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‘‘(b) COVERED ATTACKS.— 
‘‘(1) ATTACKS
DESCRIBED.—Except as pro-
vided in paragraph (2), an attack covered by sub-
section (a) is any assault or battery resulting in bod-
ily injury or death committed by an individual who 
the Secretary of Defense determines knowingly tar-
geted— 
‘‘(A) a member of the armed forces on ac-
count of the military service of the member or 
the status of member as a member of the 
Armed Forces; or 
‘‘(B) a civilian employee of the Depart-
ment of Defense on account of the employee’s 
employment with the Department of Defense or 
affiliation with the Department of Defense. 
‘‘(2) GEOGRAPHIC EXCLUSION.—Subsection (a) 
does not apply to any attack that— 
‘‘(A) occurs in a combat zone; or 
‘‘(B) in the case of a civilian employee of 
the Department, occurs while the employee is 
serving with the armed forces in a contingency 
operation. 
‘‘(c) CALCULATION OF COMPENSATION AMOUNT.— 
The Secretary of Defense shall identify, in consultation 
with all relevant Federal agencies, including the Depart-
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ment of Veterans Affairs and the Internal Revenue Serv-
ice, all Federal benefits provided to members of the armed 
forces and civilian employees of the Department of De-
fense killed or wounded in a combat zone, including special 
pays and the value of Federal tax advantages accruing be-
cause certain benefits are not subject to Federal income 
tax. The Secretary shall exclude from the calculation any 
Federal benefits provided regardless of the geographic lo-
cation or circumstances of the death or injuries. 
‘‘(d) EXCLUSION OF CERTAIN INDIVIDUALS.—Sub-
section (a) shall not apply to a member of the armed 
forces or civilian employee of the Department of Defense 
whose death or wound as described in subsection (b) is 
the result of the misconduct of the member or employee, 
as determined by the Secretary of Defense. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘armed forces’ means the Army, 
Navy, Air Force, and Marine Corps. 
‘‘(2) The term ‘combat zone’ means a combat 
operation or combat zone designated by the Sec-
retary of Defense. 
‘‘(3) The term ‘eligible survivor’ refers to the 
persons eligible to receive a death gratuity payment 
under section 1477 of title 10. In the case of a de-
ceased member or employee, the eligible survivor 
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who will receive the payment under subsection (a) 
shall be determined as provided in such section.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘911. Special payment to members of the armed forces and civilian employees 
of the Department of Defense killed or wounded in attacks di-
rected at members or employees outside of combat zone.’’. 
(3) RETROACTIVE APPLICATION.—Section 911 
of title 37, United States Code, as added by para-
graph (1), shall apply to any attack described in 
subsection (b) of such section occurring on or after 
November 6, 2009. 
(c) PURPLE HEART.—This section and the amend-
ments made by this section shall not be construed to pro-
hibit, authorize, or require the award of the Purple Heart 
to any member of the Armed Forces. 
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. EXTENSION OF AUTHORITY TO PROVIDE TRAVEL 
AND TRANSPORTATION ALLOWANCES FOR 
INACTIVE DUTY TRAINING OUTSIDE OF NOR-
MAL COMMUTING DISTANCES. 
Section 408a(e) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2010’’ and inserting 
‘‘December 31, 2011’’. 
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SEC. 632. TRAVEL AND TRANSPORTATION ALLOWANCES 
FOR ATTENDANCE OF DESIGNATED PERSONS 
AT 
YELLOW 
RIBBON 
REINTEGRATION 
EVENTS. 
(a) PAYMENT OF TRAVEL COSTS AUTHORIZED.— 
(1) IN GENERAL.—Chapter 7 of title 37, United 
States Code, is amended by inserting after section 
411k the following new section: 
‘‘§ 411l. Travel and transportation allowances: attend-
ance of designated persons at Yellow Rib-
bon Reintegration events 
‘‘(a) ALLOWANCE TO FACILITATE ATTENDANCE.— 
Under uniform regulations prescribed by the Secretaries 
concerned, travel and transportation described in sub-
section (c) may be provided for a person designated pursu-
ant to subsection (b) to attend an event conducted under 
the Yellow Ribbon Reintegration Program established pur-
suant to section 582 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 10101 note) if the Secretary concerned determines 
that the presence of the person may contribute to the pur-
poses of the event. 
‘‘(b) COVERED PERSONS.—A member of the uni-
formed services who is eligible to attend a Yellow Ribbon 
Reintegration Program event may designate one or more 
persons, including another member of the uniformed serv-
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ices, for purposes of receiving travel and transportation 
described in subsection (c) to attend a Yellow Ribbon Re-
integration Program event. The designation of a person 
for purposes of this section may be changed at any time. 
‘‘(c) 
AUTHORIZED
TRAVEL
AND
TRANSPOR-
TATION.—(1) The transportation authorized by subsection 
(a) for a person designated under subsection (b) is round- 
trip transportation between the home or place of business 
of the person and the location of the Yellow Ribbon Re-
integration Program event. 
‘‘(2) In addition to the transportation authorized by 
subsection (a), the Secretary concerned may provide a per 
diem allowance or reimbursement for the actual and nec-
essary expenses of the travel, or a combination thereof, 
but not to exceed the rates established under section 
404(d) of this title. 
‘‘(3) The transportation authorized by subsection (a) 
may be provided by any of the following means: 
‘‘(A) Transportation in-kind. 
‘‘(B) A monetary allowance in place of trans-
portation in-kind at a rate to be prescribed by the 
Secretaries concerned. 
‘‘(C) Reimbursement for the commercial cost of 
transportation. 
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‘‘(4) An allowance payable under this subsection may 
be paid in advance. 
‘‘(5) Reimbursement payable under this subsection 
may not exceed the cost of Government-procured commer-
cial round-trip air travel.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item related to section 411k 
the following new item: 
‘‘411l. Travel and transportation allowances: attendance of designated persons 
at Yellow Ribbon Reintegration events.’’. 
(b) APPLICABILITY.—No reimbursement may be pro-
vided under section 411l of title 37, United States Code, 
as added by subsection (a), for travel and transportation 
costs incurred before September 30, 2010. 
SEC. 633. MILEAGE REIMBURSEMENT FOR USE OF PRI-
VATELY OWNED VEHICLES. 
(a) USE OF SINGLE STANDARD MILEAGE RATE ES-
TABLISHED
BY IRS.—Section 5704(a)(1) of title 5, 
United States Code, is amended by striking ‘‘shall not ex-
ceed’’ and inserting ‘‘shall be equal to’’. 
(b) PRESCRIPTION OF MILEAGE REIMBURSEMENT 
RATES.—Section 5707(b) of such title is amended— 
(1) in paragraph (1), by striking subparagraph 
(A) and inserting the following new subparagraph: 
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‘‘(A) The Administrator of General Services 
shall conduct periodic investigations of the cost of 
travel and the operation of privately owned airplanes 
and privately owned motorcycles by employees while 
engaged on official business, and shall report the re-
sults of such investigations to Congress at least once 
a year.’’; and 
(2) in paragraph (2)(A), by striking clause (i) 
and inserting the following new clause: 
‘‘(i) shall prescribe a mileage reimburse-
ment rate for privately owned automobiles 
which equals, as provided in section 5704(a)(1) 
of this title, the single standard mileage rate es-
tablished by the Internal Revenue Service, 
and’’. 
Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. ELIMINATION OF CAP ON RETIRED PAY MULTI-
PLIER FOR MEMBERS WITH GREATER THAN 
30 YEARS OF SERVICE WHO RETIRE FOR DIS-
ABILITY. 
(a) COMPUTATION OF RETIRED PAY.—The table in 
section 1401(a) of title 10, United States Code, is amend-
ed— 
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(1) in the column designated ‘‘Column 2’’, by 
inserting ‘‘, not to exceed 75%,’’ after ‘‘percentage 
of disability’’ both places it appears; and 
(2) by striking column 4. 
(b) RECOMPUTATION OF RETIRED OR RETAINER PAY 
TO REFLECT LATER ACTIVE DUTY OF MEMBERS WHO 
FIRST
BECAME
MEMBERS
BEFORE
SEPTEMBER
8, 
1980.—The table in section 1402(d) of such title is 
amended— 
(1) in the column designated ‘‘Column 2’’, by 
inserting ‘‘, not to exceed 75%,’’ after ‘‘percentage 
of disability’’; and 
(2) by striking column 4. 
(c) RECOMPUTATION OF RETIRED OR RETAINER PAY 
TO REFLECT LATER ACTIVE DUTY OF MEMBERS WHO 
FIRST BECAME MEMBERS AFTER SEPTEMBER 7, 1980.— 
The table in section 1402a(d) of such title is amended— 
(1) in the column designated ‘‘Column 2’’, by 
inserting ‘‘, not to exceed 75 percent,’’ after ‘‘per-
centage of disability’’; and 
(2) by striking column 4. 
(d) APPLICATION OF AMENDMENTS.—The tables in 
sections 1401(a), 1402(d), and 1402a(d) of title 10, 
United States Code, as in effect on the day before the date 
of the enactment of this Act, shall continue to apply to 
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the computation or recomputation of retired or retainer 
pay for persons who first became entitled to retired or re-
tainer pay under subtitle A of such title on or before the 
date of the enactment of this Act. The amendments made 
by this section shall apply only with respect to persons 
who first become entitled to retired or retainer pay under 
such subtitle after that date. 
SEC. 642. EQUITY IN COMPUTATION OF DISABILITY RE-
TIRED PAY FOR RESERVE COMPONENT MEM-
BERS WOUNDED IN ACTION. 
Section 1208(b) of title 10, United States Code, is 
amended by adding at the end the following new sentence: 
‘‘However, in the case of such a member who is retired 
under this chapter, or whose name is placed on the tem-
porary disability retired list under this chapter, because 
of a disability incurred after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 
2011, for which the member is awarded the Purple Heart, 
the member shall be credited, for the purposes of this 
chapter, with the number of years of service that would 
be counted if computing the member’s years of service 
under section 12732 of this title.’’. 
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SEC. 643. ELIMINATION OF THE AGE REQUIREMENT FOR 
HEALTH CARE BENEFITS FOR NON-REGULAR 
SERVICE RETIREES. 
Section 1074(b) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘(1)’’; and 
(2) by striking paragraph (2). 
SEC. 644. CLARIFICATION OF EFFECT OF ORDERING RE-
SERVE COMPONENT MEMBER TO ACTIVE 
DUTY TO RECEIVE AUTHORIZED MEDICAL 
CARE ON REDUCING ELIGIBILITY AGE FOR 
RECEIPT OF NON-REGULAR SERVICE RE-
TIRED PAY. 
Section 12731(f)(2)(B) of title 10, United States 
Code, is amended by adding at the end the following new 
clause: 
‘‘(iii) If a member described in subparagraph (A) is 
wounded or otherwise injured or becomes ill while serving 
on active duty pursuant to a call or order to active duty 
under a provision of law referred to in the first sentence 
of clause (i) or in clause (ii), and the member is then or-
dered to active duty under section 12301(h)(1) of this title 
to receive medical care for the wound injury, or illness, 
each day of active duty under that order for medical care 
shall be treated as a continuation of the original call or 
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order to active duty for purposes of reducing the eligibility 
age of the member under this paragraph.’’. 
SEC. 645. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR 
RECIPIENTS 
OF 
PRE-SURVIVOR 
BENEFIT 
PLAN ANNUITY AFFECTED BY REQUIRED 
OFFSET FOR DEPENDENCY AND INDEMNITY 
COMPENSATION. 
Section 644 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C. 
1448 note) is amended— 
(1) by redesignating subsections (c), (d), and 
(e) as subsections (d), (e), and (f), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) SPECIAL SURVIVOR INDEMNITY ALLOWANCE.— 
(1) The Secretary concerned shall pay a monthly special 
survivor indemnity allowance under this subsection to a 
qualified surviving spouse described in subsection (a) if— 
‘‘(A) the surviving spouse is entitled to depend-
ency and indemnity compensation under section 
1311(a) of title 38, United States Code; and 
‘‘(B) the amount of the annuity to which the 
surviving spouse is entitled under subsection (b) is 
affected by paragraph (2)(A) of such subsection. 
