H. R. 2863—20
(1) the Secretary of Defense has submitted to Congress 
a budget request for full funding of units to be procured through 
the contract; 
(2) cancellation provisions in the contract do not include 
consideration of recurring manufacturing costs of the contractor 
associated with the production of unfunded units to be delivered 
under the contract; 
(3) the contract provides that payments to the contractor 
under the contract shall not be made in advance of incurred 
costs on funded units; and 
(4) the contract does not provide for a price adjustment 
based on a failure to award a follow-on contract. 
Funds appropriated in title III of this Act may be used for 
a multiyear procurement contract as follows: 
UH–60/MH–60 Helicopters; 
C–17 Globemaster; 
Apache Block II Conversion; and 
Modernized Target Acquisition Designation Sight/Pilot 
Night Vision Sensor (MTADS/PNVS). 
SEC. 8009. Within the funds appropriated for the operation 
and maintenance of the Armed Forces, funds are hereby appro-
priated pursuant to section 401 of title 10, United States Code, 
for humanitarian and civic assistance costs under chapter 20 of 
title 10, United States Code. Such funds may also be obligated 
for humanitarian and civic assistance costs incidental to authorized 
operations and pursuant to authority granted in section 401 of 
chapter 20 of title 10, United States Code, and these obligations 
shall be reported as required by section 401(d) of title 10, United 
States Code: Provided, That funds available for operation and 
maintenance shall be available for providing humanitarian and 
similar assistance by using Civic Action Teams in the Trust Terri-
tories of the Pacific Islands and freely associated states of Micro-
nesia, pursuant to the Compact of Free Association as authorized 
by Public Law 99–239: Provided further, That upon a determination 
by the Secretary of the Army that such action is beneficial for 
graduate medical education programs conducted at Army medical 
facilities located in Hawaii, the Secretary of the Army may authorize 
the provision of medical services at such facilities and transpor-
tation to such facilities, on a nonreimbursable basis, for civilian 
patients from American Samoa, the Commonwealth of the Northern 
Mariana Islands, the Marshall Islands, the Federated States of 
Micronesia, Palau, and Guam. 
SEC. 8010. (a) During fiscal year 2006, the civilian personnel 
of the Department of Defense may not be managed on the basis 
of any end-strength, and the management of such personnel during 
that fiscal year shall not be subject to any constraint or limitation 
(known as an end-strength) on the number of such personnel who 
may be employed on the last day of such fiscal year. 
(b) The fiscal year 2007 budget request for the Department 
of Defense as well as all justification material and other documenta-
tion supporting the fiscal year 2007 Department of Defense budget 
request shall be prepared and submitted to the Congress as if 
subsections (a) and (b) of this provision were effective with regard 
to fiscal year 2007. 
(c) Nothing in this section shall be construed to apply to military 
(civilian) technicians.
H. R. 2863—21
SEC. 8011. None of the funds appropriated in this or any 
other Act may be used to initiate a new installation overseas 
without 30-day advance notification to the Committees on Appro-
priations. 
SEC. 8012. None of the funds made available by this Act shall 
be used in any way, directly or indirectly, to influence congressional 
action on any legislation or appropriation matters pending before 
the Congress. 
SEC. 8013. None of the funds appropriated by this Act shall 
be available for the basic pay and allowances of any member of 
the Army participating as a full-time student and receiving benefits 
paid by the Secretary of Veterans Affairs from the Department 
of Defense Education Benefits Fund when time spent as a full-
time student is credited toward completion of a service commitment: 
Provided, That this subsection shall not apply to those members 
who have reenlisted with this option prior to October 1, 1987: 
Provided further, That this subsection applies only to active compo-
nents of the Army. 
SEC. 8014. (a) LIMITATION
ON CONVERSION
TO CONTRACTOR 
PERFORMANCE.—None of the funds appropriated by this Act shall 
be available to convert to contractor performance an activity or 
function of the Department of Defense that, on or after the date 
of the enactment of this Act, is performed by more than 10 Depart-
ment of Defense civilian employees unless—
(1) the conversion is based on the result of a public-private 
competition that includes a most efficient and cost effective 
organization plan developed by such activity or function; 
(2) the Competitive Sourcing Official determines that, over 
all performance periods stated in the solicitation of offers for 
performance of the activity or function, the cost of performance 
of the activity or function by a contractor would be less costly 
to the Department of Defense by an amount that equals or 
exceeds the lesser of—
(A) 10 percent of the most efficient organization’s per-
sonnel-related costs for performance of that activity or func-
tion by Federal employees; or 
(B) $10,000,000; and 
(3) the contractor does not receive an advantage for a 
proposal that would reduce costs for the Department of Defense 
by—
(A) not making an employer-sponsored health insur-
ance plan available to the workers who are to be employed 
in the performance of that activity or function under the 
contract; or 
(B) offering to such workers an employer-sponsored 
health benefits plan that requires the employer to con-
tribute less towards the premium or subscription share 
than the amount that is paid by the Department of Defense 
for health benefits for civilian employees under chapter 
89 of title 5, United States Code. 
