nance, of which not to exceed $700,000 is available for 
emergencies and extraordinary expenses to be expended on 
the approval or authority of the Inspector General, and 
payments may be made on the Inspector General’s certifi-
cate of necessity for confidential military purposes; and 
of which $1,400,000, to remain available until September 
30, 2009, shall be for Procurement. 
TITLE VII 
RELATED AGENCIES 
CENTRAL INTELLIGENCE AGENCY RETIREMENT AND 
DISABILITY SYSTEM FUND 
For payment to the Central Intelligence Agency Re-
tirement and Disability System Fund, to maintain the 
proper funding level for continuing the operation of the 
Central Intelligence Agency Retirement and Disability 
System, $256,400,000. 
INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Intelligence Commu-
nity Management Account, $597,111,000, of which 
$27,454,000 for the Advanced Research and Development 
Committee shall remain available until September 30, 
2008: Provided, That of the funds appropriated under this 
heading, $39,000,000 shall be transferred to the Depart-
ment of Justice for the National Drug Intelligence Center
to support the Department of Defense’s counter-drug in-
telligence responsibilities, and of the said amount, 
$1,500,000 for Procurement shall remain available until 
September 30, 2009 and $1,000,000 for Research, devel-
opment, test and evaluation shall remain available until 
September 30, 2008: Provided further, That the National 
Drug Intelligence Center shall maintain the personnel and 
technical resources to provide timely support to law en-
forcement authorities and the intelligence community by 
conducting document and computer exploitation of mate-
rials collected in Federal, State, and local law enforcement 
activity associated with counter-drug, counter-terrorism, 
and national security investigations and operations. 
TITLE VIII 
GENERAL PROVISIONS 
SEC. 8001. No part of any appropriation contained 
in this Act shall be used for publicity or propaganda pur-
poses not authorized by the Congress. 
SEC. 8002. During the current fiscal year, provisions 
of law prohibiting the payment of compensation to, or em-
ployment of, any person not a citizen of the United States 
shall not apply to personnel of the Department of Defense: 
Provided, That salary increases granted to direct and indi-
rect hire foreign national employees of the Department of 
Defense funded by this Act shall not be at a rate in excess
of the percentage increase authorized by law for civilian 
employees of the Department of Defense whose pay is 
computed under the provisions of section 5332 of title 5, 
United States Code, or at a rate in excess of the percent-
age increase provided by the appropriate host nation to 
its own employees, whichever is higher: Provided further, 
That this section shall not apply to Department of De-
fense foreign service national employees serving at United 
States diplomatic missions whose pay is set by the Depart-
ment of State under the Foreign Service Act of 1980: Pro-
vided further, That the limitations of this provision shall 
not apply to foreign national employees of the Department 
of Defense in the Republic of Turkey. 
SEC. 8003. No part of any appropriation contained 
in this Act shall remain available for obligation beyond 
the current fiscal year, unless expressly so provided herein. 
SEC. 8004. No more than 20 percent of the appro-
priations in this Act which are limited for obligation dur-
ing the current fiscal year shall be obligated during the 
last 2 months of the fiscal year: Provided, That this sec-
tion shall not apply to obligations for support of active 
duty training of reserve components or summer camp 
training of the Reserve Officers’ Training Corps.
(TRANSFER OF FUNDS) 
SEC. 8005. Upon determination by the Secretary of 
Defense that such action is necessary in the national inter-
est, he may, with the approval of the Office of Manage-
ment and Budget, transfer not to exceed $4,750,000,000 
of working capital funds of the Department of Defense 
or funds made available in this Act to the Department 
of Defense for military functions (except military con-
struction) between such appropriations or funds or any 
subdivision thereof, to be merged with and to be available 
for the same purposes, and for the same time period, as 
the appropriation or fund to which transferred: Provided, 
That such authority to transfer may not be used unless 
for higher priority items, based on unforeseen military re-
quirements, than those for which originally appropriated 
and in no case where the item for which funds are re-
quested has been denied by the Congress: Provided further, 
That the Secretary of Defense shall notify the Congress 
promptly of all transfers made pursuant to this authority 
or any other authority in this Act: Provided further, That 
no part of the funds in this Act shall be available to pre-
pare or present a request to the Committees on Appropria-
tions for reprogramming of funds, unless for higher pri-
ority items, based on unforeseen military requirements, 
than those for which originally appropriated and in no
case where the item for which reprogramming is requested 
has been denied by the Congress: Provided further, That 
a request for multiple reprogrammings of funds using au-
thority provided in this section must be made prior to 
June 30, 2007: Provided further, That transfers among 
military personnel appropriations shall not be taken into 
account for purposes of the limitation on the amount of 
funds that may be transferred under this section. 
(TRANSFER OF FUNDS) 
SEC. 8006. During the current fiscal year, cash bal-
ances in working capital funds of the Department of De-
fense established pursuant to section 2208 of title 10, 
United States Code, may be maintained in only such 
amounts as are necessary at any time for cash disburse-
ments to be made from such funds: Provided, That trans-
fers may be made between such funds: Provided further, 
That transfers may be made between working capital 
funds and the ‘‘Foreign Currency Fluctuations, Defense’’ 
appropriation and the ‘‘Operation and Maintenance’’ ap-
propriation accounts in such amounts as may be deter-
mined by the Secretary of Defense, with the approval of 
the Office of Management and Budget, except that such 
transfers may not be made unless the Secretary of Defense 
has notified the Congress of the proposed transfer. Except 
in amounts equal to the amounts appropriated to working
capital funds in this Act, no obligations may be made 
against a working capital fund to procure or increase the 
value of war reserve material inventory, unless the Sec-
retary of Defense has notified the Congress prior to any 
such obligation. 
SEC. 8007. Funds appropriated by this Act may not 
be used to initiate a special access program without prior 
notification 30 calendar days in advance to the congres-
sional defense committees. 
SEC. 8008. None of the funds provided in this Act 
shall be available to initiate: (1) a multiyear contract that 
employs economic order quantity procurement in excess of 
$20,000,000 in any 1 year of the contract or that includes 
an unfunded contingent liability in excess of $20,000,000; 
or (2) a contract for advance procurement leading to a 
multiyear contract that employs economic order quantity 
procurement in excess of $20,000,000 in any 1 year, un-
less the congressional defense committees have been noti-
fied at least 30 days in advance of the proposed contract 
award: Provided, That no part of any appropriation con-
tained in this Act shall be available to initiate a multiyear 
contract for which the economic order quantity advance 
procurement is not funded at least to the limits of the 
Government’s liability: Provided further, That no part of 
any appropriation contained in this Act shall be available
to initiate multiyear procurement contracts for any sys-
tems or component thereof if the value of the multiyear 
contract would exceed $500,000,000 unless specifically 
provided in this Act: Provided further, That no multiyear 
procurement contract can be terminated without 10-day 
prior notification to the congressional defense committees: 
Provided further, That the execution of multiyear author-
ity shall require the use of a present value analysis to de-
termine lowest cost compared to an annual procurement: 
Provided further, That none of the funds provided in this 
Act may be used for a multiyear contract executed after 
the date of the enactment of this Act unless in the case 
of any such contract—
(1) the Secretary of Defense has submitted to 
Congress a budget request for full funding of units 
to be procured through the contract and, in the case 
of a contract for procurement of aircraft, that in-
cludes, for any aircraft unit to be procured through 
the contract for which procurement funds are re-
quested in that budget request for production be-
yond advance procurement activities in the fiscal 
year covered by the budget, full funding of procure-
ment of such unit in that fiscal year; 
(2) cancellation provisions in the contract do 
not include consideration of recurring manufacturing
costs of the contractor associated with the produc-
tion of unfunded units to be delivered under the con-
tract; 
(3) the contract provides that payments to the 
contractor under the contract shall not be made in 
advance of incurred costs on funded units; and 
(4) the contract does not provide for a price ad-
justment based on a failure to award a follow-on 
contract. 
