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‘‘(F) Physical or psychological conditions
arising out of acts of sexual violence.’’.
SEC. 702. DEFINITION OF DEPENDENT FOR PURPOSES OF
MEDICAL AND DENTAL COVERAGE TO IN-
CLUDE CERTAIN UNMARRIED PERSONS IN
THE LEGAL CUSTODY OF A MEMBER OR
FORMER MEMBER.
(a) EXPANSION OF DEFINITION.—Section 1072(2) of
title 10, United States Code, is amended—
(1) in subparagraph (G), by striking out ‘‘;
and’’ and inserting in lieu thereof a semicolon;
(2) in subparagraph (H), by striking out the
period and inserting in lieu thereof ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(I) an unmarried person who—
‘‘(i) is placed in the legal custody of
the member or former member as a result
of an order of a court of competent juris-
diction in the United States (or a Territory
or possession of the United States) for a
period of at least 12 consecutive months;
‘‘(ii)(I) has not attained the age of 21;
‘‘(II) has not attained the age of 23
and is enrolled in a full time course of
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study at an institution of higher learning
approved by the administering Secretary;
or
‘‘(III) is incapable of self support be-
cause of a mental or physical incapacity
that occurred while the person was consid-
ered a dependent of the member or former
member under this subparagraph pursuant
to subclause (I) or (II);
‘‘(iii) is dependent on the member or
former member for over one-half of the
person’s support, as prescribed in regula-
tions of the administering Secretary;
‘‘(iv) resides with the member or
former member unless separated by the ne-
cessity of military service or to receive in-
stitutional care as a result of disability, in-
capacitation, or such other circumstances
as the administering Secretary may by reg-
ulation prescribe; and
‘‘(v) is not a dependent of a member
or a former member under any other sub-
paragraph.’’.
(b) 
APPLICATION
OF
AMENDMENT.—Section
1072(2)(I) of title 10, United States Code, as added by
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subsection (a), shall apply with respect to determinations
of dependency made on or after July 1, 1994.
Subtitle B—Health Care
Management
SEC. 711. EXTENSION AND REVISION OF SPECIALIZED
TREATMENT SERVICES PROGRAM.
(a) EXTENSION OF WAIVER AUTHORITY REGARDING
40-MILE RADIUS RESTRICTION.—Section 1079(a)(7)(B)
of title 10, United States Code, is amended by striking
out ‘‘October 1, 1993’’ and inserting in lieu thereof, ‘‘Oc-
tober 1, 1995’’.
(b) INCLUSION OF FACILITIES PURSUANT TO CON-
TRACT OR AGREEMENT.—Section 1105 of such title is
amended—
(1) by inserting ‘‘(a) DETERMINATION.—’’ be-
fore ‘‘In determining’’;
(2) by striking out ‘‘within the area served by
that facility’’; and
(3) by adding at the end the following new sub-
sections:
‘‘(b) REGULATIONS.—The Secretary of Defense,
after consulting with the other administering Secretaries,
shall prescribe regulations to implement this section. Such
regulations shall include standards for the designation of
service areas comparable in size to service areas des-
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ignated for facilities of the uniformed services pursuant
to sections 1079(a)(7), 1080, and 1086(e) of this title.
‘‘(c) REIMBURSEMENT
OF TRANSPORTATION
AND
SUBSISTENCE EXPENSES.—(1) Subject to paragraph (2),
the regulations required by subsection (b) also may pro-
vide for the full or partial reimbursement of reasonable
expenses for—
‘‘(A) the long-distance transportation for a cov-
ered beneficiary to or from a health care facility at
which specialized health care services are provided
pursuant to this chapter; and
‘‘(B) the long-distance transportation, tem-
porary lodging, and meals (not to exceed the applica-
ble per diem rate) for a non-medical attendant (in-
cluding a member of the uniformed services on ac-
tive duty) who accompanies the covered beneficiary.
‘‘(2) Reimbursement of expenses may be made under
paragraph (1) only if the Secretary of Defense determines
that such reimbursement will permit the health care serv-
ices to be provided at less total cost to the Department
of Defense than if the services were otherwise provided
pursuant to this chapter. In lieu of reimbursement for
such expenses, the Secretary may authorize the provision
of transportation, meals, and lodging by the Department
of Defense when reasonably available.’’.
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SEC. 712. CODIFICATION OF CHAMPUS PEER REVIEW ORGA-
NIZATION PROGRAM PROCEDURES.
Section 1079 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(o)(1) Health care services provided pursuant to this
section or section 1086 of this title may not include serv-
ices determined under the CHAMPUS Peer Review Orga-
nization program to be not medically or psychologically
necessary.
‘‘(2) The Secretary of Defense, after consulting with
the other administering Secretaries, may—
‘‘(A) adopt by regulation any quality and utili-
zation review requirements and procedures in effect
for the Peer Review Organization program under
title XVIII of the Social Security Act (42 U.S.C.
1395c et seq.) that the Secretary determines to be
necessary to carry out this subsection; and
‘‘(B) adapt such requirements and procedures
to the circumstances of the CHAMPUS Peer Review
Organization program as the Secretary determines
to be appropriate.’’.
SEC. 713. FEDERAL PREEMPTION REGARDING CONTRACTS
FOR MEDICAL AND DENTAL CARE.
(a) PREEMPTION.—Section 1103 of title 10, United
States Code, is amended to read as follows:
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‘‘§ 1103. Contracts for medical and dental care: State
and local preemption
‘‘(a) OCCURRENCE OF PREEMPTION.—A law or regu-
lation of a State or local government relating to health
insurance, prepaid health plans, or other health care deliv-
ery and financing methods shall not apply to any contract
entered into pursuant to this chapter by the Secretary of
Defense or the administering Secretaries to the extent
that the Secretary of Defense or the administering Sec-
retaries determine that—
‘‘(1) the State or local law or regulation is in-
consistent with a specific provision of the contract or
a regulation promulgated by the Secretary of De-
fense or the administering Secretaries pursuant to
this chapter; or
‘‘(2) preemption of the State or local law or
regulation is necessary to implement or operate the
contract or to achieve some other important Federal
interest.
‘‘(b) EFFECT OF PREEMPTION.—In the case of the
preemption under subsection (a) of a State or local law
or regulation regarding financial solvency, the Secretary
of Defense or the administering Secretaries shall require
an independent audit of the prime contractor of each con-
tract entered into pursuant to this chapter covered by the
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preemption. The audit shall be performed by the Defense
Contract Audit Agency.
‘‘(c) STATE DEFINED.—In this section, the term
‘State’ includes the District of Columbia, the Common-
wealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, and each territory and possession of the
United States.’’.
(b) APPLICATION OF AMENDMENT.—Section 1103 of
title 10, United States Code, as amended by subsection
(a), shall apply with respect to any contract entered into
under chapter 55 of such title before, on, or after the date
of the enactment of this Act.
SEC. 714. DELAY OF TERMINATION EFFECTIVE DATE FOR
UNIFORMED SERVICES TREATMENT FACILI-
TIES.
Subsection (e) of section 1252 of the Department of
Defense Authorization Act, 1984 (42 U.S.C. 248d) is
amended by striking out ‘‘1993’’ and inserting in lieu
thereof ‘‘1995’’.
SEC. 715. MANAGED-CARE DELIVERY AND REIMBURSE-
MENT MODEL FOR THE UNIFORMED SERV-
ICES TREATMENT FACILITIES.
(a) TIME FOR OPERATION OF MANAGED-CARE DE-
LIVERY AND REIMBURSEMENT MODEL.—Subsection (c)
of section 718 of the National Defense Authorization Act
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for Fiscal Year 1991 (Public Law 101–510; 104 Stat.
1587) is amended by striking out the first sentence and
inserting in lieu thereof the following:
‘‘(1) TIME
FOR
OPERATION.—Not later than
October 1, 1993, the Secretary of Defense shall
begin operation of a managed-care delivery and re-
imbursement model that will continue to utilize the
Uniformed Services Treatment Facilities in the mili-
tary health services system.’’.
(b) COPAYMENTS
AND
DEFINITION.—Such sub-
section is further amended by adding at the end the fol-
lowing new paragraphs:
‘‘(2) COPAYMENTS.—A Uniformed Services
Treatment Facility for which there exists a Uni-
formed Services Treatment Facilities Managed-Care
Plan may impose nominal charges for inpatient and
outpatient care provided to all categories of bene-
ficiaries enrolled in the plan. The schedule and ap-
plication of such charges shall be in accordance with
the terms and conditions specified in the plan.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘Uniformed Services Treatment
Facility’ means a facility described in section 911(a)
of the Military Construction Authorization Act, 1982
(42 U.S.C. 248c(a)).’’.
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SEC. 716. CLARIFICATION OF CONDITIONS ON EXPANSION
OF CHAMPUS REFORM INITIATIVE TO OTHER
LOCATIONS.
(a) IN GENERAL.—Subsection (a) of section 712 of
the National Defense Authorization Act for Fiscal Year
1993 (10 U.S.C. 1073 note) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘CONDITION.—’’;
(2) in the second sentence, by inserting after
‘‘cost-effectiveness of the initiative’’ the following:
‘‘(while assuring that the combined cost of care in
military treatment facilities and under the Civilian
Health and Medical Program of the Uniformed
Services will not be increased as a result of the ex-
pansion)’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) To the extent any revision of the CHAMPUS
reform initiative is necessary in order to make the certifi-
cation required by this subsection, the Secretary shall as-
sure that enrolled covered beneficiaries may obtain health
care services with reduced out-of-pocket costs, as com-
pared to standard CHAMPUS.’’.
(b) DEFINITION.—Subsection (d) of such section is
amended by adding at the end the following new para-
graph:
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‘‘(3) The terms ‘Civilian Health and Medical
Program 
of 
the 
Uniformed 
Services’ 
and
‘CHAMPUS’ have the meaning given the term
‘Civilian Health and Medical Program of the Uni-
formed Services’ in section 1072(4) of title 10,
United States Code.’’
SEC. 717. INCREASED FLEXIBILITY FOR PERSONAL SERV-
ICE 
CONTRACTS 
IN 
MILITARY 
MEDICAL
TREATMENT FACILITIES.
(a) PERSONAL
SERVICES
CONTRACTS
AUTHOR-
IZED.—(1) Section 1091 of title 10, United States Code,
is amended to read as follows:
‘‘§ 1091. Personal services contracts
‘‘(a) AUTHORITY.—The Secretary of Defense may
enter into personal services contracts to carry out health
care responsibilities in medical treatment facilities of the
Department of Defense, as determined to be necessary by
the Secretary. The authority provided in this subsection
is in addition to any other contract authorities of the Sec-
retary, including authorities relating to the management
of such facilities and the administration of this chapter.
‘‘(b) LIMITATION ON AMOUNT OF COMPENSATION.—
In no case may the total amount of compensation paid
to an individual in any year under a personal services con-
tract entered into under subsection (a) exceed the amount
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of annual compensation (excluding expenses) specified in
section 102 of title 3.
‘‘(c) PROCEDURES.—(1) The Secretary shall estab-
lish by regulation procedures for entering into personal
services contracts with individuals under subsection (a).
At a minimum, such procedures shall assure—
‘‘(A) the provision of adequate notice of con-
tract opportunities to individuals residing in the area
of the medical treatment facility involved; and
‘‘(B) consideration of interested individuals
solely on the basis of the qualifications established
for the contract and the proposed contract price.
‘‘(2) Upon the establishment of such procedures
under paragraph (1), the Secretary may exempt contracts
covered by this section from the competitive contracting
requirements specified in section 2304 of this title or any
other similar requirements of law.
‘‘(d) EXCEPTIONS.—The procedures and exemptions
provided under subsection (c) shall not apply to personal
services contracts entered into under subsection (a) with
entities other than individuals or to any contract that is
not an authorized personal services contract under such
subsection.’’.
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(2) The item relating to section 1091 in the table of
sections at the beginning of chapter 55 of title 10, United
States Code, is amended to read as follows:
‘‘1091. Personal services contracts.’’.
(b) REPORT REQUIRED.—Not later than 30 days
after the end of the 180-day period beginning on the date
on which the Secretary of Defense first uses the authority
provided under section 1091 of title 10, United States
Code (as amended by subsection (a)(1)), the Secretary
shall submit to Congress a report specifying—
(1) the salaries, by medical specialty, offered by
the Secretary to individuals agreeing to enter into a
personal services contract under such section during
that period;
(2) the extent to which those salaries exceed the
salaries previously offered by the Secretary for indi-
viduals in such medical specialties;
(3) the total number and medical specialties of
individuals serving in military medical treatment fa-
cilities during that period pursuant to such a con-
tract; and
(4) the number of such individuals (and their
medical specialties) who are receiving compensation
under such a contract in an amount in excess of the
maximum amount authorized under such section, as
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such section was in effect on the day before the date
of the enactment of this Act.
SEC. 718. EXPANSION OF THE PROGRAM FOR THE COLLEC-
TION OF HEALTH CARE COSTS FROM THIRD-
PARTY PAYERS.
(a) COLLECTION CHANGES.—Section 1095 of title
10, United States Code, is amended—
(1) in subsection (g)—
(A) by inserting after ‘‘collected under this
section from a third party payer’’ the following:
‘‘or under any other provision of law from any
other payer’’; and
(B) by inserting before the period the fol-
lowing: ‘‘and shall not be taken into consider-
ation in establishing the operating budget of the
facility’’; and
(2) in subsection (h)(2), by inserting after ‘‘in-
cludes’’ the following: ‘‘a preferred provider organi-
zation and’’.
(b) REPORT ON COLLECTIONS.—Not later than Feb-
ruary 15 of each year, the Secretary of Defense shall sub-
mit to Congress a report specifying for each medical treat-
ment facility of the uniformed services—
(1) the amount collected during the preceding
fiscal year under section 1095 of title 10, United
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States Code, from third-party payers for the costs of
health care provided at the facility; and
(2) the amount requested for operation and
maintenance of the facility for the preceding fiscal
year, the fiscal year in which the report is submit-
ted, and the next fiscal year.
SEC. 719. ALTERNATIVE RESOURCE ALLOCATION METHOD
FOR 
MEDICAL 
FACILITIES 
OF 
THE 
UNI-
FORMED SERVICES.
