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(1) An examination of the management ap-
proaches of the Navy in implementing the Fleet Re-
sponse Plan. 
(2) An assessment of the adequacy of Navy di-
rectives and guidance with respect to maintenance 
and training requirements and procedures. 
(3) An analysis and assessment of the adequacy 
of the Navy’s test, exercises, and evaluation criteria. 
(4) An evaluation of Navy data on aircraft car-
riers, destroyers, and cruisers that participated in 
the Fleet Response Plan with respect to readiness, 
response time, and availability for routine or unfore-
seen deployments. 
(5) An assessment of the Navy’s progress in 
identifying the amount of funding required to effec-
tively implement the operations and maintenance re-
quirements of the Fleet Response Plan and the ef-
fect of providing funding in an amount less than 
that amount. 
(6) Any recommendations of the Comptroller 
General with respect to expanding the Fleet Re-
sponse Plan to include Expeditionary Strike Groups. 
(c) POSTPONEMENT OF EXPANSION.—The Secretary 
of the Navy may not expand the implementation of the 
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Fleet Response Plan beyond the Carrier Strike Groups 
until October 1, 2007. 
SEC. 333. REPORT ON NAVY SURFACE SHIP ROTATIONAL 
CREW PROGRAMS. 
(a) REPORT REQUIRED.—Not later than April 1, 
2007, the Secretary of the Navy shall submit to the Com-
mittee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives 
a report on the ship rotational crew experiment referred 
to in subsection (c)(1). The report shall include the fol-
lowing: 
(1) A comparison between the three destroyers 
participating in that experiment and destroyers not 
participating in the experiment that takes into con-
sideration each of the following: 
(A) Cost-effectiveness, including a com-
parison of travel and per diem expenses, main-
tenance costs, and other costs. 
(B) Maintenance procedures, impacts, and 
deficiencies, including the number and charac-
terization of maintenance deficiencies, the ex-
tent of voyage repairs, post-deployment assess-
ments of the material condition of the ships, 
and the extent to which work levels were main-
tained. 
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(C) Mission training requirements. 
(D) Professional development requirements 
and opportunities. 
(E) Liberty port of call opportunities. 
(F) Movement and transportation of crew. 
(G) Inventory and property accountability. 
(H) Policies and procedures for assigning 
billets for rotating crews. 
(I) Crew retention statistics. 
(J) Readiness and mission capability data. 
(2) Results from surveys administered or focus 
groups held to obtain representative views from com-
manding officers, officers, and enlisted members on 
the effects of rotational crew experiments on quality 
of life, training, professional development, mainte-
nance, mission effectiveness, and other issues. 
(3) The extent to which standard policies and 
procedures were developed and used for participating 
ships. 
(4) Lessons learned from the destroyer experi-
ment. 
(5) An assessment from the combatant com-
manders on the crew mission performance when de-
ployed. 
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(6) An assessment from the commander of the 
Fleet Forces Command on the material condition, 
maintenance, and crew training of each participating 
ship. 
(7) Any recommendations of the Secretary of 
the Navy with respect to the extension of the ship 
rotational crew experiment or the implementation of 
the experiment for other surface vessels. 
(b) POSTPONEMENT
OF
IMPLEMENTATION.—The 
Secretary of the Navy may not begin implementation of 
any new surface ship rotational crew experiment or pro-
gram during the period beginning on the date of the enact-
ment of this Act and ending on October 1, 2009. 
(c) TREATMENT OF EXISTING EXPERIMENTS.— 
(1) DESTROYER EXPERIMENT.—Not later than 
January 1, 2007, the Secretary of the Navy shall 
terminate the existing ship rotational crew experi-
ment involving the U.S.S. Gonzalez (DDG–66), the 
U.S.S. Stout (DDG–55), and the U.S.S. Laboon 
(DDG–58) that is known as the ‘‘sea swap’’. 
(2) PATROL
COASTAL
CLASS
SHIP
EXPERI-
MENT.—The Secretary of the Navy may continue 
the existing ship rotational crew program that is 
currently in use by overseas-based Patrol Coastal 
class ships. 
