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SEC. 874. ENHANCEMENT AND EXTENSION OF ACQUISITION
AUTHORITY FOR THE UNIFIED COMBATANT
COMMAND FOR JOINT WARFIGHTING EXPERI-
MENTATION.
(a) SUSTAINMENT OF EQUIPMENT.—
(1) IN GENERAL.—Subsection (a) of section 167a
of title 10, United States Code, is amended by strik-
ing ‘‘and acquire’’ and inserting ‘‘, acquire, and sus-
tain’’.
(2) CONFORMING AMENDMENT.—Subsection (d)
of such section is amended in the matter preceding
paragraph (1) by striking ‘‘or acquisition’’ and in-
serting ‘‘, acquisition, or sustainment’’.
(b) TWO-YEAR EXTENSION.—Subsection (f) of such
section is amended—
(1) by striking ‘‘through 2008’’ and inserting
‘‘through 2010’’; and
(2) by striking ‘‘September 30, 2008’’ and insert-
ing ‘‘September 30, 2010’’.
SEC. 875. REPEAL OF REQUIREMENT FOR IDENTIFICATION
OF ESSENTIAL MILITARY ITEMS AND MILI-
TARY SYSTEM ESSENTIAL ITEM BREAKOUT
LIST.
Section 813 of the National Defense Authorization Act
for Fiscal Year 2004 (Public Law 108–136; 117 Stat. 1543)
is repealed.
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SEC. 876. GREEN PROCUREMENT POLICY.
(a) FINDINGS.—The Senate makes the following find-
ings:
(1) On September 1, 2004, the Department of
Defense issued its green procurement policy. The pol-
icy affirms a goal of 100 percent compliance with
Federal laws and executive orders requiring purchase
of environmentally friendly, or green, products and
services. The policy also outlines a strategy for meet-
ing those requirements along with metrics for meas-
uring progress.
(2) On September 13, 2006, the Department of
Defense hosted a biobased product showcase and edu-
cational event which underscores the importance and
seriousness with which the Department is imple-
menting its green procurement program.
(3) On January 24, 2007, President Bush signed
Executive Order 13423: Strengthening Federal Envi-
ronmental, Energy, and Transportation Management,
which contains the requirement that Federal agencies
procure biobased and environmentally preferable
products and services.
(4) Although the Department of Defense con-
tinues to work to become a leading advocate of green
procurement, there is concern that there is not a pro-
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curement application or process in place at the De-
partment that supports compliance analysis.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the Department of Defense should establish a sys-
tem to document and track the use of environmentally pref-
erable products and services.
(c) REPORT.—Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense shall
submit to Congress a report on its plan to increase the usage
of environmentally friendly products that minimize poten-
tial impacts to human health and the environment at all
Department of Defense facilities inside and outside the
United States, including through the direct purchase of
products and the purchase of products by facility mainte-
nance contractors.
SEC. 877. GAO REVIEW OF USE OF AUTHORITY UNDER THE
DEFENSE PRODUCTION ACT OF 1950.
(a) THOROUGH REVIEW REQUIRED.—The Comptroller
General of the United States (in this section referred to as
the ‘‘Comptroller’’) shall conduct a thorough review of the
application of the Defense Production Act of 1950, since
the date of enactment of the Defense Production Act Reau-
thorization of 2003 (Public Law 108–195), in light of
amendments made by that Act.
