICE AREAS OF TRANSFEREES OF FORMER
UNIFORMED SERVICES TREATMENT FACILI-
TIES THAT ARE INCLUDED IN THE UNI-
FORMED SERVICES HEALTH CARE DELIVERY
SYSTEM.
Section 722(e) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C.
1073 note) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(e) SERVICE
AREA.—’’; and
(2) by adding at the end the following:
‘‘(2) The Secretary may, with the agreement of a des-
ignated provider, expand the service area of the designated
provider as the Secretary determines necessary to permit
covered beneficiaries to enroll in the designated provider’s
managed care plan. The expanded service area may include
one or more noncontiguous areas.’’.
SEC. 744. BLUE RIBBON ADVISORY PANEL ON DEPARTMENT
OF DEFENSE POLICIES REGARDING THE PRI-
VACY OF INDIVIDUAL MEDICAL RECORDS.
(a) ESTABLISHMENT.—(1) There is hereby established
an advisory panel to be known as the Blue Ribbon Advisory
Panel on Department of Defense Policies Regarding the Pri-
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vacy of Individual Medical Records (in this section referred
to as the ‘‘Panel’’).
(2)(A) The Panel shall be composed of 7 members ap-
pointed by the President, of whom—
(i) at least one shall be a member of a consumer
organization;
(ii) at least one shall be a medical professional;
(iii) at least one shall have a background in
medical ethics; and
(iv) at least one shall be a member of the Armed
Forces.
(B) The appointments of the members of the Panel
shall be made not later than 30 days after the date of the
enactment of this Act.
(3) No later than 30 days after the date on which all
members of the Panel have been appointed, the Panel shall
hold its first meeting.
(4) The Panel shall select a Chairman and Vice Chair-
man from among its members.
(b) DUTIES.—(1) The Panel shall conduct a thorough
study of all matters relating to the policies and practices
of the Department of Defense regarding the privacy of indi-
vidual medical records.
(2) Not later than April 30, 2001, the Panel shall sub-
mit a report to the President and Congress which shall con-
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tain a detailed statement of the findings and conclusions
of the Panel, together with its recommendations for such
legislation and administrative actions as it considers ap-
propriate to ensure the privacy of individual medical
records.
(c) POWERS.—(1) The Panel may hold such hearings,
sit and act at such times and places, take such testimony,
and receive such evidence as the Panel considers advisable
to carry out the purposes of this section.
(2) The Panel may secure directly from the Depart-
ment of Defense, and any other Federal department or agen-
cy, such information as the Panel considers necessary to
carry out the provisions of this section. Upon request of the
Chairman of the Panel, the Secretary of Defense, or the head
of such department or agency, shall furnish such informa-
tion to the Panel.
(3) The Panel may use the United States mails in the
same manner and under the same conditions as other de-
partments and agencies of the Federal Government.
(4) The Panel may accept, use, and dispose of gifts
or donations of services or property.
(5) Any Federal Government employee may be detailed
to the Panel without reimbursement, and such detail shall
be without interruption or loss of civil service status or
privilege.
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(d) TERMINATION.—The Panel shall terminate 30 days
after the date on which the Panel submits its report under
subsection (b)(2).
(e) FUNDING.—(1) Of the amounts authorized to be ap-
propriated by this Act, the Secretary shall make available
to the Panel such sums as the Panel may require for its
activities under this section.
(2) Any sums made available under paragraph (1)
shall remain available, without fiscal year limitation, until
expended.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
SEC. 801. IMPROVEMENTS IN PROCUREMENTS OF SERV-
ICES.
(a) PREFERENCE FOR PERFORMANCE-BASED SERVICE
CONTRACTING.—Not later than 180 days after the date of
the enactment of this Act, the Federal Acquisition Regula-
tion issued in accordance with sections 6 and 25 of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 405 and
421) shall be revised to establish a preference for use of con-
tracts and task orders for the purchase of services in the
following order of precedence:
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(1) A performance-based contract or perform-
ance-based task order that contains firm fixed prices
for the specific tasks to be performed.
(2) Any other performance-based contract or per-
formance-based task order.
(3) Any contract or task order that is not a per-
formance-based contract or a performance-based task
order.
(b) INCENTIVE
FOR USE
OF PERFORMANCE-BASED
SERVICE CONTRACTS.—(1) A Department of Defense per-
formance-based contract or performance-based task order
may be treated as a contract for the procurement of com-
mercial items if—
(A) the contract or task order is valued at
$5,000,000 or less;
(B) the contract or task order sets forth specifi-
cally each task to be performed and, for each task—
(i) defines the task in measurable, mission-
related terms;
(ii) identifies the specific end products or
output to be achieved; and
(iii) contains a firm fixed price; and
(C) the source of the services provides similar
services contemporaneously to the general public
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under terms and conditions similar to those offered to
the Federal Government.
(2) The special simplified procedures provided in the
Federal Acquisition Regulation pursuant to section
2304(g)(1)(B) of title 10, United States Code, shall not
apply to a performance-based contract or performance-
based task order that is treated as a contract for the pro-
curement of commercial items under paragraph (1).
(3) Not later than 2 years after the date of the enact-
ment of this Act, the Comptroller General shall submit a
report on the implementation of this subsection to the con-
gressional defense committees.
(4) The authority under this subsection shall not apply
to contracts entered into or task orders issued more than
3 years after the date of the enactment of this Act.
(c) CENTERS
OF EXCELLENCE
IN SERVICE CON-
TRACTING.—Not later than 180 days after the date of the
enactment of this Act, the Secretary of each military de-
partment shall establish at least one center of excellence in
contracting for services. Each center of excellence shall assist
the acquisition community by identifying, and serving as
a clearinghouse for, best practices in contracting for services
in the public and private sectors.
(d) 
ENHANCED
TRAINING
IN
SERVICE
CON-
TRACTING.—(1) The Secretary of Defense shall ensure that
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classes focusing specifically on contracting for services are
offered by the Defense Acquisition University and the De-
fense Systems Management College and are otherwise avail-
able to contracting personnel throughout the Department of
Defense.
(2) The Secretary of each military department and the
head of each Defense Agency shall ensure that the personnel
of the department or agency, as the case may be, who are
responsible for the awarding and management of contracts
for services receive appropriate training that is focused spe-
cifically on contracting for services.
(e) DEFINITIONS.—In this section:
(1) The term ‘‘performance-based’’, with respect
to a contract, a task order, or contracting, means that
the contract, task order, or contracting, respectively,
includes the use of performance work statements that
set forth contract requirements in clear, specific, and
objective terms with measurable outcomes.
(2) The term ‘‘commercial item’’ has the mean-
ing given the term in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12)).
(3) The term ‘‘Defense Agency’’ has the meaning
given the term in section 101(a)(11) of title 10,
United States Code.
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SEC. 802. ADDITION OF THRESHOLD VALUE REQUIREMENT
FOR APPLICABILITY OF A REPORTING RE-
QUIREMENT RELATING TO MULTIYEAR CON-
TRACT.
Section 2036b(l)(4) of title 10, United States Code, is
amended by striking ‘‘until the Secretary of Defense submits
to the congressional defense committees a report with respect
to that contract (or contract extension)’’ in the matter pre-
ceding subparagraph (A) and inserting ‘‘the value of which
would exceed $500,000,000 (when entered into or when ex-
tended, as the case may be) until the Secretary of Defense
has submitted to the congressional defense committees a re-
port’’.
SEC. 803. PLANNING FOR THE ACQUISITION OF INFORMA-
TION SYSTEMS.
(a) RESPONSIBILITY OF CHIEF INFORMATION OFFI-
CERS.—Section 2223 of title 10, United States Code, is
amended—
(1) in subsection (a)—
(A) by striking ‘‘and’’ at the end of para-
graph (3);
(B) by striking the period at the end of
paragraph (4) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(5) maintain a consolidated inventory of De-
partment of Defense mission critical and mission es-
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sential information systems, identify interfaces be-
tween these systems and other information systems,
and develop and maintain contingency plans for re-
sponding to a disruption in the operation of any of
these information systems.’’; and
(2) in subsection (b)—
(A) by striking ‘‘and’’ at the end of para-
graph (3);
(B) by striking the period at the end of
paragraph (4) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(5) maintain an inventory of the mission crit-
ical and mission essential information systems of the
military department, identify interfaces between these
systems and other information systems, and develop
and maintain contingency plans for responding to a
disruption in the operation of any of these informa-
tion systems.’’.
(b) REVISED REGULATIONS REQUIRED.—Not later
than 60 days after the date of enactment of this Act, De-
partment of Defense Directive 5000.1 shall be revised to es-
tablish minimum planning requirements for the acquisition
of information technology systems.
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(c) MISSION CRITICAL AND MISSION ESSENTIAL IN-
FORMATION TECHNOLOGY SYSTEMS.—The revised directive
required by subsection (b) shall—
(1) include definitions of the terms ‘‘mission
critical information system’’ and ‘‘mission essential
information system’’; and
(2) prohibit the award of any contract for the
acquisition of a mission critical or mission essential
information technology system until—
(A) the system has been registered with the
Chief Information Officer of the Department of
Defense;
(B) the Chief Information Officer has re-
ceived all information on the system that is re-
quired under the directive to be provided to that
official; and
(C) the Chief Information Officer has deter-
mined that an appropriate information assur-
ance strategy is in place for the system.
(d) MAJOR AUTOMATED INFORMATION SYSTEMS.—The
revised directive required by subsection (b) shall prohibit
Milestone I approval, Milestone II approval, or Milestone
III approval of a major automated information system
within the Department of Defense until the Chief Informa-
tion Officer has determined that—
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(1) the system is being developed in accordance
with the requirements of division E of the Clinger-
Cohen Act of 1996 (40 U.S.C. 1401 et seq.);
(2) appropriate actions have been taken with re-
spect to the system in the areas of business process re-
engineering, analysis of alternatives, economic anal-
ysis, and performance measures; and
(3) the system has been registered as described in
subsection (c)(2).
(e) REPORTS.—(1) The Secretary of Defense shall sub-
mit to the congressional defense committees, not later than
February 1 of each of fiscal years 2001, 2002, and 2003,
a report on the implementation of the requirements of this
section during the preceding fiscal year.
(2) The report for a fiscal year under paragraph (1)
shall include, at a minimum, for each major automated in-
formation system that was approved during such preceding
fiscal year under Department of Defense Directive 5000.1
(as revised pursuant to subsection (d)), the following:
(A) The funding baseline.
(B) The milestone schedule.
(C) The actions that have been taken to ensure
compliance with the requirements of this section and
the directive.
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(3) The report for fiscal year 2000 shall include, in
addition to the information required by paragraph (2), an
explanation of the manner in which the responsible officials
within the Department of Defense have addressed, or intend
to address, the following acquisition issues for each major
automated information system to be acquired after that fis-
cal year:
(A) Requirements definition.
(B) Presentation of a business case analysis, in-
cluding an analysis of alternatives and a calculation
of return on investment.
(C) Performance measurement.
(D) Test and evaluation.
(E) Interoperability.
(F) Cost, schedule, and performance baselines.
(G) Information assurance.
(H) Incremental fielding and implementation.
(I) Risk mitigation.
(J) The role of integrated product teams.
(K) Issues arising from implementation of the
Command, Control, Communications, Computers, In-
telligence, Surveillance, and Reconnaissance Plan re-
quired by Department of Defense Directive 5000.1
and Chairman of the Joint Chiefs of Staff Instruction
3170.01.
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(L) Oversight, including the Chief Information
Officer’s oversight of decision reviews.
(f) DEFINITIONS.—In this section:
(1) The term ‘‘Chief Information Officer’’ means
the senior official of the Department of Defense des-
ignated by the Secretary of Defense pursuant to sec-
tion 3506 of title 44, United States Code.
(2) The term ‘‘information technology system’’
has the meaning given the term ‘‘information tech-
nology’’ in section 5002 of the Clinger-Cohen Act of
1996 (40 U.S.C. 1401).
(3) The term ‘‘major automated information sys-
tem’’ has the meaning given that term in Department
of Defense Directive 5000.1.
SEC. 804. TRACKING OF INFORMATION TECHNOLOGY PUR-
CHASES.
(a) REQUIREMENT
FOR
TRACKING
SYSTEM.—(1)
Chapter 131 of title 10, United States Code, is amended
by adding at the end the following:
‘‘§ 2225. Information technology purchases: automated
tracking and management systems
‘‘(a) REQUIREMENT FOR SYSTEMS.—(1) The Secretary
of each military department shall administer an automated
system for tracking and managing purchases of information
technology products and services by the department.
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‘‘(2) The Secretary of Defense shall administer an
automated system for tracking and managing purchases of
information technology products and services by the Defense
Agencies.
‘‘(b) PURCHASE TO WHICH APPLICABLE.—Each sys-
tem under subsection (a) shall, at a minimum, provide for
collection of data on all purchases of information technology
products and services in excess of the simplified acquisition
threshold, regardless of whether such purchases are made in
the form of a contract, grant, cooperative agreement, other
transaction, task order, delivery order, or military inter-
departmental purchase request, or in any other form.
‘‘(c) DATA TO BE INCLUDED.—The information col-
lected under each such system shall include, for each pur-
chase, the following:
‘‘(1) The products or services purchased.
‘‘(2) The categorization of the products or serv-
ices as commercial off-the-shelf products, other com-
mercial items, nondevelopmental items other than
commercial items, other noncommercial items, or
services.
‘‘(3) The total dollar amount of the purchase.
‘‘(4) The contract form used to make the pur-
chase.
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‘‘(5) In the case of a purchase made through an-
other agency—
‘‘(A) the agency through which the purchase
is made; and
‘‘(B) the reasons for making the purchase
through that agency.
‘‘(6) The type of pricing used to make the pur-
chase (whether by fixed price or by another specified
type of pricing).
‘‘(7) The extent of competition provided for in
making the purchase.
‘‘(8) A statement regarding whether the purchase
was made from—
‘‘(A) a small business concern;
‘‘(B) a small business concern owned and
controlled by socially and economically dis-
advantaged individuals; or
‘‘(C) a small business concern owned and
controlled by women.
‘‘(9) A statement regarding whether the purchase
was made in compliance with the planning require-
ments provided under sections 5112, 5113, 5122, and
5123 of the Clinger-Cohen Act of 1996 (40 U.S.C.
1412, 1413, 1242, 1423).
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‘‘(10) In the case of frequently-purchased com-
mercial off-the-shelf items, data that informs man-
agers of the unit prices paid for the items and enables
the managers to ensure that such prices are fair and
reasonable.
‘‘(d) LIMITATION ON PURCHASES.—No purchase of in-
formation technology products or services in excess of the
simplified acquisition threshold shall be made for the De-
partment of Defense through a Federal Government agency
that is outside the Department of Defense unless—
‘‘(1) data on the purchase is included in a track-
ing system that meets the requirements of subsections
(a), (b), and (c); or
‘‘(2) the purchase—
‘‘(A) in the case of a purchase by a Defense
Agency, is approved by the Under Secretary of
Defense for Acquisition, Technology, and Logis-
tics; or
‘‘(B) in the case of a purchase by a military
department, is approved by the senior procure-
ment executive of the military department.
‘‘(e) ANNUAL REPORT.—Not later than February 15
of each fiscal year, the Secretary of Defense shall submit
to the Committees on Armed Services of the Senate and the
House of Representatives a report on the purchases of infor-
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mation technology products and services that were made by
the military departments and Defense Agencies during the
preceding fiscal year. The report shall set forth an aggrega-
tion of the information collected in accordance with sub-
section (c).
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘senior procurement executive’,
with respect to a military department, means the offi-
cial designated as the senior procurement executive
for the military department for the purposes of sec-
tion 16(3) of the Office of Federal Procurement Policy
Act (41 U.S.C. 414(3)).
‘‘(2) The term ‘simplified acquisition threshold’
has the meaning given the term in section 4(11) of the
Office of Federal Procurement Policy Act (31 U.S.C.
403(11).
‘‘(3) The term ‘small business concern’ means a
business concern that meets the applicable size stand-
ards prescribed pursuant to section 3(a) of the Small
Business Act (15 U.S.C. 632(a)).
‘‘(4) The term ‘small business concern owned and
controlled by socially and economically disadvantaged
individuals’ has the meaning given that term in sec-
tion 8(d)(3)(C) of the Small Business Act (15 U.S.C.
637(d)(3)(C)).
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‘‘(5) The term ‘small business concern owned and
controlled by women’ has the meaning given that
term in section 8(d)(3)(D) of the Small Business Act
(15 U.S.C. 637(d)(3)(D)).’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘2225. Information technology purchases: automated tracking and management
systems.’’.
