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SEC. 8033. None of the funds appropriated by this 
Act for programs of the Central Intelligence Agency shall 
remain available for obligation beyond the current fiscal 
year, except for funds appropriated for the Reserve for 
Contingencies, which shall remain available until Sep-
tember 30, 2008: Provided, That funds appropriated, 
transferred, or otherwise credited to the Central Intel-
ligence Agency Central Services Working Capital Fund 
during this or any prior or subsequent fiscal year shall 
remain available until expended: Provided further, That 
any funds appropriated or transferred to the Central Intel-
ligence Agency for advanced research and development ac-
quisition, for agent operations, and for covert action pro-
grams authorized by the President under section 503 of 
the National Security Act of 1947, as amended, shall re-
main available until September 30, 2008. 
SEC. 8034. Notwithstanding any other provision of 
law, funds made available in this Act for the Defense In-
telligence Agency may be used for the design, develop-
ment, and deployment of General Defense Intelligence 
Program intelligence communications and intelligence in-
formation systems for the Services, the Unified and Speci-
fied Commands, and the component commands. 
SEC. 8035. (a) None of the funds appropriated in this 
Act may be expended by an entity of the Department of 
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Defense unless the entity, in expending the funds, com-
plies with the Buy American Act. For purposes of this 
subsection, the term ‘‘Buy American Act’’ means title III 
of the Act entitled ‘‘An Act making appropriations for the 
Treasury and Post Office Departments for the fiscal year 
ending June 30, 1934, and for other purposes’’, approved 
March 3, 1933 (41 U.S.C. 10a et seq.). 
(b) If the Secretary of Defense determines that a per-
son has been convicted of intentionally affixing a label 
bearing a ‘‘Made in America’’ inscription to any product 
sold in or shipped to the United States that is not made 
in America, the Secretary shall determine, in accordance 
with section 2410f of title 10, United States Code, wheth-
er the person should be debarred from contracting with 
the Department of Defense. 
(c) In the case of any equipment or products pur-
chased with appropriations provided under this Act, it is 
the sense of the Congress that any entity of the Depart-
ment of Defense, in expending the appropriation, purchase 
only American-made equipment and products, provided 
that American-made equipment and products are cost- 
competitive, quality-competitive, and available in a timely 
fashion. 
SEC. 8036. None of the funds appropriated by this 
Act shall be available for a contract for studies, analysis, 
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or consulting services entered into without competition on 
the basis of an unsolicited proposal unless the head of the 
activity responsible for the procurement determines— 
(1) as a result of thorough technical evaluation, 
only one source is found fully qualified to perform 
the proposed work; 
(2) the purpose of the contract is to explore an 
unsolicited proposal which offers significant sci-
entific or technological promise, represents the prod-
uct of original thinking, and was submitted in con-
fidence by one source; or 
(3) the purpose of the contract is to take ad-
vantage of unique and significant industrial accom-
plishment by a specific concern, or to insure that a 
new product or idea of a specific concern is given fi-
nancial support: Provided, That this limitation shall 
not apply to contracts in an amount of less than 
$25,000, contracts related to improvements of equip-
ment that is in development or production, or con-
tracts as to which a civilian official of the Depart-
ment of Defense, who has been confirmed by the 
Senate, determines that the award of such contract 
is in the interest of the national defense. 
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SEC. 8037. (a) Except as provided in subsection (b) 
and (c), none of the funds made available by this Act may 
be used— 
(1) to establish a field operating agency; or 
(2) to pay the basic pay of a member of the 
Armed Forces or civilian employee of the depart-
ment who is transferred or reassigned from a head-
quarters activity if the member or employee’s place 
of duty remains at the location of that headquarters. 
(b) The Secretary of Defense or Secretary of a mili-
tary department may waive the limitations in subsection 
(a), on a case-by-case basis, if the Secretary determines, 
and certifies to the Committees on Appropriations of the 
House of Representatives and Senate that the granting 
of the waiver will reduce the personnel requirements or 
the financial requirements of the department. 
(c) This section does not apply to— 
(1) field operating agencies funded within the 
National Intelligence Program; or 
(2) an Army field operating agency established 
to eliminate, mitigate, or counter the effects of im-
provised explosive devices, and, as determined by the 
Secretary of the Army, other similar threats. 