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(b) CONSIDERATIONS.—In conducting the review re-
quired by this section, the Comptroller shall examine—
(1) existing authorities under the Defense Pro-
duction Act of 1950;
(2) whether and how such authorities should be
statutorily modified to ensure preparedness of the
United States and United States industry—
(A) to meet security challenges;
(B) to meet current and future defense re-
quirements;
(C) to meet current and future energy re-
quirements;
(D) to meet current and future domestic
emergency and disaster response and recovery re-
quirements;
(E) to reduce the interruption of critical in-
frastructure operations during a terrorist attack,
natural catastrophe, or other similar national
emergency; and
(F) to safeguard critical components of the
United States industrial base, including Amer-
ican aerospace and shipbuilding industries;
(3) the effectiveness of amendments made by the
Defense Production Act Reauthorization of 2003, and
the implementation of such amendments;
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(4) advantages and limitations of Defense Pro-
duction Act of 1950-related capabilities, to ensure ad-
aptation of the law to meet the security challenges of
the 21st Century;
(5) the economic impact of foreign offset con-
tracts and the efficacy of existing authority in miti-
gating such impact;
(6) the relative merit of developing rapid and
standardized systems for use of the authority provided
under the Defense Production Act of 1950, by any
Federal agency; and
(7) such other issues as the Comptroller deter-
mines relevant.
(c) REPORT TO CONGRESS.—Not later than 120 days
after the date of enactment of this Act, the Comptroller shall
submit a report to the Committee on Banking, Housing,
and Urban Affairs of the Senate on the results of the review
conducted under this section, together with any legislative
recommendations.
(d) RULES OF CONSTRUCTION ON PROTECTION OF IN-
FORMATION.—Notwithstanding any other provision of
law—
(1) the provisions of section 705(d) of the Defense
Production Act of 1950 (50 U.S.C. App. 2155(d))
shall not apply to information sought or obtained by
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the Comptroller for purposes of the review required by
this section; and
(2) provisions of law pertaining to the protection
of classified information or proprietary information
otherwise applicable to information sought or ob-
tained by the Comptroller in carrying out this section
shall not be affected by any provision of this section.
SEC. 878. TRANSPARENCY AND ACCOUNTABILITY IN MILI-
TARY AND SECURITY CONTRACTING.
(a) REPORTS
ON IRAQ
AND AFGHANISTAN CON-
TRACTS.—Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense, the Secretary
of State, the Secretary of the Interior, the Administrator
of the United States Agency for International Development,
and the Director of National Intelligence shall each submit
to Congress a report that contains the information, current
as of the date of the enactment of this Act, as follows:
(1) The number of persons performing work in
Iraq and Afghanistan under contracts (and sub-
contracts at any tier) entered into by departments
and agencies of the United States Government, in-
cluding the Department of Defense, the Department of
State, the Department of the Interior, and the United
States Agency for International Development, respec-
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tively, and a brief description of the functions per-
formed by these persons.
(2) The companies awarded such contracts and
subcontracts.
(3) The total cost of such contracts.
(4) A method for tracking the number of persons
who have been killed or wounded in performing work
under such contracts.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that the Secretary of Defense, the Secretary of State,
the Secretary of the Interior, the Administrator of the
United States Agency for International Development, and
the Director of National Intelligence should make their best
efforts to compile the most accurate accounting of the num-
ber of civilian contractors killed or wounded in Iraq and
Afghanistan since October 1, 2001.
(c) DEPARTMENT OF DEFENSE REPORT ON STRATEGY
FOR AND APPROPRIATENESS OF ACTIVITIES OF CONTRAC-
TORS UNDER DEPARTMENT OF DEFENSE CONTRACTS IN
IRAQ, AFGHANISTAN, AND THE GLOBAL WAR ON TER-
ROR.—Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit to
Congress a report setting forth the strategy of the Depart-
ment of Defense for the use of, and a description of the ac-
tivities being carried out by, contractors and subcontractors
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working in Iraq and Afghanistan in support of Department
missions in Iraq, Afghanistan, and the Global War on Ter-
ror, including its strategy for ensuring that such contracts
do not—
(1) have private companies and their employees
performing inherently governmental functions; or
(2) place contractors in supervisory roles over
United States Government personnel.
SEC. 879. MOAB SITE AND CRESCENT JUNCTION SITE,
UTAH.
(a) The Secretary of Energy shall develop a strategy
to complete the remediation at the Moab site, and the re-
moval of the tailings to the Crescent Junction site, in the
State of Utah by not later than January 1, 2019.