(b) TIME FOR IMPLEMENTATION.—(1) Each official re-
quired under section 2225 of title 10, United States Code
(as added by subsection (a)), to administer an automated
system for tracking and managing purchases of information
technology products and services shall develop and com-
mence the use of the system not later than one year after
the date of the enactment of this Act.
(2) Subsection (d) of section 2225 of title 10, United
States Code (as so added), shall apply to purchases de-
scribed in that subsection for which solicitations of offers
are issued more than one year after the date of the enact-
ment of this Act.
(c) GAO REPORT.—Not later than 15 months after the
date of the enactment of this Act, the Comptroller General
shall submit to the congressional defense committees a re-
port on the systems developed pursuant to section 2225 of
title 10, United States Code (as added by subsection (a)).
The report shall include the Comptroller General’s assess-
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ment of the extent to which the systems meet the require-
ments of that section.
SEC. 805. REPEAL OF REQUIREMENT FOR CONTRACTOR AS-
SURANCES REGARDING THE COMPLETENESS,
ACCURACY, AND CONTRACTUAL SUFFICIENCY
OF TECHNICAL DATA PROVIDED BY THE CON-
TRACTOR.
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.
SEC. 806. EXTENSION OF AUTHORITY FOR DEPARTMENT OF
DEFENSE ACQUISITION PILOT PROGRAMS.
Section 5064(d)(2) of the Federal Acquisition Stream-
lining Act of 1994 (Public Law 103–355; 108 Stat. 3361;
10 U.S.C. 2430 note) is amended by striking ‘‘45 days after
the date of the enactment of this Act and ends on September
30, 1998’’ and inserting ‘‘on October 13, 1994, and ends
on October 1, 2007’’.
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SEC. 807. CLARIFICATION AND EXTENSION OF AUTHORITY
TO 
CARRY 
OUT 
CERTAIN 
PROTOTYPE
PROJECTS.
(a) AMENDMENTS TO AUTHORITY.—Section 845 of the
National Defense Authorization Act for Fiscal Year 1994
(10 U.S.C. 2371 note) is amended by—
(1) redesignating subsection (d) as subsection (g);
and
(2) inserting after subsection (c) the following:
‘‘(d) APPROPRIATE USE OF AUTHORITY.—(1) The Sec-
retary of Defense shall ensure that no official of an agency
enters into an agreement for a prototype project under the
authority of this section unless—
‘‘(A) at least 20 percent of the total cost of the
prototype project is to be paid out of funds provided
by parties to the agreement other than the Federal
Government (not including funds provided by such
parties in the form of independent research and devel-
opment costs and other costs that are reimbursed as
indirect costs under Federal Government contracts);
‘‘(B) at least 40 percent of the total cost of the
prototype project is to be paid out of funds provided
by parties to the agreement other than the Federal
Government (including funds provided by such par-
ties in the form of independent research and develop-
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ment costs and other costs that are reimbursed as in-
direct costs under Federal Government contracts);
‘‘(C) there is at least one nontraditional defense
contractor participating to a significant extent in the
prototype project; or
‘‘(D) the senior procurement executive for the
agency (as designated for the purposes of section
16(3) of the Office of Federal Procurement Policy Act
(41 U.S.C. 414(3))) determines in writing that ex-
traordinary circumstances justify the use of the au-
thority of section 2371 of title 10, United States Code,
in accordance with the requirements of this section, to
enter into the particular agreement.
‘‘(2)(A) Except as provided in subparagraph (B), the
amounts counted for the purposes of this subsection as being
provided or to be provided by a party other than the Federal
Government under an agreement for a prototype project
that is entered into under this section do not include costs
that were incurred before the date on which the agreement
becomes effective.
‘‘(B) Costs that were incurred for a prototype project
by a party after the beginning of negotiations resulting in
an agreement for the project under this section may be
counted for the purposes of this subsection as being provided
or to be provided by the party under the agreement if and
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to the extent that the contracting officer or another official
responsible for entering into the agreement determines in
writing that—
‘‘(i) the party incurred the costs in anticipation
of entering into the agreement; and
‘‘(ii) it was appropriate for the party to incur
the costs before the agreement became effective in
order to ensure the successful implementation of the
agreement.
‘‘(e) PILOT PROGRAM FOR TRANSITION TO FOLLOW-
ON CONTRACTS.—(1) The Secretary of Defense is authorized
to carry out a pilot program for follow-on contracting for
the production of items or processes that are developed by
nontraditional defense contractors under prototype projects
carried out under this section.
‘‘(2) Under the pilot program—
‘‘(A) a qualifying contract for the procurement of
such an item or process, or a qualifying subcontract
under a contract for the procurement of such an item
or process, may be treated as a contract or sub-
contract, respectively, for the procurement of commer-
cial items, as defined in section 4(12) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(12));
and
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‘‘(B) the item or process may be treated as an
item or process, respectively, that is developed in part
with Federal funds and in part at private expense for
the purposes of section 2320 of title 10, United States
Code.
‘‘(3) For the purposes of the pilot program, a quali-
fying contract or subcontract is a contract or subcontract,
respectively, with a nontraditional defense contractor
that—
‘‘(A) does not exceed $20,000,000; and
‘‘(B) is either—
‘‘(i) a firm, fixed-price contract or sub-
contract; or
‘‘(ii) a fixed-price contract or subcontract
with economic price adjustment.
‘‘(4) The authority to conduct a pilot program under
this subsection shall terminate on September 30, 2004. The
termination of the authority shall not affect the validity
of contracts or subcontracts that are awarded or modified
during the period of the pilot program, without regard to
whether the contracts or subcontracts are performed during
the period.
‘‘(f) NONTRADITIONAL DEFENSE CONTRACTOR DE-
FINED.—In this section, the term ‘nontraditional defense
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contractor’ means an entity that has not, for a period of
at least three years, entered into—
‘‘(1) any contract that is subject to the cost ac-
counting standards prescribed pursuant to section 26
of the Office of Federal Procurement Policy Act (41
U.S.C. 422); or
‘‘(2) any other contract or agreement to carry
out prototype projects or to perform basic, applied, or
advanced research projects for a Federal Government
agency, other than an agreement entered into under
the authority of this section or section 2371 of title
10, United States Code.’’.
(b) EXTENSION
OF AUTHORITY.—Subsection (g) of
such section, as redesignated by subsection (a)(1), is amend-
ed by striking ‘‘September 30, 2001’’ and inserting ‘‘Sep-
tember 30, 2004’’.
(c) MORATORIUM.—Beginning on the date that is 120
days after the date of the enactment of this Act, no trans-
action may be entered into under the authority of section
845 of the National Defense Authorization Act for Fiscal
Year 1994 or section 2371 of title 10, United States Code,
until the final regulations implementing such section 2371
(required by subsection (g) of such section) are published
in the Federal Register.
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SEC. 
808. 
CLARIFICATION 
OF 
AUTHORITY 
OF 
COMP-
TROLLER GENERAL TO REVIEW RECORDS OF
PARTICIPANTS 
IN 
CERTAIN 
PROTOTYPE
PROJECTS.
(a) COMPTROLLER GENERAL REVIEW.—Section 845(c)
of the National Defense Authorization Act for Fiscal Year
1994 (10 U.S.C. 2371 note) is amended—
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3)(A) The right provided to the Comptroller General
in a clause of an agreement under paragraph (1) is limited
as provided in subparagraph (B) in the case of a party
to the agreement, an entity that participates in the per-
formance of the agreement, or a subordinate element of that
party or entity if the only agreements or other transactions
that the party, entity, or subordinate element entered into
with Government entities in the year prior to the date of
that agreement are cooperative agreements or transactions
that were entered into under this section or section 2371
of title 10, United States Code.
‘‘(B) The only records of a party, other entity, or sub-
ordinate element referred to in subparagraph (A) that the
Comptroller General may examine in the exercise of the
right referred to in that subparagraph are records of the
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same type as the records that the Government has had the
right to examine under the audit access clauses of the pre-
vious agreements or transactions referred to in such sub-
paragraph that were entered into by that particular party,
entity, or subordinate element.’’.
SEC. 809. ELIGIBILITY OF SMALL BUSINESS CONCERNS
OWNED AND CONTROLLED BY WOMEN FOR
ASSISTANCE UNDER THE MENTOR-PROTEGE
PROGRAM.
Section 831(m)(2) of the National Defense Authoriza-
tion Act for Fiscal Year 1991 (Public Law 101–510; 10
U.S.C. 2302 note) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(C);
(2) by striking the period at the end of subpara-
graph (D) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(E) a small business concern owned and
controlled by women, as defined in section
8(d)(3)(D) of the Small Business Act (15 U.S.C.
637(d)(3)(D)).’’.
SEC. 810. NAVY-MARINE CORPS INTRANET ACQUISITION.
(a) LIMITATION.—The performance of a contract for
the acquisition of a Navy-Marine Corps Intranet may not
begin until the Secretary of the Navy submits a report on
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that contract to Congress. A report under this section shall
contain the following information:
(1) An estimate of the amount to be expended on
the contract by each of the Navy and Marine Corps
for each fiscal year.
(2) The accounts from which the performance of
the contract will be funded through the end of fiscal
year 2001.
(3) A plan for an incrementally phased imple-
mentation of the Navy-Marine Corps Intranet into
the operations of the shore-based activities of the Navy
and Marine Corps.
(4) The same information with regard to the
Navy-Marine Corps Intranet as is required to be in-
cluded in the report on major automated information
systems under paragraphs (2) and (3) of section
803(e).
(5) With regard to each major command in-
cluded in the first year of the implementation of the
contract—
(A) an estimate of the number of civilian
personnel currently performing functions that
are potentially included in the scope of the con-
tract;
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(B) the extent to which the contractor may
continue to rely upon that workforce to perform
functions after the award of the contract; and
(C) the plans of the Department of the Navy
for reassignment, reorganization, or other dis-
position of any portion of the workforce that does
not continue to perform current functions.
(b) PROHIBITIONS.—(1) The increment of the Navy-
Marine Corps Intranet that is implemented during the first
year of implementation may not include any activities of
the Marine Corps, the naval shipyards, or the naval avia-
tion depots.
(2) Funds available for fiscal year 2001 for activities
referred to in paragraph (1) may not be expended for any
contract for the Navy-Marine Corps Intranet.
(c) APPLICABILITY OF STATUTORY AND REGULATORY
REQUIREMENTS.—The acquisition of a Navy-Marine Corps
Intranet shall be managed by the Department of the Navy
in accordance with the requirements of—
(1) the Clinger-Cohen Act of 1996, including the
requirement for utilizing modular contracting in ac-
cordance with section 38 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 434); and
(2) Department of Defense Directives 5000.1 and
5000.2–R and all other directives, regulations, and
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management controls that are applicable to major in-
vestments in information technology and related serv-
ices.
(d) COMPTROLLER GENERAL REVIEW.—(1) At the
same time that the Secretary of the Navy submits a report
on the Navy-Marine Corps Intranet to Congress under sub-
section (a), the Secretary shall transmit a copy of the report
to the Comptroller General.
(2) Not later than 60 days after receiving a report on
the Navy-Marine Corps Intranet under paragraph (1), the
Comptroller General shall review the report and submit to
Congress any comments that the Comptroller General con-
siders appropriate regarding the report and the Navy-Ma-
rine Corps Intranet.
(e) PHASED IMPLEMENTATION TO COMMENCE DURING
FISCAL YEAR 2001—The Secretary of the Navy shall com-
mence a phased implementation of the Navy-Marine Corps
Intranet during fiscal year 2001. For the implementation
in that fiscal year—
(1) not more than fifteen percent of the total
number of work stations to be provided under the
Navy-Marine Corps Intranet program may be pro-
vided in the first quarter of such fiscal year; and
(2) no additional work stations may be provided
until—
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(A) the Secretary has conducted operational
testing of the Intranet; and
(B) the Chief Information Officer of the De-
partment of Defense has certified to the Sec-
retary that the results of the operational testing
of the Intranet are acceptable.
(f) IMPACT ON FEDERAL EMPLOYEES.—The Secretary
shall mitigate any adverse impact of the implementation
of the Navy-Marine Corps Intranet on civilian employees
of the Department of the Navy who, as of the date of the
enactment of this Act, are performing functions that are
included in the scope of the Navy-Marine Corps Intranet
program by—
(1) developing a comprehensive plan for the
transition of such employees to the performance of
other functions within the Department of the Navy;
(2) taking full advantage of transition authori-
ties available for the benefit of employees;
(3) encouraging the retraining of employees who
express a desire to qualify for reassignment to the
performance of other functions within the Department
of the Navy; and
(4) including a provision in the Navy-Marine
Corps Intranet contract that requires the contractor
to provide a preference for hiring employees of the De-
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partment of the Navy who, as of the date of the enact-
ment of this Act, are performing functions that are
included in the scope of the contract.
SEC. 811. QUALIFICATIONS REQUIRED FOR EMPLOYMENT
AND ASSIGNMENT IN CONTRACTING POSI-
TIONS.
(a) APPLICABILITY OF REQUIREMENTS TO MEMBERS
OF THE ARMED FORCES.—Section 1724 of title 10, United
States Code, is amended—
(1) in subsection (a), by striking ‘‘a person
must’’ in the matter preceding paragraph (1) and in-
serting ‘‘an employee or member of the armed forces
must’’; and
(2) in subsection (d)—
(A) by striking ‘‘employee of’’ and inserting
‘‘person in’’; and
(B) by striking ‘‘employee possesses’’ and
inserting ‘‘person possesses’’.
(b) MANDATORY
ACADEMIC
QUALIFICATIONS.—(1)
Subsection (a)(3) of such section is amended—
(A) by inserting ‘‘and’’ before ‘‘(B)’’; and
(B) by striking ‘‘, or (C)’’ and all that follows
through ‘‘listed in subparagraph (B)’’.
(2) Subsection (b) of such section is amended to read
as follows:
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‘‘(b) GS–1102 SERIES POSITIONS AND SIMILAR MILI-
TARY POSITIONS.—The Secretary of Defense shall require
that a person meet the requirements set forth in paragraph
(3) of subsection (a), but not the other requirements set forth
in that subsection, in order to qualify to serve in a position
in the Department of Defense in—
‘‘(1) the GS–1102 occupational series; or
‘‘(2) a similar occupational specialty when the
position is to be filled by a member of the armed
forces.’’.
(c) EXCEPTION.—Subsection (c) of such section is
amended to read as follows:
‘‘(c) EXCEPTION.—The requirements imposed under
subsection (a) or (b) shall not apply to a person for the
purpose of qualifying to serve in a position in which the
person is serving on September 30, 2000.’’.
(d) DELETION
OF
UNNECESSARY
CROSS
REF-
ERENCES.—Subsection (a) of such section is amended by
striking ‘‘(except as provided in subsections (c) and (d))’’
in the matter preceding paragraph (1).
(e) EFFECTIVE DATE.—This section, and the amend-
ments made by this section, shall take effect on October 1,
2000, and shall apply to appointments and assignments
made on or after that date.
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SEC. 812. DEFENSE ACQUISITION AND SUPPORT WORK-
FORCE.
(a) REQUIREMENT
FOR REPORT.—Not later than
March 15, 2001, the Secretary of Defense shall submit to
Congress a report on the sufficiency of the acquisition and
support workforce of the Department of Defense. The report
shall include a plan to ensure that the defense acquisition
and support workforce is of sufficient size and has the ex-
pertise necessary to ensure the cost-effective management of
the defense acquisition system to obtain needed products
and services at the best value.
(b) CONTENT OF REPORT.—(1) The Secretary’s report
on the defense acquisition and support workforce under sub-
section (a) shall include, at a minimum, the following:
(A) A comprehensive reassessment of any pro-
grammed reductions in the workforce and the impact
that such reductions are likely to have on the ability
of the workforce to meet the anticipated workload and
responsibilities of the acquisition workforce.
(B) An assessment of the changing demographics
of the workforce, including the impact of anticipated
retirements among the most experienced acquisition
personnel over the next five years, and management
steps that may be needed to address these changes.
(C) A plan to address problems arising from pre-
vious reductions in the workforce, including—
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(i) increased backlogs in closing out com-
pleted contracts;
(ii) increased program costs resulting from
contracting for technical support rather than
using Federal employees to provide the technical
support;
(iii) insufficient staff to negotiate fair and
reasonable pricing, to review and respond to con-
tractor actions, to perform oversight and inspec-
tions, and otherwise to manage contract require-
ments;
(iv) failures to comply with competition re-
quirements, to perform independent cost esti-
mates, to complete technical reviews, to meet con-
tractor surveillance requirements, and to perform
necessary cost control functions; and
(v) lost opportunities to negotiate strategic
supplier alliances, to improve parts control and
management, to conduct modeling and simula-
tion projects, and to develop other cost savings
initiatives.
