H. R. 5122—272
(A) is in compliance with department-wide acquisition 
policy; and 
(B) is coordinated with and mutually supportive of 
acquisition programs of the military departments. 
(2) URGENT
REQUIREMENTS.—Guidance developed under 
paragraph (1) shall take into account the need to fulfill the 
urgent requirements of the commanders of combatant com-
mands and the heads of Defense Agencies and to ensure that 
those requirements are addressed expeditiously. 
(c) CONSULTATION.—The senior acquisition official designated 
under subsection (a) shall on a regular basis consult on matters 
related to requirements and acquisition with the commanders of 
combatant commands and the heads of Defense Agencies referred 
to in that subsection. 
(d) DEADLINE
FOR DESIGNATION.—The Secretary of Defense 
shall make the designation required by subsection (a) not later 
than 180 days after the date of the enactment of this Act. 
SEC. 
906. 
STANDARDIZATION 
OF 
STATUTORY 
REFERENCES 
TO 
‘‘NATIONAL SECURITY SYSTEM’’ WITHIN LAWS APPLICABLE 
TO DEPARTMENT OF DEFENSE. 
(a) DEFENSE BUSINESS SYSTEMS.—Section 2222(j)(6) of title 10, 
United States Code, is amended by striking ‘‘in section 2315 of 
this title’’ and inserting ‘‘in section 3542(b)(2) of title 44’’. 
(b) CHIEF INFORMATION OFFICER RESPONSIBILITIES.—Section 
2223(c)(3) of such title is amended by striking ‘‘section 11103 of 
title 40’’ and inserting ‘‘section 3542(b)(2) of title 44’’. 
(c) PROCUREMENT OF AUTOMATIC DATA PROCESSING EQUIPMENT 
AND SERVICES.—The text of section 2315 of such title is amended 
to read as follows: 
‘‘For purposes of subtitle III of title 40, the term ‘national 
security system’, with respect to a telecommunications and informa-
tion system operated by the Department of Defense, has the 
meaning given that term by section 3542(b)(2) of title 44.’’. 
SEC. 907. CORRECTION OF REFERENCE TO PREDECESSOR OF DEFENSE 
INFORMATION SYSTEMS AGENCY. 
Paragraph (1) of section 193(f) of title 10, United States Code, 
is amended to read as follows: 
‘‘(1) The Defense Information Systems Agency.’’. 
Subtitle B—Space Activities 
SEC. 911. DESIGNATION OF SUCCESSOR ORGANIZATIONS FOR THE DIS-
ESTABLISHED 
INTERAGENCY 
GLOBAL 
POSITIONING 
EXECUTIVE BOARD. 
(a) SUCCESSOR ORGANIZATIONS.—Section 8 of the Commercial 
Space Transportation Competitiveness Act of 2000 (10 U.S.C. 2281 
note) is amended by striking ‘‘by Congress’’ and all that follows 
and inserting ‘‘for the functions and activities of the following 
organizations established pursuant to the United States Space-
Based Position, Navigation, and Timing Policy issued December 
8, 2004 (and any successor organization, to the extent the successor 
organization performs the functions of the specified organization): 
‘‘(1) The interagency committee known as the National 
Space-Based Positioning, Navigation, and Timing Executive 
Committee.
H. R. 5122—273
‘‘(2) The support office for the committee specified in para-
graph (1) known as the National Space-Based Positioning, 
Navigation, and Timing Coordination Office. 
‘‘(3) The Federal advisory committee known as the National 
Space-Based Positioning, Navigation, and Timing Advisory 
Board.’’. 
(b) CLARIFICATION.—Such section is further amended by 
striking 
‘‘interagency 
funding’’ 
and 
inserting 
‘‘multi-agency 
funding’’. 
SEC. 912. EXTENSION OF AUTHORITY FOR PILOT PROGRAM FOR 
PROVISION OF SPACE SURVEILLANCE NETWORK SERV-
ICES TO NON-UNITED STATES GOVERNMENT ENTITIES. 
Section 2274(i) of title 10, United States Code, is amended 
by striking ‘‘shall be conducted’’ and all that follows and inserting 
‘‘may be conducted through September 30, 2009.’’. 
SEC. 913. OPERATIONALLY RESPONSIVE SPACE. 
(a) UNITED STATES POLICY
ON OPERATIONALLY RESPONSIVE 
SPACE.—It is the policy of the United States to demonstrate, 
acquire, and deploy an effective capability for operationally respon-
sive space to support military users and operations from space, 
which shall consist of—
(1) responsive satellite payloads and busses built to 
common technical standards; 
(2) low-cost space launch vehicles and supporting range 
operations that facilitate the timely launch and on-orbit oper-
ations of satellites; 
(3) responsive command and control capabilities; and 
(4) concepts of operations, tactics, techniques, and proce-
dures that permit the use of responsive space assets for combat 
and military operations other than war. 
(b) OPERATIONALLY RESPONSIVE SPACE PROGRAM OFFICE.—
(1) ESTABLISHMENT OF OFFICE.—Section 2273a of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 2273a. Operationally Responsive Space Program Office 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense shall establish 
within the Department of Defense an office to be known as the 
Operationally Responsive Space Program Office (in this section 
referred to as the ‘Office’). 
‘‘(b) HEAD OF OFFICE.—The head of the Office shall be—
‘‘(1) the Department of Defense Executive Agent for Space; 
or 
‘‘(2) the designee of the Secretary of Defense, who shall 
report to the Department of Defense Executive Agent for Space. 
‘‘(c) MISSION.—The mission of the Office shall be—
‘‘(1) to contribute to the development of low-cost, rapid 
reaction payloads, busses, spacelift, and launch control capabili-
ties in order to fulfill joint military operational requirements 
for on-demand space support and reconstitution; and 
‘‘(2) to coordinate and execute operationally responsive 
space efforts across the Department of Defense with respect 
to planning, acquisition, and operations. 
‘‘(d) ELEMENTS.—The Secretary of Defense shall select the ele-
ments of the Department of Defense to be included in the Office 
so as to contribute to the development of capabilities for operation-
ally responsive space and to achieve a balanced representation
H. R. 5122—274
of the military departments in the Office to ensure proper acknowl-
edgment of joint considerations in the activities of the Office, except 
that the Office shall include the following: 
‘‘(1) A science and technology element that shall pursue 
innovative approaches to the development of capabilities for 
operationally responsive space through basic and applied 
research focused on (but not limited to) payloads, bus, and 
launch equipment. 
‘‘(2) An acquisition element that shall undertake the 
acquisition of systems necessary to integrate, sustain, and 
launch assets for operationally responsive space. 
‘‘(3) An operations element that shall—
‘‘(A) sustain and maintain assets for operationally 
responsive space prior to launch; 
‘‘(B) integrate and launch such assets; and 
‘‘(C) operate such assets in orbit. 
‘‘(4) A combatant command support element that shall 
serve as the primary intermediary between the military depart-
ments and the combatant commands in order to—
‘‘(A) ascertain the needs of the commanders of the 
combatant commands; and 
‘‘(B) integrate operationally responsive space capabili-
ties into—
‘‘(i) operations plans of the combatant commands; 
‘‘(ii) techniques, tactics, and procedures of the mili-
tary departments; and 
‘‘(iii) military exercises, demonstrations, and war 
games. 
‘‘(5) Such other elements as the Secretary of Defense may 
consider necessary. 
‘‘(e) ACQUISITION AUTHORITY.—The acquisition activities of the 
Office shall be subject to the following: 
‘‘(1) The Department of Defense Executive Agent for Space 
shall be the senior acquisition executive of the Office. 
‘‘(2) The Joint Capabilities Integration and Development 
System process shall not apply to acquisitions by the Office 
for operational experimentation. 
‘‘(3) The commander of the United States Strategic Com-
mand, or the designee of the commander, shall—
‘‘(A) validate all system requirements for systems to 
be acquired by the Office; and 
‘‘(B) participate in the approval of any acquisition pro-
gram initiated by the Office. 