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‘‘(2) Subject to paragraph (3), the amount of the spe-
cial survivor indemnity allowance paid to surviving spouse 
under paragraph (1) for a month shall be equal to— 
‘‘(A) for months during fiscal year 2009, $50; 
‘‘(B) for months during fiscal year 2010, $60; 
‘‘(C) for months during fiscal year 2011, $70; 
‘‘(D) for months during fiscal year 2012, $80; 
‘‘(E) for months during fiscal year 2013, $90; 
‘‘(F) for months during fiscal year 2014, $150; 
‘‘(G) for months during fiscal year 2015, $200; 
‘‘(H) for months during fiscal year 2016, $275; 
and 
‘‘(I) for months during fiscal year 2017, $310. 
‘‘(3) The amount of the special survivor indemnity 
allowance paid to an eligible survivor under paragraph (1) 
for any month may not exceed the amount of the annuity 
for that month that is subject to offset under subsection 
(b)(2)(A). 
‘‘(4) A special survivor indemnity allowance paid 
under paragraph (1) does not constitute an annuity, and 
amounts so paid are not subject to adjustment under any 
other provision of law. 
‘‘(5) The special survivor indemnity allowance shall 
be paid under paragraph (1) from amounts in the Depart-
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ment of Defense Military Retirement Fund established 
under section 1461 of title 10, United States Code. 
‘‘(6) Subject to paragraph (7), this subsection shall 
only apply with respect to the month that began on Octo-
ber 1, 2008, and subsequent months through the month 
ending on September 30, 2017. As soon as practicable 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2011, the Secretary 
concerned shall pay, in a lump sum, the total amount of 
the special survivor indemnity allowances due under para-
graph (1) to a qualified surviving spouse for months since 
October 1, 2008, through the month in which the first 
allowance is paid under paragraph (1) to the qualified sur-
viving spouse. 
‘‘(7) Effective on October 1, 2017, the authority pro-
vided by this subsection shall terminate. No special sur-
vivor indemnity allowance may be paid to any person by 
reason of this subsection for any period before October 
1, 2008, or beginning on or after October 1, 2017.’’. 
SEC. 646. PAYMENT DATE FOR RETIRED AND RETAINER 
PAY. 
(a) SETTING PAYMENT DATE.—Section 1412 of title 
10, United States Code, is amended— 
(1) by striking ‘‘Amounts’’ and inserting ‘‘(a) 
ROUNDING.—Amounts’’; and 
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(2) by adding at the end the following new sub-
section: 
‘‘(b) PAYMENT DATE.—Amounts of retired pay and 
retainer pay due a retired member of the uniformed serv-
ices shall be paid on the first day of each month beginning 
after the month in which the right to such pay accrues.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 1412. Administrative provisions’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 71 of such title is 
amended by striking the item relating to section 
1412 and inserting the following new item: 
‘‘1412. Administrative provisions.’’. 
(c) EFFECTIVE DATE.—Subsection (b) of section 
1412 of title 10, United States Code, as added by sub-
section (a), shall apply beginning with the first month that 
begins more than 30 days after the date of the enactment 
of this Act. 
SEC. 647. SENSE OF CONGRESS CONCERNING AGE AND 
SERVICE REQUIREMENTS FOR RETIRED PAY 
FOR NON-REGULAR SERVICE. 
It is the sense of Congress that— 
(1) the amendments made to section 12731 of 
title 10, United States Code, by section 647 of the 
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National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 122 Stat. 160) were in-
tended to reduce the minimum age at which mem-
bers of a reserve component of the Armed Forces 
would begin receiving retired pay according to time 
spent deployed, by three months for every 90-day pe-
riod spent on active duty over the course of a career, 
rather than limiting qualifying time to such periods 
wholly served within the same fiscal year, as inter-
preted by the Department of Defense; and 
(2) steps should be taken to correct this erro-
neous interpretation by the Department of Defense 
in order to ensure reserve component members re-
ceive the full retirement benefits intended to be pro-
vided by such section 12731. 
Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits and Operations 
SEC. 651. SHARED CONSTRUCTION COSTS FOR SHOPPING 
MALLS OR SIMILAR FACILITIES CONTAINING 
A COMMISSARY STORE AND ONE OR MORE 
NONAPPROPRIATED 
FUND 
INSTRUMEN-
TALITY ACTIVITIES. 
Section 2484(h)(2) of title 10, United States Code, 
is amended— 
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(1) by redesignating subparagraph (B) as sub-
paragraph (C) and, in such subparagraph, by strik-
ing ‘‘subparagraph (A)’’ and inserting ‘‘this para-
graph’’; 
(2) in the first sentence of subparagraph (A), 
by inserting ‘‘the Defense Commissary Agency or’’ 
after ‘‘may authorize’’; 
(3) by designating the second sentence of sub-
paragraph (A) as subparagraph (B) and, in such 
subparagraph, by striking ‘‘The Secretary may’’ and 
inserting the following: ‘‘If the construction contract 
is entered into by a nonappropriated fund instru-
mentality, the Secretary of Defense may’’; and 
(4) by adding at the end of subparagraph (B), 
as designated by paragraph (3), the following new 
sentence: ‘‘If the construction contract is entered 
into by the Defense Commissary Agency, the Sec-
retary may authorize the Defense Commissary Agen-
cy accept reimbursement from a nonappropriated 
fund instrumentality for the portion of the cost of 
the contract that is attributable to construction for 
nonappropriated fund instrumentality activities.’’. 
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SEC. 652. ADDITION OF DEFINITION OF MORALE, WELFARE, 
AND 
RECREATION 
TELEPHONE 
SERVICES 
FOR USE IN CONTRACTS TO PROVIDE SUCH 
SERVICES FOR MILITARY PERSONNEL SERV-
ING IN COMBAT ZONES. 
Section 885 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 
265; 10 U.S.C. 2304 note) is amended by adding at the 
end the following new subsection: 
‘‘(c) MORALE, WELFARE, AND RECREATION TELE-
PHONE SERVICES DEFINED.—In this section, the term 
‘morale, welfare, and recreation telephone services’ means 
unofficial telephone calling center services supporting call-
ing centers provided by the Army and Air Force Exchange 
Service, Navy Exchange Service Command, Marine Corps 
exchanges, or any other nonappropriated fund instrumen-
tality of the United States under the jurisdiction of the 
Armed Forces which is conducted for the comfort, pleas-
ure, contentment, or physical or mental improvement of 
members of the Armed Forces.’’. 
SEC. 653. FEASIBILITY STUDY ON ESTABLISHMENT OF 
FULL EXCHANGE STORE IN THE NORTHERN 
MARIANA ISLANDS. 
(a) STUDY REQUIRED.—The Secretary of Defense 
shall conduct a study to determine the feasibility of replac-
ing the ‘‘Shoppette’’ of the Army and Air Force Exchange 
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Service in the Northern Mariana Islands with a full-serv-
ice exchange store. In conducting the study, the Secretary 
shall consider the welfare of members of the Armed Forces 
serving in the Northern Mariana Islands and dependents 
of members residing in the Northern Mariana Islands. 
(b) SUBMISSION OF RESULTS.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to Congress a report con-
taining the results of the study conducted under sub-
section (a). 
SEC. 654. CONTINUED OPERATION OF COMMISSARY AND 
EXCHANGE STORES SERVING BRUNSWICK 
NAVAL AIR STATION, MAINE. 
The Secretary of Defense shall provide for the contin-
ued operation of each commissary or exchange store serv-
ing Brunswick Naval Air Station, Maine, through Sep-
tember 30, 2011, and may not take any action to reduce 
or to terminate the sale of goods at such stores during 
fiscal year 2011. 
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Subtitle F—Alternative Career 
Track Pilot Program 
SEC. 661. PILOT PROGRAM TO EVALUATE ALTERNATIVE 
CAREER TRACK FOR COMMISSIONED OFFI-
CERS TO FACILITATE AN INCREASED COM-
MITMENT TO ACADEMIC AND PROFESSIONAL 
EDUCATION AND CAREER-BROADENING AS-
SIGNMENTS. 
(a) PROGRAM AUTHORIZED.—Chapter 39 of title 10, 
United States Code, is amended by inserting after section 
672 the following new section: 
‘‘§ 673. Alternative career track for commissioned of-
ficers pilot program 
‘‘(a) PROGRAM AUTHORIZED.—(1) Under regulations 
prescribed pursuant to subsection (g) and approved by the 
Secretary of Defense, the Secretary of a military depart-
ment may establish a pilot program for an armed force 
under the jurisdiction of the Secretary under which an eli-
gible commissioned officer, while on active duty— 
‘‘(A) participates in a separate career track 
characterized by expanded career opportunities ex-
tending over a longer career; 
‘‘(B) agrees to an additional active duty service 
obligation of at least five years to be served concur-
rently with other active duty service obligations; and 
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‘‘(C) would be required to accept further active 
duty service obligations, as determined by the Sec-
retary, to be served concurrently with other active 
duty service obligations, including the active duty 
service obligation accepted under subparagraph (B), 
in connection with the officer’s entry into education 
programs, selection for career broadening assign-
ments, acceptance of additional special and incentive 
pays, or selection for promotion. 
‘‘(2) The Secretary of the military department con-
cerned may waive an active duty service obligation accept-
ed under subparagraph (B) or (C) of paragraph (1) to 
facilitate the separation or retirement of a participant in 
the program. 
‘‘(3) The program shall be known as the ‘Alternative 
Career Track Pilot Program’ (in this section referred to 
as the ‘program’). 
‘‘(b) ELIGIBLE OFFICERS.—Commissioned officers 
with between 13 and 18 years of service are eligible to 
volunteer to participate in the program. 
‘‘(c) NUMBER OF PARTICIPANTS.—No more than 50 
officers of each armed force may be selected per year to 
participate in the program. 
‘‘(d) ALTERNATIVE CAREER ELEMENTS
OF PRO-
GRAM.—(1) The Secretaries of the military departments 
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may establish separate basic pay and special and incentive 
pay and promotion systems unique to the officers partici-
pating in the program, without regard to the requirements 
of this title, title 37, or administrative year group cohort 
designation. 
‘‘(2) The Secretaries of the military departments may 
establish separation and retirement policies for officers 
participating in the program without regard to grade and 
years of service requirements established under this title. 
‘‘(3) Participants serving in a grade below brigadier 
general or rear admiral (lower half) may serve in the grade 
without regard to the limits on the number of officers in 
the grade established under this title. 
‘‘(e) TREATMENT OF GENERAL AND FLAG OFFICER 
PARTICIPANTS.—(1) A participant serving in a grade 
above colonel, or captain in the Navy, but below lieutenant 
general or vice admiral, shall be— 
‘‘(A) counted for purposes of general officer 
and flag officer limits on grade and the total number 
serving as general officers and flag officers, if the 
participant is serving in a position requiring the as-
signment of a military officer; but 
‘‘(B) excluded from limits on grade and the 
total number serving as general officers and flag of-
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ficers, if the participant is serving in a position not 
typically occupied by a military officer. 
‘‘(2) A participant serving in the grade of lieutenant 
general, vice admiral, general, or admiral shall be counted 
for purposes of general officer and flag officer limits on 
grade and the total number serving as general officers and 
flag officers. 
‘‘(f) RETURN
TO STANDARD CAREER PATH; EF-
FECT.—(1) The Secretaries of the military departments 
retain the authority to involuntarily return an officer to 
the standard career path. 
‘‘(2) The Secretary of the military department con-
cerned may return an officer to the standard career path 
at the request of the officer. 
‘‘(3) If the program is terminated pursuant to para-
graph (4) or (5) of subsection (i), officers participating 
in the program at the time of the termination shall be 
returned to the standard career path with appropriate ad-
justments to their administrative record to ensure they are 
not penalized for participating in the pilot program. 
‘‘(4) An officer returned to the standard career path 
under paragraph (1), (2), or (3) shall retain the grade, 
date-of-rank, and basic pay level earned while a partici-
pant in the program but shall revert to the special and 
incentive pay authorities established in title 37 upon the 
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expiration of the agreement between the Secretary and the 
officer providing any special and incentive pays under the 
program. Subsequent increases in the officer’s rate of 
monthly basic pay shall conform to the annual percentage 
increases in basic pay rates provided in the basic pay 
table. 
‘‘(5) Services will adjust the participating officer’s co-
hort year group to the appropriate year to ensure the offi-
cer remains competitive for all promotions and command 
opportunities in their standard career path. 