(D) The actions that are being taken or could be
taken within the Department of Defense to enhance
the tenure and reduce the turnover of program execu-
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tive officers, program managers, and contracting offi-
cers.
(E) An evaluation of the acquisition workforce
demonstration project conducted under section 4308 of
the National Defense Authorization Act for Fiscal
Year 1996 (Public Law 104–106; 10 U.S.C. 1701
note) together with any recommendations for improv-
ing personnel management laws, policies, or proce-
dures with respect to the defense acquisition and sup-
port workforce.
(2) The plan contained in the report shall include spe-
cific milestones for workforce size, composition, and quali-
fications (including plans for needed recruiting, retention,
and training) to address any problems identified in the re-
port and to ensure the achievement of the objectives of the
plan that are set forth in subsection (a).
(c) EXTENSION OF DEMONSTRATION PROJECT.—Sec-
tion 4308(b)(3)(B) of the National Defense Authorization
Act for Fiscal Year 1996 (10 U.S.C. 1701 note) is amended
by striking ‘‘3-year period beginning on the date of the en-
actment of the National Defense Authorization Act for Fis-
cal Year 1998’’ and inserting ‘‘period beginning on Novem-
ber 18, 1997, and ending on November 17, 2003’’.
(d) MORATORIUM ON REDUCTION OF DEFENSE ACQUI-
SITION WORKFORCE.—(1) Notwithstanding any other pro-
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vision of law, the defense acquisition and support workforce
may not be reduced, during fiscal years 2001, 2002, and
2003, below the level of that workforce as of September 30,
2000, determined on the basis of full-time equivalent posi-
tions.
(2) The Secretary of Defense may waive the prohibi-
tion in paragraph (1) and reduce the level of the defense
acquisition and support workforce upon submitting to Con-
gress the Secretary’s certification that the defense acquisi-
tion and support workforce, at the level to which reduced,
will be able efficiently and effectively to perform the work-
loads that are required of that workforce consistent with the
cost-effective management of the defense acquisition system
to obtain best value equipment and with ensuring military
readiness.
(e) DEFENSE ACQUISITION AND SUPPORT WORKFORCE
DEFINED.—In this section, the term ‘‘defense acquisition
and support workforce’’ means Armed Forces and civilian
personnel who are assigned to, or are employed in, an orga-
nization of the Department of Defense that is—
(1) an acquisition organization specified in De-
partment of Defense Instruction 5000.58, dated Janu-
ary 14, 1992; or
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(2) an organization not so specified that has ac-
quisition as its predominant mission, as determined
by the Secretary of Defense.
SEC. 813. FINANCIAL ANALYSIS OF USE OF DUAL RATES
FOR QUANTIFYING OVERHEAD COSTS AT
ARMY INDUSTRIAL FACILITIES.
(a) REQUIREMENT FOR ANALYSIS.—The Secretary of
the Army shall carry out a financial analysis of the costs
that would be incurred and the benefits that would be de-
rived from the implementation of a policy to use—
(1) one set of rates for quantifying the overhead
costs associated with government-owned industrial fa-
cilities of the Department of the Army when allo-
cating those costs to contractors operating the facili-
ties; and
(2) another set of rates for quantifying the over-
head costs to be allocated to the operation of such fa-
cilities by employees of the United States.
(b) REPORT.—Not later than February 15, 2001, the
Secretary shall submit to the congressional defense commit-
tees a report on the results of the analysis carried out under
subsection (a). The report shall include the following:
(1) The costs and benefits identified in the anal-
ysis under subsection (a).
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(2) The risks to the United States of imple-
menting a dual rates policy described in subsection
(a).
(3) The effects that a use of dual rates under
such a policy would have on the defense industrial
base of the United States.
SEC. 814. REVISION OF THE ORGANIZATION AND AUTHOR-
ITY OF THE COST ACCOUNTING STANDARDS
BOARD.
(a) ESTABLISHMENT WITHIN OMB.—Paragraph (1)
of subsection (a) of section 26 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 422) is amended by striking
‘‘Office of Federal Procurement Policy’’ in the first sentence
and inserting ‘‘Office of Management and Budget’’.
(b) COMPOSITION OF BOARD.—Subsection (a) of such
section is further amended—
(1) by striking the second sentence of paragraph
(1);
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
‘‘(2) The Board shall consist of five members appointed
as follows:
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‘‘(A) A Chairman, appointed by the Director of
the Office of Management and Budget, from among
persons who are knowledgeable in cost accounting
matters for Federal Government contracts.
‘‘(B) One member, appointed by the Secretary of
Defense, from among Department of Defense per-
sonnel.
‘‘(C) One member, appointed by the Adminis-
trator, from among employees of executive agencies
other than the Department of Defense, with the con-
currence of the head of the executive agency concerned.
‘‘(D) One member, appointed by the Chairman
from among persons (other than officers and employ-
ees of the United States) who are in the accounting
or accounting education profession.
‘‘(E) One member, appointed by the Chairman
from among persons in industry.’’.
(c) TERM OF OFFICE.—Paragraph (3) of such sub-
section, as redesignated by subsection (b)(2), is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘, other than the Adminis-
trator for Federal Procurement Policy,’’;
(B) by striking clause (i);
(C) by redesignating clauses (ii) and (iii)
as clauses (i) and (ii), respectively; and
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(D) in clause (ii), as so redesignated, by
striking ‘‘individual who is appointed under
paragraph (1)(A)’’ and inserting ‘‘officer or em-
ployee of the Federal Government who is ap-
pointed as a member under paragraph (2)’’; and
(2) by striking subparagraph (C).
(d) OTHER BOARD PERSONNEL.—(1) Subsection (b)
of such section is amended to read as follows:
‘‘(b) SENIOR STAFF.—The Chairman, after consulta-
tion with the Board, may appoint an executive secretary
and two additional staff members without regard to the pro-
visions of title 5, United States Code, governing appoint-
ments in the competitive service and in senior-level posi-
tions. The Chairman may pay such employees without re-
gard to the provisions of chapter 51 (relating to classifica-
tion of positions), and subchapter III of chapter 53 of such
title and section 5376 of such title (relating to the rates
of basic pay under the General Schedule and for senior-
level positions, respectively), except that no individual so
appointed may receive pay in excess of the maximum rate
of basic pay payable for a senior-level position under such
section 5376.’’.
(2) Subsections (c) and (d)(2), and the third sentence
of subsection (e), of such section are amended by striking
‘‘Administrator’’ and inserting ‘‘Chairman’’.
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(e) COST ACCOUNTING STANDARDS AUTHORITY.—(1)
Paragraph (1) of subsection (f) of such section is amended
by inserting ‘‘, subject to direction of the Director of the
Office of Management and Budget,’’ after ‘‘exclusive author-
ity’’.
(2) Paragraph (2)(B)(iv) of such subsection is amend-
ed by striking ‘‘more than $7,500,000’’ and inserting
‘‘$7,500,000 or more’’.
(3) Paragraph (3) of such subsection is amended, in
the first sentence—
(A) by striking ‘‘Administrator, after consulta-
tion with the Board’’ and inserting ‘‘Chairman, with
the concurrence of a majority of the members of the
Board’’; and
(B) by inserting before the period at the end the
following: ‘‘, including rules and procedures for the
public conduct of meetings of the Board’’.
(4) Paragraph (5)(C) of such subsection is amended
to read as follows:
‘‘(C) The head of an executive agency may not delegate
the authority under subparagraph (A) or (B) to any official
in the executive agency below a level in the executive agency
as follows:
‘‘(i) The senior policymaking level, except as pro-
vided in clause (ii).
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‘‘(ii) The head of a procuring activity, in the
case of a firm, fixed price contract or subcontract for
which the requirement to obtain cost or pricing data
under subsection (a) of section 2306a of title 10,
United States Code, or subsection (a) of section 304A
of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 254b) is waived under sub-
section (b)(1)(C) of such section, respectively.’’.
(5) Paragraph (5)(E) of such subsection is amended
by inserting before the period at the end the following: ‘‘in
accordance with requirements prescribed by the Board’’.
(f) REQUIREMENTS FOR STANDARDS.—(1) Subsection
(g)(1)(B) of section 26 of the Office of Federal Procurement
Policy Act is amended by inserting before the semicolon at
the end the following: ‘‘, together with a solicitation of com-
ments on those issues’’.
(g) INTEREST RATE APPLICABLE TO CONTRACT PRICE
ADJUSTMENTS.—Subsection (h)(4) of such section is
amended by inserting ‘‘(a)(2)’’ after ‘‘6621’’ both places that
it appears.
(h) REPEAL
OF REQUIREMENT
FOR ANNUAL RE-
PORT.—Such section is further amended by striking sub-
section (i).
(i) EFFECTS OF BOARD INTERPRETATIONS AND REGU-
LATIONS.—Subsection (j) of such section is amended—
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(1) in paragraph (1), by striking ‘‘promulgated
by the Cost Accounting Standards Board under sec-
tion 719 of the Defense Production Act of 1950 (50
U.S.C. App. 2168)’’ and inserting ‘‘that are in effect
on the date of the enactment of the National Defense
Authorization Act for Fiscal Year 2001’’; and
(2) in paragraph (3), by striking ‘‘under the au-
thority set forth in section 6 of this Act’’ and insert-
ing ‘‘exercising the authority provided in section 6 of
this Act in consultation with the Chairman’’.
(j) RATE OF PAY FOR CHAIRMAN.—Section 5315 of
title 5, United States Code, is amended by adding at the
end the following:
‘‘Chairman, Cost Accounting Standards Board.’’.
(k) TRANSITION PROVISION
FOR MEMBERS.—Each
member of the Cost Accounting Standards Board who serves
on the Board under paragraph (1) of section 26(a) of the
Office of Federal Procurement Policy Act, as in effect on
the day before the date of the enactment of this Act, shall
continue to serve as a member of the Board until the earlier
of—
(1) the expiration of the term for which the
member was so appointed; or
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(2) the date on which a successor to such member
is appointed under paragraph (2) of such section
26(a), as amended by subsection (b) of this section.
SEC. 815. REVISION OF AUTHORITY FOR SOLUTIONS-BASED
CONTRACTING PILOT PROGRAM.
(a) PILOT PROJECTS UNDER THE PROGRAM.—Section
5312 of the Clinger-Cohen Act of 1996 (40 U.S.C. 1492)
is amended—
(1) in subsection (a), by striking ‘‘subsection
(d)(2)’’ and inserting ‘‘subsection (d)’’; and
(2) by striking subsection (d) and inserting the
following:
‘‘(d) PILOT PROGRAM PROJECTS.—The Administrator
shall authorize to be carried out under the pilot program—
‘‘(1) not more than 10 projects, each of which
has an estimated cost of at least $25,000,000 and not
more than $100,000,000; and
‘‘(2) not more than 10 projects for small business
concerns, each of which has an estimated cost of at
least $1,000,000 and not more than $5,000,000.’’.
(b) ELIMINATION OF REQUIREMENT FOR FEDERAL
FUNDING OF PROGRAM DEFINITION PHASE.—Subsection
(c)(9)(B) of such section is amended by striking ‘‘program
definition phase (funded, in the case of the source ultimately
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awarded the contract, by the Federal Government)—’’ and
inserting ‘‘program definition phase—’’.
SEC. 816. APPROPRIATE USE OF PERSONNEL EXPERIENCE
AND EDUCATIONAL REQUIREMENTS IN THE
PROCUREMENT 
OF 
INFORMATION 
TECH-
NOLOGY SERVICES.
(a) AMENDMENT OF THE FEDERAL ACQUISITION REG-
ULATION.—Not later than 180 days after the date of the
enactment of this Act, the Federal Acquisition Regulation
issued in accordance with sections 6 and 25 of the Office
of Federal Procurement Policy Act (41 U.S.C. 405 and 421)
shall be amended to address the use of personnel experience
and educational requirements in the procurement of infor-
mation technology services.
(b) CONTENT
OF
AMENDMENT.—The amendment
issued pursuant to subsection (a) shall—
(1) provide that a solicitation of bids on a per-
formance-based contract for the procurement of infor-
mation technology services may not set forth any
minimum experience or educational requirement for
contractor personnel that a bidder must satisfy in
order to be eligible for award of the contract; and
(2) specify—
(A) the circumstances under which a solici-
tation of bids for other contracts for the procure-
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ment of information technology services may set
forth any such minimum requirement for that
purpose; and
(B) the circumstances under which a solici-
tation of bids for other contracts for the procure-
ment of information technology services may not
set forth any such minimum requirement for
that purpose.
(c) CONSTRUCTION OF REGULATION.—The amendment
issued pursuant to subsection (a) shall include a rule of
construction that a prohibition included in the amendment
under paragraph (1) or (2)(B) does not prohibit the consid-
eration of the experience and educational levels of the per-
sonnel of bidders in the selection of a bidder to be awarded
a contract.
(d) GAO REPORT.—Not later than 1 year after the
date on which the regulations required by subsection (a)
are published in the Federal Register, the Comptroller Gen-
eral shall submit to Congress an evaluation of—
(1) executive agency compliance with the regula-
tions; and
(2) conformity of the regulations with existing
law, together with any recommendations that the
Comptroller General considers appropriate.
(e) DEFINITIONS.—In this section:
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(1) The term ‘‘executive agency’’ has the mean-
ing given that term in section 4 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403).
(2) The term ‘‘performance-based contract’’
means a contract that includes performance work
statements setting forth contract requirements in
clear, specific, and objective terms with measurable
outcomes.
(3) The term ‘‘information technology’’ has the
meaning given that term in section 5002 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401).
SEC. 817. STUDY OF OFFICE OF MANAGEMENT AND BUDGET
CIRCULAR A–76 PROCESS.
(a) GAO-CONVENED PANEL.—The Comptroller Gen-
eral shall convene a panel of experts to study rules, and
the administration of the rules, governing the selection of
sources for the performance of commercial or industrial
functions for the Federal Government from between public
and private sector sources, including public-private com-
petitions pursuant to the Office of Management and Budget
Circular A–76. The Comptroller General shall be the chair-
man of the panel.
(b) COMPOSITION OF PANEL.—(1) The Comptroller
General shall appoint highly qualified and knowledgeable
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persons to serve on the panel and shall ensure that the fol-
lowing groups receive fair representation on the panel:
(A) Officers and employees of the United States.
(B) Persons in private industry.
(C) Federal labor organizations.
(2) For the purposes of the requirement for fair rep-
resentation under paragraph (1), persons serving on the
panel under subparagraph (C) of that paragraph shall not
be counted as persons serving on the panel under subpara-
graph (A) or (B) of that paragraph.
(c) PARTICIPATION
BY OTHER INTERESTED PAR-
TIES.—The Comptroller General shall ensure that the op-
portunity to submit information and views on the Office
of Management and Budget Circular A–76 process to the
panel for the purposes of the study is accorded to all inter-
ested parties, including officers and employees of the United
States not serving on the panel and entities in private in-
dustry and representatives of federal labor organizations
not represented on the panel.
(d) INFORMATION FROM AGENCIES.—The panel may
secure directly from any department or agency of the
United States any information that the panel considers nec-
essary to carry out a meaningful study of administration
of the rules described in subsection (a), including the Office
of Management and Budget Circular A–76 process. Upon
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the request of the Chairman of the panel, the head of such
department or agency shall furnish the requested informa-
tion to the panel.
(e) REPORT.—The Comptroller General shall submit
a report on the results of the study to Congress.
(f) DEFINITION.—In this section, the term ‘‘federal
labor organization’’ has the meaning given the term ‘‘labor
organization’’ in section 7103(a)(4) of title 5, United States
Code.
SEC. 818. PROCUREMENT NOTICE THROUGH ELECTRONIC
ACCESS TO CONTRACTING OPPORTUNITIES.
(a) PUBLICATION BY ELECTRONIC ACCESSIBILITY.—
Subsection (a) of section 18 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 416) is amended—
(1) in paragraph (1)(A), by striking ‘‘furnish for
publication by the Secretary of Commerce’’ and in-
serting ‘‘publish’’;
(2) by striking paragraph (2) and inserting the
following:
‘‘(2)(A) A notice of solicitation required to be published
under paragraph (1) may be published by means of—
‘‘(i) electronic accessibility that meets the re-
quirements of paragraph (7); or
‘‘(ii) publication in the Commerce Business
Daily.