(a) INCLUSION OF CAPITATION METHOD.—Section
1101 of title 10, United States Code is amended—
(1) in subsection (a)—
(A) by striking ‘‘DRGS’’ in the subsection
heading and inserting in lieu thereof ‘‘CAPITA-
TION OR DRG METHOD’’;
(B) by inserting ‘‘capitation or’’ before
‘‘diagnosis-related groups’’;
(2) in subsection (b), by striking ‘‘Diagnosis-re-
lated groups’’ and inserting in lieu thereof ‘‘Capita-
tion or diagnosis-related groups’’; and
(3) in subsection (c)—
(A) by striking ‘‘shall’’ both places it ap-
pears and inserting in lieu thereof ‘‘may’’; and
(B) by adding at the end the following new
paragraph:
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‘‘(4) An appropriate method for calculating or
estimating the annual per capita costs of providing
comprehensive health care services to members of
the uniformed services on active duty and covered
beneficiaries.’’.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 1101. Resource allocation methods: capitation or
diagnosis-related groups’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 55 of such title is
amended to read as follows:
‘‘1101. Resource allocation methods: capitation or diagnosis-related groups.’’.
SEC. 720. USE OF HEALTH MAINTENANCE ORGANIZATION
MODEL AS OPTION FOR MILITARY HEALTH
CARE.
(a) USE OF MODEL.—Not later than December 15,
1993, the Secretary of Defense shall prescribe and imple-
ment a health benefit option (and accompanying cost-shar-
ing requirements) for covered beneficiaries eligible for
health care under chapter 55 of title 10, United States
Code, that is modelled on health maintenance organization
plans offered in the private sector and other similar Gov-
ernment health insurance programs. The Secretary shall
include, to the maximum extent practicable, the health
benefit option required under this subsection as one of the
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options available to covered beneficiaries in all future man-
aged health care initiatives undertaken by the Secretary.
(b) ELEMENTS
OF OPTION.—The Secretary shall
offer covered beneficiaries who enroll in the health benefit
option required under subsection (a) reduced out-of-pocket
costs and a benefit structure that is as uniform as possible
throughout the United States. The Secretary shall allow
enrollees to seek health care outside the option, except
that the Secretary may prescribe higher out-of-pocket
costs than authorized under section 1079 or 1086 of title
10, United States Code, for enrollees who do so.
(c) GOVERNMENT COSTS.—The health benefit option
required under subsection (a) shall be administered so
that the costs incurred by the Secretary to provide the
option are no greater than the costs that would otherwise
be incurred to provide health care to the covered bene-
ficiaries who enroll in the option.
SEC. 721. AUTHORIZATION FOR AUTOMATED MEDICAL
RECORD CAPABILITY TO BE INCLUDED IN
MEDICAL INFORMATION SYSTEM.
(a) AUTOMATED MEDICAL RECORD CAPABILITY.—In
carrying out the acquisition of the Department of Defense
medical information system referred to in section 704 of
the National Defense Authorization Act for Fiscal Year
1987 (Public Law 99–661; 100 Stat. 704), the Secretary
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of Defense may permit an automated medical record capa-
bility to be included in the system. The Secretary may
make such modifications to existing contracts, and include
such specifications in future contracts, as the Secretary
considers necessary to include such a capability in the sys-
tem.
(b) PLAN.—The Secretary of Defense shall develop
a plan to test the use of automated medical records at
one or more military medical treatment facilities. Not later
than January 15, 1994, the Secretary shall submit the
plan to the Committees on Armed Services of the Senate
and House of Representatives.
(c) DEFINITIONS.—In this section:
(1) The term ‘‘medical information system’’
means a computer-based information system that—
(A) receives data normally recorded con-
cerning patients;
(B) creates and maintains from such data
a computerized medical record for each patient;
and
(C) provides access to data for patient
care, hospital administration, research, and
medical care resource planning.
(2) The term ‘‘automated medical record’’
means a computer-based information system that—
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(A) is available at the time and place of
interaction between a patient and a health care
provider;
(B) receives, stores, and provides access to
relevant patient and other medical information
in a single, logical patient record that is appro-
priately organized for clinical decisionmaking;
and
(C) maintains patient confidentiality in
conformance with all applicable laws and regu-
lations.
Subtitle C—Other Matters
SEC. 731. AWARD OF CONSTRUCTIVE SERVICE CREDIT FOR
ADVANCED 
HEALTH 
PROFESSIONAL 
DE-
GREES.
(a) CREDIT ON ORIGINAL APPOINTMENT.—Section
533(b)(1) of title 10, United States Code, is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘professional’’ in the first
sentence after ‘‘One year for each year of ad-
vanced’’;
(B) by striking out ‘‘Except as provided in
clause (E), in’’ at the beginning of the second
sentence and inserting in lieu thereof ‘‘In’’; and
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(C) by striking out ‘‘postsecondary edu-
cation in excess of four that are’’ in the second
sentence and inserting in lieu thereof ‘‘advanced
education’’;
(2) by striking out subparagraph (E); and
(3) by redesignating subparagraph (F) as sub-
paragraph ‘‘(E)’’.
(b) CREDIT AS RESERVE OF THE ARMY.—Section
3353(b)(1) of such title is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘professional’’ in the first
sentence after ‘‘One year for each year of ad-
vanced’’;
(B) by striking out ‘‘Except as provided in
clause (E), in ’’ at the beginning of the second
sentence and inserting in lieu thereof ‘‘In’’; and
(C) by striking out ‘‘postsecondary edu-
cation in excess of four that are’’ in the second
sentence and inserting in lieu thereof ‘‘advanced
education’’;
(2) by striking out subparagraph (E); and
(3) by redesignating subparagraph (F) as sub-
paragraph ‘‘(E)’’.
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(c) CREDIT IN THE NAVAL RESERVE AND MARINE
CORPS RESERVE.—Section 5600(b)(1) of such title is
amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘professional’’ in the first
sentence after ‘‘One year for each year of ad-
vanced’’;
(B) by striking out ‘‘Except as provided in
clause (E), in’’ at the beginning of the second
sentence and inserting in lieu thereof ‘‘In’’; and
(C) by striking out ‘‘postsecondary edu-
cation in excess of four that are’’ in the second
sentence and inserting in lieu thereof ‘‘advanced
education’’;
(2) by striking out subparagraph (E); and
(3) by redesignating subparagraph (F) as sub-
paragraph ‘‘(E)’’.
(d) CREDIT AS RESERVE OF THE AIR FORCE.—Sec-
tion 8353(b)(1) of such title is amended—
(1) in subparagraph (A)—
(A) by inserting ‘‘professional’’ in the first
sentence after ‘‘One year for each year of ad-
vanced’’;
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(B) by striking out ‘‘Except as provided in
clause (E), in’’ at the beginning of the second
sentence and inserting in lieu thereof ‘‘In’’; and
(C) by striking out ‘‘postsecondary edu-
cation in excess of four that are’’ in the second
sentence and inserting in lieu thereof ‘‘advanced
education’’;
(2) by striking out subparagraph (E); and
(3) by redesignating subparagraph (F) as sub-
paragraph ‘‘(E)’’.
(e) APPLICATION OF AMENDMENTS.—The amend-
ments made by this section shall apply with respect to de-
termining the constructive service credit of persons receiv-
ing an original appointment as commissioned officers in
regular components of the Armed Forces, an original ap-
pointment as reserve commissioned officers, or an assign-
ment or designation to certain officer categories described
in such sections whether such appointment, assignment,
or designation occurred before the date of the enactment
of this Act or occurs on or after such date.
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SEC. 732. CLARIFICATION OF AUTHORITY FOR GRADUATE
STUDENT PROGRAM OF THE UNIFORMED
SERVICES 
UNIVERSITY 
OF 
THE 
HEALTH
SCIENCES.
(a) DISTINCTION BETWEEN MEDICAL AND GRAD-
UATE STUDENTS.—Section 2114 of title 10, United States
Code, is amended—
(1) in subsection (a), by striking out ‘‘Stu-
dents’’ in the first sentence and inserting in lieu
thereof ‘‘Medical students’’;
(2) in subsection (b), by striking out ‘‘Stu-
dents’’ in the first and fourth sentences and insert-
ing in lieu thereof in each instance ‘‘Medical stu-
dents’’;
(3) in subsection (d), by striking out ‘‘member’’
in the first sentence and inserting in lieu thereof
‘‘commissioned member’’; and
(4) by adding at the end the following new sub-
section:
‘‘(g) The Secretary of Defense shall establish selec-
tion procedures, service obligations (if any), and such
other requirements as the Secretary determines to be ap-
propriate for students in any postdoctoral, postgraduate,
or technological institute established pursuant to section
2113(h) of this title.’’.
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(b) APPLICATION OF AMENDMENTS.—The amend-
ments made by subsection (a) shall apply with respect to
students attending the Uniformed Services University of
the Health Sciences on or after the date of the enactment
of this Act.
SEC. 733. AUTHORITY FOR THE ARMED FORCES INSTITUTE
OF PATHOLOGY TO OBTAIN ADDITIONAL DIS-
TINGUISHED 
PATHOLOGISTS 
AND 
SCI-
ENTISTS.
Section 176(c) of title 10, United States Code, is
amended by adding at the end the following new sentence:
‘‘The Secretary of Defense, on a case-by-case basis, may
waive the limitation on the number of distinguished pa-
thologists or scientists with whom agreements may be en-
tered into under this subsection if the Secretary deter-
mines that such waiver is in the best interest of the De-
partment of Defense.’’.
SEC. 734. REPORT ON THE PROVISION OF HEALTH-CARE
SERVICES TO WOMEN.
(a) REPORT REQUIRED.—The Secretary of Defense
shall prepare a report evaluating the provision of health-
care services through military medical treatment facilities
and the Civilian Health and Medical Program of the Uni-
formed Services to female members of the uniformed serv-
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ices and female covered beneficiaries eligible for health
care under chapter 55 of title 10, United States Code.
(b) CONTENTS.—The report required by subsection
(a) shall contain the following:
(1) A description of the medical personnel of
the Department of Defense who provided health-care
services during fiscal year 1993 to female members
and covered beneficiaries, including—
(A) the number of such personnel (includ-
ing both the number of individual employees
and the number of full-time employee equiva-
lents);
(B) the professional qualifications or spe-
cialty training of such personnel; and
(C) the medical facilities to which such
personnel were assigned.
(2) A description of any actions, including the
use of special pays and incentives, taken by the Sec-
retary during fiscal year 1993—
(A) to ensure the retention of the medical
personnel described in paragraph (1);
(B) to recruit additional personnel to pro-
vide health-care services to female members and
female covered beneficiaries; and
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(C) to replace departing personnel who
provided such services.
(3) A description of any existing or proposed
programs to encourage specialization of health care
professionals in fields related to primary and preven-
tive health-care services for women.
(4) An assessment of any difficulties experi-
enced by military medical treatment facilities or the
Civilian Health and Medical Program of the Uni-
formed Services in furnishing primary and preven-
tive health-care services for women and a description
of those actions taken by the Secretary to resolve
such difficulties.
(5) An assessment of the extent to which gen-
der-related factors impede or complicate diagnoses
(such as inappropriate psychiatric referrals and ad-
missions) made by medical personnel described in
paragraph (1).
(6) A description of the actions taken by the
Secretary to foster and encourage the expansion of
research relating to health care issues of concern to
female members of the uniformed services and fe-
male covered beneficiaries.
(c) POPULATION STUDY OF THE NEED OF FEMALE
MEMBERS AND FEMALE COVERED BENEFICIARIES FOR
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HEALTH-CARE SERVICES.—(1) As part of the report re-
quired by subsection (a), the Secretary shall conduct a
study to determine the needs of female members of the
uniformed services and female covered beneficiaries for
health-care services, including primary and preventive
health-care services for women.
(2) The study shall examine the health needs of cur-
rent members and covered beneficiaries and future mem-
bers and covered beneficiaries based upon the anticipated
size and composition of the Armed Forces in the year
2000 and should be based on the demographics of society
as a whole.
(d) SUBMISSION AND REVISION.—The Secretary of
Defense shall submit the report required by subsection (a)
to Congress not later than April 1, 1994. The Secretary
shall revise and resubmit the report to Congress not later
than April 1, 1999.
(e) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘primary and preventive health
care services for women’’ has the meaning given
such term in paragraph (6) of section 1072 of title
10, United States Code, as added by section 701(c)).
(2) The term ‘‘covered beneficiary’’ has the
meaning given such term in paragraph (5) of such
section.
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SEC. 735. SENSE OF CONGRESS REGARDING THE INCLU-
SION OF CHIROPRACTIC CARE AS A TYPE OF
HEALTH 
CARE 
AUTHORIZED 
UNDER
CHAMPUS.
(a) FINDINGS.—Congress finds the following:
(1) Chiropractors are currently prohibited from
receiving reimbursement under the Civilian Health
and Medical Program of the Uniformed Services
(CHAMPUS).
(2) Chiropractors offer cost-effective care that
is 
desired 
by 
covered 
beneficiaries 
under
CHAMPUS.
(3) On March 1, 1992, the Department of De-
fense concluded a two-year demonstration project to
test 
the 
participation 
of 
chiropractors 
under
CHAMPUS.
(4) The demonstration project included over
1,100 chiropractors in the States of Colorado and
Washington and generated over 50,000 claims from
5,700 covered beneficiaries.
(5) A final report from the Department of De-
fense on the demonstration project was expected in
December 1992, but analysis of data derived from
the project was delayed due to the late filing of
claims.
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(b) SENSE OF CONGRESS.—In light of the findings
in subsection (a), it is the sense of Congress that the Sec-
retary of Defense should—
(1) designate the analysis referred to in sub-
section (a)(5) of the demonstration project to test
the participation of chiropractors under CHAMPUS
as a priority matter to be completed as expeditiously
as possible, and not later than October 1, 1993;
(2) submit that analysis, together with such
conclusions as the Secretary considers to be appro-
priate, to the congressional defense committees at
the earliest possible date, and not later than October
1, 1993;
(3) provide Congress (including the General Ac-
counting Office or other designated representative of
Congress) access to all data resulting from the dem-
onstration project; and
(4) proceed immediately with any preliminary
staff work (such as development of procedures and
regulations) that may be required to comply with the
findings and recommendations resulting from the
analysis of the demonstration project.
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SEC. 736. REPORT REGARDING DEMONSTRATION PRO-
GRAMS 
FOR 
THE 
SALE 
OF 
PHARMA-
CEUTICALS.
Section 702 of the National Defense Authorization
Act for Fiscal Year 1993 (Public Law 102–484; 10 U.S.C.
