United States Agency for International Development, re-
spectively. 
(b) ANNUAL REPORT.—Not later than one year after 
the date of the enactment of this Act, and each year there-
after, each Inspector General referred to in subsection (a) 
shall prepare a report on the following: 
(1) The number of noncompetitive contracts 
awarded by the Department of Defense, the Depart-
ment of State, or the United States Agency for 
International Development, as applicable, in the pre-
vious year. 
(2) The number of one-offer contracts awarded 
by such department or agency, as applicable, in the 
previous year. 
(3) The justification and approvals required 
under section 3304 of title 41, United States Code, 
or section 2304(f) of title 10, United States Code, 
as applicable, and associated regulations for each 
noncompetitive and one-offer contracted listed under 
paragraphs (1) and (2). 
(4) An assessment of whether the contracting 
practices of the Department of Defense, the Depart-
ment of State, or the United States Agency for 
International Development, as applicable, are in 
keeping with the purposes and goals of promoting 
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and providing for full and open competition in solic-
iting offers and awarding contracts over the sim-
plified acquisition threshold. 
(c) SUBMISSION OF REPORT.—Each Inspector Gen-
eral referred to in subsection (a) shall submit the report 
required by subsection (b) to the appropriate committees 
of Congress and, in addition, to the head of the applicable 
department or agency. 
(d) DEFINITIONS.—In this section: 
(1) NONCOMPETITIVE
CONTRACT.—The term 
‘‘noncompetitive contract’’ means a contract that is 
awarded without soliciting bids from more than one 
vendor. 
(2) ONE-OFFER CONTRACTS.—The term ‘‘one- 
offer contract’’ means a contract awarded after re-
ceiving a bid from only one qualified vendor. 
SEC. 109. TAX TREATMENT OF CERTAIN CIVILIAN EMPLOY-
EES OF DEPARTMENT OF DEFENSE IN COM-
BAT ZONES. 
(a) EXCLUSION
OF
COMBAT
ZONE
COMPENSA-
TION.— 
(1) IN
GENERAL.—Subsection (d) of section 
112 of the Internal Revenue Code of 1986 (relating 
to prisoners of war, etc.) is amended by adding at 
the end the following new paragraph: 
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‘‘(4) CIVILIAN
CONTRACTING
EMPLOYEES
OF 
DEPARTMENT OF DEFENSE.— 
‘‘(A) SERVICE IN COMBAT ZONE.—Gross 
income does not include so much of compensa-
tion as does not exceed the maximum enlisted 
amount received for active service as a civilian 
employee of the Department of Defense serving 
in the acquisition workforce (as defined in sec-
tion 1705(g) of title 10, United States Code) in 
support of the Armed Forces of the United 
States for any month during any part of which 
such employee— 
‘‘(i) served in a combat zone, 
‘‘(ii) was hospitalized as a result of 
wounds, disease, or injury incurred while 
serving in a combat zone, or 
‘‘(iii) is in a missing status as a result 
of such service. 
Clause (ii) shall not apply for any month begin-
ning more than 2 years after the date of the 
termination of combatant activities in such 
zone. 
‘‘(B) MISSING STATUS.—For purposes of 
this paragraph, the terms ‘active service’ and 
‘missing status’ have the respective meanings 
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given to such terms by section 5561 of title 5 
of the United States Code.’’. 
(2) CLERICAL AMENDMENTS.— 
(A) The heading for section 112 of such 
Code is amended to read as follows: 
‘‘SEC. 112. CERTAIN COMBAT ZONE COMPENSATION.’’. 
(B) The item relating to section 112 in the 
table of sections for part III of subchapter B of 
chapter 1 of such Code is amended to read as 
follows: 
‘‘Sec. 112. Certain combat zone compensation.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to compensation for 
periods after the date of the enactment of this Act. 
(b) ADDITIONAL ESTATE TAX NOT TO APPLY.— 
(1) IN
GENERAL.—Subsection (b) of section 
2201 of such Code is amended by inserting ‘‘or 
while in service as a civilian employee of the Depart-
ment of Defense in the acquisition workforce (as de-
fined in section 1705(g) of title 10, United States 
Code) in support of the Armed Forces of the United 
States,’’ after ‘‘United States,’’. 
(2) CLERICAL AMENDMENTS.— 
(A) The heading for section 2201 of such 
Code is amended by inserting ‘‘AND CERTAIN 
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DEPARTMENT
OF
DEFENSE
CIVILIANS’’ 
after ‘‘MEMBERS OF THE ARMED FORCES’’. 
(B) The item relating to section 2201 in 
the table of sections for subchapter C of chap-
ter 11 of such Code is amended to read as fol-
lows: 
‘‘Sec. 2201. Members of the Armed Forces and certain Department of Defense 
civilians dying in combat zone or by reason of combat-zone-in-
curred wounds, etc.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to decedents dying 
after the date of the enactment of this Act. 
(c) NO TAX ON TOLL TELEPHONE SERVICE IN COM-
BAT ZONE.— 
(1) IN
GENERAL.—Subsection (d) of section 
4253 of such Code (relating to servicemen in combat 
zone) is amended by inserting ‘‘, or from a civilian 
employee of the Department of Defense serving in 
the acquisition workforce (as defined in section 
1705(g) of title 10, United States Code) in support 
of the Armed Forces of the United States,’’ after 
‘‘United States’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply with respect to 
amounts paid after the date of the enactment of this 
Act for services rendered on or after such date. 
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TITLE II—MATTERS RELATING 
TO 
SECURITY 
ASSISTANCE 
AND COUNTERTERRORISM 
SEC. 201. REPORT ON UNITED STATES STRATEGY RELAT-
ING TO AFGHANISTAN. 
(a) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense, 
in consultation with the Director of National Intelligence, 
the Secretary of State, the Secretary of the Treasury (act-
ing through the head of the Office of Foreign Assets Con-
trol), the Attorney General, and any other officials the 
Secretary of Defense considers appropriate, shall submit 
to the appropriate congressional committees, the congres-
sional intelligence committees, and the Director of the Na-
tional Security Council a report on the success of the 
United States mission in Afghanistan, including the suc-
cess of the strategy in Afghanistan in achieving the United 
States global counterterrorism goals and the success of the 
strategy of relying on the international donor community 
to provide development assistance and other related assist-
ance to Afghanistan. 
(b) FORM
OF SUBMISSION.—The report required 
under subsection (a) shall be submitted in an unclassified 
form, but may include a classified annex. 
(c) DEFINITIONS.—In this section: 
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