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‘‘(B) The Secretary of Commerce shall promptly pub-
lish in the Commerce Business Daily each notice or an-
nouncement received under this subsection for publication
by that means.’’; and
(3) by adding at the end the following:
‘‘(7) A publication of a notice of solicitation by means
of electronic accessibility meets the requirements of this
paragraph for electronic accessibility if the notice is elec-
tronically accessible in a form that allows convenient and
universal user access through the single Government-wide
point of entry designated in the Federal Acquisition Regu-
lation.’’.
(b) WAITING PERIOD FOR ISSUANCE OF SOLICITA-
TION.—Paragraph (3) of such subsection is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘‘furnish a notice to the Secretary of Com-
merce’’ and inserting ‘‘publish a notice of solicita-
tion’’; and
(2) in subparagraph (A), by striking ‘‘by the
Secretary of Commerce’’.
(c) CONFORMING AMENDMENTS FOR SMALL BUSINESS
ACT.—Subsection (e) of section 8 of the Small Business Act
(15 U.S.C. 637) is amended—
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(1) in paragraph (1)(A), by striking ‘‘furnish for
publication by the Secretary of Commerce’’ and in-
serting ‘‘publish’’;
(2) by striking paragraph (2) and inserting the
following:
‘‘(2)(A) A notice of solicitation required to be published
under paragraph (1) may be published by means of—
‘‘(i) electronic accessibility that meets the re-
quirements of section 18(a)(7) of the Office of Federal
Procurement Policy Act (41 U.S.C. 416(a)(7)); or
‘‘(ii) publication in the Commerce Business
Daily.
‘‘(B) The Secretary of Commerce shall promptly pub-
lish in the Commerce Business Daily each notice or an-
nouncement received under this subsection for publication
by that means.’’; and
(3) in paragraph (3)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘furnish a notice to the Sec-
retary of Commerce’’ and inserting ‘‘publish a
notice of solicitation’’; and
(B) in subparagraph (A), by striking ‘‘by
the Secretary of Commerce’’.
(d) PERIODIC REPORTS
ON IMPLEMENTATION
OF
ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.—
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Section 30(e) of the Office of Federal Procurement Policy
Act (41 U.S.C. 426(e)) is amended—
(1) in the first sentence, by striking ‘‘Not later
than March 1, 1998, and every year afterward
through 2003’’ and inserting ‘‘Not later than March
1 of each even-numbered year through 2004’’; and
(2) in paragraph (4)—
(A) by striking ‘‘Beginning with the report
submitted on March 1, 1999,’’; and
(B) by striking ‘‘calendar year’’ and insert-
ing ‘‘two fiscal years’’.
(e) EFFECTIVE DATE AND APPLICABILITY.—This sec-
tion and the amendments made by this section shall take
effect on October 1, 2000. The amendments made by sub-
sections (a), (b) and (c) shall apply with respect to solicita-
tions issued on or after that date.
TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND
MANAGEMENT
SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT
OF 
DEFENSE 
HEADQUARTERS 
ACTIVITIES
PERSONNEL.
(a) REPEAL OF LIMITATION.—(1) Section 130a of title
10, United States Code, is repealed.
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(2) The table of sections at the beginning of chapter
3 of such title is amended by striking the item relating to
section 130a.
(b) REPEAL OF ASSOCIATED REPORTING REQUIRE-
MENT.—Section 921(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113
Stat. 723) is repealed.
SEC. 902. OVERALL SUPERVISION OF DEPARTMENT OF DE-
FENSE ACTIVITIES FOR COMBATING TER-
RORISM.
Section 138(b)(4) of title 10, United States Code, is
amended to read as follows:
‘‘(4)(A) One of the Assistant Secretaries shall be the
Assistant Secretary of Defense for Special Operations and
Low Intensity Conflict.
‘‘(B) The Assistant Secretary shall have the following
duties:
‘‘(i) As the principal duty, to provide overall su-
pervision (including oversight of policy and resources)
of special operations activities (as defined in section
167(j) of this title) and low intensity conflict activi-
ties of the Department of Defense.
‘‘(ii) To provide overall direction and super-
vision for policy, program planning and execution,
and allocation and use of resources for the activities
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of the Department of Defense for combating terrorism,
including antiterrorism activities, counterterrorism
activities, terrorism consequences management activi-
ties, and terrorism-related intelligence support activi-
ties.
‘‘(C) The Assistant Secretary is the principal civilian
adviser to the Secretary of Defense on, and is the principal
official within the senior management of the Department
of Defense (after the Secretary and Deputy Secretary) re-
sponsible for, the following matters:
‘‘(i) Special operations and low intensity con-
flict.
‘‘(ii) Combating terrorism.’’.
SEC. 903. NATIONAL DEFENSE PANEL 2001.
(a) ESTABLISHMENT.—Not later than March 1, 2001,
the Secretary of Defense shall establish a nonpartisan, inde-
pendent panel to be known as the National Defense Panel
2001. The Panel shall have the duties set forth in this sec-
tion.
(b) MEMBERSHIP
AND CHAIRMAN.—(1) The Panel
shall be composed of nine members appointed from among
persons in the private sector who are recognized experts in
matters relating to the national security of the United
States, as follows:
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(A) Three members appointed by the Secretary of
Defense.
(B) Three members appointed by the Chairman
of the Committee on Armed Services of the Senate, in
consultation with the ranking member of the com-
mittee.
(C) Three members appointed by the Chairman
of the Committee on Armed Services of the House of
Representatives, in consultation with the ranking
member of the committee.
(2) The Secretary of Defense, in consultation with the
chairmen and ranking members of the Committees on
Armed Services of the Senate and the House of Representa-
tives, shall designate one of the members to serve as the
chairman of the Panel.
(c) DUTIES.—(1) The Panel shall—
(A) assess the matters referred to in paragraph
(2);
(B) assess the current and projected strategic en-
vironment, together with the progress made by the
Armed Forces in transforming to meet that environ-
ment;
(C) identify the most dangerous threats to the
national security interests of the United States that
are to be countered by the United States in the ensu-
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ing 10 years and those that are to be encountered in
the ensuing 20 years;
(D) identify the strategic and operational chal-
lenges for the Armed Forces to address in order to
prepare to counter the threats identified under sub-
paragraph (C);
(E) develop—
(i) a recommendation on the priority that
should be accorded to each of the strategic and
operational challenges identified under subpara-
graph (D); and
(ii) a recommendation on the priority that
should be accorded to the development of each
joint capability needed to meet each such chal-
lenge; and
(F) identify the issues that the Panel rec-
ommends for assessment during the next quadrennial
review to be conducted under section 118 of title 10,
United States Code.
(2) The matters to be assessed under paragraph (1)(A)
are the defense strategy, force structure, force modernization
plans, infrastructure, budget plan, and other elements of the
defense program and policies established since the quadren-
nial defense review conducted in 1996.
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(3) The Panel shall conduct the assessments under
paragraph (1) with a view toward recommending—
(A) the most critical changes that should be
made to the defense strategy of the United States for
the ensuing 10 years and the most critical changes
that should be made to the defense strategy of the
United States for the ensuing 20 years; and
(B) any changes considered appropriate by the
Panel regarding the major weapon systems pro-
grammed for the force, including any alternatives to
those weapon systems.
(d) REPORT.—(1) The Panel shall submit to the Sec-
retary of Defense and to the Committees on Armed Services
of the Senate and the House of Representatives two reports
on the assessment, including a discussion of the Panel’s ac-
tivities, the findings and recommendations of the Panel,
and any recommendations for legislation that the Panel
considers appropriate, as follows:
(A) An interim report not later than July 1,
2001.
(B) A final report not later than December 1,
2001.
(2) Not later than December 15, 2001, the Secretary
shall transmit to the committees referred to in paragraph
(1) the Secretary’s comments on the final report submitted
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to the committees under subparagraph (B) of that para-
graph.
(e) INFORMATION FROM FEDERAL AGENCIES.—The
Panel may secure directly from the Department of Defense
and any of its components and from any other department
and agency of the United States such information as the
Panel considers necessary to carry out its duties under this
section. The head of the department or agency concerned
shall ensure that information requested by the Panel under
this subsection is promptly provided.
(f) PERSONNEL MATTERS.—(1) Each member of the
Panel shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for
level IV of the Executive Schedule under section 5315 of title
5, United States Code, for each day (including travel time)
during which the member is engaged in the performance
of the duties of the Panel.
(2) The members of the Panel shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance
of services for the Panel.
(3)(A) The chairman of the Panel may, without regard
to the civil service laws and regulations, appoint and termi-
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nate an executive director and a staff if the Panel deter-
mines that an executive director and staff are necessary in
order for the Panel to perform its duties effectively. The em-
ployment of an executive director shall be subject to con-
firmation by the Panel.
(B) The chairman may fix the compensation of the ex-
ecutive director without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United States
Code, relating to classification of positions and General
Schedule pay rates, except that the rate of pay for the execu-
tive director may not exceed the rate payable for level V
of the Executive Schedule under section 5316 of such title.
(4) Any employee of the United States may be detailed
to the Panel without reimbursement of the employee’s agen-
cy, and such detail shall be without interruption or loss
of civil service status or privilege. The Secretary shall en-
sure that sufficient personnel are detailed to the Panel to
enable the Panel to carry out its duties effectively.
(5) To the maximum extent practicable, the members
and employees of the Panel shall travel on military aircraft,
military ships, military vehicles, or other military convey-
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-
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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 adminis-
trative 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-
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
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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 Committees on
Armed Services of the Senate and the House of Representa-
tives.
SEC. 904. QUADRENNIAL NATIONAL DEFENSE PANEL.
(a) NATIONAL DEFENSE PANEL.—(1) Chapter 7 of
title 10, United States Code, is amended by adding at the
end the following:
‘‘§ 184. National Defense Panel
‘‘(a) ESTABLISHMENT.—Not later than January 1 of
each year immediately preceding a year in which a Presi-
dent is to be inaugurated, the Secretary of Defense shall
establish a nonpartisan, independent panel to be known as
the National Defense Panel. The Panel shall have the duties
set forth in this section.
‘‘(b) MEMBERSHIP AND CHAIRMAN.—(1) The Panel
shall be composed of nine members appointed from among
persons in the private sector who are recognized experts in
matters relating to the national security of the United
States, as follows:
‘‘(A) Three members appointed by the Secretary
of Defense.
‘‘(B) Three members appointed by the Chairman
of the Committee on Armed Services of the Senate, in
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consultation with the ranking member of the com-
mittee.
‘‘(C) Three members appointed by the Chairman
of the Committee on Armed Services of the House of
Representatives, in consultation with the ranking
member of the committee.
‘‘(2) The Secretary of Defense, in consultation with the
chairmen and ranking members of the Committees on
Armed Services of the Senate and the House of Representa-
tives, shall designate one of the members to serve as the
chairman of the Panel
‘‘(c) DUTIES.—(1) The Panel shall—
‘‘(A) assess the matters referred to in paragraph
(2);
‘‘(B) assess the current and projected strategic
environment, together with the progress made by the
armed forces in transforming to meet the environ-
ment;
‘‘(C) identify the most dangerous threats to the
national security interests of the United States that
are to be countered by the United States in the ensu-
ing 10 years and those that are to be encountered in
the ensuing 20 years;
‘‘(D) identify the strategic and operational chal-
lenges for the armed forces to address in order to pre-
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pare to counter the threats identified under subpara-
graph (C);
‘‘(E) develop—
‘‘(i) a recommendation on the priority that
should be accorded to each of the strategic and
operational challenges identified under subpara-
graph (D); and
‘‘(ii) a recommendation on the priority that
should be accorded to the development of each
joint capability needed to meet each such chal-
lenge; and
‘‘(F) identify the issues that the Panel rec-
ommends for assessment during the next quadrennial
review to be conducted under section 118 of this title.
‘‘(2) The matters to be assessed under paragraph
(1)(A) are the defense strategy, force structure, force mod-
ernization plans, infrastructure, budget plan, and other ele-
ments of the defense program and policies established since
the previous quadrennial defense review under section 118
of this title.
‘‘(3) The Panel shall conduct the assessments under
paragraph (1) with a view toward recommending—
‘‘(A) the most critical changes that should be
made to the defense strategy of the United States for
the ensuing 10 years and the most critical changes
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that should be made to the defense strategy of the
United States for the ensuing 20 years; and
‘‘(B) any changes considered appropriate by the
Panel regarding the major weapon systems pro-
grammed for the force, including any alternatives to
those weapon systems.
‘‘(d) REPORT.—(1) The Panel, in the year that it is
conducting an assessment under subsection (c), shall submit
to the Secretary of Defense and to the Committees on Armed
Services of the Senate and the House of Representatives two
reports on the assessment, including a discussion of the
Panel’s activities, the findings and recommendations of the
Panel, and any recommendations for legislation that the
Panel considers appropriate, as follows:
‘‘(A) An interim report not later than July 1 of
the year.
‘‘(B) A final report not later than December 1
of the year.
‘‘(2) Not later than December 15 of the year in which
the Secretary receives a final report under paragraph
(1)(B), the Secretary shall submit to the committees referred
to in paragraph (1) the Secretary’s comments on that re-
port.
‘‘(e) INFORMATION FROM FEDERAL AGENCIES.—The
Panel may secure directly from the Department of Defense
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and any of its components and from any other department
or agency of the United States any information that the
Panel considers necessary to carry out its duties under this
section. The head of that department or agency shall ensure
that information requested by the Panel under this sub-
section is promptly provided.
‘‘(f) PERSONNEL MATTERS.—(1) Each member of the
Panel shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for
level IV of the Executive Schedule under section 5315 of title
5 for each day (including travel time) during which the
member is engaged in the performance of the duties of the
Panel.
‘‘(2) The members of the Panel shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5 while away from their homes or regular
places of business in the performance of services for the
Panel.
‘‘(3)(A) The chairman of the Panel may, without re-
gard to the civil service laws and regulations, appoint and
terminate an executive director and a staff if the Panel de-
termines that an executive director and staff are necessary
in order for the Panel to perform its duties effectively. The
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employment of an executive director shall be subject to con-
firmation by the Panel.
‘‘(B) The chairman may fix the compensation of the
executive director without regard to the provisions of chap-
ter 51 and subchapter III of chapter 53 of title 5 relating
to classification of positions and General Schedule pay
rates, except that the rate of pay for the executive director
may not exceed the rate payable for level V of the Executive
Schedule under section 5316 of such title.
‘‘(4) Any Federal Government employee may be de-
tailed to the Panel without reimbursement of the employee’s
agency, and such detail shall be without interruption or loss
of civil service status or privilege. The Secretary shall en-
sure that sufficient personnel are detailed to the Panel to
enable the Panel to carry out its duties effectively.
‘‘(5) To the maximum extent practicable, the members
and employees of the Panel shall travel on military aircraft,
military ships, military vehicles, or other military convey-
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
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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-
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 Committees on
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Armed Services of the Senate and the House of Representa-
tives.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘184. National Defense Panel.’’.
(b) FIRST PANEL TO BE ESTABLISHED IN 2004.—The
first National Defense Panel under section 184 of title 10,
United States Code (as added by subsection (a)), shall be
established in 2004.
SEC. 905. INSPECTOR GENERAL INVESTIGATIONS OF PRO-
HIBITED PERSONNEL ACTIONS.
(a) STANDARDS AND PROCEDURES FOR PRELIMINARY
DETERMINATIONS.—Subsection (c)(3)(A) of section 1034 of
title 10, United States Code, is amended by inserting ‘‘,
in accordance with regulations prescribed under subsection
(h),’’ after ‘‘shall expeditiously determine’’.
(b) DEFINITION OF INSPECTOR GENERAL.—Subsection
(i)(2) of such section is amended by adding at the end the
following:
‘‘(H) An officer of the armed forces or em-
ployee of the Department of Defense, not referred
to in any other subparagraph of this paragraph,
who is assigned or detailed to serve as an Inspec-
tor General at any level in the Department of
Defense.’’.
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SEC. 906. NETWORK CENTRIC WARFARE.
(a) GOAL.—It shall be a goal of the Department of De-
fense to fully coordinate the network centric warfare efforts
being pursued by the Joint Chiefs of Staff, the Defense
Agencies, and the military departments so that (1) the con-
cepts, procedures, training, and technology development re-
sulting from those efforts lead to an integrated information
network, and (2) a coherent concept for enabling informa-
tion dominance in joint military operations can be formu-
lated.
(b) REPORT ON IMPLEMENTATION OF NETWORK CEN-
TRIC WARFARE PRINCIPLES.—(1) The Secretary of Defense,
in consultation with the Chairman of the Joint Chiefs of
Staff, shall submit to the congressional defense committees
a report on the development and implementation of network
centric warfare concepts in the Department of Defense.
