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ment to reflect engineering design changes made 
during the performance of the agreement and affect-
ing the form, fit, and function of the items specified 
in the agreement and to deliver such revised tech-
nical data to an agency within a time specified in 
the agreement; and 
‘‘(6) establishing remedies to be available to the 
United States when technical data required to be de-
livered or made available under the agreement is 
found to be incomplete or inadequate or to not sat-
isfy the requirements of the agreement concerning 
technical data. 
‘‘(c) ASSESSMENT OF LONG-TERM TECHNICAL DATA 
NEEDS.—The Secretary of Defense shall require the pro-
gram manager for a major weapon system or an item of 
personnel protective equipment that is to be developed 
using a non-FAR agreement described in subsection (a) 
to assess the long-term technical data needs of such sys-
tems and items, in accordance with the requirements of 
section 2320(e) of this title. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘non-FAR agreement’ means an 
agreement that is not subject to laws pursuant to 
which the Federal Acquisition Regulation is pre-
scribed, including— 
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‘‘(A) a transaction authorized under sec-
tion 2371 of this title; and 
‘‘(B) a cooperative research and develop-
ment agreement. 
‘‘(2) The term ‘party’, with respect to a non- 
FAR agreement, means a non-Federal entity and in-
cludes any of the following: 
‘‘(A) A contractor and its subcontractors 
(at any tier). 
‘‘(B) A joint venture. 
‘‘(C) A consortium.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 2320 
the following new item: 
‘‘2320a. Rights in technical data for non-FAR agreements.’’. 
(b) REPORT ON LIFE CYCLE PLANNING FOR TECH-
NICAL DATA NEEDS.—Not later than 120 days after the 
date of enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
implementation of the requirements in section 2320(e) of 
title 10, United States Code, for the assessment of long- 
term technical data needs to sustain major weapon sys-
tems. Such report shall include— 
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(1) a description of all relevant guidance or 
policies issued; 
(2) the extent to which program managers have 
received training to better assess the long-term tech-
nical data needs of major weapon systems and sub-
systems; 
(3) a description of the data rights strategies 
developed prior to the issuance of contract solicita-
tions released since October 17, 2006; and 
(4) a characterization of the extent to which 
such strategies made use of priced contract options 
for the future delivery of technical data or acquired 
all relevant technical data upon contract award. 
SEC. 815. CLARIFICATION THAT COST ACCOUNTING STAND-
ARDS APPLY TO FEDERAL CONTRACTS PER-
FORMED OUTSIDE THE UNITED STATES. 
(a) CLARIFICATION.—Section 26(f)(2)(A) of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 
422(f)(2)(A)) is amended by adding at the end the fol-
lowing: ‘‘, whether the contracts or subcontracts are per-
formed inside or outside the United States’’. 
(b) IMPLEMENTING REGULATIONS.—Not later than 
180 days after the date of the enactment of this Act, the 
cost accounting standards promulgated under section 26 
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of such Act shall be amended to take into account the 
amendment made by subsection (a). 
Subtitle C—Provisions Relating to 
Inherently Governmental Func-
tions 
SEC. 821. POLICY ON PERSONAL CONFLICTS OF INTEREST 
BY EMPLOYEES OF DEPARTMENT OF DE-
FENSE CONTRACTORS. 
(a) POLICY REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall develop a standard policy aimed at pre-
venting personal conflicts of interest by employees of De-
partment of Defense contractors that is similar to the pol-
icy of the Department of Defense aimed at preventing 
such conflicts by Department of Defense civilian employ-
ees. 
(b) ELEMENTS
OF POLICY.—The policy required 
under subsection (a) shall— 
(1) provide a definition of the term ‘‘personal 
conflict of interest’’ as it relates to employees of De-
partment of Defense contractors; 
(2) identify types of contracts that raise height-
ened concerns for potential personal conflicts of in-
terest; and 
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(3) require each contractor that participates in 
the Department’s decision-making in such mission- 
critical areas as the development, award, and admin-
istration of Government contracts, and each con-
tractor that is closely supporting inherently govern-
mental functions, to— 
(A) identify and prevent personal conflicts 
of interest for employees of the contractor who 
are performing such functions; 
(B) report any personal conflict-of-interest 
violation to the applicable contracting officer or 
contracting officer’s representative as soon as it 
is identified; 
(C) maintain effective oversight to verify 
compliance with personal conflict-of-interest 
safeguards; and 
(D) have procedures in place to screen for 
potential conflicts of interest for all employees 
in a position to make or materially influence 
findings, recommendations, and decisions re-
garding Department of Defense contracts and 
other advisory and assistance functions, either 
by screening on a task-by-task basis or on an 
annual basis. 
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(c) CONTRACT CLAUSE.—The Secretary shall include 
in each contract entered into by the Secretary for the per-
formance of functions described in subsection (b)(3) a 
clause that reflects the personal conflicts-of-interest policy 
developed under this section and that sets forth the con-
tractor’s responsibility under such policy. 
(d) PANEL
ON
CONTRACTING
INTEGRITY
REC-
OMMENDATIONS.—The Department of Defense Panel on 
Contracting Integrity, established by the section 813 of 
the John Warner National Defense Authorization Act for 
Fiscal Year 2007 (Public Law 109–364), shall consider 
and make recommendations on the feasibility of applying 
certain procurement integrity rules to employees of De-
partment of Defense contractors to include such rules re-
lated to— 
(1) improper business practices and personal 
conflicts of interest under Federal Acquisition Regu-
lations 3.104; 
(2) public corruption; 
(3) financial conflicts of interest; 
(4) seeking other employment conflicts of inter-
est; 
(5) gifts and travel; and 
(6) misuse of position or endorsement. 
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SEC. 822. DEVELOPMENT OF GUIDANCE ON PERSONAL 
SERVICES CONTRACTS. 
Not later than 120 days after the date of the enact-
ment of this Act, the Secretary of Defense shall develop 
guidance to— 
(1) establish a clear definition of the term ‘‘per-
sonal services contract’’; 
(2) require a clear distinction between employ-
ees of the Department of Defense and employees of 
Department of Defense contractors; 
(3) provide appropriate safeguards with respect 
to when, where, and to what extent the Secretary 
may enter into a contract for the procurement of 
personal services; and 
(4) assess and take steps to mitigate the risk 
that, as implemented and administered, non-personal 
services contracts may become personal services con-
tracts. 
SEC. 823. LIMITATION ON PERFORMANCE OF PRODUCT 
SUPPORT INTEGRATOR FUNCTIONS. 
(a) LIMITATION.— 
(1) IN
GENERAL.—Chapter 141 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
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‘‘§ 2410r. Performance-based logistics arrangements: 
limitation on product support integrator 
functions 
‘‘(a) LIMITATION.—A function that is a product sup-
port integrator function may be performed only by a mem-
ber of the armed forces or an employee of the Department 
of Defense. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘product support integrator func-
tion’ means, with respect to a performance-based lo-
gistics arrangement, the function of integrating all 
sources of support, both public and private, to 
achieve the specific outcomes specified in the ar-
rangement. 
‘‘(2) The term ‘performance-based logistics ar-
rangement’ means a performance-based contract, 
task order, or other arrangement for the logistics 
support— 
‘‘(A) of a weapon system or major end 
item over the life cycle of the system or item; 
or 
‘‘(B) of parts, assemblies, subassemblies, 
or platforms of a weapon system or major end 
item. 
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‘‘(3) The term ‘performance-based’ has the 
meaning given such term in section 2331(g) of this 
title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding after the item relating to section 2410q 
the following new item: 
‘‘2410r. Performance-based logistics arrangements: limitation on product sup-
port integrator functions.’’. 
(b) EFFECTIVE DATE.—Section 2410r of title 10, 
United States Code, as added by subsection (a), shall 
apply to performance-based logistics arrangements en-
tered into after September 30, 2010. 
SEC. 824. PERFORMANCE BY PRIVATE SECURITY CONTRAC-
TORS 
OF 
INHERENTLY 
GOVERNMENTAL 
FUNCTIONS IN AN AREA OF COMBAT OPER-
ATIONS. 
(a) MODIFICATION
OF REGULATIONS.—Not later 
than 60 days after the date of the enactment of this Act, 
the regulations prescribed by the Secretary of Defense 
pursuant to section 862(a) of the National Defense Au-
thorization Act for Fiscal Year 2008 (Public Law 110– 
181; 122 Stat. 254; 10 U.S.C. 2302 note) shall be modi-
fied to ensure that private security contractors are not au-
thorized to perform inherently governmental functions in 
an area of combat operations. 
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(b) GUIDANCE.—After the issuance of regulations to 
implement the actions required by section 322 of this Act, 
the Secretary of Defense shall issue supplementary guid-
ance to describe functions that should not be performed 
by private security contractors because they constitute in-
herently governmental functions. 
(c) PERIODIC REVIEW OF PERFORMANCE OF FUNC-
TIONS.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall, in coordination with the heads of other appro-
priate agencies, periodically review the performance 
of private security functions in areas of combat op-
erations to ensure that such functions are authorized 
and performed in a manner consistent with the re-
quirements of this section. 
(2) REPORTS.—Not later than June 1 of each 
of 2009, 2010, and 2011, the Secretary shall submit 
to the congressional defense committees a report on 
the results of the most recent review conducted 
under paragraph (1). 
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Subtitle D—Defense Industrial 
Security 
SEC. 831. REQUIREMENTS RELATING TO FACILITY CLEAR-
ANCES. 
Chapter 21 of title 10, United States Code, is amend-
ed by adding at the end the following new subchapter: 
‘‘SUBCHAPTER III—DEFENSE INDUSTRIAL 
SECURITY 
‘‘Sec. 438. Facility clearances: requirements. 