‘‘(4) To the maximum extent practicable, the procurement 
unit cost of a launch vehicle procured by the Office for launch 
to low earth orbit should not exceed $20,000,000 (in constant 
dollars). 
‘‘(5) To the maximum extent practicable, the procurement 
unit cost of an integrated satellite procured by the Office should 
not exceed $40,000,000 (in constant dollars). 
‘‘(f) REQUIRED
PROGRAM
ELEMENT.—(1) The Secretary of 
Defense shall ensure that, within budget program elements for 
space programs of the Department of Defense, that—
‘‘(A) there is a separate, dedicated program element for 
operationally responsive space;
H. R. 5122—275
‘‘(B) to the extent applicable, relevant program elements 
should be consolidated into the program element required by 
subparagraph (A); and 
‘‘(C) the Office executes its responsibilities through this 
program element. 
‘‘(2) The Office shall manage the program element required 
by paragraph (1)(A).’’. 
(2) CLERICAL AMENDMENT.—The item relating to that sec-
tion in the table of sections at the beginning of chapter 135 
of such title is amended to read as follows:
‘‘2273a. Operationally Responsive Space Program Office.’’.
(c) PLAN FOR OPERATIONALLY RESPONSIVE SPACE.—
(1) PLAN REQUIRED.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report 
setting forth a plan for the acquisition by the Department 
of Defense of capabilities for operationally responsive space 
to support military users and military operations. 
(2) ELEMENTS.—The plan required by paragraph (1) shall 
include the following: 
(A) An identification of the roles and missions of each 
military department, Defense Agency, and other component 
or element of the Department of Defense for the fulfillment 
of the mission of the Department with respect to operation-
ally responsive space. 
(B) An identification of the capabilities required by 
the Department to fulfill such mission during the period 
covered by the current future-years defense program sub-
mitted to Congress pursuant to section 221 of title 10, 
United States Code, and an additional 10-year period. 
(C) A description of the chain of command and 
reporting structure of the Operationally Responsive Space 
Program Office established under section 2273a of title 
10, United States Code, as amended by subsection (b). 
(D) A description of the classification of information 
required for the Operationally Responsive Space Program 
Office in order to ensure that the Office carries out its 
responsibilities under such section 2273a in a proper and 
efficient manner. 
(E) A description of the acquisition policies and proce-
dures applicable to the Operationally Responsive Space 
Program Office, including a description of any legislative 
or administrative action necessary to provide the Office 
additional acquisition authority to carry out its responsibil-
ities. 
(F) A schedule for the implementation of the plan 
and the establishment of the Operationally Responsive 
Space Program Office. 
(G) The funding and personnel required to implement 
the plan over the course of the current future-years defense 
program. 
(H) A description of any additional authorities and 
programmatic, organizational, or other changes necessary 
to ensure that the Operationally Responsive Space Program 
Office can successfully carry out its responsibilities.
H. R. 5122—276
(d) REPEAL OF SUPERSEDED LAW.—Section 913 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109–
163; 119 Stat. 3408; 10 U.S.C. 2273a note) is repealed. 
SEC. 914. INDEPENDENT REVIEW AND ASSESSMENT OF DEPARTMENT 
OF DEFENSE ORGANIZATION AND MANAGEMENT FOR 
NATIONAL SECURITY IN SPACE. 
(a) INDEPENDENT REVIEW
AND ASSESSMENT REQUIRED.—The 
Secretary of Defense shall select an appropriate entity outside the 
Department of Defense to conduct an independent review and 
assessment of the organization and management of the Department 
of Defense for national security in space. In selecting the entity 
to conduct the review and assessment, the Secretary shall consult 
with the chairman and ranking minority member of the Committee 
on Armed Services of the Senate and the chairman and ranking 
minority member of the Committee on Armed Services of the House 
of Representatives. 
(b) ELEMENTS.—The review and assessment required by this 
section shall address the following: 
(1) The requirements of the Department of Defense for 
national security space capabilities, as identified by the Depart-
ment, and the efforts of the Department to fulfill such require-
ments. 
(2) The actions that could be taken by the Department 
to modify the organization and management of the Department 
over the near-term, medium-term, and long-term in order to 
strengthen United States national security in space, and the 
ability of the Department to implement its requirements and 
carry out the future space missions, including the following: 
(A) Actions to improve or enhance current interagency 
coordination processes regarding the operation of national 
security space assets, including improvements or enhance-
ments in interoperability and communications. 
(B) Actions to improve or enhance the relationship 
between the intelligence aspects of national security space 
(so-called ‘‘black space’’) and the non-intelligence aspects 
of national security space (so-called ‘‘white space’’). 
(C) Actions to improve or enhance the manner in which 
military space issues are addressed by professional military 
education institutions. 
(D) Actions to create a specialized career field for mili-
tary space acquisition personnel, to include an emphasis 
on long-term assignments, that could help develop and 
maintain a professional space acquisition cadre with tech-
nical expertise and institutional knowledge. 
(c) LIAISON.—The Secretary of Defense shall designate at least 
one senior civilian employee of the Department of Defense, and 
at least one general or flag officer, to serve as liaison between 
the Department, the Armed Forces, and the entity conducting the 
review and assessment under this section. 
(d) REPORT.—Not later than one year after the date of the 
enactment of this Act, the entity conducting the review and assess-
ment under this section shall submit to the Secretary of Defense 
and the congressional defense committees a report containing—
(1) the results of the review and assessment; and
H. R. 5122—277
(2) recommendations on the best means by which the 
Department may improve its organization and management 
for national security in space. 
Subtitle C—Chemical Demilitarization 
Program 
SEC. 921. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION 
OF UNITED STATES CHEMICAL WEAPONS STOCKPILE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and 
on Their Destruction, done at Paris on January 13, 1993 (com-
monly referred to as the ‘‘Chemical Weapons Convention’’), 
requires that destruction of the entire United States chemical 
weapons stockpile be completed by no later than the extended 
deadline of April 29, 2012. 
(2) On April 10, 2006, the Department of Defense notified 
Congress that the United States would not meet even the 
extended deadline under the Chemical Weapons Convention 
for destruction of the United States chemical weapons stockpile. 
(3) Destroying existing chemical weapons is a homeland 
security imperative and an arms control priority and is required 
by United States law. 
(4) The elimination and nonproliferation of chemical 
weapons of mass destruction is of utmost importance to the 
national security of the United States. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that—
(1) the United States is committed to making every effort 
to safely dispose of its entire chemical weapons stockpile by 
the Chemical Weapons Convention extended deadline of April 
29, 2012, or as soon thereafter as possible, and will carry 
out all of its other obligations under that Convention; 
(2) to prevent further delays in completing the destruction 
of the United States chemical weapons stockpile, the Secretary 
of Defense should prepare a comprehensive schedule for the 
safe destruction of such stockpile and should annually submit 
that schedule (as currently in effect) to the congressional 
defense committees, either separately or as part of another 
required report, until such destruction is completed; 
(3) the Secretary of Defense should make every effort to 
ensure adequate funding to complete the elimination of the 
United States chemical weapons stockpile in the shortest time 
possible, consistent with the requirement to protect public 
health, safety, and the environment; and 
(4) when selecting a site for the treatment or disposal 
of neutralized chemical agent at a location remote from the 
location where the agent is stored, the Secretary of Defense 
should propose a credible process that seeks to gain the support 
of affected communities.
H. R. 5122—278
SEC. 922. COMPTROLLER GENERAL REVIEW OF COST-BENEFIT ANAL-
YSIS OF OFF-SITE VERSUS ON-SITE TREATMENT AND DIS-
POSAL OF HYDROLYSATE DERIVED FROM NEUTRALIZA-
TION OF VX NERVE GAS AT NEWPORT CHEMICAL DEPOT, 
INDIANA. 
(a) REVIEW REQUIRED.—Not later than December 1, 2006, the 
Comptroller General shall submit to Congress a report containing 
a review of the cost-benefit analysis prepared by the Secretary 
of the Army entitled ‘‘Cost-Benefit Analysis of Off-Site Versus On-
Site Treatment and Disposal of Newport Caustic Hydrolysate’’ and 
dated April 24, 2006. 