‘‘(g) ANNUAL REPORT.—(1) The Secretaries of the 
military departments, in cooperation with the Secretary of 
Defense, shall submit to the Committees on Armed Serv-
ices of the Senate and House of Representatives an annual 
report containing the findings and recommendations of the 
Secretary of Defense and the Secretaries of the military 
departments concerning the progress of the program for 
each armed force. 
‘‘(2) The Secretary of a military department, with the 
consent of the Secretary of Defense, may include in the 
report for a year a recommendation that the program be 
made permanent for an armed force under the jurisdiction 
of that Secretary. 
‘‘(h) REGULATIONS.—The Secretary of each military 
department shall prescribe regulations to carry out the 
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program. The regulations shall be subject to the approval 
of the Secretary of Defense. 
‘‘(i) COMMENCEMENT; DURATION.—(1) Before au-
thorizing the commencement of the program for an armed 
force, the Secretary of the military department concerned, 
with the consent of the Secretary of Defense, shall submit 
to the Committees on Armed Services of the Senate and 
House of Representatives a report containing the detailed 
program structure of the alternative career track, associ-
ated personnel and compensation policies, implementing 
instructions and regulations, and a summary of the spe-
cific provisions of this title and title 37 to be waived under 
the program. The authority to conduct the program for 
that armed force commences 120 days after the date of 
the submission of the report. 
‘‘(2) The Secretary of the military department con-
cerned, with the consent of the Secretary of Defense, may 
authorize revision of the program structure, associated 
personnel and compensation policies, implementing in-
structions and regulations, or laws waived, as submitted 
by the Secretary under paragraph (1). The Secretary of 
the military department concerned, with the consent of the 
Secretary of Defense, shall submit the proposed revisions 
to the Committees on Armed Services of the Senate and 
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House of Representatives. The revisions shall take effect 
120 days after the date of their submission. 
‘‘(3) If the program for an armed force has not com-
menced before December 31, 2015, as provided in para-
graph (1), the authority to commence the program for 
that armed force terminates. 
‘‘(4) No officer may be accepted to participate in the 
program after December 31, 2026. 
‘‘(5) The Secretary of the military department con-
cerned, with the consent of the Secretary of Defense, may 
terminate the pilot program for an armed force before the 
date specified in paragraph (4). Not later than 90 days 
after terminating the pilot program, the Secretary of the 
military department concerned, in cooperation with the 
Secretary of Defense, shall submit to the Committees on 
Armed Services of the Senate and House of Representa-
tives a report containing the reasons for the termination.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 672 the following new 
item: 
‘‘673. Alternative career track for commissioned officers pilot program.’’. 
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Subtitle G—Other Matters 
SEC. 671. PARTICIPATION OF MEMBERS OF THE ARMED 
FORCES HEALTH PROFESSIONS SCHOLAR-
SHIP AND FINANCIAL ASSISTANCE PROGRAM 
IN ACTIVE DUTY HEALTH PROFESSION LOAN 
REPAYMENT PROGRAM. 
Section 2173(c) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(4) The person is enrolled in the Armed 
Forces Health Professions Scholarship and Finan-
cial Assistance program under subchapter I of chap-
ter 105 of this title for a number of years less than 
the number of years required to complete the normal 
length of the course of study required for the spe-
cific health profession.’’. 
SEC. 672. RETENTION OF ENLISTMENT, REENLISTMENT, 
AND STUDENT LOAN BENEFITS RECEIVED BY 
MILITARY TECHNICIANS (DUAL STATUS). 
(a) TREATMENT OF ENLISTMENT, REENLISTMENT, 
AND STUDENT LOAN BENEFITS.—Section 10216 of title 
10, United States Code, is amended by adding at the end 
the following new subsection: 
‘‘(h) RETENTION OF BONUSES AND OTHER BENE-
FITS.—If an individual is first employed as a military 
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technician (dual status) while the individual is already a 
member of a reserve component, the Secretary concerned 
may not— 
‘‘(1) require the individual to repay any enlist-
ment, reenlistment, or affiliation bonus provided to 
the individual in connection with the individual’s en-
listment or reenlistment before such employment; or 
‘‘(2) terminate the individual’s participation in 
an educational loan repayment program under chap-
ter 1609 of this title if the individual began such 
participation before such employment.’’. 
(b) EFFECTIVE DATE.—Subsection (h) of section 
10216 of title 10, United States Code, as added by sub-
section (a), shall apply only with respect to individuals who 
are first employed as a military technician (dual status), 
as described in subsection (a)(1) of such section 10216, 
more than 180 days after the date of the enactment of 
this Act. 
SEC. 673. CANCELLATION OF LOANS OF MEMBERS OF THE 
ARMED FORCES MADE FROM STUDENT LOAN 
FUNDS. 
Section 465(a) of the Higher Education Act of 1965 
(20 U.S.C. 1087ee(a)) is amended by adding at the end 
the following new paragraph: 
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‘‘(8) For the purpose of this subsection, the 
term ‘year of service’ where applied to service by a 
member of the Armed Forces described in paragraph 
(2)(D) means a qualified tour of duty that— 
‘‘(A) is for 6 months or longer; or 
‘‘(B) was less than 6 months because the 
member was discharged or released from active 
duty in the Armed Forces for an injury or dis-
ability incurred in or aggravated by service in 
the Armed Forces.’’. 
SEC. 674. REPORT ON PROVISION OF ADDITIONAL INCEN-
TIVES FOR RECRUITMENT AND RETENTION 
OF HEALTH CARE PROFESSIONALS FOR RE-
SERVE COMPONENTS. 
Not later than 90 days after the date of the enact-
ment of this Act, the Surgeons General of the Army, Navy, 
and Air Force shall submit to Congress a report on their 
staffing needs for health care professionals in the active 
and reserve components of the Armed Forces. The report 
shall specifically identify the positions in most critical need 
for additional health care professionals, including the 
number of physicians needed and whether additional be-
havioral health professionals, such as psychologists and 
psychiatrists, are needed to treat members of the Armed 
Forces for the growing concerns of post traumatic stress 
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disorder and traumatic brain injury. The report shall in-
clude recommendations for providing incentives for health 
care professionals with more than 20 years of clinical ex-
perience to join the active or reserve components, includ-
ing whether changes in age or length of service require-
ments to qualify for partial retired pay for non-regular 
service could be used as a recruitment or retention incen-
tives. 
SEC. 675. FLEXIBLE COMMENCEMENT DATES FOR AVAIL-
ABILITY OF HOMEOWNER ASSISTANCE FOR 
MEMBERS OF THE ARMED FORCES PERMA-
NENTLY REASSIGNED DURING MORTGAGE 
CRISIS. 
(a) MODIFICATION OF REASSIGNMENT, PURCHASE, 
AND SALE DATES.—Subsection (a)(3) of section 1013 of 
the Demonstration Cities and Metropolitan Development 
Act of 1966 (42 U.S.C. 3374) is amended— 
(1) in subparagraph (C), by striking ‘‘or an 
earlier end date designated by the Secretary’’ and by 
inserting ‘‘or an earlier start or end date designated 
by the Secretary under subsection (c)(3)(C) for a 
specific military base or installation’’; 
(2) in subparagraph (D), by inserting ‘‘, or a 
later purchase date designated by the Secretary 
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under subsection (c)(3)(C) for a specific military 
base or installation’’ after ‘‘July 1, 2006’’; and 
(3) in subparagraph (E), by striking ‘‘between 
July 1, 2006, and September 30, 2012, or an earlier 
end date designated by the Secretary’’ and inserting 
‘‘between the purchase date in effect for the military 
base or installation under subparagraph (D) and the 
end date in effect for the military base or installa-
tion under subparagraph (D)’’. 
(b) MODIFICATION PROCESS.—Subsection (c)(3) of 
such section is amended by adding at the end the following 
new subparagraph: 
‘‘(C) MODIFICATION
OF
REASSIGNMENT, 
PURCHASE, AND
SALE
DATES.—In exercising 
the authority under subsection (a)(3) to des-
ignate different reassignment, purchase, and 
sale dates for a specific military base or instal-
lation, the Secretary of Defense shall consult 
with the Secretary of Housing and Urban De-
velopment and the Secretary of the Treasury 
regarding the condition of housing markets in 
the area of the base or installation so that the 
Secretary of Defense has the information need-
ed to effectively assist members of the Armed 
Forces and their families.’’. 
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SEC. 676. EXCLUSION OF PERSONS CONVICTED OF COM-
MITTING CERTAIN SEX OFFENSES FROM RE-
CEIVING CERTAIN BURIAL-RELATED BENE-
FITS AND FUNERAL HONORS. 
(a) PROHIBITION AGAINST INTERMENT OR MEMORI-
ALIZATION IN NATIONAL CEMETERY ADMINISTRATION, 
ARLINGTON NATIONAL CEMETERY, AND CERTAIN STATE 
VETERANS’ CEMETERIES; PROHIBITION AGAINST PROVI-
SION OF PRESIDENTIAL MEMORIAL CERTIFICATE, FLAG, 
AND HEADSTONE OR MARKER.—Section 2411(b) of title 
38, United States Code, is amended by adding at the end 
the following new paragraph: 
‘‘(4) A person who is classified as a tier III sex 
offender under the Sex Offender Registration and 
Notification Act.’’. 
(b) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed to terminate any benefit available to 
any person except those benefits specifically terminated by 
the amendment made by subsection (a). 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to interments and 
memorializations that occur on or after the date of the 
enactment of this Act. 
(d) CONSTITUTIONAL AUTHORITY.—The constitu-
tional authority on which this section rests is the power 
of Congress to make rules for the government and regula-
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tion of the land and naval forces, as enumerated in article 
I, section 8, clause 14 of the United States Constitution. 
SEC. 677. SCHOLARSHIP PROGRAM FOR VETERANS FOR 
PURSUIT OF GRADUATE AND POST-GRAD-
UATE DEGREES IN BEHAVIORAL HEALTH 
SCIENCES. 
(a) SCHOLARSHIP PROGRAM.— 
(1) PROGRAM.—The Secretary of Veterans Af-
fairs shall carry out a program to provide scholar-
ships to qualifying veterans for pursuit of a grad-
uate or post-graduate degree in behavioral health 
sciences. 
(2) DESIGNATION.—The program carried out 
under this section shall be known as the ‘‘Depart-
ment of Veterans Affairs HONOR Scholarship Pro-
gram’’ (in this section referred to as the ‘‘scholar-
ship program’’). 
(b) QUALIFYING VETERANS.—For purposes of this 
section, a qualifying veteran is any veteran who— 
(1) during service on active duty in the Armed 
Forces, participated for such period as the Secretary 
of Veterans Affairs, in consultation with the Sec-
retary of Defense, shall specify for purposes of the 
scholarship program in a theater of combat or dur-
ing a contingency operation overseas; 
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(2) was retired, discharged, separated, or re-
leased from service in the Armed Forces on or after 
a date (not earlier than August 2, 1990) specified 
by the Secretary of Defense for purposes of the 
scholarship program; 
(3) at the time of the submittal of an applica-
tion to participate in the scholarship program, holds 
an undergraduate or graduate degree, as applicable, 
from an institution of higher education that qualifies 
the veteran for pursuit of a graduate or post-grad-
uate degree in behavioral sciences; and 
(4) meets such other qualifications as the Sec-
retary of Veterans Affairs may establish for pur-
poses of the scholarship program. 
(c) APPLICATION.—Each qualifying veteran seeking 
to participate in the scholarship program shall submit to 
the Secretary of Veterans Affairs an application therefor 
setting forth such information as the Secretary shall speci-
fy for purposes of the scholarship program. 
(d) AGREEMENT.—Each qualifying veteran selected 
by the Secretary of Veterans Affairs for participation in 
the scholarship program shall enter into an agreement 
with the Secretary regarding participation in the scholar-
ship program. The agreement shall contain such terms 
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and conditions as the Secretary shall specify for purposes 
of the scholarship program. 
(e) SCHOLARSHIPS.— 
(1) IN GENERAL.—The Secretary of Veterans 
Affairs shall provide to each qualifying veteran who 
enters into an agreement under subsection (d) a 
scholarship for such number of academic years as 
the Secretary shall specify in the agreement for pur-
suit of a graduate or post-graduate degree in behav-
ioral health sciences at an institution of higher edu-
cation offering such degree that is approved by the 
Secretary for purposes of the scholarship program. 