‘‘§ 438. Facility clearances: requirements 
‘‘(a) FACILITY
CLEARANCES: GENERAL
PROVI-
SIONS.— 
‘‘(1) ACCESS TO CLASSIFIED INFORMATION BY 
CONTRACTORS.—A contractor of the Department of 
Defense may not be granted custody of classified in-
formation unless the contractor has a facility clear-
ance. 
‘‘(2) REQUIREMENTS FOR ENTITIES WITH FA-
CILITY CLEARANCES.—An entity may not be granted 
a facility clearance by the Department of Defense or 
continue to hold such a facility clearance unless the 
entity agrees to comply with, and maintains compli-
ance with, the requirements set forth in this sub-
chapter. 
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‘‘(3) AUTHORITY TO REVOKE OR SUSPEND FA-
CILITY
CLEARANCES.—The Secretary of Defense 
may revoke or suspend a facility clearance granted 
by the Department of Defense at any time. 
‘‘(b) GENERAL
REQUIREMENTS
FOR
FACILITY 
CLEARANCES.—The Secretary of Defense shall require an 
entity granted a facility clearance by the Department of 
Defense to comply with the following requirements: 
‘‘(1) The entity shall safeguard classified infor-
mation in its possession. 
‘‘(2) The entity shall safeguard covered con-
trolled unclassified information in its possession. 
‘‘(3) The entity shall ensure that it complies 
with Department of Defense security agreements, 
contract provisions regarding security, and relevant 
regulations of the Department of Defense pertaining 
to industrial security. 
‘‘(4) The entity shall ensure that its business 
and management practices do not result in the com-
promise of classified information or adversely affect 
the performance of classified contracts. 
‘‘(5) The entity shall undergo a determination 
under section 439 of this title of whether the entity 
is under foreign ownership control or influence and 
shall comply with ongoing notification requirements 
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under that section related to foreign ownership and 
control. 
‘‘(c) REQUIREMENTS FOR DIRECTORS OF ENTITIES 
WITH FACILITY CLEARANCES.— 
‘‘(1) REQUIREMENTS.—Except as provided in 
paragraph (3), the Secretary of Defense shall re-
quire an entity with a facility clearance to require 
the directors on the entity’s board of directors to en-
sure, in their capacity as fiduciaries of the entity, 
that the entity employs and maintains policies and 
procedures that meet the general requirements for 
facility clearances listed in subsection (b). 
‘‘(2) BY-LAWS
REQUIREMENT.—The require-
ments of paragraph (1) shall be set forth in the by- 
laws of the entity. 
‘‘(3) EXCEPTIONS.—(A) The Secretary of De-
fense may waive the requirements of paragraph (1) 
for reasons of national security. In the event the 
Secretary grants such a waiver, the Secretary shall 
submit to the Committees on Armed Services of the 
Senate and the House of Representatives a notifica-
tion that such a waiver has been granted and a jus-
tification for granting the waiver. 
‘‘(B) The requirements of paragraph (1) shall 
not apply to an entity determined by the Secretary 
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of Defense under section 439(a) of this title to be 
under foreign ownership control or influence. 
‘‘(d) REQUIREMENTS RELATING TO SECURITY MAN-
AGEMENT OF ENTITIES WITH FACILITY CLEARANCES.— 
‘‘(1) DESIGNATION
OF
EMPLOYEE
RESPON-
SIBLE
FOR
SECURITY.—The Secretary of Defense 
shall require an entity, in consultation with and sub-
ject to the approval of the chairman of its board of 
directors, to designate an employee who meets the 
requirements of paragraph (2) to be responsible for 
the following: 
‘‘(A) Reporting to the board of directors of 
the entity as its principal advisor concerning 
the general requirements for facility clearances 
listed in subsection (b), the manner in which 
they are carried out through the policies and 
procedures required by subsection (c), and the 
related Federal requirements for classified in-
formation. 
‘‘(B) Supervising and directing security 
measures necessary for implementing such re-
quirements, policies, and procedures. 
‘‘(C) Establishing and administering all 
intracompany procedures to prevent unauthor-
ized disclosure and export of controlled unclas-
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sified information and ensuring that the entity 
otherwise complies with the requirements of 
Federal export control laws. 
‘‘(2) QUALIFICATIONS OF EMPLOYEE.—An em-
ployee may not be designated to be responsible for 
the matters described in paragraph (1) unless the 
employee— 
‘‘(A) is a citizen of the United States; 
‘‘(B) obtains a security clearance at the 
same level as the facility clearance; and 
‘‘(C) completes security training that 
meets the requirements of the Department of 
Defense. 
‘‘(e) REQUIREMENTS RELATING TO MANAGEMENT 
RESPONSIBILITIES
FOR
ENTITIES
WITH
FACILITY 
CLEARANCES.—The Secretary of Defense shall require an 
entity with a facility clearance to provide a certification 
of security responsibilities to the Secretary. The certifi-
cation of security responsibilities shall— 
‘‘(1) affirm the entity’s responsibility— 
‘‘(A) to identify the key management per-
sonnel of the entity involved in the performance 
of classified contracts or in the setting of poli-
cies and practices for such contracts and to des-
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HR 5658 PCS 
ignate a security manager with primary respon-
sibility for security functions; 
‘‘(B) to ensure that such key management 
personnel of the entity meet all eligibility re-
quirements for the performance of classified 
contracts; 
‘‘(C) to provide such key management per-
sonnel of the entity with all the authority and 
capability necessary to safeguard classified in-
formation and covered controlled unclassified 
information in the performance of classified 
contracts in accordance with regulations pre-
scribed by the Secretary; and 
‘‘(D) to manage all subcontractors and 
suppliers of the entity performing work on a 
classified contract to ensure that use of such 
subcontractors and suppliers does not result in 
the compromise of classified information or ad-
versely affect the performance of classified con-
tracts; 
‘‘(2) be signed by an appropriate member of the 
board of directors of the entity or a similar executive 
body determined by the Secretary to function as an 
equivalent to a board of directors; 
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HR 5658 PCS 
‘‘(3) be disseminated to all appropriate per-
sonnel of the entity; and 
‘‘(4) be updated as necessary according to pro-
cedures proscribed by the Secretary. 
‘‘(f) REPORTING REQUIREMENTS.—The Secretary of 
Defense shall require an entity with a facility clearance 
to submit to the Department of Defense a report on any 
event— 
‘‘(1) that affects the status of the facility clear-
ance; 
‘‘(2) that affects proper safeguarding of classi-
fied information or that indicates classified informa-
tion has been lost or compromised; 
‘‘(3) that affects the entity’s compliance with 
Department of Defense security agreements, con-
tract provisions regarding security, and relevant reg-
ulations of the Department of Defense pertaining to 
industrial security; or 
‘‘(4) that is related to the entity’s business and 
management practices that results in the com-
promise of classified information.’’. 
SEC. 832. FOREIGN OWNERSHIP CONTROL OR INFLUENCE. 
(a) IN GENERAL.—Subchapter III of chapter 21 of 
title 10, United States Code, as added by section 831, is 
amended by adding at the end the following new section: 
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‘‘§ 439. Foreign ownership control or influence 
‘‘(a) DETERMINATION
OF
FOREIGN
OWNERSHIP 
CONTROL OR INFLUENCE.— 
‘‘(1) IN GENERAL.—Before granting a facility 
clearance to an entity, and while such entity holds 
a facility clearance, the Secretary of Defense shall 
determine whether an entity is under foreign owner-
ship control or influence (in this subchapter referred 
to as ‘FOCI’). 
‘‘(2) DESCRIPTION OF FOCI.—For purposes of 
paragraph (1), the Secretary shall determine an en-
tity to be under FOCI if a foreign interest has the 
power, direct or indirect, whether or not exercised, 
and whether or not exercisable through the owner-
ship of the entity’s securities, by contractual ar-
rangements or other means, to direct or decide mat-
ters affecting the management or operations of that 
entity in a manner that may result in— 
‘‘(A) unauthorized access to classified in-
formation; 
‘‘(B) unauthorized access to covered con-
trolled unclassified information; 
‘‘(C) an adverse effect on the performance 
of classified contracts; or 
‘‘(D) an adverse effect on the entity’s com-
pliance with Department of Defense security 
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HR 5658 PCS 
agreements, appropriate contract provisions re-
garding security, and relevant Department reg-
ulations pertaining to industrial security. 
‘‘(b) FOCI FACTORS.— 
‘‘(1) IN GENERAL.—The following factors relat-
ing to an entity, a foreign interest, or a government 
of a foreign interest shall be considered by the Sec-
retary of Defense in determining under this section 
whether an entity is under foreign ownership control 
or influence and the protective measures that may 
be required to mitigate the FOCI of the entity: 
‘‘(A) Record of economic and government 
espionage against United States targets by the 
entity, by any foreign interest in the entity, and 
by the government of any such foreign interest. 
‘‘(B) Record of enforcement of covered 
controlled unclassified information or engage-
ment in unauthorized technology transfer. 
‘‘(C) The type and sensitivity of the infor-
mation expected to be accessed in performing a 
classified contract. 
‘‘(D) The source, nature, and extent of 
FOCI, including whether foreign interests hold 
a majority or substantial minority position in 
the entity, taking into consideration the imme-
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HR 5658 PCS 
diate, intermediate, and ultimate parent enti-
ties, sister entities, joint ventures, and hedge 
funds. 
‘‘(E) Record of compliance with pertinent 
United States laws, regulations, and contracts 
by the entity, by the foreign interest (if any) in 
the entity, and by parent entities, sister enti-
ties, joint ventures, and hedge funds. 
