HR 2863 RFS 
factured in the United States, unless the Secretary of De-
fense certifies to the congressional defense committees 
that such an acquisition must be made in order to acquire 
capability for national security purposes that is not avail-
able from United States manufacturers. 
SEC. 8052. Notwithstanding any other provision of 
law, each contract awarded by the Department of Defense 
during the current fiscal year for construction or service 
performed in whole or in part in a State (as defined in 
section 381(d) of title 10, United States Code) which is 
not contiguous with another State and has an unemploy-
ment rate in excess of the national average rate of unem-
ployment as determined by the Secretary of Labor, shall 
include a provision requiring the contractor to employ, for 
the purpose of performing that portion of the contract in 
such State that is not contiguous with another State, indi-
viduals who are residents of such State and who, in the 
case of any craft or trade, possess or would be able to 
acquire promptly the necessary skills: Provided, That the 
Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security. 
SEC. 8053. None of the funds made available in this 
or any other Act may be used to pay the salary of any 
officer or employee of the Department of Defense who ap-
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proves or implements the transfer of administrative re-
sponsibilities or budgetary resources of any program, 
project, or activity financed by this Act to the jurisdiction 
of another Federal agency not financed by this Act with-
out the express authorization of Congress: Provided, That 
this limitation shall not apply to transfers of funds ex-
pressly provided for in Defense Appropriations Acts, or 
provisions of Acts providing supplemental appropriations 
for the Department of Defense. 
SEC. 8054. (a) LIMITATION ON TRANSFER OF DE-
FENSE ARTICLES AND SERVICES.—Notwithstanding any 
other provision of law, none of the funds available to the 
Department of Defense for the current fiscal year may be 
obligated or expended to transfer to another nation or an 
international organization any defense articles or services 
(other than intelligence services) for use in the activities 
described in subsection (b) unless the congressional de-
fense committees, the Committee on International Rela-
tions of the House of Representatives, and the Committee 
on Foreign Relations of the Senate are notified 15 days 
in advance of such transfer. 
(b) COVERED ACTIVITIES.—This section applies to—
(1) any international peacekeeping or peace-en-
forcement operation under the authority of chapter 
VI or chapter VII of the United Nations Charter
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under the authority of a United Nations Security 
Council resolution; and 
(2) any other international peacekeeping, peace-
enforcement, or humanitarian assistance operation. 
(c) REQUIRED NOTICE.—A notice under subsection 
(a) shall include the following: 
(1) A description of the equipment, supplies, or 
services to be transferred. 
(2) A statement of the value of the equipment, 
supplies, or services to be transferred. 
(3) In the case of a proposed transfer of equip-
ment or supplies—
(A) a statement of whether the inventory 
requirements of all elements of the Armed 
Forces (including the reserve components) for 
the type of equipment or supplies to be trans-
ferred have been met; and 
(B) a statement of whether the items pro-
posed to be transferred will have to be replaced 
and, if so, how the President proposes to pro-
vide funds for such replacement. 
SEC. 8055. None of the funds available to the De-
partment of Defense under this Act shall be obligated or 
expended to pay a contractor under a contract with the
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Department of Defense for costs of any amount paid by 
the contractor to an employee when—
(1) such costs are for a bonus or otherwise in 
excess of the normal salary paid by the contractor 
to the employee; and 
(2) such bonus is part of restructuring costs as-
sociated with a business combination. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8056. During the current fiscal year, no more 
than $30,000,000 of appropriations made in this Act 
under the heading ‘‘Operation and Maintenance, Defense-
Wide’’ may be transferred to appropriations available for 
the pay of military personnel, to be merged with, and to 
be available for the same time period as the appropriations 
to which transferred, to be used in support of such per-
sonnel in connection with support and services for eligible 
organizations and activities outside the Department of De-
fense pursuant to section 2012 of title 10, United States 
Code. 