(2) ELEMENTS.—The scholarship provided a 
qualifying veteran for an academic year shall consist 
of payment of the following: 
(A) Tuition of the qualifying veteran for 
pursuit of the graduate or post-graduate degree 
concerned in the academic year. 
(B) Reasonable educational expenses of the 
qualifying veteran (including fees, books, and 
laboratory expenses) in pursuit of such degree 
in the academic year. 
(C) A stipend in connection with the pur-
suit of such degree in the academic year in such 
amount as the Secretary shall specify in the 
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agreement of the qualifying veteran under sub-
section (d). 
(f) OBLIGATED SERVICE.—Each qualifying veteran 
who participates in the scholarship program shall, after 
completion of the graduate or post-graduate degree con-
cerned and as jointly provided by the Secretary of Vet-
erans Affairs and the Secretary of Defense in the agree-
ment of such qualifying veteran under subsection (d), per-
form service as follows: 
(1) Such service for the Department of Vet-
erans Affairs in connection with the furnishing of 
mental health services to veterans, and for such pe-
riod, as the Secretary of Veterans Affairs shall 
specify in the agreement. 
(2) Such service for the Department of Defense 
in connection with the furnishing of mental health 
services to members of the Armed Forces, and for 
such period, as the Secretary of Veterans Affairs 
shall, in consultation with the Secretary of Defense, 
specify in the agreement. 
(3) Such combination of service described by 
paragraphs (1) and (2), and for such period, as the 
Secretary of Veterans Affairs shall, in consultation 
with the Secretary of Defense, specify in the agree-
ment. 
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(g) BREACH OF AGREEMENT.—Each qualifying vet-
eran participating in the scholarship who fails to complete 
satisfactorily the terms of the agreement of such quali-
fying veteran under subsection (d), whether through fail-
ure to obtain the graduate or post-graduate degree con-
cerned or failure to perform service required of the quali-
fying veteran under subsection (f), shall be liable to the 
United States in such form and manner as the Secretary 
of Veterans Affairs shall, in consultation with the Sec-
retary of Defense, specify in the agreement. 
(h) CONTINGENCY OPERATION DEFINED.—In this 
section, the term ‘‘contingency operation’’ has the mean-
ing given that term in section 101(a)(13) of title 10, 
United States Code. 
TITLE VII—HEALTH CARE 
PROVISIONS 
Subtitle A—Improvements to 
Health Benefits 
SEC. 701. EXTENSION OF PROHIBITION ON INCREASES IN 
CERTAIN HEALTH CARE COSTS. 
(a) CHARGES UNDER CONTRACTS
FOR MEDICAL 
CARE.—Section 1097(e) of title 10, United States Code, 
is amended by striking ‘‘September 30, 2009’’ and insert-
ing ‘‘September 30, 2011’’. 
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(b) CHARGES
FOR
INPATIENT
CARE.—Section 
1086(b)(3) of such title is amended by striking ‘‘Sep-
tember 30, 2010’’ and inserting ‘‘September 30, 2011’’. 
SEC. 702. EXTENSION OF DEPENDENT COVERAGE UNDER 
TRICARE. 
(a) DEPENDENT COVERAGE.— 
(1) IN
GENERAL.—Chapter 55 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 1110b. TRICARE program: extension of dependent 
coverage 
‘‘(a) IN GENERAL.—In accordance with subsection 
(c), an individual described in subsection (b) shall be 
deemed to be a dependent (as described in section 
1072(2)(D) of this title) for purposes of TRICARE cov-
erage. 
‘‘(b) INDIVIDUAL DESCRIBED.—An individual de-
scribed in this subsection is an individual who— 
‘‘(1) with respect to a member or former mem-
ber of a uniformed service, is— 
‘‘(A) a child who has not attained the age 
of 26 and is not eligible to enroll in an eligible 
employer-sponsored plan (as defined in section 
5000A(f)(2) of the Internal Revenue Code of 
1986); or 
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‘‘(B) a 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 possession 
of the United States) for a period of at 
least 12 consecutive months; 
‘‘(ii) has not attained the age of 26; 
‘‘(iii) is not eligible to enroll in an eli-
gible employer-sponsored plan (as defined 
in section 5000A(f)(2) of the Internal Rev-
enue Code of 1986); 
‘‘(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 or 
incapacitation or under such other cir-
cumstances as the administering Secretary 
may by regulation prescribe; 
‘‘(v) is not otherwise a dependent of a 
member or a former member under any 
subparagraph of section 1072(2) of this 
title; and 
‘‘(vi) is not the child of a dependent 
who is described in subparagraph (D) or 
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(I) of section 1072(2) and is a covered 
beneficiary; and 
‘‘(2) meets other criteria specified in regula-
tions prescribed by the Secretary. 
‘‘(c) PREMIUM.—(1) The Secretary shall prescribe by 
regulation a premium for TRICARE coverage provided 
pursuant to this section to an individual described in sub-
section (b). 
‘‘(2) The monthly amount of the premium in effect 
for a month for TRICARE coverage pursuant to this sec-
tion shall be an amount not to exceed the cost of coverage 
that the Secretary determines on an appropriate actuarial 
basis. 
‘‘(3) The Secretary shall prescribe the requirements 
and procedures applicable to the payment of premiums 
under this subsection. 
‘‘(4) Amounts collected as premiums under this para-
graph shall be credited to the appropriation available for 
the Defense Health Program Account under section 1100 
of this title, shall be merged with sums in such Account 
that are available for the fiscal year in which collected, 
and shall be available under subsection (b) of such section 
for such fiscal year. 
‘‘(d) TRICARE COVERAGE DEFINED.—In this sec-
tion, the term ‘TRICARE coverage’ means health care to 
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which a dependent described in section 1072(2)(D) of this 
title is entitled under section 1076d, 1076e, 1079, 1086, 
or 1097 of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 1110a 
the following new item: 
‘‘1110b. TRICARE program: extension of dependent coverage.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 1086(c) of title 10, United States Code, is amend-
ed by inserting after ‘‘of this title’’ the following: ‘‘(or an 
individual described in section 1110b(b) who meets the re-
quirements for a dependent under paragraph (1) or (2) 
of such section 1076(b))’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2010. 
SEC. 703. SURVIVOR DENTAL BENEFITS. 
Paragraph (2) of section 1076a(k) of title 10, United 
States Code, is amended to read as follows: 
‘‘(2) Such term includes any such dependent of a 
member who dies— 
‘‘(A) while on active duty for a period of more 
than 30 days; or 
‘‘(B) while such member is a member of the 
Ready Reserve.’’. 
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SEC. 704. AURAL SCREENINGS FOR MEMBERS OF THE 
ARMED FORCES. 
(a) IN GENERAL.—Paragraph (2) of section 1074f(b) 
of title 10, United States Code, is amended by adding at 
the end the following new subparagraph: 
‘‘(D) An aural screening, including an assess-
ment of tinnitus.’’. 
(b) EFFECTIVE DATE.—Section 1074f(b)(2) of title 
10, United States Code, as added by subsection (a) of this 
section, shall apply to members of the Armed Forces who 
are deployed or return from deployment on or after the 
date that is 30 days after the date of the enactment of 
this Act. 
SEC. 705. TEMPORARY PROHIBITION ON INCREASE IN CO-
PAYMENTS UNDER RETAIL PHARMACY SYS-
TEM OF PHARMACY BENEFITS PROGRAM. 
During the period beginning on October 1, 2010, and 
ending on September 30, 2011, the cost sharing require-
ments established under paragraph (6) of section 
1074g(a) of title 10, United States Code, for pharma-
ceutical agents available through retail pharmacies cov-
ered by paragraph (2)(E)(ii) of such section may not ex-
ceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
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SEC. 706. SUICIDE AMONG MEMBERS OF THE INDIVIDUAL 
READY RESERVE AND INDIVIDUAL MOBILIZA-
TION AUGMENTEES. 
(a) FINDINGS.—Congress finds that a veteran who 
is a member of the Individual Ready Reserve (or who is 
an individual mobilization augmentee) and is not assigned 
to a unit that musters regularly and has an established 
support structure is less likely to be helped by existing 
suicide prevention programs carried out by the Secretary 
of Defense and the Secretary of Veterans Affairs. 
(b) IN GENERAL.— 
(1) SUICIDE PREVENTION.—Chapter 55 of title 
10, United States Code, is amended by adding after 
section 1074l the following new section: 
‘‘§ 1074m. Suicide prevention for members of the In-
dividual Ready Reserve and individual 
mobilization augmentees 
‘‘(a) IN GENERAL.—The Secretary of Defense shall 
ensure that each covered member receives a telephone call 
described in subsection (b) not less than once every 90 
days during the period in which— 
‘‘(1) the covered member is a member of the In-
dividual Ready Reserve; or 
‘‘(2) the Secretary determines that the covered 
member is an individual mobilization augmentee. 
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‘‘(b) COUNSELING CALL.—A telephone call described 
in this subsection is a call from properly trained personnel 
to determine the emotional, psychological, medical, and ca-
reer needs and concerns of the covered member. 
‘‘(c) REFERRAL.—(1) The personnel making a tele-
phone call described in subsection (b) shall refer a covered 
member identified as being at-risk of self-caused harm to 
the nearest emergency room for immediate evaluation and 
treatment by a qualified mental health care provider. 
‘‘(2) If a covered member is referred under paragraph 
(1), the Secretary shall confirm that the member has re-
ceived the evaluation and any necessary treatment.
‘‘(d) REPORTS.—Not later than January 31 of each 
year, beginning in 2011, the Secretary shall submit to 
Congress a report on the number of covered members who 
have been referred for counseling or mental health treat-
ment under this section, as well as the health and career 
status of such members. 
‘‘(e) COVERED MEMBER DEFINED.—In this section, 
the term ‘covered member’ means— 
‘‘(1) a member of the Individual Ready Reserve 
described in section 10144(b) of this title who has 
deployed to Afghanistan or Iraq in support of a con-
tingency operation; or 
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‘‘(2) a member of a reserve component who the 
Secretary determines is an individual mobilization 
augmentee who has deployed to Afghanistan or Iraq 
in support of a contingency operation.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 1074l 
the following new item: 
‘‘1074m. Suicide prevention for members of the Individual Ready Reserve and 
individual mobilization augmentees.’’. 
SEC. 707. PROVISION OF INFORMATION TO MEMBERS OF 
THE 
RESERVE 
COMPONENTS 
REGARDING 
HEALTH CARE BENEFITS. 
(a) PROVISION OF INFORMATION.—The Secretary of 
Defense shall ensure that each member of a reserve com-
ponent of the Armed Forces who is mobilized or demobi-
lized is provided, together with the orders providing for 
such mobilization or demobilization, a clear and com-
prehensive statement of the medical care and treatment 
to which such member is entitled under Federal law by 
reason of being so mobilized or demobilized. 
(b) FREQUENCY.—The statement required to be pro-
vided a member under subsection (a) upon a mobilization 
or demobilization shall be provided to the member each 
time the member is mobilized or demobilized, as the case 
may be. 
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(c) ELEMENTS.—The statement provided a member 
under subsection (a) shall include the following: 
(1) A clear, comprehensive statement of the 
medical care and treatment to which the member is 
entitled under Federal law by reason of being mobi-
lized or demobilized, as applicable, including— 
(A) the nature and range of the care and 
treatment to which the member is entitled; 
(B) the departments and agencies of the 
Federal Government that will provide such care 
and treatment; 
(C) the period for which such care and 
treatment will be so provided; and 
(D) the obligations, if any, of the member 
in connection with the receipt of such care and 
treatment. 
(2) A clear, comprehensive statement of the 
health care insurance available under Federal law 
for the member’s family, if any, by reason of the 
mobilization or demobilization of the member. 
(3) A clear, comprehensive description of the 
mental health assessments available to the member 
before, during, and after deployment pursuant to 
section 708 of the national defense authorization act 
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for fiscal year 2010 (Public Law 111–84; 123 Stat. 
2376; 10 U.S.C. 1074f note). 
(4) Such other matters as the Secretary con-
siders appropriate. 
Subtitle B—Health Care 
Administration 
SEC. 711. ADMINISTRATION OF TRICARE. 
Subsection (a) of section 1073 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘Except’’ and inserting ‘‘(1) Ex-
cept’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) Except as otherwise provided in this chapter, the 
Secretary of Defense shall have sole responsibility for ad-
ministering the TRICARE program and making any deci-
sion affecting such program.’’. 