‘‘(F) The nature of any bilateral and mul-
tilateral security and information exchange 
agreements that may pertain to the entity, any 
foreign interest in the entity, and the govern-
ment of any such foreign interest. 
‘‘(G) Ownership, control, or influence of 
the entity, in whole or in part, by a foreign gov-
ernment. 
‘‘(2) MINORITY
POSITION.—For purposes of 
paragraph (1)(D), a minority position shall be con-
sidered substantial if— 
‘‘(A) it consists of greater than 5 percent 
of the ownership interests; 
‘‘(B) it consists of greater than 10 percent 
of the voting interest; or 
‘‘(C) the minority position controls a seat 
on the entity’s board of directors. 
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‘‘(c) MITIGATION OF FOREIGN OWNERSHIP CONTROL 
OR INFLUENCE.— 
‘‘(1) PROTECTIVE MEASURES AUTHORIZED FOR 
MITIGATION OF FOCI.—With respect to any entity 
with a facility clearance under FOCI, as determined 
under subsection (a), the Secretary of Defense may 
impose any security method, safeguard, or restric-
tion the Secretary believes necessary to ensure that 
the entity complies with the general requirements for 
facility clearances listed in subsection (b) of section 
438 of this title. 
‘‘(2) GOVERNMENT SECURITY COMMITTEE RE-
QUIREMENT FOR MITIGATION OF FOCI.— 
‘‘(A) IN GENERAL.—As part of the mitiga-
tion of foreign ownership control or influence of 
an entity determined to be under FOCI, the 
Secretary of Defense shall require the entity to 
establish a permanent committee of the entity’s 
board of directors, or equivalent executive body, 
to be known as the entity’s ‘Government Secu-
rity Committee’, for purposes of carrying out 
the requirements of this paragraph. 
‘‘(B) RESPONSIBILITIES OF GSC.—The re-
sponsibilities of the Government Security Com-
mittee of an entity are to ensure that the entity 
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employs and maintains policies and procedures 
that ensure that the entity complies with the 
general requirements for facility clearances list-
ed in subsection (b) of section 438 of this title. 
‘‘(C) ROLE
OF
SECURITY
MANAGER
IN 
GSC.—The employee of the entity designated 
pursuant to section 438(d)(1) as the security 
manager shall be the principal advisor to the 
Government Security Committee and attend 
committee meetings. The chairman of the Gov-
ernment Security Committee must concur with 
the appointment and replacement of persons 
filling the position of security manager selected 
by management of the entity. The functions of 
the security manager shall be carried out under 
the authority of the Government Security Com-
mittee. 
‘‘(3) RELATIONSHIP
TO
FACILITY
CLEAR-
ANCE.—In the case of an entity with a facility clear-
ance under FOCI, as determined under subsection 
(a), the following provisions apply with respect to 
the status of the facility clearance of the entity: 
‘‘(A) CONTINUATION
IN
EFFECT
WHILE 
NEGOTIATING MITIGATION MEASURE.—The fa-
cility clearance of the entity shall continue in 
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effect if the entity is negotiating with the Sec-
retary a mitigation measure and the Secretary 
determines that there is no indication that clas-
sified information or covered controlled unclas-
sified information is at risk of compromise. 
‘‘(B) INVALIDATION
IF
NO
MITIGATION 
MEASURE WITHIN SIX MONTHS.—(i) Subject to 
subparagraph (C), the Secretary shall invalidate 
the facility clearance of the entity if an accept-
able mitigation measure has not been agreed to 
by the Secretary and the entity by the end of 
the six-month period beginning on the date of 
the determination by the Secretary that the en-
tity is under FOCI. 
‘‘(ii) The six-month period described in 
clause (i) may be extended for one additional 
three-month period upon request by the entity 
if the Secretary approves an extension. 
‘‘(C) REVOCATION IF POSSIBILITY OF UN-
AUTHORIZED ACCESS OR ADVERSE EFFECT.— 
The Secretary shall revoke the facility clearance 
of the entity at any time if, regardless of wheth-
er the entity is negotiating a mitigation meas-
ure with the Secretary, the Secretary deter-
mines that security measures cannot be taken 
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to remove the possibility of unauthorized access 
or an adverse effect on classified contracts. 
‘‘(d) NOTIFICATION TO DEPARTMENT OF DEFENSE 
REGARDING CHANGE IN FOCI.—The Secretary of De-
fense shall require an entity to notify the Secretary when 
material changes occur to information previously sub-
mitted to the Department of Defense pertaining to the 
FOCI factors affecting the entity as soon as such informa-
tion is known to the entity. 
‘‘(e) NOTIFICATION TO DEPARTMENT OF DEFENSE 
REGARDING MERGERS, ACQUISITIONS, OR TAKEOVERS BY 
FOREIGN PERSONS.—The Secretary of Defense shall re-
quire that when an entity with a facility clearance enters 
into negotiations for a proposed merger, acquisition, or 
takeover by a foreign person, the entity shall submit to 
the Secretary of Defense a notification of the commence-
ment of such negotiations and a plan to negate the FOCI 
resulting from the transaction.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by adding 
at the end the following new item: 
‘‘Sec. 439. Foreign ownership control or influence.’’. 
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SEC. 833. CONGRESSIONAL OVERSIGHT RELATING TO FA-
CILITY CLEARANCES AND FOREIGN OWNER-
SHIP 
CONTROL 
OR 
INFLUENCE; 
DEFINI-
TIONS. 
(a) NOTIFICATIONS AND REPORTS.—Subchapter III 
of chapter 21 of title 10, United States Code, as added 
by section 831, is further amended by adding at the end 
the following new section: 
‘‘§ 440. Notifications and reports 
‘‘(a) NOTIFICATIONS REQUIRED.—The Secretary of 
Defense shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a no-
tification within 30 days after the occurrence of any of 
the following: 
‘‘(1) The revocation or suspension by the Sec-
retary of a facility clearance of an entity previously 
determined to be under foreign ownership control or 
influence. 
‘‘(2) The receipt by the Secretary of a notifica-
tion under section 439(d) from an entity that the 
entity has entered into negotiations for a proposed 
merger, acquisition, or takeover by a foreign person. 
‘‘(b) BIANNUAL REPORT.—(1) The Secretary of De-
fense shall, not later than September 1, 2009, and bian-
nually thereafter, submit to the Committees on Armed 
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Services of the Senate and the House of Representatives 
a report containing the following: 
‘‘(A) Specific, cumulative, and, as appropriate, 
trend information on the numbers of entities— 
‘‘(i) holding facility clearances; 
‘‘(ii) that have reported a material change 
relating to FOCI factors; 
‘‘(iii) that have measures in place to miti-
gate foreign ownership control or influence; or 
‘‘(iv) that have had a facility clearance sus-
pended or revoked. 
‘‘(B) Specific, cumulative, and, as appropriate, 
trend information, on— 
‘‘(i) the entities that have filed for or 
maintain facility clearances; 
‘‘(ii) the number of such entities deter-
mined to be under foreign ownership control or 
influence; 
‘‘(iii) the countries from which such enti-
ties have originated; 
‘‘(iv) the number that went through the 
Committee on Foreign Investment in the 
United States; and 
‘‘(v) the types of security arrangements 
and conditions that the Government Security 
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Committees of entities have used to mitigate 
foreign ownership control or influence. 
‘‘(C) An analysis of trends in the Industrial Se-
curity Program, including an assessment of the 
number and types of errors found in compliance 
within the Program. 
‘‘(D) An analysis of the details of companies 
that have committed violations of the Industrial Se-
curity Program and the frequency of the violations, 
including the number of companies that have com-
mitted recurring violations. 
‘‘(E) A description of the corrective actions, if 
any, taken by the Defense Security Service to ad-
dress the violations. 
‘‘(2) The information required under paragraph 
(1)(B) shall be organized and set forth separately in the 
report by defense sector within the defense industrial base. 
‘‘(3) The report shall be submitted in an unclassified 
form, but may contain a classified annex.’’. 
(b) DEFINITIONS.—Subchapter III of chapter 21 of 
title 10, United States Code, as added by section 831, is 
further amended by adding at the end the following new 
section: 
‘‘§ 440a. Definitions 
‘‘In this subchapter: 
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‘‘(1) ENTITY.—The term ‘entity’ includes a cor-
poration, company, association, firm, partnership, 
society, or joint stock company, but does not include 
an individual. 
‘‘(2) FACILITY CLEARANCE.—The term ‘facility 
clearance’, with respect to an entity, means an ad-
ministrative determination by the Secretary of De-
fense that the entity is eligible for— 
‘‘(A) access to classified information; or 
‘‘(B) award of a classified contract. 
‘‘(3) CLASSIFIED
INFORMATION.—The term 
‘classified information’ means any information that 
has been determined pursuant to Executive Order 
12958 or any predecessor order to require protection 
against unauthorized disclosure and is so designated. 
The classifications ‘top secret’, ‘secret’, and ‘con-
fidential’ are used to designate such information. 
‘‘(4) CLASSIFIED CONTRACT.—The term ‘classi-
fied contract’ means any contract requiring access to 
classified information by a contractor or the contrac-
tor’s employees in the performance of the contract 
or in any phase of precontract activity or post-con-
tract activity. 
‘‘(5) COVERED CONTROLLED UNCLASSIFIED IN-
FORMATION.—The term ‘covered controlled unclassi-
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fied information’ means unclassified information the 
export of which— 
‘‘(A) is controlled, in the case of technical 
data that is inherently military in nature, by 
the International Traffic in Arms Regulations 
(ITAR); and 
‘‘(B) is controlled, in the case of technical 
data that has both military and commercial 
uses, by the Export Administration Regulations 
(EAR).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by adding 
at the end the following new items: 
‘‘Sec. 440. Notifications and reports. 