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(d) COMPTROLLER GENERAL REPORT.—Not later 
than July 15, 2007, the Comptroller General shall submit 
to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Rep-
resentatives a report on the ship rotational crew experi-
ment referred to in subsection (c)(1). The report shall in-
clude the following: 
(1) A review of the report submitted by the 
Secretary of the Navy under subsection (a) and an 
assessment of the extent to which the Secretary fully 
addressed costs, quality of life, training, mainte-
nance, and mission effectiveness, and other relevant 
issues in that report. 
(2) An assessment of the extent to which the 
Secretary established and applied a comprehensive 
framework for assessing the use of ship rotational 
crew 
experiments, 
including 
formal 
objectives, 
metrics, and methodology for assessing the cost-ef-
fectiveness of such experiments. 
(3) An assessment of the extent to which the 
Secretary established effective guidance for the use 
of ship rotational crew experiments. 
(4) Lessons learned from recent ship rotational 
crew experiments and an assessment of the extent to 
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which the Navy systematically collects and shares 
lessons learned. 
(e) CONGRESSIONAL BUDGET OFFICE REPORT.— 
Not later than July 15, 2007, the Director of the Congres-
sional Budget Office shall submit a report to the Com-
mittee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives 
on the long-term implications of the use of crew rotation 
on Navy ships on the degree of forward presence provided 
by Navy ships. The report shall include the following: 
(1) An analysis of different approaches to crew 
rotation and the degree of forward presence each ap-
proach would provide. 
(2) A comparison of the degree of forward pres-
ence provided by the fleet under the long-term ship-
building plan of the Navy with and without the 
widespread use of crew rotation. 
(3) The long-term benefits and costs of using 
crew rotation on Navy ships. 
SEC. 334. REPORT ON ARMY LIVE-FIRE RANGES IN HAWAII. 
Not later than March 1, 2007, the Secretary of the 
Army shall submit to Congress a report on the adequacy 
of the live-fire ranges of the Army in the State of Hawaii 
with respect to current and future training requirements. 
The report shall include the following: 
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(1) An evaluation of the capacity of the existing 
live-fire ranges to meet the training requirements of 
the Army, including the training requirements of 
Stryker Brigade Combat Teams. 
(2) A description of any existing plan to modify 
or expand any range in Hawaii for the purpose of 
meeting anticipated live-fire training requirements. 
(3) A description of the current live-fire restric-
tions at the Makua Valley range and the effect of 
these restrictions on unit readiness. 
(4) Cost and schedule estimates for the con-
struction of new ranges or the modification of exist-
ing ranges that are necessary to support future 
training requirements if existing restrictions on 
training at the Makua Valley range remain in place. 
SEC. 335. COMPTROLLER GENERAL REPORT ON JOINT 
STANDARDS AND PROTOCOLS FOR ACCESS 
CONTROL SYSTEMS AT DEPARTMENT OF DE-
FENSE INSTALLATIONS. 
(a) REPORT REQUIRED.—Not later than one year 
after the date of the enactment of this Act, the Comp-
troller General shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Serv-
ices of the House of Representatives a report containing 
the assessment of the Comptroller General of— 
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(1) the extent to which consistency exists in 
standards, protocols, and procedures for access con-
trol across installations of the Department of De-
fense; and 
(2) whether the establishment of joint stand-
ards and protocols for access control at such instal-
lations would be likely to— 
(A) address any need of the Department 
identified by the Comptroller General; or 
(B) improve access control across the in-
stallations by providing greater consistency and 
improved force protection. 
(b) ISSUES TO BE ASSESSED.—In conducting the as-
sessment required by subsection (a), the Comptroller Gen-
eral shall assess the extent to which each installation of 
the Department of Defense has or would benefit from hav-
ing an access control system with the ability to— 
(1) electronically check any identification card 
issued by any Federal agency or any State or local 
government within the United States, including any 
identification card of a visitor to the installation who 
is a citizen or legal resident of the United States; 
(2) verify that an identification card used to ob-
tain access to the installation was legitimately issued 
and has not been reported lost or stolen; 
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(3) check on a real-time basis all relevant watch 
lists maintained by the Government, including ter-
rorist watch lists and lists of persons wanted by 
State, local, or Federal law enforcement authorities; 
(4) maintain a log of individuals seeking access 
to the installation and of individuals who are denied 
access to the installation; and 
(5) exchange information with any installation 
with a system that complies with the joint standards 
and protocols. 