(b) Not later than 90 days after the date of enactment
of this Act, the Secretary shall submit to the Committee on
Energy and Natural Resources of the Senate, the Committee
on Energy and Commerce of the House of Representatives,
and the Committee on Appropriations of each of the Senate
and the House of Representatives a report describing the
strategy developed under subsection (a) and changes to the
existing cost, scope and schedule of the remediation and re-
moval activities that will be necessary to implement the
strategy.
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND
MANAGEMENT
Subtitle A—Department of Defense
Management
SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT
OF 
DEFENSE 
HEADQUARTERS 
ACTIVITIES
PERSONNEL.
(a) REPEAL.—Section 130a of title 10, United States
Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 3 of such title is amended by strik-
ing the item relating to section 130a.
SEC. 902. CHIEF MANAGEMENT OFFICERS OF THE DEPART-
MENT OF DEFENSE.
(a) SERVICE OF DEPUTY SECRETARY OF DEFENSE AS
CHIEF MANAGEMENT OFFICER OF DEPARTMENT OF DE-
FENSE.—Section 132 of title 10, United States Code, is
amended—
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following
new subsection (c):
‘‘(c)(1) The Deputy Secretary—
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‘‘(A) serves as the Chief Management Officer of
the Department of Defense; and
‘‘(B) is the principal adviser to the Secretary of
Defense on matters relating to the management of the
Department of Defense, including the development,
approval, implementation, integration, and oversight
of policies, procedures, processes, and systems for the
management of the Department of Defense that relate
to the performance of the following functions:
‘‘(i) Planning and budgeting, including
performance measurement.
‘‘(ii) Acquisition.
‘‘(iii) Logistics.
‘‘(iv) Facilities, installations, and environ-
ment.
‘‘(v) Financial management.
‘‘(vi) Human resources and personnel.
‘‘(vii) Management of information re-
sources, including information technology, net-
works, and telecommunications functions.
‘‘(2) In carrying out the duties of Chief Management
Officer of the Department of Defense, the Deputy Secretary
shall—
‘‘(A) develop and maintain a departmentwide
strategic plan for business reform identifying key ini-
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tiatives to be undertaken by the Department of De-
fense and its components, together with related re-
source needs;
‘‘(B) establish performance goals and measures
for improving and evaluating the overall economy, ef-
ficiency, and effectiveness of the business operations of
the Department of Defense;
‘‘(C) monitor the progress of the Department of
Defense and its components in meeting performance
goals and measures established pursuant to subpara-
graph (B);
‘‘(D) review and approve plans and budgets for
business reform, including any proposed changes to
policies, procedures, processes, and systems, to ensure
the compatibility of such plans and budgets with the
strategic plan for business reform established pursu-
ant to subparagraph (A);
‘‘(E) oversee the development of, and review and
approve, all budget requests for defense business sys-
tems, including the information to be submitted to
Congress under section 2222(h) of this title; and
‘‘(F) subject to the authority, direction, and con-
trol of the Secretary of Defense, perform the respon-
sibilities of the Secretary under section 2222 of this
title.
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‘‘(3) The Deputy Secretary exercises the authority of
the Secretary of Defense in the performance of the duties
of Chief Management Officer of the Department of Defense
under this subsection subject to the authority, direction, and
control of the Secretary. The exercise of that authority is
binding on the Secretaries of the military departments and
the heads of the other elements and components of the De-
partment of Defense.’’.
(b) DEPUTY CHIEF MANAGEMENT OFFICER.—
(1) IN
GENERAL.—Chapter 4 of such title is
amended by inserting after section 133b the following
new section:
‘‘§ 133c. Under Secretary of Defense for Management
(Deputy Chief Management Officer)
‘‘(a) There is an Under Secretary of Defense for Man-
agement (Deputy Chief Management Officer), appointed
from civilian life by the President, by and with the advice
and consent of the Senate, from among persons who have—
‘‘(1) extensive executive level leadership and
management experience in the public or private sec-
tor;
‘‘(2) strong leadership skills;
‘‘(3) a demonstrated ability to manage large and
complex organizations; and
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‘‘(4) a record of achieving positive operational
results.