‘‘Sec. 440a. Definitions.’’. 
(d) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out subchapter III of chap-
ter 21 of title 10, United States Code, not later than Sep-
tember 1, 2009. 
(e) STUDY AND REPORT.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall conduct a study on investments in entities cov-
ered by subchapter III of chapter 21 of title 10, 
United States Code, as added by this title. The 
study shall examine investments in such entities 
by— 
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(A) foreign governments; 
(B) entities controlled by or acting on be-
half of a foreign government; 
(C) persons of foreign countries; and 
(D) hedge funds. 
(2) REPORT.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to Congress a report on the 
results of the study conducted under paragraph (1). 
The information in the report shall be organized and 
set forth separately by defense sector within the de-
fense industrial base. 
Subtitle E—Other Matters 
SEC. 841. CLARIFICATION OF STATUS OF GOVERNMENT 
RIGHTS IN THE DESIGNS OF DEPARTMENT 
OF DEFENSE VESSELS, BOATS, AND CRAFT, 
AND COMPONENTS THEREOF. 
(a) IN GENERAL.—Chapter 633 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 7317. Status of Government rights in the designs of 
vessels, boats, and craft, and components 
thereof 
‘‘Government rights in the design of a vessel, boat, 
or craft, or its components, including the hull, decks, and 
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superstructure, shall be determined solely by operation of 
section 2320 of this title or by the instrument under which 
the design was developed for the Government.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘7317. Status of Government rights in the designs of vessels, boats, and craft, 
and components thereof.’’. 
SEC. 842. EXPANSION OF AUTHORITY TO RETAIN FEES 
FROM LICENSING OF INTELLECTUAL PROP-
ERTY. 
Section 2260 of title 10, United States Code, is 
amended— 
(1) in subsection (a), by inserting ‘‘or the Sec-
retary of Homeland Security’’ after ‘‘Secretary of 
Defense’’; and 
(2) in subsection (f)— 
(A) by striking ‘‘(f) DEFINITIONS.—In this 
section, the’’ and inserting the following: 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) The term ‘Secretary concerned’ has the 
meaning provided in section 101(a)(9) of this title 
and also includes— 
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‘‘(A) the Secretary of Defense, with respect 
to matters concerning the Defense Agencies and 
Department of Defense Field Activities; and 
‘‘(B) the Secretary of Homeland Security, 
with respect to matters concerning the Coast 
Guard when it is not operating as a service in 
the Department of the Navy.’’. 
SEC. 843. TRANSFER OF SECTIONS OF TITLE 10 RELATING 
TO MILESTONE A AND MILESTONE B FOR 
CLARITY. 
(a) REVERSAL OF ORDER OF SECTIONS.—Section 
2366b of title 10, United States Code, is transferred so 
as to appear before section 2366a of such title. 
(b) REDESIGNATION OF SECTIONS.—Section 2366b 
(relating to Milestone A) and section 2366a (relating to 
Milestone B) of such title, as so transferred, are redesig-
nated as sections 2366a and 2366b, respectively. 
(c) TECHNICAL AMENDMENT.—The table of sections 
at the beginning of chapter 139 of title 10, United States 
Code, is amended by striking the items relating sections 
2366a and 2366b and inserting the following new items: 
‘‘2366a. Major defense acquisition programs: certification required before Mile-
stone A or Key Decision Point A approval. 
‘‘2366b. Major defense acquisition programs: certification required before Mile-
stone B or Key Decision Point B approval.’’. 
(d) CONFORMING AMENDMENTS.— 
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(1) SECTION 181 OF TITLE 10, UNITED STATES 
CODE.—Section 181(b)(4) of title 10, United States 
Code, is amended by striking ‘‘section 2366a(a)(4), 
section 2366b(b),’’ and inserting ‘‘section 2366a(b), 
section 2366b(a)(4),’’. 
(2) NATIONAL DEFENSE AUTHORIZATION ACT 
FOR FISCAL YEAR 2008.—The National Defense Au-
thorization Act for Fiscal Year 2008 (Public Law 
110–181) is amended— 
(A) in section 212(1) by striking ‘‘2366a’’ 
and inserting ‘‘2366b’’; and 
(B) in section 816— 
(i) in subsection (a)(2) by striking 
‘‘2366a’’ and inserting ‘‘2366b’’; 
(ii) in subsection (a)(3) by striking 
‘‘2366b of title 10, United States Code, as 
added by section 943 of this Act’’ and in-
serting ‘‘2366a of title 10, United States 
Code’’; and 
(iii) in subsection (c)(2) by striking 
‘‘2366a’’ each place such term appears (in-
cluding in the paragraph heading) and in-
serting ‘‘2366b’’. 
(3) JOHN
WARNER
NATIONAL
DEFENSE
AU-
THORIZATION
ACT
FOR
FISCAL
YEAR
2007.—The 
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John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109–364) is 
amended in section 812 (120 Stat. 2317), in each of 
subsections (c)(2)(A) and (d)(2), by striking 
‘‘2366a’’ and inserting ‘‘2366b’’. 
SEC. 844. EARNED VALUE MANAGEMENT STUDY AND RE-
PORT. 
(a) STUDY.—The Secretary of Defense shall conduct 
a study that— 
(1) assesses weaknesses in earned value man-
agement implementation, including a review of the 
methodology, accuracy of data, training, and infor-
mation technology systems used to develop earned 
value management data; 
(2) audits the accuracy of the earned value 
management data provided by vendors to the Fed-
eral Government concerning acquisition categories I 
and II programs; and 
(3) measures the success of utilizing earned 
value management to deliver program objectives. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the appropriate committees a report that— 
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(1) identifies recommendations for improving 
the implementation of earned value management, in-
cluding alternatives; and 
(2) contains the findings of the study conducted 
under subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) APPROPRIATE
COMMITTEES.—The term 
‘‘appropriate committees’’ means the Committee on 
Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives. 
(2) EARNED VALUE MANAGEMENT.—The term 
‘‘earned value management’’ has the meaning given 
that term in section 300 of part 7 of Office of Man-
agement and Budget Circular A–11. 
SEC. 845. REPORT ON MARKET RESEARCH. 
(a) REPORT REQUIRED.—Not later than October 1, 
2009, the Secretary of Defense shall submit to the Com-
mittees on Armed Services of the Senate and the House 
of Representatives a report on the market research con-
ducted by the Secretary in implementing section 2377 of 
title 10, United States Code. 
(b) SAMPLE EXAMINED.—For purposes of the report, 
the Secretary shall examine a representative sample of 
contracts and task or delivery orders, each of which— 
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(1) is for an amount in excess of $5,000,000; 
and 
(2) is for the acquisition of a mission critical or 
a complex military system in which computer soft-
ware is a component or subcomponent. 
(c) MATTERS COVERED.—The report shall contain 
the following: 
(1) A statement of the total number of con-
tracts and task or delivery orders awarded in fiscal 
year 2007 for a mission critical or complex military 
system in which software is a component or sub-
component. 
(2) A statement of the number of contracts and 
task or delivery orders in the sample examined for 
purposes of the report (as described in subsection 
(b)), and a description of those contracts and orders. 
(3) For the sampled contracts and orders, a de-
scription of how often market research was per-
formed on the sampled contracts and orders. 
(4) For the sampled contracts and orders, a de-
scription of whether a Government employee or a 
contractor employee performed the market research 
and how the market research was performed. 
(5) For the sampled contracts and orders, an 
identification of— 
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(A) instances when the market research 
identified software that was available as a com-
mercial item and that could be used to meet the 
Government’s requirements; 
(B) instances when the software was modi-
fied or proposed to be modified to meet the De-
partment’s requirements; or 
(C) instances when the Department’s re-
quirements were modified to meet the capability 
of the commercial item software. 
(6) An identification of the training tools the 
Secretary of Defense has developed to assist con-
tracting officials in performing market research. 
(7) An identification of actions the Department 
of Defense intends to take to further implement sec-
tion 2377 of title 10, United States Code, and sec-
tion 826(b) of the National Defense Authorization 
Act for Fiscal year 2007 (Public Law 110–181; 10 
U.S.C. 2377 note), including dissemination of best 
practices and corrective actions where necessary. 
SEC. 846. SYSTEM DEVELOPMENT AND DEMONSTRATION 
BENCHMARK REPORT. 
(a) SYSTEM DEVELOPMENT AND DEMONSTRATION 
BENCHMARK REPORT.— 
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(1) BENCHMARK REPORT REQUIRED.—The Sec-
retary of a military department shall submit a sys-
tem development and demonstration benchmark re-
port as an annex to the baseline description required 
in section 2435 of title 10, United States Code, for 
each major defense acquisition program identified in 
subsection (b). Such a system development and dem-
onstration benchmark report shall be based upon the 
most recent contractor proposal, the capabilities de-
velopment document, and the systems requirements 
document approved prior to Milestone B approval 
and shall include the following information: 
(A) The key performance parameters and 
technical requirements identified in the capabili-
ties development document and systems require-
ments document. 
(B) A detailed description of performance 
capabilities proposed by the contractor, matched 
to the capabilities and requirements in the ca-
pabilities development document and systems 
requirements document. 
(C) A target cost for system development 
and demonstration, excluding incentive or 
award fees and including both government and 
non-government costs. 
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(D) A detailed outline of negotiated con-
tract incentive or award fees. 
