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United States Code, is amended by adding at the end the
following new paragraph:
‘‘(4) Any other person specified in regulations
prescribed by the Secretary of Defense for purposes of
this paragraph who loses entitlement to health care
services under this chapter or section 1145 of this
title, subject to such terms and conditions as the Sec-
retary shall prescribe in the regulations.’’.
(b) ELECTION OF COVERAGE.—Subsection (d) of such
section is amended by adding at the end the following new
paragraph:
‘‘(4) In the case of a person described in sub-
section (b)(4), by such date as the Secretary shall pre-
scribe in the regulations required for purposes of that
subsection.’’.
(c) PERIOD OF COVERAGE.—Subsection (g)(1) of such
section is amended—
(1) in subparagraph (B), by striking ‘‘and’’ at
the end;
(2) in subparagraph (C), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) in the case of a person described in sub-
section (b)(4), the date that is 36 months after the
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date on which the person loses entitlement to health
care services as described in that subsection.’’.
SEC. 707. CONTINUATION OF ELIGIBILITY FOR TRICARE
STANDARD COVERAGE FOR CERTAIN MEM-
BERS OF THE SELECTED RESERVE.
(a) IN GENERAL.—Section 706(f) of the John Warner
National Defense Authorization Act for Fiscal Year 2007
(Public Law 109–364; 120 Stat. 2282; 10 U.S.C. 1076d
note) is amended—
(1) by striking ‘‘Enrollments’’ and inserting ‘‘(1)
Except as provided in paragraph (2), enrollments’’;
and
(2) by adding at the end the following new para-
graph:
‘‘(2) The enrollment of a member in TRICARE Stand-
ard that is in effect on the day before health care under
TRICARE Standard is provided pursuant to the effective
date in subsection (g) shall not be terminated by operation
of the exclusion of eligibility under subsection (a)(2) of such
section 1076d, as so amended, for the duration of the eligi-
bility of the member under TRICARE Standard as in effect
on October 16, 2006.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2007.
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SEC. 708. AUTHORITY FOR SPECIAL REIMBURSEMENT
RATES FOR MENTAL HEALTH CARE SERVICES
UNDER THE TRICARE PROGRAM.
(a) AUTHORITY.—Section 1079(h)(5) of title 10,
United States Code, is amended in the first sentence by in-
serting ‘‘, including mental health care services,’’ after
‘‘health care services’’.
(b) REPORT ON ACCESS TO MENTAL HEALTH CARE
SERVICES.—Not later than one year after the date of the
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 adequacy of access
to mental health services under the TRICARE program, in-
cluding in the geographic areas where surveys on the con-
tinued viability of TRICARE Standard and TRICARE
Extra are conducted under section 702 of this Act.
SEC. 709. IMPLEMENTATION OF RECOMMENDATIONS OF DE-
PARTMENT OF DEFENSE MENTAL HEALTH
TASK FORCE.
(a) IN GENERAL.—As soon as practicable, but not
later than May 31, 2008, the Secretary of Defense shall im-
plement the recommendations of the Department of Defense
Task Force on Mental Health developed pursuant to section
723 of the National Defense Authorization Act for Fiscal
Year 2006 (Public Law 109–163; 119 Stat. 3348) to ensure
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a full continuum of psychological health services and care
for members of the Armed Forces and their families.
(b) IMPLEMENTATION
OF CERTAIN RECOMMENDA-
TIONS.—Not later than 180 days after the date of the enact-
ment of this Act, the Secretary shall implement the fol-
lowing recommendations of the Department of Defense Task
Force on Mental Health:
(1) The implementation of a comprehensive pub-
lic education campaign to reduce the stigma associ-
ated with mental health problems.
(2) The appointment of a psychological director
of health for each military department, each military
treatment facility, the National Guard, and the Re-
serve Component, and the establishment of a psycho-
logical health council.
(3) The establishment of a center of excellence for
the study of psychological health.
(4) The enhancement of TRICARE benefits and
care for mental health problems.
(5) The implementation of an annual psycho-
logical health assessment addressing cognition, psy-
chological functioning, and overall psychological read-
iness for each member of the Armed Forces, including
members of the National Guard and Reserve Compo-
nent.
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(6) The development of a model for allocating re-
sources to military mental health facilities, and serv-
ices embedded in line units, based on an assessment
of the needs of and risks faced by the populations
served by such facilities and services.