Funds appropriated in title III of this Act may be 
used for a multiyear procurement contract as follows: 
C–17 Globemaster; MH–60R Helicopters; MH–60R 
Helicopter mission equipment; and V–22 Osprey. 
SEC. 8009. Within the funds appropriated for the op-
eration and maintenance of the Armed Forces, funds are 
hereby appropriated pursuant to section 401 of title 10, 
United States Code, for humanitarian and civic assistance 
costs under chapter 20 of title 10, United States Code. 
Such funds may also be obligated for humanitarian and 
civic assistance costs incidental to authorized operations 
and pursuant to authority granted in section 401 of chap-
ter 20 of title 10, United States Code, and these obliga-
tions shall be reported as required by section 401(d) of 
title 10, United States Code: Provided, That funds avail-
able for operation and maintenance shall be available for
providing humanitarian and similar assistance by using 
Civic Action Teams in the Trust Territories of the Pacific 
Islands and freely associated states of Micronesia, pursu-
ant to the Compact of Free Association as authorized by 
Public Law 99–239: Provided further, That upon a deter-
mination by the Secretary of the Army that such action 
is beneficial for graduate medical education programs con-
ducted at Army medical facilities located in Hawaii, the 
Secretary of the Army may authorize the provision of med-
ical services at such facilities and transportation to such 
facilities, on a nonreimbursable basis, for civilian patients 
from American Samoa, the Commonwealth of the North-
ern Mariana Islands, the Marshall Islands, the Federated 
States of Micronesia, Palau, and Guam. 
SEC. 8010. (a) During fiscal year 2007, the civilian 
personnel of the Department of Defense may not be man-
aged on the basis of any end-strength, and the manage-
ment of such personnel during that fiscal year shall not 
be subject to any constraint or limitation (known as an 
end-strength) on the number of such personnel who may 
be employed on the last day of such fiscal year. 
(b) The fiscal year 2008 budget request for the De-
partment of Defense as well as all justification material 
and other documentation supporting the fiscal year 2008 
Department of Defense budget request shall be prepared
and submitted to the Congress as if subsections (a) and 
(b) of this provision were effective with regard to fiscal 
year 2007. 
(c) Nothing in this section shall be construed to apply 
to military (civilian) technicians. 
SEC. 8011. None of the funds made available by this 
Act shall be used in any way, directly or indirectly, to in-
fluence congressional action on any legislation or appro-
priation matters pending before the Congress. 
SEC. 8012. None of the funds appropriated by this 
Act shall be available for the basic pay and allowances of 
any member of the Army participating as a full-time stu-
dent and receiving benefits paid by the Secretary of Vet-
erans Affairs from the Department of Defense Education 
Benefits Fund when time spent as a full-time student is 
credited toward completion of a service commitment: Pro-
vided, That this section shall not apply to those members 
who have reenlisted with this option prior to October 1, 
1987: Provided further, That this section applies only to 
active components of the Army. 
SEC. 8013. (a) LIMITATION
ON CONVERSION
TO 
CONTRACTOR PERFORMANCE.—None of the funds appro-
priated by this Act shall be available to convert to con-
tractor performance an activity or function of the Depart-
ment of Defense that, on or after the date of the enact-
ment of this Act, is performed by more than 10 Depart-
ment of Defense civilian employees unless—
(1) the conversion is based on the result of a 
public-private competition that includes a most effi-
cient and cost effective organization plan developed 
by such activity or function; 
(2) the Competitive Sourcing Official deter-
mines that, over all performance periods stated in 
the solicitation of offers for performance of the ac-
tivity or function, the cost of performance of the ac-
tivity or function by a contractor would be less costly 
to the Department of Defense by an amount that 
equals or exceeds the lesser of—
(A) 10 percent of the most efficient organi-
zation’s personnel-related costs for performance 
of that activity or function by Federal employ-
ees; or 
(B) $10,000,000; and 
(3) the contractor does not receive an advan-
tage for a proposal that would reduce costs for the 
Department of Defense by—
(A) not making an employer-sponsored 
health insurance plan available to the workers 
who are to be employed in the performance of 
that activity or function under the contract; or
(B) offering to such workers an employer-
sponsored health benefits plan that requires the 
employer to contribute less towards the pre-
mium or subscription share than the amount 
that is paid by the Department of Defense for 
health benefits for civilian employees under 
chapter 89 of title 5, United States Code. 
(b) EXCEPTIONS.—
(1) The Department of Defense, without regard 
to subsection (a) of this section or subsections (a), 
(b), or (c) of section 2461 of title 10, United States 
Code, and notwithstanding any administrative regu-
lation, requirement, or policy to the contrary shall 
have full authority to enter into a contract for the 
performance of any commercial or industrial type 
function of the Department of Defense that—
(A) is included on the procurement list es-
tablished pursuant to section 2 of the Javits-
Wagner-O’Day Act (41 U.S.C. 47); 
(B) is planned to be converted to perform-
ance by a qualified nonprofit agency for the 
blind or by a qualified nonprofit agency for 
other severely handicapped individuals in ac-
cordance with that Act; or
(C) is planned to be converted to perform-
ance by a qualified firm under at least 51 per-
cent ownership by an Indian tribe, as defined in 
section 4(e) of the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 
450b(e)), or a Native Hawaiian Organization, 
as defined in section 8(a)(15) of the Small 
Business Act (15 U.S.C. 637(a)(15)). 
(2) This section shall not apply to depot con-
tracts or contracts for depot maintenance as pro-
vided in sections 2469 and 2474 of title 10, United 
States Code. 
(c) TREATMENT OF CONVERSION.—The conversion 
of any activity or function of the Department of Defense 
under the authority provided by this section shall be cred-
ited toward any competitive or outsourcing goal, target, 
or measurement that may be established by statute, regu-
lation, or policy and is deemed to be awarded under the 
authority of, and in compliance with, subsection (h) of sec-
tion 2304 of title 10, United States Code, for the competi-
tion or outsourcing of commercial activities. 
(TRANSFER OF FUNDS) 
SEC. 8014. Funds appropriated in title III of this Act 
for the Department of Defense Pilot Mentor-Protege Pro-
gram may be transferred to any other appropriation con-
tained in this Act solely for the purpose of implementing 
a Mentor-Protege Program developmental assistance 
agreement pursuant to section 831 of the National De-
fense Authorization Act for Fiscal Year 1991 (Public Law 
101–510; 10 U.S.C. 2302 note), as amended, under the 
authority of this provision or any other transfer authority 
contained in this Act. 
SEC. 8015. None of the funds in this Act may be 
available for the purchase by the Department of Defense 
(and its departments and agencies) of welded shipboard 
anchor and mooring chain 4 inches in diameter and under 
unless the anchor and mooring chain are manufactured 
in the United States from components which are substan-
tially manufactured in the United States: Provided, That 
for the purpose of this section manufactured will include 
cutting, heat treating, quality control, testing of chain and 
welding (including the forging and shot blasting process): 
Provided further, That for the purpose of this section sub-
stantially all of the components of anchor and mooring 
chain shall be considered to be produced or manufactured 
in the United States if the aggregate cost of the compo-
nents produced or manufactured in the United States ex-
ceeds the aggregate cost of the components produced or 
manufactured outside the United States: Provided further, 
That when adequate domestic supplies are not available
to meet Department of Defense requirements on a timely 
basis, the Secretary of the service responsible for the pro-
curement may waive this restriction on a case-by-case 
basis by certifying in writing to the Committees on Appro-
priations that such an acquisition must be made in order 
to acquire capability for national security purposes. 