(E) A detailed outline of contract ceiling 
price, target cost, target profit, and contract 
share line. 
(F) A schedule of key events. 
(G) An identification of critical tech-
nologies and associated technology readiness 
levels estimated for each upon both the initi-
ation and the conclusion of system development 
and demonstration. 
(H) Estimated percentage completion of 
detail design at each scheduled design readiness 
review and the scheduled Milestone C approval 
date. 
(I) A discussion of development risk and 
concurrency within the program. 
(J) Any other factors that the milestone 
decision authority considers relevant. 
(2) TIMELINE FOR SUBMISSION OF BENCHMARK 
REPORT.—A system development and demonstration 
benchmark report for a major defense acquisition 
program identified in subsection (b) shall be sub-
mitted to the congressional defense committees and 
prepared under this section— 
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(A) not later than 30 days after the date 
of the enactment of this Act, if the Department 
of Defense has entered into a contract for sys-
tem development and demonstration for such a 
major defense acquisition program prior to the 
date of enactment of this Act; or 
(B) in accordance with the requirements 
for the establishment of a baseline description 
required by section 2435 of title 10, United 
States Code, in any other case. 
(3) ALTERATIONS.—No alterations or revisions 
may be made to a system development and dem-
onstration benchmark report after the first such re-
port is prepared in accordance with paragraph (2). 
(b) MAJOR DEFENSE ACQUISITION PROGRAMS IN-
CLUDED.—For the purposes of this section, the major de-
fense acquisition programs to be included in the pilot pro-
gram are the following: 
(1) BAMS, broad area maritime surveillance 
unmanned aerial vehicle. 
(2) CSAR–X, combat search and rescue heli-
copter. 
(3) JLTV, joint light tactical vehicle. 
(4) KC–45A, aerial refueling tanker. 
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(5) VH–71, presidential helicopter, increment 
II. 
(6) Warrior-Alpha, unmanned aerial vehicle. 
(c) SYSTEM DEVELOPMENT AND DEMONSTRATION 
CHANGES.—The Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics shall establish a Configu-
ration Steering Board for each major defense acquisition 
program identified in subsection (b). The Board shall 
oversee any proposed alteration to the requirements or to 
the proposed technical configuration for such a major de-
fense acquisition program during system development and 
demonstration. If such an alteration would increase the 
cost to the Government, extend the schedule by more than 
30 days, or alter the proposed performance capabilities, 
as established in the system development and demonstra-
tion baseline required by subsection (a), the Configuration 
Steering Board shall not approve the alteration until— 
(1) the chair of the Configuration Steering 
Board has submitted to the congressional defense 
committees a written description of the alteration 
and an explanation of the rationale for the alter-
ation; and 
(2) not less than 15 days have expired since the 
date of submission of such description and expla-
nation to those committees. 
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(d) ADDITIONAL REPORTING REQUIREMENTS.— 
(1) IN GENERAL.—The Secretary of a military 
department shall submit a semi-annual contract per-
formance assessment report to the milestone decision 
authority and to the congressional defense commit-
tees on each major defense acquisition program 
identified in subsection (b). The report shall be in 
unclassified form, but may have a classified annex or 
an annex that is restricted to protect source selec-
tion, business-sensitive, or proprietary information. 
(2) CONTENTS.—Each such report shall de-
scribe contract execution regarding contract cost 
performance, schedule performance, and incentive or 
award fee reviews and outlays, and an estimated 
cost at completion of the end item compared to the 
system development and demonstration benchmark 
report required in subsection (a)(1). 
(3) FIRST REPORT.—The first such report shall 
be submitted not later than 180 days after— 
(A) system design and development con-
tract award; or 
(B) after enactment of this Act in the case 
of a system design and development contract 
that was awarded before the date of the enact-
ment of this Act. 
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(4) TERMINATION
OF
REPORTING
REQUIRE-
MENT.—The reporting requirement shall terminate 
upon a full rate production decision for each major 
defense acquisition program identified in subsection 
(b). 
(e) PROHIBITION ON MILESTONE C APPROVAL.—(1) 
Except as provided in paragraph (2), the Milestone C ap-
proval shall not be granted if the milestone decision au-
thority determines, on the basis of a report submitted pur-
suant to subsection (d), or has other reason to believe, 
that— 
(A) the cost (including any increase for ex-
pected inflation or currency exchange rates) for 
system development and demonstration has in-
creased by more than 25 percent over the sys-
tem development and demonstration baseline 
established in (a)(1), or 
(B) the schedule for key events is delayed 
by more than 15 percent of the total number of 
months between the award of the system devel-
opment and demonstration contract and the 
scheduled Milestone C approval date, as pro-
vided in the system development and dem-
onstration baseline established in subsection 
(a)(1). 
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HR 5658 PCS 
(2) The Under Secretary of Defense for Acqui-
sition, Technology, and Logistics may waive the pro-
hibition in paragraph (1) upon certification to the 
congressional defense committees, along with sup-
porting rationale, that proceeding to low rate initial 
production is in the best interest of the Department 
of Defense. 
(f) DEFINITIONS.—In this section: 
(1) CONFIGURATION
STEERING
BOARD.—The 
term ‘‘Configuration Steering Board’’ means the 
committee described in the memorandum regarding 
Configuration Steering Boards from the Under Sec-
retary of Defense for Acquisition, Technology, and 
Logistics dated July 30, 2007, for the secretaries of 
the military departments, Chairman of the Joint 
Chiefs of Staff, Under Secretaries of Defense, and 
Commander, U.S. Special Operations Command. 
(2) MILESTONE B APPROVAL.—The term ‘‘Mile-
stone B approval’’ has the meaning provided in sec-
tion 2366(e)(7) of title 10, United States Code. 
(3) MILESTONE C APPROVAL.—The term ‘‘Mile-
stone C approval’’ has the meaning provided in sec-
tion 2366(e)(8) of title 10, United States Code. 
(4) MAJOR DEFENSE ACQUISITION PROGRAM.— 
The term ‘‘major defense acquisition program’’ has 
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the meaning provided in section 2430 of title 10, 
United States Code. 
SEC. 847. ADDITIONAL MATTERS REQUIRED TO BE RE-
PORTED BY CONTRACTORS PERFORMING SE-
CURITY FUNCTIONS IN AREAS OF COMBAT 
OPERATIONS. 
Section 862(a)(2)(D) of the National Defense Au-
thorization Act for Fiscal Year 2008 (Public Law 110– 
181) is amended— 
(1) by striking ‘‘or’’ at the end of clause (ii); 
and 
(2) by adding at the end the following new 
clauses: 
‘‘(iv) a weapon is discharged against 
personnel performing private security func-
tions in an area of combat operations or 
personnel performing such functions be-
lieve a weapon was so discharged; or 
‘‘(v) 
active, 
non-lethal 
counter-
measures (other than the discharge of a 
weapon) are employed by the personnel 
performing private security functions in an 
area of combat operations in response to a 
perceived immediate threat to such per-
sonnel;’’. 
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SEC. 848. REPORT RELATING TO MUNITIONS. 
Not later than March 1, 2009, the Secretary of De-
fense shall submit to the congressional defense committees 
a report detailing how 60mm and 81mm munitions used 
by the Armed Forces are procured, including, where rel-
evant, an explanation of the decision to procure such mu-
nitions from non-domestic sources and the justification for 
awarding contracts to non-domestic sources. The report 
shall also include a plan to develop a domestic producer 
as the source for 60mm and 81mm munitions used by the 
Armed Forces by 2012. 
SEC. 849. ADDITIONAL CONTRACTOR REQUIREMENTS AND 
RESPONSIBILITIES RELATING TO ALLEGED 
CRIMES BY OR AGAINST CONTRACTOR PER-
SONNEL IN IRAQ AND AFGHANISTAN. 
(a) REQUIREMENTS FOR DEFENSE CONTRACTORS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
of Defense shall develop requirements relating to 
covered offenses allegedly perpetrated by or against 
contractor personnel in the case of defense contrac-
tors performing covered contracts. 
(2) SPECIFIC
MATTERS
COVERED.—The re-
quirements developed under paragraph (1) shall in-
clude the following: 
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(A) REPORTING
REQUIREMENT.—A re-
quirement for defense contractors to report, in 
a manner prescribed by the Secretary of De-
fense, covered offenses allegedly perpetrated by 
or against contractor personnel. 
(B) ASSISTANCE.—A requirement for de-
fense contractors to provide for victim and wit-
ness safety, medical assistance, and psycho-
logical assistance in the case of a covered of-
fense. The Secretary of Defense shall prescribe 
regulations to carry out this subparagraph, and 
the regulations shall be in accordance with reg-
ulations of the Department of Defense relating 
to restricted reporting for sexual assaults. 
(C) INFORMATION.—A requirement that 
the contractor provide to all contractor per-
sonnel who will perform work on the contract, 
before beginning such work, information on the 
following: 
(i) How and where to report an al-
leged covered offense. 
(ii) Where to seek the assistance re-
quired by subparagraph (B). 
(3) IMPLEMENTATION AS CONDITION OF CUR-
RENT AND FUTURE CONTRACTS.— 
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(A) CURRENT CONTRACTS.—With respect 
to any covered contract in effect on the date of 
the enactment of this Act, the contract shall be 
modified to include the requirements under 
paragraph (1) as a condition of the contract. 
(B) FUTURE CONTRACTS.—With respect to 
any covered contract entered into by the De-
partment of Defense after the date of the en-
actment of this Act, the requirements developed 
under paragraph (1) shall be included as a con-
dition of the covered contract. 