1079 note) is amended—
(1) by redesignating subsection (f) as sub-
section (g); and
(2) by inserting after subsection (e) the follow-
ing new subsection:
‘‘(f) 
ADDITIONAL
REPORTS
REGARDING
PRO-
GRAMS.—Not later than January 1, 1994, the Secretary
of Defense shall submit to Congress a report containing—
‘‘(1) an evaluation of the feasibility and advis-
ability of increasing the size of those areas deter-
mined by the Secretary under subsection (c)(2) to be
adversely affected by the closure of a health care fa-
cility of the uniformed services in order to increase
the number of persons described in such subsection
who will be eligible to participate in the demonstra-
tion project for pharmaceuticals by mail or in the re-
tail pharmacy network under this section;
‘‘(2) an evaluation of the feasibility and advis-
ability of expanding the demonstration project and
the retail pharmacy network under this section to in-
clude all covered beneficiaries under chapter 55 of
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title 10, United States Code, including those persons
currently excluded from participation in the military
medical system by operation of section 1086(d)(1) of
such title;
‘‘(3) an estimation of the costs that would be
incurred, and any savings that would be achieved by
improving efficiencies of operation, as a result of un-
dertaking the increase or expansion described in
paragraph (1) or (2); and
‘‘(4) such recommendations as the Secretary
considers to be appropriate.’’.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Acquisition Assistance
Programs
SEC. 801. DEFENSE PROCUREMENT TECHNICAL ASSIST-
ANCE PROGRAM.
(a) AVAILABILITY
OF
AUTHORIZED
APPROPRIA-
TIONS.—Of the amounts authorized to be appropriated in
section 301(5) for Defense-wide activities for fiscal year
1994, $12,000,000 shall be available for such fiscal year
for carrying out the provisions of chapter 142 of title 10,
United States Code.
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(b) SPECIFIC PROGRAMS.—Of the amounts referred
to in subsection (a), $600,000 shall be available for fiscal
year 1994 for the purpose of carrying out programs spon-
sored by eligible entities referred to in subparagraph (D)
of section 2411(1) of title 10, United States Code, that
provide procurement technical assistance in distressed
areas referred to in subparagraph (B) of section 2411(2)
of such title. If there is an insufficient number of satisfac-
tory proposals for cooperative agreements in such dis-
tressed areas to allow for effective use of the funds made
available in accordance with this subsection in such areas,
the funds shall be allocated among the Defense Contract
Administration Services regions in accordance with section
2415 of such title.
SEC. 802. HISTORICALLY BLACK COLLEGES AND UNIVER-
SITIES.
(a) FUNDING.—Of the amounts authorized to be ap-
propriated for fiscal year 1994 pursuant to title II of this
Act, $15,000,000 shall be available for such fiscal year
for infrastructure assistance to historically Black colleges
and universities and minority institutions under section
2323(c)(3) of title 10, United States Code.
(b) INFORMATION ON PROGRESS IN PROVIDING IN-
FRASTRUCTURE ASSISTANCE REQUIRED IN ANNUAL RE-
PORT.—Effective October 1, 1993, section 2323(i)(3) of
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title 10, United States Code, is amended by adding at the
end the following:
‘‘(D) A detailed description of the infrastruc-
ture assistance provided under subsection (c) during
the preceding fiscal year and of the plans for provid-
ing such assistance during the fiscal year in which
the report is submitted.’’.
Subtitle B—Provisions to Stream-
line Defense Acquisition Laws
SEC. 811. REPEAL AND AMENDMENT OF OBSOLETE, REDUN-
DANT, OR OTHERWISE UNNECESSARY LAWS
APPLICABLE TO DEPARTMENT OF DEFENSE
GENERALLY.
(a) REPEALS.—The following provisions of law are
repealed:
(1) Chapter 135 of title 10, United States Code
(relating to encouragement of aviation).
(2) Section 2317 of title 10, United States
Code (relating to encouragement of competition and
cost savings).
(3) Section 2362 of title 10, United States
Code (relating to testing requirements for wheeled or
tracked vehicles).
(4) Section 2389 of title 10, United States
Code (relating to purchases from the Commodity
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Credit Corporation and price adjustments for con-
tracts for procurement of milk).
(5) Sections 2436 and 2437 of title 10, United
States Code (relating to defense enterprise pro-
grams).
(6) Section 821 of Public Law 101–189 (103
Stat. 1503) (relating to certificate of independent
price determination in certain Department of De-
fense contract solicitations).
(b) DELETION
OF EXPIRING REPORT REQUIRE-
MENT.—Effective February 1, 1994, section 2361 of title
10, United States Code, is amended by striking out sub-
section (c).
SEC. 812. EXTENSION TO DEPARTMENT OF DEFENSE GEN-
ERALLY OF CERTAIN ACQUISITION LAWS AP-
PLICABLE TO THE ARMY AND AIR FORCE.
(a) INDUSTRIAL MOBILIZATION.— (1) Subchapter V
of chapter 148 of title 10, United States Code, is amended
by adding at the end the following new sections:
‘‘§ 2538. Industrial mobilization: orders; priorities;
possession of manufacturing plants; vio-
lations
‘‘(a) ORDERS.—In time of war or when war is immi-
nent, the President, through the head of any department,
may order from any person or organized manufacturing
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industry necessary products or materials of the type usu-
ally produced or capable of being produced by that person
or industry.
‘‘(b) PRIORITIES.—A person or industry with whom
an order is placed under subsection (a), or the responsible
head thereof, shall comply with that order and give it prec-
edence over all orders not placed under that subsection.
‘‘(c) POSSESSION OF MANUFACTURING PLANTS.—In
time of war or when war is imminent, the President,
through the head of any department, may take immediate
possession of any plant that is equipped to manufacture,
or that in the opinion of the Secretary of Defense is capa-
ble of being readily transformed into a plant for manufac-
turing, arms or ammunition, parts thereof, or necessary
supplies for the armed forces if the person or industry
owning or operating the plant, or the responsible head
thereof, refuses—
‘‘(1) to give precedence to the order as pre-
scribed in subsection (b);
‘‘(2) to manufacture the kind, quantity, or qual-
ity of arms or ammunition, parts thereof, or nec-
essary supplies, as ordered by the Secretary; or
‘‘(3) to furnish them at a reasonable price as
determined by the Secretary.
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‘‘(d) MANUFACTURE
OF
PRODUCTS
IN
SEIZED
PLANTS.—The President, through the Secretary of De-
fense, may manufacture products that are needed in time
of war or when war is imminent, in any plant that is seized
under subsection (c).
‘‘(e) COMPENSATION AND RENTAL.—Each person or
industry from whom products or materials are ordered
under subsection (a) is entitled to fair and just compensa-
tion. Each person or industry whose plant is seized under
subsection (c) is entitled to a fair and just rental.
‘‘(f) VIOLATIONS.—Whoever fails to comply with this
section shall be imprisoned for not more than three years
and fined under title 18.
‘‘§ 2539. Industrial mobilization: plants; lists
‘‘(a) LIST OF PLANTS EQUIPPED TO MANUFACTURE
ARMS OR AMMUNITION.—The Secretary of Defense shall
maintain a list of all privately owned plants in the United
States, and the territories, commonwealths, and posses-
sions, that are equipped to manufacture for the armed
forces arms or ammunition, or parts thereof, and shall ob-
tain complete information of the kinds of those products
manufactured or capable of being manufactured by each
of those plants, and of the equipment and capacity of each
of those plants.
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‘‘(b) LIST OF PLANTS CAPABLE OF BEING TRANS-
FORMED INTO AMMUNITION FACTORIES.—The Secretary
of Defense shall maintain a list of privately owned plants
in the United States, and the territories, commonwealths,
and possessions, that are capable of being readily trans-
formed into factories for the manufacture of ammunition
for the armed forces and that have a capacity sufficient
to warrant conversion into ammunition plants in time of
war or when war is imminent, and shall obtain complete
information as to the equipment of each of those plants.
‘‘(c) CONVERSION PLANS.—The Secretary of Defense
shall prepare comprehensive plans for converting each
plant listed pursuant to subsection (b) into a factory for
the manufacture of ammunition or parts thereof.
‘‘§ 2540. Industrial mobilization: Board on Mobiliza-
tion of Industries Essential for Military
Preparedness
‘‘The President may appoint a nonpartisan Board on
Mobilization of Industries Essential for Military Prepared-
ness, and may provide necessary clerical assistance, to or-
ganize and coordinate operations under sections 2538 and
2539 of this title.’’.
(2) Sections 4501, 4502, 9501, and 9502 of title 10,
United States Code, are repealed.
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(b) AVAILABILITY OF SAMPLES, DRAWINGS, INFOR-
MATION, EQUIPMENT, MATERIALS, AND CERTAIN SERV-
ICES.—(1) Chapter 148 of title 10, United States Code,
is further amended by adding at the end the following:
‘‘§ 2541. Availability of samples, drawings, informa-
tion, equipment, materials, and certain
services.
‘‘(a) AUTHORITY.—The Secretary of Defense and the
secretaries of the military departments, under regulations
to be prescribed by the Secretary of Defense and when
determined to be in the interest of national defense,
may—
‘‘(1) sell, lend, or give samples, drawings, and
manufacturing or other information (subject to the
rights of third parties) to any United States person
or entity;
‘‘(2) sell or lend government equipment or ma-
terials to any United States person or entity—
‘‘(A) for use in independent research and
development programs, if the equipment or ma-
terial will be used exclusively for such research
and development; or
‘‘(B) for use in demonstrations to a friend-
ly foreign government; and
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‘‘(3) make available to any United States per-
son or entity, for appropriate fees, the services of
any government laboratory, center, range, or other
testing facility for the testing of materials, equip-
ment, models, computer software, and other items.
‘‘(b) FEES.—Fees for services made available under
subsection (a)(3) shall be established by regulations pre-
scribed pursuant to subsection (a). Such fees may not ex-
ceed the amount necessary to recoup the direct costs in-
volved, such as utilities, contractor support, and salaries
of personnel incurred by the United States to provide such
testing.
‘‘(c) CONFIDENTIALITY.—The results of tests per-
formed pursuant to subsection (a)(3) are confidential and
may not be divulged outside the government without the
consent of the persons for whom the tests are performed.
‘‘(d) USE OF FEES.— Fees received for services made
available under subsection (a)(3) may be credited to the
appropriations or funds of the selling activity.’’.
(2) Section 2314 of title 10, United States Code, is
amended by inserting ‘‘or sale’’ after ‘‘procurement’’.
(3) Sections 4506, 4507, 4508, 9506, and 9507 of
title 10, United States Code, are repealed.
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(c) PROCUREMENT
FOR
EXPERIMENTAL
PUR-
POSES.—(1) Chapter 139 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 2373. Procurement for experimental purposes
‘‘(a) AUTHORITY.—The Secretary of a military de-
partment may buy ordnance, signal, and chemical activity
supplies, including parts and accessories, and designs
thereof, that the Secretary concerned considers necessary
for experimental or test purposes in the development of
the best supplies that are needed for the national defense.
‘‘(b) PROCEDURES.—Purchases under this section
may be made inside or outside the United States, with
or without competitive bidding, and by contract or other-
wise. Chapter 137 of this title applies when such pur-
chases are made in quantity.’’.
(2) Sections 4504 and 9504 of title 10, United States
Code, are repealed.
(d) ACCEPTANCE OF GRATUITOUS SERVICES OF CER-
TAIN RESERVE OFFICERS.—(1) Chapter 11 of title 10,
United States Code, is amended by inserting after section
278 the following new section:
‘‘§ 279. Authority to accept certain gratuitous serv-
ices of officers
‘‘Notwithstanding section 1342 of title 31, the Sec-
retary of a military department may accept the gratuitous
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services of an officer of a reserve component under the
Secretary’s jurisdiction (other than an officer of the Army
National Guard of the United States or the Air National
Guard of the United States)—
‘‘(1) in the furtherance of the enrollment, orga-
nization, and training of that officer’s reserve com-
ponent or the Reserve Officers’ Training Corps; or
‘‘(2) in consultation upon matters relating to
the armed forces.’’.
(2) Sections 4541 and 9541 of title 10, United States
Code, are repealed.
SEC. 813. REPEAL AND AMENDMENT OF CERTAIN ACQUISI-
TION LAWS APPLICABLE TO THE ARMY AND
AIR FORCE.
(a) REPEALS.—The following provisions of subtitles
B and D of title 10, United States Code, are repealed:
(1) Sections 4503 and 9503 (relating to re-
search and development programs).
(2) Sections 4505 and 9505 (relating to pro-
curement of production equipment).
(3) Sections 4531 and 9531 (relating to pro-
curement authorization).
(4) Section 4533 (relating to Army rations).
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(5) Sections 4534 and 9534 (relating to sub-
sistence supplies, contract stipulations, and place of
delivery on inspection).
(6) Sections 4535 and 9535 (relating to pur-
chase of exceptional subsistence supplies without ad-
vertising).
(7) Sections 4537 and 9537 (relating to assist-
ance of U.S. mapping agencies with military surveys
and maps).
(8) Sections 4538 and 9538 (relating to ex-
change and reclamation of unserviceable ammuni-
tion).
(b) AMENDMENTS.—(1) Section 2358(a) of title 10,
United States Code, is amended—
(A) in the first sentence, by striking out ‘‘Sub-
ject to approval by the President, the Secretary of
Defense’’ and inserting in lieu thereof ‘‘The Sec-
retary of Defense and the Secretaries of the military
departments’’;
(B) in the first sentence, by inserting after
‘‘other military’’ the following: ‘‘or department’’; and
(C) in the second sentence, by striking out
‘‘Subject to approval by the President, the Sec-
retary’’ and inserting in lieu thereof ‘‘The Secretary
concerned’’.
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(2) Section 2358(b) of such title is amended—
(A) by inserting after ‘‘Secretary of Defense’’
the following: ‘‘or the Secretary of the military de-
partment concerned’’; and
(B) by inserting after ‘‘relationship to a mili-
tary’’ the following: ‘‘or department’’.
SEC. 814. CONSOLIDATION, REPEAL, AND AMENDMENT OF
CERTAIN ACQUISITION LAWS APPLICABLE TO
THE NAVY.
(a) REPEALS.—The following provisions of subtitle C
of title 10, United States Code, are repealed:
(1) Section 7201 (relating to guided missiles,
research and development, procurement, and con-
struction).
(2) Section 7210 (relating to purchase of pat-
ents, patent applications, and licenses).
(3) Section 7213 (relating to relief of contrac-
tors and their employees from losses by enemy ac-
tion).
