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(D) VACANCY.—In the event of a vacancy in
the Commission, the individual appointed to fill
the membership shall be of the same political
party as the individual vacating the member-
ship.
(3) DUTIES.—
(A) GENERAL
DUTIES.—The Commission
shall study and investigate the following matters:
(i) Federal agency contracting for the
reconstruction of Iraq and Afghanistan.
(ii) Federal agency contracting for the
logistical support of coalition forces in Op-
eration Iraqi Freedom and Operation En-
during Freedom.
(iii) Federal agency contracting for the
performance of security and intelligence
functions in Operation Iraqi Freedom and
Operation Enduring Freedom.
(B) SCOPE
OF
CONTRACTING
COVERED.—
The Federal agency contracting covered by this
paragraph includes contracts entered into both
in the United States and abroad for the perform-
ance of activities described in subparagraph (A),
whether performed in the United States or
abroad.
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(C) PARTICULAR DUTIES.—In carrying out
the study under this paragraph, the Commission
shall assess—
(i) the extent and impact of the reli-
ance of the Federal Government on contrac-
tors to perform functions (including secu-
rity, intelligence, and management func-
tions) in Operation Iraqi Freedom and Op-
eration Enduring Freedom;
(ii) the performance of the contracts
under review, and the mechanisms used to
manage the performance of the contracts
under review;
(iii) the extent of waste, fraud, abuse,
or mismanagement under such contracts;
(iv) the extent to which those respon-
sible for such waste, fraud, abuse, or mis-
management have been held financially or
legally accountable;
(v) the appropriateness of the organi-
zational structure, policies, practices, and
resources of the Department of Defense and
the Department of State for handling con-
tingency contract management and support;
and
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(vi) the extent of the misuse of force
and violations of the laws of war or Federal
law by contractors.
(4) REPORTS.—
(A) INTERIM
REPORT.—On January 15,
2009, the Commission shall submit to Congress
an interim report on the study carried out under
paragraph (3), including the results and find-
ings of the study as of that date.
(B) OTHER
REPORTS.—The Commission
may from time to time submit to Congress such
other reports on the study carried out under
paragraph (3) as the Commission considers ap-
propriate.
(C) FINAL
REPORT.—Not later than two
years after the date of the appointment of all of
the members of the Commission under paragraph
(2), the Commission shall submit to Congress a
report on the study carried out under paragraph
(3). The report shall—
(i) include the findings of the Commis-
sion;
(ii) identify lessons learned on the con-
tracting covered by the study; and
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(iii) include specific recommendations
for improvements to be made in—
(I) the process for developing con-
tract requirements for wartime con-
tracts and contracts for contingency
operations;
(II) the process for awarding con-
tracts and task orders for wartime con-
tracts and contracts for contingency
operations;
(III) the process for managing
and providing oversight for the per-
formance of wartime contracts and
contracts for contingency operations;
(IV) the process for holding con-
tractors and their employees account-
able for waste, fraud, abuse, or mis-
management under wartime contracts
and contracts for contingency oper-
ations;
(V) the process for determining
which functions are inherently govern-
mental and which functions are appro-
priate for performance by contractors
in an area of combat operations (in-
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cluding an area of a contingency oper-
ation), 
including 
a 
determination
whether the use of civilian contractors
to provide security in an area of com-
bat operations is a function that is in-
herently governmental;
(VI) the organizational structure,
resources, policies, and practices of the
Department of Defense and the Depart-
ment of State handling contract man-
agement and support for wartime con-
tracts and contracts for contingency
operations; and
(VII) the process by which roles
and responsibilities with respect to
wartime contracts and contracts for
contingency operations are distributed
among the various departments and
agencies of the Federal Government,
and 
interagency 
coordination 
and
communication mechanisms associated
with wartime contracts and contracts
for contingency operations.
(5) OTHER POWERS AND AUTHORITIES.—
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(A) HEARINGS AND EVIDENCE.—The Com-
mission or, on the authority of the Commission,
any subcommittee or member thereof, may, for
the purpose of carrying out this subsection—
(i) hold such hearings and sit and act
at such times and places, take such testi-
mony, receive such evidence, administer
such oaths (provided that the quorum for a
hearing shall be three members of the Com-
mission); and
(ii) provide for the attendance and tes-
timony of such witnesses and the production
of such books, records, correspondence,
memoranda, papers, and documents,
as the Commission or such designated sub-
committee or designated member may determine
advisable.
