(b) MEDICARE ELIGIBLE RETIREE HEALTH CARE 
FUND.—(1) Section 1111(b) of such title is amended by 
adding at the end the following new paragraph: 
‘‘(5) The term ‘members of the uniformed serv-
ices on active duty’ does not include a cadet at the 
United States Military Academy, the United States 
Air Force Academy, or the Coast Guard Academy; 
or a midshipman at the United States Naval Acad-
emy.’’. 
(2) Section 1115 of such title is amended— 
(A) in subsection (b)— 
(i) in paragraph (1)(B), by inserting before 
the period at the end the following: ‘‘, but ex-
cluding any members who would be excluded for 
active-duty end strength purposes by section 
115(i) of this title’’; and 
(ii) in paragraph (2)(B)— 
(I) by striking ‘‘Ready’’ and inserting 
‘‘Selected’’; and 
(II) by striking ‘‘other than members 
on full-time National Guard duty other 
than for training)’’; and 
(B) in subsection (c)(1)— 
(i) in subparagraph (A), by inserting be-
fore the semicolon the following: ‘‘, but exclud-
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ing any members who would be excluded for ac-
tive-duty end strength purposes by section 
115(i) of this title’’; and 
(ii) in subparagraph (B)— 
(I) by striking ‘‘Ready’’ and inserting 
‘‘Selected’’; and 
(II) by striking ‘‘(other than members 
on full-time National Guard duty other 
than for training)’’. 
Subtitle D—Other Matters 
SEC. 631. TECHNICAL MODIFICATION TO THE DEPARTMENT 
OF DEFENSE’S COMPUTER/ELECTRONIC AC-
COMMODATIONS PROGRAM TO ALLOW COM-
BAT WOUNDED SERVICE MEMBERS. 
Section 1582(a)(1) of title 10, United States Code, 
is amended by adding at the end of the following new sen-
tence: ‘‘The Secretary of Defense may allow members of 
the armed forces who have sustained severe or debilitating 
illnesses or injuries while serving in support of a contin-
gency operation to retain any assistive technology, devices, 
or services provided to the member prior to their separa-
tion of military service upon their separation.’’. 
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SEC. 632. PERMANENT AUTHORITY FOR PRESENTATION OF 
RECOGNITION 
ITEMS 
FOR 
RECRUITMENT 
AND RETENTION PURPOSES. 
Section 2261 of title 10, United States Code, is 
amended by striking subsection (d). 
TITLE VII—HEALTH CARE 
PROVISIONS 
Subtitle A—TRICARE Program 
Improvements 
SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINA-
TION FOLLOWING SEXUAL ASSAULTS AND 
DOMESTIC VIOLENCE. 
Section 1079(a) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(18) Forensic examinations following a sexual 
assault and domestic violence may be provided.’’. 
SEC. 702. INCREASING TRICARE PROGRAM COST SHARING 
AMOUNTS. 
(a) AUTHORITY.—Section 1086(b) of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(5)(A) 
Notwithstanding 
paragraphs 
(1) 
through (4), and subject to subparagraph (B), the 
Secretary of Defense shall prescribe regulations to 
revise the requirements for payments by bene-
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ficiaries under this subsection, other than Medicare- 
eligible beneficiaries, in order to reflect increases in 
health care costs. Such requirements, which may in-
clude a revised deductible amount and an enrollment 
fee, need not be uniform for all such beneficiaries. 
Any such enrollment fee may be a condition of eligi-
bility for health care benefits under chapter 55 of 
this title. 
‘‘(B) The revisions required by subparagraph 
(A) may not result in average annual per person 
out-of-pocket costs in excess of the average annual 
per person out-of-pocket costs applicable in fiscal 
year 1996, indexed to fiscal year 2007 and future 
fiscal years based on the annual rate of change (in-
crease or decrease) in the average premiums under 
the Federal Employee Health Benefits Program 
under chapter 89 of title 5. 
‘‘(C) In this paragraph: 
‘‘(i) The term ‘Medicare-eligible bene-
ficiary’ means a person described in subsection 
(d). 
‘‘(ii) The term ‘out-of-pocket costs’ means 
the portion of the total health care costs (in-
cluding deductible amounts, enrollment fees, 
and other cost sharing) of a beneficiary reliant 
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on the civilian sector component of the 
TRICARE Program that are not covered by 
such program.’’. 