(7) The issuance of a policy directive to ensure
that each military department carefully assesses the
history of occupational exposure to conditions poten-
tially resulting in post-traumatic stress disorder,
traumatic brain injury, or related diagnoses in mem-
bers of the Armed Forces facing administrative or
medical discharge.
(8) The maintenance of adequate family support
programs for families of deployed members of the
Armed Forces.
(c) RECOMMENDATIONS REQUIRING LEGISLATIVE AC-
TION.—Not later than 60 days after the date of the enact-
ment of this Act, the Secretary shall submit to the congres-
sional defense committees a description of any legislative
action required to implement the recommendations of the
Department of Defense Mental Health Task Force.
(d) RECOMMENDATIONS TO BE NOT IMPLEMENTED.—
Not later than 180 days after the date of the enactment of
this Act, the Secretary shall submit to the congressional de-
fense committees a description of any recommendations of
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the Department of Defense Mental Health Task Force the
Secretary of Defense has determined not to implement.
(e) PROGRESS REPORTS REQUIRED.—
(1) IN GENERAL.—Not later than 180 days after
the date of the enactment of this Act, and every six
months thereafter until the date described in para-
graph (2), the Secretary shall submit to the congres-
sional defense committees a report on the status of the
implementation of the recommendations of the De-
partment of Defense Mental Health Task Force.
(2) DATE DESCRIBED.—The date described in
this paragraph is the date on which all recommenda-
tions of the Department of Defense Mental Health
Task Force have been implemented other than the rec-
ommendations the Secretary has determined pursuant
to subsection (d) not to implement.
SEC. 710. CENTER OF EXCELLENCE IN PREVENTION, DIAG-
NOSIS, MITIGATION, TREATMENT, AND REHA-
BILITATION OF MILITARY EYE INJURIES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—Chapter 55 of title 10, United
States Code, is amended by inserting after section
1105 the following new section:
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‘‘§ 1105a. Center of Excellence in Prevention, Diag-
nosis, Mitigation, Treatment, and Reha-
bilitation of Military Eye Injuries
‘‘(a) IN GENERAL.—The Secretary of Defense shall es-
tablish within the Department of Defense a center of excel-
lence in the prevention, diagnosis, mitigation, treatment,
and rehabilitation of military eye injuries to carry out the
responsibilities specified in subsection (c). The center shall
be known as a ‘Center of Excellence in Prevention, Diag-
nosis, Mitigation, Treatment, and Rehabilitation of Mili-
tary Eye Injuries’.
‘‘(b) PARTNERSHIPS.—The Secretary shall ensure that
the Center collaborates to the maximum extent practicable
with the Department of Veterans Affairs, institutions of
higher education, and other appropriate public and private
entities (including international entities) to carry out the
responsibilities specified in subsection (c).
‘‘(c) RESPONSIBILITIES.—(1) The Center shall—
‘‘(A) develop, implement, and oversee a registry
of information for the tracking of the diagnosis, sur-
gical intervention or other operative procedure, other
treatment, and follow up for each case of eye injury
incurred by a member of the armed forces in combat
that requires surgery or other operative intervention;
and
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‘‘(B) ensure the electronic exchange with Sec-
retary of Veterans Affairs of information obtained
through tracking under subparagraph (A).
‘‘(2) The registry under this subsection shall be known
as the ‘Military Eye Injury Registry’.
‘‘(3) The Center shall develop the Registry in consulta-
tion with the ophthalmological specialist personnel and op-
tometric specialist personnel of the Department of Defense.
The mechanisms and procedures of the Registry shall reflect
applicable expert research on military and other eye inju-
ries.
‘‘(4) The mechanisms of the Registry for tracking
under paragraph (1)(A) shall ensure that each military
medical treatment facility or other medical facility shall
submit to the Center for inclusion in the Registry informa-
tion on the diagnosis, surgical intervention or other opera-
tive procedure, other treatment, and follow up for each case
of eye injury described in that paragraph as follows (to the
extent applicable):
‘‘(A) Not later than 72 hours after surgery or
other operative intervention.
‘‘(B) Any clinical or other operative intervention
done within 30 days, 60 days, or 120 days after sur-
gery or other operative intervention as a result of a
follow-up examination.
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‘‘(C) Not later than 180 days after surgery or
other operative intervention.