SEC. 712. UPDATED TERMINOLOGY FOR THE ARMY MED-
ICAL SERVICE CORPS. 
Paragraph (5) of section 3068 of title 10, United 
States Code, is amended— 
(1) in subparagraph (A), by striking ‘‘Phar-
macy, Supply, and Administration’’ and inserting 
‘‘Administrative Health Services’’; 
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(2) in subparagraph (C), by striking ‘‘Sanitary 
Engineering’’ and inserting ‘‘Preventive Medicine 
Sciences’’; and 
(3) in subparagraph (D), by striking ‘‘Optom-
etry’’ and inserting ‘‘Clinical Health Sciences’’. 
SEC. 713. CLARIFICATION OF LICENSURE REQUIREMENTS 
APPLICABLE 
TO 
MILITARY 
HEALTH-CARE 
PROFESSIONALS WHO ARE MEMBERS OF THE 
NATIONAL GUARD PERFORMING DUTY WHILE 
IN TITLE 32 STATUS. 
Section 1094(d) of title 10, United States Code, is 
amended— 
(1) in paragraph (1), by inserting ‘‘or (3)’’ 
after ‘‘paragraph (2)’’; 
(2) in paragraph (2), by inserting ‘‘as being de-
scribed in this paragraph’’ after ‘‘paragraph (1)’’; 
and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) A health-care professional referred to in para-
graph (1) as being described in this paragraph is a mem-
ber of the National Guard who— 
‘‘(A) has a current license to practice medicine, 
osteopathic medicine, dentistry, or another health 
profession; and 
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‘‘(B) is performing training or duty under title 
32 in response to an actual or potential disaster.’’. 
SEC. 714. ANNUAL REPORT ON JOINT HEALTH CARE FA-
CILITIES OF THE DEPARTMENT OF DEFENSE 
AND THE DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) ANNUAL REPORTS.—Section 1073b of title 10, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(c) ANNUAL REPORT ON JOINT HEALTH CARE FA-
CILITIES OF THE DEPARTMENT OF DEFENSE AND THE 
DEPARTMENT OF VETERANS AFFAIRS.—(1) At the same 
time that the budget of the President is submitted under 
section 1105(a) of title 31 for each fiscal year, the Sec-
retary of Defense and the Secretary of Veterans Affairs 
shall jointly submit to the appropriate congressional com-
mittees a report on joint facilities. 
‘‘(2) Each report under paragraph (1) shall include 
the following: 
‘‘(A) A list of each military medical treatment 
facility of the Department of Defense that the Sec-
retary of Defense is considering as a potential joint 
facility. 
‘‘(B) A list of each medical facility of the De-
partment of Veterans Affairs that the Secretary of 
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Veterans Affairs is considering as a potential joint 
facility. 
‘‘(C) A list of each military medical treatment 
facility of the Department of Defense and medical 
facility of the Department of Veterans Affairs that 
has been established as a joint facility. 
‘‘(3)(A) Except as provided in subparagraph (B), no 
funds authorized to be appropriated or otherwise made 
available for fiscal year 2012 or any fiscal year thereafter 
for military medical treatment facilities of the Department 
of Defense may be obligated or expended to establish a 
joint facility unless both the military medical treatment 
facility of the Department of Defense and the medical fa-
cility of the Department of Veterans Affairs were included 
in a report under paragraph (1). 
‘‘(B) The Secretary of Defense may waive the limita-
tion in subparagraph (A) with respect to establishing a 
joint facility not included in a report under paragraph (1) 
if— 
‘‘(i) the Secretary and the Secretary of Vet-
erans Affairs jointly submit to the appropriate con-
gressional committees— 
‘‘(I) written certification that the Secre-
taries began considering such joint facility after 
the most recent report under subsection (a) was 
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submitted to the appropriate congressional com-
mittees; and 
‘‘(II) a report on such joint facility, includ-
ing the location and the estimated cost; and 
‘‘(ii) a period of 30 days has elapsed after the 
date on which the certification and report under 
clause (i) are submitted to the appropriate congres-
sional committees. 
‘‘(4) In this subsection: 
‘‘(A) The term ‘appropriate congressional com-
mittees’ means— 
‘‘(i) the congressional defense committees; 
‘‘(ii) the Committee on Veterans’ Affairs of 
the House of Representatives; and 
‘‘(iii) the Committee on Veterans’ Affairs 
of the Senate. 
‘‘(B) The term ‘joint facility’ means a military 
medical treatment facility of the Department of De-
fense and a medical facility of the Department of 
Veterans Affairs that are combined, operated jointly, 
or otherwise operated in such a manner that a facil-
ity of one department is operating in or with a facil-
ity of the other department. 
‘‘(C) The term ‘medical facility’, with respect to 
a facility of the Department of Veterans Affairs, has 
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the meaning given that term in section 8101(3) of 
title 38.’’. 
(b) TITLE 38.— 
(1) IN GENERAL.—Subchapter IV of chapter 81 
of title 38, United States Code, is amended by add-
ing at the end the following new section: 
‘‘§ 8159. Limitation on establishment of joint facilities 
of the Department of Veterans Affairs 
and the Department of Defense 
‘‘(a) LIMITATION.—Except as provided in subsection 
(b), no funds authorized to be appropriated or otherwise 
made available for fiscal year 2012 or any fiscal year 
thereafter for medical facilities of the Department of Vet-
erans Affairs may be obligated or expended to establish 
a joint facility unless both the medical facility of the De-
partment of Veterans Affairs and the military medical 
treatment facility of the Department of Defense were in-
cluded in a report submitted by the Secretary of Veterans 
Affairs and the Secretary of Defense to the appropriate 
congressional committees under section 1073b(c) of title 
10. 
‘‘(b) WAIVER.—The Secretary of Veterans Affairs 
may waive the limitation in subsection (a) with respect to 
establishing a joint facility not included in a report under 
section 1073b(c) of title 10 if— 
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‘‘(1) the Secretary and the Secretary of Defense 
jointly submit to the appropriate congressional com-
mittees— 
‘‘(A) written certification that the Secre-
taries began considering such joint facility after 
the most recent report under section 1073b(c) 
of title 10 was submitted to the appropriate 
congressional committees; and 
‘‘(B) a report on such joint facility, includ-
ing the location and the estimated cost; and 
‘‘(2) a period of 30 days has elapsed after the 
date on which the certification and report under 
paragraph (1) are submitted to the appropriate con-
gressional committees. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘appropriate congressional com-
mittees’ means— 
‘‘(A) the congressional defense committees 
(as defined in section 101(a)(16) of title 10); 
‘‘(B) the Committee on Veterans’ Affairs 
of the House of Representatives; and 
‘‘(C) the Committee on Veterans’ Affairs 
of the Senate. 
‘‘(2) The term ‘joint facility’ means a military 
medical treatment facility of the Department of De-
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fense and a medical facility of the Department of 
Veterans Affairs that are combined, operated jointly, 
or otherwise operated in such a manner that a facil-
ity of one department is operating in or with a facil-
ity of the other department. 
‘‘(3) The term ‘medical facility’ has the mean-
ing given that term in section 8101(3) of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 8158 
the following new item: 
‘‘8159. Limitation on establishment of joint facilities of the Department of Vet-
erans Affairs and the Department of Defense.’’. 
SEC. 715. IMPROVEMENTS TO OVERSIGHT OF MEDICAL 
TRAINING FOR MEDICAL CORPS OFFICERS. 
(a) REVIEW OF TRAINING PROGRAMS FOR MEDICAL 
OFFICERS.—The Secretary of Defense shall conduct a re-
view of training programs for medical officers (as defined 
in section 101(b)(14) of title 10, United States Code) to 
ensure that the academic and military performance of 
such officers has been completely documented in military 
personnel records. The programs reviewed shall include, 
at a minimum, the following: 
(1) Programs at the Uniformed Services Uni-
versity of the Health Sciences that award a medical 
doctor degree. 
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(2) Selected residency programs at military 
medical treatment facilities, as determined by the 
Secretary, to include at least one program in each 
of the specialties of— 
(A) anesthesiology; 
(B) emergency medicine; 
(C) family medicine; 
(D) general surgery; 
(E) neurology; 
(F) obstetrics/gynecology; 
(G) pathology; 
(H) pediatrics; and 
(I) psychiatry. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a re-
port on the findings of the review under subsection (a). 
SEC. 716. STUDY ON REIMBURSEMENT FOR COSTS OF 
HEALTH CARE PROVIDED TO INELIGIBLE IN-
DIVIDUALS. 
(a) STUDY.—The Secretary of Defense shall conduct 
a study on the costs incurred by the United States on be-
half of individuals— 
(1) who are not covered beneficiaries; and 
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(2) who receive health care services from a 
health care provider under the TRICARE program. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report on the 
study under subsection (a), including recommendations for 
legislative action that the Secretary considers appropriate 
to— 
(1) prevent individuals who are not covered 
beneficiaries from receiving health care services from 
a health care provider under the TRICARE pro-
gram; and 
(2) recoup the costs of such health care from 
such individuals. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘covered beneficiary’’ has the 
meaning given that term in section 1072(5) of title 
10, United States Code. 
(2) The term ‘‘TRICARE program’’ has the 
meaning given that term in section 1072(7) of such 
title. 
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SEC. 717. LIMITATION ON TRANSFER OF FUNDS TO DE-
PARTMENT OF DEFENSE-DEPARTMENT OF 
VETERANS AFFAIRS MEDICAL FACILITY DEM-
ONSTRATION PROJECT. 
The Secretary of Defense may not transfer any funds 
authorized to be appropriated by this Act for fiscal year 
2011 to the Joint Department of Defense–Department of 
Veterans Affairs Medical Facility Demonstration Fund es-
tablished in section 1704 of the National Defense Author-
ization Act for Fiscal Year 2010 (Public Law 111–84; 123 
Stat. 2571) unless, before any such transfer— 
(1) the Secretary submits to the congressional 
defense committees, the Committee on Veterans’ Af-
fairs of the House of Representatives, and the Com-
mittee on Veterans’ Affairs of the Senate a report 
providing— 
(A) notice of the proposed transfer; and 
(B) the exact amount and source of funds 
to be transferred; and 
(2) a period of 30 days has elapsed (excluding 
days of which either House of Congress is not in 
session) after the report is submitted under para-
graph (1). 
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SEC. 718. ENTERPRISE RISK ASSESSMENT OF HEALTH IN-
FORMATION TECHNOLOGY PROGRAMS. 
(a) STUDY.—The Secretary of Defense shall conduct 
an enterprise risk assessment methodology study of all 
health information technology programs of the Depart-
ment of Defense. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report con-
taining the results of the study required under subsection 
(a). 
Subtitle C—Other Matters 
SEC. 721. IMPROVING AURAL PROTECTION FOR MEMBERS 
OF THE ARMED FORCES. 
(a) IN GENERAL.—In accordance with section 721 of 
the Duncan Hunter National Defense Authorization Act 
for Fiscal Year 2009 (Public Law 110–417; 122 Stat. 
4506), the Secretary of Defense shall examine methods 
to improve the aural protection for members of the Armed 
Forces in combat. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to Congress a report on the methods to improve aural pro-
tection examined under subsection (a). 
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SEC. 722. COMPREHENSIVE POLICY ON NEUROCOGNITIVE 
ASSESSMENT 
BY 
THE 
MILITARY 
HEALTH 
CARE SYSTEM. 
(a) COMPREHENSIVE POLICY REQUIRED.—Not later 
than September 30, 2011, the Secretary of Defense shall 
develop and implement a comprehensive policy on pre- and 
post-deployment neurocognitive assessment. 
(b) SCOPE OF POLICY.—The policy required by sub-
section (a) shall cover each of the following: 
(1) Require the administration of the same pre- 
deployment and post-deployment neurocognitive as-
sessments to all members of the military who are 
preparing to deploy or have returned from deploy-
ment. 
(2) Require the standardization of testing pro-
cedures for neurocognitive assessments. 
(3) Provide for follow-up neurocognitive assess-
ments 
as 
needed 
to 
create 
a 
longitudinal 
neurocognitive assessment record for the on-going 
care of members of the Armed Forces. 
(4) Ensure the neurocognitive assessment re-
sults and reports be made available to members of 
the Armed Forces and veterans for their personal 
use in health management. 
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(c) UPDATES.—The Secretary shall revise the policy 
required by subsection (a) on a periodic basis in accord-
ance with experience and evolving best practice guidelines. 