(B) INABILITY TO OBTAIN DOCUMENTS OR
TESTIMONY.—In the event the Commission is un-
able to obtain testimony or documents needed to
conduct its work, the Commission shall notify the
committees of Congress of jurisdiction and ap-
propriate investigative authorities.
(C) ACCESS TO INFORMATION.—The Com-
mission may secure directly from the Depart-
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ment of Defense and any other department or
agency of the Federal Government any informa-
tion or assistance that the Commission considers
necessary to enable the Commission to carry out
the requirements of this subsection. Upon request
of the Commission, the head of such department
or agency shall furnish such information expedi-
tiously to the Commission. Whenever informa-
tion or assistance requested by the Commission
is unreasonably refused or not provided, the
Commission shall report the circumstances to
Congress without delay.
(D) PERSONNEL.—The Commission shall
have the authorities provided in section 3161 of
title 5, United States Code, and shall be subject
to the conditions set forth in such section, except
to the extent that such conditions would be in-
consistent with the requirements of this sub-
section.
(E) DETAILEES.—Any employee of the Fed-
eral Government may be detailed to the Commis-
sion without reimbursement from the Commis-
sion, and such detailee shall retain the rights,
status, and privileges of his or her regular em-
ployment without interruption.
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(F) SECURITY
CLEARANCES.—The appro-
priate departments or agencies of the Federal
Government shall cooperate with the Commission
in expeditiously providing to the Commission
members and staff appropriate security clear-
ances to the extent possible pursuant to existing
procedures and requirements, except that no per-
son shall be provided with access to classified in-
formation under this section without the appro-
priate security clearances.
(G) VIOLATIONS OF LAW.—
(i) REFERRAL
TO
ATTORNEY
GEN-
ERAL.—The Commission may refer to the
Attorney General any violation or potential
violation of law identified by the Commis-
sion in carrying out its duties under this
subsection.
(ii) REPORTS ON RESULTS OF REFER-
RAL.—The Attorney General shall submit to
Congress a report on each prosecution, con-
viction, resolution, or other disposition that
results from a referral made under this sub-
paragraph.
(6) TERMINATION.—The Commission shall ter-
minate on the date that is 60 days after the date of
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the submittal of its final report under paragraph
(4)(C).
(7) CONTINGENCY OPERATION DEFINED.—In this
subsection, the term ‘‘contingency operation’’ has the
meaning given that term in section 101 of title 10,
United States Code.
(b) INVESTIGATION OF WASTE, FRAUD, ABUSE, AND
MISMANAGEMENT.—
(1) IN GENERAL.—The Special Inspector General
for Iraq Reconstruction shall, in collaboration with
the Inspector General of the Department of Defense,
the Inspector General of the Department of State, and
the Inspector General of the United States Agency for
International Development, conduct a series of audits
to identify potential waste, fraud, abuse, or mis-
management in the performance of—
(A) Department of Defense contracts and
subcontracts for the logistical support of coali-
tion forces in Operation Iraqi Freedom and Op-
eration Enduring Freedom; and
(B) Federal agency contracts and sub-
contracts for the performance of security and re-
construction functions in Operation Iraqi Free-
dom and Operation Enduring Freedom.
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(2) SCOPE
OF
AUDITS
OF
CONTRACTS.—Each
audit conducted pursuant to paragraph (1)(A) shall
focus on a specific contract, task order, or site of per-
formance under a contract or task order and shall ex-
amine, at a minimum, one or more of the following
issues:
(A) The manner in which requirements
were developed.
(B) The procedures under which the con-
tract or task order was awarded.
(C) The terms and conditions of the con-
tract or task order.
(D) The contractor’s staffing and method of
performance, including cost controls.
(E) The efficacy of Department of Defense
management and oversight, Department of State
management and oversight, and United States
Agency for International Development manage-
ment and oversight, including the adequacy of
staffing and training of officials responsible for
such management and oversight.
(F) The flow of information from the con-
tractor to officials responsible for contract man-
agement and oversight.
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(3) SCOPE OF AUDITS OF OTHER CONTRACTS.—
Each audit conducted pursuant to paragraph (1)(B)
shall focus on a specific contract, task order, or site
of performance under a contract or task order and
shall examine, at a minimum, one or more of the fol-
lowing issues:
(A) The manner in which the requirements
were developed and the contract or task order
was awarded.