SEC. 8016. None of the funds available to the De-
partment of Defense may be used to demilitarize or dis-
pose of M–1 Carbines, M–1 Garand rifles, M–14 rifles, 
.22 caliber rifles, .30 caliber rifles, or M–1911 pistols. 
SEC. 8017. No more than $500,000 of the funds ap-
propriated or made available in this Act shall be used dur-
ing a single fiscal year for any single relocation of an orga-
nization, unit, activity or function of the Department of 
Defense into or within the National Capital Region: Pro-
vided, That the Secretary of Defense may waive this re-
striction on a case-by-case basis by certifying in writing 
to the congressional defense committees that such a relo-
cation is required in the best interest of the Government. 
SEC. 8018. In addition to the funds provided else-
where in this Act, $8,000,000 is appropriated only for in-
centive payments authorized by section 504 of the Indian 
Financing Act of 1974 (25 U.S.C. 1544): Provided, That 
a prime contractor or a subcontractor at any tier that 
makes a subcontract award to any subcontractor or sup-
plier as defined in section 1544 of title 25, United States 
Code or a small business owned and controlled by an indi-
vidual or individuals defined under section 4221(9) of title 
25, United States Code shall be considered a contractor 
for the purposes of being allowed additional compensation 
under section 504 of the Indian Financing Act of 1974 
(25 U.S.C. 1544) whenever the prime contract or sub-
contract amount is over $500,000 and involves the ex-
penditure of funds appropriated by an Act making Appro-
priations for the Department of Defense with respect to 
any fiscal year: Provided further, That notwithstanding 
section 430 of title 41, United States Code, this section 
shall be applicable to any Department of Defense acquisi-
tion of supplies or services, including any contract and any 
subcontract at any tier for acquisition of commercial items 
produced or manufactured, in whole or in part by any sub-
contractor or supplier defined in section 1544 of title 25, 
United States Code or a small business owned and con-
trolled by an individual or individuals defined under sec-
tion 4221(9) of title 25, United States Code: Provided fur-
ther, That, during the current fiscal year and hereafter, 
businesses certified as 8(a) by the Small Business Admin-
istration pursuant to section 8(a)(15) of Public Law 85–
536, as amended, shall have the same status as other pro-
gram participants under section 602 of Public Law 100–
656, 102 Stat. 3825 (Business Opportunity Development 
Reform Act of 1988) for purposes of contracting with 
agencies of the Department of Defense. 
SEC. 8019. None of the funds appropriated by this 
Act shall be available to perform any cost study pursuant 
to the provisions of OMB Circular A–76 if the study being 
performed exceeds a period of 24 months after initiation 
of such study with respect to a single function activity or 
30 months after initiation of such study for a multi-func-
tion activity. 
SEC. 8020. Funds appropriated by this Act for the 
American Forces Information Service shall not be used for 
any national or international political or psychological ac-
tivities. 
SEC. 8021. During the current fiscal year, the De-
partment of Defense is authorized to incur obligations of 
not to exceed $350,000,000 for purposes specified in sec-
tion 2350j(c) of title 10, United States Code, in anticipa-
tion of receipt of contributions, only from the Government 
of Kuwait, under that section: Provided, That upon re-
ceipt, such contributions from the Government of Kuwait 
shall be credited to the appropriations or fund which in-
curred such obligations.
SEC. 8022. (a) Of the funds made available in this 
Act, not less than $36,188,000 shall be available for the 
Civil Air Patrol Corporation, of which—
(1) $25,087,000 shall be available from ‘‘Oper-
ation and Maintenance, Air Force’’ to support Civil 
Air Patrol Corporation operation and maintenance, 
readiness, counterdrug activities, and drug demand 
reduction activities involving youth programs; 
(2) $10,193,000 shall be available from ‘‘Air-
craft Procurement, Air Force’’; and 
(3) $908,000 shall be available from ‘‘Other 
Procurement, Air Force’’ for vehicle procurement. 
(b) The Secretary of the Air Force should waive reim-
bursement for any funds used by the Civil Air Patrol for 
counter-drug activities in support of Federal, State, and 
local government agencies. 
SEC. 8023. (a) None of the funds appropriated in this 
Act are available to establish a new Department of De-
fense (department) federally funded research and develop-
ment center (FFRDC), either as a new entity, or as a 
separate entity administrated by an organization man-
aging another FFRDC, or as a nonprofit membership cor-
poration consisting of a consortium of other FFRDCs and 
other non-profit entities.
(b) No member of a Board of Directors, Trustees, 
Overseers, Advisory Group, Special Issues Panel, Visiting 
Committee, or any similar entity of a defense FFRDC, 
and no paid consultant to any defense FFRDC, except 
when acting in a technical advisory capacity, may be com-
pensated for his or her services as a member of such enti-
ty, or as a paid consultant by more than one FFRDC in 
a fiscal year: Provided, That a member of any such entity 
referred to previously in this subsection shall be allowed 
travel expenses and per diem as authorized under the Fed-
eral Joint Travel Regulations, when engaged in the per-
formance of membership duties. 
(c) Notwithstanding any other provision of law, none 
of the funds available to the department from any source 
during fiscal year 2007 may be used by a defense FFRDC, 
through a fee or other payment mechanism, for construc-
tion of new buildings, for payment of cost sharing for 
projects funded by Government grants, for absorption of 
contract overruns, or for certain charitable contributions, 
not to include employee participation in community service 
and/or development. 
(d) Notwithstanding any other provision of law, of 
the funds available to the department during fiscal year 
2007, not more than 5,417 staff years of technical effort 
(staff years) may be funded for defense FFRDCs: Pro-
vided, That this subsection shall not apply to staff years 
funded in the National Intelligence Program (NIP) and 
the Military Intelligence Program (MIP). 
(e) The Secretary of Defense shall, with the submis-
sion of the department’s fiscal year 2008 budget request, 
submit a report presenting the specific amounts of staff 
years of technical effort to be allocated for each defense 
FFRDC during that fiscal year. 
(f) Notwithstanding any other provision of this Act, 
the total amount appropriated in this Act for FFRDCs 
is hereby reduced by $25,000,000. 
SEC. 8024. None of the funds appropriated or made 
available in this Act shall be used to procure carbon, alloy 
or armor steel plate for use in any Government-owned fa-
cility or property under the control of the Department of 
Defense which were not melted and rolled in the United 
States or Canada: Provided, That these procurement re-
strictions shall apply to any and all Federal Supply Class 
9515, American Society of Testing and Materials (ASTM) 
or American Iron and Steel Institute (AISI) specifications 
of carbon, alloy or armor steel plate: Provided further, 
That the Secretary of the military department responsible 
for the procurement may waive this restriction on a case-
by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the
Senate that adequate domestic supplies are not available 
to meet Department of Defense requirements on a timely 
basis and that such an acquisition must be made in order 
to acquire capability for national security purposes: Pro-
vided further, That these restrictions shall not apply to 
contracts which are in being as of the date of the enact-
ment of this Act. 
SEC. 8025. For the purposes of this Act, the term 
‘‘congressional defense committees’’ means the Armed 
Services Committee of the House of Representatives, the 
Armed Services Committee of the Senate, the Sub-
committee on Defense of the Committee on Appropriations 
of the Senate, and the Subcommittee on Defense of the 
Committee on Appropriations of the House of Representa-
tives. 