‘‘(5)(A) The Center shall provide notice to the Blind
Service or Low Vision Optometry Service, as applicable, of
the Department of Veterans Affairs on each member of the
armed forces described in subparagraph (B) for purposes
of ensuring the coordination of the provision of visual reha-
bilitation benefits and services by the Department of Vet-
erans Affairs after the separation or release of such member
from the armed forces.
‘‘(B) A member of the armed forces described in this
subparagraph is a member of the armed forces as follows:
‘‘(i) A member with an eye injury incurred in
combat who has a visual acuity of 20⁄200 or less in ei-
ther eye.
‘‘(ii) A member with an eye injury incurred in
combat who has a loss of peripheral vision of twenty
degrees or less.
‘‘(d) UTILIZATION OF REGISTRY INFORMATION.—The
Secretary of Defense and the Secretary of Veterans Affairs
shall jointly ensure that information in the Military Eye
Injury Registry is available to appropriate ophthalmo-
logical and optometric personnel of the Department of Vet-
erans Affairs for purposes of encouraging and facilitating
the conduct of research, and the development of best prac-
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tices and clinical education, on eye injuries incurred by
members of the armed forces in combat.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 55 of such title is
amended by inserting after the item relating to sec-
tion 1105 the following new item:
‘‘1105a. Center of Excellence in Prevention, Diagnosis, Mitigation, Treatment,
and Rehabilitation of Military Eye Injuries.’’.
(b) INCLUSION
OF RECORDS
OF OIF/OEF VET-
ERANS.—The Secretary of Defense shall take appropriate
actions to include in the Military Eye Injury Registry es-
tablished under section 1105a of title 10, United States
Code (as added by subsection (a)), such records of members
of the Armed Forces who incurred an eye injury in combat
in Operation Iraqi Freedom or Operation Enduring Free-
dom before the establishment of the Registry as the Sec-
retary considers appropriate for purposes of the Registry.
(c) REPORT ON ESTABLISHMENT.—Not later than 180
days after the date of the enactment of this Act, the Sec-
retary shall submit to Congress a report on the status of
the Center of Excellence in Prevention, Diagnosis, Mitiga-
tion, Treatment, and Rehabilitation of Military Eye Inju-
ries under section 1105a of title 10, United States Code (as
so added), including the progress made in established the
Military Eye Injury Registry required under that section.
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(d) TRAUMATIC BRAIN INJURY POST TRAUMATIC VIS-
UAL SYNDROME.—In carrying out the program at Walter
Reed Army Medical Center, District of Columbia, on Trau-
matic Brain Injury Post Traumatic Visual Syndrome, the
Secretary of Defense and the Department of Veterans Af-
fairs shall jointly provide for the conduct of a cooperative
study on neuro-optometric screening and diagnosis of mem-
bers of the Armed Forces with Traumatic Brain Injury by
military medical treatment facilities of the Department of
Defense and medical centers of the Department of Veterans
Affairs selected for purposes of this subsection for purposes
of vision screening, diagnosis, rehabilitative management,
and vision research on visual dysfunction related to Trau-
matic Brain Injury.
(e) FUNDING.—Of the amounts available for Defense
Health Program, $5,000,000 may be available for the Cen-
ter of Excellence in Prevention, Diagnosis, Mitigation,
Treatment, and Rehabilitation of Military Eye Injuries
under section 1105a of title 10, United States Code (as so
added).
SEC. 711. REPORT ON ESTABLISHMENT OF A SCHOLARSHIP
PROGRAM FOR CIVILIAN MENTAL HEALTH
PROFESSIONALS.
(a) REPORT REQUIRED.—Not later than 180 days
after the date of the enactment of this Act, the Secretary
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of Defense shall, in consultation with the Assistant Sec-
retary of Defense for Health Affairs and each of the Sur-
geons General of the Armed Forces, shall submit to Congress
a report on the feasibility and advisability of establishing
a scholarship program for civilian mental health profes-
sionals.
(b) ELEMENTS.—The report shall include the fol-
lowing:
(1) An assessment of a potential scholarship pro-
gram that provides certain educational funding to
students seeking a career in mental health services in
exchange for service in the Department of Defense.
(2) An assessment of current scholarship pro-
grams which may be expanded to include mental
health professionals.
(3) Recommendations regarding the establish-
ment or expansion of scholarship programs for mental
health professionals.