‘‘(b) The Under Secretary of Defense for Management
(Deputy Chief Management Officer) shall assist the Deputy
Secretary of Defense in the performance of his duties as
Chief Management Officer. The Under Secretary of Defense
for Management (Deputy Chief Management Officer) shall
act for, and exercise the powers of, the Chief Management
Officer when the Deputy Secretary is absent or disabled or
there is no Deputy Secretary.
‘‘(c)(1) With respect to all matters for which he has
responsibility by law or by direction of the Secretary of De-
fense, the Under Secretary of Defense for Management (Dep-
uty Chief Management Officer) takes precedence in the De-
partment of Defense after the Secretary of Defense and the
Deputy Secretary of Defense.
‘‘(2) With respect to all matters other than matters for
which he has responsibility by law or by direction of the
Secretary of Defense, the Under Secretary takes precedence
in the Department of Defense after the Secretaries of the
military departments and the Under Secretary of Defense
for Acquisition, Technology, and Logistics.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended by
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inserting after the item relating to section 133b the
following new item:
‘‘133c. Under Secretary of Defense for Management (Deputy Chief Management
Officer).’’.
(3) EXECUTIVE SCHEDULE LEVEL III.—Section
5314 of title 5, United States Code, is amended by in-
serting after the item relating to the Under Secretary
of Defense for Intelligence the following new item:
‘‘Under Secretary of Defense for Management
(Deputy Chief Management Officer).’’.
(4) PLACEMENT IN OSD.—Section 131(b)(2) of
title 10, United States Code, is amended—
(A) by redesignating subparagraphs (B)
through (E) as subparagraphs (C) through (F),
respectively; and
(B) by inserting after subparagraph (A) the
following new subparagraph (B):
‘‘(B) The Under Secretary of Defense for
Management (Deputy Chief Management Offi-
cer).’’.
(5) CONFORMING AMENDMENT.—Section 134(c)
of such title is amended by striking ‘‘the Secretary of
Defense’’ and all that follows and inserting ‘‘the
Under Secretary of Defense for Management (Deputy
Chief Management Officer).’’.
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(c) CHIEF MANAGEMENT OFFICERS OF THE MILITARY
DEPARTMENTS.—
(1) DEPARTMENT OF THE ARMY.—Section 3015
of title 10, United States Code, is amended by adding
at the end the following new subsection:
‘‘(c)(1) The Under Secretary serves as the Chief Man-
agement Officer of the Department of the Army.
‘‘(2) The Under Secretary is the principal adviser to
the Secretary of the Army on matters relating to the man-
agement of the Department of the Army, including the de-
velopment, approval, implementation, integration, and
oversight of policies, procedures, processes, and systems for
the management of the Department of the Army that relate
to the performance of the following functions:
‘‘(A) Planning and budgeting, including per-
formance measurement.
‘‘(B) Acquisition.
‘‘(C) Logistics.
‘‘(D) Facilities, installations, and environment.
‘‘(E) Financial management.
‘‘(F) Human resources and personnel.
‘‘(G) Management of information resources, in-
cluding information technology, networks, and tele-
communications functions.
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‘‘(3) Subject to the direction and oversight of the Chief
Management Officer and Deputy Chief Management Officer
of the Department of Defense, the Under Secretary shall be
responsible for—
‘‘(A) developing and maintaining a strategic
plan for business reform that identifies key initiatives
to be undertaken by the Department of the Army for
business reform, together with related resource needs;
‘‘(B) establishing performance goals and meas-
ures for improving and evaluating the overall econ-
omy, efficiency, and effectiveness of the business oper-
ations of the Department of the Army;
‘‘(C) monitoring the progress of the Department
of the Army and its components in meeting the per-
formance goals and measures established pursuant to
subparagraph (B);
‘‘(D) reviewing and approving the plans and
budgets of the Department of the Army for business
reform, including any proposed changes to policies,
procedures, processes, and systems, to ensure the com-
patibility of such plans and budgets with the strategic
plan for business reform established pursuant to sub-
paragraph (A); and
‘‘(E) overseeing the development of, and review-
ing and approving, all budget requests for defense
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business systems by the Department of the Army, in-
cluding the information to be submitted to Congress
under section 2222(h) of this title.’’.