SEC. 8026. During the current fiscal year, the De-
partment of Defense may acquire the modification, depot 
maintenance and repair of aircraft, vehicles and vessels 
as well as the production of components and other De-
fense-related articles, through competition between De-
partment of Defense depot maintenance activities and pri-
vate firms: Provided, That the Senior Acquisition Execu-
tive of the military department or Defense Agency con-
cerned, with power of delegation, shall certify that success-
ful bids include comparable estimates of all direct and in-
direct costs for both public and private bids: Provided fur-
ther, That Office of Management and Budget Circular A–
76 shall not apply to competitions conducted under this 
section. 
SEC. 8027. (a)(1) If the Secretary of Defense, after 
consultation with the United States Trade Representative, 
determines that a foreign country which is party to an 
agreement described in paragraph (2) has violated the 
terms of the agreement by discriminating against certain 
types of products produced in the United States that are 
covered by the agreement, the Secretary of Defense shall 
rescind the Secretary’s blanket waiver of the Buy Amer-
ican Act with respect to such types of products produced 
in that foreign country. 
(2) An agreement referred to in paragraph (1) is any 
reciprocal defense procurement memorandum of under-
standing, between the United States and a foreign country 
pursuant to which the Secretary of Defense has prospec-
tively waived the Buy American Act for certain products 
in that country. 
(b) The Secretary of Defense shall submit to the Con-
gress a report on the amount of Department of Defense 
purchases from foreign entities in fiscal year 2007. Such 
report shall separately indicate the dollar value of items 
for which the Buy American Act was waived pursuant to
any agreement described in subsection (a)(2), the Trade 
Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or any 
international agreement to which the United States is a 
party. 
(c) For purposes of this section, the term ‘‘Buy 
American Act’’ means title III of the Act entitled ‘‘An Act 
making appropriations for the Treasury and Post Office 
Departments for the fiscal year ending June 30, 1934, 
and for other purposes’’, approved March 3, 1933 (41 
U.S.C. 10a et seq.). 
SEC. 8028. Notwithstanding any other provision of 
law, funds available during the current fiscal year and 
hereafter for ‘‘Drug Interdiction and Counter-Drug Activi-
ties, Defense’’ may be obligated for the Young Marines 
program. 
SEC. 8029. During the current fiscal year, amounts 
contained in the Department of Defense Overseas Military 
Facility Investment Recovery Account established by sec-
tion 2921(c)(1) of the National Defense Authorization Act 
of 1991 (Public Law 101–510; 10 U.S.C. 2687 note) shall 
be available until expended for the payments specified by 
section 2921(c)(2) of that Act. 
SEC. 8030. (a) IN GENERAL.—Notwithstanding any 
other provision of law, the Secretary of the Air Force may 
convey at no cost to the Air Force, without consideration,
to Indian tribes located in the States of North Dakota, 
South Dakota, Montana, and Minnesota relocatable mili-
tary housing units located at Grand Forks Air Force Base 
and Minot Air Force Base that are excess to the needs 
of the Air Force. 
(b) PROCESSING OF REQUESTS.—The Secretary of 
the Air Force shall convey, at no cost to the Air Force, 
military housing units under subsection (a) in accordance 
with the request for such units that are submitted to the 
Secretary by the Operation Walking Shield Program on 
behalf of Indian tribes located in the States of North Da-
kota, South Dakota, Montana, and Minnesota. 
(c) RESOLUTION OF HOUSING UNIT CONFLICTS.—
The Operation Walking Shield Program shall resolve any 
conflicts among requests of Indian tribes for housing units 
under subsection (a) before submitting requests to the 
Secretary of the Air Force under subsection (b). 
(d) INDIAN TRIBE DEFINED.—In this section, the 
term ‘‘Indian tribe’’ means any recognized Indian tribe in-
cluded on the current list published by the Secretary of 
the Interior under section 104 of the Federally Recognized 
Indian Tribe Act of 1994 (Public Law 103–454; 108 Stat. 
4792; 25 U.S.C. 479a–1). 
SEC. 8031. During the current fiscal year, appropria-
tions which are available to the Department of Defense
for operation and maintenance may be used to purchase 
items having an investment item unit cost of not more 
than $250,000. 
SEC. 8032. (a) During the current fiscal year, none 
of the appropriations or funds available to the Department 
of Defense Working Capital Funds shall be used for the 
purchase of an investment item for the purpose of acquir-
ing a new inventory item for sale or anticipated sale dur-
ing the current fiscal year or a subsequent fiscal year to 
customers of the Department of Defense Working Capital 
Funds if such an item would not have been chargeable 
to the Department of Defense Business Operations Fund 
during fiscal year 1994 and if the purchase of such an 
investment item would be chargeable during the current 
fiscal year to appropriations made to the Department of 
Defense for procurement. 
(b) The fiscal year 2008 budget request for the De-
partment of Defense as well as all justification material 
and other documentation supporting the fiscal year 2008 
Department of Defense budget shall be prepared and sub-
mitted to the Congress on the basis that any equipment 
which was classified as an end item and funded in a pro-
curement appropriation contained in this Act shall be 
budgeted for in a proposed fiscal year 2008 procurement 
appropriation and not in the supply management business
area or any other area or category of the Department of 
Defense Working Capital Funds. 
SEC. 8033. None of the funds appropriated by this 
Act for programs of the Central Intelligence Agency shall 
remain available for obligation beyond the current fiscal 
year, except for funds appropriated for the Reserve for 
Contingencies, which shall remain available until Sep-
tember 30, 2008: Provided, That funds appropriated, 
transferred, or otherwise credited to the Central Intel-
ligence Agency Central Services Working Capital Fund 
during this or any prior or subsequent fiscal year shall 
remain available until expended: Provided further, That 
any funds appropriated or transferred to the Central Intel-
ligence Agency for advanced research and development ac-
quisition, for agent operations, and for covert action pro-
grams authorized by the President under section 503 of 
the National Security Act of 1947, as amended, shall re-
main available until September 30, 2008. 
SEC. 8034. Notwithstanding any other provision of 
law, funds made available in this Act for the Defense In-
telligence Agency may be used for the design, develop-
ment, and deployment of General Defense Intelligence 
Program intelligence communications and intelligence in-
formation systems for the Services, the Unified and Speci-
fied Commands, and the component commands.
SEC. 8035. (a) None of the funds appropriated in this 
Act may be expended by an entity of the Department of 
Defense unless the entity, in expending the funds, com-
plies with the Buy American Act. For purposes of this 
subsection, the term ‘‘Buy American Act’’ means title III 
of the Act entitled ‘‘An Act making appropriations for the 
Treasury and Post Office Departments for the fiscal year 
ending June 30, 1934, and for other purposes’’, approved 
March 3, 1933 (41 U.S.C. 10a et seq.). 
(b) If the Secretary of Defense determines that a per-
son has been convicted of intentionally affixing a label 
bearing a ‘‘Made in America’’ inscription to any product 
sold in or shipped to the United States that is not made 
in America, the Secretary shall determine, in accordance 
with section 2410f of title 10, United States Code, wheth-
er the person should be debarred from contracting with 
the Department of Defense. 
(c) In the case of any equipment or products pur-
chased with appropriations provided under this Act, it is 
the sense of the Congress that any entity of the Depart-
ment of Defense, in expending the appropriation, purchase 
only American-made equipment and products, provided 
that American-made equipment and products are cost-
competitive, quality-competitive, and available in a timely 
fashion.