(B) The manner in which the Federal agen-
cy exercised control over the contractor’s per-
formance.
(C) The extent to which operational field
commanders are able to coordinate or direct the
contractor’s performance in an area of combat
operations.
(D) The extent to which the functions per-
formed were appropriate for performance by a
contractor.
(E) The degree to which contractor employ-
ees were properly screened, selected, trained, and
equipped for the functions to be performed.
(F) The nature and extent of any incidents
of misconduct or unlawful activity by contractor
employees.
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(G) The extent to which any incidents of
misconduct or unlawful activity were reported,
documented, investigated, and (where appro-
priate) prosecuted.
(4) CONTINUATION OF SPECIAL INSPECTOR GEN-
ERAL.—
(A) IN GENERAL.—Notwithstanding section
3001(o) of the Emergency Supplemental Appro-
priations Act for Defense and for the Reconstruc-
tion of Iraq and Afghanistan, 2004 (Public Law
108–106; 5 U.S.C. App. 8G note), the Office of
the Special Inspector General for Iraq Recon-
struction shall not terminate until the date that
is 60 days after the date of the submittal under
paragraph (4)(C) of subsection (a) of the final
report of the Commission on Wartime Con-
tracting established by subsection (a).
(B) REAFFIRMATION
OF
CERTAIN
DUTIES
AND RESPONSIBILITIES.—Congress reaffirms that
the Special Inspector General for Iraq Recon-
struction retains the duties and responsibilities
in sections 4 of the Inspector General Act of 1978
(5 U.S.C. App. 4; relating to reports of criminal
violations to the Attorney General) and section 5
of the Inspector General Act of 1978 (5 U.S.C.
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App. 5; relating to reports to Congress) as ex-
pressly provided in subsections (f)(3) and (i)(3),
respectively, of section 3001 of the Emergency
Supplemental Appropriations Act for Defense
and for the Reconstruction of Iraq and Afghani-
stan, 2004.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated such sums as may be required
to carry out the provisions of this section.
SEC. 1540. MODIFICATION OF AUTHORITIES RELATED TO
THE OFFICE OF THE SPECIAL INSPECTOR
GENERAL FOR IRAQ RECONSTRUCTION.
(a) TERMINATION DATE.—Subsection (o)(1) of section
3001 of the Emergency Supplemental Appropriations Act
for Defense and for the Reconstruction of Iraq and Afghani-
stan, 2004 (Public Law 108–106; 117 Stat. 1238; 5 U.S.C.
App., note to section 8G of Public Law 95–452), as amend-
ed by section 1054(b) of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109–
364; 120 Stat. 2397), section 2 of the Iraq Reconstruction
Accountability Act of 2006 (Public Law 109–440), and sec-
tion 3801 of the U.S. Troop Readiness, Veterans’ Care,
Katrina Recovery, and Iraq Accountability Appropriations
Act, 2007 (Public Law 110–28; 121 Stat. 147) is amended
to read as follows:
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‘‘(1) The Office of the Inspector General shall termi-
nate 90 days after the balance of funds appropriated or oth-
erwise made available for the reconstruction of Iraq is less
than $250,000,000.’’.
(b) JURISDICTION OVER RECONSTRUCTION FUNDS.—
Such section is further amended by adding at the end the
following new subsection:
‘‘(p) RULE OF CONSTRUCTION.—For purposes of car-
rying out the duties of the Special Inspector General for
Iraq Reconstruction, any United States funds appropriated
or otherwise made available for fiscal years 2006 through
2008 for the reconstruction of Iraq, irrespective of the des-
ignation of such funds, shall be deemed to be amounts ap-
propriated or otherwise made available to the Iraq Relief
and Reconstruction Fund.’’.
(c) HIRING AUTHORITY.—Subsection (h)(1) of such
section is amended by inserting after ‘‘pay rates’’ the fol-
lowing: ‘‘, and may exercise the authorities of subsections
(b) through (i) of section 3161 of title 5, United States Code
(without regard to subsection (a) of such section)’’.
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SEC. 1541. TRACKING AND MONITORING OF DEFENSE ARTI-
CLES PROVIDED TO THE GOVERNMENT OF
IRAQ AND OTHER INDIVIDUALS AND GROUPS
IN IRAQ.