(b) TIME FOR PROMULGATION OF REGULATIONS.— 
The Secretary shall prescribe the regulations required 
under paragraph (5) of section 1086(b) of title 10, United 
States Code (as added by subsection (a)), not later than 
90 days after the date of enactment of this Act. 
(c) LIMITATION.—Notwithstanding any other provi-
sion of this Act, no authority to make payments or collect 
any new deductible or enrollment fee under this Act shall 
be effective except to such extent and in such amounts 
as are provided in advance in appropriation Acts. 
Subtitle B—Other Matters 
SEC. 711. RESTRUCTURING THE DENTAL DIVISION OF THE 
BUREAU OF MEDICINE AND SURGERY. 
(a) IN GENERAL.—Section 5138 of title 10, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by striking the first sentence; and 
(B) by striking ‘‘Division’’ and inserting 
‘‘Corps’’ in the second sentence; 
(2) in subsection (b), by striking ‘‘Division’’ 
and inserting ‘‘Corps’’; 
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(3) in subsection (c), by striking ‘‘, that all 
such’’ and all that follows and inserting a period; 
and 
(4) by amending subsection (d) to read as fol-
lows: 
‘‘(d) The Chief of the Dental Corps shall serve as 
the advisor to the Surgeon General/Chief, Bureau of Medi-
cine and Surgery, on all matters relating directly to den-
tistry, including professional standards and policies for 
dental practice.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 5138. Bureau of Medicine and Surgery: Dental 
Corps; Chief’’. 
(2) The table of sections at the beginning of chapter 
513 of such title is amended by striking the item relating 
to section 5138 and inserting the following: 
‘‘5138.
Bureau of Medicine and Surgery: Dental Corps; Chief.’’. 
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TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. EXPANDED USE OF RESERVE COMPONENT MEM-
BERS TO PERFORM DEVELOPMENTAL AND 
OPERATIONAL TESTING AND NEW EQUIP-
MENT TRAINING. 
(a) REIMBURSEMENT.—The Secretary of the Army 
may transfer from funds available to support an acquisi-
tion program in the amount necessary to reimburse the 
appropriate reserve component military personnel account 
for costs charged to that account for military pay and al-
lowances in connection with the demonstration program 
described in subsection (b). 
(b) DEMONSTRATION PROGRAM.—(1) A demonstra-
tion program under this section shall evaluate— 
(A) cost savings and other benefits that may re-
sult from the use of members of the reserve compo-
nents to perform test, evaluation, and related activi-
ties for an acquisition program, rather than the use 
of contractor personnel for such purposes; and 
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(B) the use of appropriations available for 
multi-year research, development, testing and eval-
uation and procurement to reimburse reserve compo-
nents for the pay, allowances, and expenses incurred 
when such members perform duties to conduct ac-
quisition, logistics, and new equipment training ac-
tivities in connection with the demonstration pro-
gram. 
(2) Nothing in this section authorizes a deviation 
from established Reserve and National Guard personnel 
and training procedures. 
(c) LIMITATION
ON
AMOUNT.—Not more than 
$10,000,000 may be transferred under this section during 
each year of the demonstration program. 
(d) MERGER
OF TRANSFERRED FUNDS.—Funds 
transferred to an account under this section shall be 
merged with other sums in the account and shall be avail-
able for the same period and purposes as the sums with 
which merged. 
(e) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority under this section is in addi-
tion to any other transfer authority. 
(f) TERMINATION.—The demonstration program 
under this section shall terminate on September 30, 2010. 
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SEC. 802. MINIMUM ANNUAL PURCHASE FOR CIVIL RE-
SERVE AIR FLEET CONTRACTS. 
(a) IN GENERAL.—Chapter 931 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 9515. Minimum annual purchase for Civil Reserve 
Air Fleet contracts 
‘‘(a) IN GENERAL.—The Secretary of Defense is au-
thorized to award to air carriers participating in the Civil 
Reserve Air Fleet (CRAF) program annual airlift con-
tracts with a minimum purchase amount determined in 
accordance with this section. 
‘‘(b) MINIMUM ANNUAL CONTRACT AWARDS.—Such 
contract minimum purchase amount shall be based on 
forecast needs but may not be for more than eighty per-
cent of the annual average expenditures of airlift for the 
prior 5-year period. Unusually high demand years, such 
as during a conflict, will normally be omitted to obtain 
a more accurate forecast. Award amounts shall be divided 
among the carriers or carrier teaming arrangements pro-
portional to the commitments to the CRAF program. 