(d) ANNUAL REPORT.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, and on Sep-
tember 30 of each year thereafter, the Secretary of 
Defense shall submit to the congressional defense 
committees a report on the policy required by sub-
section (a). 
(2) ELEMENTS.—Each report required by para-
graph (1) shall include the following: 
(A) A description of the policy imple-
mented under subsection (b), and any revisions 
to such policy under subsection (d). 
(B) A description of the performance 
measures used to determine the effectiveness of 
the 
policy 
in 
improving 
the 
use 
of 
neurocognitive assessments throughout the De-
partment of Defense. 
(e) COGNITIVE IMPAIRMENT SCREENINGS.—Until 
the comprehensive policy under subsection (a) is imple-
mented, the Secretary shall use the same cognitive screen-
ing tool for pre-deployment and post-deployment screening 
to compare new data to previous baseline data for the pur-
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poses of detecting cognitive impairment (as described in 
section 1618(e)(6) of the Wounded Warrior Act (title XVI 
of Public Law 110–181; 10 U.S.C. 1071 note)) for each 
member of the Armed Forces— 
(1) who returns from a deployment in support 
of a contingency operation; and 
(2) who completed a neurocognitive assessment 
prior to the implementation of a new pre-deployment 
and post-deployment screening tool. 
(f) CONCLUSION OF STUDIES ON COGNITIVE ASSESS-
MENT TOOLS.—Not later than September 30, 2011, the 
Secretary of Defense shall complete any outstanding com-
parative studies on the effectiveness of various cognitive 
screening tools, including existing tools used for pre-de-
ployment and post-deployment screenings, for the imple-
mentation of the comprehensive policy under subsection 
(a). 
SEC. 723. NATIONAL CASUALTY CARE RESEARCH CENTER. 
(a) DESIGNATION.—Not later than October 1, 2011, 
the Secretary of Defense may designate a center to be 
known as the ‘‘National Casualty Care Research Center’’ 
(in this section referred to as the ‘‘Center’’), which shall 
consist of the program known as the combat casualty care 
research program of the Army Medical Research and Ma-
teriel Command. 
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(b) DIRECTOR.—The Secretary, in consultation with 
the commanding general of the Army Medical Research 
and Materiel Command, shall appoint a director of the 
Center. 
(c) ACTIVITIES OF THE CENTER.—In addition to 
other functions performed by the combat casualty care re-
search program, the Center shall— 
(1) provide a public-private partnership for 
funding clinical and experimental studies in combat 
injury; 
(2) integrate laboratory and clinical research to 
hasten improvements in care to members of the 
Armed Forces who are injured; 
(3) ensure that data from both military and ci-
vilian entities, including the Joint Theater Trauma 
Registry and the National Trauma Data Bank, are 
optimally used to establish research agendas and 
measure improvements in outcomes; 
(4) fund the full range of injury research and 
evaluation, including— 
(A) laboratory, translational, and clinical 
research; 
(B) point of wounding and pre-hospital 
care; 
(C) early resuscitative management; 
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(D) initial and definitive surgical care; and 
(E) rehabilitation and reintegration into 
society; and 
(5) coordinate the collaboration of civilian and 
military institutions conducting trauma research. 
SEC. 724. REPORT ON FEASIBILITY OF STUDY ON BREAST 
CANCER AMONG FEMALE MEMBERS OF THE 
ARMED FORCES. 
(a) REPORT.—Not later than March 1, 2011, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report on the feasibility of conducting 
a case-control study described in subsection (b). 
(b) CASE-CONTROL STUDY.—A case-control study de-
scribed in this subsection is a case-control study on the 
incidence of breast cancer among covered members in 
order to determine whether covered members were at an 
elevated risk of having breast cancer, including the fol-
lowing: 
(1) A determination of the number of covered 
members who have been diagnosed with breast can-
cer. 
(2) A sample of covered members who have not 
been diagnosed with breast cancer who could serve 
as an appropriate comparison group. 
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(3) A determination of demographic informa-
tion and potential breast cancer risk factors regard-
ing covered members who are included in the study, 
including— 
(A) race; 
(B) ethnicity; 
(C) age; 
(D) possible exposure to hazardous ele-
ments or chemical or biological agents (includ-
ing any vaccines) and where such exposure oc-
curred; 
(E) known breast cancer risk factors, in-
cluding familial, reproductive, and anthropo-
metric parameters; 
(F) the locations of duty stations that such 
member was assigned; 
(G) the locations in which such member 
was deployed; and 
(H) the geographic area of residence prior 
to deployment. 
(4) An analysis of the clinical characteristics of 
breast cancer diagnosed in covered members (includ-
ing the stage, grade, and other details of the can-
cer). 
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(5) Other information the Secretary considers 
appropriate. 
(c) COVERED MEMBERS DEFINED.—In this section, 
the term ‘‘covered members’’ means female members of 
the Armed Forces (including members of the National 
Guard and reserve components) who served in Operation 
Enduring Freedom or Operation Iraqi Freedom. 
SEC. 725. ASSESSMENT OF POST-TRAUMATIC STRESS DIS-
ORDER BY MILITARY OCCUPATION. 
(a) ASSESSMENT.—The Secretary of Defense shall 
conduct an assessment of post-traumatic stress disorder 
incidence by military occupation, including identification 
of military occupations with a high incidence of such dis-
order. 
(b) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report on the 
assessment under subsection (a). 
SEC. 726. VISITING NIH SENIOR NEUROSCIENCE FELLOW-
SHIP PROGRAM. 
(a) AUTHORITY TO ESTABLISH.—The Secretary of 
Defense may establish a program to be known as the Vis-
iting NIH Senior Neuroscience Fellowship Program at— 
(1) the Defense Advanced Research Projects 
Agency; and 
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(2) the Defense Center of Excellence for Psy-
chological Health and Traumatic Brain Injury. 
(b) ACTIVITIES OF THE PROGRAM.—In establishing 
the Visiting NIH Senior Neuroscience Fellowship Pro-
gram under subsection (a), the Secretary shall require the 
program to— 
(1) provide a partnership between the National 
Institutes of Health and the Defense Advanced Re-
search Projects Agency to enable identification and 
funding of the broadest range of innovative, highest 
quality clinical and experimental neuroscience stud-
ies for the benefit of members of the Armed Forces; 
(2) provide a partnership between the National 
Institutes of Health and the Defense Center of Ex-
cellence for Psychological Health and Traumatic 
Brain Injury that will enable identification and 
funding of clinical and experimental neuroscience 
studies for the benefit of members of the Armed 
Forces; 
(3) use the results of the studies described in 
paragraph (1) and (2) to enhance the mission of the 
National Institutes of Health for the benefit of the 
public; and 
(4) provide a military and civilian collaborative 
environment for neuroscience-based medical prob-
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lem-solving in critical areas affecting both military 
and civilian life, particularly post-traumatic stress 
disorder. 
(c) PERIOD OF FELLOWSHIP.—The period of any fel-
lowship under the Program shall not last more than two 
years and shall not continue unless agreed upon by the 
parties concerned. 
SEC. 727. PILOT PROGRAM ON PAYMENT FOR TREATMENT 
OF MEMBERS OF THE ARMED FORCES AND 
VETERANS FOR TRAUMATIC BRAIN INJURY 
AND POST-TRAUMATIC STRESS DISORDER. 
(a) PAYMENT PROCESS.—The Secretary of Defense 
and the Secretary of Veterans Affairs shall carry out a 
five-year pilot program under which each such Secretary 
shall establish a process through which each Secretary 
shall provide payment for treatments (including diagnostic 
testing) of traumatic brain injury or post-traumatic stress 
disorder received by members of the Armed Forces and 
veterans in health care facilities other than military treat-
ment facilities or Department of Veterans Affairs medical 
facilities. Such process shall provide that payment be 
made directly to the health care facility furnishing the 
treatment. 
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(b) CONDITIONS FOR PAYMENT.—The approval by a 
Secretary for payment for a treatment pursuant to sub-
section (a) shall be subject to the following conditions: 
(1) Any drug or device used in the treatment 
must be approved or cleared by the Food and Drug 
Administration for any purpose. 
(2) The treatment or study protocol used in 
treating the member or veteran must have been ap-
proved by an institutional review board operating in 
accordance with regulations issued by the Secretary 
of Health and Human Services. 
(3) The approved treatment or study protocol 
(including any patient disclosure requirements) must 
be used by the health care provider delivering the 
treatment. 
(4) The patient receiving the treatment or 
study protocol must demonstrate an improvement as 
a result of the treatment on one or more of the fol-
lowing: 
(A) Standardized independent pre-treat-
ment and post-treatment neuropsychological 
testing. 
(B) Accepted survey instruments. 
(C) Neurological imaging. 
(D) Clinical examination. 
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(5) The patient receiving the treatment or 
study protocol must be receiving the treatment vol-
untarily. 
(6) The patient receiving the treatment may not 
be a retired member of the uniformed services or of 
the Armed Forces who is entitled to benefits under 
part A, or eligible to enroll under part B, of title 
XVIII of the Social Security Act. 
(c) ADDITIONAL RESTRICTIONS PROHIBITED.—Ex-
cept as provided in this subsection (b), no restriction or 
condition for reimbursement may be placed on any health 
care provider that is operating lawfully under the laws of 
the State in which the provider is located with respect to 
the receipt of payment under this Act. 
(d) PAYMENT DEADLINE.—The Secretary of Defense 
and the Secretary of Veterans Affairs shall make a pay-
ment for a treatment or study protocol pursuant to sub-
section (a) not later than 30 days after a member of the 
Armed Forces or veteran (or health care provider on be-
half of such member or veteran) submits to the Secretary 
documentation regarding the treatment or study protocol. 
The Secretary of Defense and the Secretary of Veterans 
Affairs shall ensure that the documentation required 
under this subsection may not be an undue burden on the 
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member of the Armed Forces or veteran or on the health 
care provider. 
(e) PAYMENT SOURCE.—Subsection (c)(1) of section 
1074 of title 10, United States Code, shall apply with re-
spect to the payment by the Secretary of Defense for 
treatment or study protocols pursuant to subsection (a) 
of traumatic brain injury and post-traumatic stress dis-
order received by members of the Armed Forces. 
(f) PAYMENT AMOUNT.—A payment under this Act 
shall be made at the equivalent Centers for Medicare and 
Medicaid Services reimbursement rate in effect for appro-
priate treatment codes for the State or territory in which 
the treatment or study protocol is received. If no such rate 
is in effect, payment shall be made at a fair market rate, 
as determined by the Secretary of Defense, in consultation 
with the Secretary of Health and Human Services, with 
respect to a patient who is a member of the Armed Forces 
or the Secretary of Veterans Affairs with respect to a pa-
tient who is a veteran. 
(g) DATA COLLECTION AND AVAILABILITY.— 
(1) IN
GENERAL.—The Secretary of Defense 
and the Secretary of Veterans Affairs shall jointly 
develop and maintain a database containing data 
from each patient case involving the use of a treat-
ment under this section. The Secretaries shall en-
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sure that the database preserves confidentiality and 
be made available only— 
(A) for third-party payer examination; 
(B) to the appropriate congressional com-
mittees and employees of the Department of 
Defense, the Department of Veterans Affairs, 
the Department of Health and Human Services, 
and appropriate State agencies; and 
(C) to the primary investigator of the insti-
tutional review board that approved the treat-
ment or study protocol, in the case of data re-
lating to a patient case involving the use of 
such treatment or study protocol. 
(2) ENROLLMENT IN INSTITUTIONAL REVIEW 
BOARD STUDY.—In the case of a patient enrolled in 
a registered institutional review board study, results 
may be publically distributable in accordance with 
the regulations prescribed pursuant to the Health 
Insurance Portability and Accountability Act of 
1996 (Public Law 104–191) and other regulations 
and practices in effect as of the date of the enact-
ment of this Act. 
(3) 
QUALIFIED
INSTITUTIONAL
REVIEW 
BOARDS.—The Secretary of Defense and the Sec-
retary of Veterans Affairs shall each ensure that the 
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Internet website of their respective departments in-
cludes a list of all civilian institutional review board 
studies that have received a payment under this Act. 