(4) Section 7230 (relating to sale of degaussing
equipment).
(5) Section 7296 (relating to availability of ap-
propriations for other purposes).
(6) Section 7298 (relating to conversion of com-
batants and auxiliaries).
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(7) Section 7301 (relating to estimates required
for bids on construction).
(8) Section 7310 (relating to constructing com-
batant vessels).
(9) Chapter 635 (relating to naval aircraft).
(10) Section 7366 (relating to limitation on ap-
propriations for naval salvage facilities).
(b) REVISION AND STREAMLINING OF CERTAIN PRO-
VISIONS RELATING TO NAVAL VESSELS.—Chapter 633 of
such title is amended by striking out sections 7304, 7305,
7306, 7307, 7308, and 7309 and inserting in lieu thereof
the following:
‘‘§ 7304. Examination of vessels; striking of vessels
from Naval Vessel Register
‘‘(a) BOARDS OF OFFICERS TO EXAMINE NAVAL
VESSELS.—The Secretary of the Navy shall designate
boards of naval officers to examine naval vessels, including
unfinished vessels, for the purpose of making a rec-
ommendation to the Secretary as to which vessels, if any,
should be stricken from the Naval Vessel Register. Each
vessel shall be examined at least once every three years
if practicable.
‘‘(b) ACTIONS BY BOARD.—A board designated under
subsection (a) shall submit to the Secretary in writing its
recommendations as to which vessels, if any, among those
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it examined should be stricken from the Naval Vessel Reg-
ister.
‘‘(c) ACTION BY SECRETARY.—If the Secretary con-
curs with a recommendation by a board that a vessel
should be stricken from the Naval Vessel Register, the
Secretary shall strike the name of that vessel from the
Naval Vessel Register.
‘‘§ 7305. Vessels stricken from Naval Vessel Register:
sale
‘‘(a) APPRAISAL
OF
VESSELS
STRICKEN
FROM
NAVAL VESSEL REGISTER.—The Secretary of the Navy
shall appraise each vessel stricken from the Naval Vessel
Register under section 7304 of this title.
‘‘(b) AUTHORITY TO SELL VESSEL.—If the Sec-
retary considers that the sale of the vessel is in the na-
tional interest, the Secretary may sell the vessel. Any such
sale shall be in accordance with regulations prescribed by
the Secretary for the purposes of this section.
‘‘(c) PROCEDURES FOR SALE.—(1) A vessel stricken
from the Naval Vessel Register and not subject to disposal
under any other law may be sold under this section. In
such a case, the Secretary may sell the vessel to the high-
est acceptable bidder, regardless of the appraised value of
the vessel, after the vessel is publicly advertised for sale
for a period of not less than 30 days.
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‘‘(2) If the Secretary determines that the bid prices
for a vessel received after advertising under paragraph (1)
are not acceptable and that readvertising will serve no use-
ful purpose, the Secretary may sell the vessel by negotia-
tion to the highest acceptable bidder if—
‘‘(A) each responsible bidder has been notified
of intent to negotiate and has been given a reason-
able opportunity to negotiate; and
‘‘(B) the negotiated price is—
‘‘(i) higher than the highest rejected price
of any responsible bidder; or
‘‘(ii) reasonable and in the national inter-
est.
‘‘(d) APPLICABILITY.—This section does not apply to
a vessel the disposal of which is authorized by the Federal
Property and Administrative Services Act of 1949 (40
U.S.C. 471 et seq.), if it is to be disposed of under that
Act.
‘‘§ 7306. Vessels stricken from Naval Vessel Register;
captured vessels: transfer by gift or oth-
erwise
‘‘(a) AUTHORITY TO MAKE TRANSFER.—Subject to
subsections (c) and (d) of section 602 of the Federal Prop-
erty and Administrative Services Act of 1949 (40 U.S.C.
474), the Secretary of the Navy may transfer, by gift or
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otherwise, any vessel stricken from the Naval Vessel Reg-
ister, or any captured vessel, to—
‘‘(1) any State, Commonwealth, or possession of
the United States or any municipal corporation or
political subdivision thereof;
‘‘(2) the District of Columbia; or
‘‘(3) any not-for-profit or nonprofit entity.
‘‘(b) VESSEL TO BE MAINTAINED IN CONDITION
SATISFACTORY TO SECRETARY.—An agreement for the
transfer of a vessel under subsection (a) shall include a
requirement that the transferee will maintain the vessel
in a condition satisfactory to the Secretary.
‘‘(c) TRANSFERS TO BE AT NO COST TO UNITED
STATES.—Any transfer of a vessel under this section shall
be made at no cost to the United States.
‘‘(d) NOTICE TO CONGRESS.—(1) No transfer under
this section takes effect unless—
‘‘(A) notice of the proposal to make the transfer
is sent to Congress; and
‘‘(B) 60 calendar days of continuous session of
Congress have expired after the notice is sent to
Congress.
‘‘(2) For purposes of paragraph (1)(B), the continu-
ity of a session of Congress is broken only by an adjourn-
ment of the Congress sine die, and the days on which ei-
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ther House is not in session because of an adjournment
of more than 3 days to a day certain are excluded in the
computation of such 60-day period.
‘‘§ 7306a. Vessels stricken from Naval Vessel Register:
use for experimental purposes
‘‘(a) AUTHORITY.—The Secretary of the Navy may
use for experimental purposes any vessel stricken from the
Naval Vessel Register.
‘‘(b) STRIPPING VESSEL.—(1) Before using a vessel
for an experimental purpose pursuant to subsection (a),
the Secretary shall carry out such stripping of the vessel
as is practicable.
‘‘(2) Amounts received as proceeds from the stripping
of a vessel pursuant to this subsection shall be credited
to appropriations available for the procurement of scrap-
ping services needed for such stripping. Amounts received
which are in excess of amounts needed for procuring such
services shall be deposited into the general fund of the
Treasury.
‘‘§ 7307. Disposals to foreign nations
‘‘(a) LARGER OR NEWER VESSELS.—A naval vessel
that is in excess of 3,000 tons or that is less than 20 years
of age may not be disposed of to another nation (whether
by sale, lease, grant, loan, barter, transfer, or otherwise)
unless the disposition of that vessel is approved by law
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enacted after August 5, 1974. A lease or loan of such a
vessel under such a law may be made only in accordance
with the provisions of chapter 6 of the Arms Export Con-
trol Act (22 U.S.C. 2796 et seq.) or chapter 2 of part
II of the Foreign Assistance Act of 1961 (22 U.S.C. 2311
et seq.).
‘‘(b) OTHER VESSELS.—(1) A naval vessel not sub-
ject to subsection (a) may be disposed of to another nation
(whether by sale, lease, grant, loan, barter, transfer, or
otherwise) in accordance with applicable provisions of law,
but only after—
‘‘(A) the Secretary of the Navy notifies the
Committees on Armed Services of the Senate and
House of Representatives in writing of the proposed
disposition; and
‘‘(B) 30 days of continuous session of Congress
have expired following the date on which such notice
was transmitted to those committees.
‘‘(2) For purposes of paragraph (1)(B), the continu-
ity of a session of Congress is broken only by an adjourn-
ment of the Congress sine die, and the days on which ei-
ther House is not in session because of an adjournment
of more than 3 days to a day certain are excluded in the
computation of such 30-day period.
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‘‘§ 7308. Chief of Naval Operations: certification re-
quired for disposal of combatant vessels
‘‘Notwithstanding any other provision of law, no com-
batant vessel of the Navy may be sold, transferred, or oth-
erwise disposed of, unless the Chief of Naval Operations
certifies that it is not essential to the defense of the United
States.
‘‘§ 7309. Construction of vessels in foreign shipyards:
prohibition
‘‘(a) PROHIBITION.—Except as provided in sub-
section (b), no vessel to be constructed for any of the
armed forces, and no major component of the hull or su-
perstructure of any such vessel, may be constructed in a
foreign shipyard.
‘‘(b) PRESIDENTIAL WAIVER FOR NATIONAL SECU-
RITY INTEREST.—(1) The President may authorize excep-
tions to the prohibition in subsection (a) when the Presi-
dent determines that it is in the national security interest
of the United States to do so.
‘‘(2) The President shall transmit notice to Congress
of any such determination, and no contract may be made
pursuant to the exception authorized until the end of the
30-day period beginning on the date on which the notice
of the determination is received by Congress.
‘‘(c) EXCEPTION FOR INFLATABLE BOATS.—An in-
flatable boat or a rigid inflatable boat, as defined by the
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Secretary of the Navy, is not a vessel for the purpose of
the restriction in subsection (a).
‘‘§ 7310. Overhaul, repair, etc. of vessels in foreign
shipyards: restrictions
‘‘(a) VESSELS
WITH
HOMEPORT
IN
UNITED
STATES.—A naval vessel (or any other vessel under the
jurisdiction of the Secretary of the Navy) the homeport
of which is in the United States may not be overhauled,
repaired, or maintained in a shipyard outside the United
States, other than in the case of voyage repairs.
‘‘(b) VESSEL CHANGING HOMEPORTS.—In the case
of a naval vessel the homeport of which is not in the Unit-
ed States (or a territory of the United States), the Sec-
retary of the Navy may not during the 15-month period
preceding the planned reassignment of the vessel to a
homeport in the United States (or a territory of the Unit-
ed States) begin any work for the overhaul, repair, or
maintenance of the vessel that is scheduled to be for a
period of more than six months.’’.
SEC. 815. ADDITIONAL AUTHORITY TO CONTRACT FOR
FUEL STORAGE AND MANAGEMENT.
(a) ADDITIONAL AUTHORITY.—Section 2388 of title
10, United States Code, is amended—
(1) in subsection (a)—
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(A) by striking out ‘‘The’’ and inserting
‘‘The Secretary of Defense or the’’; and
(B) by striking out ‘‘the storage, handling,
and distribution of liquid fuels’’ and inserting
in lieu thereof the following: ‘‘storage facilities
for, or the storage, handling, or distribution of,
liquid fuels or natural gas. Any such contract
may be entered into’’;
(2) by striking out subsection (b); and
(3) by redesignating subsection (c) as sub-
section (b).
(b) SECTION HEADING AMENDMENT.—The heading
of section 2388 of such title is amended to read as follows:
‘‘§ 2388. Liquid fuels and natural gas: contracts for
storage, handling, or distribution’’.
SEC. 816. ADDITIONAL AUTHORITY RELATING TO THE AC-
QUISITION OF PETROLEUM.
Section 2404 of title 10, United States Code, is
amended—
(1) in subsection (c)—
(A) by inserting ‘‘or petroleum-related
services’’ after ‘‘petroleum’’ the first place it
appears; and
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(B) by striking out ‘‘petroleum derivatives’’
and inserting in lieu thereof ‘‘petroleum-related
services’’;
(2) in subsection (d)—
(A) by striking out ‘‘and products’’ and in-
serting in lieu thereof ‘‘products’’; and
(B) by striking out the period at the end
and inserting in lieu thereof ‘‘, and natural
gas.’’; and
(3) by adding at the end the following new sub-
section:
‘‘(e) The Secretary of Defense may sell petroleum
that is in inventory if the Secretary determines that the
sale would be in the public interest. Amounts received
from such a sale shall be credited to appropriations avail-
able for the acquisition of petroleum. Amounts so credited
shall be available for obligation for the same period as the
appropriations to which the amounts are credited.’’.
SEC. 817. SIMPLIFIED ACQUISITION THRESHOLD.
(a) SIMPLIFIED ACQUISITION THRESHOLD.—Section
2302 of title 10, United States Code, is amended by add-
ing at the end the following new paragraph:
‘‘(8) The term ‘simplified acquisition threshold’
means $100,000, adjusted on October 1 of each year
divisible by 5 to the amount equal to $100,000 in
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constant fiscal year 1990 dollars (rounded to the
nearest $1,000).’’.
(b) CONFORMING AMENDMENTS.—(1) Title 10, Unit-
ed States Code, is amended by striking out ‘‘small pur-
chase threshold’’ each place it appears other than sections
2410i(b)(1), 2304(g)(2), and 2304(g)(3) and inserting in
lieu thereof ‘‘simplified acquisition threshold’’.
(2) Section 2304(g)(1) is amended by adding at the
end the following: ‘‘Any such simplified procedures shall
maintain the notice requirements under section 18 of the
Office of Federal Procurement Policy Act (41 U.S.C. 416)
and subsections (e), (f), and (g) of section 8 of the Small
Business Act (15 U.S.C. 637) for any purchase or con-
tract for an amount in excess of the small purchase
threshold, as that term is used in those Acts.’’.
(3) Section 2384(b) of title 10, United States Code,
is amended—
(A) in paragraph (1), by inserting ‘‘or in para-
graph (3)’’ after ‘‘in paragraph (2)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(3) Paragraph (1) does not apply to a contract in
an amount equal to or less than the simplified acquisition
threshold (as defined in section 2302(7) of this title).’’.
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(4) Section 2397c(a)(1) of title 10, United States
Code, is amended by striking out ‘‘in excess of $100,000’’
and inserting in lieu thereof ‘‘in an amount in excess of
the simplified acquisition threshold (as defined in section
2302(7) of this title)’’.
(5) Section 2408(a) of title 10, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(4) In this subsection, the term ‘defense contract’
means a contract in an amount in excess of the simplified
acquisition threshold (as defined in section 2302(7) of this
title).’’.
SEC. 
818. 
PROCUREMENT 
OF 
COMMERCIAL 
AND
NONDEVELOPMENTAL ITEMS.
(a) POLICY.—Section 2301(a) of title 10, United
States Code, is amended—
(1) by striking out ‘‘and’’ at the end of para-
graph (6);
(2) by striking out the period at the end of
paragraph (7) and inserting in lieu thereof a semi-
colon; and
(3) by adding at the end the following new
paragraphs:
‘‘(8) to the maximum extent practicable, and
consistent with the objectives set forth in section
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2501(c) of this title, the Department of Defense
shall acquire commercial items to meet its needs and
shall require prime contractors and subcontractors,
at all levels, which furnish other than commercial
items, to incorporate to the maximum extent prac-
ticable commercial items as components of items
being supplied to the Department; and
‘‘(9) when commercial items and components
are not available, practicable, or cost effective, the
Department shall acquire, and shall require prime
contractors and subcontractors to incorporate, other
nondevelopmental items and components to the max-
imum extent practicable.’’.