SEC. 8038. The Secretary of Defense, acting through 
the Office of Economic Adjustment of the Department of 
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Defense, notwithstanding any other provision of law, may 
use funds made available in this Act under the heading 
‘‘Operation and Maintenance, Defense-Wide’’ to make 
grants and supplement other Federal funds in accordance 
with the guidance provided in the House report accom-
panying this Act, and the projects specified in such guid-
ance shall be considered to be authorized by law. 
(RESCISSIONS) 
SEC. 8039. Of the funds appropriated in Department 
of Defense Appropriations Acts, the following funds are 
hereby rescinded from the following accounts and pro-
grams in the specified amounts: 
‘‘Other
Procurement,
Army,
2006/2008’’, 
$100,200,000; 
‘‘Aircraft
Procurement,
Navy,
2006/2008’’, 
$76,200,000; 
‘‘Shipbuilding and Conversion, Navy, 2003/2007’’, 
$15,000,000; 
‘‘Shipbuilding and Conversion, Navy, 2005/2009’’, 
$11,245,000; 
‘‘Aircraft
Procurement,
Air
Force,
2005/2007’’, 
$108,000,000; 
‘‘Aircraft
Procurement,
Air
Force,
2006/2008’’, 
$64,000,000; 
‘‘Missile
Procurement,
Air
Force,
2005/2007’’, 
$29,600,000; 
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‘‘Missile
Procurement,
Air
Force,
2006/2008’’, 
$138,000,000; 
‘‘Research,
Development,
Test
and
Evaluation, 
Army, 2006/2007’’, $21,600,000; 
‘‘Research, Development, Test and Evaluation, Navy, 
2006/2007’’, $42,577,000; 
‘‘Research, Development, Test and Evaluation, Air 
Force, 2006/2007’’, $92,800,000; and 
‘‘Research, Development, Test and Evaluation, De-
fense-Wide, 2006/2007’’, $123,900,000. 
SEC. 8040. None of the funds available in this Act 
may be used to reduce the authorized positions for mili-
tary (civilian) technicians of the Army National Guard, 
the Air National Guard, Army Reserve and Air Force Re-
serve for the purpose of applying any administratively im-
posed civilian personnel ceiling, freeze, or reduction on 
military (civilian) technicians, unless such reductions are 
a direct result of a reduction in military force structure. 
SEC. 8041. None of the funds appropriated or other-
wise made available in this Act may be obligated or ex-
pended for assistance to the Democratic People’s Republic 
of North Korea unless specifically appropriated for that 
purpose. 
SEC. 8042. Funds appropriated in this Act for oper-
ation and maintenance of the Military Departments, Com-
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batant Commands and Defense Agencies shall be available 
for reimbursement of pay, allowances and other expenses 
which would otherwise be incurred against appropriations 
for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence or coun-
terintelligence support to Combatant Commands, Defense 
Agencies and Joint Intelligence Activities, including the 
activities and programs included within the National Intel-
ligence Program, and the Military Intelligence Program: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel 
and training procedures. 
SEC. 8043. During the current fiscal year, none of 
the funds appropriated in this Act may be used to reduce 
the civilian medical and medical support personnel as-
signed to military treatment facilities below the September 
30, 2003, level: Provided, That the Service Surgeons Gen-
eral may waive this section by certifying to the congres-
sional defense committees that the beneficiary population 
is declining in some catchment areas and civilian strength 
reductions may be consistent with responsible resource 
stewardship and capitation-based budgeting. 
SEC. 8044. (a) None of the funds available to the 
Department of Defense for any fiscal year for drug inter-
diction or counter-drug activities may be transferred to 
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any other department or agency of the United States ex-
cept as specifically provided in an appropriations law. 
(b) None of the funds available to the Central Intel-
ligence Agency for any fiscal year for drug interdiction 
and counter-drug activities may be transferred to any 
other department or agency of the United States except 
as specifically provided in an appropriations law. 
SEC. 8045. None of the funds appropriated by this 
Act may be used for the procurement of ball and roller 
bearings other than those produced by a domestic source 
and of domestic origin: Provided, That the Secretary of 
the military department responsible for such procurement 
may waive this restriction on a case-by-case basis by certi-
fying in writing to the Committees on Appropriations of 
the House of Representatives and the Senate, that ade-
quate domestic supplies are not available to meet Depart-
ment of Defense requirements on a timely basis and that 
such an acquisition must be made in order to acquire ca-
pability for national security purposes: Provided further, 
That this restriction shall not apply to the purchase of 
‘‘commercial items’’, as defined by section 4(12) of the 
Office of Federal Procurement Policy Act, except that the 
restriction shall apply to ball or roller bearings purchased 
as end items. 