(2) The report shall contain the following:
(A) A clear definition and terminology to de-
scribe the set of operational concepts referred to as
network centric warfare.
(B) An identification and description of current,
planned, and needed activities by the Office of the
Secretary of Defense, the Joint Chiefs of Staff, and the
United States Joint Forces Command to coordinate
the development of doctrine and the definition of re-
quirements and to ensure that those activities are con-
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sistent with the concepts of network centric warfare
and information superiority that are articulated in
Joint Vision 2010 issued by the Joint Chiefs of Staff.
(C) Recommended metrics, and a process for ap-
plying and reporting such metrics, to assist the Sec-
retary of Defense and the Chairman of the Joint
Chiefs of Staff in the evaluation of the progress being
made toward—
(i) the implementation of the concepts of
network centric warfare and information superi-
ority that are articulated in Joint Vision 2010;
and
(ii) the attainment of a fully integrated,
joint command, control, communications, com-
puters, intelligence, surveillance, and reconnais-
sance capability.
(D) A recommended joint concept development
and experimentation campaign for enabling the co-
evolution of doctrine, organization, training, materiel,
leadership, people, and facilities that are pertinent to
achieving advances in command and control con-
sistent with the concepts of network centric warfare
and information superiority articulated in those vi-
sion statements.
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(E) A description of the programs and initia-
tives underway, together with a discussion of the
progress made (as determined using metrics rec-
ommended under subparagraph (C)) toward—
(i) establishing a foundation for networking
the sensors, combat personnel and weapon sys-
tems, and decisionmaking nodes to ensure that
there is seamless communication within each of
the Armed Forces and across the Armed Forces;
(ii) achieving, within and between the
Armed Forces, full situational awareness of the
dispositions of friendly forces so that joint task
forces can operate effectively on fast-changing
battlefields with substantially reduced risk of
fratricide and less restrictive control measures;
and
(iii) ensuring a seamless delivery of fire on
targets by the Armed Forces and allied forces,
with particular attention being given in that
discussion to how networking of surface and aer-
ial fire delivery and aerial transport assets can
be exploited to manage theater airspace so as to
minimize the coordination steps necessary for ob-
taining fire clearance or aerial transit clearance.
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(F) An identification of the additional powers
that must be provided the officials making joint pol-
icy for the Armed Forces in order to ensure that those
officials have sufficient authority quickly to develop
and implement means for supporting network centric
warfare, including such means as interoperable
intranets of the Armed Forces and joint and allied
interoperability standards for the joint operating en-
vironment.
(G) The areas of joint authority that require
greater emphasis or resource allocation.
(H) The specific organizational entities that can
provide coordination for the development of network
centric warfare systems and doctrine.
(I) The joint requirements under development
that will lead to the acquisition of technologies for en-
abling the implementation and support of network
centric warfare, together with—
(i) a description of how the joint require-
ments are modifying existing requirements and
vision statements of each of the Armed Forces to
better reflect the joint nature of network centric
warfare;
(ii) a description of how the vision state-
ments are being expanded to reflect the role of
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network centric warfare concepts in future coali-
tion operations and operations other than war;
and
(iii) an evaluation of whether there is a
need to modify the milestone decision processes
for all acquisition programs that directly affect
joint task force interoperability and interoper-
ability between the Armed Forces.
(J) A discussion of how the efforts within the De-
partment of Defense to implement information supe-
riority concepts described in Joint Vision 2010 are
informed by private sector investments, and successes
and failures, in implementing networking technologies
that enhance distribution, inventory control, mainte-
nance management, personnel management, knowl-
edge management, technology development, and other
relevant business areas.
(K) A discussion of how Department of Defense
activities to establish a joint network centric
capability—
(i) are coordinated with the Intelligence
Community, the Department of Commerce, the
Department of Justice, the Federal Emergency
Management Agency, and other departments and
agencies of the United States; and
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(ii) are carried out in accordance with
Presidential Decision Directive 63 and the Na-
tional Plan for Information Systems Protection.
(c) STUDY ON USE OF JOINT EXPERIMENTATION FOR
DEVELOPING NETWORK CENTRIC WARFARE CONCEPTS.—
(1) The Secretary of Defense shall conduct a study on the
present and future use of the joint experimentation program
of the Department of Defense in the development of network
centric warfare concepts.
(2) The Secretary shall submit to the congressional de-
fense committees a report on the results of the study. The
report shall include the following:
(A) A survey and description of how experimen-
tation under the joint experimentation program and
experimentation under the experimentation program
of each of the Armed Forces are being used for evalu-
ating emerging concepts in network centric warfare.
(B) Recommended means and mechanisms for
using the results of the joint experimentation for de-
veloping new joint requirements, new joint doctrine,
and new acquisition programs of the military depart-
ments and Defense Agencies with a view to achieving
the objective of supporting network centric operations.
(C) Recommendations on future joint experimen-
tation to validate and accelerate the use of network
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centric warfare concepts in operations involving coa-
lition forces.
(D) Recommendations on how joint experimen-
tation can be used to identify impediments to—
(i) the development of a joint information
network; and
(ii) 
the 
seamless 
coordination 
of 
the
intranet systems of each of the Armed Forces in
operational environments.
(E) Recommendations on how joint experimen-
tation can be used to develop concepts in revolu-
tionary force redesign to leverage new operational
concepts in network centric warfare.
(F) The levels of appropriations necessary for
joint experimentation on network-related concepts.
(3) The Secretary of Defense, acting through the Chair-
man of the Joint Chiefs of Staff, shall designate the Com-
mander in Chief of the United States Joint Forces Com-
mand to carry out the study and to prepare the report re-
quired under this subsection.
(d) REPORT
ON SCIENCE
AND TECHNOLOGY PRO-
GRAMS TO SUPPORT NETWORK CENTRIC WARFARE CON-
CEPTS.—(1) The Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics shall submit to the congres-
sional defense committees a report describing the coordina-
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tion of the science and technology investments of the mili-
tary departments and Defense Agencies in the development
of future joint network centric warfare capabilities. The
Under Secretary shall consult with the Chairman of the
Joint Chiefs of Staff in the preparation of the report.
(2) The report shall include the following:
(A) A discussion of the science and technology
investments in the following areas:
(i) Sensors, including ground-based, air-
based, sea-based, and space-based inhabited and
uninhabited systems.
(ii) Seamless communications and net-
working protocols and technologies.
(iii) Modeling and simulation of tech-
nologies and operational concepts.
(iv) Secure and reliable information net-
works and databases.
(v) Computing and software technology.
(vi) Robust human-machine interfaces.
(vii) Novel training concepts for supporting
network centric operations.
(B) For the areas listed in subparagraph (A)—
(i) a rationalization of the rapid pace of
technological change and the influence of global
developments in commercial technology; and
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(ii) an explanation of how that rationaliza-
tion is informing and modifying science and
technology investments made by the Department
of Defense.
(e) TIME FOR SUBMISSION OF REPORTS.—Each report
required under this section shall be submitted not later than
March 1, 2001.
SEC. 907. ADDITIONAL DUTIES FOR THE COMMISSION TO
ASSESS UNITED STATES NATIONAL SECURITY
SPACE MANAGEMENT AND ORGANIZATION.
Section 1622(a) of the National Defense Authorization
Act for Fiscal Year 2000 (Public Law 106–65; 113 Stat.
814; 10 U.S.C. 111 note) is amended by adding at the end
the following:
‘‘(6) The advisability of—
‘‘(A) various actions to eliminate the re-
quirement for specified officers in the United
States Space Command to be flight rated that re-
sults from the dual assignment of such officers to
that command and to one or more other com-
mands for which the officers are expressly re-
quired to be flight rated;
‘‘(B) the establishment of a requirement
that all new general or flag officers of the United
States Space Command have experience in space,
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missile, or information operations that is either
acquisition experience or operational experience;
and
‘‘(C) rotating the command of the United
States Space Command among the Armed
Forces.’’.
SEC. 908. SPECIAL AUTHORITY FOR ADMINISTRATION OF
NAVY FISHER HOUSES.
(a) BASE OPERATING SUPPORT.—Section 2493 of title
10, United States Code, is amended—
(1) by redesignating subsection (f) as subsection
(g); and
(2) by inserting after subsection (e) the following
new subsection (f):
‘‘(f) SPECIAL AUTHORITY FOR NAVY.—The Secretary
of the Navy shall provide base operating support for Fisher
Houses associated with health care facilities of the Navy.
The level of the support shall be equivalent to the base oper-
ating support that the Secretary provides for morale, wel-
fare, and recreation category B community activities (as
defined in regulations, prescribed by the Secretary, that
govern morale, welfare, and recreation activities associated
with Navy installations).’’.
(b) SAVINGS PROVISIONS FOR CERTAIN NAVY EMPLOY-
EES.—(1) The Secretary of the Navy may continue to em-
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ploy, and pay out of appropriated funds, any employee of
the Navy in the competitive service who, as of October 17,
1998, was employed by the Navy in a position at a Fisher
House administered by the Navy, but only for so long as
the employee is continuously employed in that position.
(2) After a person vacates a position in which the per-
son was continued to be employed under the authority of
paragraph (1), a person employed in that position shall
be employed as an employee of a nonappropriated fund in-
strumentality of the United States and may not be paid
for services in that position out of appropriated funds.
(3) In this subsection:
(A) The term ‘‘Fisher House’’ has the meaning
given the term in section 2493(a)(1) of title 10,
United States Code.
(B) The term ‘‘competitive service’’ has the
meaning given the term in section 2102 of title 5,
United States Code.
(c) EFFECTIVE DATE.—(1) The amendments made by
subsection (a) shall be effective as of October 17, 1998, as
if included in section 2493 of title 10, United States Code,
as enacted by section 906(a) of Public Law 105–261.
(2) Subsection (b) applies with respect to the pay pe-
riod that includes October 17, 1998, and subsequent pay
periods.
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SEC. 909. ORGANIZATION AND MANAGEMENT OF THE CIVIL
AIR PATROL.
(a) IN GENERAL.—Chapter 909 of title 10, United
States Code, is amended to read as follow:
‘‘CHAPTER 909—CIVIL AIR
PATROL
‘‘Sec.
‘‘9441.
Status as federally chartered corporation; purposes.
‘‘9442.
Status as volunteer civilian auxiliary of the Air Force.
‘‘9443.
Activities not performed as auxiliary of the Air Force.
‘‘9444.
Activities performed as auxiliary of the Air Force.
‘‘9445.
Funds appropriated for the Civil Air Patrol.
‘‘9446.
Miscellaneous personnel authorities.
‘‘9447.
Board of Governors.
‘‘9448.
Regulations.
‘‘§ 9441. Status as federally chartered corporation;
purposes
‘‘(a) STATUS.—(1) The Civil Air Patrol is a nonprofit
corporation that is federally chartered under section 40301
of title 36.
‘‘(2) Except as provided in section 9442(b)(2) of this
title, the Civil Air Patrol is not an instrumentality of the
Federal Government for any purpose.
‘‘(b) PURPOSES.—The purposes of the Civil Air Patrol
are set forth in section 40302 of title 36.
‘‘§ 9442. Status as volunteer civilian auxiliary of the
Air Force
‘‘(a) VOLUNTEER CIVILIAN AUXILIARY.—The Civil Air
Patrol is a volunteer civilian auxiliary of the Air Force
when the services of the Civil Air Patrol are used by any
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department or agency in any branch of the Federal Govern-
ment.
‘‘(b) USE BY AIR FORCE.—(1) The Secretary of the
Air Force may use the services of the Civil Air Patrol to
fulfill the noncombat programs and missions of the Depart-
ment of the Air Force.
‘‘(2) The Civil Air Patrol shall be deemed to be an
instrumentality of the United States with respect to any
act or omission of the Civil Air Patrol, including any mem-
ber of the Civil Air Patrol, in carrying out a mission as-
signed by the Secretary of the Air Force.
‘‘§ 9443. Activities not performed as auxiliary of the
Air Force
‘‘(a) SUPPORT
FOR STATE
AND LOCAL AUTHORI-
TIES.—The Civil Air Patrol may, in its status as a feder-
ally chartered nonprofit corporation and not as an auxil-
iary of the Air Force, provide assistance requested by State
or local governmental authorities to perform disaster relief
missions and activities, other emergency missions and ac-
tivities, and nonemergency missions and activities. Mis-
sions and activities carried out under this section shall be
consistent with the purposes of the Civil Air Patrol.
‘‘(b) USE OF FEDERALLY PROVIDED RESOURCES.—(1)
To perform any mission or activity authorized under sub-
section (a), the Civil Air Patrol may use any equipment,
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supplies, and other resources provided to it by the Air Force
or by any other department or agency of the Federal Gov-
ernment or acquired by or for the Civil Air Patrol with
appropriated funds, without regard to whether the Civil Air
Patrol has reimbursed the Federal Government source for
the equipment, supplies, other resources, or funds, as the
case may be.
‘‘(2) The use of equipment, supplies, or other resources
under paragraph (1) is subject to—
‘‘(A) the terms and conditions of the applicable
agreement entered into under chapter 63 of title 31;
and
‘‘(B) the laws and regulations that govern the
use by nonprofit corporations of federally provided
assets or of assets purchased with appropriated funds,
as the case may be.
‘‘(c) AUTHORITY NOT CONTINGENT ON REIMBURSE-
MENT.—The authority for the Civil Air Patrol to provide
assistance under this section is not contingent on the Civil
Air Patrol being reimbursed for the cost of providing the
assistance. If the Civil Air Patrol requires reimbursement
for the provision of any such assistance, the Civil Air Patrol
may establish the reimbursement rate for the assistance at
a rate less than the rate charged by private sector sources
for equivalent services.
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‘‘(d) LIABILITY INSURANCE.—The Secretary of the Air
Force may provide the Civil Air Patrol with funds for pay-
ing the cost of liability insurance for missions and activities
carried out under this section.
‘‘§ 9444. Activities performed as auxiliary of the Air
Force
‘‘(a) AIR FORCE SUPPORT FOR ACTIVITIES.—The Sec-
retary of the Air Force may furnish to the Civil Air Patrol
in accordance with this section any equipment, supplies,
and other resources that the Secretary determines necessary
to enable the Civil Air Patrol to fulfill the missions assigned
by the Secretary to the Civil Air Patrol as an auxiliary
of the Air Force.
‘‘(b) FORMS OF AIR FORCE SUPPORT.—The Secretary
of the Air Force may, under subsection (a)—
‘‘(1) give, lend, or sell to the Civil Air Patrol
without regard to the Federal Property and Adminis-
trative Services Act of 1949 (40 U.S.C. 471 et seq.)—
‘‘(A) major items of equipment (including
aircraft, motor vehicles, computers, and commu-
nications equipment) that are excess to the mili-
tary departments; and
‘‘(B) necessary related supplies and train-
ing aids that are excess to the military depart-
ments;
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‘‘(2) permit the use, with or without charge, of
services and facilities of the Air Force;
‘‘(3) furnish supplies (including fuel, lubricants,
and other items required for vehicle and aircraft oper-
ations) or provide funds for the acquisition of sup-
plies;
‘‘(4) establish, maintain, and supply liaison offi-
cers of the Air Force at the national, regional, State,
and territorial headquarters of the Civil Air Patrol;
‘‘(5) detail or assign any member of the Air
Force or any officer, employee, or contractor of the
Department of the Air Force to any liaison office at
the national, regional, State, or territorial head-
quarters of the Civil Air Patrol;
‘‘(6) detail any member of the Air Force or any
officer, employee, or contractor of the Department of
the Air Force to any unit or installation of the Civil
Air Patrol to assist in the training programs of the
Civil Air Patrol;
‘‘(7) authorize the payment of travel expenses
and allowances, at rates not to exceed those paid to
employees of the Federal Government under sub-
chapter I of chapter 57 of title 5, to members of the
Civil Air Patrol while the members are carrying out
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programs or missions specifically assigned by the Air
Force;
‘‘(8) provide funds for the national headquarters
of the Civil Air Patrol, including—
‘‘(A) funds for the payment of staff com-
pensation and benefits, administrative expenses,
travel, per diem and allowances, rent, utilities,
other operational expenses of the national head-
quarters; and
‘‘(B) to the extent considered necessary by
the Secretary of the Air Force to fulfill Air Force
requirements, funds for the payment of com-
pensation and benefits for key staff at regional,
State, or territorial headquarters;
‘‘(9) authorize the payment of expenses of plac-
ing into serviceable condition, improving, and main-
taining equipment (including aircraft, motor vehicles,
computers, and communications equipment) owned or
leased by the Civil Air Patrol;
‘‘(10) provide funds for the lease or purchase of
items of equipment that the Secretary determines nec-
essary for the Civil Air Patrol;
‘‘(11) support the Civil Air Patrol cadet pro-
gram by furnishing—
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‘‘(A) articles of the Air Force uniform to ca-
dets without cost; and
‘‘(B) any other support that the Secretary
of the Air Force determines is consistent with
Air Force missions and objectives; and
‘‘(12) provide support, including appropriated
funds, for the Civil Air Patrol aerospace education
program to the extent that the Secretary of the Air
Force determines appropriate for furthering the ful-
fillment of Air Force missions and objectives.