(b) GOVERNMENT REQUIREMENTS.—Beginning not 
later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall make publicly 
available a numerical accounting of alleged covered of-
fenses reported under this section. The information shall 
be updated no less frequently than quarterly. 
(c) DEFINITIONS.—In this section: 
(1) COVERED CONTRACT.—The term ‘‘covered 
contract’’— 
(A) means a contract with the Department 
of Defense performed— 
(i) in Iraq or Afghanistan; or 
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(ii) in any area designated by the Sec-
retary as being in support of the United 
States mission in Iraq or Afghanistan; and 
(B) includes— 
(i) any subcontract at any tier under 
the contract; and 
(ii) any task order or delivery order 
issued under the contract or such a sub-
contract. 
(2) COVERED
OFFENSE.—The term ‘‘covered 
offense’’, with respect to a covered contract, means 
an offense under chapter 212 of title 18, United 
States Code— 
(A) that is a crime of violence (as defined 
in section 16 of such title 18); and 
(B) that is committed— 
(i) by or against contractor personnel; 
and 
(ii) in geographic areas where the cov-
ered contract is performed. 
(3) 
CONTRACTOR
PERSONNEL.—The 
term 
‘‘contractor personnel’’ means any person per-
forming work under a covered contract, including in-
dividuals and subcontractors at any tier. 
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SEC. 850. REQUIREMENT FOR DEPARTMENT OF DEFENSE 
TO ADOPT AN ACQUISITION STRATEGY FOR 
DEFENSE BASE ACT INSURANCE. 
(a) IN GENERAL.—The Secretary of Defense shall 
adopt an acquisition strategy for insurance required by the 
Defense Base Act (42 U.S.C. 1651 et seq.) which mini-
mizes the cost of such insurance to the Department of De-
fense. 
(b) CRITERIA.—The Secretary shall ensure that the 
acquisition strategy adopted pursuant to subsection (a) 
addresses the following criteria: 
(1) Minimize overhead costs associated with ob-
taining such insurance, such as direct or indirect 
costs for contract management and contract admin-
istration. 
(2) Minimize costs for coverage of such insur-
ance consistent with realistic assumptions regarding 
the likelihood of incurred claims by contractors of 
the Department. 
(3) Provide for a correlation of premiums paid 
in relation to claims incurred that is modeled on best 
practices in government and industry for similar 
kinds of insurance. 
(4) Provide for a low level of risk to the De-
partment. 
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(5) Provide for a competitive marketplace for 
insurance required by the Defense Base Act to the 
maximum extent practicable. 
(c) OPTIONS.—In adopting the acquisition strategy 
pursuant to subsection (a), the Secretary shall consider 
the following options: 
(1) Entering into a single Defense Base Act in-
surance contract for the Department of Defense. 
(2) Entering into a single Defense Base Act in-
surance contract for contracts involving performance 
in theaters of combat operations. 
(3) Entering into a contract vehicle, such as a 
multiple award contract, that provides for competi-
tion among contractors for categories of insurance 
coverage, such as construction, aviation, security, 
and other categories of insurance. 
(4) Using a retrospective rating approach to 
Defense Base Act insurance that adjusts rates ac-
cording to actual claims incurred on a cost reim-
bursement basis. 
(5) Adopting a self-insurance approach to De-
fense Base Act insurance for Department of Defense 
contracts. 
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SEC. 851. MOTOR CARRIER FUEL SURCHARGES. 
(a) PASS THROUGH AND DISCLOSURE.—Chapter 157 
of title 10, United States Code, is amended by adding at 
the end the following new section: 
‘‘§ 2652. Motor carrier fuel surcharges 
‘‘(a) PASS THROUGH TO COST BEARER.—In all car-
riage contracts in which a fuel-related adjustment is pro-
vided for, the Secretary of Defense shall require that a 
motor carrier, broker, or freight forwarder providing or 
arranging truck transportation or service using fuel for 
which it does not bear the cost pay to the person who 
bears the cost of such fuel the amount of all charges that 
relate to the cost of fuel that were invoiced or otherwise 
presented to the person responsible directly to the motor 
carrier, broker, or freight forwarder for payment for the 
transportation or service. 
‘‘(b) DISCLOSURE.—The Secretary shall require in a 
contract described in subsection (a) that a motor carrier, 
broker, or freight forwarder providing or arranging trans-
portation or service using fuel not paid for by it disclose 
any fuel-related adjustment by making the amount of the 
adjustment publicly available, including on the Internet. 
‘‘(c) REGULATIONS.—The Secretary shall prescribe 
regulations to ensure contracts described in subsection (a) 
include measures necessary to ensure enforcement of this 
section.’’. 
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(b) CONFORMING AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by add-
ing at the end the following: new item: 
‘‘Sec. 2652. Motor carrier fuel surcharges.’’. 
SEC. 852. REQUIREMENT FOR DEFENSE CONTRACT CLAUSE 
PROHIBITING CERTAIN USES OF FOREIGN 
SHELL COMPANIES. 
(a) CONTRACT CLAUSE REQUIREMENT.—Not later 
than 180 days after the date of the enactment of this Act, 
the Federal Acquisition Regulation shall be revised to re-
quire each contract awarded by the Department of De-
fense to contain a clause prohibiting the contractor from 
performing the contract using a subsidiary or subcon-
tractor that is a foreign shell company if the foreign shell 
company will perform the work of the contract or sub-
contract using United States citizens or permanent resi-
dents of the United States. 
(b) FOREIGN SHELL COMPANY.—In this section, the 
term ‘‘foreign shell company’’ means an entity— 
(1) that is incorporated outside the United 
States or Canada; and 
(2) that does not manage, direct, or exercise 
operational control over personnel performing work 
under a contract of the entity. 
(c) APPLICABILITY.—The contract clause required by 
this section shall apply to contracts in amounts greater 
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than the simplified acquisition threshold (as defined in 
section 2302a of title 10, United States Code) entered into 
after the 210-day period beginning on the date of the en-
actment of this Act. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Revisions in functions and activities of special operations command. 
Sec. 902. Requirement to designate officials for irregular warfare. 
Sec. 903. Plan required for personnel management of special operations forces. 
Sec. 904. Director of Operational Energy Plans and Programs. 
Sec. 905. Corrosion control and prevention executives for the military depart-
ments. 
Sec. 906. Alignment of Deputy Chief Management Officer responsibilities. 
Sec. 907. Requirement for the Secretary of Defense to prepare a strategic plan 
to enhance the role of the National Guard and Reserves. 
Sec. 908. Redesignation of the Department of the Navy as the Department of 
the Navy and Marine Corps. 
Sec. 909. Support to Committee review. 
Subtitle B—Space Activities 
Sec. 911. Extension of authority for pilot program for provision of space sur-
veillance network services to non-United States Government 
entities. 
Sec. 912. Investment and acquisition strategy for commercial satellite capabili-
ties. 
Subtitle C—Chemical Demilitarization Program 
Sec. 921. Chemical Demilitarization Citizens Advisory Commissions in Colorado 
and Kentucky. 
Sec. 922. Prohibition on transport of hydrolysate at Pueblo Chemical Depot, 
Colorado. 
Subtitle D—Intelligence-Related Matters 
Sec. 931. Technical changes following the redesignation of National Imagery 
and Mapping Agency as National Geospatial-Intelligence Agen-
cy. 
Sec. 932. Technical amendments to title 10, United States Code, arising from 
enactment of the Intelligence Reform and Terrorism Preven-
tion Act of 2004. 
Sec. 933. Technical amendments relating to the Associate Director of the CIA 
for Military Affairs. 
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Subtitle E—Other Matters 
Sec. 941. Department of Defense School of Nursing revisions. 
Sec. 942. Amendments of authority for regional centers for security studies. 
Sec. 943. Findings and Sense of Congress regarding the Western Hemisphere 
Institute for Security Cooperation. 
Sec. 944. Restriction on obligation of funds for United States Southern Com-
mand development assistance activities. 
Sec. 945. Authorization of non-conventional assisted recovery capabilities. 
Sec. 946. Report on United States Northern Command development of inter-
agency plans and command and control relationships. 
Sec. 947. Report on National Guard resource requirements. 
Subtitle A—Department of Defense 
Management 
SEC. 901. REVISIONS IN FUNCTIONS AND ACTIVITIES OF 
SPECIAL OPERATIONS COMMAND. 
Subsection (j) of section 167 of title 10, United 
States Code, is amended to read as follows: 
‘‘(j) SPECIAL OPERATIONS ACTIVITIES.—For pur-
poses of this section, special operations activities include 
each of the following insofar as it relates to special oper-
ations: 
‘‘(1) Unconventional warfare. 
‘‘(2) Irregular warfare. 
‘‘(3) Counterterrorism. 
‘‘(4) Counterinsurgency. 
‘‘(5) Counterproliferation of weapons of mass 
destruction. 
‘‘(6) Direct action. 
‘‘(7) Strategic reconnaissance. 
‘‘(8) Foreign internal defense. 
‘‘(9) Civil-military defense. 
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‘‘(10) Psychological and information operations. 
‘‘(11) Humanitarian assistance. 
‘‘(12) Theater search and rescue. 
‘‘(13) Such other activities as may be specified 
by the President or the Secretary of Defense.’’. 
SEC. 902. REQUIREMENT TO DESIGNATE OFFICIALS FOR IR-
REGULAR WARFARE. 
The Secretary of Defense shall designate— 
(1) a single executive agent for irregular war-
fare within the Department of Defense; and 
(2) an Assistant Secretary of Defense to be re-
sponsible for overall management and coordination 
of irregular warfare. 
SEC. 903. PLAN REQUIRED FOR PERSONNEL MANAGEMENT 
OF SPECIAL OPERATIONS FORCES. 