SEC. 8057. During the current fiscal year, in the case 
of an appropriation account of the Department of Defense 
for which the period of availability for obligation has ex-
pired or which has closed under the provisions of section 
1552 of title 31, United States Code, and which has a 
negative unliquidated or unexpended balance, an obliga-
tion or an adjustment of an obligation may be charged
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to any current appropriation account for the same purpose 
as the expired or closed account if—
(1) the obligation would have been properly 
chargeable (except as to amount) to the expired or 
closed account before the end of the period of avail-
ability or closing of that account; 
(2) the obligation is not otherwise properly 
chargeable to any current appropriation account of 
the Department of Defense; and 
(3) in the case of an expired account, the obli-
gation is not chargeable to a current appropriation 
of the Department of Defense under the provisions 
of section 1405(b)(8) of the National Defense Au-
thorization Act for Fiscal Year 1991, Public Law 
101–510, as amended (31 U.S.C. 1551 note): Pro-
vided, That in the case of an expired account, if sub-
sequent review or investigation discloses that there 
was not in fact a negative unliquidated or unex-
pended balance in the account, any charge to a cur-
rent account under the authority of this section shall 
be reversed and recorded against the expired ac-
count: Provided further, That the total amount 
charged to a current appropriation under this sec-
tion may not exceed an amount equal to 1 percent 
of the total appropriation for that account.
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SEC. 8058. (a) Notwithstanding any other provision 
of law, the Chief of the National Guard Bureau may per-
mit the use of equipment of the National Guard Distance 
Learning Project by any person or entity on a space-avail-
able, reimbursable basis. The Chief of the National Guard 
Bureau shall establish the amount of reimbursement for 
such use on a case-by-case basis. 
(b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Dis-
tance Learning Project and be available to defray the costs 
associated with the use of equipment of the project under 
that subsection. Such funds shall be available for such 
purposes without fiscal year limitation. 
SEC. 8059. Using funds available by this Act or any 
other Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United 
States Code, may implement cost-effective agreements for 
required 
heating 
facility 
modernization 
in 
the 
Kaiserslautern Military Community in the Federal Repub-
lic of Germany: Provided, That in the City of 
Kaiserslautern such agreements will include the use of 
United States anthracite as the base load energy for mu-
nicipal district heat to the United States Defense installa-
tions: Provided further, That at Landstuhl Army Regional 
Medical Center and Ramstein Air Base, furnished heat
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may be obtained from private, regional or municipal serv-
ices, if provisions are included for the consideration of 
United States coal as an energy source. 
SEC. 8060. None of the funds appropriated in title 
IV of this Act may be used to procure end-items for deliv-
ery to military forces for operational training, operational 
use or inventory requirements: Provided, That this restric-
tion does not apply to end-items used in development, 
prototyping, and test activities preceding and leading to 
acceptance for operational use: Provided further, That this 
restriction does not apply to programs funded within the 
National Intelligence Program: Provided further, That the 
Secretary of Defense may waive this restriction on a case-
by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate that it is in the national security interest to do 
so. 
SEC. 8061. None of the funds made available in this 
Act may be used to approve or license the sale of the F/
A–22 advanced tactical fighter to any foreign government. 
SEC. 8062. (a) The Secretary of Defense may, on a 
case-by-case basis, waive with respect to a foreign country 
each limitation on the procurement of defense items from 
foreign sources provided in law if the Secretary determines 
that the application of the limitation with respect to that
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country would invalidate cooperative programs entered 
into between the Department of Defense and the foreign 
country, or would invalidate reciprocal trade agreements 
for the procurement of defense items entered into under 
section 2531 of title 10, United States Code, and the 
country does not discriminate against the same or similar 
defense items produced in the United States for that coun-
try. 
(b) Subsection (a) applies with respect to—
(1) contracts and subcontracts entered into on 
or after the date of the enactment of this Act; and 
(2) options for the procurement of items that 
are exercised after such date under contracts that 
are entered into before such date if the option prices 
are adjusted for any reason other than the applica-
tion of a waiver granted under subsection (a). 
(c) Subsection (a) does not apply to a limitation re-
garding construction of public vessels, ball and roller bear-
ings, food, and clothing or textile materials as defined by 
section 11 (chapters 50–65) of the Harmonized Tariff 
Schedule and products classified under headings 4010, 
4202, 4203, 6401 through 6406, 6505, 7019, 7218 
through 7229, 7304.41 through 7304.49, 7306.40, 7502 
through 7508, 8105, 8108, 8109, 8211, 8215, and 9404.