SEC. 8036. None of the funds appropriated by this 
Act shall be available for a contract for studies, analysis, 
or consulting services entered into without competition on 
the basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines—
(1) as a result of thorough technical evaluation, 
only one source is found fully qualified to perform 
the proposed work; 
(2) the purpose of the contract is to explore an 
unsolicited proposal which offers significant sci-
entific or technological promise, represents the prod-
uct of original thinking, and was submitted in con-
fidence by one source; or 
(3) the purpose of the contract is to take ad-
vantage of unique and significant industrial accom-
plishment by a specific concern, or to insure that a 
new product or idea of a specific concern is given fi-
nancial support: Provided, That this limitation shall 
not apply to contracts in an amount of less than 
$25,000, contracts related to improvements of equip-
ment that is in development or production, or con-
tracts as to which a civilian official of the Depart-
ment of Defense, who has been confirmed by the 
Senate, determines that the award of such contract 
is in the interest of the national defense.
SEC. 8037. (a) Except as provided in subsection (b) 
and (c), none of the funds made available by this Act may 
be used—
(1) to establish a field operating agency; or 
(2) to pay the basic pay of a member of the 
Armed Forces or civilian employee of the depart-
ment who is transferred or reassigned from a head-
quarters activity if the member or employee’s place 
of duty remains at the location of that headquarters. 
(b) The Secretary of Defense or Secretary of a mili-
tary department may waive the limitations in subsection 
(a), on a case-by-case basis, if the Secretary determines, 
and certifies to the Committees on Appropriations of the 
House of Representatives and Senate that the granting 
of the waiver will reduce the personnel requirements or 
the financial requirements of the department. 
(c) This section does not apply to—
(1) field operating agencies funded within the 
National Intelligence Program; or 
(2) an Army field operating agency established 
to eliminate, mitigate, or counter the effects of im-
provised explosive devices, and, as determined by the 
Secretary of the Army, other similar threats. 
SEC. 8038. The Secretary of Defense, acting through 
the Office of Economic Adjustment of the Department of
Defense, notwithstanding any other provision of law, may 
use funds made available in this Act under the heading 
‘‘Operation and Maintenance, Defense-Wide’’ to make 
grants and supplement other Federal funds in accordance 
with the guidance provided in the House report accom-
panying this Act, and the projects specified in such guid-
ance shall be considered to be authorized by law. 
(RESCISSIONS) 
SEC. 8039. Of the funds appropriated in Department 
of Defense Appropriations Acts, the following funds are 
hereby rescinded from the following accounts and pro-
grams in the specified amounts: 
‘‘Other 
Procurement, 
Army, 
2006/2008’’, 
$100,200,000; 
‘‘Aircraft 
Procurement, 
Navy, 
2006/2008’’, 
$76,200,000; 
‘‘Shipbuilding and Conversion, Navy, 2003/2007’’, 
$15,000,000; 
‘‘Shipbuilding and Conversion, Navy, 2005/2009’’, 
$11,245,000; 
‘‘Aircraft Procurement, Air Force, 2005/2007’’, 
$108,000,000; 
‘‘Aircraft Procurement, Air Force, 2006/2008’’, 
$64,000,000; 
‘‘Missile Procurement, Air Force, 2005/2007’’, 
$29,600,000;
‘‘Missile Procurement, Air Force, 2006/2008’’, 
$138,000,000; 
‘‘Research, Development, Test and Evaluation, 
Army, 2006/2007’’, $21,600,000; 
‘‘Research, Development, Test and Evaluation, Navy, 
2006/2007’’, $42,577,000; 
‘‘Research, Development, Test and Evaluation, Air 
Force, 2006/2007’’, $92,800,000; and 
‘‘Research, Development, Test and Evaluation, De-
fense-Wide, 2006/2007’’, $123,900,000. 
SEC. 8040. None of the funds available in this Act 
may be used to reduce the authorized positions for mili-
tary (civilian) technicians of the Army National Guard, 
the Air National Guard, Army Reserve and Air Force Re-
serve for the purpose of applying any administratively im-
posed civilian personnel ceiling, freeze, or reduction on 
military (civilian) technicians, unless such reductions are 
a direct result of a reduction in military force structure. 
SEC. 8041. None of the funds appropriated or other-
wise made available in this Act may be obligated or ex-
pended for assistance to the Democratic People’s Republic 
of North Korea unless specifically appropriated for that 
purpose. 
SEC. 8042. Funds appropriated in this Act for oper-
ation and maintenance of the Military Departments, Com-
batant Commands and Defense Agencies shall be available 
for reimbursement of pay, allowances and other expenses 
which would otherwise be incurred against appropriations 
for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence or coun-
terintelligence support to Combatant Commands, Defense 
Agencies and Joint Intelligence Activities, including the 
activities and programs included within the National Intel-
ligence Program, and the Military Intelligence Program: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel 
and training procedures. 
SEC. 8043. During the current fiscal year, none of 
the funds appropriated in this Act may be used to reduce 
the civilian medical and medical support personnel as-
signed to military treatment facilities below the September 
30, 2003, level: Provided, That the Service Surgeons Gen-
eral may waive this section by certifying to the congres-
sional defense committees that the beneficiary population 
is declining in some catchment areas and civilian strength 
reductions may be consistent with responsible resource 
stewardship and capitation-based budgeting. 
SEC. 8044. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug inter-
diction or counter-drug activities may be transferred to
any other department or agency of the United States ex-
cept as specifically provided in an appropriations law. 
(b) None of the funds available to the Central Intel-
ligence Agency for any fiscal year for drug interdiction 
and counter-drug activities may be transferred to any 
other department or agency of the United States except 
as specifically provided in an appropriations law. 
SEC. 8045. None of the funds appropriated by this 
Act may be used for the procurement of ball and roller 
bearings other than those produced by a domestic source 
and of domestic origin: Provided, That the Secretary of 
the military department responsible for such procurement 
may waive this restriction on a case-by-case basis by certi-
fying in writing to the Committees on Appropriations of 
the House of Representatives and the Senate, that ade-
quate domestic supplies are not available to meet Depart-
ment of Defense requirements on a timely basis and that 
such an acquisition must be made in order to acquire ca-
pability for national security purposes: Provided further, 
That this restriction shall not apply to the purchase of 
‘‘commercial items’’, as defined by section 4(12) of the 
Office of Federal Procurement Policy Act, except that the 
restriction shall apply to ball or roller bearings purchased 
as end items.
SEC. 8046. None of the funds in this Act may be 
used to purchase any supercomputer which is not manu-
factured in the United States, unless the Secretary of De-
fense certifies to the congressional defense committees 
that such an acquisition must be made in order to acquire 
capability for national security purposes that is not avail-
able from United States manufacturers. 
SEC. 8047. Notwithstanding any other provision of 
law, each contract awarded by the Department of Defense 
during the current fiscal year for construction or service 
performed in whole or in part in a State (as defined in 
section 381(d) of title 10, United States Code) which is 
not contiguous with another State and has an unemploy-
ment rate in excess of the national average rate of unem-
ployment as determined by the Secretary of Labor, shall 
include a provision requiring the contractor to employ, for 
the purpose of performing that portion of the contract in 
such State that is not contiguous with another State, indi-
viduals who are residents of such State and who, in the 
case of any craft or trade, possess or would be able to 
acquire promptly the necessary skills: Provided, That the 
Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security.
SEC. 8048. None of the funds made available in this 
or any other Act may be used to pay the salary of any 
officer or employee of the Department of Defense who ap-
proves or implements the transfer of administrative re-
sponsibilities or budgetary resources of any program, 
project, or activity financed by this Act to the jurisdiction 
of another Federal agency not financed by this Act with-
out the express authorization of Congress: Provided, That 
this limitation shall not apply to transfers of funds ex-
pressly provided for in Defense Appropriations Acts, or 
provisions of Acts providing supplemental appropriations 
for the Department of Defense. 