(b) COMMERCIAL ITEM DEFINED.—Section 2302 of
title 10, United States Code, as amended by section 817,
is further amended by adding at the end the following new
paragraph:
‘‘(8) The term ‘commercial item’ means any
item regularly used in the course of normal business
operations for other than Government purposes
that—
‘‘(A) has been sold, leased, or licensed to
the general public;
‘‘(B) has been offered for sale, lease, or li-
cense to the general public;
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‘‘(C) is not yet available in the commercial
marketplace, but will be available in time to
satisfy the delivery requirements under a Gov-
ernment solicitation; or
‘‘(D) is an item that, but for minor modi-
fications made to meet Government require-
ments, would satisfy the criteria set forth in
subparagraph (A), (B), or (C).’’.
(c) COST OR PRICING DATA.—Section 2306a(b) of
title 10, United States Code, is amended—
(1) by redesignating subparagraphs (A), (B),
and (C) of paragraph (1) as clauses (i), (ii), and
(iii), respectively;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(3) by inserting ‘‘(1)’’ before ‘‘This section need
not’’; and
(4) by adding at the end the following:
‘‘(2) This section does not apply to a contract or sub-
contract for commercial items unless the head of the agen-
cy determines that cost or pricing data are necessary for
the evaluation by the agency of the reasonableness of the
price of the contract or subcontract. In any case in which
the head of the agency requires such data to be submitted
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under this section, the head of the agency shall document
in writing the reasons for such requirement.’’.
(d) PROCUREMENT PLANNING.—(1) Subsection (a)
of section 2325 of title 10, United States Code, is amend-
ed by inserting ‘‘commercial or’’ before ‘‘nondevelopmental
items’’ each place it appears in paragraphs (2), (3), and
(4).
(2) The heading of section 2325 of such title is
amended to read as follows:
‘‘§ 2325. 
Preference 
for 
commercial 
and
nondevelopmental items’’.
(3) The table of sections at the beginning of chapter
137 of such title is amended by striking out the item relat-
ing to section 2325 and inserting in lieu thereof the follow-
ing:
‘‘2325. Preference for commercial and nondevelopmental items.’’.
(e) PROCUREMENT
OF COMMERCIAL ITEMS.—(1)
Chapter 137 of title 10, United States Code, is amended
by inserting after section 2325 the following new section:
‘‘§ 2325a. Procurement of commercial items
‘‘(a) REGULATIONS; UNIFORM TERMS AND CONDI-
TIONS.—(1) The Secretary of Defense shall prescribe reg-
ulations implementing this section and paragraphs (8) and
(9) of section 2301(a) of this title. The regulations shall
contain a set or sets of uniform terms and conditions to
be included in contracts for the acquisition of commercial
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end items. Such uniform terms and conditions shall be
modeled to the maximum extent practicable on commercial
terms and conditions and shall include only those contract
clauses, including clauses requiring terms and conditions
to be flowed down to subcontractors, that are—
‘‘(A) required to implement provisions of law
applicable to commercial item acquisitions;
‘‘(B) essential for the protection of the Federal
Government’s interest in an acquisition; or
‘‘(C) determined by the Secretary to be consist-
ent with standard commercial practice.
‘‘(2) The regulations prescribed under paragraph (1)
shall provide that prime contractors and subcontractors
furnishing other than commercial items as end items or
components may not require suppliers furnishing commer-
cial items as components to comply with any clause, term,
or condition except those—
‘‘(A) required to implement provisions of law
applicable to subcontractors furnishing commercial
items;
‘‘(B) essential for the protection of the prime
contractor or higher tier subcontractor in a particu-
lar acquisition; or
‘‘(C) determined to be consistent with standard
commercial practice.
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‘‘(b) DEFINITIONS.—In this section:
‘‘(1) The term ‘component’ means any item
supplied to the Government as part of an end item
or of another component.
‘‘(2) The term ‘nondevelopmental item’ has the
meaning given that term in section 2325 of this
title.
‘‘(c) EXEMPTIONS FROM PRESENT LAW.—Procure-
ments of commercial items shall not be subject to the fol-
lowing provisions of this title:
‘‘(1) Section 2324.
‘‘(2) Section 2384.
‘‘(3) Section 2393.
‘‘(4) Section 2397.
‘‘(5) Section 2397a.
‘‘(6) Section 2397b.
‘‘(7) Section 2397c.
‘‘(8) Section 2402.
‘‘(9) Section 2406.
‘‘(10) Section 2408.
‘‘(d) SET-ASIDES PRESERVED.—Nothing in this sec-
tion shall prevent the Secretary of Defense from restrict-
ing the award of prime contracts for commercial items to
any source as may from time to time be prescribed or per-
mitted by law.
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‘‘(e) RESTRICTION
TO FIRM, FIXED PRICE CON-
TRACTS.—Except where commercial items are to be pro-
vided as a portion of a contract that also provides for the
delivery of other than commercial items, only firm, fixed
price contracts or fixed price contracts with economic price
adjustment provisions shall be used to acquire commercial
end items under this section.’’.
(2) The table of sections at the beginning of chapter
137 of such title is amended by inserting after the item
relating to section 2325 the following new item:
‘‘2325a. Procurement of commercial items.’’.
SEC. 819. TECHNICAL AND CLERICAL AMENDMENTS.
(a) AMENDMENTS TO TABLES OF SECTIONS.—The
table of sections at the beginning of each chapter of title
10, United States Code, listed in the following paragraphs
is amended by striking out the items relating to the sec-
tions listed in such paragraphs:
(1) Chapter 137: section 2317.
(2) Chapter 139: section 2362.
(3) Chapter 141: sections 2384a and 2389.
(4) Chapter 144: sections 2436 and 2437.
(5) Chapter 433: sections 4531, 4534, 4535,
4537, 4538, and 4541.
(6) Chapter 631: sections 7201, 7210, 7213,
and 7230.
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(7) Chapter 633: sections 7296, 7298, and
7301.
(8) Chapter 637: section 7366.
(9) Chapter 933: sections 9531, 9534, 9535,
9537, 9538, and 9541.
(b) AMENDMENTS TO TABLES OF CHAPTERS.—
(1) The table of chapters at the beginning of
subtitle A, and part IV of subtitle A, of title 10,
United States Code, are amended by striking out the
item relating to chapter 135.
(2) The table of chapters at the beginning of
subtitle B, and part IV of subtitle B, of such title
are amended by striking out the item relating to
chapter 431.
(3) The table of chapters at the beginning of
subtitle C, and part IV of subtitle C, of such title
are amended by striking out the item relating to
chapter 635.
(c) ADDITIONAL AMENDMENTS.—
(1) The table of sections at the beginning of
subchapter I of chapter 11 of title 10, United States
Code, is amended by inserting after the item relating
to section 278 the following new item:
‘‘279. Authority to accept certain gratuitous services of officers’’.
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(2) The table of sections at the beginning of
chapter 139 of such title is amended by adding at
the end the following new item:
‘‘2373. Procurement for experimental purposes’’.
(3) The table of sections at the beginning of
chapter 141 of such title is amended by striking out
the item relating to section 2388 and inserting in
lieu thereof the following:
‘‘2388. Liquid fuels and natural gas: contracts for storage, handling, or distribu-
tion.’’.
(4) The table of sections at the beginning of
subchapter V of chapter 148 of such title is amend-
ed by adding at the end the following new items:
‘‘2538. Industrial mobilization: orders; priorities; possession of manufacturing
plants; violations
‘‘2539. Industrial mobilization: plants; lists
‘‘2540. Industrial mobilization: Board on Mobilization of Industries Essential for
Military Preparedness
‘‘2541. Availability of samples, drawings, information, equipment, materials, and
certain services.’’.
(5) Chapter 431 of such title is amended by
striking out the chapter heading and the table of
sections.
(6) The table of sections at the beginning of
chapter 633 of such title is amended by striking out
the items relating to sections 7304, 7305, 7306,
7307, 7308, 7309, and 7310 and inserting in lieu
thereof the following:
‘‘7304. Examination of vessels; striking of vessels from Naval Vessel Register.
‘‘7305. Vessels stricken from Naval Vessel Register: sale.
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‘‘7306. Vessels stricken from Naval Vessel Register; captured vessels: transfer
by gift or otherwise.
‘‘7306a. Vessels stricken from Naval Vessel Register: use for experimental pur-
poses.
‘‘7307. Disposals to foreign nations.
‘‘7308. Chief of Naval Operations: certification required for disposal of combat-
ant vessels.
‘‘7309. Construction of vessels in foreign shipyards: prohibition.
‘‘7310. Overhaul, repair, etc. of vessels in foreign shipyards: restrictions.’’.
(7)(A) Chapter 931 of such title is amended—
(i) by striking out the table of sections for
subchapter I;
(ii) by striking out the headings for sub-
chapters I and II;
(iii) by striking out the table of sub-
chapters; and
(iv) by amending the chapter heading to
read as follows:
‘‘CHAPTER 931—CIVIL RESERVE AIR FLEET’’.
(B) The table of chapters at the beginning of
subtitle D, and part IV of subtitle D, of such title
are amended by striking out the items relating to
chapter 931 and inserting in lieu thereof the follow-
ing:
‘‘931. Civil Reserve Air Fleet ......................................................... 9511’’.
(d) CROSS-REFERENCE AMENDMENTS.—(1) Section
505(a)(2)(B)(i) of the National Security Act of 1947 (50
U.S.C. 415(a)(2)(B)(i)) is amended by striking out ‘‘sec-
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tion 7307(b)(1)’’ and inserting in lieu thereof ‘‘section
7307(a)’’.
(2) Section 2366(d) of title 10, United States Code,
is amended by striking out ‘‘to the defense committees of
Congress (as defined in section 2362(e)(3) of this title).’’
and inserting in lieu thereof ‘‘to the Committees on Armed
Services and on Appropriations of the Senate and House
of Representatives.’’.
Subtitle C—Other Matters
SEC. 821. REPORTS ON CONTRACT BUNDLING.
(a) REPORTS.—Not later than April 1, 1994, the Sec-
retary of Defense and the Comptroller General shall each
submit to the Committees on Armed Services and on
Small Business of the Senate and House of Representa-
tives a report on the effects of contract bundling on the
participation by small business concerns and small dis-
advantaged business concerns in procurement by the De-
partment of Defense. The report shall contain the findings
and conclusions of the Secretary or the Comptroller Gen-
eral, as the case may be, regarding such effects, based on
the data collected under subsection (b). The report also
shall contain such recommendations for administrative or
legislative action as the Secretary or Comptroller General
considers appropriate to maintain and increase participa-
tion by small business concerns and small disadvantaged
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business concerns in procurement by the Department of
Defense.
(b) DATA COLLECTION.—For purposes of carrying
out the report requirement of subsection (a), the Secretary
of Defense shall collect data on the effect of contract bun-
dling on the participation by small business concerns and
small disadvantaged business concerns in procurement by
the Department of Defense. At a minimum, the Secretary
shall collect data on the following:
(1) The number and types of bundled contracts
awarded during fiscal years 1992 and 1993 and ex-
pected to be awarded during fiscal year 1994, to-
gether with the reasons for the bundling of such
contracts.
(2) The cost effectiveness of bundling such con-
tracts compared to awarding the contracts in sepa-
rate, smaller contracts.
(3) The number of smaller contracts that would
have been awarded if such contracts were not bun-
dled, and the types of contractors (such as small
business concerns and small disadvantaged business
concerns) that could have been expected to perform
the smaller contracts.
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(4) The extent to which small businesses and
small disadvantaged businesses participate as sub-
contractors on bundled contracts.
(c) TRANSMISSION OF DATA TO COMPTROLLER GEN-
ERAL.—Not later than February 1, 1994, the Secretary
of Defense shall transmit to the Comptroller General a
copy of the data collected under subsection (b) for use by
the Comptroller General in carrying out the report re-
quirement of subsection (a).
(d) DEFINITION.—For purposes of this section, the
term ‘‘contract bundling’’ means the consolidation of two
or more requirements, descriptions, specifications, line
items, or statements of work that individually were or
could be performed by a small business concern, resulting
in a contract opportunity for supplies, services, or con-
struction that may be unsuitable for award to a small
business concern due to—
(1) the diversity and size of the elements of per-
formance specified;
(2) the aggregate dollar value of the anticipated
award;
(3) the geographical dispersion of the contract
performance sites; or
(4) any combination of paragraphs (1), (2), and
(3).
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SEC. 822. PROHIBITION ON COMPETITION BETWEEN DEPOT
MAINTENANCE ACTIVITIES AND SMALL BUSI-
NESSES FOR CERTAIN MAINTENANCE CON-
TRACTS.
(a) IN GENERAL.—(1) Chapter 137 of title 10, Unit-
ed States Code, is amended by inserting after section 2304
the following new section:
‘‘§ 2304a. Contracts: prohibition on competition be-
tween Department of Defense and small
businesses and certain other entities
‘‘(a) EXCLUSION.—In any case in which the Sec-
retary of Defense plans to use competitive procedures for
a procurement, if the procurement is to be conducted as
described in subsection (b), then the Secretary shall ex-
clude the Department of Defense from competing in the
procurement.
‘‘(b) PROCUREMENT DESCRIPTION.—The require-
ment to exclude the Department of Defense under sub-
section (a) applies in the case of a procurement to be con-
ducted by excluding from competition entities in the pri-
vate sector other than—
‘‘(1) small business concerns in furtherance of
section 8 or 15 of the Small Business Act (15
U.S.C. 637 or 644); or
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‘‘(2) entities described in subsection (a)(1) of
section 2323 of this title in furtherance of the goal
specified in that subsection.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2304 the following new item:
‘‘2304a. Contracts: prohibition on competition between Department of Defense
and small businesses and certain other entities.’’.
(b) EFFECTIVE DATE.—Section 2304a of title 10,
United States Code, as added by subsection (a), shall take
effect on the date of the enactment of this Act.
SEC. 823. CLARIFICATION OF REQUIREMENT FOR DOMES-
TIC MANUFACTURE OF PROPELLERS FOR
SHIPS FUNDED UNDER THE FAST SEALIFT
PROGRAM.
Section 1424(b) of Public Law 101–510 (10 U.S.C.
7291 note) is amended—
(1) in paragraph (6), by striking out ‘‘para-
graph (5)’’ and inserting in lieu thereof ‘‘paragraph
(6)’’;
(2) by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively; and
(3) by adding after paragraph (4) the following
new paragraph (5):
‘‘(5) The propellers for vessels constructed
under the program shall incorporate only castings
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poured and finished in the United States and forg-
ings manufactured in the United States. The Sec-
retary of Defense may waive the requirement of this
paragraph if adhering to the requirement would re-
sult in the existence of only one United States
source for such castings and forgings.’’.