‘‘(c) ASSISTANCE BY OTHER AGENCIES.—(1) The Sec-
retary of the Air Force may arrange for the use by the Civil
Air Patrol of such facilities and services under the jurisdic-
tion of the Secretary of the Army, the Secretary of the Navy,
or the head of any other department or agency of the United
States as the Secretary of the Air Force considers to be need-
ed by the Civil Air Patrol to carry out its mission.
‘‘(2) An arrangement for use of facilities or services
of a military department or other department or agency
under this subsection shall be subject to the agreement of
the Secretary of the military department or head of the
other department or agency, as the case may be.
‘‘(3) Each arrangement under this subsection shall be
made in accordance with regulations prescribed under sec-
tion 9448 of this title.
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‘‘§ 9445. Funds appropriated for the Civil Air Patrol
‘‘Funds appropriated for the Civil Air Patrol shall be
available only for the exclusive use of the Civil Air Patrol.
‘‘§ 9446. Miscellaneous personnel authorities
‘‘(a) USE OF RETIRED AIR FORCE PERSONNEL.—(1)
Upon the request of a person retired from service in the
Air Force, the Secretary of the Air Force may enter into
a personal services contract with that person providing for
the person to serve as an administrator or liaison officer
for the Civil Air Patrol. The qualifications of a person to
provide the services shall be determined and approved in
accordance with regulations prescribed under section 9448
of this title.
‘‘(2) To the extent provided in a contract under para-
graph (1), a person providing services under the contract
may accept services on behalf of the Air Force.
‘‘(3) A person, while providing services under a con-
tract authorized under paragraph (1), may not be consid-
ered to be on active duty or inactive-duty training for any
purpose.
‘‘(b) USE OF CIVIL AIR PATROL CHAPLAINS.—The
Secretary of the Air Force may use the services of Civil Air
Patrol chaplains in support of the Air Force active duty
and reserve component forces to the extent and under condi-
tions that the Secretary determines appropriate.
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‘‘§ 9447. Board of Governors
‘‘(a) GOVERNING BODY.—The Board of Governors of
the Civil Air Patrol is the governing body of the Civil Air
Patrol.
‘‘(b) COMPOSITION.—The Board of Governors is com-
posed of 13 members as follows:
‘‘(1) Four members appointed by the Secretary
of the Air Force, who may be active or retired officers
of the Air Force (including reserve components of the
Air Force), employees of the Federal Government, or
private citizens.
‘‘(2) Four members of the Civil Air Patrol, elect-
ed from among the members of the Civil Air Patrol
in the manner provided in regulations prescribed
under section 9448 of this title.
‘‘(3) Three members appointed or selected as pro-
vided in subsection (c) from among personnel of any
Federal Government agencies, public corporations,
nonprofit associations, and other organizations that
have an interest and expertise in civil aviation and
the Civil Air Patrol mission.
‘‘(4) One member appointed by the Majority
Leader of the Senate.
‘‘(5) One member appointed by the Speaker of
the House of Representatives.
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‘‘(c) APPOINTMENTS FROM INTERESTED ORGANIZA-
TIONS.—(1) Subject to paragraph (2), the members of the
Board of Governors referred to in subsection (b)(3) shall
be appointed jointly by the Secretary of the Air Force and
the National Commander of the Civil Air Patrol.
‘‘(2) Any vacancy in the position of a member referred
to in paragraph (1) that is not filled under that paragraph
within 90 days shall be filled by majority vote of the other
members of the Board.
‘‘(d) CHAIRPERSON.—(1) The Chairperson of the
Board of Governors shall be chosen by the members of the
Board of Governors from among the members of the Board
eligible for selection under paragraph (2) and shall serve
for a term of two years.
‘‘(2) The position of Chairperson shall be held on a
rotating basis, first by a member of the Board selected from
among those appointed by the Secretary of the Air Force
under paragraph (1) of subsection (b) and then by a mem-
ber of the Board selected from among the members elected
by the Civil Air Patrol under paragraph (2) of that sub-
section. Upon the expiration of the term of a Chairperson
selected from among the members referred to in one of those
paragraphs, the selection of a successor to that position shall
be made from among the members who are referred to in
the other paragraph.
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‘‘(e) POWERS.—(1) The Board of Governors shall, sub-
ject to paragraphs (2) and (3), exercise the powers granted
under section 40304 of title 36.
‘‘(2) Any exercise by the Board of the power to amend
the constitution or bylaws of the Civil Air Patrol or to
adopt a new constitution or bylaws shall be subject to the
approval of the corporate officers of the Civil Air Patrol,
as those officers are defined in the constitution and bylaws
of the Civil Air Patrol.
‘‘(3) Neither the Board of Governors nor any other
component of the Civil Air Patrol may modify or terminate
any requirement or authority set forth in this section.
‘‘(f) PERSONAL LIABILITY FOR BREACH OF A FIDU-
CIARY DUTY.—(1) The Board of Governors may, subject to
paragraph (2), take such action as is necessary to limit the
personal liability of a member of the Board of Governors
to the Civil Air Patrol or to any of its members for mone-
tary damages for a breach of fiduciary duty while serving
as a member of the Board.
‘‘(2) The Board may not limit the liability of a mem-
ber of the Board of Governors to the Civil Air Patrol or
to any of its members for monetary damages for any of
the following:
‘‘(A) A breach of the member’s duty of loyalty to
the Civil Air Patrol or its members.
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‘‘(B) Any act or omission that is not in good
faith or that involves intentional misconduct or a
knowing violation of law.
‘‘(C) Participation in any transaction from
which the member directly or indirectly derives an
improper personal benefit.
‘‘(3) Nothing in this subsection shall be construed as
rendering section 207 or 208 of title 18 inapplicable in any
respect to a member of the Board of Governors who is a
member of the Air Force on active duty, an officer on a
retired list of the Air Force, or an employee of the Federal
Government.
‘‘(g) PERSONAL LIABILITY FOR BREACH OF A FIDU-
CIARY DUTY.—(1) Except as provided in paragraph (2),
no member of the Board of Governors or officer of the Civil
Air Patrol shall be personally liable for damages for any
injury or death or loss or damage of property resulting from
a tortious act or omission of an employee or member of the
Civil Air Patrol.
‘‘(2) Paragraph (1) does not apply to a member of the
Board of Governors or officer of the Civil Air Patrol for
a tortious act or omission in which the member or officer,
as the case may be, was personally involved, whether in
breach of a civil duty or in commission of a criminal of-
fense.
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‘‘(3) Nothing in this subsection shall be construed to
restrict the applicability of common law protections and
rights that a member of the Board of Governors or officer
of the Civil Air Patrol may have.
‘‘(4) The protections provided under this subsection are
in addition to the protections provided under subsection (f).
‘‘§ 9448. Regulations
‘‘(a) AUTHORITY.—The Secretary of the Air Force
shall prescribe regulations for the administration of this
chapter.
‘‘(b) REQUIRED REGULATIONS.—The regulations shall
include the following:
‘‘(1) Regulations governing the conduct of the ac-
tivities of the Civil Air Patrol when it is performing
its duties as a volunteer civilian auxiliary of the Air
Force under section 9442 of this title.
‘‘(2) Regulations for providing support by the
Air Force and for arranging assistance by other agen-
cies under section 9444 of this title.
‘‘(3) Regulations governing the qualifications of
retired Air Force personnel to serve as an adminis-
trator or liaison officer for the Civil Air Patrol under
a personal services contract entered into under section
9446(a) of this title.
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‘‘(4) Procedures and requirements for the election
of members of the Board of Governors under section
9447(b)(2) of this title.
‘‘(c) APPROVAL BY SECRETARY OF DEFENSE.—The
regulations required by subsection (b)(2) shall be subject to
the approval of the Secretary of Defense.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 40302 of
title 36, United States Code, is amended—
(A) by striking ‘‘to—’’ in the matter preceding
paragraph (1) and inserting ‘‘as follows:’’;
(B) by inserting ‘‘To’’ after the paragraph des-
ignation in each of paragraphs (1), (2), (3), and (4);
(C) by striking the semicolon at the end of para-
graphs (1)(B) and (2) and inserting a period;
(D) by striking ‘‘; and’’ at the end of paragraph
(3) and inserting a period; and
(E) by adding at the end the following:
‘‘(5) To assist the Department of the Air Force
in fulfilling its noncombat programs and missions.’’.
(2)(A) Section 40303 of such title is amended—
(i) by inserting ‘‘(a) MEMBERSHIP.—’’ before
‘‘Eligibility’’; and
(ii) by adding at the end the following:
‘‘(b) GOVERNING BODY.—The Civil Air Patrol has a
Board of Governors. The composition and responsibilities
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of the Board of Governors are set forth in section 9447 of
title 10.’’.
(B) The heading for such section is amended to read
as follows:
‘‘§ 40303. Membership and governing body’’.
(C) The item relating to such section in the table of
sections at the beginning of chapter 403 of title 36, United
States Code, is amended to read as follows:
‘‘40303. Membership and governing body.’’.
(c) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on January 1,
2001.
SEC. 910. RESPONSIBILITY FOR THE NATIONAL GUARD
CHALLENGE PROGRAM.
(a) SECRETARY OF DEFENSE.—Subsection (a) of sec-
tion 509 of title 32, United States Code, is amended by
striking ‘‘, acting through the Chief of the National Guard
Bureau,’’.
(b) CLARIFICATION OF SOURCE OF FEDERAL SUP-
PORT.—Subsection (b) of such section is amended by strik-
ing ‘‘Federal expenditures’’ and inserting ‘‘Department of
Defense expenditures’’.
(c) 
REGULATIONS.—Such 
section 
is 
further
amended—
(1) by redesignating subsection (l) and sub-
section (m); and
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(2) by inserting after subsection (k) the following
new subsection (l):
‘‘(l) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to carry out this section, including
regulations governing the following:
‘‘(1) Terms and conditions to be included in pro-
gram agreements under subsection (c).
‘‘(2) The eligibility requirements for participa-
tion under subsection (e).
‘‘(3) The benefits authorized for program partici-
pants under subsection (f).
‘‘(4) The status of National Guard personnel
providing services for the program under subsection
(g).
‘‘(5) The use of equipment and facilities of the
National Guard for the program under subsection (h).
‘‘(6) The status of program participants under
subsection (i).
‘‘(7) The procedures for communicating between
the Secretary of Defense and States regarding the pro-
gram.’’.
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SEC. 911. SUPERVISORY CONTROL OF ARMED FORCES RE-
TIREMENT HOME BOARD BY SECRETARY OF
DEFENSE.
(a) BOARD AUTHORITY SUBJECT
TO SECRETARY’S
CONTROL.—Section 1516(a) of the Armed Forces Retire-
ment Home Act of 1991 (Public Law 101–510; 24 U.S.C.
416(a)) is amended by inserting after the first sentence the
following: ‘‘The Board is subject to the authority, direction,
and control of the Secretary of Defense in the performance
of its responsibilities.’’.
(b) APPOINTMENT
AND TERMS
OF BOARD MEM-
BERS.—Section 1515 of such Act (24 U.S.C. 415) is
amended—
(1) in subsection (b), by adding at the end the
following:
‘‘An appointment not made by the Secretary of Defense is
subject to the approval of the Secretary of Defense.’’;
(2) in subsection (e)(3), by striking ‘‘Chairman
of the Retirement Home Board’’ and inserting ‘‘Sec-
retary of Defense’’; and
(3) in subsection (f), by striking ‘‘(f) EARLY EX-
PIRATION OF TERM.—’’ and inserting the following:
‘‘(f) EARLY TERMINATION.—(1) The Secretary of De-
fense may terminate the appointment of a member of the
Board at the pleasure of the Secretary.
‘‘(2)’’.
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(c) RESPONSIBILITY
OF CHAIRMAN
TO
THE SEC-
RETARY.—Section 1515(d)(1)(B) of such Act (24 U.S.C.
415(d)(1)(B)) is amended by striking ‘‘not be responsible
to the Secretary of Defense or to the Secretaries of the mili-
tary departments’’ and inserting ‘‘be responsible to the Sec-
retary of Defense, but not to the Secretaries of the military
departments,’’.
SEC. 912. CONSOLIDATION OF CERTAIN NAVY GIFT FUNDS.
(a) MERGER OF NAVAL HISTORICAL CENTER FUND
INTO DEPARTMENT OF THE NAVY GENERAL GIFT FUND.—
(1) The Secretary of the Navy shall transfer all amounts
in the Naval Historical Center Fund maintained under sec-
tion 7222 of title 10, United States Code, to the Department
of the Navy General Gift Fund maintained under section
2601 of such title. Upon completing the transfer, the Sec-
retary shall close the Naval Historical Center Fund.
(2) Amounts transferred to the Department of the
Navy General Gift Fund under this subsection shall be
merged with other amounts in that Fund and shall be avail-
able for the purposes for which amounts in that Fund are
available.
(b) CONSOLIDATION OF NAVAL ACADEMY GENERAL
GIFT FUND AND NAVAL ACADEMY MUSEUM FUND.—(1)
The Secretary of the Navy shall transfer all amounts in
the United States Naval Academy Museum Fund estab-
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lished by section 6974 of title 10, United States Code, to
the gift fund maintained for the benefit and use of the
United States Naval Academy under section 6973 of such
title. Upon completing the transfer, the Secretary shall close
the United States Naval Academy Museum Fund.
(2) Amounts transferred under this subsection shall be
merged with other amounts in the gift fund to which trans-
ferred and shall be available for the purposes for which
amounts in that gift fund are available.
(c) CONSOLIDATION AND REVISION OF AUTHORITIES
FOR ACCEPTANCE OF GIFTS, BEQUESTS, AND LOANS FOR
THE UNITED STATES NAVAL ACADEMY.—(1) Subsection (a)
of section 6973 of title 10, United States Code, is
amended—
(A) in the first sentence—
(i) by inserting ‘‘, and loans of personal
property other than money,’’ after ‘‘gifts and be-
quests of personal property’’; and
(ii) by inserting ‘‘or the Naval Academy
Museum, its collection, or its services’’ before the
period at the end;
(B) in the second sentence, by striking ‘‘ ‘United
States Naval Academy general gift fund’ ’’ and insert-
ing ‘‘ ‘United States Naval Academy Gift and Mu-
seum Fund’ ’’; and
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(C) in the third sentence, by inserting ‘‘(includ-
ing the Naval Academy Museum)’’ after ‘‘the Naval
Academy’’.
(2) Such section 6973 is further amended—
(A) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(B) by inserting after subsection (a) the fol-
lowing new subsection (b):
‘‘(b) The Secretary shall prescribe written guidelines
to be used for determinations of whether the acceptance of
money, any personal property, or any loan of personal
property under subsection (a) would reflect unfavorably on
the ability of the Department of the Navy or any officer
or employee of the Department of the Navy to carry out
responsibilities or duties in a fair and objective manner,
or would compromise either the integrity or the appearance
of the integrity of any program of the Department of the
Navy or any officer or employee of the Department of the
Navy who is involved in any such program.’’.
(3) Subsection (d) of such section, as redesignated by
paragraph (2)(A), is amended by striking ‘‘United States
Naval Academy general gift fund’’ both places it appears
and inserting ‘‘United States Naval Academy Gift and Mu-
seum Fund’’.
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(4) The heading for such section is amended to read
as follows:
‘‘§ 6973. Gifts, bequests, and loans of property: accept-
ance for benefit and use of Naval Acad-
emy’’.
(d) REFERENCES TO CLOSED GIFT FUNDS.—(1) Sec-
tion 6974 of title 10, United States Code, is amended to
read as follows:
‘‘§ 6974. United States Naval Academy Museum Fund:
references to Fund
‘‘Any reference in a law, regulation, document, paper,
or other record of the United States to the United States
Naval Academy Museum Fund formerly maintained under
this section shall be deemed to refer to the United States
Naval Academy Gift and Museum Fund maintained under
section 6973 of this title.’’.