SEC. 8049. (a) LIMITATION ON TRANSFER OF DE-
FENSE ARTICLES AND SERVICES.—Notwithstanding any 
other provision of law, none of the funds available to the 
Department of Defense for the current fiscal year may be 
obligated or expended to transfer to another nation or an 
international organization any defense articles or services 
(other than intelligence services) for use in the activities 
described in subsection (b) unless the congressional de-
fense committees, the Committee on International Rela-
tions of the House of Representatives, and the Committee 
on Foreign Relations of the Senate are notified 15 days 
in advance of such transfer. 
(b) COVERED ACTIVITIES.—This section applies to—
(1) any international peacekeeping or peace-en-
forcement operation under the authority of chapter 
VI or chapter VII of the United Nations Charter 
under the authority of a United Nations Security 
Council resolution; and 
(2) any other international peacekeeping, peace-
enforcement, or humanitarian assistance operation. 
(c) REQUIRED NOTICE.—A notice under subsection 
(a) shall include the following: 
(1) A description of the equipment, supplies, or 
services to be transferred. 
(2) A statement of the value of the equipment, 
supplies, or services to be transferred. 
(3) In the case of a proposed transfer of equip-
ment or supplies—
(A) a statement of whether the inventory 
requirements of all elements of the Armed 
Forces (including the reserve components) for 
the type of equipment or supplies to be trans-
ferred have been met; and 
(B) a statement of whether the items pro-
posed to be transferred will have to be replaced 
and, if so, how the President proposes to pro-
vide funds for such replacement.
SEC. 8050. None of the funds available to the De-
partment of Defense under this Act shall be obligated or 
expended to pay a contractor under a contract with the 
Department of Defense for costs of any amount paid by 
the contractor to an employee when—
(1) such costs are for a bonus or otherwise in 
excess of the normal salary paid by the contractor 
to the employee; and 
(2) such bonus is part of restructuring costs as-
sociated with a business combination. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8051. During the current fiscal year, no more 
than $30,000,000 of appropriations made in this Act 
under the heading ‘‘Operation and Maintenance, Defense-
Wide’’ may be transferred to appropriations available for 
the pay of military personnel, to be merged with, and to 
be available for the same time period as the appropriations 
to which transferred, to be used in support of such per-
sonnel in connection with support and services for eligible 
organizations and activities outside the Department of De-
fense pursuant to section 2012 of title 10, United States 
Code. 
SEC. 8052. During the current fiscal year, in the case 
of an appropriation account of the Department of Defense 
for which the period of availability for obligation has ex-
pired or which has closed under the provisions of section 
1552 of title 31, United States Code, and which has a 
negative unliquidated or unexpended balance, an obliga-
tion or an adjustment of an obligation may be charged 
to any current appropriation account for the same purpose 
as the expired or closed account if—
(1) the obligation would have been properly 
chargeable (except as to amount) to the expired or 
closed account before the end of the period of avail-
ability or closing of that account; 
(2) the obligation is not otherwise properly 
chargeable to any current appropriation account of 
the Department of Defense; and 
(3) in the case of an expired account, the obli-
gation is not chargeable to a current appropriation 
of the Department of Defense under the provisions 
of section 1405(b)(8) of the National Defense Au-
thorization Act for Fiscal Year 1991, Public Law 
101–510, as amended (31 U.S.C. 1551 note): Pro-
vided, That in the case of an expired account, if sub-
sequent review or investigation discloses that there 
was not in fact a negative unliquidated or unex-
pended balance in the account, any charge to a cur-
rent account under the authority of this section shall 
be reversed and recorded against the expired ac-
count: Provided further, That the total amount 
charged to a current appropriation under this sec-
tion may not exceed an amount equal to 1 percent 
of the total appropriation for that account. 
SEC. 8053. (a) Notwithstanding any other provision 
of law, the Chief of the National Guard Bureau may per-
mit the use of equipment of the National Guard Distance 
Learning Project by any person or entity on a space-avail-
able, reimbursable basis. The Chief of the National Guard 
Bureau shall establish the amount of reimbursement for 
such use on a case-by-case basis. 
(b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Dis-
tance Learning Project and be available to defray the costs 
associated with the use of equipment of the project under 
that subsection. Such funds shall be available for such 
purposes without fiscal year limitation. 
SEC. 8054. Using funds available by this Act or any 
other Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United 
States Code, may implement cost-effective agreements for 
required 
heating 
facility 
modernization 
in 
the 
Kaiserslautern Military Community in the Federal Repub-
lic of Germany: Provided, That in the City of 
Kaiserslautern such agreements will include the use of
United States anthracite as the base load energy for mu-
nicipal district heat to the United States Defense installa-
tions: Provided further, That at Landstuhl Army Regional 
Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal serv-
ices, if provisions are included for the consideration of 
United States coal as an energy source. 
SEC. 8055. None of the funds appropriated in title 
IV of this Act may be used to procure end-items for deliv-
ery to military forces for operational training, operational 
use or inventory requirements: Provided, That this restric-
tion does not apply to end-items used in development, 
prototyping, and test activities preceding and leading to 
acceptance for operational use: Provided further, That this 
restriction does not apply to programs funded within the 
National Intelligence Program: Provided further, That the 
Secretary of Defense may waive this restriction on a case-
by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate that it is in the national security interest to do 
so. 
SEC. 8056. Notwithstanding any other provision of 
law, funds available to the Department of Defense shall 
be made available to provide transportation of medical 
supplies and equipment, on a nonreimbursable basis, to
American Samoa, and funds available to the Department 
of Defense shall be made available to provide transpor-
tation of medical supplies and equipment, on a non-
reimbursable basis, to the Indian Health Service when it 
is in conjunction with a civil-military project. 
SEC. 8057. (a) The Secretary of Defense may, on a 
case-by-case basis, waive with respect to a foreign country 
each limitation on the procurement of defense items from 
foreign sources provided in law if the Secretary determines 
that the application of the limitation with respect to that 
country would invalidate cooperative programs entered 
into between the Department of Defense and the foreign 
country, or would invalidate reciprocal trade agreements 
for the procurement of defense items entered into under 
section 2531 of title 10, United States Code, and the 
country does not discriminate against the same or similar 
defense items produced in the United States for that coun-
try. 
(b) Subsection (a) applies with respect to—
(1) contracts and subcontracts entered into on 
or after the date of the enactment of this Act; and 
(2) options for the procurement of items that 
are exercised after such date under contracts that 
are entered into before such date if the option prices
are adjusted for any reason other than the applica-
tion of a waiver granted under subsection (a). 
(c) Subsection (a) does not apply to a limitation re-
garding construction of public vessels, ball and roller bear-
ings, food, and clothing or textile materials as defined by 
section 11 (chapters 50–65) of the Harmonized Tariff 
Schedule and products classified under headings 4010, 
4202, 4203, 6401 through 6406, 6505, 7019, 7218 
through 7229, 7304.41 through 7304.49, 7306.40, 7502 
through 7508, 8105, 8108, 8109, 8211, 8215, and 9404. 
SEC. 8058. (a) PROHIBITION.—None of the funds 
made available by this Act may be used to support any 
training program involving a unit of the security forces 
of a foreign country if the Secretary of Defense has re-
ceived credible information from the Department of State 
that the unit has committed a gross violation of human 
rights, unless all necessary corrective steps have been 
taken. 