(4) A plan to implement, or reasons for not im-
plementing, recommendations that will increase men-
tal health staffing across the Department of Defense.
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SEC. 712. REPORT ON MEDICAL PHYSICAL EXAMINATIONS
OF MEMBERS OF THE ARMED FORCES BE-
FORE THEIR DEPLOYMENT.
Not later than April 1, 2008, the Secretary of Defense
shall submit to the Committees on Armed Services of the
Senate and the House of Representatives a report setting
forth the following:
(1) The results of a study of the frequency of
medical physical examinations conducted by each
component of the Armed Forces (including both the
regular components and the reserve components of the
Armed Forces) for members of the Armed Forces with-
in such component before their deployment.
(2) A comparison of the policies of the military
departments concerning medical physical examina-
tions of members of the Armed Forces before their de-
ployment, including an identification of instances in
which a member (including a member of a reserve
component) may be required to undergo multiple
physical examinations, from the time of notification
of an upcoming deployment through the period of
preparation for deployment.
(3) A model of, and a business case analysis for,
each of the following:
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(A) A single predeployment physical exam-
ination for members of the Armed Forces before
their deployment.
(B) A single system for tracking electroni-
cally the results of examinations under subpara-
graph (A) that can be shared among the military
departments and thereby eliminate redundancy
of medical physical examinations for members of
the Armed Forces before their deployment.
SEC. 713. ONE-YEAR EXTENSION OF PROHIBITION ON IN-
CREASES IN CERTAIN HEALTH CARE COSTS
FOR MEMBERS OF THE UNIFORMED SERV-
ICES.
(a) CHARGES
UNDER
CONTRACTS
FOR
MEDICAL
CARE.—Section 1097(e) of title 10, United States Code, is
amended by striking ‘‘September 30, 2007’’ and inserting
‘‘September 30, 2008’’.
(b) 
CHARGES
FOR
INPATIENT
CARE.—Section
1086(b)(3) of such title is amended by striking ‘‘September
30, 2007’’ and inserting ‘‘September 30, 2008’’.
(c) PREMIUMS UNDER TRICARE COVERAGE
FOR
CERTAIN MEMBERS IN THE SELECTED RESERVE.—Section
1076d(d)(3) of such title is amended by striking ‘‘September
30, 2007’’ and inserting ‘‘September 30, 2008’’.
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(d) PREMIUMS UNDER TRICARE COVERAGE
FOR
MEMBERS OF THE READY RESERVE.—Section 1076b(e)(3)
of such title is amended by striking ‘‘September 30, 2007’’
and inserting ‘‘September 30, 2008’’.
SEC. 714. TEMPORARY PROHIBITION ON INCREASE IN CO-
PAYMENTS UNDER RETAIL PHARMACY SYS-
TEM OF PHARMACY BENEFITS PROGRAM.
During the period beginning on October 1, 2007, and
ending on September 30, 2008, the cost sharing require-
ments established under paragraph (6) of section 1074g(a)
of title 10, United States Code, for pharmaceutical agents
available through retail pharmacies covered by paragraph
(2)(E)(ii) of such section may not exceed amounts as fol-
lows:
(1) In the case of generic agents, $3.
(2) In the case of formulary agents, $9.
(3) In the case of nonformulary agents, $22.
SEC. 715. SENSE OF CONGRESS ON FEES AND ADJUST-
MENTS UNDER THE TRICARE PROGRAM.
It is the sense of Congress that—
(1) career members of the uniformed services and
their families endure unique and extraordinary de-
mands, and make extraordinary sacrifices, over the
course of 20-year to 30-year careers in protecting free-
dom for all Americans;
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(2) these demands and sacrifices are such that
few Americans are willing to accept them for a multi-
decade career;
(3) a primary benefit of enduring the extraor-
dinary sacrifices inherent in a military career is a
system of exceptional retirement benefits that a grate-
ful Nation provides for those who choose to subordi-
nate much of their personal life to the national inter-
est for so many years;
(4) proposals to compare cash fees paid by re-
tired military members and their families to fees paid
by civilians fail to recognize adequately that military
members prepay the equivalent of very large advance
premiums for health care in retirement through their
extended service and sacrifice, in addition to cash
fees, deductibles, and copayments;
(5) the Department of Defense and the Nation
have a committed obligation to provide health care
benefits to active duty, National Guard, Reserve and
retired members of the uniformed services and their
families and survivors that considerably exceeds the
obligation of corporate employers to provide health
care benefits to their employees; and
(6) the Department of Defense has options to
constrain the growth of health care spending in ways
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that do not disadvantage retired members of the uni-
formed services, and should pursue any and all such
options as a first priority.