(2) Section 7222 of such title is amended to read as
follows:
‘‘§ 7222. Naval Historical Center Fund: references to
Fund
‘‘Any reference in a law, regulation, document, paper,
or other record of the United States to the Naval Historical
Center Fund formerly maintained under this section shall
be deemed to refer to the Department of the Navy General
Gift Fund maintained under section 2601 of this title.’’.
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(e) CLERICAL AMENDMENTS.—(1) The table of sections
at the beginning of chapter 603 of title 10, United States
Code, is amended by striking the items relating to sections
6973 and 6974 and inserting the following:
‘‘6973. Gifts, bequests, and loans of property: acceptance for benefit and use of
Naval Academy.
‘‘6974. United States Naval Academy Museum Fund: references to Fund.’’.
(2) The item relating to section 7222 of such title in
the table of sections at the beginning of chapter 631 of such
title is amended to read as follows:
‘‘7222. Naval Historical Center Fund: references to Fund.’’.
SEC. 913. TEMPORARY AUTHORITY TO DISPOSE OF A GIFT
PREVIOUSLY ACCEPTED FOR THE NAVAL
ACADEMY.
Notwithstanding section 6973 of title 10, United States
Code, during fiscal year 2001, the Secretary of the Navy
may dispose of the current cash value of a gift accepted
before the date of the enactment of this Act for the Naval
Academy general gift fund by disbursing out of that fund
the amount equal to that cash value to an entity designated
by the donor of the gift.
SEC. 914. MANAGEMENT OF NAVY RESEARCH FUNDS BY
CHIEF OF NAVAL RESEARCH.
(a) CLARIFICATION OF DUTIES.—Section 5022 of title
10, United States Code, is amended—
(1) by redesignating subsections (c) and (d) as
subsections (d) and (e), respectively;
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(2) by inserting after paragraph (1) of sub-
section (a) the following:
‘‘(b)(1) The Chief of Naval Research is the head of the
Office of Naval Research.’’; and
(3) by inserting after subsection (b) the following
new subsection (c):
‘‘(c) CHIEF AS MANAGER OF RESEARCH FUNDS.—The
Chief of Naval Research shall manage the Navy’s basic, ap-
plied, and advanced research funds to foster transition from
science and technology to higher levels of research, develop-
ment, test, and evaluation.’’.
(b) CONFORMING AMENDMENT.—Subsection (a) of
such section is amended by striking ‘‘(a)(1)’’ and inserting
‘‘(a)’’.
SEC. 915. UNITED STATES AIR FORCE INSTITUTE OF TECH-
NOLOGY.
(a) AUTHORITY.—(1) Part III of subtitle D of title 10,
United States Code, is amended by inserting after chapter
903 the following:
‘‘CHAPTER 904—UNITED STATES AIR
FORCE INSTITUTE OF TECHNOLOGY
‘‘Sec.
‘‘9321. Establishment; purposes.
‘‘9322. Sense of the Senate regarding the utilization of the Air Force Institute of
Technology.
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‘‘§ 9321. Establishment; purposes
‘‘(a) ESTABLISHMENT.—There is a United States Air
Force Institute of Technology in the Department of the Air
Force.
‘‘(b) PURPOSES.—The purposes of the Institute are as
follows:
‘‘(1) To perform research.
‘‘(2) To provide advanced instruction and tech-
nical education for employees of the Department of
the Air Force and members of the Air Force (includ-
ing the reserve components) in their practical and
theoretical duties.
‘‘§ 9322. Sense of the Senate regarding the utilization
of the Air Force Institute of Technology
‘‘It is the sense of the Senate that in order to insure
full and continued utilization of the Air Force Institute of
Technology, the Secretary of the Air Force should, in consult
with the Chief of Staff of the Air Force and the Commander
of the Air Force Materiel Command, review the following
areas of organizational structure and operations at the In-
stitute:
‘‘(1) The grade of the Commandant.
‘‘(2) The chain of command of the Commandant
of the Institute within the Air Force.
‘‘(3) The employment and compensation of civil-
ian professors at the Institute.
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‘‘(4) The processes for the identification of re-
quirements for advanced degrees within the Air Force,
identification for annual enrollment quotas and selec-
tion of candidates.
‘‘(5) Post graduation opportunities for graduates
of the Institute.
‘‘(6) The policies and practices regarding the ad-
mission of—
‘‘(A) officers of the Army, Navy, Marine
Corps, and Coast Guard;
‘‘(B) employees of the Department of the
Army, Department of the Navy, and Department
of Transportation;
‘‘(C) personnel of the armed forces of foreign
countries;
‘‘(D) enlisted members of the Armed Forces
of the United States; and
‘‘(E) others eligible for admission.’’.
SEC. 916. EXPANSION OF AUTHORITY TO EXEMPT GEO-
DETIC PRODUCTS OF THE DEPARTMENT OF
DEFENSE FROM PUBLIC DISCLOSURE.
Section 455(b)(1)(C) of title 10, United States Code,
is amended by striking ‘‘or reveal military operational or
contingency plans’’ and inserting ‘‘, reveal military oper-
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ational or contingency plans, or reveal, jeopardize, or com-
promise military or intelligence capabilities’’.
SEC. 917. COORDINATION AND FACILITATION OF DEVELOP-
MENT OF DIRECTED ENERGY TECHNOLOGIES,
SYSTEMS, AND WEAPONS.
(a) FINDINGS.—Congress makes the following findings:
(1) Directed energy systems are available to ad-
dress many current challenges with respect to mili-
tary weapons, including offensive weapons and defen-
sive weapons.
(2) Directed energy weapons offer the potential
to maintain an asymmetrical technological edge over
adversaries of the United States for the foreseeable fu-
ture.
(3) It is in the national interest that funding for
directed energy science and technology programs be
increased in order to support priority acquisition
programs and to develop new technologies for future
applications.
(4) It is in the national interest that the level of
funding for directed energy science and technology
programs correspond to the level of funding for large-
scale demonstration programs in order to ensure the
growth of directed energy science and technology pro-
grams and to ensure the successful development of
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other weapons systems utilizing directed energy sys-
tems.
(5) The industrial base for several critical di-
rected energy technologies is in fragile condition and
lacks appropriate incentives to make the large-scale
investments that are necessary to address current and
anticipated Department of Defense requirements for
such technologies.
(6) It is in the national interest that the Depart-
ment of Defense utilize and expand upon directed en-
ergy research currently being conducted by the De-
partment of Energy, other Federal agencies, the pri-
vate sector, and academia.
(7) It is increasingly difficult for the Federal
Government to recruit and retain personnel with
skills critical to directed energy technology develop-
ment.
(8) The implementation of the recommendations
contained in the High Energy Laser Master Plan of
the Department of Defense is in the national interest.
(9) Implementation of the management structure
outlined in the Master Plan will facilitate the devel-
opment of revolutionary capabilities in directed en-
ergy weapons by achieving a coordinated and focused
investment strategy under a new management struc-
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ture featuring a joint technology office with senior-
level oversight provided by a technology council and
a board of directors.
(b) IMPLEMENTATION OF HIGH ENERGY LASER MAS-
TER PLAN.—(1) The Secretary of Defense shall implement
the management and organizational structure specified in
the Department of Defense High Energy Laser Master Plan
of March 24, 2000.
(2) The Secretary shall locate the Joint Technology Of-
fice specified in the High Energy Laser Master Plan at a
location determined appropriate by the Secretary, not later
than October 1, 2000.
(3) In determining the location of the Joint Technology
Office, the Secretary shall, in consultation with the Deputy
Under Secretary of Defense for Science and Technology,
evaluate whether to locate the Office at a site at which occur
a substantial proportion of the directed energy research, de-
velopment, test, and evaluation activities of the Department
of Defense.
(c) ENHANCEMENT OF INDUSTRIAL BASE.—(1) The
Secretary of Defense shall develop and undertake initia-
tives, including investment initiatives, for purposes of en-
hancing the industrial base for directed energy technologies
and systems.
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(2) Initiatives under paragraph (1) shall be designed
to—
(A) stimulate the development by institutions of
higher education and the private sector of promising
directed energy technologies and systems; and
(B) stimulate the development of a workforce
skilled in such technologies and systems.
(d) ENHANCEMENT OF TEST AND EVALUATION CAPA-
BILITIES.—The Secretary of Defense shall consider modern-
izing the High Energy Laser Test Facility at White Sands
Missile Range, New Mexico, in order to enhance the test
and evaluation capabilities of the Department of Defense
with respect to directed energy weapons.
(e) COOPERATIVE PROGRAMS AND ACTIVITIES.—The
Secretary of Defense shall evaluate the feasibility and advis-
ability of entering into cooperative programs or activities
with other Federal agencies, institutions of higher edu-
cation, and the private sector, including the national lab-
oratories of the Department of Energy, for the purpose of
enhancing the programs, projects, and activities of the De-
partment of Defense relating to directed energy technologies,
systems, and weapons.
(f) FUNDING FOR FISCAL YEAR 2001.—(1) Of the
amount authorized to be appropriated by section 201(4) for
research, development, test, and evaluation, Defense-wide,
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up to $50,000,000 may be available for science and tech-
nology activities relating to directed energy technologies,
systems, and weapons.
(2) The Secretary of Defense shall establish procedures
for the allocation of funds available under paragraph (1)
among activities referred to in that paragraph. In estab-
lishing such procedures, the Secretary shall provide for the
competitive selection of programs, projects, and activities
to be carried out by the recipients of such funds.
(g) DIRECTED ENERGY DEFINED.—In this section, the
term ‘‘directed energy’’, with respect to technologies, sys-
tems, or weapons, means technologies, systems, or weapons
that provide for the directed transmission of energies across
the energy and frequency spectrum, including high energy
lasers and high power microwaves.
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
2001 between any such authorizations for that fiscal year
(or any subdivisions thereof). Amounts of authorizations so
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transferred shall be merged with and be available for the
same purposes as the authorization to which transferred.
(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section may
not exceed $2,000,000,000.
(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 
EMERGENCY 
SUPPLE-
MENTAL APPROPRIATIONS FOR FISCAL YEAR
2000.
Amounts authorized to be appropriated to the Depart-
ment of Defense for fiscal year 2000 in the National Defense
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Authorization Act for Fiscal Year 2000 (Public Law 106–
65) are hereby adjusted, with respect to any such authorized
amount, by the amount by which appropriations pursuant
to such authorization were increased (by a supplemental
appropriation) or decreased (by a rescission), or both, in
any law making supplemental appropriations for fiscal
year 2000 that is enacted during the 106th Congress, second
session.
SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COM-
MON-FUNDED BUDGETS IN FISCAL YEAR 2001.
(a) FISCAL
YEAR
2001 LIMITATION.—The total
amount contributed by the Secretary of Defense in fiscal
year 2001 for the common-funded budgets of NATO may
be any amount up to, but not in excess of, the amount speci-
fied in subsection (b) (rather than the maximum amount
that would otherwise be applicable to those contributions
under the fiscal year 1998 baseline limitation).
(b) TOTAL AMOUNT.—The amount of the limitation
applicable under subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of
the end of fiscal year 2000, of funds appropriated for
fiscal years before fiscal year 2001 for payments for
those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
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(4) The total amount of the contributions author-
ized to be made under section 2501.
(c) AUTHORIZED AMOUNTS.—Amounts authorized to
be appropriated by titles II and III of this Act are available
for contributions for the common-funded budgets of NATO
as follows:
(1) Of the amount provided in section 201(1),
$743,000 for the Civil Budget.
(2) Of the amount provided in section 301(1),
$194,400,000 for the Military Budget.
(d) DEFINITIONS.—For purposes of this section:
(1) COMMON-FUNDED BUDGETS OF NATO.—The
term ‘‘common-funded budgets of NATO’’ means the
Military Budget, the Security Investment Program,
and the Civil Budget of the North Atlantic Treaty Or-
ganization (and any successor or additional account
or program of NATO).
(2) FISCAL YEAR 1998 BASELINE LIMITATION.—
The term ‘‘fiscal year 1998 baseline limitation’’
means the maximum annual amount of Department
of Defense contributions for common-funded budgets of
NATO that is set forth as the annual limitation in
section 3(2)(C)(ii) of the resolution of the Senate giv-
ing the advice and consent of the Senate to the ratifi-
cation of the Protocols to the North Atlantic Treaty
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of 1949 on the Accession of Poland, Hungary, and the
Czech Republic (as defined in section 4(7) of that res-
olution), approved by the Senate on April 30, 1998.
SEC. 1004. ANNUAL OMB/CBO JOINT REPORT ON SCORING
OF BUDGET OUTLAYS.
(a) REVISION
OF SCOPE
OF TECHNICAL ASSUMP-
TIONS.—Subsection (a)(1) of section 226 of title 10, United
States Code, is amended by inserting ‘‘subfunctional cat-
egory 051 (Department of Defense—Military) under’’ before
‘‘major functional category 050’’.
(b) TREATMENT OF DIFFERENCES IN OUTLAY RATES
AND ASSUMPTIONS.—(1) Subsection (b) of such section is
amended by striking ‘‘, the report shall reflect the average
of the relevant outlay rates or assumptions used by the two
offices.’’ and inserting ‘‘, the report shall reflect the dif-
ferences between the relevant outlay rates or assumptions
used by the two offices. For each account for which a dif-
ference is reported, the report shall also display, by fiscal
year, each office’s estimates regarding budget authority,
outlay rates, and outlays.’’.
(2) The heading for such subsection is amended to read
as follows: ‘‘DIFFERENCES IN OUTLAY RATES AND ASSUMP-
TIONS.—’’.
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SEC. 1005. PROMPT PAYMENT OF CONTRACT VOUCHERS.
(a) REQUIREMENT.—(1) Chapter 131 of title 10,
United States Code, is amended by adding at the end the
following:
‘‘§ 2225. Prompt payment of vouchers for contracted
property and services
‘‘(a) REQUIREMENT.—Of the contract vouchers that
are received by the Defense Finance and Accounting Service
by means of the mechanization of contract administration
services system, the number of such vouchers that remain
unpaid for more than 30 days as of the last day of each
month may not exceed 5 percent of the total number of the
contract vouchers so received that remain unpaid on that
day.
‘‘(b) CONDITIONAL REQUIREMENT FOR REPORT.—(1)
For any month of a fiscal year that the requirement in sub-
section (a) is not met, the Secretary of Defense shall submit
to Congress a report on the magnitude of the unpaid con-
tract vouchers. The report for a month shall be submitted
not later than 30 days after the end of that month.
‘‘(2) A report for a month under paragraph (1) shall
include information current as of the last day of the month
as follows:
‘‘(A) The number of the vouchers received by the
Defense Finance and Accounting Service by means of
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the mechanization of contract administration services
system during each month.
‘‘(B) The number of the vouchers so received,
whenever received by the Defense Finance and Ac-
counting Service, that remain unpaid for each of the
following periods:
‘‘(i) Not more than 30 days.
‘‘(ii) Over 30 days and not more than 60
days.
‘‘(iii) Over 60 days and not more than 90
days.
‘‘(iv) More than 90 days.
‘‘(C) The number of the vouchers so received that
remain unpaid for the major categories of procure-
ments, as defined by the Secretary of Defense.
‘‘(D) The corrective actions that are necessary,
and those that are being taken, to ensure compliance
with the requirement in subsection (a).
‘‘(c) CONTRACT VOUCHER DEFINED.—In this section,
the term ‘contract voucher’ means a voucher or invoice for
the payment of a contractor for services, commercial items
(as defined in section 4(12) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(12))), or other deliverable
items provided by the contractor pursuant to a contract
funded by the Department of Defense.’’.
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(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following:
‘‘2225. Prompt payment of vouchers for contracted property and services’’.
(b) EFFECTIVE DATE.—Section 2225 of title 10,
United States Code (as added by subsection (a)), shall take
effect on December 1, 2000, and shall apply with respect
to months beginning on or after that date.
SEC. 1006. REPEAL OF CERTAIN REQUIREMENTS RELATING
TO TIMING OF CONTRACT PAYMENTS.
The following provisions of law are repealed: sections
8175 and 8176 of the Department of Defense Appropria-
tions Act, 2000 (Public Law 106–79), as amended by sec-
tions 214 and 215, respectively, of H.R. 3425 of the 106th
Congress (113 Stat. 1501A–297), as enacted into law by
section 1000(a)(5) of Public Law 106–113.
SEC. 1007. PLAN FOR PROMPT POSTING OF CONTRACTUAL
OBLIGATIONS.