SEC. 336. REPORT ON PERSONNEL SECURITY INVESTIGA-
TIONS FOR INDUSTRY AND NATIONAL INDUS-
TRIAL SECURITY PROGRAM. 
(a) REPORTS REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act and every six 
months thereafter, the Secretary of Defense shall submit 
to the congressional defense committees, the Committee 
on Homeland Security and Governmental Affairs of the 
Senate, and the Committee on Government Reform of the 
House of Representatives, a report on the future require-
ments of the Department of Defense with respect to the 
Personnel Security Investigations for Industry and the 
National Industrial Security Program of the Defense Se-
curity Service. 
(b) CONTENTS OF REPORTS.— 
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(1) INITIAL
REPORT.—The initial report re-
quired under subsection (a) shall include each of the 
following: 
(A) The number of personnel security 
clearance investigations conducted during the 
period beginning on October 1, 1999, and end-
ing on September 30, 2006. 
(B) The number of each type of security 
clearance granted during that period. 
(C) The unit cost to the Department of 
Defense of each security clearance granted dur-
ing that period. 
(D) The amount of any fee or surcharge 
paid to the Office of Personnel Management as 
a result of conducting a personnel security 
clearance investigation. 
(E) A description of the procedures used 
by the Secretary of Defense to estimate the 
number of personnel security clearance inves-
tigations to be conducted during a fiscal year. 
(F) A description of any effect of delays 
and backlogs in the personnel security clearance 
investigation process on the national security of 
the United States. 
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(G) A description of any effect of delays 
and backlogs in the personnel security clearance 
investigation process on the defense industrial 
base assets of the United States. 
(H) A plan developed by the Secretary of 
Defense to reduce such delays and backlogs. 
(I) A plan developed by the Secretary of 
Defense to adequately fund the personnel secu-
rity clearance investigation process. 
(J) A plan developed by the Secretary of 
Defense to establish a more stable and effective 
Personnel Security Investigations Program. 
(K) A plan developed by the Secretary of 
Defense to involve external sources, including 
defense contractors, in the plans of the Sec-
retary of Defense under subparagraphs (H), 
(I), and (J). 
(2) SUBSEQUENT REPORTS.—Each report re-
quired to be submitted under subsection (a) after 
the submission of the initial report shall include each 
of the following: 
(A) The funding requirements of the per-
sonnel security clearance investigation program 
and ability of the Secretary of Defense to fund 
the program. 
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(B) The size of the personnel security 
clearance investigation process backlog. 
(C) The length of the average delay for an 
individual case pending in the personnel secu-
rity clearance investigation process. 
(D) Any progress made by the Secretary of 
Defense during the six months preceding the 
date on which the report is submitted toward 
implementing planned changes in the personnel 
security clearance investigation process. 
(E) A determination certified by the Sec-
retary of Defense of whether the personnel se-
curity clearance investigation process has im-
proved during the six months preceding the 
date on which the report is submitted. 
(c) COMPTROLLER GENERAL REPORT.—As soon as 
practicable after the Secretary of Defense submits the ini-
tial report required under subsection (a), the Comptroller 
General shall submit a report to Congress that contains 
a review of such initial report. 
(d) SENSE OF CONGRESS ON IMPROVING THE PER-
SONNEL SECURITY INVESTIGATIONS PROGRAM.— 
(1) FINDINGS.—Congress finds the following: 
(A) Since fiscal year 2000, the General Ac-
countability Office has listed the Personnel Se-
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curity Investigations Program of the Depart-
ment of Defense as a systemic weakness that 
affects more than one component of the Depart-
ment and may jeopardize the operations of the 
Department. 