SEC. 716. CONTINUATION OF TRANSITIONAL HEALTH BENE-
FITS FOR MEMBERS OF THE ARMED FORCES
PENDING RESOLUTION OF SERVICE-RELATED
MEDICAL CONDITIONS.
Section 1145(a) of title 10, United States Code, is
amended—
(1) in paragraph (3), by striking ‘‘Transitional
health care’’ and inserting ‘‘Except as provided in
paragraph (6), transitional health care’’; and
(2) by adding at the end the following new para-
graph:
‘‘(6)(A) A member who has a medical condition relat-
ing to service on active duty that warrants further medical
care shall be entitled to receive medical and dental care for
such medical condition as if the member were a member
of the armed forces on active duty until such medical condi-
tion is resolved.
‘‘(B) The Secretary concerned shall ensure that the De-
fense Enrollment and Eligibility Reporting System
(DEERS) is continually updated in order to reflect the con-
tinuing entitlement of members covered by subparagraph
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(A) to the medical and dental care referred to in that sub-
paragraph.’’.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Provisions Relating to
Major Defense Acquisition Pro-
grams
SEC. 801. SUBSTANTIAL SAVINGS UNDER MULTIYEAR CON-
TRACTS.
(a) DEFINITION IN REGULATIONS OF SUBSTANTIAL
SAVINGS UNDER MULTIYEAR CONTRACTS.—
(1) IN GENERAL.—Not later than 60 days after
the date of the enactment of this Act, the Secretary of
Defense shall modify the regulations prescribed pursu-
ant to subsection (b)(2)(A) of section 2306b of title 10,
United States Code, to define the term ‘‘substantial
savings’’ for purposes of subsection (a)(1) of such sec-
tion. Such regulations shall specify that—
(A) savings that exceed 10 percent of the
total anticipated costs of carrying out a program
through annual contracts shall be considered to
be substantial;
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(B) savings that exceed 5 percent of the
total anticipated costs of carrying out a program
through annual contracts, but do not exceed 10
percent of such costs, shall not be considered to
be substantial unless the Secretary determines in
writing that an exceptionally strong case has
been made with regard to the findings required
by paragraphs (2) through (6) of section
2306b(a) of such title; and
(C) savings that do not exceed 5 percent of
the total anticipated costs of carrying out a pro-
gram through annual contracts shall not be con-
sidered to be substantial.
(2) EFFECTIVE
DATE.—The modification re-
quired by paragraph (1) shall apply with regard to
any multiyear contract that is authorized after the
date that is 60 days after the date of the enactment
of this Act.
(b) REPORT ON BASIS FOR DETERMINATION.—Section
2306b(i)(3) of title 10, United States Code, is amended by
inserting before the period at the end the following: ‘‘after
the head of the agency concerned submits to the congres-
sional defense committees a report on the specific facts sup-
porting the determination of the head of that agency under
subsection (a)’’.
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(c) REPORTS ON SAVINGS ACHIEVED.—
(1) REPORTS REQUIRED.—Not later than Janu-
ary 15 of 2008, 2009, and 2010, the Secretary shall
submit to the congressional defense committees a re-
port on the savings achieved through the use of
multiyear contracts that were entered under the au-
thority of section 2306b of title 10, United States
Code, and the performance of which was completed in
the preceding fiscal year.
(2) ELEMENTS.—Each report under paragraph
(1) shall specify, for each multiyear contract covered
by such report—
(A) the savings that the Department of De-
fense estimated it would achieve through the use
of the multiyear contract at the time such con-
tract was awarded; and
(B) the best estimate of the Department on
the savings actually achieved under such con-
tract.
SEC. 802. CHANGES TO MILESTONE B CERTIFICATIONS.