(b) MONITORING.—The Secretary of Defense, in con-
sultation with the Secretary of State, shall ensure that 
prior to a decision to conduct any training program re-
ferred to in subsection (a), full consideration is given to 
all credible information available to the Department of 
State relating to human rights violations by foreign secu-
rity forces.
(c) WAIVER.—The Secretary of Defense, after con-
sultation with the Secretary of State, may waive the prohi-
bition in subsection (a) if he determines that such waiver 
is required by extraordinary circumstances. 
(d) REPORT.—Not more than 15 days after the exer-
cise of any waiver under subsection (c), the Secretary of 
Defense shall submit a report to the congressional defense 
committees describing the extraordinary circumstances, 
the purpose and duration of the training program, the 
United States forces and the foreign security forces in-
volved in the training program, and the information relat-
ing to human rights violations that necessitates the waiv-
er. 
SEC. 8059. None of the funds appropriated or made 
available in this Act to the Department of the Navy shall 
be used to develop, lease or procure the T–AKE class of 
ships unless the main propulsion diesel engines and 
propulsors are manufactured in the United States by a 
domestically operated entity: Provided, That the Secretary 
of Defense may waive this restriction on a case-by-case 
basis by certifying in writing to the Committees on Appro-
priations of the House of Representatives and the Senate 
that adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis 
and that such an acquisition must be made in order to
acquire capability for national security purposes or there 
exists a significant cost or quality difference. 
SEC. 8060. None of the funds appropriated or other-
wise made available by this or other Department of De-
fense Appropriations Acts may be obligated or expended 
for the purpose of performing repairs or maintenance to 
military family housing units of the Department of De-
fense, including areas in such military family housing 
units that may be used for the purpose of conducting offi-
cial Department of Defense business. 
SEC. 8061. Notwithstanding any other provision of 
law, funds appropriated in this Act under the heading 
‘‘Research, Development, Test and Evaluation, Defense-
Wide’’ for any new start advanced concept technology 
demonstration project may only be obligated 30 days after 
a report, including a description of the project, the 
planned acquisition and transition strategy and its esti-
mated annual and total cost, has been provided in writing 
to the congressional defense committees: Provided, That 
the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying to the congressional de-
fense committees that it is in the national interest to do 
so. 
SEC. 8062. The Secretary of Defense shall provide 
a classified quarterly report beginning 30 days after enact-
ment of this Act, to the House and Senate Appropriations 
Committees, Subcommittees on Defense on certain mat-
ters as directed in the classified annex accompanying this 
Act. 
SEC. 8063. During the current fiscal year, refunds 
attributable to the use of the Government travel card, re-
funds attributable to the use of the Government Purchase 
Card and refunds attributable to official Government trav-
el arranged by Government Contracted Travel Manage-
ment Centers may be credited to operation and mainte-
nance, and research, development, test and evaluation ac-
counts of the Department of Defense which are current 
when the refunds are received. 
SEC. 8064. (a) REGISTERING FINANCIAL MANAGE-
MENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD 
CHIEF INFORMATION OFFICER.—None of the funds ap-
propriated in this Act may be used for a mission critical 
or mission essential financial management information 
technology system (including a system funded by the de-
fense working capital fund) that is not registered with the 
Chief Information Officer of the Department of Defense. 
A system shall be considered to be registered with that 
officer upon the furnishing to that officer of notice of the 
system, together with such information concerning the 
system as the Secretary of Defense may prescribe. A fi-
nancial management information technology system shall 
be considered a mission critical or mission essential infor-
mation technology system as defined by the Under Sec-
retary of Defense (Comptroller). 
(b) CERTIFICATIONS AS TO COMPLIANCE WITH FI-
NANCIAL MANAGEMENT MODERNIZATION PLAN.—
(1) During the current fiscal year, a financial 
management automated information system, a mixed 
information system supporting financial and non-fi-
nancial systems, or a system improvement of more 
than $1,000,000 may not receive Milestone A ap-
proval, Milestone B approval, or full rate production, 
or their equivalent, within the Department of De-
fense until the Under Secretary of Defense (Comp-
troller) certifies, with respect to that milestone, that 
the system is being developed and managed in ac-
cordance with the Department’s Financial Manage-
ment Modernization Plan. The Under Secretary of 
Defense (Comptroller) may require additional certifi-
cations, as appropriate, with respect to any such sys-
tem. 
(2) The Chief Information Officer shall provide 
the congressional defense committees timely notifica-
tion of certifications under paragraph (1).
(c) CERTIFICATIONS
AS
TO
COMPLIANCE
WITH 
CLINGER-COHEN ACT.—
(1) During the current fiscal year, a major 
automated information system may not receive Mile-
stone A approval, Milestone B approval, or full rate 
production approval, or their equivalent, within the 
Department of Defense until the Chief Information 
Officer certifies, with respect to that milestone, that 
the system is being developed in accordance with the 
Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
The Chief Information Officer may require addi-
tional certifications, as appropriate, with respect to 
any such system. 
(2) The Chief Information Officer shall provide 
the congressional defense committees timely notifica-
tion of certifications under paragraph (1). Each 
such notification shall include, at a minimum, the 
funding baseline and milestone schedule for each 
system covered by such a certification and confirma-
tion that the following steps have been taken with 
respect to the system: 
(A) Business process reengineering. 
(B) An analysis of alternatives. 
(C) An economic analysis that includes a 
calculation of the return on investment.
(D) Performance measures. 
(E) An information assurance strategy 
consistent with the Department’s Global Infor-
mation Grid. 
(d) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘Chief Information Officer’’ 
means the senior official of the Department of De-
fense designated by the Secretary of Defense pursu-
ant to section 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). 
SEC. 8065. During the current fiscal year, none of 
the funds available to the Department of Defense may be 
used to provide support to another department or agency 
of the United States if such department or agency is more 
than 90 days in arrears in making payment to the Depart-
ment of Defense for goods or services previously provided 
to such department or agency on a reimbursable basis: 
Provided, That this restriction shall not apply if the de-
partment is authorized by law to provide support to such 
department or agency on a nonreimbursable basis, and is 
providing the requested support pursuant to such author-
ity: Provided further, That the Secretary of Defense may
waive this restriction on a case-by-case basis by certifying 
in writing to the Committees on Appropriations of the 
House of Representatives and the Senate that it is in the 
national security interest to do so. 
SEC. 8066. Notwithstanding section 12310(b) of title 
10, United States Code, a Reservist who is a member of 
the National Guard serving on full-time National Guard 
duty under section 502(f) of title 32 may perform duties 
in support of the ground-based elements of the National 
Ballistic Missile Defense System. 
SEC. 8067. None of the funds provided in this Act 
may be used to transfer to any nongovernmental entity 
ammunition held by the Department of Defense that has 
a center-fire cartridge and a United States military no-
menclature designation of ‘‘armor penetrator’’, ‘‘armor 
piercing (AP)’’, ‘‘armor piercing incendiary (API)’’, or 
‘‘armor-piercing incendiary-tracer (API–T)’’, except to an 
entity performing demilitarization services for the Depart-
ment of Defense under a contract that requires the entity 
to demonstrate to the satisfaction of the Department of 
Defense that armor piercing projectiles are either: (1) ren-
dered incapable of reuse by the demilitarization process; 
or (2) used to manufacture ammunition pursuant to a con-
tract with the Department of Defense or the manufacture 
of ammunition for export pursuant to a License for Per-
manent Export of Unclassified Military Articles issued by 
the Department of State. 
