537 
‘‘(D) is a critical function that is necessary 
to maintain sufficient organic expertise and 
technical capability; 
‘‘(E) has been performed by Department 
of Defense civilian employees at any time dur-
ing the previous 10-year period;’’. 
(2) by redesignating subsections (d) and (e) as 
subsections (f) and (g), respectively; 
(3) by inserting after subsection (c) the fol-
lowing new subsections (d) and (e): 
‘‘(d) DETERMINATIONS RELATING TO THE CONVER-
SION OF CERTAIN FUNCTIONS.—(1) Except as provided 
in paragraph (2), in determining whether a function 
should be converted to performance by Department of De-
fense civilian employees, the Secretary of Defense shall— 
‘‘(A) develop methodology for determining costs 
based on the guidance outlined in the Directive-Type 
Memorandum 09–007 entitled ‘Estimating and 
Comparing the Full Costs of Civilian and Military 
Manpower and Contractor Support’ or any successor 
guidance for the determination of costs when costs 
are the sole basis for the determination; 
‘‘(B) take into consideration any supplemental 
guidance issued by the Secretary of a military de-
538 
partment for determinations affecting functions of 
that military department; and 
‘‘(C) ensure that the difference in the cost of 
performing the function by a contractor compared to 
the cost of performing the function by Department 
of Defense civilian employees would be equal to or 
exceed the lesser of— 
‘‘(i) 10 percent of the personnel-related 
costs for performance of that function; or 
‘‘(ii) $10,000,000. 
‘‘(2) Paragraph (1) shall not apply to a function de-
scribed in subparagraph (A) of subsection (b)(1). 
‘‘(e) NOTIFICATION RELATING TO THE CONVERSION 
OF CERTAIN FUNCTIONS.—The Secretary of Defense shall 
establish procedures for the timely notification of any con-
tractor who performs a function that the Secretary plans 
to convert to performance by Department of Defense civil-
ian employees pursuant to subsection (a). The Secretary 
shall provide a copy of any such notification to the con-
gressional defense committees.’’; and 
(4) in subsection (g), as redesignated by para-
graph (2)— 
(A) by striking ‘‘this section’’ and all that 
follows and inserting ‘‘this section:’’; and
539 
(B) by adding at the end the following new 
paragraphs: 
‘‘(1) The term ‘functions closely associated with 
inherently governmental functions’ has the meaning 
given that term in section 2383(b)(3) of this title. 
‘‘(2) The term ‘acquisition function’ has the 
meaning given that term under section 1721(a) of 
this title. 
‘‘(3) The term ‘inherently governmental func-
tion’ has the meaning given that term in the Federal 
Activities Inventory Reform Act of 1998 (Public 
Law 105–270; 31 U. S.C. 501 note).’’. 
SEC. 940. ASSESSMENT OF APPROPRIATE DEPARTMENT OF 
DEFENSE 
AND 
CONTRACTOR 
PERSONNEL 
FOR THE DEFENSE MEDICAL READINESS 
TRAINING INSTITUTE. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall conduct an assessment to determine the appro-
priate mix of Department of Defense civilian personnel 
and contractor personnel to carry out the mission and 
functions of the Defense Medical Readiness Training In-
stitute. 
(b) FACTORS FOR CONSIDERATION.—In carrying out 
the assessment required under subsection (a), the Sec-
retary shall take into consideration the policy, guidance,
540 
procedures, and methodologies for total force management 
of the Department of Defense, including— 
(1) such policy, guidance, procedures, and 
methodologies described in sections 129 and 129a of 
title 10, United States Code, as amended by this 
Act; 
(2) manpower requirements for planning, pro-
gramming, and budgeting; 
(3) the Department of Defense strategic human 
capital plans developed pursuant to section 115b of 
such title; 
(4) the annual personnel authorization requests 
to Congress pursuant to section 115a of such title; 
and 
(5) a determination of the Secretary with re-
spect to whether the functions performed by the De-
fense Medical Readiness Training Institute are in-
herently governmental, closely associated with inher-
ently governmental, or commercial in nature. 
(c) OTHER ELEMENTS OF ASSESSMENT.—The as-
sessment required under subsection (a) shall include an 
assessment of each of the following: 
(1) The effect of distributed training at mul-
tiple locations in the United States on the ability of
541 
the Defense Medical Readiness Training Institute to 
accomplish its training mission. 