(a) REQUIREMENT FOR PLAN.—Not later than 30 
days after the date of the enactment of this Act, the com-
mander of the special operations command shall submit 
to the congressional defense committees a plan relating 
to personnel management of special operations forces. 
(b) MATTERS COVERED.—The plan submitted under 
subsection (a) shall address the following: 
(1) Coordination among the military depart-
ments in order to enhance the manpower manage-
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ment and improve overall readiness of special oper-
ations forces. 
(2) Coordination by the commander of the spe-
cial operations command with the Secretaries of the 
military departments in order to better execute his 
responsibility to maintain readiness of special oper-
ations forces, including in the areas of accessions, 
assignments, compensation, promotions, professional 
development, retention, sustainment, and training. 
SEC. 904. DIRECTOR OF OPERATIONAL ENERGY PLANS AND 
PROGRAMS. 
(a) ESTABLISHMENT OF POSITION; DUTIES.—Chap-
ter 4 of title 10, United States Code, is amended by insert-
ing after section 139a the following new section: 
‘‘§ 139b. Director of Operational Energy Plans and 
Programs 
‘‘(a) APPOINTMENT.—There is a Director of Oper-
ational Energy Plans and Programs in the Department 
of Defense (in this section referred to as the ‘Director’), 
appointed by the President, by and with the advice and 
consent of the Senate. The Director shall be appointed 
without regard to political affiliation and solely on the 
basis of fitness to perform the duties of the office of Direc-
tor. 
‘‘(b) DUTIES.—The Director shall— 
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‘‘(1) provide leadership and facilitate commu-
nication regarding, and conduct oversight to manage 
and be accountable for, operational energy plans and 
programs within the Department of Defense and the 
Army, Navy, Air Force, and Marine Corps; 
‘‘(2) establish the operational energy strategy; 
‘‘(3) coordinate and oversee planning and pro-
gram activities of the Department of Defense and 
the Army, Navy, Air Force, and the Marine Corps 
related to— 
‘‘(A) implementation of the operational en-
ergy strategy; 
‘‘(B) the consideration of operational en-
ergy demands in defense planning, require-
ments, and acquisition processes; and 
‘‘(C) research and development invest-
ments related to operational energy demand 
and supply technologies; and 
‘‘(4) monitor and review all operational energy 
initiatives in the Department of Defense. 
‘‘(c) PRINCIPAL ADVISOR FOR OPERATIONAL EN-
ERGY PLANS AND PROGRAMS.—(1) The Director is the 
principal adviser to the Secretary of Defense and the Dep-
uty Secretary of Defense regarding operational energy 
plans and programs and the principal policy official within 
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the senior management of the Department of Defense re-
garding operational energy plans and programs. 
‘‘(2) The Director may communicate views on mat-
ters related to operational energy plans and programs and 
the energy strategy required by subsection (d) directly to 
the Secretary of Defense and the Deputy Secretary of De-
fense without obtaining the approval or concurrence of any 
other official within the Department of Defense. 
‘‘(d) OPERATIONAL ENERGY STRATEGY.—(1) The 
Director shall be responsible for the establishment and 
maintenance of a department-wide transformational strat-
egy for operational energy. The strategy shall establish 
near-term, mid-term, and long-term goals, performance 
metrics to measure progress in meeting the goals, and a 
plan for implementation of the strategy within the military 
departments, the Office of the Secretary of Defense, and 
Defense Agencies. 
‘‘(2) Not later than 90 days after the date on which 
the Director is first appointed, the Secretary of each of 
the military departments shall designate a senior official 
within each armed force under the jurisdiction of the Sec-
retary who will be responsible for operational energy plans 
and programs for that armed force. The officials shall be 
responsible for coordinating with the Director and imple-
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menting initiatives pursuant to the strategy with regard 
to that official’s armed force. 
‘‘(3) By authority of the Secretary of Defense, the 
Director shall prescribe policies and procedures for the im-
plementation of the strategy. The Director shall provide 
guidance to, and consult with, the Secretary of Defense, 
the Deputy Secretary of Defense, the Secretaries of the 
military departments, and the officials designated under 
paragraph (2) with respect to specific operational energy 
plans and programs to be carried out pursuant to the 
strategy. 
‘‘(4) The initial strategy shall be submitted to the 
congressional defense committees not later than 180 days 
after the date on which the Director is first appointed. 
Subsequent updates to the strategy shall be submitted to 
the congressional defense committees as soon as prac-
ticable after the modifications to the strategy are made. 
‘‘(e) BUDGETARY AND FINANCIAL MATTERS.—(1) 
The Director shall review and make recommendations to 
the Secretary of Defense regarding all budgetary and fi-
nancial matters relating to the operational energy strat-
egy. 
‘‘(2) The Secretary of Defense shall require that the 
Secretary of each military department and the head of 
each Defense Agency with responsibility for executing ac-
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tivities associated with the strategy transmit their pro-
posed budget for those activities for a fiscal year to the 
Director for review before submission of the proposed 
budget to the Under Secretary of Defense (Comptroller). 
‘‘(3) The Director shall review a proposed budget 
transmitted under paragraph (2) for a fiscal year and, not 
later than January 31 of the preceding fiscal year, shall 
submit to the Secretary of Defense a report containing 
the comments of the Director with respect to the proposed 
budget, together with the certification of the Director re-
garding whether the proposed budget is adequate for im-
plementation of the strategy. 
‘‘(4) Not later than 10 days after the date on which 
the budget for a fiscal year is submitted to Congress pur-
suant to section 1105 of title 31, the Secretary of Defense 
shall submit to Congress a report on the proposed budgets 
for that fiscal year that the Director has not certified 
under paragraph (3). The report shall include the fol-
lowing: 
‘‘(A) A discussion of the actions that the Sec-
retary proposes to take, together with any rec-
ommended legislation that the Secretary considers 
appropriate, to address the inadequacy of the pro-
posed budgets. 
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‘‘(B) Any additional comments that the Sec-
retary considers appropriate regarding the inad-
equacy of the proposed budgets. 
‘‘(5) The report required by paragraph (4) shall also 
include a separate statement of estimated expenditures 
and requested appropriations for that fiscal year for the 
activities of the Director in carrying out the duties of the 
Director. 
‘‘(f) 
ACCESS
TO
INITIATIVE
RESULTS
AND 
RECORDS.—(1) The Secretary of a military department 
shall submit to the Director the results of all studies and 
initiatives conducted by the military department in con-
nection with the operational energy strategy. 
‘‘(2) The Director shall have access to all records and 
data in the Department of Defense (including the records 
and data of each military department) necessary in order 
to permit the Director to carry out the duties of the Direc-
tor. 
‘‘(g) STAFF.—The Director shall have a dedicated 
professional staff of military and civilian personnel in a 
number sufficient to enable the Director to carry out the 
duties and responsibilities of the Director. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) OPERATIONAL ENERGY.—The term ‘oper-
ational energy’ means the energy required for mov-
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ing and sustaining military forces and weapons plat-
forms for military operations. The term includes en-
ergy used by tactical power systems and generators 
and weapons platforms. 
‘‘(2) OPERATIONAL
ENERGY
STRATEGY.—The 
terms ‘operational energy strategy’ and ‘strategy’ 
mean the operational energy strategy developed 
under subsection (d).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 139a the following new 
item: 
‘‘139b. Director of Operational Energy Plans and Programs.’’. 
SEC. 905. CORROSION CONTROL AND PREVENTION EXECU-
TIVES FOR THE MILITARY DEPARTMENTS. 
(a) REQUIREMENT TO DESIGNATE CORROSION CON-
TROL AND PREVENTION EXECUTIVE.—Not later than 90 
days after the date of the enactment of this Act, the As-
sistant Secretary of each military department with respon-
sibility for acquisition, technology, and logistics shall des-
ignate an employee of the military department as the cor-
rosion control and prevention executive. Such executive 
shall be the senior official in the department with responsi-
bility for coordinating department-level corrosion control 
and prevention program activities (including budget pro-
gramming) with the military department and the Office 
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of the Secretary of Defense, the program executive officers 
of the military departments, and relevant major subordi-
nate commands of the military departments. 
(b) DUTIES.—(1) The corrosion control and preven-
tion executive of a military department shall ensure that 
corrosion control and prevention is maintained in the de-
partment’s policy and guidance for management of each 
of the following: 
(A) System acquisition and production, includ-
ing design and maintenance. 
(B) Research, development, test, and evaluation 
programs and activities. 
(C) Equipment standardization programs, in-
cluding international standardization agreements. 
(D) Logistics research and development initia-
tives. 
(E) Logistics support analysis as it relates to 
integrated logistic support in the materiel acquisition 
process. 
(F) Military infrastructure design, construction, 
and maintenance. 
(2) The corrosion control and prevention executive of 
a military department shall be responsible for identifying 
the funding levels necessary to accomplish the items listed 
in subparagraphs (A) through (F) of paragraph (1). 
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SEC. 906. ALIGNMENT OF DEPUTY CHIEF MANAGEMENT OF-
FICER RESPONSIBILITIES. 
Section 192(e) of title 10, United States Code, is 
amended to read as follows: 
‘‘(e) SPECIAL
RULE
FOR
DEFENSE
BUSINESS 
TRANSFORMATION AGENCY.—Notwithstanding the results 
of any periodic review under subsection (c) with regard 
to the Defense Business Transformation Agency, the Sec-
retary of Defense shall designate that the Director of the 
Agency shall report directly to the Deputy Chief Manage-
ment Officer of the Department of Defense.’’. 