(B) In 2005, the Government Account-
ability Office designated the Personnel Security 
Investigations Program as a high-risk area be-
cause delays by the Program in issuing security 
clearances can affect national security. 
(C) In 2005, the Government Account-
ability Office found that the Department of De-
fense continues to face sizeable security clear-
ance backlogs. 
(D) The Government Accountability Office 
also reported in 2005 that security clearance 
delays increase national security risks, delay the 
start of classified work, hamper employers from 
hiring the best qualified workers, and increase 
the cost to the Government of national security- 
related contracts. 
(E) These security clearance backlogs and 
delays continue in 2006, and have brought the 
security clearance program to a reported stand-
still. 
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(2) SENSE OF CONGRESS.—It is the sense of 
Congress that— 
(A) the delays and backlogs associated 
with the Personnel Security Investigations Pro-
gram threaten the national security of the 
United States and key defense industrial assets; 
and 
(B) the Secretary of Defense should take 
such steps as are necessary to eliminate the 
backlogs of applications for security clearance 
and the delays associated with the security 
clearance application process and make sys-
temic improvements to the Personnel Security 
Investigations Program. 
Subtitle E—Other Matters 
SEC. 341. DEPARTMENT OF DEFENSE STRATEGIC POLICY 
ON 
PREPOSITIONING 
OF 
MATERIEL 
AND 
EQUIPMENT. 
(a) STRATEGIC POLICY REQUIRED.—Chapter 131 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2229. Strategic policy on prepositioning of materiel 
and equipment 
‘‘(a) POLICY REQUIRED.—The Secretary of Defense 
shall maintain a strategic policy on the programs of the 
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Department of Defense for the prepositioning of materiel 
and equipment. Such policy shall take into account na-
tional security threats, strategic mobility, and service re-
quirements. 
‘‘(b) LIMITATION OF DIVERSION OF PREPOSITIONED 
MATERIEL.—The Secretary of a military department may 
not divert materiel or equipment from prepositioned stocks 
except— 
‘‘(1) in accordance with a change made by the 
Secretary of Defense to the policy maintained under 
subsection (a); or 
‘‘(2) for the purpose of supporting a contin-
gency operation. 
‘‘(c) CONGRESSIONAL
NOTIFICATION.—The Sec-
retary of Defense may not implement or change the policy 
required under subsection (a) until the Secretary submits 
to the congressional defense committees a report describ-
ing the policy or change to the policy.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘2229. Strategic policy on prepositioning of materiel and equipment.’’. 
(c) DEADLINE FOR ESTABLISHMENT OF POLICY.— 
(1) DEADLINE.—Not later than six months 
after the date of the enactment of this Act, the Sec-
retary of Defense shall establish the strategic policy 
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on the programs of the Department of Defense for 
the prepositioning of materiel and equipment re-
quired under section 2229 of title 10, United States 
Code, as added by subsection (a). 
(2) 
LIMITATION
ON
DIVERSION
OF 
PREPOSITIONED MATERIEL.—During the period be-
ginning on the date of the enactment of this Act and 
ending on the date on which the Secretary of De-
fense submits the report required under section 
2229(c) of title 10, United States Code, on the pol-
icy established under paragraph (1), the Secretary of 
a military department may not divert materiel or 
equipment from prepositioned stocks except for the 
purpose of supporting a contingency operation. 
SEC. 342. AUTHORITY TO MAKE DEPARTMENT OF DEFENSE 
HORSES AVAILABLE FOR ADOPTION AT END 
OF USEFUL WORKING LIFE. 