(b) CONTENT OF REVIEW.—In conducting the review under sub-
section (a), the Comptroller General shall consider and assess at 
a minimum the following matters: 
(1) The adequacy of the rationale contained in the cost-
benefit analysis referred to in subsection (a) in dismissing five 
of the eight technologies for hydrolysate treatment directed 
for consideration on page 116 of the Report of the Committee 
on Armed Services of the House of Representatives on H.R. 
1815 (House Report 109–89). 
(2) The rationale for the failure of the Secretary of the 
Army to consider other technical solutions, such as constructing 
a wastewater disposal system at the Newport Chemical Depot. 
(3) The adequacy of the cost-benefit analysis presented 
for the three technologies considered. 
(c) LIMITATION ON TRANSPORT PENDING REPORT.—The Secretary 
of the Army may not transport neutralized bulk nerve agent (other 
than those small quantities necessary for laboratory evaluation 
of the disposal process) from the Newport Chemical Depot to the 
State of New Jersey until the earlier of—
(1) the end of the 60-day period beginning on the date 
on which the report required by subsection (a) is submitted; 
or 
(2) February 1, 2007. 
SEC. 923. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION 
CONTRACTS. 
(a) IN GENERAL.—
(1) AUTHORITY TO INCLUDE CLAUSES IN CONTRACTS.—The 
Secretary of Defense may, for the purpose specified in para-
graph (2), authorize the inclusion of an incentives clause in 
any contract for the destruction of the United States stockpile 
of lethal chemical agents and munitions carried out pursuant 
to section 1412 of the Department of Defense Authorization 
Act, 1986 (50 U.S.C. 1521). 
(2) PURPOSE.—The purpose of a clause referred to in para-
graph (1) is to provide the contractor for a chemical demili-
tarization facility an incentive to accelerate the safe elimination 
of the United States chemical weapons stockpile and to reduce 
the total cost of the Chemical Demilitarization Program by 
providing incentive payments for the early completion of 
destruction operations and the closure of such facility. 
(b) INCENTIVES CLAUSES.—
(1) IN GENERAL.—An incentives clause under this section 
shall permit the contractor for the chemical demilitarization 
facility concerned the opportunity to earn incentive payments 
for the completion of destruction operations and facility closure
H. R. 5122—279
activities within target incentive ranges specified in such 
clause. 
(2) LIMITATION ON INCENTIVE PAYMENTS.—The maximum 
incentive payment under an incentives clause with respect to 
a chemical demilitarization facility may not exceed amounts 
as follows: 
(A) In the case of an incentive payment for the comple-
tion of destruction operations within the target incentive 
range specified in such clause, $110,000,000. 
(B) In the case of an incentive payment for the comple-
tion of facility closure activities within the target incentive 
range specified in such clause, $55,000,000. 
(3) TARGET RANGES.—An incentives clause in a contract 
under this section shall specify the target incentive ranges 
of costs for completion of destruction operations and facility 
closure activities, respectively, as jointly agreed upon by the 
contracting officer and the contractor concerned. An incentives 
clause shall require a proportionate reduction in the maximum 
incentive payment amounts in the event that the contractor 
exceeds an agreed-upon target cost if such excess costs are 
the responsibility of the contractor. 
(4) CALCULATION OF INCENTIVE PAYMENTS.—The amount 
of the incentive payment earned by a contractor for a chemical 
demilitarization facility under an incentives clause under this 
section shall be based upon a determination by the Secretary 
on how early in the target incentive range specified in such 
clause destruction operations or facility closure activities, as 
the case may be, are completed. 
(5) CONSISTENCY WITH EXISTING OBLIGATIONS.—The provi-
sions of any incentives clause under this section shall be con-
sistent with the obligation of the Secretary of Defense under 
section 1412(c)(1)(A) of the Department of Defense Authoriza-
tion Act, 1986, to provide for maximum protection for the 
environment, the general public, and the personnel who are 
involved in the destruction of the lethal chemical agents and 
munitions. 
(6) ADDITIONAL
TERMS
AND
CONDITIONS.—In negotiating 
the inclusion of an incentives clause in a contract under this 
section, the Secretary may include in such clause such addi-
tional terms and conditions as the Secretary considers appro-
priate. 
(c) ADDITIONAL LIMITATION ON PAYMENTS.—
(1) PAYMENT CONDITIONAL ON PERFORMANCE.—No payment 
may be made under an incentives clause under this section 
unless the Secretary determines that the contractor concerned 
has satisfactorily performed its duties under such incentives 
clause. 
(2) PAYMENT CONTINGENT ON APPROPRIATIONS.—An incen-
tives clause under this section shall specify that the obligation 
of the Government to make payment under such incentives 
clause is subject to the availability of appropriations for that 
purpose. Amounts appropriated for Chemical Agents and Muni-
tions Destruction, Defense, shall be available for payments 
under incentives clauses under this section.
H. R. 5122—280
SEC. 924. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING 
AUTHORITY. 
(a) MULTIYEAR CONTRACTING AUTHORITY.—The Secretary of 
Defense may carry out responsibilities under section 1412(a) of 
the Department of Defense Authorization Act, 1986 (50 U.S.C. 
1521(a)) through multiyear contracts entered into before the date 
of the enactment of this Act. 
(b) AVAILABILITY OF FUNDS.—Contracts entered into under sub-
section (a) shall be funded through annual appropriations for the 
destruction of chemical agents and munitions. 
Subtitle D—Intelligence-Related Matters 
SEC. 931. FOUR-YEAR EXTENSION OF AUTHORITY OF SECRETARY OF 
DEFENSE TO ENGAGE IN COMMERCIAL ACTIVITIES AS 
SECURITY FOR INTELLIGENCE COLLECTION ACTIVITIES. 
Section 431(a) of title 10, United States Code, is amended 
by striking ‘‘December 31, 2006’’ and inserting ‘‘December 31, 2010’’. 
SEC. 932. ANNUAL REPORTS ON INTELLIGENCE OVERSIGHT ACTIVI-
TIES OF THE DEPARTMENT OF DEFENSE. 
(a) IN GENERAL.—Subchapter I of chapter 21 of title 10, United 
States Code, is amended by adding at the end the following new 
section: 
‘‘§ 427. Intelligence oversight activities of Department of 
Defense: annual reports 
‘‘(a) ANNUAL REPORTS REQUIRED.—(1) Not later than March 
1 of each year, the Secretary of Defense shall submit—
‘‘(A) to the congressional committees specified in subpara-
graph (A) of paragraph (2) a report on the intelligence oversight 
activities of the Department of Defense during the previous 
calendar year insofar as such oversight activities relate to tac-
tical intelligence and intelligence-related activities of the 
Department; and 
‘‘(B) to the congressional committees specified in subpara-
graph (B) of paragraph (2) a report on the intelligence oversight 
activities of the Department of Defense during the previous 
calendar year insofar as such oversight activities relate to intel-
ligence and intelligence-related activities of the Department 
other than those specified in subparagraph (A). 
‘‘(2)(A) The committees specified in this subparagraph are the 
following: 
‘‘(i) The Committee on Armed Services and the Committee 
on Appropriations of the Senate. 
‘‘(ii) The Permanent Select Committee on Intelligence, the 
Committee on Armed Services, and the Committee on Appro-
priations of the House of Representatives. 
‘‘(B) The committees specified in this subparagraph are the 
following: 
‘‘(i) The Select Committee on Intelligence, the Committee 
on Armed Services, and the Committee on Appropriations of 
the Senate. 
‘‘(ii) The Permanent Select Committee on Intelligence and 
the Committee on Appropriations of the House of Representa-
tives.
H. R. 5122—281
‘‘(b) ELEMENTS.—Each report under subsection (a) shall include, 
for the calendar year covered by such report and with respect 
to oversight activities subject to coverage in that report, the fol-
lowing: 
‘‘(1) A description of any violation of law or of any Executive 
order or Presidential directive (including Executive Order No. 
12333) that comes to the attention of any General Counsel 
or Inspector General within the Department of Defense, or 
the Under Secretary of Defense for Intelligence, and a descrip-
tion of the actions taken by such official with respect to such 
activity. 