(2) The extent to which simulated training can 
be used effectively at locations remote from the De-
fense Medical Readiness Training Institute campus. 
(3) A cost-benefit analysis as outlined in Office 
of Management and Budget Circular A-94 of the use 
of simulated training versus training using class-
room instructors. 
(4) The budgetary effect of expanding the use 
of contractor-provided training to accomplish the 
mission of the Defense Medical Readiness Training 
Institute. 
(5) Any other matter relevant to the mission of 
the Defense Medical Readiness Training Institute 
that the Secretary determines is appropriate. 
(d) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report on the 
analysis required under subsection (a).
542 
Subtitle E—Quadrennial Roles and 
Missions and Related Matters 
SEC. 951. TRANSFER OF PROVISIONS RELATING TO QUAD-
RENNIAL ROLES AND MISSIONS REVIEW. 
(a) TRANSFER OF PROVISIONS RELATING TO AS-
SESSMENT OF ROLES AND MISSIONS.—Section 153(a)(4) 
of title 10, United States Code, is amended— 
(1) by redesignating subparagraphs (C), (D), 
(E), and (F) as subparagraphs (D), (E), (F), and 
(G), respectively; 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph (C): 
‘‘(C) Advising the Secretary on the roles and 
missions of the armed forces and on the assignment 
of functions to the armed forces in order to obtain 
maximum efficiency and effectiveness of the armed 
forces.’’; and 
(3) by amending subparagraph (G) (as redesig-
nated by paragraph (1)) to read as follows: 
‘‘(G) Identifying, assessing, and prioritizing 
joint military requirements (including existing sys-
tems and equipment) for defense acquisition, and 
identifying the core mission areas associated with 
each such requirement.’’.
543 
(b) REQUIREMENT FOR NATIONAL MILITARY STRAT-
EGY REVIEW TO BE CONSISTENT WITH QUADRENNIAL 
ROLES AND MISSIONS REVIEW.—Section 153(d)(2)(A) of 
title 10, United States Code, is amended— 
(1) by striking ‘‘and’’ at the end of clause (ii); 
(2) by striking the period and inserting ‘‘; and’’ 
at the end of clause (iii); and 
(3) by adding at the end the following new 
clause: 
‘‘(iv) the most recent quadrennial roles and 
missions review conducted by the Secretary of 
Defense pursuant to section 118b of this title.’’. 
(c) ASSESSMENT OF ROLES AND MISSIONS.—Section 
153 of such title is further amended by adding at the end 
the following new subsection: 
‘‘(e) ASSESSMENT OF ROLES AND MISSIONS.—(1) In 
each year in which the Secretary of Defense is required 
to conduct a quadrennial roles and missions review pursu-
ant to section 118b of this title, the Chairman shall pre-
pare and submit to the Secretary of Defense an assess-
ment of the roles and missions of the armed forces and 
the assignment of functions to the armed forces, together 
with any recommendations for changes in assignment that 
the Chairman considers necessary to achieve maximum ef-
ficiency and effectiveness of the armed forces.
544 
‘‘(2) The assessment shall be conducted so as to— 
‘‘(A) organize the significant missions of the 
armed forces into core mission areas that cover 
broad areas of military activity; and 
‘‘(B) ensure that core mission areas are defined 
and functions are assigned so as to avoid unneces-
sary duplication of effort among the armed forces. 
‘‘(3) The Secretary shall forward the report received 
under paragraph (1) in any year, with the Secretary’s 
comments thereon (if any), to Congress with the Sec-
retary’s next transmission to Congress of the annual De-
partment of Defense budget justification materials in sup-
port of the Department of Defense component of the 
budget of the President submitted under section 1105 of 
title 31 for the next fiscal year.’’. 
(d) CONFORMING AMENDMENTS.—Section 118b of 
title 10, United States Code, is amended— 
(1) by striking subsection (b); and 
(2) in subsection (c), by striking ‘‘Upon receipt 
of the Chairman’s assessment, and after giving ap-
propriate consideration to the Chairman’s rec-
ommendations, the Secretary’’ and inserting ‘‘The 
Secretary’’.