‘‘(c) SUBSIDY.—Should any of the amounts set aside 
for the annual minimum airlift purchase not be utilized 
to purchase actual transportation from the carriers to 
whom awarded, such remainder will be transferred to the 
carrier prior to the first day of the following fiscal year. 
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Proportional adjustment shall be made for periods when 
services from the air carrier are unavailable for usage by 
the Department of Defense, such as refused business, sus-
pended operations, or when the air carrier is placed in 
non-use status pursuant to section 2640 of this title for 
safety issues. If purchases of transportation services ex-
ceed minimum contract amounts for that carrier or 
teaming arrangement, no subsidy will be provided. 
‘‘(d) MERGER OF FUNDS.—Amounts available to the 
Services for transportation equal to the proportional share 
of usage by each Service shall be transferred to the trans-
portation working capital fund to fund contract award. 
Each Service shall be entitled to obtain transportation of 
equal value or transfer that entitlement to other Services 
or DOD units. Such transferred value shall be merged 
with the appropriations of the receiving unit.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the following new item: 
‘‘9515. Minimum annual purchase for Civil Reserve Air Fleet contracts.’’. 
SEC. 803. CLARIFICATION OF RAPID ACQUISITION AUTHOR-
ITY TO RESPOND TO COMBAT EMERGENCIES. 
Section 806 of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 107– 
314; 116 Stat. 2607; 10 U.S.C. 2302 note), as amended 
by section 811 of the Ronald W. Reagan National Defense 
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Authorization Act for Fiscal Year 2005 (Public Law 108– 
375), is further amended— 
(1) in subsection (a), by inserting ‘‘or utiliza-
tion of services’’ after ‘‘items’’; 
(2) in subsection (b)— 
(A) in paragraph (1)(B), by inserting ‘‘or 
services’’ after ‘‘items’’; 
(B) in paragraph (2)— 
(i) by inserting ‘‘or utilizing services’’ 
after ‘‘items’’; 
(ii) in subparagraph (A), by inserting 
‘‘or service’’ after ‘‘item’’; 
(iii) in subparagraph (B), by inserting 
‘‘or the utilization of a service’’ after 
‘‘item’’; and 
(iv) in subparagraph (C), by inserting 
‘‘or utilization’’ after ‘‘deployment’’; 
(3) in subsection (c)— 
(A) by inserting ‘‘or service’’ after ‘‘equip-
ment’’ each place it appears; 
(B) by striking ‘‘combat capability’’ each 
place it appears; 
(C) by striking ‘‘casualties’’ and inserting 
‘‘fatalities’’ each place it appears; 
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(D) in paragraph (1), by inserting ‘‘below 
the Under Secretary of Defense (Acquisition, 
Technology and Logistics)’’ after ‘‘delegation’’; 
and 
(E) by amending paragraph (4) to read as 
follows: 
‘‘(4) The Secretary of Defense shall notify the 
congressional defense committees within 15 days 
after the end of each quarter of the fiscal year with 
regard to each determination made under paragraph 
(1) during that quarter. For each determination, 
such notice shall identify— 
‘‘(A) the equipment and services being ac-
quired; 
‘‘(B) the amount being expended for each 
acquisition; and 
‘‘(C) the source of funds for each acquisi-
tion.’’; and 
(4) in subsection (d)— 
(A) in paragraph (1)— 
(i) by inserting ‘‘or service’’ after 
‘‘equipment’’ each place it appears; 
(ii) in subparagraph (B), by striking 
‘‘or’’; and 
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(iii) in subparagraph (C), by striking 
the period and inserting ‘‘; or’’; and 
(B) by adding at the end the following new 
subparagraph: 
‘‘(D) domestic source or content restric-
tions that would inhibit or impede the rapid ac-
quisition of the equipment or service.’’. 
SEC. 804. UNIFIED COMBATANT COMMAND FOR JOINT 
WARFIGHTING EXPERIMENTATION: ACQUISI-
TION AUTHORITY. 
Section 167a of title 10, United States Code, is 
amended— 
(1) in subsection (a), by striking ‘‘and acquire’’ 
and inserting ‘‘, acquire and sustain’’; and 
(2) by striking subsection (f). 
SEC. 805. QUALITY CONTROL IN PROCUREMENT OF SHIP 
CRITICAL 
SAFETY 
ITEMS 
AND 
RELATED 
SERVICES. 