‘‘(2) A description of the results of intelligence oversight 
inspections undertaken by each of the following: 
‘‘(A) The Office of the Secretary of Defense. 
‘‘(B) Each military department. 
‘‘(C) Each combat support agency. 
‘‘(D) Each field operating agency. 
‘‘(3) A description of any changes made in any program 
for the intelligence oversight activities of the Department of 
Defense, including any training program. 
‘‘(4) A description of any changes made in any published 
directive or policy memoranda on the intelligence or intel-
ligence-related activities of—
‘‘(A) any military department; 
‘‘(B) any combat support agency; or 
‘‘(C) any field operating agency. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘intelligence oversight activities of the 
Department of Defense’ refers to any activity undertaken by 
an agency, element, or component of the Department of Defense 
to ensure compliance with regard to requirements or instruc-
tions on the intelligence and intelligence-related activities of 
the Department under law or any Executive order or Presi-
dential directive (including Executive Order No. 12333). 
‘‘(2) The term ‘combat support agency’ has the meaning 
given that term in section 193(f) of this title. 
‘‘(3) The term ‘field operating agency’ means a specialized 
subdivision of the Department of Defense that carries out activi-
ties under the operational control of the Department.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such subchapter is amended by adding at the end the 
following new item:
‘‘427. Intelligence oversight activities of Department of Defense: annual reports.’’.
SEC. 933. COLLECTION BY NATIONAL SECURITY AGENCY OF SERVICE 
CHARGES 
FOR 
CERTIFICATION 
OR 
VALIDATION 
OF 
INFORMATION ASSURANCE PRODUCTS. 
The National Security Agency Act of 1959 (50 U.S.C. 402 note) 
is amended by adding at the end the following new section: 
‘‘SEC. 20. (a) The Director may collect charges for evaluating, 
certifying, or validating information assurance products under the 
National Information Assurance Program or successor program. 
‘‘(b) The charges collected under subsection (a) shall be estab-
lished through a public rulemaking process in accordance with 
Office of Management and Budget Circular No. A–25. 
‘‘(c) Charges collected under subsection (a) shall not exceed 
the direct costs of the program referred to in that subsection.
H. R. 5122—282
‘‘(d) The appropriation or fund bearing the cost of the service 
for which charges are collected under the program referred to 
in subsection (a) may be reimbursed, or the Director may require 
advance payment subject to such adjustment on completion of the 
work as may be agreed upon. 
‘‘(e) Amounts collected under this section shall be credited 
to the account or accounts from which costs associated with such 
amounts have been or will be incurred, to reimburse or offset 
the direct costs of the program referred to in subsection (a).’’. 
Subtitle E—Other Matters 
SEC. 941. DEPARTMENT OF DEFENSE POLICY ON UNMANNED SYSTEMS. 
(a) POLICY REQUIRED.—The Secretary of Defense shall develop 
a policy, to be applicable throughout the Department of Defense, 
on research, development, test and evaluation, procurement, and 
operation of unmanned systems. 
(b) ELEMENTS.—The policy required by subsection (a) shall 
include or address the following: 
(1) An identification of missions and mission requirements, 
including mission requirements for the military departments 
and joint mission requirements, for which unmanned systems 
may replace manned systems. 
(2) A preference for unmanned systems in acquisition pro-
grams for new systems, including a requirement under any 
such program for the development of a manned system for 
a certification that an unmanned system is incapable of meeting 
program requirements. 
(3) An assessment of the circumstances under which it 
would be appropriate to pursue joint development and procure-
ment of unmanned systems and components of unmanned sys-
tems. 
(4) The transition of unmanned systems unique to one 
military department to joint systems, when appropriate. 
(5) An organizational structure for effective management, 
coordination, and budgeting for the development and procure-
ment of unmanned systems, including an assessment of the 
feasibility and advisability of designating a single department 
or other element of the Department of Defense to act as execu-
tive agent for the Department on unmanned systems. 
(6) The integration of unmanned and manned systems to 
enhance support of the missions identified in paragraph (1). 
(7) Such other matters that the Secretary of Defense con-
siders to be appropriate. 
(c) CONSULTATION.—The Secretary of Defense shall develop the 
policy required by subsection (a) in consultation with the Chairman 
of the Joint Chiefs of Staff. 
(d) REPORT.—Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall submit to the congres-
sional defense committees a report containing—
(1) the policy required by subsection (a); and 
(2) an implementation plan for the policy that includes—
(A) a strategy and schedules for the replacement of 
manned systems with unmanned systems in the perform-
ance of the missions identified in the policy pursuant to 
subsection (b)(1);
H. R. 5122—283
(B) establishment of programs to address technical, 
operational, and production challenges, and gaps in 
capabilities, with respect to unmanned systems; and 
(C) an assessment of progress towards meeting the 
goals identified for the subset of unmanned air and ground 
systems established in section 220 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106–398; 114 Stat. 
1654A–38). 
(e) UNMANNED SYSTEMS DEFINED.—In this section, the term 
‘‘unmanned systems’’ consists of unmanned aerial systems, 
unmanned ground systems, and unmanned maritime systems. 
SEC. 942. EXECUTIVE SCHEDULE LEVEL IV FOR DEPUTY UNDER SEC-
RETARY OF DEFENSE FOR LOGISTICS AND MATERIEL 
READINESS. 
(a) EXECUTIVE SCHEDULE LEVEL IV.—Section 5315 of title 5, 
United States Code, is amended by inserting after the item relating 
to the Deputy Under Secretary of Defense for Personnel and Readi-
ness the following new item:
‘‘Deputy Under Secretary of Defense for Logistics and Mate-
riel Readiness.’’. 
(b) CONFORMING AMENDMENT.—Section 5314 of title 5, United 
States Code, is amended by striking the item relating to the Deputy 
Under Secretary of Defense for Logistics and Materiel Readiness. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to individuals appointed as Deputy Under 
Secretary of Defense for Logistics and Materiel Readiness on or 
after that date. 
SEC. 943. STUDY AND REPORT ON REFORM OF DEFENSE TRAVEL 
SYSTEM. 
(a) INDEPENDENT STUDY OF SYSTEM.—
(1) STUDY REQUIRED.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees the results 
and recommendations of an independent study of the Defense 
Travel System conducted to determine the most cost-effect 
method of meeting Department of Defense travel requirements. 
The study shall be conducted by an entity outside the Depart-
ment of Defense. 
(2) ELEMENTS
OF
STUDY.—At a minimum, the study 
required by this subsection shall address the following: 
(A) The feasibility of separating the financial infra-
structure of the Defense Travel System, including voucher 
processing, accounting, disbursing, debt collection, manage-
ment accountability, and archival functions, from the travel 
reservation process. 
(B) The feasibility of converting the travel reservation 
process to a fee-for-services system or authorizing the use 
of multiple travel reservation processes, all of which proc-
esses would use the financial infrastructure of the Defense 
Travel System. 
(C) The feasibility of making the use of the financial 
infrastructure of the Defense Travel System mandatory 
for all Department of Defense travel transactions.
H. R. 5122—284
(b) IMPLEMENTATION PLANS.—Not later than 60 days after the 
Secretary of Defense receives the independent study required by 
subsection (a), the Secretary shall submit to the congressional 
defense committees a report describing the actions, if any, that 
the Secretary intends to take to implement the recommendations 
contained in the study. If the Secretary does not intend to imple-
ment any of the recommendations, the Secretary shall explain the 
basis for this decision. 
(c) CONDITIONS
ON NEW CONTRACT
OR EXPENDITURES
FOR 
DEFENSE TRAVEL SYSTEM.—Except to continue operations to provide 
current services and to perform the functions described in para-
graphs (1) through (3), the Secretary of Defense may not initiate 
a new contract for the Defense Travel System or expend funds 
for the Defense Travel System until each of the following occurs: 
(1) The Secretary submits the report required by subsection 
(b). 
(2) The Secretary develops firm, fixed requirements for 
the Defense Travel System. 