(a) INCLUSION
OF
DEPARTMENT
OF
DEFENSE 
HORSES IN EXISTING AUTHORITY.—Section 2583 of title 
10, United States Code, is amended— 
(1) in the section heading, by striking ‘‘work-
ing dogs’’ and inserting ‘‘animals’’; 
(2) by striking ‘‘working’’ each place it appears; 
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(3) by striking ‘‘dog’’ and ‘‘dogs’’ each place 
they appear and inserting ‘‘animal’’ and ‘‘animals’’, 
respectively; 
(4) by striking ‘‘dog’s’’ in paragraphs (1) and 
(2) of subsection (a) and inserting ‘‘animal’s’’; 
(5) by striking ‘‘a dog’s adoptability’’ in sub-
section (b) and inserting ‘‘the adoptability of the 
animal’’; and 
(6) by adding at the end the following new sub-
section: 
‘‘(g) MILITARY ANIMAL DEFINED.—In this section, 
the term ‘military animal’ means the following: 
‘‘(1) A military working dog. 
‘‘(2) A horse owned by the Department of De-
fense.’’. 
(b) CLERICAL AMENDMENT.—The item relating to 
such section in the table of sections at the beginning of 
chapter 153 of such title is amended to read as follows: 
‘‘2583. Military animals: transfer and adoption at end of useful working life.’’. 
SEC. 343. SALE AND USE OF PROCEEDS OF RECYCLABLE 
MUNITIONS MATERIALS. 
(a) ESTABLISHMENT OF PROGRAM.—Chapter 443 of 
title 10, United States Code, is amended by adding at the 
end the following new section: 
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‘‘§ 4690. Recyclable munitions materials: sale; use of 
proceeds 
‘‘(a) AUTHORITY FOR PROGRAM.—Notwithstanding 
section 2577 of this title, the Secretary of the Army may 
carry out a program to sell recyclable munitions materials 
resulting from the demilitarization of conventional military 
munitions without regard to chapter 5 of title 40 and use 
any proceeds in accordance with subsection (c). 
‘‘(b) METHOD OF SALE.—The Secretary shall use 
competitive procedures to sell recyclable munitions mate-
rials under this section in accordance with Federal pro-
curement laws and regulations. 
‘‘(c) PROCEEDS.—(1) Proceeds from the sale of recy-
clable munitions materials under this section shall be cred-
ited to an account that is specified as being for Army am-
munition demilitarization from funds made available for 
the procurement of ammunition, to be available only for 
reclamation, recycling, and reuse of conventional military 
munitions (including research and development and equip-
ment purchased for such purpose). 
‘‘(2) Amounts credited under this subsection shall be 
available for obligation for the fiscal year during which 
the funds are so credited and for three subsequent fiscal 
years. 
‘‘(d) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out the program established under 
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this section. Such regulations shall be consistent and in 
compliance with the Solid Waste Disposal Act (42 U.S.C. 
6901 et seq.) and the regulations implementing that Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘4690. Recyclable munitions materials: sale; use of proceeds.’’. 
SEC. 344. CAPITAL SECURITY COST SHARING. 
(a) RECONCILIATION REQUIRED.—For each fiscal 
year, the Secretary of Defense shall reconcile (1) the esti-
mate of overseas presence of the Secretary of Defense 
under subsection (b) for that fiscal year, with (2) the de-
termination of the Secretary of State under section 
604(e)(1) of the Secure Embassy Construction and 
Counterterrorism Act of 1999 (22 U.S.C. 4865 note) of 
the total overseas presence of the Department of Defense 
for that fiscal year. 
(b) ANNUAL ESTIMATE OF OVERSEAS PRESENCE.— 
Not later than February 1 of each year, the Secretary of 
Defense shall submit to the congressional defense commit-
tees an estimate of the total number of Department of 
Defense overseas personnel subject to chief of mission au-
thority pursuant to section 207 of the Foreign Service Act 
of 1980 (22 U.S.C. 3927) during the fiscal year that be-
gins on October 1 of that year. 
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SEC. 345. PRIORITIZATION OF FUNDS WITHIN NAVY MIS-
SION 
OPERATIONS, 
SHIP 
MAINTENANCE, 
COMBAT SUPPORT FORCES, AND WEAPONS 
SYSTEM SUPPORT. 
(a) IN GENERAL.—The Secretary of the Navy shall 
take such steps as necessary through the planning, pro-
gramming, budgeting, and execution systems of the De-
partment of the Navy to ensure that financial resources 
are provided for each fiscal year as necessary to enable 
the Navy to fund the following requirements of the Navy 
for that fiscal year: 
(1) 100 percent of the requirements for steam-
ing days per quarter for deployed ship operations. 