(b) EXCEPTIONS.—
(1) The Department of Defense, without regard to sub-
section (a) of this section or subsections (a), (b), or (c) of section 
2461 of title 10, United States Code, and notwithstanding any 
administrative regulation, requirement, or policy to the con-
trary shall have full authority to enter into a contract for
H. R. 2863—22
the performance of any commercial or industrial type function 
of the Department of Defense that—
(A) is included on the procurement list established 
pursuant to section 2 of the Javits-Wagner-O’Day Act (41 
U.S.C. 47); 
(B) is planned to be converted to performance by a 
qualified nonprofit agency for the blind or by a qualified 
nonprofit agency for other severely handicapped individuals 
in accordance with that Act; or 
(C) is planned to be converted to performance by a 
qualified firm under at least 51 percent ownership by an 
Indian tribe, as defined in section 4(e) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 
450b(e)), or a Native Hawaiian Organization, as defined 
in section 8(a)(15) of the Small Business Act (15 U.S.C. 
637(a)(15)). 
(2) This section shall not apply to depot contracts or con-
tracts for depot maintenance as provided in sections 2469 and 
2474 of title 10, United States Code. 
(c) TREATMENT OF CONVERSION.—The conversion of any activity 
or function of the Department of Defense under the authority pro-
vided by this section shall be credited toward any competitive 
or outsourcing goal, target, or measurement that may be established 
by statute, regulation, or policy and is deemed to be awarded 
under the authority of, and in compliance with, subsection (h) 
of section 2304 of title 10, United States Code, for the competition 
or outsourcing of commercial activities. 
(TRANSFER OF FUNDS) 
SEC. 8015. Funds appropriated in title III of this Act for the 
Department of Defense Pilot Mentor-Protege Program may be trans-
ferred to any other appropriation contained in this Act solely for 
the purpose of implementing a Mentor-Protege Program develop-
mental assistance agreement pursuant to section 831 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101–510; 10 U.S.C. 2302 note), as amended, under the 
authority of this provision or any other transfer authority contained 
in this Act. 
SEC. 8016. None of the funds in this Act may be available 
for the purchase by the Department of Defense (and its departments 
and agencies) of welded shipboard anchor and mooring chain 4 
inches in diameter and under unless the anchor and mooring chain 
are manufactured in the United States from components which 
are substantially manufactured in the United States: Provided, 
That for the purpose of this section manufactured will include 
cutting, heat treating, quality control, testing of chain and welding 
(including the forging and shot blasting process): Provided further, 
That for the purpose of this section substantially all of the compo-
nents of anchor and mooring chain shall be considered to be pro-
duced or manufactured in the United States if the aggregate cost 
of the components produced or manufactured in the United States 
exceeds the aggregate cost of the components produced or manufac-
tured outside the United States: Provided further, That when ade-
quate domestic supplies are not available to meet Department of 
Defense requirements on a timely basis, the Secretary of the service 
responsible for the procurement may waive this restriction on a 
case-by-case basis by certifying in writing to the Committees on
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Appropriations that such an acquisition must be made in order 
to acquire capability for national security purposes. 
SEC. 8017. None of the funds available to the Department 
of Defense may be used to demilitarize or dispose of M–1 Carbines, 
M–1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles, 
or M–1911 pistols. 
SEC. 8018. None of the funds appropriated by this Act available 
for the Civilian Health and Medical Program of the Uniformed 
Services (CHAMPUS) or TRICARE shall be available for the 
reimbursement of any health care provider for inpatient mental 
health service for care received when a patient is referred to a 
provider of inpatient mental health care or residential treatment 
care by a medical or health care professional having an economic 
interest in the facility to which the patient is referred: Provided, 
That this limitation does not apply in the case of inpatient mental 
health services provided under the program for persons with disabil-
ities under subsection (d) of section 1079 of title 10, United States 
Code, provided as partial hospital care, or provided pursuant to 
a waiver authorized by the Secretary of Defense because of medical 
or psychological circumstances of the patient that are confirmed 
by a health professional who is not a Federal employee after a 
review, pursuant to rules prescribed by the Secretary, which takes 
into account the appropriate level of care for the patient, the inten-
sity of services required by the patient, and the availability of 
that care. 
SEC. 8019. No more than $500,000 of the funds appropriated 
or made available in this Act shall be used during a single fiscal 
year for any single relocation of an organization, unit, activity 
or function of the Department of Defense into or within the National 
Capital Region: Provided, That the Secretary of Defense may waive 
this restriction on a case-by-case basis by certifying in writing 
to the congressional defense committees that such a relocation 
is required in the best interest of the Government. 
SEC. 8020. In addition to the funds provided elsewhere in 
this Act, $8,000,000 is appropriated only for incentive payments 
authorized by section 504 of the Indian Financing Act of 1974 
(25 U.S.C. 1544): Provided, That a prime contractor or a subcon-
tractor at any tier that makes a subcontract award to any subcon-
tractor or supplier as defined in section 1544 of title 25, United 
States Code or a small business owned and controlled by an indi-
vidual or individuals defined under section 4221(9) of title 25, 
United States Code shall be considered a contractor for the purposes 
of being allowed additional compensation under section 504 of the 
Indian Financing Act of 1974 (25 U.S.C. 1544) whenever the prime 
contract or subcontract amount is over $500,000 and involves the 
expenditure of funds appropriated by an Act making Appropriations 
for the Department of Defense with respect to any fiscal year: 
Provided further, That notwithstanding section 430 of title 41, 
United States Code, this section shall be applicable to any Depart-
ment of Defense acquisition of supplies or services, including any 
contract and any subcontract at any tier for acquisition of commer-
cial items produced or manufactured, in whole or in part by any 
subcontractor or supplier defined in section 1544 of title 25, United 
States Code or a small business owned and controlled by an indi-
vidual or individuals defined under section 4221(9) of title 25, 
United States Code: Provided further, That, during the current 
fiscal year and hereafter, businesses certified as 8(a) by the Small