SEC. 824. PILOT PROGRAM TO IMPROVE PRICING POLICIES
FOR USE OF MAJOR RANGE AND TEST FACIL-
ITY INSTALLATIONS OF THE AIR FORCE.
(a) PILOT PROGRAM TO ESTABLISH COMPETITIVE
PRICES.—(1) Chapter 949 of title 10, United States Code,
is amended by inserting after section 9781 the following
new section:
‘‘§ 9782. Use of test and evaluation installations by
commercial entities
‘‘(a) CONTRACT AUTHORITY.—The Secretary of the
Air Force, in consultation with the Secretary of Defense,
may enter into contracts with commercial entities that de-
sire to conduct commercial test and evaluation activities
at a Major Range and Test Facility Installation under the
jurisdiction of the Secretary.
‘‘(b) TERMINATION OR LIMITATION OF CONTRACT
UNDER CERTAIN CIRCUMSTANCES.—A contract entered
into under subsection (a) shall contain a provision that
the installation commander may terminate, prohibit, or
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suspend immediately any commercial test or evaluation ac-
tivity to be conducted at the Major Range and Test Facil-
ity Installation under the contract if the installation com-
mander certifies in writing that the test or evaluation ac-
tivity is or would be detrimental—
‘‘(1) to the public health and safety;
‘‘(2) to property (either public or private); or
‘‘(3) to any national security interest or foreign
policy interest of the United States.
‘‘(c) CONTRACT PRICE.—The installation commander
shall require a commercial entity using a Major Range and
Test Facility Installation under a contract entered into
under subsection (a) to reimburse the installation for all
direct costs associated with the test and evaluation activi-
ties conducted by the commercial entity under the con-
tract. In addition, the contract may require the commer-
cial entity to reimburse the installation for such indirect
costs related to the use of the installation as the installa-
tion commander considers to be appropriate and competi-
tive.
‘‘(d) RETENTION OF FUNDS COLLECTED FROM COM-
MERCIAL USERS.—Amounts collected under subsection (c)
from a commercial entity conducting test and evaluation
activities at a Major Range and Test Facility Installation
shall be credited to the appropriation accounts under
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which the costs associated with the test and evaluation ac-
tivities of the commercial entity were incurred.
‘‘(e) REGULATIONS
AND LIMITATIONS.—The Sec-
retary of the Air Force, in consultation with the Secretary
of Defense, shall prescribe regulations to carry out this
section. The authority of installation commanders under
subsections (b) and (c) shall be subject to the authority,
direction, and control of the Secretary of the Air Force.
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘Major Range and Test Facility
Installation’ means a test and evaluation installation
under the jurisdiction of the Secretary of the Air
Force and designated as such by the Secretary.
‘‘(2) The term ‘direct costs’ includes the cost
of—
‘‘(A) labor, material, facilities, utilities,
equipment, supplies, and any other resources
damaged or consumed during the test or eval-
uation activities or maintained for a particular
commercial entity; and
‘‘(B) construction specifically performed
for the commercial entity to conduct test and
evaluation activities.
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‘‘(3) The term ‘installation commander’ means
the commander of a Major Range and Test Facility
Installation.
‘‘(g) TERMINATION OF AUTHORITY.—The authority
provided to the Secretary of the Air Force by subsection
(a) shall terminate on September 30, 1998.
‘‘(h) REPORT.—Not later than January 1, 1999, the
Secretary of the Air Force shall submit a report to the
Secretary of Defense and Congress describing the number
and purposes of contracts entered into under subsection
(a) and evaluating the success of this section in opening
Major Range and Test Facility Installations to commercial
test and evaluation activities.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item related to section 9781 the following new
item:
‘‘9782. Use of test and evaluation installations by commercial entities.’’.
SEC. 825. COMPLIANCE WITH BUY AMERICAN ACT.
No funds authorized pursuant to this Act may be ex-
pended by an entity unless the entity agrees that in ex-
pending the assistance the entity will comply with sections
2 through 4 of the Act of March 3, 1933 (41 U.S.C. 10a–
10c, popularly known as the ‘‘Buy American Act’’).
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SEC. 826. SENSE OF CONGRESS; REQUIREMENT REGARD-
ING NOTICE.
(a) PURCHASE
OF AMERICAN-MADE EQUIPMENT
AND PRODUCTS.—In the case of any equipment or prod-
ucts that may be authorized under this Act, it is the sense
of the Congress that entities receiving such assistance
should, in expending the assistance, purchase only Amer-
ican-made equipment and products.
(b) NOTICE
TO RECIPIENTS
OF ASSISTANCE.—In
providing financial assistance under this Act, the Sec-
retary of Defense shall provide to each recipient of the
assistance a notice describing the statement made in sub-
section (a) by the Congress.
SEC. 827. PROHIBITION OF CONTRACTS.
If it has been finally determined by a court or Federal
agency that any person intentionally affixed a fraudulent
label bearing a ‘‘Made in America’’ inscription, or any in-
scription with the same meaning, to any product sold in
or shipped to the United States, that was not made in
the United States, such person shall be ineligible to receive
any contract or subcontract made with funds provided
pursuant to this Act, pursuant to the debarment, suspen-
sion, and ineligibility procedures described in section
9.400 through 9.409 of title 48, Code of Federal Regula-
tions.
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SEC. 828. RECIPROCITY.
(a) GENERAL RULE.—Except as provided in sub-
section (b), no contract or subcontract may be made with
funds authorized under this Act to a company organized
under the laws of a foreign country unless the Adminis-
trator finds that such country affords comparable oppor-
tunities to companies organized under the laws of the
United States.
(b) EXCEPTION.—(1) The Administrator may waive
the rule stated under subsection (a) if the products or
services required are not reasonably available from compa-
nies organized under the laws of the United States. Any
such waiver shall be reported to the Congress.
(2) Subsection (a) shall not apply to the extent that
to do so would violate the General Agreement on Tariffs
and Trade or any other international agreement to which
the United States is a party.
SEC. 829. CLARIFICATION OF EXCLUSION OF MILITARY AR-
CHITECTURAL 
AND 
ENGINEERING 
CON-
TRACTS UNDER SMALL BUSINESS COMPETI-
TIVENESS DEMONSTRATION PROGRAM.
(a) CLARIFICATION OF EXCLUSION.—Section 717(d)
of the Small Business Competitiveness Demonstration
Program Act of 1988 (title VII of Public Law 100–656)
is amended by striking out ‘‘and such contract was’’ and
inserting in lieu thereof ‘‘but only if such contracts were’’.
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(b) CLARIFICATION OF APPLICABILITY OF FREEZE
ON NUMERICAL SIZE STANDARD.—Section 732 of such
Act (15 U.S.C. 632 note) is amended by adding at the
end the following: ‘‘As provided in section 717(d), the pre-
ceding sentence does not apply to architectural and engi-
neering services assigned to standard industrial classifica-
tion code 8711 and performed under contracts awarded
under the qualification-based selection procedures re-
quired by title IX of the Federal Property and Administra-
tive Services Act of 1949 (40 U.S.C. 541 et seq.)’’.
(c) REQUIREMENT TO LIFT FREEZE ON NUMERICAL
SIZE STANDARD
FOR MILITARY ARCHITECTURAL
AND
ENGINEERING SERVICES CONTRACTS.—Not later than 60
days after the date of the enactment of this Act, the Ad-
ministrator of the Small Business Administration shall re-
move any numerical size standard pertaining to contract
awards assigned to standard industrial classification code
8711 that are made by the Department of Defense, in con-
formance with section 732 of the Small Business Competi-
tiveness Demonstration Program Act of 1988 (15 U.S.C.
632 note), as amended by subsection (b).
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SEC. 830. AUTHORITY TO DISPOSE OF EQUIPMENT WHOSE
OPERATION AND SUPPORT COSTS EXCEED
COSTS 
OF 
PROCURING 
REPLACEMENT
EQUIPMENT.
(a) AUTHORITY.—(1) Chapter 433 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 4543. Disposal of property: authority to dispose of
certain equipment
‘‘(a) AUTHORITY.—The Secretary of the Army may
dispose of equipment that—
‘‘(1) at the discretion of the Secretary, is need-
ed, but whose continued operation and support costs
exceed costs of procuring approved replacement
equipment; or
‘‘(2) is a major end item and still has commer-
cial utility, such as trucks, trailers, and communica-
tions equipment.
‘‘(b) READINESS REQUIREMENTS.—In disposing of
equipment under this section, the Secretary shall not com-
promise the readiness requirements of the Army.
‘‘(c) SENSE OF CONGRESS REGARDING PROCURE-
MENT OF REPLACEMENT EQUIPMENT.—It is the sense of
Congress that the Secretary of the Army should make
every effort to increase the procurement of equipment of
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the type needed to replace the equipment disposed of
under the authority provided by this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘4543. Disposal of property: authority to dispose of certain equipment.’’.
SEC. 831. REPORTS BY DEFENSE CONTRACTORS OF DEAL-
INGS WITH TERRORIST COUNTRIES.
(a) REPORT REQUIREMENT.—Whenever the Sec-
retary of Defense proposes to enter into a contract with
any person for an amount in excess of $500,000 for the
provision of goods or services to the Department of De-
fense, the Secretary shall require that person—
(1) before entering into the contract, to report
to the Secretary each commercial transaction which
that person has conducted with any terrorist country
during the preceding three years; and
(2) to report to the Secretary each commercial
transaction which that person conducts during the
course of the contract (but not after the date speci-
fied in subsection (f)) with any terrorist country.
The requirement contained in paragraph (2) shall be in-
cluded in the contract with the Department of Defense.
(b) REGULATIONS.—The Secretary of Defense shall
issue such regulations as may be necessary to carry out
this section.
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(c) ANNUAL REPORT TO CONGRESS.—The Secretary
of Defense shall submit to the Congress each year a report
setting forth those persons conducting commercial trans-
actions with terrorist countries as included in the reports
made pursuant to subsection (a) during the preceding fis-
cal year, the terrorist countries with which those trans-
actions were conducted, and the nature of those trans-
actions.
(d) TERRORIST COUNTRY DEFINED.—A country
shall be considered to be a terrorist country for purposes
of a contract covered by this section if the Secretary of
State has determined pursuant to law, as of the date that
is 60 days before the date on which the contract is signed,
that the government of that country is a government that
has repeatedly provided support for acts of international
terrorism.
(e) EFFECTIVE DATE.—This section shall apply with
respect to contracts entered into after the end of the 60-
day period beginning on the date of the enactment of this
Act.
(f) TERMINATION.—This section expires on Septem-
ber 30, 1996.
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND
MANAGEMENT
Subtitle A—Office of the Secretary
of Defense
SEC. 901. ENHANCED POSITION FOR COMPTROLLER OF DE-
PARTMENT OF DEFENSE.
(a) IN GENERAL.—Chapter 4 of title 10, United
States Code, is amended—
(1) by redesignating sections 135, 136, 138,
139, 140, and 141 as sections 137, 138, 139, 140,
141, and 142, respectively; and
(2) by transferring section 137 (relating to the
Comptroller) so as to appear after section 134a, re-
designating that section as section 135, and amend-
ing that section by adding at the end the following
new subsection:
‘‘(d) The Comptroller takes precedence in the Depart-
ment of Defense after the Under Secretary of Defense for
Policy.’’.
(b) EXECUTIVE SCHEDULE III PAY LEVEL.—Section
5314 of title 5, United States Code, is amended by insert-
ing after the item relating to the Under Secretary of De-
fense for Policy the following:
‘‘Comptroller of the Department of Defense.’’.
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(c) CONFORMING AMENDMENT.—Subsection (d) of
section 138 of title 10, United States Code, as redesig-
nated by subsection (a), is amended by inserting ‘‘and
Comptroller’’ after ‘‘Under Secretaries of Defense’’.
SEC. 902. NEW POSITION OF UNDER SECRETARY OF DE-
FENSE FOR PERSONNEL AND READINESS.
(a) IN GENERAL.—Chapter 4 of title 10, United
States Code, is amended by inserting after section 135,
as transferred and redesignated by section 901(a), the fol-
lowing new section:
‘‘§ 136. Under Secretary of Defense for Personnel and
Readiness
‘‘(a) There is an Under Secretary of Defense for Per-
sonnel and Readiness, appointed from civilian life by the
President, by and with the consent of the Senate.
‘‘(b) Subject to the authority, direction, and control
of the Secretary of Defense, the Under Secretary of De-
fense for Personnel and Readiness shall perform such du-
ties and exercise such powers as the Secretary of Defense
may prescribe in the areas of military readiness, total
force management, military and civilian personnel require-
ments, military and civilian personnel training, military
and civilian family matters, exchange, commissary, and
nonappropriated fund activities, personnel requirements
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for weapons support, National Guard and reserve compo-
nents, and health affairs.
‘‘(c) The Under Secretary of Defense for Personnel
and Readiness takes precedence in the Department of De-
fense after the Comptroller.’’.
(b) EXECUTIVE SCHEDULE III PAY LEVEL.—Section
5314 of title 5, United States Code, is amended by insert-
ing after the item relating to the Comptroller of the De-
partment of Defense, as added by section 901(b), the fol-
lowing:
‘‘Under Secretary of Defense for Personnel and
Readiness.’’.
(c) OFFSETTING REDUCTION IN NUMBER OF ASSIST-
ANT SECRETARY
OF DEFENSE POSITIONS.—(1) Sub-
section (a) of section 138 of title 10, United States Code,
as redesignated by section 901(a), is amended by striking
out ‘‘eleven’’ and inserting in lieu thereof ‘‘ten’’.
(2) Section 5315 of title 5, United States Code, is
amended by striking out ‘‘Assistant Secretaries of Defense
(11)’’ and inserting in lieu thereof ‘‘Assistant Secretaries
of Defense (10)’’.
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SEC. 903. REDESIGNATION OF POSITIONS OF UNDER SEC-
RETARY AND DEPUTY UNDER SECRETARY OF
DEFENSE FOR ACQUISITION.
(a) REDESIGNATIONS.—The office of Under Sec-
retary of Defense for Acquisition in the Department of
Defense is hereby redesignated as Under Secretary of De-
fense for Acquisition and Technology. The office of Dep-
uty Under Secretary of Defense for Acquisition in the De-
partment of Defense is hereby redesignated as Deputy
Under Secretary of Defense for Acquisition and Tech-
nology.