(2) 100 percent of the requirements for steam-
ing days per quarter for non-deployed ship oper-
ations. 
(3) 100 percent of the projected ship and air 
depot maintenance. 
(b) LIMITATION
OF FUNDS
FOR NAVY EXPEDI-
TIONARY COMBAT COMMAND.—Of the funds appropriated 
for the Department of Navy for any fiscal year after fiscal 
year 2006, no operation and maintenance funds may be 
expended for the Navy Expeditionary Combat Command 
until the funding priorities in subsection (a) are met for 
that fiscal year. 
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HR 5122 PCS 
(c) ANNUAL REPORT.—The Secretary of Navy shall 
submit to the congressional defense committees an annual 
report, to be submitted each year with the annual oper-
ation and maintenance justification of estimates material 
for the next fiscal year, that certifies that the require-
ments in subsection (a) are satisfied for the fiscal year 
for which that material is submitted. 
SEC. 346. PRIORITIZATION OF FUNDS WITHIN ARMY RE-
CONSTITUTION AND TRANSFORMATION. 
(a) IN GENERAL.—The Secretary of the Army shall 
take such steps as necessary through the planning, pro-
gramming, budgeting, and execution systems of the De-
partment of the Army to ensure that financial resources 
are provided for each fiscal year as necessary to enable 
the Army to meet its requirements in that fiscal year for 
each of the following: 
(1) The repair, recapitalization, and replace-
ment of equipment used in the Global War on Ter-
rorism, based on implementation of requirements 
based on a cost estimate for such purposes of at 
least $72,300,000,000 over the period of the five fis-
cal years beginning with fiscal year 2008. 
(2) The fulfillment of equipment requirements 
of units transforming to modularity in accordance 
with the Modular Force Initiative report submitted 
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HR 5122 PCS 
to Congress in March 2006, based on implementa-
tion of requirements based on a cost estimate for 
such purposes of $47,600,000,000 over the period of 
the five fiscal years beginning with fiscal year 2008. 
(3) The reconstitution of equipment and mate-
riel in prepositioned stocks by 2012 in accordance 
with requirements under the Army Prepositioned 
Stocks Strategy 2012 or a subsequent strategy im-
plemented under the guidelines in section 2229 of 
title 10, United States Code. 
(b) ANNUAL REPORT.—The Secretary of the Army 
shall submit to the congressional defense committees an 
annual report, until the requirements of subsection (a) 
have been met, setting forth the progress toward meeting 
those requirements. Any information required to be in-
cluded in the report concerning funding priorities under 
paragraph (1) or (2) of subsection (a) shall be itemized 
by active duty component and reserve component. The re-
port for any year shall be submitted at the time the budget 
of the President for the next fiscal year is submitted to 
Congress. Each such report shall include the following: 
(1) A complete itemization of the requirements 
for the funding priorities in subsection (a), including 
an itemization for all types of modular brigades for 
both active and reserve components. 
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HR 5122 PCS 
(2) A list of any shortfalls that exist between 
available funding, equipment, supplies, and indus-
trial capacity and required funding, equipment, sup-
plies, and industrial capacity in accordance with the 
funding priorities in subsection (a). 
(3) A list of the requirements for the funding 
priorities in subsection (a) that the Army has in-
cluded in the budget for that fiscal year, including 
a detailed listing of the type, quantity, and cost of 
the equipment the Army plans to repair, recapitalize, 
or procure, set forth by appropriations account and 
Army component. 
(4) An assessment of the progress made during 
that fiscal year toward meeting the overall require-
ments of the funding priorities in subsection (a). 
(5) A description of how the Army defines costs 
associated with modularity versus the costs associ-
ated with modernizing equipment platforms and re-
pairing, recapitalizing, and replacing equipment used 
during the global war on terrorism. 
(6) The results of Army assessments of mod-
ular force capabilities, including lessons learned from 
existing modular units and any modifications that 
have been made to modularity. 
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