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SEC. 8046. None of the funds in this Act may be 
used to purchase any supercomputer which is not manu-
factured in the United States, unless the Secretary of De-
fense certifies to the congressional defense committees 
that such an acquisition must be made in order to acquire 
capability for national security purposes that is not avail-
able from United States manufacturers. 
SEC. 8047. Notwithstanding any other provision of 
law, each contract awarded by the Department of Defense 
during the current fiscal year for construction or service 
performed in whole or in part in a State (as defined in 
section 381(d) of title 10, United States Code) which is 
not contiguous with another State and has an unemploy-
ment rate in excess of the national average rate of unem-
ployment as determined by the Secretary of Labor, shall 
include a provision requiring the contractor to employ, for 
the purpose of performing that portion of the contract in 
such State that is not contiguous with another State, indi-
viduals who are residents of such State and who, in the 
case of any craft or trade, possess or would be able to 
acquire promptly the necessary skills: Provided, That the 
Secretary of Defense may waive the requirements of this 
section, on a case-by-case basis, in the interest of national 
security. 
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SEC. 8048. None of the funds made available in this 
or any other Act may be used to pay the salary of any 
officer or employee of the Department of Defense who ap-
proves or implements the transfer of administrative re-
sponsibilities or budgetary resources of any program, 
project, or activity financed by this Act to the jurisdiction 
of another Federal agency not financed by this Act with-
out the express authorization of Congress: Provided, That 
this limitation shall not apply to transfers of funds ex-
pressly provided for in Defense Appropriations Acts, or 
provisions of Acts providing supplemental appropriations 
for the Department of Defense. 
SEC. 8049. (a) LIMITATION ON TRANSFER OF DE-
FENSE ARTICLES AND SERVICES.—Notwithstanding any 
other provision of law, none of the funds available to the 
Department of Defense for the current fiscal year may be 
obligated or expended to transfer to another nation or an 
international organization any defense articles or services 
(other than intelligence services) for use in the activities 
described in subsection (b) unless the congressional de-
fense committees, the Committee on International Rela-
tions of the House of Representatives, and the Committee 
on Foreign Relations of the Senate are notified 15 days 
in advance of such transfer. 
(b) COVERED ACTIVITIES.—This section applies to— 
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(1) any international peacekeeping or peace-en-
forcement operation under the authority of chapter 
VI or chapter VII of the United Nations Charter 
under the authority of a United Nations Security 
Council resolution; and 
(2) any other international peacekeeping, peace- 
enforcement, or humanitarian assistance operation. 
(c) REQUIRED NOTICE.—A notice under subsection 
(a) shall include the following: 
(1) A description of the equipment, supplies, or 
services to be transferred. 
(2) A statement of the value of the equipment, 
supplies, or services to be transferred. 
(3) In the case of a proposed transfer of equip-
ment or supplies— 
(A) a statement of whether the inventory 
requirements of all elements of the Armed 
Forces (including the reserve components) for 
the type of equipment or supplies to be trans-
ferred have been met; and 
(B) a statement of whether the items pro-
posed to be transferred will have to be replaced 
and, if so, how the President proposes to pro-
vide funds for such replacement. 
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SEC. 8050. None of the funds available to the De-
partment of Defense under this Act shall be obligated or 
expended to pay a contractor under a contract with the 
Department of Defense for costs of any amount paid by 
the contractor to an employee when— 
(1) such costs are for a bonus or otherwise in 
excess of the normal salary paid by the contractor 
to the employee; and 
(2) such bonus is part of restructuring costs as-
sociated with a business combination. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8051. During the current fiscal year, no more 
than $30,000,000 of appropriations made in this Act 
under the heading ‘‘Operation and Maintenance, Defense- 
Wide’’ may be transferred to appropriations available for 
the pay of military personnel, to be merged with, and to 
be available for the same time period as the appropriations 
to which transferred, to be used in support of such per-
sonnel in connection with support and services for eligible 
organizations and activities outside the Department of De-
fense pursuant to section 2012 of title 10, United States 
Code. 