Section 2366a of title 10, United States Code, is
amended—
(1) in subsection (a), by inserting ‘‘, after receiv-
ing a business case analysis,’’ after ‘‘the milestone de-
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cision authority’’ in the matter preceding paragraph
(1);
(2) by redesignating subsections (b), (c), (d), and
(e) as subsections (c), (d), (e), and (f), respectively;
(3) by inserting after subsection (a) the following
new subsection (b):
‘‘(b) CHANGES TO CERTIFICATION.—(1) The program
manager for a major defense acquisition program that has
received certification under subsection (a) shall imme-
diately notify the milestone decision authority of any
changes to the program that are—
‘‘(A) inconsistent with such certification; or
‘‘(B) deviate significantly from the material pro-
vided to the milestone decision authority in support
of such certification.
‘‘(2) Upon receipt of information under paragraph (1),
the milestone decision authority may withdraw the certifi-
cation concerned or rescind Milestone B approval (or Key
Decision Point B approval in the case of a space program)
if the milestone decision authority determines that such ac-
tion is in the best interest of the national security of the
United States.’’;
(4) in subsection (c), as redesignated by para-
graph (1)—
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(A) by inserting ‘‘(1)’’ before ‘‘The certifi-
cation’’; and
(B) by adding at the end the following new
paragraph (2):
‘‘(2) Any information provided to the milestone deci-
sion authority pursuant to subsection (b) shall be summa-
rized in the first Selected Acquisition Report submitted
under section 2432 of this title after such information is
received by the milestone decision authority.’’; and
(5) in subsection (e), as so redesignated, by strik-
ing ‘‘subsection (c)’’ and inserting ‘‘subsection (d)’’.
SEC. 803. COMPTROLLER GENERAL REPORT ON DEPART-
MENT 
OF 
DEFENSE 
ORGANIZATION 
AND
STRUCTURE FOR MAJOR DEFENSE ACQUISI-
TION PROGRAMS.
(a) REPORT REQUIRED.—Not later than one year
after the date of the enactment of this Act, the Comptroller
General of the United States shall submit to the congres-
sional defense committees a report on potential modifica-
tions of the organization and structure of the Department
of Defense for major defense acquisition programs.
(b) ELEMENTS.—The report required by subsection (a)
shall include the results of a review, conducted by the Comp-
troller General for purposes of the report, regarding the fea-
sibility and advisability of, at a minimum, the following:
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(1) Establishing system commands within each
military department, each of which commands would
be headed by a 4-star general or flag officer, to whom
the program managers and program executive officers
for major defense acquisition programs would report.
(2) Revising the acquisition process for major de-
fense acquisition programs by establishing shorter,
more frequent acquisition program milestones.
(3) Requiring certifications of program status to
the defense acquisition executive and Congress prior
to milestone approval for major defense acquisition
programs.
(4) Establishing a new office (to be known as the
‘‘Office of Independent Assessment’’) to provide inde-
pendent cost estimates and performance estimates for
major defense acquisition programs.
(5) Establishing a milestone system for major de-
fense acquisition programs utilizing the following
milestones (or such other milestones as the Comp-
troller General considers appropriate for purposes of
the review):
(A) MILESTONE 0.—The time for the devel-
opment and approval of a mission need state-
ment for a major defense acquisition program.
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(B) MILESTONE 1.—The time for the devel-
opment and approval of a capability need defi-
nition for a major defense acquisition program,
including development and approval of a certifi-
cation statement on the characteristics required
for the system under the program and a deter-
mination of the priorities among such character-
istics.
(C) MILESTONE 2.—The time for technology
development and assessment for a major defense
acquisition program, including development and
approval of a certification statement on tech-
nology maturity of elements under the program.
(D) MILESTONE 3.—The time for system de-
velopment and demonstration for a major defense
acquisition program, including development and
approval of a certification statement on design
proof of concept.
(E) MILESTONE 4.—The time for final de-
sign, production prototyping, and testing of a
major defense acquisition program, including de-
velopment and approval of a certification state-
ment on cost, performance, and schedule in ad-
vance of initiation of low-rate production of the
system under the program.
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(F) MILESTONE 5.—The time for limited
production and field testing of the system under
a major defense acquisition program.
(G) MILESTONE 6.—The time for initiation
of full-rate production of the system under a
major defense acquisition program.
(6) Requiring the Milestone Decision Authority
for a major defense acquisition program to specify, at
the time of Milestone B approval, or Key Decision
Point B approval, as applicable, the period of time
that will be required to deliver an initial operational
capability to the relevant combatant commanders.