SEC. 907. REQUIREMENT FOR THE SECRETARY OF DE-
FENSE TO PREPARE A STRATEGIC PLAN TO 
ENHANCE THE ROLE OF THE NATIONAL 
GUARD AND RESERVES. 
(a) PLAN.—Not later than April 1, 2009, the Sec-
retary of Defense, in consultation with the Chairman of 
the Joint Chiefs of Staff and the Chief of the National 
Guard Bureau, shall prepare a plan for enhancing the 
roles of the National Guard and Reserve— 
(1) when federalized in the case of the National 
Guard, or activated in the case of the Reserves, in 
support of operations conducted under title 10, 
United States Code; and 
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(2) in support of operations conducted under 
title 32, United States Code, or in support of State 
missions. 
(b) MATTERS TO BE ASSESSED.—In preparing the 
plan, the Secretary shall assess— 
(1) the findings, conclusions, and recommenda-
tions of the Final Report to Congress and the Sec-
retary of Defense of the Commission on the National 
Guard and Reserves, dated January 31, 2008, and 
titled ‘‘Transforming the National Guard and Re-
serves into a 21st-Century Operational Force’’; and 
(2) the provisions of H.R. 5603 of the 110th 
Congress, as introduced on March 13, 2008 (the Na-
tional Guard Empowerment and State-National De-
fense Integration Act of 2008). 
(c) REPORT.—Not later than April 1, 2009, the Sec-
retary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Represent-
atives a report on the plan required under this section. 
The report shall include recommendations on— 
(1) any changes to the current Department of 
Defense organization, structure, command relation-
ships, budget authority, procurement authority, and 
compensation and benefits; 
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(2) any legislation that the Secretary considers 
necessary; and 
(3) any other matter the Secretary considers 
appropriate. 
SEC. 908. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.— 
(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary 
of the Navy and Marine Corps, the Assistant 
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Secretaries of the Navy and Marine Corps, and 
the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as 
follows: ‘‘The Department of the Navy and Marine 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking 
‘‘There is a Secretary of the Navy’’ and inserting 
‘‘There is a Secretary of the Navy and Marine 
Corps’’. 
(4) CHAPTER HEADINGS.— 
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(A) The heading of chapter 503 of such 
title is amended to read as follows: 
‘‘CHAPTER 503—DEPARTMENT OF THE 
NAVY AND MARINE CORPS’’. 
(B) The heading of chapter 507 of such 
title is amended to read as follows: 
‘‘CHAPTER 507—COMPOSITION OF THE DE-
PARTMENT OF THE NAVY AND MARINE 
CORPS’’. 
(5) OTHER AMENDMENTS.— 
(A) Title 10, United States Code, is 
amended by striking ‘‘Department of the Navy’’ 
and ‘‘Secretary of the Navy’’ each place they 
appear other than as specified in paragraphs 
(1), (2), (3), and (4) (including in section head-
ings, subsection captions, tables of chapters, 
and tables of sections) and inserting ‘‘Depart-
ment of the Navy and Marine Corps’’ and ‘‘Sec-
retary of the Navy and Marine Corps’’, respec-
tively, in each case with the matter inserted to 
be in the same typeface and typestyle as the 
matter stricken. 
(B)(i) 
Sections 
5013(f), 
5014(b)(2), 
5016(a), 5017(2), 5032(a), and 5042(a) of 
such title are amended by striking ‘‘Assistant 
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Secretaries of the Navy’’ and inserting ‘‘Assist-
ant Secretaries of the Navy and Marine Corps’’. 
(ii) The heading of section 5016 of such 
title, and the item relating to such section in 
the table of sections at the beginning of chapter 
503 of such title, are each amended by insert-
ing ‘‘and Marine Corps’’ after ‘‘of the Navy’’, 
with the matter inserted in each case to be in 
the same typeface and typestyle as the matter 
amended. 
(c) OTHER PROVISIONS OF LAW AND OTHER REF-
ERENCES.— 
(1) TITLE 37, UNITED STATES CODE.—Title 37, 
United States Code, is amended by striking ‘‘De-
partment of the Navy’’ and ‘‘Secretary of the Navy’’ 
each place they appear and inserting ‘‘Department 
of the Navy and Marine Corps’’ and ‘‘Secretary of 
the Navy and Marine Corps’’, respectively. 
(2) OTHER
REFERENCES.—Any reference in 
any law other than in title 10 or title 37, United 
States Code, or in any regulation, document, record, 
or other paper of the United States, to the Depart-
ment of the Navy shall be considered to be a ref-
erence to the Department of the Navy and Marine 
Corps. Any such reference to an office specified in 
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subsection (b)(2) shall be considered to be a ref-
erence to that officer as redesignated by that sec-
tion. 
(d) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first month beginning more than 60 days after 
the date of the enactment of this Act. 
SEC. 909. SUPPORT TO COMMITTEE REVIEW. 
(a) FINDINGS.—Congress finds the following: 
(1) In accordance with section 118 of title 10, 
United States Code, the Department of Defense con-
ducts a Quadrennial Defense Review as a com-
prehensive examination of ‘‘the national defense 
strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of 
the defense program and policies of the United 
States with a view toward determining and express-
ing the defense strategy of the United States and es-
tablishing a defense program for the next 20 years’’. 
(2) In submitting reports on these reviews to 
the Committees on Armed Services of the Senate 
and the House of Representatives, the Secretary is 
mandated to include the threats to the assumed or 
defined national security interests of the United 
States, the threat-based scenarios developed to con-
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duct the review, and other assumptions that impact 
the ability to counter such threats, including force 
readiness, cooperation of allies, warning times, and 
levels of engagement in operations other than war 
and smaller-scale contingencies. 
(3) There is no statutory requirement to as-
sume certain funding levels available to the Depart-
ment of Defense in the conduct of this review be-
cause Congress reserves its prerogative to provide 
the resources necessary to address threats to United 
States national security interests and uses this re-
view as a data point in determining the proper level 
of those resources. 
(4) The reports associated with the 1997, 2001, 
and 2006 reviews clearly demonstrated that the Sec-
retary made certain assumptions about anticipated 
funding. 
(5) As a result, the reported recommendations 
were unnecessarily constrained by those funding as-
sumptions. 
(6) As the Department of Defense is preparing 
to conduct another Quadrennial Defense Review 
with a report due to the Congress by 2010, the 
Committee on Armed Services of the House of Rep-
resentatives should review in a bipartisan, thorough 
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manner the military capabilities required to address 
challenges to United States national security inter-
ests over the next 20 years. 
(b) SUPPORT REQUIRED.—Within 15 days after re-
ceiving a request, the Secretary of Defense shall provide 
the Committee on Armed Services of the House of Rep-
resentatives with any information or data requested by 
that Committee so that it can review in a comprehensive, 
threat-based, and bipartisan manner the national defense 
strategy, force structure, force modernization plans, infra-
structure, budget plan, and other elements of the defense 
program and policies of the United States with a view to-
ward determining and expressing the defense strategy of 
the United States and establishing a defense program for 
the next 20 years, as well as preparing for the upcoming 
Quadrennial Roles and Missions Review and Quadrennial 
Defense Review. 
Subtitle B—Space Activities 
SEC. 911. EXTENSION OF AUTHORITY FOR PILOT PROGRAM 
FOR PROVISION OF SPACE SURVEILLANCE 
NETWORK SERVICES TO NON-UNITED STATES 
GOVERNMENT ENTITIES. 
Section 2274(i) of title 10, United States Code, is 
amended by striking ‘‘September 30, 2009’’ and inserting 
‘‘September 30, 2010’’. 
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SEC. 912. INVESTMENT AND ACQUISITION STRATEGY FOR 
COMMERCIAL SATELLITE CAPABILITIES. 
(a) REQUIREMENT.—The Secretary of Defense shall 
conduct an assessment to determine a recommended in-
vestment and acquisition strategy for commercial satellite 
capabilities. 
(b) ELEMENTS.—The assessment required under 
subsection (a) shall include the following: 
(1) Review of national and defense policy rel-
evant to the requirements for, acquisition of, and 
use of commercial satellite capabilities, and the rela-
tionship with commercial satellite providers. 
(2) Assessment of the manner in which com-
mercial satellite capabilities are utilized by the De-
partment of Defense and options for expanding such 
utilization or identifying new means to leverage com-
mercial satellite capabilities, such as hosting pay-
loads. 
(3) Review of military requirements for satellite 
communications and remote sensing by quantity, 
quality, timeline, and any other metric considered 
appropriate. 
(4) Description of current and planned commer-
cial satellite capabilities and an assessment of their 
ability to meet the requirements identified in para-
graph (3). 
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(5) Assessment of the ability of commercial sat-
ellite capabilities to meet other military requirements 
not identified in paragraph (3). 
(6) Description of the utilization of and re-
sources allocated to commercial satellite communica-
tions and remote sensing in the past (past five 
years), present (current date through Future Years 
Defense Plan (FYDP)), and future (beyond the 
FYDP) to meet the requirements identified in para-
graph (3). 
(7) Assessment of purchasing patterns that 
may lead to recommendations in which the Depart-
ment may consolidate requirements, centralize oper-
ations, aggregate purchases, or leverage purchasing 
power (including the use of multiyear contracting). 
(8) Assessment of various models for acquiring 
commercial satellite capabilities, including funding, 
management, and operations models. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than February 1, 
2009, the Secretary of Defense shall submit to the 
congressional defense committees a report setting 
forth the results of the assessment required under 
subsection (a) and provide recommendations, to in-
clude— 
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(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $4,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(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 Con-
gress. 
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A 
transfer made from one account to another under the au-
thority 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 trans-
ferred. 
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