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SEC. 8063. (a) PROHIBITION.—None of the funds 
made available by this Act may be used to support any 
training program involving a unit of the security forces 
of a foreign country if the Secretary of Defense has re-
ceived credible information from the Department of State 
that the unit has committed a gross violation of human 
rights, unless all necessary corrective steps have been 
taken. 
(b) MONITORING.—The Secretary of Defense, in con-
sultation with the Secretary of State, shall ensure that 
prior to a decision to conduct any training program re-
ferred to in subsection (a), full consideration is given to 
all credible information available to the Department of 
State relating to human rights violations by foreign secu-
rity forces. 
(c) WAIVER.—The Secretary of Defense, after con-
sultation with the Secretary of State, may waive the prohi-
bition in subsection (a) if he determines that such waiver 
is required by extraordinary circumstances. 
(d) REPORT.—Not more than 15 days after the exer-
cise of any waiver under subsection (c), the Secretary of 
Defense shall submit a report to the congressional defense 
committees describing the extraordinary circumstances, 
the purpose and duration of the training program, the 
United States forces and the foreign security forces in-
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volved in the training program, and the information relat-
ing to human rights violations that necessitates the waiv-
er. 
SEC. 8064. None of the funds appropriated or made 
available in this Act to the Department of the Navy shall 
be used to develop, lease or procure the T-AKE class of 
ships unless the main propulsion diesel engines and 
propulsors are manufactured in the United States by a 
domestically operated entity: Provided, That the Secretary 
of Defense may waive this restriction on a case-by-case 
basis by certifying in writing to the Committees on Appro-
priations of the House of Representatives and the Senate 
that adequate domestic supplies are not available to meet 
Department of Defense requirements on a timely basis 
and that such an acquisition must be made in order to 
acquire capability for national security purposes or there 
exists a significant cost or quality difference. 
SEC. 8065. None of the funds appropriated or other-
wise made available by this or other Department of De-
fense Appropriations Acts may be obligated or expended 
for the purpose of performing repairs or maintenance to 
military family housing units of the Department of De-
fense, including areas in such military family housing 
units that may be used for the purpose of conducting offi-
cial Department of Defense business.
HR 2863 RFS 
SEC. 8066. Notwithstanding any other provision of 
law, funds appropriated in this Act under the heading 
‘‘Research, Development, Test and Evaluation, Defense-
Wide’’ for any new start advanced concept technology 
demonstration project may only be obligated 30 days after 
a report, including a description of the project, the 
planned acquisition and transition strategy and its esti-
mated annual and total cost, has been provided in writing 
to the congressional defense committees: Provided, That 
the Secretary of Defense may waive this restriction on a 
case-by-case basis by certifying to the congressional de-
fense committees that it is in the national interest to do 
so. 
SEC. 8067. The Secretary of Defense shall provide 
a classified quarterly report to the House and Senate Ap-
propriations Committees, Subcommittees on Defense on 
certain matters as directed in the classified annex accom-
panying this Act. 
SEC. 8068. During the current fiscal year, refunds 
attributable to the use of the Government travel card, re-
funds attributable to the use of the Government Purchase 
Card and refunds attributable to official Government trav-
el arranged by Government Contracted Travel Manage-
ment Centers may be credited to operation and mainte-
nance, and research, development, test and evaluation ac-
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counts of the Department of Defense which are current 
when the refunds are received. 
SEC. 8069. (a) REGISTERING FINANCIAL MANAGE-
MENT INFORMATION TECHNOLOGY SYSTEMS WITH DOD 
CHIEF INFORMATION OFFICER.—None of the funds ap-
propriated in this Act may be used for a mission critical 
or mission essential financial management information 
technology system (including a system funded by the de-
fense working capital fund) that is not registered with the 
Chief Information Officer of the Department of Defense. 
A system shall be considered to be registered with that 
officer upon the furnishing to that officer of notice of the 
system, together with such information concerning the 
system as the Secretary of Defense may prescribe. A fi-
nancial management information technology system shall 
be considered a mission critical or mission essential infor-
mation technology system as defined by the Under Sec-
retary of Defense (Comptroller). 