SEC. 8068. Notwithstanding any other provision of 
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under section 2667 
of title 10, United States Code, in the case of a lease of 
personal property for a period not in excess of 1 year to 
any organization specified in section 508(d) of title 32, 
United States Code, or any other youth, social, or fra-
ternal non-profit organization as may be approved by the 
Chief of the National Guard Bureau, or his designee, on 
a case-by-case basis. 
SEC. 8069. None of the funds appropriated by this 
Act shall be used for the support of any nonappropriated 
funds activity of the Department of Defense that procures 
malt beverages and wine with nonappropriated funds for 
resale (including such alcoholic beverages sold by the 
drink) on a military installation located in the United 
States unless such malt beverages and wine are procured 
within that State, or in the case of the District of Colum-
bia, within the District of Columbia, in which the military 
installation is located: Provided, That in a case in which 
the military installation is located in more than one State, 
purchases may be made in any State in which the installa-
tion is located: Provided further, That such local procure-
ment requirements for malt beverages and wine shall 
apply to all alcoholic beverages only for military installa-
tions in States which are not contiguous with another 
State: Provided further, That alcoholic beverages other 
than wine and malt beverages, in contiguous States and 
the District of Columbia shall be procured from the most 
competitive source, price and other factors considered. 
SEC. 8070. Funds available to the Department of De-
fense for the Global Positioning System during the current 
fiscal year may be used to fund civil requirements associ-
ated with the satellite and ground control segments of 
such system’s modernization program. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8071. Of the amounts appropriated in this Act 
under the heading ‘‘Operation and Maintenance, Army’’, 
$78,300,000 shall remain available until expended: Pro-
vided, That notwithstanding any other provision of law, 
the Secretary of Defense is authorized to transfer such 
funds to other activities of the Federal Government: Pro-
vided further, That the Secretary of Defense is authorized 
to enter into and carry out contracts for the acquisition 
of real property, construction, personal services, and oper-
ations related to projects carrying out the purposes of this 
section: Provided further, That contracts entered into
under the authority of this section may provide for such 
indemnification as the Secretary determines to be nec-
essary: Provided further, That projects authorized by this 
section shall comply with applicable Federal, State, and 
local law to the maximum extent consistent with the na-
tional security, as determined by the Secretary of Defense. 
SEC. 8072. Section 8106 of the Department of De-
fense Appropriations Act, 1997 (titles I through VIII of 
the matter under subsection 101(b) of Public Law 104–
208; 110 Stat. 3009–111; 10 U.S.C. 113 note) shall con-
tinue in effect to apply to disbursements that are made 
by the Department of Defense in fiscal year 2007. 
SEC. 8073. In addition to amounts provided else-
where in this Act, $2,500,000 is hereby appropriated to 
the Department of Defense, to remain available for obliga-
tion until expended: Provided, That notwithstanding any 
other provision of law, these funds shall be available only 
for a grant to the Fisher House Foundation, Inc., only 
for the construction and furnishing of additional Fisher 
Houses to meet the needs of military family members 
when confronted with the illness or hospitalization of an 
eligible military beneficiary. 
SEC. 8074. Amounts appropriated in title II of this 
Act are hereby reduced by $71,100,000 to reflect savings 
attributable to efficiencies and management improvements
in the funding of miscellaneous or other contracts in the 
military departments, as follows: 
(1) From ‘‘Operation and Maintenance, Army’’, 
$31,100,000. 
(2) From ‘‘Operation and Maintenance, Navy’’, 
$35,000,000. 
(3) From ‘‘Operation and Maintenance, Marine 
Corps’’, $5,000,000. 
SEC. 8075. The total amount appropriated or other-
wise made available in this Act is hereby reduced by 
$22,000,000 to limit excessive growth in the procurement 
of advisory and assistance services, to be distributed as 
follows: 
‘‘Operation and Maintenance, Army’’, $20,000,000. 
‘‘Operation 
and 
Maintenance, 
Marine 
Corps’’, 
$2,000,000. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8076. Of the amounts appropriated in this Act 
under the heading ‘‘Research, Development, Test and 
Evaluation, Defense-Wide’’, $77,175,000 shall be made 
available for the Arrow missile defense program: Provided, 
That of this amount, $13,000,000 shall be available for 
the purpose of producing Arrow missile components in the 
United States and Arrow missile components and missiles 
in Israel to meet Israel’s defense requirements, consistent
with each nation’s laws, regulations and procedures: Pro-
vided further, That funds made available under this provi-
sion for production of missiles and missile components 
may be transferred to appropriations available for the pro-
curement of weapons and equipment, to be merged with 
and to be available for the same time period and the same 
purposes as the appropriation to which transferred: Pro-
vided further, That the transfer authority provided under 
this provision is in addition to any other transfer authority 
contained in this Act. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8077. Of the amounts appropriated in this Act 
under the heading ‘‘Shipbuilding and Conversion, Navy’’, 
$436,449,000 shall be available until September 30, 2007, 
to fund prior year shipbuilding cost increases: Provided, 
That upon enactment of this Act, the Secretary of the 
Navy shall transfer such funds to the following appropria-
tions in the amounts specified: Provided further, That the 
amounts transferred shall be merged with and be available 
for the same purposes as the appropriations to which 
transferred: 
To: 
Under the heading ‘‘Shipbuilding and Conversion, 
Navy, 1999/2007’’: 
New SSN, $15,000,000;
Under the heading ‘‘Shipbuilding and Conversion, 
Navy, 2000/2007’’: 
LPD–17 Amphibious Transport Dock Ship 
Program, $39,049,000; 
Under the heading ‘‘Shipbuilding and Conversion, 
Navy, 2001/2007’’: 
New SSN, $31,000,000; 
Carrier Replacement Program, $318,400,000; 
Under the heading ‘‘Shipbuilding and Conversion, 
Navy, 2003/2007’’: 
New SSN, $22,000,000; 
Under the heading ‘‘Shipbuilding and Conversion, 
Navy, 2005/2009’’; and 
LPD–17 Amphibious Transport Dock Ship 
Program, $11,000,000. 
SEC. 8078. The Secretary of the Navy may settle, 
or compromise, and pay any and all admiralty claims 
under section 7622 of title 10, United States Code arising 
out of the collision involving the U.S.S. GREENEVILLE 
and the EHIME MARU, in any amount and without re-
gard to the monetary limitations in subsections (a) and 
(b) of that section: Provided, That such payments shall 
be made from funds available to the Department of the 
Navy for operation and maintenance.
SEC. 8079. Funds appropriated by this Act, or made 
available by the transfer of funds in this Act, for intel-
ligence activities are deemed to be specifically authorized 
by the Congress for purposes of section 504 of the Na-
tional Security Act of 1947 (50 U.S.C. 414) during fiscal 
year 2007 until the enactment of the Intelligence Author-
ization Act for fiscal year 2007. 
SEC. 8080. None of the funds in this Act may be 
used to initiate a new start program without prior written 
notification to the Office of Secretary of Defense and the 
congressional defense committees. 
SEC. 8081. (a) In addition to the amounts provided 
elsewhere in this Act, the amount of $5,400,000 is hereby 
appropriated to the Department of Defense for ‘‘Oper-
ation and Maintenance, Army National Guard’’. Such 
amount shall be made available to the Secretary of the 
Army only to make a grant in the amount of $5,400,000 
to the entity specified in subsection (b) to facilitate access 
by veterans to opportunities for skilled employment in the 
construction industry. 
(b) The entity referred to in subsection (a) is the 
Center for Military Recruitment, Assessment and Vet-
erans Employment, a nonprofit labor-management co-op-
eration committee provided for by section 302(c)(9) of the 
Labor-Management Relations Act, 1947 (29 U.S.C.