(h) ASSISTANCE FOR MEMBERS TO OBTAIN TREAT-
MENT.— 
(1) ASSIGNMENT TO TEMPORARY DUTY.—The 
Secretary of a military department may assign a 
member of the Armed Forces under the jurisdiction 
of the Secretary to temporary duty or allow the 
member a permissive temporary duty in order to 
permit the member to receive treatment or study 
protocol for traumatic brain injury or post-traumatic 
stress disorder, for which payments shall be made 
under subsection (a), at a location beyond reason-
able commuting distance of the member’s permanent 
duty station. 
(2) PAYMENT OF PER DIEM.—A member who is 
away from the member’s permanent station may be 
paid a per diem in lieu of subsistence in an amount 
not more than the amount to which the member 
would be entitled if the member were performing 
travel in connection with a temporary duty assign-
ment. 
(3) GIFT RULE WAIVER.—Notwithstanding any 
rule of any department or agency with respect to 
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ethics or the receipt of gifts, any assistance provided 
to a member of the Armed Forces with a service- 
connected injury or disability for travel, meals, or 
entertainment incidental to receiving treatment or 
study protocol under this Act, or for the provision 
of such treatment or study protocol, shall not be 
subject to or covered by any such rule. 
(i) RETALIATION PROHIBITED.—No retaliation may 
be made against any member of the Armed Forces or vet-
eran who receives treatment or study protocol as part of 
registered institutional review board study carried out by 
a civilian health care practitioner. 
(j) TREATMENT OF UNIVERSITY AND NATIONALLY 
ACCREDITED
INSTITUTIONAL
REVIEW
BOARDS.—For 
purposes of this Act, a university-affiliated or nationally 
accredited institutional review board shall be treated in the 
same manner as a Government institutional review board. 
(k) MEMORANDA OF UNDERSTANDING.—The Sec-
retary of Defense and the Secretary of Veterans Affairs 
shall seek to expeditiously enter into memoranda of under-
standings with civilian institutional review boards de-
scribed in subsection (j) for the purpose of providing for 
members of the Armed Forces and veterans to receive 
treatment carried out by civilian health care practitioners 
under a treatment or study protocol approved by and 
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under the oversight of civilian institutional review boards 
that would qualify for payment under this Act. 
(l) OUTREACH REQUIRED.— 
(1) OUTREACH TO VETERANS.—The Secretary 
of Veterans Affairs shall notify each veteran with a 
service-connected injury or disability of the oppor-
tunity to receive treatment or study protocol pursu-
ant to this Act. 
(2) OUTREACH TO MEMBERS OF THE ARMED 
FORCES.—The Secretary of Defense shall notify 
each member of the Armed Forces with a service- 
connected injury or disability of the opportunity to 
receive treatment or study protocol pursuant to this 
Act. 
(m) REPORT TO CONGRESS.—Not later than 30 days 
after the last day of each fiscal year during which the Sec-
retary of Defense and the Secretary of Veterans Affairs 
are authorized to make payments under this Act, the Sec-
retaries shall jointly submit to Congress an annual report 
on the implementation of this Act. Such report shall in-
clude each of the following for that fiscal year: 
(1) The number of individuals for whom the 
Secretary has provided payments under this Act. 
(2) The condition for which each such indi-
vidual receives treatment for which payment is pro-
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vided under this Act and the success rate of each 
such treatment. 
(3) Treatment methods that are used by enti-
ties receiving payment provided under this Act and 
the respective rate of success of each such method. 
(4) The recommendations of the Secretaries 
with respect to the integration of treatment methods 
for which payment is provided under this Act into 
facilities of the Department of Defense and Depart-
ment of Veterans Affairs. 
(n) TERMINATION.—The authority to make a pay-
ment under this Act shall terminate on the date that is 
five years after the date of the enactment of this Act. 
(o) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this Act 
$10,000,000 for each fiscal year during which the Sec-
retary of Veterans Affairs and the Secretary of Defense 
are authorized to make payments under this Act. 
SEC. 728. POST-TRAUMATIC STRESS DISORDER COUN-
SELING FOR CIVILIAN VICTIMS OF THE FORT 
HOOD SHOOTING AND OTHER SIMILAR INCI-
DENTS. 
The Secretary of Defense shall make available to each 
civilian victim of a shooting on a military installation in 
the United States, including the shooting at Fort Hood 
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on November 5, 2009, extensive counseling for post-trau-
matic stress disorder. 
SEC. 729. SENSE OF CONGRESS CONCERNING THE IMPLE-
MENTATION 
OF 
THE 
CONGRESSIONALLY- 
MANDATED RECOMMENDATIONS OF THE IN-
STITUTE OF MEDICINE STUDY. 
(a) FINDINGS.—Congress finds the following: 
(1) Section 717 of the National Defense Au-
thorization Act for Fiscal Year 2008 (Public Law 
110–181; 10 U.S.C. 1073 note) directed the Sec-
retary of Defense to enter into a contract with the 
Institute of Medicine of the National Academy of 
Sciences to conduct a study and make recommenda-
tions regarding the credentials, preparation, and 
training of licensed mental health counselors. 
(2) In the study, the Institute of Medicine of 
the National Academy of Sciences recommends per-
mitting counselors to practice independently under 
the TRICARE program. 
(3) In addition, the Institute of Medicine of the 
National Academy of Sciences recommends that 
TRICARE implement a comprehensive quality man-
agement system for all of its mental health profes-
sionals. 
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(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of Defense should implement the 
requirements of subsection (a) of such section 717 by not 
later than December 31, 2010, because such implementa-
tion will increase the urgently needed mental health staff 
of the Department of Defense and ensure that members 
of the Armed Forces will receive timely and confidential 
post-deployment screenings with a mental health profes-
sional. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. DISCLOSURE TO LITIGATION SUPPORT CONTRAC-
TORS. 
(a) IN GENERAL.—Section 2320 of title 10, United 
States Code, is amended— 
(1) in subsection (c)(2)— 
(A) by inserting ‘‘or covered litigation sup-
port contractor’’ after ‘‘covered Government 
support contractor’’; and 
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(B) by inserting after ‘‘oversight of’’ the 
following: ‘‘, or preparation for litigation relat-
ing to,’’; and 
(2) by inserting after subsection (f) the fol-
lowing: 
‘‘(g) In this section, the term ‘covered litigation sup-
port contractor’ means a contractor (including an expert 
or technical consultant) under contract with the Depart-
ment of Defense to provide litigation support, which con-
tractor executes a contract with the Government agreeing 
to and acknowledging— 
‘‘(1) that proprietary or nonpublic technical 
data furnished will be accessed and used only for the 
purposes stated in that contract; 
‘‘(2) that the covered litigation support con-
tractor will take all reasonable steps to protect the 
proprietary and nonpublic nature of the technical 
data furnished to the covered litigation support con-
tractor; and 
‘‘(3) that such technical data provided to the 
covered litigation support contractor under the au-
thority of this section shall not be used by the cov-
ered litigation support contractor to compete against 
the third party for Government or non-Government 
contracts.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date that is 120 
days after the date of the enactment of this Act. 
SEC. 802. DESIGNATION OF F135 AND F136 ENGINE DEVEL-
OPMENT AND PROCUREMENT PROGRAMS AS 
MAJOR SUBPROGRAMS. 
(a) DESIGNATION AS MAJOR SUBPROGRAMS.—Not 
later than 30 days after the date of the enactment of this 
Act, the Secretary of Defense shall designate each of the 
engine development and procurement programs described 
in subsection (b) as a major subprogram of the F–35 
Lightning II aircraft major defense acquisition program, 
in accordance with section 2430a of title 10, United States 
Code. 
(b) DESCRIPTION.—For purposes of subsection (a), 
the engine development and procurement programs are 
the following: 
(1) The F135 engine development and procure-
ment program. 
(2) The F136 engine development and procure-
ment program. 
(c) ORIGINAL BASELINE.—For purposes of reporting 
requirements referred to in section 2430a(b) of title 10, 
United States Code, for the major subprograms des-
ignated under subsection (a), the Secretary shall use the 
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Milestone B decision for each subprogram as the original 
baseline for the subprogram. 
(d) 
ACTIONS
FOLLOWING
CRITICAL
COST 
GROWTH.— 
(1) IN GENERAL.—Subject to paragraph (2), to 
the extent that the Secretary elects to restructure 
the F–35 Lightning II aircraft major defense acqui-
sition program subsequent to a reassessment and ac-
tions required by subsections (a) and (c) of section 
2433a of title 10, United States Code, during fiscal 
year 2010, and also conducts such reassessment and 
actions with respect to the F135 and F136 engine 
development and procurement programs (including 
related reporting based on the original baseline as 
defined in subsection (c)), the requirements of sec-
tion 2433a of such title with respect to a major sub-
program designated under subsection (a) shall be 
considered to be met with respect to the major sub-
program. 
(2) LIMITATION.—Actions taken in accordance 
with paragraph (1) shall be considered to meet the 
requirements of section 2433a of title 10, United 
States Code, with respect to a major subprogram 
designated under subsection (a) only to the extent 
that designation as a major subprogram would re-
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quire the Secretary of Defense to conduct a reas-
sessment and take actions pursuant to such section 
2433a for such a subprogram upon enactment of 
this Act. The requirements of such section 2433a 
shall not be considered to be met with respect to 
such a subprogram in the event that additional pro-
grammatic changes, following the date of the enact-
ment of this Act, cause the program acquisition unit 
cost or procurement unit cost of such a subprogram 
to increase by a percentage equal to or greater than 
the critical cost growth threshold (as defined in sec-
tion 2433(a)(5) of such title) for the subprogram. 
SEC. 803. CONFORMING AMENDMENTS RELATING TO IN-
CLUSION 
OF 
MAJOR 
SUBPROGRAMS 
TO 
MAJOR DEFENSE ACQUISITION PROGRAMS 
UNDER VARIOUS ACQUISITION-RELATED RE-
QUIREMENTS. 
(a) 
CONFORMING
AMENDMENTS
TO
SECTION 
2366a.—Section 2366a of such title is amended— 
(1) in subsections (a), (b)(1), and (b)(2)— 
(A) by inserting ‘‘or designated major sub-
program’’ after ‘‘major defense acquisition pro-
gram’’; and 
(B) by inserting ‘‘or subprogram’’ after 
‘‘program’’ each place it appears (other than 
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after ‘‘major defense acquisition program’’, 
after ‘‘space program’’, before ‘‘requirements’’, 
and before ‘‘manager’’); and 
(2) in subsection (c)— 
(A) by redesignating paragraphs (2), (3), 
(4), and (5) as paragraphs (3), (4), (5), and 
(6), respectively; and 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense ac-
quisition program as designated under section 
2430a(a)(1) of this title.’’. 
(b) 
CONFORMING
AMENDMENTS
TO
SECTION 
2366b.—Section 2366b of such title is amended— 
(1) in subsections (a), (b)(1), and (c)(1)— 
(A) by inserting ‘‘or designated major sub-
program’’ after ‘‘major defense acquisition pro-
gram’’; and 
(B) by inserting ‘‘or subprogram’’ after 
‘‘program’’ each place it appears (other than 
after ‘‘major defense acquisition program’’, 
after ‘‘future-years defense program’’, and after 
‘‘space program’’); and 
(2) in subsection (g)— 
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(A) by redesignating paragraphs (2), (3), 
and (4) as paragraphs (3), (4), and (5), respec-
tively; and 
(B) by inserting after paragraph (1) the 
following new paragraph (2): 
‘‘(2) The term ‘designated major subprogram’ 
means a major subprogram of a major defense ac-
quisition program as designated under section 
2430a(a)(1) of this title.’’. 
(c) 
CONFORMING
AMENDMENTS
TO
SECTION 
2399.—Subsection (a) of section 2399 of such title is 
amended to read as follows: 
‘‘(a) CONDITION FOR PROCEEDING BEYOND LOW- 
RATE INITIAL PRODUCTION.—(1) The Secretary of De-
fense shall provide that a covered major defense acquisi-
tion program or a covered designated major subprogram 
may not proceed beyond low-rate initial production until 
initial operational test and evaluation of the program or 
subprogram is completed. 
‘‘(2) In this subsection: 
‘‘(A) The term ‘covered major defense acquisi-
tion program’ means a major defense acquisition 
program that involves the acquisition of a weapon 
system that is a major system within the meaning 
of that term in section 2302(5) of this title. 
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‘‘(B) The term ‘covered designated major sub-
program’ means a major subprogram designated 
under section 2430a(a)(1) of this title that is a 
major subprogram of a covered major defense acqui-
sition program.’’. 