(b) CERTIFICATIONS AS TO COMPLIANCE WITH FI-
NANCIAL MANAGEMENT MODERNIZATION PLAN.—
(1) During the current fiscal year, a financial 
management automated information system, a mixed 
information system supporting financial and non-fi-
nancial systems, or a system improvement of more 
than $1,000,000 may not receive Milestone A ap-
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proval, Milestone B approval, or full rate production, 
or their equivalent, within the Department of De-
fense until the Under Secretary of Defense (Comp-
troller) certifies, with respect to that milestone, that 
the system is being developed and managed in ac-
cordance with the Department’s Financial Manage-
ment Modernization Plan. The Under Secretary of 
Defense (Comptroller) may require additional certifi-
cations, as appropriate, with respect to any such sys-
tem. 
(2) The Chief Information Officer shall provide 
the congressional defense committees timely notifica-
tion of certifications under paragraph (1). 
(c) CERTIFICATIONS
AS
TO
COMPLIANCE
WITH 
CLINGER-COHEN ACT.—
(1) During the current fiscal year, a major 
automated information system may not receive Mile-
stone A approval, Milestone B approval, or full rate 
production approval, or their equivalent, within the 
Department of Defense until the Chief Information 
Officer certifies, with respect to that milestone, that 
the system is being developed in accordance with the 
Clinger-Cohen Act of 1996 (40 U.S.C. 1401 et seq.). 
The Chief Information Officer may require addi-
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tional certifications, as appropriate, with respect to 
any such system. 
(2) The Chief Information Officer shall provide 
the congressional defense committees timely notifica-
tion of certifications under paragraph (1). Each 
such notification shall include, at a minimum, the 
funding baseline and milestone schedule for each 
system covered by such a certification and confirma-
tion that the following steps have been taken with 
respect to the system: 
(A) Business process reengineering. 
(B) An analysis of alternatives. 
(C) An economic analysis that includes a 
calculation of the return on investment. 
(D) Performance measures. 
(E) An information assurance strategy 
consistent with the Department’s Global Infor-
mation Grid. 
(d) DEFINITIONS.—For purposes of this section: 
(1) The term ‘‘Chief Information Officer’’ 
means the senior official of the Department of De-
fense designated by the Secretary of Defense pursu-
ant to section 3506 of title 44, United States Code. 
(2) The term ‘‘information technology system’’ 
has the meaning given the term ‘‘information tech-
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nology’’ in section 5002 of the Clinger-Cohen Act of 
1996 (40 U.S.C. 1401). 
SEC. 8070. During the current fiscal year, none of 
the funds available to the Department of Defense may be 
used to provide support to another department or agency 
of the United States if such department or agency is more 
than 90 days in arrears in making payment to the Depart-
ment of Defense for goods or services previously provided 
to such department or agency on a reimbursable basis: 
Provided, That this restriction shall not apply if the de-
partment is authorized by law to provide support to such 
department or agency on a nonreimbursable basis, and is 
providing the requested support pursuant to such author-
ity: Provided further, That the Secretary of Defense may 
waive this restriction on a case-by-case basis by certifying 
in writing to the Committees on Appropriations of the 
House of Representatives and the Senate that it is in the 
national security interest to do so. 
SEC. 8071. None of the funds provided in this Act 
may be used to transfer to any nongovernmental entity 
ammunition held by the Department of Defense that has 
a center-fire cartridge and a United States military no-
menclature designation of ‘‘armor penetrator’’, ‘‘armor 
piercing (AP)’’, ‘‘armor piercing incendiary (API)’’, or 
‘‘armor-piercing incendiary-tracer (API–T)’’, except to an
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entity performing demilitarization services for the Depart-
ment of Defense under a contract that requires the entity 
to demonstrate to the satisfaction of the Department of 
Defense that armor piercing projectiles are either: (1) ren-
dered incapable of reuse by the demilitarization process; 
or (2) used to manufacture ammunition pursuant to a con-
tract with the Department of Defense or the manufacture 
of ammunition for export pursuant to a License for Per-
manent Export of Unclassified Military Articles issued by 
the Department of State. 