(7) Establishing a materiel solutions process for
addressing identified gaps in critical warfighting ca-
pabilities, under which process the Under Secretary of
Defense for Acquisition, Technology, and Logistics
circulates among the military departments and ap-
propriate Defense Agencies a request for proposals for
technologies and systems to address such gaps.
(8) Modifying the role played by chiefs of staff
of the Armed Forces in the requirements, resource al-
location, and acquisition processes.
(c) CONSULTATION.—In conducting the review re-
quired under subsection (b) for the report required by sub-
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section (a), the Comptroller General shall obtain the views
of the following:
(1) Senior acquisition officials currently serving
in the Department of Defense.
(2) Individuals who formerly served as senior ac-
quisition officials in the Department of Defense.
(3) Participants in previous reviews of the orga-
nization and structure of the Department of Defense
for the acquisition of major weapon systems, includ-
ing the President’s Blue Ribbon Commission on De-
fense Management in 1986.
(4) Other experts on the acquisition of major
weapon systems.
(5) Appropriate experts in the Government Ac-
countability Office.
SEC. 804. INVESTMENT STRATEGY FOR MAJOR DEFENSE AC-
QUISITION PROGRAMS.
(a) REPORT REQUIRED.—Not later than 180 days
after the date of the enactment of this Act, the Secretary
of Defense shall submit to the congressional defense commit-
tees a report on the strategies of the Department of Defense
for the allocation of funds and other resources under major
defense acquisition programs.
(b) ELEMENTS.—The report required by subsection (a)
shall address, at a minimum, Department of Defense orga-
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nizations, procedures, and approaches for the following pur-
poses:
(1) To establish priorities among needed capa-
bilities under major defense acquisition programs,
and to assess the resources (including funds, tech-
nologies, time, and personnel) needed to achieve such
capabilities.
(2) To balance cost, schedule, and requirements
for major defense acquisition programs to ensure the
most efficient use of Department of Defense resources.
(3) To ensure that the budget, requirements, and
acquisition processes of the Department of Defense
work in a complementary manner to achieve desired
results.
(c) ROLE OF TRI-CHAIR COMMITTEE IN RESOURCE
ALLOCATION.—
(1) IN GENERAL.—The report required by sub-
section (a) shall also address the role of the committee
described in paragraph (2) in the resource allocation
process for major defense acquisition programs.
(2) COMMITTEE.—The committee described in
this paragraph is a committee (to be known as the
‘‘Tri-Chair Committee’’) composed of the following:
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(A) The Under Secretary of Defense for Ac-
quisition, Technology, and Logistics, who is one
of the chairs of the committee.
(B) The Vice Chairman of the Joint Chiefs
of Staff, who is one of the chairs of the com-
mittee.
(C) The Director of Program Analysis and
Evaluation, who is one of the chairs of the com-
mittee.
(D) Any other appropriate officials of the
Department of Defense, as jointly agreed upon
by the Under Secretary and the Vice Chairman.
(d) RECOMMENDATIONS.—The report required by sub-
section (a) shall include any recommendations, including
recommendations for legislative action, that the Secretary
considers appropriate to improve the organizations, proce-
dures, and approaches described in the report.
SEC. 805. REPORT ON IMPLEMENTATION OF RECOMMENDA-
TIONS ON TOTAL OWNERSHIP COST FOR
MAJOR WEAPON SYSTEMS.
(a) REPORT REQUIRED.—Not later than 180 days
after the date of the enactment of this Act, the Secretary
of Defense shall submit to the congressional defense commit-
tees a report on the extent of the implementation of the rec-
ommendations set forth in the February 2003 report of the
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Government Accountability Office entitled ‘‘Setting Re-
quirements Differently Could Reduce Weapon Systems’
Total Ownership Costs’’.
(b) ELEMENTS.—The report required by subsection (a)
shall include the following:
(1) For each recommendation described in sub-
section (a) that has been implemented, or that the
Secretary plans to implement—
(A) a summary of all actions that have been
taken to implement such recommendation; and
(B) a schedule, with specific milestones, for
completing the implementation of such rec-
ommendation.
(2) For each recommendation that the Secretary
has not implemented and does not plan to
implement—
(A) the reasons for the decision not to im-
plement such recommendation; and
(B) a summary of any alternative actions
the Secretary plans to take to address the pur-
poses underlying such recommendation.
(3) A summary of any additional actions the
Secretary has taken or plans to take to ensure that
total ownership cost is appropriately considered in
the requirements process for major weapon systems.