(3) The Secretary develops a schedule to phase out the 
legacy travel systems made redundant by implementation of 
the Defense Travel System. 
SEC. 944. ADMINISTRATION OF PILOT PROJECT ON CIVILIAN LINGUIST 
RESERVE CORPS. 
(a) TRANSFER OF ADMINISTRATION TO SECRETARY OF DEFENSE.—
(1) IN GENERAL.—Administration of the pilot project on 
the establishment of a Civilian Linguist Reserve Corps required 
by section 613 of the Intelligence Authorization Act for Fiscal 
Year 2005 (Public Law 108–487; 118 Stat. 3959; 50 U.S.C. 
403–1b note) is hereby transferred from the Director of National 
Intelligence to the Secretary of Defense. 
(2) CONFORMING AMENDMENTS.—Section 613 of the Intel-
ligence Authorization Act for Fiscal Year 2005 is amended—
(A) by striking ‘‘Director of National Intelligence’’ each 
place it appears and inserting ‘‘Secretary of Defense’’; and 
(B) by striking ‘‘Director’’ each place it appears and 
inserting ‘‘Secretary’’. 
(b) COORDINATION WITH DIRECTOR OF NATIONAL INTELLIGENCE 
IN ADMINISTRATION.—Subsection (a) of such section is further 
amended—
(1) by inserting ‘‘(1)’’ after ‘‘PILOT PROJECT.—’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) The Secretary shall conduct the pilot project in coordination 
with the Director of National Intelligence.’’. 
(c) DISCHARGE OF PROJECT THROUGH NATIONAL SECURITY EDU-
CATION
PROGRAM.—Subsection (a) of such section is further 
amended by adding at the end the following new paragraph: 
‘‘(3) The Secretary shall conduct the pilot project through the 
National Security Education Program.’’. 
(d) DURATION OF PROJECT.—Subsection (c) of such section is 
amended by striking ‘‘three-year period’’ and inserting ‘‘five-year 
period’’. 
(e) REPEAL OF SUPERSEDED AUTHORIZATION.—Such section is 
further amended by striking subsection (f).
H. R. 5122—285
SEC. 945. IMPROVEMENT OF AUTHORITIES ON THE NATIONAL SECU-
RITY EDUCATION PROGRAM. 
(a) EXPANSION OF EMPLOYMENT CREDITABLE UNDER SERVICE 
AGREEMENTS.—Paragraph (2) of subsection (b) of section 802 of 
the David L. Boren National Security Education Act of 1991 (50 
U.S.C. 1902) is amended to read as follows: 
‘‘(2)(A) will (in accordance with regulations prescribed by 
the Secretary of Defense in coordination with the heads of 
the other Federal departments and agencies concerned) begin 
work not later than three years after the recipient’s completion 
of degree study during which scholarship assistance was pro-
vided under the program—
‘‘(i) for not less than one year in a position certified 
by the Secretary of Defense, in coordination with the 
Director of National Intelligence, the Secretary of 
Homeland Security, and the Secretary of State (as 
appropriate), as contributing to the national security 
of the United States in the Department of Defense, 
any element of the intelligence community, the Depart-
ment of Homeland Security, or the Department of 
State; or 
‘‘(ii) for not less than one year in a position in 
a Federal agency or office that is identified by the 
Secretary of Defense under subsection (g) as having 
national security responsibilities if the recipient dem-
onstrates to the Secretary that no position is available 
in the departments and agencies covered by clause 
(i); or 
‘‘(B) will (in accordance with such regulations) begin 
work not later than two years after the recipient’s comple-
tion or termination of study for which fellowship assistance 
was provided under the program—
‘‘(i) for not less than one year in a position certified 
by the Secretary of Defense, in coordination with the 
Director of National Intelligence, the Secretary of 
Homeland Security, and the Secretary of State (as 
appropriate), as contributing to the national security 
of the United States in the Department of Defense, 
any element of the intelligence community, the Depart-
ment of Homeland Security, or the Department of 
State; or 
‘‘(ii) for not less than one year in a position in 
a Federal agency or office that is identified by the 
Secretary of Defense under subsection (g) as having 
national security responsibilities if the recipient dem-
onstrates to the Secretary that no position is available 
in the departments and agencies covered by clause 
(i); and’’. 
(b) TEMPORARY EMPLOYMENT
AND RETENTION
OF CERTAIN 
PARTICIPANTS.—Such section is further amended—
(1) by redesignating subsections (h) and (i) as subsections 
(i) and (j), respectively; and 
(2) by inserting after subsection (g) the following new sub-
section (h): 
‘‘(h) TEMPORARY EMPLOYMENT
AND RETENTION
OF CERTAIN 
PARTICIPANTS.—
‘‘(1) IN GENERAL.—The Secretary of Defense may—
H. R. 5122—286
‘‘(A) appoint or retain a person provided scholarship 
or fellowship assistance under the program in a position 
in the Department of Defense on an interim basis during 
the period of the person’s pursuit of a degree under the 
program and for a period not to exceed two years after 
completion of the degree, but only if, in the case of the 
period after completion of the degree, there is an active 
investigation to provide security clearance to the person 
for an appropriate permanent position in the Department 
of Defense under subsection (b)(2); and 
‘‘(B) if there is no appropriate permanent position avail-
able for the person after the end of the periods described 
in subparagraph (A), separate the person from employment 
with the Department without regard to any other provision 
of law, in which event the service agreement of the person 
under subsection (b) shall terminate. 
‘‘(2) TREATMENT OF CERTAIN SERVICE.—The period of service 
of a person covered by paragraph (1) in a position on an 
interim basis under that paragraph shall, after completion of 
the degree, be treated as a period of service for purposes of 
satisfying the obligated service requirements of the person 
under the service agreement of the person under subsection 
(b).’’. 
(c) PLAN FOR IMPROVING PROGRAM.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a plan for improving the recruitment, 
placement, and retention within the Department of Defense of 
individuals who receive scholarships or fellowships under the David 
L. Boren National Security Education Act of 1991 (50 U.S.C. 1901 
et seq.) in order to facilitate the purposes of that Act in meeting 
the requirements of the Department in acquiring individuals with 
critical foreign language skills and individuals who are regional 
experts. 
SEC. 946. REPORT ON THE POSTURE OF UNITED STATES SPECIAL 
OPERATIONS COMMAND TO CONDUCT THE GLOBAL WAR 
ON TERRORISM. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The 2006 Quadrennial Defense Review recommends 
an increase in the size of the United States Special Operations 
Command as a fundamental part of the efforts of the Depart-
ment of Defense to fight the global war on terrorism. 
(2) Special operations forces conducting all nine of their 
statutory activities, as specified in section 167(j) of title 10, 
United States Code, play a crucial role in the global war on 
terrorism, and the Department of Defense should take a bal-
anced approach to the expansion of the force structure of that 
command to provide additional capability in both the active 
and reserve components. 
(3) Special operations forces are engaged in operations 
across the globe and in extreme and varied operational environ-
ments which require specialized training to successfully operate 
in those environments. 
(4) Due to the global and long-term nature of the global 
war on terrorism, the Secretary of Defense should assess 
whether the United States Special Operations Command has
H. R. 5122—287
the appropriate force structure and training focus required 
for successful operations in the global war on terrorism. 
(b) REPORT ON POSTURE OF SOCOM TO CONDUCT THE GLOBAL 
WAR ON TERRORISM.—Not later than six months after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report assessing the 
posture of the United States Special Operations Command to con-
duct the global war on terrorism. The Secretary shall include in 
the report the following: 
(1) The Secretary’s assessment of whether the United 
States Special Operations Command is appropriately manned, 
resourced, and equipped to successfully meet the long-term 
requirements of the global war on terrorism. 
(2) The Secretary’s assessment whether the expansion of 
that command as recommended in the 2006 Quadrennial 
Defense Review provides an appropriate balance between active 
and reserve component capabilities. 
(3) The Secretary’s assessment of whether United States 
Special Operations Command has sufficient Army Special 
Forces to meet the 2006 Quadrennial Defense Review objective 
of building allied and partner nation capacity through security 
assistance and other training missions such as the Joint Com-
bined Exchange Training program. 