(a) QUALITY CONTROL POLICY.—The Secretary of 
Defense shall prescribe in regulations a quality control 
policy for the procurement of ship critical safety items and 
the procurement of modifications, repair, and overhaul of 
such items. 
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(b) CONTENT
OF REGULATIONS.—The policy set 
forth in the regulations shall include the following require-
ments: 
(1) That the head of the design control activity 
for ship critical safety items establish processes to 
identify and manage the procurement, modification, 
repair, and overhaul of ship critical safety items. 
(2) That the head of the contracting activity for 
a ship critical safety item enter into a contract for 
the procurement, modification, repair, or overhaul of 
such item only with a source on a Qualified Manu-
facturers List or a source approved by the design 
control activity in accordance with section 2319 of 
title 10, United States Code. 
(3) That the ship critical safety items delivered, 
and the services performed with respect to ship crit-
ical safety items, meet all technical and quality re-
quirements specified by the design control activity. 
(c) DEFINITIONS.—In this section, the terms ‘‘ship 
critical safety item’’ and ‘‘design control activity’’ have the 
meanings given such terms in section 2319(g) of title 10, 
United States Code, as amended by subsection (d). 
(d) CONFORMING AMENDMENTS.—Section 2319 of 
title 10, United States Code, is amended— 
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(1) in subsection (c)(3), by inserting ‘‘or ship’’ 
after ‘‘aviation’’; and 
(2) in subsection (g)— 
(A) by redesignating paragraph (2) as 
paragraph (3); 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘ship critical safety item’ means 
any ship part, assembly, or support equipment con-
taining a critical characteristic whose failure, mal-
function, or absence may cause a catastrophic or 
critical failure resulting in loss or serious damage to 
the ship, or unacceptable risk of personal injury or 
loss of life.’’; and 
(C) in paragraph (3) (as redesignated)— 
(i) by inserting ‘‘or ship’’ after ‘‘avia-
tion’’ the first place it appears; and 
(ii) by inserting ‘‘or the seaworthiness 
of a ship system or equipment’’ after 
‘‘equipment’’. 
SEC. 806. EXTENSION OF SPECIAL TEMPORARY CONTRACT 
CLOSEOUT AUTHORITY. 
Section 804 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1541), as amended by section 852 of the Ronald W. 
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Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108–375; 118 Stat. 2021), is fur-
ther amended in subsection (d) by striking ‘‘September 
30, 2006’’ and inserting ‘‘September 30, 2007’’. 
SEC. 807. DEFENSE ACQUISITION CHALLENGE PROGRAM. 
Section 2359b of title 10, United States Code, is 
amended by striking subsection (j). 
Subtitle B—United States Defense 
Industrial Base Provisions 
SEC. 811. REPEAL OF THE MILITARY SYSTEM BREAKOUT 
LIST. 
Section 813 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 
1543) is repealed. 
Subtitle C—National Defense 
Stockpile 
SEC. 821. REVISION OF LIMITATIONS ON REQUIRED DIS-
POSALS OF CERTAIN MATERIALS IN NA-
TIONAL DEFENSE STOCKPILE. 
(a) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1997.—Section 3303 of the National De-
fense Authorization Act for Fiscal Year 1997 (Public Law 
104–201; 110 Stat. 2855; 50 U.S.C. 98d note), as amend-
ed by section 3402(f) of the National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113 
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Stat. 973), and section 3304(c) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107– 
107; 115 Stat. 1390), is further amended— 
(1) in subsection (a), by striking paragraph (2) 
and inserting the following new paragraph: 
‘‘(2) $720,000,000 during the twelve-fiscal year 
period ending September 30, 2008.’’; and 
(2) in subsection (b)(2), by striking ‘‘10-fiscal 
year period’’ and inserting ‘‘12-fiscal year period’’. 
(b) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1998.—Section 3305(a)(5) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public 
Law 105–85; 111 Stat. 2057; 50 U.S.C. 98d note), as 
amended by section 3305 of the National Defense Author-
ization Act for Fiscal Year 2002 (Public Law 107–107; 
115 Stat. 1390), is further amended by striking ‘‘2006’’ 
and inserting ‘‘2008’’. 
(c) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1999.—Section 3303(a) of the Strom Thur-
mond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105–261; 112 Stat. 2263; 50 U.S.C. 
98d note), as amended by section 3302 of the Ronald W. 
Reagan National Defense Authorization Act for Year 
2005 (Public Law 108–375; 118 Stat. 2193), and section 
3302(a) of the National Defense Authorization Act for 
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