(b) USD CHARTER AMENDMENTS.—(1) Section 133
of title 10, United States Code, is amended by striking
out ‘‘Under Secretary of Defense for Acquisition’’ in sub-
sections (a), (b), and (e)(1) and inserting in lieu thereof
‘‘Under Secretary of Defense for Acquisition and Tech-
nology’’.
(2) The heading for such section is amended to read
as follows:
‘‘§ 133. Under Secretary of Defense for Acquisition
and Technology’’.
(c) DUSD CHARTER AMENDMENTS.—(1) Section
133a of such title is amended by striking out ‘‘Deputy
Under Secretary of Defense for Acquisition’’ in sub-
sections (a) and (b) and inserting in lieu thereof ‘‘Deputy
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Under Secretary of Defense for Acquisition and Tech-
nology’’.
(2) The heading for such section is amended to read
as follows:
‘‘§ 133a. Deputy Under Secretary of Defense for Ac-
quisition and Technology’’.
(d) CONFORMING AMENDMENTS TO TITLE 10, UNIT-
ED STATES CODE.—(1) The following sections of title 10,
United States Code, are amended by striking out ‘‘Under
Secretary of Defense for Acquisition’’ each place such
term appears (including section headings) and inserting
in lieu thereof ‘‘Under Secretary of Defense for Acquisi-
tion and Technology’’: sections 134(c), 137(b) (as redesig-
nated by section 901(a)), 139 (as redesignated by section
901(a)), 171(a)(3), 179(a), 1702, 1703, 1707(a), 1722,
1735(c), 1737(c), 1741(b), 1746(a), 1761(b), 1762(a),
1763, 2304(f), 2308(b), 2325(b), 2329, 2350a, 2369,
2399(b), 2435(b), 2438(c), 2523(a), and 2534(b).
(2) The item relating to section 1702 in the table of
sections at the beginning of subchapter I of chapter 87
of such title is amended to read as follows:
‘‘1702. Under Secretary of Defense for Acquisition and Technology: authorities
and responsibilities.’’.
(3) Section 171(a)(8) of such title is amended by
striking out ‘‘Deputy Under Secretary of Defense for Ac-
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quisition’’ and inserting in lieu thereof ‘‘Deputy Under
Secretary of Defense for Acquisition and Technology’’.
(e) CONFORMING AMENDMENTS TO TITLE 5, UNIT-
ED STATES CODE.—(1) Section 5313 of title 5, United
States Code, is amended by striking out ‘‘Under Secretary
of Defense for Acquisition’’ and inserting in lieu thereof
‘‘Under Secretary of Defense for Acquisition and Tech-
nology’’.
(2) Section 5314 of such title is amended by striking
out ‘‘Deputy Under Secretary of Defense for Acquisition’’
and inserting in lieu thereof ‘‘Deputy Under Secretary of
Defense for Acquisition and Technology’’.
(f) REFERENCES IN OTHER LAWS.—Any reference to
the Under Secretary of Defense for Acquisition or the
Deputy Under Secretary of Defense for Acquisition in any
provision of law other than title 10, United States Code,
or in any rule, regulation, or other paper of the United
States shall be treated as referring to the Under Secretary
of Defense for Acquisition and Technology or the Deputy
Under Secretary of Defense for Acquisition and Tech-
nology, respectively.
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SEC. 904. FURTHER CONFORMING AMENDMENTS TO CHAP-
TER 4 OF TITLE 10, UNITED STATES CODE.
(a) COMPOSITION OF OSD.—Subsection (b) of sec-
tion 131 of title 10, United States Code, is amended to
read as follows:
‘‘(b) The Office of the Secretary of Defense is com-
posed of the following:
‘‘(1) The Deputy Secretary of Defense.
‘‘(2) The Under Secretary of Defense for Ac-
quisition and Technology.
‘‘(3) The Under Secretary of Defense for Pol-
icy.
‘‘(4) The Comptroller.
‘‘(5) The Under Secretary of Defense for Per-
sonnel and Readiness.
‘‘(6) The Director of Defense Research and En-
gineering.
‘‘(7) The Assistant Secretaries of Defense.
‘‘(8) The Director of Operational Test and
Evaluation.
‘‘(9) The General Counsel of the Department of
Defense.
‘‘(10) The Inspector General of the Department
of Defense.
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‘‘(11) Such other offices and officials as may be
established by law or the Secretary of Defense may
establish or designate in the Office.’’.
(b) TABLE OF SECTIONS.—The table of sections at
the beginning of chapter 4 of such title is amended to read
as follows:
‘‘Sec.
‘‘131. Office of the Secretary of Defense.
‘‘132. Deputy Secretary of Defense.
‘‘133. Under Secretary of Defense for Acquisition and Technology.
‘‘133a. Deputy Under Secretary of Defense for Acquisition and Technology.
‘‘134. Under Secretary of Defense for Policy.
‘‘134a. Deputy Under Secretary of Defense for Policy.
‘‘135. Comptroller.
‘‘136. Under Secretary of Defense for Personnel and Readiness.
‘‘137. Director of Defense Research and Engineering.
‘‘138. Assistant Secretaries of Defense.
‘‘139. Director of Operational Test and Evaluation.
‘‘140. General Counsel.
‘‘141. Inspector General.
‘‘142. Assistant to the Secretary of Defense for Atomic Energy.’’.
SEC. 905. DIRECTOR OF OPERATIONAL TEST AND EVALUA-
TION.
Subsection (c) of section 139 of title 10, United
States Code, as redesignated by section 901(a)(1), is
amended—
(1) by striking out the first sentence;
(2) by striking out ‘‘Director of Defense Re-
search and Engineering’’ and inserting in lieu there-
of ‘‘Under Secretary of Defense for Acquisition and
Technology’’; and
(3) by striking out ‘‘research and development’’
and inserting in lieu thereof ‘‘acquisition’’.
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Subtitle B—Reserve Commands
SEC. 921. ARMY RESERVE COMMAND.
(a) ESTABLISHMENT AS A PERMANENT SEPARATE
ARMY COMMAND.—(1) Chapter 307 of title 10, United
States Code, as amended by section 519(a), is further
amended by inserting after section 3081 the following new
section:
‘‘§ 3082. Army Reserve command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Army an Army Reserve command, which shall be a
separate command of the Army. The Secretary of the
Army shall maintain that command with the advice and
assistance of the Chief of Staff of the Army.
‘‘(b) COMMANDER.—The Chief of Army Reserve is
the commander of the Army Reserve command. The com-
mander of the Army Reserve command reports directly to
the Chief of Staff of the Army.
‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the
Army shall assign to the Army Reserve command all
forces of the Army Reserve.
‘‘(d) ESTABLISHMENT
OF
RESPONSIBILITY.—(1)
The Chief of Staff of the Army shall establish standards,
evaluate units, validate units, and provide training assist-
ance for the Army Reserve in the areas of unit training,
readiness, and mobilization.
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‘‘(2) The Chief of Staff shall establish training doc-
trine, with associated tasks, conditions, and standards, for
individual and unit training and shall establish standards,
control of certification, and validation for all courses, in-
structors, and students for the Army Reserve.
‘‘(3) The commander of the Army Reserve command
shall be responsible for meeting the standards, and for
successfully complying with the evaluation, certification,
and validation requirements, established by the Chief of
Staff of the Army pursuant to paragraphs (1) and (2).’’.
(2) The table of sections at the beginning of such
chapter, as amended by section 519(b), is further amend-
ed by inserting after the item relating to section 3081 the
following new item:
‘‘3082. Army Reserve command.’’.
(b) CONFORMING REPEAL.—Section 903 of the Na-
tional Defense Authorization Act for Fiscal Year 1991
(Public Law 101–510; 104 Stat. 1620) (10 U.S.C. 3074
note) is repealed.
(c) TRANSITION PROVISION.—Not later than 90 days
after the date of the enactment of this Act, the Secretary
of the Army, in consultation with the Chief of Staff of
the Army, shall submit to the Committees on Armed Serv-
ices of the Senate and House of Representatives a report
on the plans of the Secretary of the Army for implementa-
tion of section 3082 of title 10, United States Code, as
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added by subsection (a). Such implementation shall begin
not later than 90 days after the date of the enactment
of this Act and shall be completed not later than one year
after such date.
SEC. 922. NAVAL RESERVE COMMAND.
(a) ESTABLISHMENT
AS PERMANENT SEPARATE
NAVAL COMMAND.—Chapter 519 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 5253. Naval Reserve command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Navy a Naval Reserve command, which shall be a sep-
arate command of the Navy. The Secretary of the Navy
shall maintain that command with the advice and assist-
ance of the Chief of Naval Operations.
‘‘(b) COMMANDER.—The Chief of Naval Reserve is
the commander of the Naval Reserve command. The com-
mander of the Naval Reserve command reports directly
to the Chief of Naval Operations.
‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the
Navy shall assign to the Naval Reserve command all forces
of the Naval Reserve other than those Naval Reserve
forces specifically assigned by the Secretary to the active
component of the Navy.
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‘‘(d) ESTABLISHMENT
OF
RESPONSIBILITY.—(1)
The Chief of Naval Operations shall establish standards,
evaluate units, validate units, and provide training assist-
ance for the Naval Reserve in the areas of unit training,
readiness, and mobilization.
‘‘(2) The Chief of Naval Operations shall establish
training doctrine, with associated tasks, conditions, and
standards, for individual and unit training and shall estab-
lish standards, control of certification, and validation for
all courses, instructors, and students for the Naval Re-
serve.
‘‘(3) The commander of the Naval Reserve command
shall be responsible for meeting the standards, and for
successfully complying with the evaluation, certification,
and validation requirements, established by the Chief of
Naval Operations pursuant to paragraphs (1) and (2).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘5253. Naval Reserve command.’’.
SEC. 923. MARINE CORPS RESERVE COMMAND.
(a) ESTABLISHMENT AS PERMANENT SEPARATE MA-
RINE CORPS COMMAND.—Chapter 519 of title 10, United
States Code (as amended by section 922(a)), is further
amended by adding at the end the following new section:
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‘‘§ 5254. Marine Corps Reserve command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Marine Corps a Marine Corps Reserve command,
which shall be a separate command of the Marine Corps.
The Secretary of the Navy shall maintain that command
with the advice and assistance of the Commandant of the
Marine Corps.
‘‘(b) COMMANDER.—The commander of the Marine
Corps Reserve command reports directly to the Com-
mandant of the Marine Corps.
‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the
Navy shall assign to the Marine Corps Reserve command
all forces of the Marine Corps Reserve.
‘‘(d) ESTABLISHMENT
OF
RESPONSIBILITY.—(1)
The Commandant shall establish standards, evaluate
units, validate units, and provide training assistance for
the Marine Corps Reserve in the areas of unit training,
readiness, and mobilization.
‘‘(2) The Commandant shall establish training doc-
trine, with associated tasks, conditions, and standards, for
individual and unit training and shall establish standards,
control of certification, and validation for all courses, in-
structors, and students for the Marine Corps Reserve.
‘‘(3) The commander of the Marine Corps Reserve
command shall be responsible for meeting the standards,
and for successfully complying with the evaluation, certifi-
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cation, and validation requirements, established by the
Commandant to paragraphs (1) and (2).’’.
(2) The table of sections at the beginning of such
chapter (as amended by section 925(b)) is amended by
adding at the end the following new item:
‘‘5254. United States Marine Corps Reserve command.’’.
SEC. 924. AIR FORCE RESERVE COMMAND.
(a) ESTABLISHMENT AS PERMANENT SEPARATE AIR
FORCE COMMAND.—(1) Chapter 807 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 8082. Air Force Reserve command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Air Force an Air Force Reserve command, which shall
be a separate command of the Air Force. The Secretary
of the Air Force shall maintain that command with the
advice and assistance of the Chief of Staff of the Air
Force.
‘‘(b) COMMANDER.—The Chief of Air Force Reserve
is the commander of the Air Force Reserve command. The
commander of the Air Force Reserve command reports di-
rectly to the Chief of Staff of the Air Force.
‘‘(c) ASSIGNMENT OF FORCES.—The Secretary of the
Air Force shall assign to the Air Force Reserve command
all forces of the Air Force Reserve.
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‘‘(d) ESTABLISHMENT
OF
RESPONSIBILITY.—(1)
The Chief of Staff of the Air Force shall establish stand-
ards, evaluate units, validate units, and provide training
assistance for the Air Force Reserve in the areas of unit
training, readiness, and mobilization.
‘‘(2) The Chief of Staff shall establish training doc-
trine, with associated tasks, conditions, and standards, for
individual and unit training and shall establish standards,
control of certification, and validation for all courses, in-
structors, and students for the Air Force Reserve.
‘‘(3) The commander of the Air Force Reserve com-
mand shall be responsible for meeting the standards, and
for successfully complying with the evaluation, certifi-
cation, and validation requirements, established by the
Chief of Staff of the Air Force pursuant to paragraphs
(1) and (2).’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘8082. Air Force Reserve command.’’.
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Subtitle C—Professional Military
Education
SEC. 931. AUTHORITY FOR AWARD BY NATIONAL DEFENSE
UNIVERSITY 
OF 
CERTAIN 
MASTER 
OF
SCIENCE DEGREES.
(a) IN GENERAL.—Chapter 108 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 2163. National Defense University: masters of
science in national security strategy and
in national resource strategy
‘‘(a) NATIONAL
WAR
COLLEGE
DEGREE.—The
President of the National Defense University, upon the
recommendation of the faculty and commandant of the
National War College, may confer the degree of master
of science of national security strategy upon graduates of
the National War College who fulfill the requirements for
the degree.
‘‘(b) ICAF DEGREE.—The President of the National
Defense University, upon the recommendation of the fac-
ulty and commandant of the Industrial College of the
Armed Forces, may confer the degree of master of science
of national resource strategy upon graduates of the Indus-
trial College of the Armed Forces who fulfill the require-
ments for the degree.
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‘‘(c) REGULATIONS.—The authority provided by sub-
sections (a) and (b) shall be exercised under regulations
prescribed by the Secretary of Defense.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2163. National Defense University: masters of science in national security
strategy and in national resource strategy.’’.
SEC. 932. REDESIGNATION OF ARMED FORCES STAFF COL-
LEGE.
The Armed Forces Staff College at Norfolk, Virginia,
shall after the date of the enactment of this Act be known
and designated as the ‘‘Joint Armed Forces Staff Col-
lege’’.
SEC. 933. LOCATION FOR NEW JOINT WARFIGHTING CEN-
TER.