(4) A detailed statement of the efforts of the commander 
of the United States Special Operations Command to provide 
special operations forces personnel with specialized environ-
mental training in preparation for operations across the globe 
and in extreme and varied operational environments such as 
mountain, jungle, or desert environments. 
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters 
Sec. 1001. General transfer authority. 
Sec. 1002. Authorization of additional emergency supplemental appropriations for 
fiscal year 2006. 
Sec. 1003. Reduction in certain authorizations due to savings relating to lower in-
flation. 
Sec. 1004. Increase in fiscal year 2006 general transfer authority. 
Sec. 1005. United States contribution to NATO common-funded budgets in fiscal 
year 2007. 
Sec. 1006. Report on budgeting for fluctuations in fuel cost rates. 
Sec. 1007. Modification of date of submittal of OMB/CBO report on scoring of out-
lays. 
Sec. 1008. Budgeting for ongoing military operations in Afghanistan and Iraq. 
Subtitle B—Policy Relating to Vessels and Shipyards 
Sec. 1011. Aircraft carrier force structure. 
Sec. 1012. Sense of Congress on naming the CVN–78 aircraft carrier as the U.S.S. 
Gerald R. Ford. 
Sec. 1013. Transfer of naval vessels to foreign nations based upon vessel class. 
Sec. 1014. Overhaul, repair, and maintenance of vessels in foreign shipyards. 
Sec. 1015. Report on options for future lease arrangement for Guam Shipyard. 
Sec. 1016. Assessments of naval vessel construction efficiencies and of effectiveness 
of special contractor incentives. 
Sec. 1017. Obtaining carriage by vessel: criterion regarding overhaul, repair, and 
maintenance of vessels in the United States. 
Sec. 1018. Riding gang member requirements. 
Sec. 1019. Authority to transfer SS Arthur M. Huddell to the Government of 
Greece.
H. R. 5122—288
Subtitle C—Counter-Drug Activities 
Sec. 1021. Extension of authority of Department of Defense to provide additional 
support for counterdrug activities of other governmental agencies. 
Sec. 1022. Extension and expansion of Department of Defense authority to provide 
support for counter-drug activities of certain foreign governments. 
Sec. 1023. Extension 
of 
authority 
to 
support 
unified 
counterdrug 
and 
counterterrorism campaign in Colombia. 
Sec. 1024. Continuation of reporting requirement regarding Department of Defense 
expenditures to support foreign counterdrug activities. 
Sec. 1025. Report on interagency counter-narcotics plan for Afghanistan and South 
and Central Asian regions. 
Sec. 1026. Report on United States support for Operation Bahamas, Turks & 
Caicos. 
Subtitle D—Force Structure and Defense Policy Matters 
Sec. 1031. Improvements to Quadrennial Defense Review. 
Sec. 1032. Quarterly reports on implementation of 2006 Quadrennial Defense Re-
view Report. 
Sec. 1033. Report on feasibility of establishing a regional combatant command for 
Africa. 
Sec. 1034. Determination of Department of Defense intratheater and intertheater 
airlift requirements and sealift mobility requirements. 
Sec. 1035. Presidential report on improving interagency support for United States 
21st century national security missions and interagency operations in 
support of stability, security, transition, and reconstruction operations. 
Subtitle E—Reports 
Sec. 1041. Additional element in annual report on chemical and biological warfare 
defense. 
Sec. 1042. Report on biodefense human capital requirements in support of biosafety 
laboratories. 
Sec. 1043. Report on technologies for neutralizing or defeating threats to military 
rotary-wing aircraft from portable air defense systems and rocket-pro-
pelled grenades. 
Sec. 1044. Reports on expanded use of unmanned aerial vehicles in the National 
Airspace System. 
Sec. 1045. Report on incentives to encourage certain members and former members 
of the Armed Forces to serve in the Bureau of Customs and Border Pro-
tection. 
Sec. 1046. Repeal of certain report requirements. 
Sec. 1047. Requirement for identification of recently enacted recurring reporting re-
quirements applicable to the Department of Defense. 
Subtitle F—Miscellaneous Authorities and Limitations on Availability and Use of 
Funds 
Sec. 1051. Acceptance and retention of reimbursement from non-Federal sources to 
defray Department of Defense costs of conferences. 
Sec. 1052. Increased flexibility in use of funds for Joint Staff exercises. 
Sec. 1053. Prohibition on parking of funds. 
Sec. 1054. Modification of authorities relating to the Special Inspector General for 
Iraq Reconstruction. 
Subtitle G—Matters Involving Detainees 
Sec. 1061. Provision of information to Congress on certain criminal investigations 
and prosecutions involving detainees. 
Subtitle H—Other Matters 
Sec. 1071. Technical and clerical amendments. 
Sec. 1072. Revision to authorities relating to Commission on the Implementation of 
the New Strategic Posture of the United States. 
Sec. 1073. Revised deadline for submission of final report of EMP Commission. 
Sec. 1074. Extension of returning worker exemption to H–2B numerical limitation. 
Sec. 1075. Patent term extensions for the badges of the American Legion, the 
American Legion Women’s Auxiliary, and the Sons of the American Le-
gion. 
Sec. 1076. Use of the Armed Forces in major public emergencies. 
Sec. 1077. Increased hunting and fishing opportunities for members of the Armed 
Forces, retired members, and disabled veterans.
H. R. 5122—289
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) AUTHORITY.—Upon determination by the Secretary of 
Defense that such action is necessary in the national interest, 
the Secretary may transfer amounts of authorizations made 
available to the Department of Defense in this division for 
fiscal year 2007 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of authorizations 
so transferred shall be merged with and be available for the 
same purposes as the authorization to which transferred. 
(2) LIMITATION.—The total amount of authorizations that 
the Secretary may transfer under the authority of this section 
may not exceed $4,500,000,000. 
(b) LIMITATIONS.—The authority provided by this section to 
transfer authorizations—
(1) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(2) may not be used to provide authority for an item that 
has been denied authorization by Congress. 
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify 
Congress of each transfer made under subsection (a). 
SEC. 1002. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLE-
MENTAL APPROPRIATIONS FOR FISCAL YEAR 2006. 
(a) IRAQ, AFGHANISTAN, AND THE GLOBAL WAR ON TERROR.—
Amounts authorized to be appropriated to the Department of 
Defense for fiscal year 2006 in the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109–163) are hereby adjusted, 
with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased 
by a supplemental appropriation, or decreased by a rescission, or 
both, or are increased by a transfer of funds, pursuant to title 
I of the Emergency Supplemental Appropriations Act for Defense, 
the Global War on Terror, and Hurricane Recovery, 2006 (Public 
Law 109–234). 
(b) HURRICANE DISASTER RELIEF
AND RECOVERY.—Amounts 
authorized to be appropriated to the Department of Defense for 
fiscal year 2006 in the National Defense Authorization Act for 
Fiscal Year 2006 are hereby adjusted, with respect to any such 
authorized amount, by the amount by which appropriations pursu-
ant to such authorization are increased by a supplemental appro-
priation, or decreased by a rescission, or both, or are increased 
by a transfer of funds, pursuant to title II of the Emergency Supple-
mental Appropriations Act for Defense, the Global War on Terror, 
and Hurricane Recovery, 2006. 
(c) BORDER SECURITY.—Amounts authorized to be appropriated 
to the Department of Defense for fiscal year 2006 in the National 
Defense Authorization Act for Fiscal Year 2006 are hereby adjusted,
H. R. 5122—290
with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased 
by a supplemental appropriation, or decreased by a rescission, or 
both, or are increased by a transfer of funds, pursuant to title 
V of the Emergency Supplemental Appropriations Act for Defense, 
the Global War on Terror, and Hurricane Recovery, 2006. 
SEC. 1003. REDUCTION IN CERTAIN AUTHORIZATIONS DUE TO SAVINGS 
RELATING TO LOWER INFLATION. 