(2) DEPARTMENT OF THE NAVY.—Section 5015
of such title is amended by adding at the end the fol-
lowing new subsection:
‘‘(c)(1) The Under Secretary serves as the Chief Man-
agement Officer of the Department of the Navy.
‘‘(2) The Under Secretary is the principal adviser to
the Secretary of the Navy on matters relating to the man-
agement of the Department of the Navy, including the devel-
opment, approval, implementation, integration, and over-
sight of policies, procedures, processes, and systems for the
management of the Department of the Navy that relate to
the performance of the following functions:
‘‘(A) Planning and budgeting, including per-
formance measurement.
‘‘(B) Acquisition.
‘‘(C) Logistics.
‘‘(D) Facilities, installations, and environment.
‘‘(E) Financial management.
‘‘(F) Human resources and personnel.
‘‘(G) Management of information resources, in-
cluding information technology, networks, and tele-
communications functions.
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‘‘(3) Subject to the direction and oversight of the Chief
Management Officer and Deputy Chief Management Officer
of the Department of Defense, the Under Secretary shall be
responsible for—
‘‘(A) developing and maintaining a strategic
plan for business reform that identifies key initiatives
to be undertaken by the Department of the Navy for
business reform, together with related resource needs;
‘‘(B) establishing performance goals and meas-
ures for improving and evaluating the overall econ-
omy, efficiency, and effectiveness of the business oper-
ations of the Department of the Navy;
‘‘(C) monitoring the progress of the Department
of the Navy and its components in meeting the per-
formance goals and measures established pursuant to
subparagraph (B);
‘‘(D) reviewing and approving the plans and
budgets of the Department of the Navy for business re-
form, including any proposed changes to policies, pro-
cedures, processes, and systems, to ensure the compat-
ibility of such plans and budgets with the strategic
plan for business reform established pursuant to sub-
paragraph (A); and
‘‘(E) overseeing the development of, and review-
ing and approving, all budget requests for defense
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business systems by the Department of the Navy, in-
cluding the information to be submitted to Congress
under section 2222(h) of this title.’’.
(3) DEPARTMENT OF THE AIR FORCE.—Section
8015 of such title is amended by adding at the end
the following new subsection:
‘‘(c)(1) The Under Secretary serves as the Chief Man-
agement Officer of the Department of the Air Force.
‘‘(2) The Under Secretary is the principal adviser to
the Secretary of the Air Force on matters relating to the
management of the Department of the Air Force, including
the development, approval, implementation, integration,
and oversight of policies, procedures, processes, and systems
for the management of the Department of the Air Force that
relate to the performance of the following functions:
‘‘(A) Planning and budgeting, including per-
formance measurement.
‘‘(B) Acquisition.
‘‘(C) Logistics.
‘‘(D) Facilities, installations, and environment.
‘‘(E) Financial management.
‘‘(F) Human resources and personnel.
‘‘(G) Management of information resources, in-
cluding information technology, networks, and tele-
communications functions.