SEC. 8072. Notwithstanding any other provision of 
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under 10 U.S.C. 
2667, in the case of a lease of personal property for a 
period not in excess of 1 year to any organization specified 
in 32 U.S.C. 508(d), or any other youth, social, or fra-
ternal non-profit organization as may be approved by the 
Chief of the National Guard Bureau, or his designee, on 
a case-by-case basis. 
SEC. 8073. None of the funds appropriated by this 
Act shall be used for the support of any nonappropriated 
funds activity of the Department of Defense that procures 
malt beverages and wine with nonappropriated funds for 
resale (including such alcoholic beverages sold by the
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drink) on a military installation located in the United 
States unless such malt beverages and wine are procured 
within that State, or in the case of the District of Colum-
bia, within the District of Columbia, in which the military 
installation is located: Provided, That in a case in which 
the military installation is located in more than one State, 
purchases may be made in any State in which the installa-
tion is located: Provided further, That such local procure-
ment requirements for malt beverages and wine shall 
apply to all alcoholic beverages only for military installa-
tions in States which are not contiguous with another 
State: Provided further, That alcoholic beverages other 
than wine and malt beverages, in contiguous States and 
the District of Columbia shall be procured from the most 
competitive source, price and other factors considered. 
SEC. 8074. Funds available to the Department of De-
fense for the Global Positioning System during the current 
fiscal year may be used to fund civil requirements associ-
ated with the satellite and ground control segments of 
such system’s modernization program. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8075. (a) Of the amounts appropriated in this 
Act under the heading, ‘‘Research, Development, Test and 
Evaluation, Defense-Wide’’, $90,000,000 shall remain 
available until expended: Provided, That notwithstanding 
any other provision of law, the Secretary of Defense is
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authorized to transfer such funds to other activities of the 
Federal Government. 
(b) Of the amounts appropriated in this Act under 
the heading, ‘‘Operation and Maintenance, Army’’, 
$147,900,000 shall remain available until expended: Pro-
vided, That notwithstanding any other provision of law, 
the Secretary of Defense is authorized to transfer such 
funds to other activities of the Federal Government: Pro-
vided further, That the Secretary of Defense is authorized 
to enter into and carry out contracts for the acquisition 
of real property, construction, personal services, and oper-
ations related to projects described in further detail in the 
Classified Annex accompanying the Department of De-
fense Appropriations Act, 2006, consistent with the terms 
and conditions set forth therein: Provided further, That 
contracts entered into under the authority of this section 
may provide for such indemnification as the Secretary de-
termines to be necessary: Provided further, That projects 
authorized by this section shall comply with applicable 
Federal, State, and local law to the maximum extent con-
sistent with the national security, as determined by the 
Secretary of Defense. 
SEC. 8076. Section 8106 of the Department of De-
fense Appropriations Act, 1997 (titles I through VIII of 
the matter under subsection 101(b) of Public Law 104–
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208; 110 Stat. 3009–111; 10 U.S.C. 113 note) shall con-
tinue in effect to apply to disbursements that are made 
by the Department of Defense in fiscal year 2006. 
SEC. 8077. In addition to amounts provided else-
where in this Act, $2,500,000 is hereby appropriated to 
the Department of Defense, to remain available for obliga-
tion until expended: Provided, That notwithstanding any 
other provision of law, these funds shall be available only 
for a grant to the Fisher House Foundation, Inc., only 
for the construction and furnishing of additional Fisher 
Houses to meet the needs of military family members 
when confronted with the illness or hospitalization of an 
eligible military beneficiary. 
SEC. 8078. Amounts appropriated in title II of this 
Act are hereby reduced by $264,630,000 to reflect savings 
attributable to efficiencies and management improvements 
in the funding of miscellaneous or other contracts in the 
military departments, as follows: 
(1) From ‘‘Operation and Maintenance, Army’’, 
$12,734,000. 
(2) From ‘‘Operation and Maintenance, Navy’’, 
$91,725,000. 
(3) From ‘‘Operation and Maintenance, Marine 
Corps’’, $1,870,000.