SEC. 8052. During the current fiscal year, in the case 
of an appropriation account of the Department of Defense 
for which the period of availability for obligation has ex-
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pired or which has closed under the provisions of section 
1552 of title 31, United States Code, and which has a 
negative unliquidated or unexpended balance, an obliga-
tion or an adjustment of an obligation may be charged 
to any current appropriation account for the same purpose 
as the expired or closed account if— 
(1) the obligation would have been properly 
chargeable (except as to amount) to the expired or 
closed account before the end of the period of avail-
ability or closing of that account; 
(2) the obligation is not otherwise properly 
chargeable to any current appropriation account of 
the Department of Defense; and 
(3) in the case of an expired account, the obli-
gation is not chargeable to a current appropriation 
of the Department of Defense under the provisions 
of section 1405(b)(8) of the National Defense Au-
thorization Act for Fiscal Year 1991, Public Law 
101–510, as amended (31 U.S.C. 1551 note): Pro-
vided, That in the case of an expired account, if sub-
sequent review or investigation discloses that there 
was not in fact a negative unliquidated or unex-
pended balance in the account, any charge to a cur-
rent account under the authority of this section shall 
be reversed and recorded against the expired ac-
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count: Provided further, That the total amount 
charged to a current appropriation under this sec-
tion may not exceed an amount equal to 1 percent 
of the total appropriation for that account. 
SEC. 8053. (a) Notwithstanding any other provision 
of law, the Chief of the National Guard Bureau may per-
mit the use of equipment of the National Guard Distance 
Learning Project by any person or entity on a space-avail-
able, reimbursable basis. The Chief of the National Guard 
Bureau shall establish the amount of reimbursement for 
such use on a case-by-case basis. 
(b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Dis-
tance Learning Project and be available to defray the costs 
associated with the use of equipment of the project under 
that subsection. Such funds shall be available for such 
purposes without fiscal year limitation. 
SEC. 8054. Using funds available by this Act or any 
other Act, the Secretary of the Air Force, pursuant to a 
determination under section 2690 of title 10, United 
States Code, may implement cost-effective agreements for 
required
heating
facility
modernization
in
the 
Kaiserslautern Military Community in the Federal Repub-
lic
of
Germany:
Provided,
That
in
the
City
of 
Kaiserslautern such agreements will include the use of 
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United States anthracite as the base load energy for mu-
nicipal district heat to the United States Defense installa-
tions: Provided further, That at Landstuhl Army Regional 
Medical Center and Ramstein Air Base, furnished heat 
may be obtained from private, regional or municipal serv-
ices, if provisions are included for the consideration of 
United States coal as an energy source. 
SEC. 8055. None of the funds appropriated in title 
IV of this Act may be used to procure end-items for deliv-
ery to military forces for operational training, operational 
use or inventory requirements: Provided, That this restric-
tion does not apply to end-items used in development, 
prototyping, and test activities preceding and leading to 
acceptance for operational use: Provided further, That this 
restriction does not apply to programs funded within the 
National Intelligence Program: Provided further, That the 
Secretary of Defense may waive this restriction on a case- 
by-case basis by certifying in writing to the Committees 
on Appropriations of the House of Representatives and the 
Senate that it is in the national security interest to do 
so. 
SEC. 8056. Notwithstanding any other provision of 
law, funds available to the Department of Defense shall 
be made available to provide transportation of medical 
supplies and equipment, on a nonreimbursable basis, to 
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American Samoa, and funds available to the Department 
of Defense shall be made available to provide transpor-
tation of medical supplies and equipment, on a non-
reimbursable basis, to the Indian Health Service when it 
is in conjunction with a civil-military project. 
SEC. 8057. (a) The Secretary of Defense may, on a 
case-by-case basis, waive with respect to a foreign country 
each limitation on the procurement of defense items from 
foreign sources provided in law if the Secretary determines 
that the application of the limitation with respect to that 
country would invalidate cooperative programs entered 
into between the Department of Defense and the foreign 
country, or would invalidate reciprocal trade agreements 
for the procurement of defense items entered into under 
section 2531 of title 10, United States Code, and the 
country does not discriminate against the same or similar 
defense items produced in the United States for that coun-
try. 
(b) Subsection (a) applies with respect to— 
(1) contracts and subcontracts entered into on 
or after the date of the enactment of this Act; and 
(2) options for the procurement of items that 
are exercised after such date under contracts that 
are entered into before such date if the option prices 
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