(a) EXPORT AND TRANSFER CONTROL POLICY.—The
President, in coordination with the Secretary of State and
the Secretary of Defense, shall implement a policy to control
the export and transfer of defense articles into Iraq, includ-
ing implementation of the registration and monitoring sys-
tem under subsection (c).
(b) REQUIREMENT
TO IMPLEMENT CONTROL SYS-
TEM.—Notwithstanding any other provision of law, no de-
fense articles may be provided to the Government of Iraq
or any other group, organization, citizen, or resident of Iraq
until the Secretary of State certifies that a registration and
monitoring system meeting the requirements set forth in
subsection (c) has been established.
(c) REGISTRATION AND MONITORING SYSTEM.—The
registration and monitoring system required under this sec-
tion shall include—
(1) the registration of the serial numbers of all
small arms provided to the Government of Iraq or to
other groups, organizations, citizens, or residents of
Iraq;
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(2) a program of enhanced end-use monitoring of
all lethal defense articles provided to such entities or
individuals; and
(3) a detailed record of the origin, shipping, and
distribution of all defense articles transferred under
the Iraq Security Forces Fund or any other security
assistance program to such entities or individuals in
Iraq.
(d) REVIEW.—The President shall periodically review
the items subject to the registration and monitoring require-
ments under subsection (c) to determine what items, if any,
no longer warrant export controls under such subsection.
The results of such reviews shall be reported to the Speaker
of the House of Representatives and to the Committee on
Foreign Relations, the Committee on Armed Services, and
the Committee on Banking, Housing, and Urban Affairs
of the Senate. The President may not exempt any item from
such requirements until 30 days after the date on which
the President has provided notice of the proposed removal
to the Committee on Foreign Affairs of the House of Rep-
resentatives and to the Committee on Foreign Relations and
the Committee on Armed Services of the Senate in accord-
ance with the procedures applicable to reprogramming noti-
fications under section 634A(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2394–1). Such notice shall describe
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the nature of any controls to be imposed on that item under
any other provision of law.
(e) DEFINITIONS.—In this section:
(1) DEFENSE ARTICLE.—The term ‘‘defense arti-
cle’’ has the meaning given the term in section 644(d)
of the Foreign Assistance Act of 1961 (22 U.S.C.
2403)(d)).
(2) SMALL
ARMS.—The term ‘‘small arms’’
means—
(A) handguns;
(B) shoulder-fired weapons;
(C) light automatic weapons up to and in-
cluding .50 caliber machine guns;
(D) recoilless rifles up to and including
106mm;
(E) mortars up to and including 81mm;
(F) rocket launchers, man-portable;
(G) grenade launchers, rifle and shoulder
fired; and
(H) individually operated weapons which
are portable or can be fired without special
mounts or firing devices and which have poten-
tial use in civil disturbances and are vulnerable
to theft.
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(f) EFFECTIVE DATE.—This section shall take effect 90
days after the date of the enactment of this Act, unless the
President certifies in writing to Congress that it is in the
vital interest of the United States to delay the effective date
of this section by an additional period of up to 90 days,
including an explanation of such vital interest, in which
case the section shall take effect on such later effective date.
SEC. 1542. SPECIAL INSPECTOR GENERAL FOR AFGHANI-
STAN RECONSTRUCTION.
(a) FINDINGS.—Congress makes the following findings:
(1) A democratic, stable, and prosperous Afghan-
istan is vital to the national security of the United
States and to combating international terrorism.
(2) Since the fall of the Taliban, the United
States 
has 
provided 
Afghanistan 
with 
over
$20,000,000,000 in reconstruction and security assist-
ance. However, repeated and documented incidents of
waste, fraud, and abuse in the utilization of these
funds have undermined reconstruction efforts.
(3) There is a stronger need for vigorous over-
sight of spending by the United States on reconstruc-
tion programs and projects in Afghanistan.
(4) The Government Accountability Office (GAO)
and departmental Inspectors General provide valuable
information on such activities.
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(5) The congressional oversight process requires
more timely reporting of reconstruction activities in
Afghanistan that encompasses the efforts of the De-
partment of State, the Department of Defense, and the
United States Agency for International Development
and highlights specific acts of waste, fraud, and
abuse.
(6) One example of such successful reporting is
provided by the Special Inspector General for Iraq
Reconstruction (SIGIR), which has met this objective
in the case of Iraq.