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‘‘(3) Subject to the direction and oversight of the Chief
Management Officer and Deputy Chief Management Officer
of the Department of Defense, the Under Secretary shall be
responsible for—
‘‘(A) developing and maintaining a strategic
plan for business reform that identifies key initiatives
to be undertaken by the Department of the Air Force
for business reform, together with related resource
needs;
‘‘(B) establishing performance goals and meas-
ures for improving and evaluating the overall econ-
omy, efficiency, and effectiveness of the business oper-
ations of the Department of the Air Force;
‘‘(C) monitoring the progress of the Department
of the Air Force and its components in meeting the
performance goals and measures established pursuant
to subparagraph (B);
‘‘(D) reviewing and approving the plans and
budgets of the Department of the Air Force for busi-
ness reform, including any proposed changes to poli-
cies, procedures, processes, and systems, to ensure the
compatibility of such plans and budgets with the stra-
tegic plan for business reform established pursuant to
subparagraph (A); and
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‘‘(E) overseeing the development of, and review-
ing and approving, all budget requests for defense
business systems by the Department of the Air Force,
including the information to be submitted to Congress
under section 2222(h) of this title.’’.
(d) MATTERS RELATING TO FINANCIAL MANAGEMENT
MODERNIZATION EXECUTIVE COMMITTEE.—Section 185(a)
of title 10, United States Code, is amended—
(1) in paragraph (2)—
(A) by redesignating subparagraphs (A)
through (E) as subparagraphs (C) though (G),
respectively; and
(B) by inserting before subparagraph (C),
as redesignated by subparagraph (A) of this
paragraph, the following new subparagraphs:
‘‘(A) The Deputy Secretary of Defense, who shall
be the chairman of the committee.
‘‘(B) The Under Secretary of Defense for Man-
agement (Deputy Chief Management Officer), who
shall act as the chairman of the committee in the ab-
sence of the Deputy Secretary of Defense.’’; and
(C) in subparagraph (C), as so redesig-
nated, by striking ‘‘, who shall be the chairman
of the committee’’; and
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(2) in paragraph (3), by inserting ‘‘the Under
Secretary of Defense for Management (Deputy Chief
Management Officer),’’ after ‘‘the Deputy Secretary of
Defense,’’.
(e) MATTERS RELATING TO DEFENSE BUSINESS SYS-
TEM MANAGEMENT COMMITTEE.—Section 186 of such title
is amended—
(1) in subsection (a)—
(A) 
by 
redesignating 
paragraphs 
(2)
through (7) as paragraphs (3) through (8), re-
spectively; and
(B) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
‘‘(2) The Under Secretary of Defense for Manage-
ment (Deputy Chief Management Officer).’’; and
(2) in subsection (b), by striking the second sen-
tence and inserting the following new sentence: ‘‘The
Under Secretary of Defense for Management (Deputy
Chief Management Officer) shall serve as the vice
chairman of the committee, and shall act as the chair-
man of the committee in the absence of the Deputy
Secretary of Defense.’’.
(f) MANAGEMENT
OF DEFENSE BUSINESS TRANS-
FORMATION AGENCY.—Section 192(e)(2) of such title is
amended by striking ‘‘that the Agency’’ and all that follows
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and inserting ‘‘that the Director of the Agency shall report
directly to the Under Secretary of Defense for Management
(Deputy Chief Management Officer).’’.
SEC. 903. MODIFICATION OF BACKGROUND REQUIREMENT
OF INDIVIDUALS APPOINTED AS UNDER SEC-
RETARY 
OF 
DEFENSE 
FOR 
ACQUISITION,
TECHNOLOGY, AND LOGISTICS.
Section 133(a) of title 10, United States Code, is
amended by striking ‘‘in the private sector’’.
SEC. 904. DEPARTMENT OF DEFENSE BOARD OF ACTU-
ARIES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—Chapter 7 of title 10, United
States Code, is amended by inserting after section 182
the following new section:
‘‘§ 183. Department of Defense Board of Actuaries
‘‘(a) IN GENERAL.—There shall be in the Department
of Defense a Department of Defense Board of Actuaries
(hereinafter in this section referred to as the ‘Board’).
‘‘(b) MEMBERS.—(1) The Board shall consist of three
members who shall be appointed by the Secretary of Defense
from among qualified professional actuaries who are mem-
bers of the Society of Actuaries.
‘‘(2) The members of the Board shall serve for a term
of 15 years, except that a member of the Board appointed