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Subtitle B—Amendments Relating
to General Contracting Authori-
ties, Procedures, and Limita-
tions
SEC. 821. ENHANCED COMPETITION REQUIREMENTS FOR
TASK AND DELIVERY ORDER CONTRACTS.
(a) LIMITATION ON SINGLE AWARD CONTRACTS.—Sec-
tion 2304a(d) of title 10, United States Code, is amended—
(1) by redesignating paragraph (3) as para-
graph (4); and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3) No task or delivery order contract in an amount
estimated to exceed $100,000,000 (including all options)
may be awarded to a single contractor unless the head of
the agency determines in writing that—
‘‘(A) because of the size, scope, or method of per-
formance of the requirement, it would not be practical
to award multiple task or delivery order contracts;
‘‘(B) the task or delivery orders expected under
the contract are so integrally related that only a sin-
gle contractor can reasonably perform the work;
‘‘(C) the contract provides only for firm, fixed
price task orders or delivery orders for—
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‘‘(i) products for which unit prices are es-
tablished in the contract; or
‘‘(ii) services for which prices are estab-
lished in the contract for the specific tasks to be
performed; or
‘‘(D) only one contractor is qualified and capa-
ble of performing the work at a reasonable price to the
government.’’.
(b) ENHANCED COMPETITION FOR ORDERS IN EXCESS
OF $5,000,000.—Section 2304c of such title is amended—
(1) by redesignating subsections (d), (e), and (f)
as subsections (e), (f), and (g), respectively;
(2) by inserting after subsection (c) the following
new subsection (d):
‘‘(d) ENHANCED COMPETITION FOR ORDERS IN EX-
CESS OF $5,000,000.—In the case of a task or delivery order
in excess of $5,000,000, the requirement to provide all con-
tractors a fair opportunity to be considered under sub-
section (b) is not met unless all such contractors are pro-
vided, at a minimum—
‘‘(1) a notice of the task or delivery order that
includes a clear statement of the agency’s require-
ments;
‘‘(2) a reasonable period of time to provide a
proposal in response to the notice;
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‘‘(3) disclosure of the significant factors and sub-
factors, including cost or price, that the agency ex-
pects to consider in evaluating such proposals, and
their relative importance;
‘‘(4) in the case of an award that is to be made
on a best value basis, a written statement docu-
menting the basis for the award and the relative im-
portance of quality and price or cost factors; and
‘‘(5) an opportunity for a post-award debriefing
consistent with the requirements of section 2305(b)(5)
of this title.’’; and
(3) by striking subsection (e), as redesignated by
paragraph (1), and inserting the following new sub-
section (e):
‘‘(e) PROTESTS.—(1) A protest is not authorized in
connection with the issuance or proposed issuance of a task
or delivery order except for—
‘‘(A) a protest on the ground that the order in-
creases the scope, period, or maximum value of the
contract under which the order is issued; or
‘‘(B) a protest of an order valued in excess of
$5,000,000.
‘‘(2) Notwithstanding section 3556 of title 31, the
Comptroller General of the United States shall have exclu-
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sive jurisdiction of a protest authorized under paragraph
(1)(B).’’.
(c) EFFECTIVE DATES.—
(1) SINGLE
AWARD
CONTRACTS.—The amend-
ments made by subsection (a) shall take effect on the
date that is 60 days after the date of the enactment
of this Act, and shall apply with respect to any con-
tract awarded on or after such date.
(2) ORDERS
IN
EXCESS
OF
$5,000,000.—The
amendments made by subsection (b) shall take effect
on the date that is 60 days after the date of the enact-
ment of this Act, and shall apply with respect to any
task or delivery order awarded on or after such date.
SEC. 822. CLARIFICATION OF RULES REGARDING THE PRO-
CUREMENT OF COMMERCIAL ITEMS.
(a) TREATMENT OF SUBSYSTEMS, COMPONENTS, AND
SPARE PARTS AS COMMERCIAL ITEMS.—
(1) IN
GENERAL.—Section 2379 of title 10,
United States Code, is amended—
(A) by striking subsection (b) and inserting
the following new subsection (b):
‘‘(b) TREATMENT OF SUBSYSTEMS AS COMMERCIAL
ITEMS.—A subsystem of a major weapon system shall be
treated as a commercial item and purchased under proce-