(a) REQUIREMENT FOR PLAN.—The Secretary of De-
fense shall submit to the congressional defense committees,
not later than November 15, 2000, and carry out a plan
for ensuring that each obligation of the Department of De-
fense under a transaction described in subsection (c) is post-
ed within 10 days after the obligation is incurred.
(b) CONTENT OF PLAN.—The plan for posting obliga-
tions shall provide the following:
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(1) Uniform posting requirements that are ap-
plicable throughout the Department of Defense, in-
cluding requirements for the posting of detailed data
on each obligation.
(2) A system of uniform accounting classifica-
tion reference numbers.
(3) Increased use of electronic means for the sub-
mission of invoices and other billing documents.
(c) COVERED TRANSACTIONS.—The plan shall apply
to each liability of the Department of Defense for a payment
under the following:
(1) A contract.
(2) An order issued under a contract.
(3) Services received under a contract.
(4) Any transaction that is similar to a trans-
action referred to in another paragraph of this sub-
section.
SEC. 1008. PLAN FOR ELECTRONIC SUBMISSION OF DOCU-
MENTATION SUPPORTING CLAIMS FOR CON-
TRACT PAYMENTS.
(a) REQUIREMENT FOR PLAN.—The Secretary of De-
fense shall submit to the congressional defense committees,
not later than March 30, 2001, and carry out a plan for
ensuring that all documentation that is to be submitted to
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the Department of Defense in support of claims for payment
under contracts is submitted electronically.
(b) CONTENT OF PLAN.—The plan shall include the
following:
(1) The format in which information can be ac-
cepted by the Defense Finance and Accounting Serv-
ice’s corporate database.
(2) Procedures for electronic submission of the
following:
(A) Receiving reports.
(B) Contracts and contract modifications.
(C) Required certifications.
(3) The requirements to be included in contracts
regarding electronic submission of invoices by con-
tractors.
SEC. 1009. ADMINISTRATIVE OFFSETS FOR OVERPAYMENT
OF TRANSPORTATION COSTS.
(a) OFFSETS FOR OVERPAYMENTS OR LIQUIDATED
DAMAGES.—Section 2636 of title 10, United States Code,
is amended to read as follows:
‘‘§ 2636. Deductions from amounts due carriers
‘‘(a) AMOUNTS FOR LOSS OR DAMAGE.—An amount
deducted from an amount due a carrier shall be credited
as follows:
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‘‘(1) If deducted because of loss of or damage to
material in transit for a military department, to the
proper appropriation, account, or fund from which
the same or similar material may be replaced.
‘‘(2) If deducted as an administrative offset for
an overpayment previously made to the carrier under
any Department of Defense contract for transpor-
tation services or as liquidated damages due under
any such contract, to the appropriation or account
from which payments for the transportation services
were made.
‘‘(b) SIMPLIFIED OFFSET FOR COLLECTION OF CLAIMS
NOT
IN
EXCESS
OF
THE
SIMPLIFIED
ACQUISITION
THRESHOLD.—(1) In any case in which the total amount
of a claim for the recovery of overpayments or liquidated
damages under a contract described in subsection (a)(2)
does not exceed the simplified acquisition threshold, the Sec-
retary of Defense or the Secretary concerned may exercise
the authority to collect the claim by administrative offset
under section 3716 of title 31 after providing the notice re-
quired by paragraph (1) of subsection (a) of that section,
but without regard to paragraphs (2), (3), and (4) of that
subsection.
‘‘(2) In this subsection, the term ‘simplified acquisition
threshold’ has the meaning given the term in section 4(11)
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of the Office of Federal Procurement Policy Act (41 U.S.C.
403(11)).’’.
(b) CLERICAL AMENDMENT.—The item relating to
such section in the table of sections at the beginning of chap-
ter 157 of such title is amended to read as follows:
‘‘2636. Deductions from amounts due carriers.’’.
SEC. 1010. REPEAL OF CERTAIN PROVISIONS SHIFTING
CERTAIN OUTLAYS FROM ONE FISCAL YEAR
TO ANOTHER.
Sections 305 and 306 of H.R. 3425 of the 106th Con-
gress, as enacted into law by section 1000(a)(5) of Public
Law 106–113 (113 Stat. 1501A–306), are repealed.
SEC. 1010A. TREATMENT OF PARTIAL PAYMENTS UNDER
SERVICE CONTRACTS.
For the purposes of the regulations prescribed under
section 3903(a)(5) of title 31, United States Code, partial
payments, other than progress payments, that are made on
a contract for the procurement of services shall be treated
as being periodic payments.
Subtitle B—Counter-Drug Activities
SEC. 1011. EXTENSION AND INCREASE OF AUTHORITY TO
PROVIDE 
ADDITIONAL 
SUPPORT 
FOR
COUNTER-DRUG ACTIVITIES.
(a) EXTENSION OF AUTHORITY FOR ASSISTANCE TO
COLOMBIA.—Section 1033 of the National Defense Author-
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ization Act for Fiscal Year 1998 (Public Law 105–85; 111
Stat. 1881) is amended—
(1) in subsection (a), by striking ‘‘during fiscal
years 1998 through 2002,’’; and
(2) in subsection (b)—
(A) in paragraph (1), by inserting before
the period at the end the following: ‘‘, for fiscal
years 1998 through 2002’’; and
(B) in paragraph (2), by inserting before
the period at the end the following: ‘‘, for fiscal
years 1998 through 2006’.
(b) ADDITIONAL TYPE OF SUPPORT.—Subsection (c)
of such section is amended by adding at the end the fol-
lowing:
‘‘(4) The transfer of one light observation air-
craft.’’.
(c) INCREASED MAXIMUM ANNUAL AMOUNT OF SUP-
PORT.—Subsection (e)(2) of such section is amended—
(1) by striking ‘‘$20,000,000’’ and inserting
‘‘$40,000,000’’; and
(2) by striking ‘‘2002’’ and inserting ‘‘2006, of
which not more than $10,000,000 may be obligated or
expended for any fiscal year for support for the
counter-drug activities of the Government of Peru’’.
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SEC. 1012. RECOMMENDATIONS ON EXPANSION OF SUP-
PORT FOR COUNTER-DRUG ACTIVITIES.
(a) REQUIREMENT FOR SUBMITTAL OF RECOMMENDA-
TIONS.—The Secretary of Defense shall submit to the Com-
mittees on Armed Services of the Senate and the House of
Representatives, not later than February 1, 2001, the Sec-
retary’s recommendations regarding whether expanded sup-
port for counter-drug activities should be authorized under
section 1033 of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105–85; 111 Stat. 1881) for
the region that includes the countries that are covered by
that authority on the date of the enactment of this Act.
(b) CONTENT OF SUBMISSION.—The submission under
subsection (a) shall include the following:
(1) What, if any, additional countries should be
covered.
(2) What, if any, additional support should be
provided to covered countries, together with the rea-
sons for recommending the additional support.
(3) For each country recommended under para-
graph (1), a plan for providing support, including
the counter-drug activities proposed to be supported.
SEC. 1013. REVIEW OF RIVERINE COUNTER-DRUG PRO-
GRAM.
(a) REQUIREMENT FOR REVIEW.—The Secretary of
Defense shall review the riverine counter-drug program sup-
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ported under section 1033 of the National Defense Author-
ization Act for Fiscal Year 1998 (Public Law 105–85; 111
Stat. 1881).
(b) REPORT.—Not later than February 1, 2001, the
Secretary shall submit a report on the riverine counter-drug
program to the Committees on Armed Services of the Senate
and the House of Representatives. The report shall include,
for each country receiving support under the riverine
counter-drug program, the following:
(1) The Assistant Secretary’s assessment of the
effectiveness of the program.
(2) A recommendation regarding which of the
Armed Forces, units of the Armed Forces, or other or-
ganizations within the Department of Defense should
be responsible for managing the program.
(c) DELEGATION OF AUTHORITY.—The Secretary shall
require the Assistant Secretary of Defense for Special Oper-
ations and Low Intensity Conflict to carry out the respon-
sibilities under this section.
Subtitle C—Strategic Forces
SEC. 1015. REVISED NUCLEAR POSTURE REVIEW.
(a) REQUIREMENT FOR REVIEW.—The Secretary of
Defense, in consultation with the Secretary of Energy, shall
conduct a comprehensive review of the nuclear posture of
the United States for the next 5 to 10 years.
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(b) ELEMENTS OF REVIEW.—The nuclear posture re-
view shall include the following elements:
(1) The role of nuclear forces in United States
military strategy, planning, and programming.
(2) The policy requirements and objectives for
the United States to maintain a safe, reliable, and
credible nuclear deterrence posture.
(3) The relationship between United States nu-
clear deterrence policy, targeting strategy, and arms
control objectives.
(4) The levels and composition of the nuclear de-
livery systems that will be required for implementing
the United States national and military strategy, in-
cluding any plans for replacing or modifying existing
systems.
(5) The nuclear weapons complex that will be re-
quired for implementing the United States national
and military strategy, including any plans to mod-
ernize or modify the complex.
(6) The active and inactive nuclear weapons
stockpile that will be required for implementing the
United States national and military strategy, includ-
ing any plans for replacing or modifying warheads.
(c) REPORT TO CONGRESS.—The Secretary of Defense
shall submit to Congress, in unclassified and classified
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forms as necessary, a report on the results of the nuclear
posture review concurrently with the Quadrennial Defense
Review due in December 2001.
(d) SENSE OF CONGRESS.—It is the sense of Congress
that, to clarify United States nuclear deterrence policy and
strategy for the next 5 to 10 years, a revised nuclear posture
review should be conducted and that such review should be
used as the basis for establishing future United States arms
control objectives and negotiating positions.
SEC. 1016. PLAN FOR THE LONG-TERM SUSTAINMENT AND
MODERNIZATION OF UNITED STATES STRA-
TEGIC NUCLEAR FORCES.
(a) REQUIREMENT FOR PLAN.—The Secretary of De-
fense, in consultation with the Secretary of Energy, shall
develop a long-range plan for the sustainment and mod-
ernization of United States strategic nuclear forces to
counter emerging threats and satisfy the evolving require-
ments of deterrence.
(b) ELEMENTS OF PLAN.—The plan specified under
subsection (a) shall include the Secretary’s plans, if any,
for the sustainment and modernization of the following:
(1) Land-based and sea-based strategic ballistic
missiles, including any plans for developing replace-
ments for the Minuteman III intercontinental bal-
listic missile and the Trident II sea-launched ballistic
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missile and plans for common ballistic missile tech-
nology development
(2) Strategic nuclear bombers, including any
plans for a B–2 follow-on, a B–52 replacement, and
any new air-launched weapon systems.
(3) Appropriate warheads to outfit the strategic
nuclear delivery systems referred to in paragraphs (1)
and (2) to satisfy evolving military requirements.
(c) SUBMITTAL OF PLAN.—The plan specified under
subsection (a) shall be submitted to Congress not later than
April 15, 2001. The plan shall be submitted in unclassified
and classified forms, as necessary.
SEC. 1017. CORRECTION OF SCOPE OF WAIVER AUTHORITY
FOR LIMITATION ON RETIREMENT OR DIS-
MANTLEMENT OF STRATEGIC NUCLEAR DE-
LIVERY SYSTEMS; AUTHORITY TO WAIVE LIMI-
TATION.
(a) IN GENERAL.—Section 1302(b) of the National De-
fense Authorization Act for Fiscal Year 1998 (Public Law
105–85; 111 Stat. 1948), as amended by section 1501(a)
of the National Defense Authorization Act for Fiscal Year
2000 (Public Law 106–65; 113 Stat. 806), is further
amended by striking ‘‘the application of the limitation in
effect under paragraph (1)(B) or (3) of subsection (a), as
the case may be,’’ and inserting ‘‘the application of the lim-
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itation in effect under subsection (a) to a strategic nuclear
delivery system’’.
(b) AUTHORITY TO WAIVE LIMITATION ON RETIRE-
MENT OR DISMANTLEMENT OF STRATEGIC NUCLEAR DE-
LIVERY SYSTEMS.—After the submission of the report on
the results of the nuclear posture review to Congress under
section 1015(c)—
(1) the Secretary of Defense shall, taking into
consideration the results of the review, submit to the
President a recommendation regarding whether the
President should waive the limitation on the retire-
ment or dismantlement of strategic nuclear delivery
systems in section 1302 of the National Defense Au-
thorization Act for Fiscal Year 1998 (Public Law
105–85; 111 Stat. 1948); and
(2) the President, taking into consideration the
results of the review and the recommendation made
by the Secretary of Defense under paragraph (1), may
waive the limitation referred to in that paragraph if
the President determines that it is in the national se-
curity interests of the United States to do so.
SEC. 1018. REPORT ON THE DEFEAT OF HARDENED AND
DEEPLY BURIED TARGETS.
(a) STUDY.—The Secretary of Defense shall, in con-
junction with the Secretary of Energy, conduct a study re-
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lating to the defeat of hardened and deeply buried targets.
Under the study, the Secretaries shall—
(1) review the requirements and current and fu-
ture plans for hardened and deeply buried targets and
agent defeat weapons concepts and activities;
(2) determine if those plans adequately address
all requirements;
(3) identify potential future hardened and deeply
buried targets and other related targets;
(4) determine what resources and research and
development efforts are needed to defeat the targets
identified under paragraph (3) as well as other agent
defeat requirements;
(5) assess both current and future options to de-
feat hardened and deeply buried targets as well as
agent defeat weapons concepts, including any limited
research and development that may be necessary to
conduct such assessment; and
(6) determine the capability and cost of each op-
tion.
(b) REPORT.—The Secretary of Defense shall submit
to the congressional defense committees a report on the re-
sults of the study required by subsection (a) not later than
July 1, 2001.
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SEC. 1019. SENSE OF SENATE ON THE MAINTENANCE OF
THE STRATEGIC NUCLEAR TRIAD.
It is the sense of the Senate that, in light of the poten-
tial for further arms control agreements with the Russian
Federation limiting strategic forces—
(1) it is in the national interest of the United
States to maintain a robust and balanced TRIAD of
strategic nuclear delivery vehicles, including long-
range bombers, land-based intercontinental ballistic
missiles (ICBMs), and ballistic missile submarines;
and
(2) reductions to United States conventional
bomber capability are not in the national interest of
the United States.
Subtitle D—Miscellaneous
Reporting Requirements
SEC. 1021. ANNUAL REPORT OF THE CHAIRMAN OF THE
JOINT CHIEFS OF STAFF ON COMBATANT
COMMAND REQUIREMENTS.
(a) ADDITIONAL COMPONENT.—Section 153(d)(1) of
title 10, United States Code, is amended by adding at the
end the following:
‘‘(C) The extent to which the future-years defense
program (under section 221 of this title) addresses the
requirements on the consolidated lists.’’.
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(b) APPLICABILITY TO REPORTS AFTER FISCAL YEAR
2000.—Subparagraph (C) of paragraph (1) of section
153(d) of title 10, United States Code (as added by sub-
section (a)), shall apply to reports submitted to Congress
under such section after fiscal year 2000.
SEC. 1022. SEMIANNUAL REPORT ON JOINT REQUIREMENTS
OVERSIGHT COUNCIL.
(a) SEMIANNUAL REPORT.—The Chairman of the
Joints Chiefs of Staff shall submit to the congressional de-
fense committees a semiannual report on the activities of
the Joint Requirements Oversight Council. The principal
purpose of the report is to inform the committees of the
progress made in the reforming and refocusing of the Joint
Requirements Oversight Council process during the period
covered by the report.
(b) CONTENT.—The report for a half of a fiscal year
shall include the following:
(1) A listing and justification for each of the dis-
tinct capability areas selected by the Chairman of the
Joints Chiefs of Staff as being within the principal
domain of the Joint Requirements Oversight Council.
(2) A listing of the joint requirements developed,
considered, or approved within each of the capability
areas.
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(3) A listing and explanation of the decisions
made by the Joint Requirements Oversight Council,
together with a delineation of each decision that was
made in disagreement with a position advocated by
the Commander in Chief, United States Joint Forces
Command, as the chief proponent of the requirements
identified by the commanders of the unified and spec-
ified combatant commands.
(4) An assessment of the progress made in ele-
vating the Joint Requirements Oversight Council to a
more strategic focus on future war fighting require-
ments, integration of requirements, and development
of overarching common architectures.
(5) A summation and assessment of the role and
impact of joint experimentation on the processes and
decisions for defining joint requirements, for defining
requirements of each of the Armed Forces individ-
ually, for managing acquisitions by Defense Agencies,
and for managing acquisitions by the military de-
partments.
(6) A description of any procedural actions that
have been taken to improve the Joint Requirements
Oversight Council.
(7) Any recommendations for legislation or for
providing additional resources that the Chairman