(7) The establishment of a Special Inspector
General for Afghanistan Reconstruction (SIGAR) po-
sition using SIGIR as a model will help achieve this
objective in Afghanistan. This position will help Con-
gress and the American people to better understand
the challenges facing United States programs and
projects in that crucial country.
(8) It is a priority for Congress to establish a
Special Inspector General for Afghanistan position
with similar responsibilities and duties as the Special
Inspector General for Iraq Reconstruction. This new
position will monitor United States assistance to Af-
ghanistan in the civilian and security sectors, under-
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taking efforts similar to those of the Special Inspector
General for Iraq Reconstruction.
(b) OFFICE OF INSPECTOR GENERAL.—There is hereby
established the Office of the Special Inspector General for
Afghanistan Reconstruction.
(c) APPOINTMENT
OF
INSPECTOR
GENERAL; RE-
MOVAL.—
(1) APPOINTMENT.—The head of the Office of the
Special Inspector General for Afghanistan Recon-
struction is the Special Inspector General for Afghan-
istan Reconstruction (in this section referred to as the
‘‘Inspector General’’), who shall be appointed by the
President. The President may appoint the Special In-
spector General for Iraq Reconstruction to serve as the
Special Inspector General for Afghanistan Recon-
struction, in which case the Special Inspector General
for Iraq Reconstruction shall have all of the duties,
responsibilities, and authorities set forth under this
section with respect to such appointed position for the
purpose of carrying out this section.
(2) QUALIFICATIONS.—The appointment of the
Inspector General shall be made solely on the basis of
integrity and demonstrated ability in accounting, au-
diting, financial analysis, law, management analysis,
public administration, or investigations.
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(3) DEADLINE FOR APPOINTMENT.—The nomina-
tion of an individual as Inspector General shall be
made not later than 30 days after the date of the en-
actment of this Act.
(4) REMOVAL.—The Inspector General shall be
removable from office in accordance with the provi-
sions of section 3(b) of the Inspector General Act of
1978 (5 U.S.C. App.).
(5) PROHIBITION
ON
POLITICAL
ACTIVITIES.—
For purposes of section 7324 of title 5, United States
Code, the Inspector General shall not be considered an
employee who determines policies to be pursued by the
United States in the nationwide administration of
Federal law.
(6) COMPENSATION.—The annual rate of basic
pay of the Inspector General shall be the annual rate
of basic pay provided for positions at level IV of the
Executive Schedule under section 5315 of title 5,
United States Code.
(d) SUPERVISION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the Inspector General shall report directly
to, and be under the general supervision of, the Sec-
retary of State and the Secretary of Defense.
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(2) INDEPENDENCE
TO
CONDUCT
INVESTIGA-
TIONS AND AUDITS.—No officer of the Department of
Defense, the Department of State, or the United
States Agency for International Development shall
prevent or prohibit the Inspector General from initi-
ating, carrying out, or completing any audit or inves-
tigation, or from issuing any subpoena during the
course of any audit or investigation.
(e) DUTIES.—
(1) OVERSIGHT OF AFGHANISTAN RECONSTRUC-
TION.—It shall be the duty of the Inspector General
to conduct, supervise, and coordinate audits and in-
vestigations of the treatment, handling, and expendi-
ture of appropriated funds by the United States Gov-
ernment, and of the programs, operations, and con-
tracts carried out utilizing such funds in Afghanistan
in order to prevent and detect waste, fraud, and
abuse, including—
(A) the oversight and accounting of the obli-
gation and expenditure of such funds;
(B) the monitoring and review of recon-
struction activities funded by such funds;
(C) the monitoring and review of contracts
funded by such funds;
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(D) the monitoring and review of the trans-
fer of such funds and associated information be-
tween and among the departments, agencies, and
entities of the United States Government, and
private and nongovernmental entities;
(E) the maintenance of records on the use
of such funds to facilitate future audits and in-
vestigations of the use of such funds;
(F) the monitoring and review of the effec-
tiveness of United States coordination with the
Government of Afghanistan and other donor
countries in the implementation of the Afghani-
stan Compact and the Afghanistan National De-
velopment Strategy and the efficient utilization
of funds for economic reconstruction, social and
political development, and security assistance;
and
(G) the investigation of overpayments such
as duplicate payments or duplicate billing and
any potential unethical or illegal actions of Fed-
eral employees, contractors, or affiliated entities
and the referral of such reports, as necessary, to
the Department of Justice to ensure further in-
vestigations, prosecutions, recovery of further
funds, or other remedies.