(a) REDUCTION.—The aggregate amount authorized to be appro-
priated by titles I, II, and III is the amount equal to the sum 
of all the amounts authorized to be appropriated by such titles 
reduced by $757,051,000. 
(b) SOURCE
OF SAVINGS.—Reductions required in order to 
comply with subsection (a) shall be derived from savings resulting 
from lower-than-expected inflation as a result of a review of the 
inflation assumptions used in the preparation of the budget of 
the President for fiscal year 2007, as submitted to Congress pursu-
ant to section 1005 of title 31, United States Code. 
(c) ALLOCATION OF REDUCTION.—The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the amounts 
authorized to be appropriated for accounts in titles I, II, and III 
to reflect the extent to which net savings from lower-than-expected 
inflation are allocable to amounts authorized to be appropriated 
to such accounts. 
SEC. 1004. INCREASE IN FISCAL YEAR 2006 GENERAL TRANSFER 
AUTHORITY. 
Section 1001(a)(2) of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3418) is 
amended 
by 
striking 
‘‘$3,500,000,000’’ 
and 
inserting 
‘‘$5,000,000,000’’. 
SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
BUDGETS IN FISCAL YEAR 2007. 
(a) FISCAL YEAR 2007 LIMITATION.—The total amount contrib-
uted by the Secretary of Defense in fiscal year 2007 for the common-
funded budgets of NATO may be any amount up to, but not in 
excess of, the amount specified in subsection (b) (rather than the 
maximum amount that would otherwise be applicable to those 
contributions under the fiscal year 1998 baseline limitation). 
(b) TOTAL AMOUNT.—The amount of the limitation applicable 
under subsection (a) is the sum of the following: 
(1) The amounts of unexpended balances, as of the end 
of fiscal year 2006, of funds appropriated for fiscal years before 
fiscal year 2007 for payments for those budgets. 
(2) The amount specified in subsection (c)(1). 
(3) The amount specified in subsection (c)(2). 
(4) The total amount of the contributions authorized to 
be made under section 2501. 
(c) AUTHORIZED AMOUNTS.—Amounts authorized to be appro-
priated by titles II and III of this Act are available for contributions 
for the common-funded budgets of NATO as follows: 
(1) Of the amount provided in section 201(1), $797,000 
for the Civil Budget. 
(2) Of the amount provided in section 301(1), $310,277,000 
for the Military Budget. 
(d) DEFINITIONS.—For purposes of this section:
H. R. 5122—291
(1) 
COMMON-FUNDED
BUDGETS
OF
NATO.—The 
term 
‘‘common-funded budgets of NATO’’ means the Military Budget, 
the Security Investment Program, and the Civil Budget of 
the North Atlantic Treaty Organization (and any successor 
or additional account or program of NATO). 
(2) FISCAL
YEAR
1998
BASELINE
LIMITATION.—The term 
‘‘fiscal year 1998 baseline limitation’’ means the maximum 
annual amount of Department of Defense contributions for 
common-funded budgets of NATO that is set forth as the annual 
limitation in section 3(2)(C)(ii) of the resolution of the Senate 
giving the advice and consent of the Senate to the ratification 
of the Protocols to the North Atlantic Treaty of 1949 on the 
Accession of Poland, Hungary, and the Czech Republic (as 
defined in section 4(7) of that resolution), approved by the 
Senate on April 30, 1998. 
SEC. 1006. REPORT ON BUDGETING FOR FLUCTUATIONS IN FUEL COST 
RATES. 
(a) SECRETARY OF DEFENSE REPORT.—
(1) REPORT ON BUDGETING FOR FUEL COST FLUCTUATIONS.—
Not later than February 15, 2007, the Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Rep-
resentatives a report on the fuel rate and cost projection used 
in the annual Department of Defense budget presentation. 
(2) MATTERS TO BE INCLUDED.—In the report under para-
graph (1), the Secretary shall—
(A) identify alternative approaches for selecting fuel 
rates that would produce more realistic estimates of 
amounts required to be appropriated or otherwise made 
available for the Department of Defense to accommodate 
fuel rate fluctuations; 
(B) discuss the advantages and disadvantages of each 
approach identified pursuant to subparagraph (A); and 
(C) identify the Secretary’s preferred approach among 
the alternative identified pursuant to subparagraph (A) 
and provide the Secretary’s rationale for preferring that 
approach. 
(3) IDENTIFICATION
OF
ALTERNATIVE
APPROACHES.—In 
identifying alternative approaches pursuant to paragraph 
(2)(A), the Secretary shall examine—
(A) approaches used by other Federal departments and 
agencies; and 
(B) the feasibility of using private economic forecasting. 
(b) COMPTROLLER GENERAL REVIEW AND REPORT.—The Comp-
troller General shall review the report under subsection (a), 
including the basis for the Secretary’s conclusions stated in the 
report, and shall submit, not later than March 15, 2007, to the 
Committee on Armed Services of the Senate and the Committee 
on Armed Services of the House of Representatives a report con-
taining the results of that review. 
SEC. 1007. MODIFICATION OF DATE OF SUBMITTAL OF OMB/CBO 
REPORT ON SCORING OF OUTLAYS. 
Section 226(a) of title 10, United States Code, is amended 
by striking ‘‘January 15 of each year’’ and inserting ‘‘April 1 of 
each year’’.
H. R. 5122—292
SEC. 1008. BUDGETING FOR ONGOING MILITARY OPERATIONS IN 
AFGHANISTAN AND IRAQ. 
The President’s budget submitted to Congress pursuant to sec-
tion 1105(a) of title 31, United States Code, for each fiscal year 
after fiscal year 2007 shall include—
(1) a request for the appropriation of funds for such fiscal 
year for ongoing military operations in Afghanistan and Iraq; 
(2) an estimate of all funds expected to be required in 
that fiscal year for such operations; and 
(3) a detailed justification of the funds requested. 
Subtitle B—Policy Relating to Vessels and 
Shipyards 
SEC. 1011. AIRCRAFT CARRIER FORCE STRUCTURE. 
(a) REDUCTION IN MINIMUM NUMBER OF OPERATIONAL AIRCRAFT 
CARRIERS REQUIRED BY LAW.—Section 5062(b) of title 10, United 
States Code, is amended by striking ‘‘12’’ and inserting ‘‘11’’. 
(b) REQUIRED CERTIFICATION BEFORE RETIREMENT OF U.S.S. 
JOHN F. KENNEDY.—The Secretary of the Navy may not retire 
the U.S.S. John F. Kennedy (CV–67) from operational status unless 
the Secretary of Defense first submits to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of 
the House of Representatives the Secretary’s certification that the 
Secretary has received—
(1) a formal notice from the Secretary of Homeland Security 
that the Department of Homeland Security does not desire 
to maintain and operate that vessel; and 
(2) a formal notice from the North Atlantic Treaty 
Organization that the North Atlantic Treaty Organization does 
not desire to maintain and operate that vessel. 
(c) CONDITIONS ON STATUS OF U.S.S. JOHN F. KENNEDY IF 
RETIRED.—Upon the retirement from operational status of the 
U.S.S. John F. Kennedy (CV–67), the Secretary of the Navy—
(1) while the vessel is in the custody and control of the 
Navy, shall maintain that vessel in a state of preservation 
(including configuration control, dehumidification, cathodic 
protection, and maintenance of spares) that would allow for 
reactivation of that vessel in the event that the vessel was 
needed in response to a national emergency; and 
(2) if the vessel is transferred from the custody and control 
of the Navy, shall require as a condition of such transfer 
that—
(A) if the President declares a national emergency 
pursuant to the National Emergencies Act (50 U.S.C. 1601 
et seq.), the transferee shall, upon request of the Secretary 
of Defense, return the vessel to the United States; and 
(B) in such a case (unless the transferee is otherwise 
notified by the Secretary), title to the vessel shall revert 
immediately to the United States. 
SEC. 1012. SENSE OF CONGRESS ON NAMING THE CVN–78 AIRCRAFT 
CARRIER AS THE U.S.S. GERALD R. FORD. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Gerald R. Ford has served his country with honor 
and distinction for the past 64 years, and continues to serve.