545 
SEC. 952. REVISIONS TO QUADRENNIAL ROLES AND MIS-
SIONS REVIEW. 
Section 118b of title 10, United States Code, as 
amended by section 951, is further amended— 
(1) in subsection (a), by striking ‘‘core com-
petencies and capabilities of the Department of De-
fense to perform and support such roles and mis-
sions’’ and inserting ‘‘functions and capabilities of 
the Department of Defense and its major compo-
nents to achieve the objectives of the national de-
fense strategy and the national military strategy’’; 
(2) by redesignating subsections (c) and (d) as 
subsections (b) and (c); 
(3) in subsection (b) (as so redesignated)— 
(A) by striking the subsection heading and 
all that follows through ‘‘shall identify—’’ and 
inserting ‘‘CONDUCT OF REVIEW.—Each quad-
rennial roles and missions review shall iden-
tify—’’; 
(B) in paragraph (2), by striking ‘‘core 
competencies and capabilities’’ and inserting 
‘‘functions and capabilities of each of the armed 
forces’’; 
(C) in paragraph (3), by striking ‘‘core 
competencies’’ and inserting ‘‘functions’’;
546 
(D) by striking ‘‘core competencies and’’ 
and inserting ‘‘the functions and the’’; and 
(E) in paragraph (5), by striking ‘‘core 
competencies’’ and inserting ‘‘functions’’; and 
(4) in subsection (d) (as so redesignated), by 
inserting ‘‘findings of the’’ before ‘‘quadrennial’’. 
SEC. 953. AMENDMENT TO PRESENTATION OF FUTURE- 
YEARS BUDGET AND COMPTROLLER GEN-
ERAL REPORT ON BUDGET JUSTIFICATION 
MATERIAL. 
(a) ORGANIZATION OF FUTURE-YEARS BUDGET.— 
(1) IN GENERAL.—Section 222(b) of title 10, 
United States Code, is amended by striking ‘‘on the 
basis of both major force programs and the core 
mission areas’’ and inserting ‘‘on the basis of major 
force programs and the core mission areas and func-
tions of each of the armed forces’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply with respect to the fu-
ture-years mission budget for fiscal year 2013 and 
each fiscal year thereafter. 
(b) REPORT REQUIRED.— 
(1) 
MATTERS
COVERED.—The 
Comptroller 
General of the United States shall prepare a report 
containing assessments of—
547 
(A) the sufficiency of Department of De-
fense regulations, policies, and guidance gov-
erning the construction of budget exhibits; 
(B) the current program element structure 
and content used to account for the budget ac-
tivity of the Department of the Defense; 
(C) the degree to which the Secretary of 
Defense has implemented the recommendations 
for improving the consistency, clarity, accuracy, 
and completeness of the Department of Defense 
budget documentation contained in Government 
Accountability Report GAO–07–1058; and 
(D) the degree to which the Department of 
Defense has complied with the Congressional 
intent and requirements of the amendments 
made by section 944 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public 
Law 110–181; 122 Stat. 289). 
(2) RECOMMENDATIONS.—The report required 
by this subsection shall also include such rec-
ommendations as the Comptroller General considers 
to be appropriate in order to improve the consist-
ency, clarity, accuracy, and completeness of the De-
partment of Defense budget justification material 
content and to improve the Department’s ability to
548 
identify and track resources by the core mission 
areas and functions of the armed forces as required 
by section 118b of title 10, United States Code. 
SEC. 954. CHAIRMAN OF THE JOINT CHIEFS OF STAFF AS-
SESSMENT OF CONTINGENCY PLANS. 
Section 153(b) of title 10, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘assessment 
of’’ and all that follows through the period and in-
serting: ‘‘assessment of— 
‘‘(A) the nature and magnitude of the stra-
tegic and military risks associated with exe-
cuting the missions called for under the current 
National Military Strategy; and 
‘‘(B) the critical deficiencies and strengths 
in force capabilities (including manpower, logis-
tics, intelligence, and mobility support) identi-
fied during the preparation and review of con-
tingency plans of each geographic combatant 
commander, and the effect of such deficiencies 
and strengths on strategic plans and on meet-
ing national security objectives and policy.’’; 
and 
(2) in paragraph (2)—