The Secretary of Defense shall provide for the Joint
Warfighting Center (established by the Secretary on July
1, 1993, to assist the Chairman of the Joint Chiefs of
Staff and other senior military officers in the preparation
for joint warfare) to be located at the Joint Armed Forces
Staff College in Norfolk, Virginia.
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SEC. 934. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEM-
BERS AT GEORGE C. MARSHALL EUROPEAN
CENTER FOR SECURITY STUDIES.
(a) IN GENERAL.—(1) Section 1595 of title 10, Unit-
ed States Code, is amended to read as follows:
‘‘§ 1595. Civilian faculty members at certain Depart-
ment of Defense schools: employment and
compensation
‘‘(a) AUTHORITY OF SECRETARY.—The Secretary of
Defense may employ as many civilians as professors, in-
structors, and lecturers at the institutions specified in sub-
section (c) as the Secretary considers necessary.
‘‘(b) COMPENSATION OF FACULTY MEMBERS.—The
compensation of persons employed under this section shall
be as prescribed by the Secretary.
‘‘(c) COVERED INSTITUTIONS.—This section applies
with respect to the following institutions of the Depart-
ment of Defense:
‘‘(1) The National Defense University.
‘‘(2) The Foreign Language Center of the De-
fense Language Institute.
‘‘(3) The George C. Marshall European Center
for Security Studies.
‘‘(d) APPLICATION
TO
FACULTY
MEMBERS
AT
NDU.—In the case of the National Defense University,
this section applies with respect to persons selected by the
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Secretary for employment as professors, instructors, and
lecturers at the National Defense University after Feb-
ruary 27, 1990.
‘‘(e) COMPOSITION OF NATIONAL DEFENSE UNIVER-
SITY.—For purposes of this section, the National Defense
University includes the National War College, the Armed
Forces Staff College, the Institute for National Strategic
Study, and the Industrial College of the Armed Forces.’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 81 of such title is
amended to read as follows:
‘‘1595. Civilian faculty members at certain Department of Defense schools: em-
ployment and compensation.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) take effect on October 1, 1993.
Subtitle D—Other Matters
SEC. 941. ASSIGNMENT OF RESERVE FORCES.
(a) UNIFIED COMMANDS.—Section 162(a) of title 10,
United States Code, is amended by inserting ‘‘(other than
forces of the reserve components)’’ after ‘‘all forces under
their jurisdiction’’.
(b) 
SPECIAL
OPERATIONS
COMMAND.—Section
167(b) of such title is amended by striking out ‘‘and re-
serve’’.
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SEC. 942. MORATORIUM ON MERGER OF SPACE COMMAND
AND STRATEGIC COMMAND.
(a) MORATORIUM.—During the period beginning on
the date of the enactment of this Act and ending on De-
cember 1, 1994—
(1) the United States Space Command may not
be merged with the United States Strategic Com-
mand; and
(2) no element or component of the United
States Space Command (as constituted on the date
of the enactment of this Act) may be transferred to
the United States Strategic Command.
(b) GAO REPORT.—Not later than March 1, 1994,
the Comptroller General of the United States shall submit
to Congress a report on the costs and benefits of merging
the United States Space Command with the United States
Strategic Command. The matters to be addressed by the
Comptroller General in the report shall include (1) cost
savings and other efficiencies which could be achieved
through such a merger, as well as any disadvantages of
such a merger, (2) the record of any problems associated
with the performance of the functions of the Space Com-
mand and of the Strategic Command when those functions
have been vested in the same organization in the past, and
(3) the degree to which any such proposed merger de-
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creases the organizational visibility and priority of space-
related issues within the Department of Defense.
SEC. 943. SECURITY CLEARANCES FOR CIVILIAN EMPLOY-
EES.
(a) IN GENERAL.—(1) Chapter 81 of title 10, United
States Code, is amended by inserting after section 1581
the following new section:
‘‘§ 1582. Security clearances: procedural safeguards
for denial or revocation
‘‘Under regulations to be prescribed by the Secretary
of Defense, civilian employees of the Department of De-
fense shall be entitled to the same procedural safeguards
with respect to the denial or revocation of security clear-
ances as are afforded to employees of defense contractors
under Executive Order 10865 (50 U.S.C. 401 note), enti-
tled ‘Safeguarding Classified Information Within Indus-
try’, as in effect on July 1, 1993.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1581 the following new item:
‘‘1582. Security clearances: procedural safeguards for denial or revocation.’’.
(b) EFFECTIVE DATE.—Section 1582 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to the denial or revocation of a security
clearance after the date of the enactment of this Act.
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(c) DEADLINE.—The regulations required by section
1582 of title 10, United States Code, as added by sub-
section (a), shall be prescribed not later than 180 days
after the date of the enactment of this Act.
SEC. 944. PROGRAM FOR VIDEOTAPING OF INVESTIGATIVE
INTERVIEWS.
(a) IN GENERAL.—The Secretary of Defense shall
carry out a program for the videotaping of subject and
witness interviews by military criminal investigative orga-
nizations, as determined appropriate by the Secretary.
(b) STARTUP COSTS.—The Secretary shall direct
that, of amounts available to the Department of Defense
for fiscal year 1994 for operations and maintenance,
$2,500,000 shall be allocated for the purchase of video
equipment for use in the program under subsection (a)
and for necessary modifications to interrogation facilities
to accommodate that equipment.
(b) MILITARY CRIMINAL INVESTIGATIVE ORGANIZA-
TIONS.—For purposes of subsection (a), the military
criminal investigative organizations are the following:
(1) The Defense Criminal Investigative Service.
(2) The Criminal Investigative Division of the
Department of the Army.
(3) The Naval Criminal Investigative Service of
the Department of the Navy.
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(4) The Office of Special Investigations of the
Department of the Air Force.
SEC. 945. FLEXIBILITY IN ADMINISTERING REQUIREMENT
FOR ANNUAL FOUR PERCENT REDUCTION IN
NUMBER 
OF 
PERSONNEL 
ASSIGNED 
TO
HEADQUARTERS AND HEADQUARTERS SUP-
PORT ACTIVITIES.
Section 906(a) of the National Defense Authorization
Act for Fiscal Year 1991 (Public Law 101–510; 104 Stat.
1622) is amended by adding at the end the following: ‘‘If
the number by which the number of such personnel is re-
duced during any of fiscal years 1991, 1992, 1993, or
1994 is greater than the number required under the pre-
ceding sentence, the excess number from that fiscal year
may be applied by the Secretary toward the required re-
duction during a subsequent fiscal year (so that the total
reduction under this section need not exceed the number
equal to five times the required reduction number specified
under the preceding sentence).’’.
SEC. 946. ENHANCED FLEXIBILITY RELATING TO REQUIRE-
MENTS FOR SERVICE IN A JOINT DUTY AS-
SIGNMENT.
(a) EXTENSION OF AUTHORITY FOR JOINT DUTY
EQUIVALENCY WAIVER.—Section 619(e)(2) of title 10,
United States Code, is amended—
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(1) by striking out ‘‘paragraph (1)—’’ and in-
serting in lieu thereof ‘‘paragraph (1) in the follow-
ing circumstances:’’;
(2) by capitalizing the first letter of the first
word in each of subparagraphs (A) through (D);
(3) by striking out the semicolon at the end of
subparagraphs (A), (B), and (C) and inserting in
lieu thereof a period;
(4) by striking out ‘‘; and’’ at the end of sub-
paragraph (D) and inserting in lieu thereof a period;
and
(5) by striking out subparagraph (E) and in-
serting in lieu thereof the following:
‘‘(E) Until January 1, 1998, in the case of an
officer who served in an assignment (other than a
joint duty assignment) that began before October 1,
1986, and that involved significant experience in
joint matters (as determined by the Secretary) if the
officer served in that assignment for a period of suf-
ficient duration (which may not be less than 12
months) for the officer’s service to have been consid-
ered a full tour of duty under the policies and regu-
lations in effect on September 30, 1986.’’.
(b) REQUIREMENT FOR JOINT DUTY ASSIGNMENT
FOR GENERAL AND FLAG OFFICERS RECEIVING JOINT
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DUTY EQUIVALENCY WAIVER.—Section 619 of such title
is further amended by adding at the end the following new
subsection:
‘‘(f)(1) An officer who receives a waiver under para-
graph (2)(E) of subsection (e) by reason of service de-
scribed in that paragraph that began before October 1,
1986, may not (except as provided in paragraph (2)) be
appointed to the grade of major general or rear admiral
until the officer completes a full tour of duty in a joint
duty assignment.
‘‘(2) The Secretary of Defense may on a case-by-case
basis delay the requirement under paragraph (1) for com-
pletion of a full tour of duty in a joint duty assignment
in the case of an officer selected for promotion to the
grade of major general or rear admiral so that such a tour
of duty is completed while the officer is serving in that
grade. Any such delay may be granted only in a case in
which the Secretary determines, and certifies to Congress,
that it is necessary that the requirement for service by
general and flag officers in a joint duty assignment be de-
ferred in the case of that particular officer because of a
lack of available billets for officers in the grade of briga-
dier general or rear admiral (lower half) that are joint
duty assignment positions.
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‘‘(3) The delegation limitations in paragraph (3)(C)
of subsection (e) shall apply to the authority provided in
paragraph (2).’’.
(c) REPORT ON PLANS FOR COMPLIANCE WITH SEC-
TION 619(e).—(1) Not later than January 1, 1994, the
Secretary of Defense shall certify to Congress that the
Army, Navy, Air Force, and Marine Corps have each de-
veloped and implemented a plan for their officer personnel
assignment and promotion policies so as to ensure compli-
ance with the requirements of section 619(e) of title 10,
United States Code, as amended by subsection (a). Each
such plan should particularly ensure that by January 1,
1998, the service covered by the plan shall have enough
officers who have completed a full tour of duty in a joint
duty assignment so as to permit the orderly promotion of
officers to brigadier general or, in the case of the Navy,
rear admiral (lower half).
(2) The Secretary of Defense shall include as part
of the information submitted to Congress pursuant to sec-
tion 667 of title 10, United States Code, for each of the
next five years after the date of the enactment of this Act
the following:
(A) The degree of progress made toward meet-
ing the requirements of section 619(e) of title 10,
United States Code.
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(B) The compliance achieved with each of the
plans developed pursuant to paragraph (1).
(d) REVISION
OF SERVING-IN WAIVER.—Section
619(e)(2) of title 10, United States Code, as amended by
subsection (a), is further amended by adding at the end
the following:
‘‘(F) In the case of an officer selected by a pro-
motion board for appointment to the grade of briga-
dier general or rear admiral (lower half) while serv-
ing in a joint duty assignment, of which no less than
six months have been completed on the date on
which the officer is selected by that selection board,
and who subsequently completes no less than two
years in that joint duty assignment.’’.
(e) DESERT STORM JOINT DUTY CREDIT.—(1) Sec-
tion 933(a)(1) of the National Defense Authorization Act
for Fiscal Year 1993 (Public Law 102–484; 106 Stat.
2476; 10 U.S.C. 644 note) is amended by striking out
‘‘chapter 38 of’’ and inserting in lieu thereof ‘‘any provi-
sion of’’.
(2) Any joint duty service credit given to an officer
under section 933(a)(1) of the National Defense Author-
ization Act for Fiscal Year 1993 before the date of the
enactment of this Act may be applied to any provision of
title 10, United States Code.
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(f) CORRECTION OF SPELLING MISTAKE.—Section
1305(b)(1)(B) of Public Law 100–180 (10 U.S.C. 619
note) is amended by striking out ‘‘nuclear populsion’’ and
inserting in lieu thereof ‘‘nuclear propulsion’’.
SEC. 947. FLEXIBILITY FOR REQUIRED POST-EDUCATION
JOINT DUTY ASSIGNMENT.
(a) IN GENERAL.—Subsection (d) of section 663 of
title 10, United States Code, is amended to read as fol-
lows:
‘‘(d) 
POST-EDUCATION
JOINT
DUTY
ASSIGN-
MENTS.—(1) The Secretary of Defense shall ensure that
each officer with the joint specialty who graduates from
a joint professional military education school shall be as-
signed to a joint duty assignment for that officer’s next
duty assignment after such graduation (unless the officer
receives a waiver of that requirement by the Secretary in
an individual case).
‘‘(2)(A) The Secretary of Defense shall ensure that
a high proportion (which shall be greater than 50 percent)
of the officers graduating from a joint professional mili-
tary education school who do not have the joint specialty
shall receive assignments to a joint duty assignment as
their next duty assignment after such graduation or, to
the extent authorized in subparagraph (B), as their second
duty assignment after such graduation.
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‘‘(B) The Secretary may, if the Secretary determines
that it is necessary to do so for the efficient management
of officer personnel, establish procedures to allow up to
one-half of the officers subject to the duty assignment re-
quirement in subparagraph (A) to be assigned to a joint
duty assignment as their second (rather than first) assign-
ment after such graduation from a joint professional mili-
tary education school.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to officers graduat-
ing from joint professional military education schools after
the date of the enactment of this Act.
SEC. 948. REPORT ON OPTIONS FOR ORGANIZATIONAL
STRUCTURE 
FOR 
IMAGERY 
COLLECTION
FUNCTIONS.
(a) REPORT.—Not later than 90 days after the date
of the enactment of this Act, the Secretary of Defense
shall submit to the committees specified in subsection (e)
a report containing an assessment of options for the orga-
nization of intelligence elements of the Government for the
management of central imagery functions. The report
shall be prepared in consultation with the Director of
Central Intelligence.
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(b) OPTIONS TO BE CONSIDERED.—Options consid-
ered for the purposes of the assessment under subsection
(a) shall include the following:
(1) Carrying out the management of central im-
agery functions through the Central Imagery Office
of the Department of Defense as constituted on the
date of the enactment of this Act.
(2) Consolidation within the Defense Intel-
ligence Agency of the central imagery functions car-
ried out as of the date of the enactment of this Act
through the Central Imagery Office of the Depart-
ment of Defense (as constituted on the date of the
enactment of this Act).
(3) Any other option identified by the Secretary
of Defense and the Director of Central Intelligence.
(c) BASIS FOR EVALUATION OF OPTIONS.—Each op-
tion identified under subsection (b) shall be evaluated on
the basis of—
(1) organizational efficiency;
(2) cost savings that could be realized through
consolidation and through sharing of overhead re-
sources; and
(3) any other criteria determined by the Sec-
retary of Defense and the Director of Central Intel-
ligence.