H. R. 5122—293
(2) Gerald R. Ford was commissioned in the Naval Reserve 
in 1942 and served valiantly at sea on the U.S.S. Monterey 
(CVL–26) during World War II, taking part in major operations 
in the Pacific, including at Makin Island, Kwajalein, Truk, 
Saipan, and the Philippine Sea. 
(3) Gerald R. Ford received 9 engagement stars and 2 
bronze stars for his service in the Navy during World War 
II. 
(4) Gerald R. Ford was first elected to the House of Rep-
resentatives in 1948. 
(5) During 25 years of service in the House of Representa-
tives, Gerald R. Ford distinguished himself by an exemplary 
record for character, decency, and trustworthiness. 
(6) Throughout his service in the House of Representatives, 
Gerald R. Ford was an ardent proponent of strong national 
defense and international leadership by the United States. 
(7) From 1965 to 1973, Gerald R. Ford served as minority 
leader of the House of Representatives, raising the standard 
for bipartisanship in his tireless fight for freedom, hope, and 
justice. 
(8) In 1973, Gerald R. Ford was appointed by President 
Nixon to the office of Vice President of the United States 
under the 25th Amendment to the Constitution, having been 
confirmed by overwhelming majorities in both Houses of Con-
gress. 
(9) On August 9, 1974, Gerald R. Ford became the 38th 
President of the United States, taking office during one of 
the most challenging periods in the history of the United States. 
(10) As President from August 9, 1974, to January 20, 
1977, Gerald R. Ford restored the faith of the people of the 
United States in the office of the President through his steady 
leadership, courage, and ultimate integrity. 
(11) As President, Gerald R. Ford helped restore the pres-
tige of the United States in the world community by working 
to achieve peace in the Middle East, preserve detente with 
the Soviet Union, and set new limits on the spread of nuclear 
weapons. 
(12) As President, Gerald R. Ford served as Commander 
in Chief of the Armed Forces with great dignity, supporting 
a strong Navy and a global military presence for the United 
States and honoring the members of the Armed Forces. 
(13) Since leaving the office of President, Gerald R. Ford 
has been an international ambassador of American goodwill, 
a noted scholar and lecturer, a strong supporter of human 
rights, and a promoter of higher education. 
(14) Gerald R. Ford was awarded the Medal of Freedom 
and the Congressional Gold Medal in 1999 in recognition of 
his contribution to the Nation. 
(15) As President, Gerald R. Ford bore the weight of a 
constitutional crisis and guided the Nation on a path of healing 
and restored hope, earning forever the enduring respect and 
gratitude of the Nation. 
(b) NAMING OF CVN–78 AIRCRAFT CARRIER.—It is the sense 
of Congress that the nuclear-powered aircraft carrier of the Navy 
designated as CVN–78 should be named the U.S.S. Gerald R. Ford.
H. R. 5122—294
SEC. 1013. TRANSFER OF NAVAL VESSELS TO FOREIGN NATIONS BASED 
UPON VESSEL CLASS. 
Section 7307(a) of title 10, United States Code, is amended—
(1) by striking ‘‘disposition of that vessel is approved’’ and 
inserting ‘‘disposal of that vessel, or of a vessel of the class 
of that vessel, is authorized’’; and 
(2) by adding at the end the following new sentences: 
‘‘In the case of an authorization by law for the disposal of 
such a vessel that names a specific vessel as being authorized 
for such disposal, the Secretary of Defense may substitute 
another vessel of the same class, if the vessel substituted has 
virtually identical capabilities as the named vessel. In the 
case of an authorization by law for the disposal of vessels 
of a specified class, the Secretary may dispose of vessels of 
that class pursuant to that authorization only in the number 
of such vessels specified in that law as being authorized for 
disposal.’’. 
SEC. 1014. OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN 
FOREIGN SHIPYARDS. 
Section 7310(a) of title 10, United States Code, is amended—
(1) by inserting ‘‘OR GUAM’’ in the subsection heading after 
‘‘UNITED STATES’’; and 
(2) by inserting ‘‘or Guam’’ after ‘‘in the United States’’. 
SEC. 1015. REPORT ON OPTIONS FOR FUTURE LEASE ARRANGEMENT 
FOR GUAM SHIPYARD. 
(a) REPORT REQUIRED.—Not later than December 15, 2006, 
the Secretary of the Navy shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Service of 
the House of Representatives a report describing the options avail-
able with respect to the Guam Shipyard in Santa Rita, Guam. 
(b) CONTENTS
OF REPORT.—The report required under sub-
section (a) shall include the following: 
(1) An evaluation of the performance of the entities that, 
as of the date of the enactment of this Act, are the lessee 
and operators of the Guam Shipyard under the terms of the 
lease in effect on the date of the enactment of this Act. 
(2) An evaluation of each of the following options with 
respect to the Guam Shipyard lease: 
(A) Terminating the remaining term of the lease and 
issuing a new 25 year lease with the same entity. 
(B) Terminating the remaining term of the lease with 
respect to the approximately 73 acres within the Guam 
Shipyard that are required for mission requirements and 
leaving the remaining term of the lease in effect with 
respect to the approximately 27 acres within the Facility 
that are not required for mission requirements. 
(C) Terminating the remaining term of the lease and 
negotiating a new use arrangement with a different lessee 
or operator. The new use arrangement options shall 
include: 
(i) Government-owned and government-operated 
facility. 
(ii) Government-owned and contractor-operated 
facility.
H. R. 5122—295
(iii) Government-leased property for contractor-
owned and contractor-operated facility. 
(c) OPTIONS FOR NEW USE ARRANGEMENTS.—In evaluating the 
options under subsection (b)(2)(C), the Secretary of the Navy shall 
include an evaluation of each of the following: 
(1) The anticipated future military vessel repair and work-
load on Guam in relation to the 2006 Quadrennial Defense 
Review, issued on February 6, 2006, pursuant to section 118 
of title 10, United States Code. 
(2) The anticipated military vessel repair and workload 
attributable to vessels comprising the Maritime Prepositioning 
Ship Squadron Three. 
(3) The anticipated military vessel repair and workload 
due to a change in section 7310 of title 10, United States 
Code, that would designate Guam as a United States homeport 
facility. 
(4) The expected workload if the submarine tender the 
U.S.S. Frank Cable (AS–40) is decommissioned. 
(5) The estimated reacquisition costs of transferred Govern-
ment property. 
(6) Costs to improve floating dry dock mooring certification 
and required nuclear certification for the floating dry dock 
designated as AFDB–8 to conduct the following maintenance: 
(A) Dry-docking selected restricted availabilities and 
mid-term availability for attack submarines. 
(B) Dry-docking phased maintenance availabilities for 
amphibious vessels, including to amphibious assault ships, 
dock landing ships, and amphibious transport dock ships. 
(C) Dry-docking phased maintenance availabilities for 
surface combatants, including cruisers, destroyers, and frig-
ates. 
(7) Commercial opportunities for development to expand 
commercial ship repair and general industrial services, given 
anti-terrorism force protection requirements at the current 
facility. 
(8) Estimates from three contractors for the maintenance 
and repair costs associated with executing a multiship, multi-
option contract that would generate a minimum 60,000 manday 
commitment for the Department of the Navy and Military 
Sealift Command vessels. 
(9) A projection of the maintenance and repair costs associ-
ated with executing a minimum 60,000 mandays for the Depart-
ment of the Navy and Military Sealift Command vessels as 
a Government-owned and Government-operated Navy ship 
repair facility. 
(d) INPUT FROM CONTRACTORS.—In evaluating the options 
under clauses (ii) and (iii) of subsection (b)(2)(C) for the purposes 
of paragraphs (1), (2), and (3) of subsection (c), the Secretary of 
the Navy shall seek input from at least three contractors on the 
viability of operations based on the projected workload fiscal years 
2008 through 2013. 
(e) RECOMMENDATIONS.—The Secretary of the Navy shall 
include in the report required under subsection (a) the following: 
(1) The recommendations of the Secretary with respect 
to continuation of the existing Guam Shipyard lease based 
on evaluations conducted pursuant to subsection (b)(1).