(d) 
CONFORMING
AMENDMENTS
TO
SECTION 
2434.—Section 2434(a) of such title is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of 
Defense’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) The provisions of this section shall apply to any 
major subprogram of a major defense acquisition program 
(as designated under section 2430a(a)(1) of this title) in 
the same manner as those provisions apply to a major de-
fense acquisition program, and any reference in this sec-
tion to a program shall be treated as including such a sub-
program.’’. 
SEC. 804. ENHANCEMENT OF DEPARTMENT OF DEFENSE 
AUTHORITY TO RESPOND TO COMBAT AND 
SAFETY EMERGENCIES THROUGH RAPID AC-
QUISITION AND DEPLOYMENT OF URGENTLY 
NEEDED SUPPLIES. 
(a) REQUIREMENT TO ESTABLISH PROCEDURES.— 
Subsection (a) of section 806 of the Bob Stump National 
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Defense Authorization Act for Fiscal Year 2003 (10 
U.S.C. 2302 note) is amended by striking ‘‘items that 
are—’’ and inserting ‘‘supplies that are—’’. 
(b) ISSUES TO BE ADDRESSED.—Subsection (b) of 
such section is amended— 
(1) in paragraph (1)(B), by striking ‘‘items’’ 
and inserting ‘‘supplies’’; and 
(2) in paragraph (2)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘items’’ and inserting ‘‘sup-
plies’’; 
(B) in subparagraph (A), by striking ‘‘an 
item’’ and inserting ‘‘the supplies’’; 
(C) in subparagraph (B), by striking ‘‘an 
item’’ and inserting ‘‘the supplies’’; and 
(D) in subparagraph (C), by inserting 
‘‘and utilization’’ after ‘‘deployment’’. 
(c) RESPONSE
TO COMBAT EMERGENCIES.—Sub-
section (c) of such section is amended— 
(1) by striking ‘‘equipment’’ each place it ap-
pears and inserting ‘‘supplies’’; 
(2) by striking ‘‘combat capability’’ each place 
it appears; 
(3) by inserting ‘‘, or could result,’’ after ‘‘that 
has resulted’’ each place it appears; 
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(4) by striking ‘‘fatalities’’ each place it appears 
and inserting ‘‘casualties’’; 
(5) in paragraphs (1) and (2)(A), by striking 
‘‘is’’ each place it appears and inserting ‘‘are’’; 
(6) in paragraph (3)— 
(A) by striking ‘‘The authority of this sec-
tion may not be used to acquire equipment in 
an 
amount 
aggregating 
more 
than 
$100,000,000 during any fiscal year.’’; and 
(B) by inserting ‘‘in an amount aggre-
gating no more than $200,000,000’’ after ‘‘for 
that fiscal year’’; 
(7) in paragraph (4), by striking ‘‘Each such 
notice’’ and inserting ‘‘For each such determination, 
the notice under the preceding sentence’’; and 
(8) in paragraph (5), by striking ‘‘that equip-
ment’’ and inserting ‘‘those supplies’’. 
(d) WAIVER OF CERTAIN STATUES AND REGULA-
TIONS.—Subsection (d)(1) of such section is amended by 
striking ‘‘equipment’’ in subparagraphs (A), (B), and (C) 
and inserting ‘‘supplies’’. 
(e) TESTING REQUIREMENT.—Subsection (e) of such 
section is amended— 
(1) in paragraph (1)— 
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(A) by striking ‘‘an item’’ in the matter 
preceding subparagraph (A) and inserting ‘‘the 
supplies’’; and 
(B) in subparagraph (B), by striking ‘‘of 
the item’’ and all that follows through ‘‘require-
ments document’’ and inserting ‘‘of the supplies 
in meeting the original requirements for the 
supplies (as stated in a statement of the urgent 
operational need’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘an item’’ and inserting 
‘‘supplies’’; and 
(B) by striking ‘‘the item’’ and inserting 
‘‘the supplies’’; and 
(3) in paragraph (3)— 
(A) by striking ‘‘If items’’ and inserting 
‘‘If the supplies’’; and 
(B) by striking ‘‘items’’ each place it ap-
pears and inserting ‘‘supplies’’. 
(f) LIMITATION.—Subsection (f) of such section is 
amended to read as follows: 
‘‘(f) LIMITATION.—In the case of supplies that are 
part of a major system for which a low-rate initial produc-
tion quantity determination has been made pursuant to 
section 2400 of title 10, United States Code, the quantity 
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of such supplies acquired using the procedures prescribed 
pursuant to this section may not exceed an amount con-
sistent with complying with limitations on the quantity of 
articles approved for low-rate initial production for such 
system. Any such supplies shall be included in any relevant 
calculation of quantities for low-rate initial production for 
the system concerned.’’. 
SEC. 805. PROHIBITION ON CONTRACTS WITH ENTITIES EN-
GAGING IN COMMERCIAL ACTIVITY IN THE 
ENERGY SECTOR OF IRAN. 
(a) PROHIBITION ON CONTRACTS.— 
(1) PROHIBITION.—The Secretary of Defense, 
beginning 90 days after the date of the enactment 
of this Act, may not enter into any contract with— 
(A) an entity that engages in commercial 
activity in the energy sector of Iran; or 
(B) a successor entity to the entity de-
scribed in subparagraph (A). 
(2) DEFINITION.—For purposes of this sub-
section, an entity engages in commercial activity in 
the energy sector of Iran if the entity, when entering 
into a contract with the Department of Defense for 
goods and services, fails to certify to the contracting 
officer that the entity does not engage in an activity 
for which sanctions may be imposed under section 
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5(a) of the Iran Sanctions Act of 1996 (50 U.S.C. 
1701 note). 
(b) REMEDIES.— 
(1) IN GENERAL.—If the Secretary of Defense, 
in consultation with the Secretary of State, deter-
mines that an entity has submitted a false certifi-
cation under subsection (a)(2), the Secretary of De-
fense may terminate a contract with such entity or 
debar or suspend such entity from eligibility for De-
partment of Defense contracts for a period of not 
more than three years. Any such debarment or sus-
pension shall be subject to the procedures that apply 
to debarment and suspension under the Federal Ac-
quisition Regulation under subpart 9.4 of part 9 of 
title 48, Code of Federal Regulations. 
(2) INCLUSION ON LIST OF PARTIES EXCLUDED 
FROM FEDERAL PROCUREMENT AND NONPROCURE-
MENT
PROGRAMS.—The Administrator of General 
Services shall include on the List of Parties Ex-
cluded from Federal Procurement and Nonprocure-
ment Programs maintained by the Administrator 
under part 9 of the Federal Acquisition Regulation 
issued pursuant to section 25 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 421) each 
entity that is debarred, suspended, or proposed for 
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debarment or suspension by the Secretary on the 
basis of a determination of a false certification 
under paragraph (1). 
(c) WAIVERS.— 
(1) AUTHORITY.—The Secretary of Defense 
may on a case by-case basis waive the requirement 
that an entity make a certification under subsection 
(a)(2) if the Secretary determines that it is in the 
interest of national security to do so. 
(2) 
CONTENTS
OF
CERTIFICATION.—Upon 
issuing a waiver under paragraph (1) with respect to 
an entity, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate 
and House of Representatives, the Committee on 
Foreign Relations of the Senate, and the Committee 
on Foreign Affairs of the House of Representatives 
a notification that identifies the entity involved, the 
nature of the contract, and the rationale for issuing 
the waiver. 
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Subtitle B—Amendments to Gen-
eral 
Contracting 
Authorities, 
Procedures, and Limitations 
SEC. 811. EXTENSION OF AUTHORITY TO PROCURE CER-
TAIN FIBERS; LIMITATION ON SPECIFICA-
TION. 
(a) EXTENSION.—Section 829 of the National De-
fense Authorization Act for Fiscal Year 2008 (Public Law 
110–181; 122 Stat. 229; 10 U.S.C. 2533a note) is amend-
ed in subsection (f) by striking ‘‘on the date that is five 
years after the date of the enactment of this Act’’ and 
inserting ‘‘on January 1, 2021’’. 
(b) PROHIBITION ON SPECIFICATION IN SOLICITA-
TIONS.—No solicitation issued before January 1, 2021, by 
the Department of Defense may include a requirement 
that proposals submitted pursuant to such solicitation 
must include the use of fire resistant rayon fiber. 
SEC. 812. SMALL ARMS PRODUCTION INDUSTRIAL BASE 
MATTERS. 
Section 2473 of title 10, United States Code, is 
amended— 
(1) in subsection (b), by striking ‘‘subsection 
(d)’’ and inserting ‘‘subsection (c)’’; 
(2) by striking subsection (c); 
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(3) by redesignating subsections (d) and (e) as 
subsections (c) and (d), respectively; and 
(4) by adding at the end the following new sub-
section (e): 
‘‘(e) COMPETITIVE PROCEDURES.—If the Secretary 
determines under subsection (a) that the requirement to 
procure property or services described in subsection (b) 
for the Department of Defense from a firm in the small 
arms production industrial base is not necessary to pre-
serve such industrial base, any such procurement shall be 
awarded through the use of competitive procedures that 
afford such industrial base a fair opportunity to be consid-
ered for such procurement.’’. 
SEC. 813. ADDITIONAL DEFINITION RELATING TO PRODUC-
TION OF SPECIALTY METALS WITHIN THE 
UNITED STATES. 
Section 2533b(m) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(11) The term ‘produced’, as used in sub-
sections (a) and (b), means melted, or processed in 
a manner that results in physical or chemical prop-
erty changes that are the equivalent of melting. The 
term does not include finishing processes such as 
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rolling, heat treatment, quenching, tempering, grind-
ing, or shaving.’’. 
Subtitle C—Studies and Reports 
SEC. 821. STUDIES TO ANALYZE ALTERNATIVE MODELS 
FOR ACQUISITION AND FUNDING OF TECH-
NOLOGIES SUPPORTING NETWORK-CENTRIC 
OPERATIONS. 
(a) STUDIES REQUIRED.— 
(1) INDEPENDENT STUDY.—Not later than 90 
days after the date of the enactment of this Act, the 
Secretary of Defense shall enter into a contract with 
an independent federally funded research and devel-
opment center to carry out a comprehensive study of 
policies, procedures, organization, and regulatory 
constraints affecting the acquisition of technologies 
supporting network-centric operations. The contract 
shall be funded from amounts appropriated pursuant 
to an authorization of appropriations in this Act or 
otherwise made available for fiscal year 2011 for op-
eration and maintenance for Defense-wide activities. 
(2) JOINT
CHIEFS
OF
STAFF
STUDY.—The 
Chairman of the Joint Chiefs of Staff shall carry out 
a comprehensive study of the same subjects covered 
by paragraph (1). The study shall be independent of 
the study required by paragraph (1) and shall be 
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carried out in conjunction with the military depart-
ments and in coordination with the Secretary of De-
fense. 
(b) MATTERS TO BE ADDRESSED.—Each study re-
quired by subsection (a) shall address the following mat-
ters: 
(1) Development of a system for understanding 
the various foundational components that contribute 
to network-centric operations, such as data trans-
port, processing, storage, data collection, and dis-
semination of information. 
(2) Determining how acquisition and funding 
programs that are in place as of the date of the en-
actment of this Act relate to the system developed 
under paragraph (1). 
(3) Development of acquisition and funding 
models using the system developed under paragraph 
(1), including— 
(A) a model under which a joint entity 
independent of any military department (such 
as the Joint Staff) is established with responsi-
bility and control of all funding for the acquisi-
tion of technologies for network-centric oper-
ations, and with authority to oversee the incor-
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poration of such technologies into the acquisi-
tion programs of the military departments; 
(B) a model under which an executive 
agent is established to manage and oversee the 
acquisition of technologies for network-centric 
operations, but would not have exclusive control 
of the funding for such programs; 
(C) a model under which the acquisition 
and funding programs that are in place as of 
the date of the enactment of this Act are main-
tained; and 
(D) any other model that the entity car-
rying out the study considers relevant. 
(4) An analysis of each of the models developed 
under paragraph (3) with respect to potential bene-
fits in— 
(A) collecting, processing, and dissemi-
nating information; 
(B) network commonality; 
(C) common communications; 
(D) interoperability; 
(E) mission impact and success; and 
(F) cost-effectiveness. 
(5) An evaluation of each of the models devel-
oped under paragraph (3) with respect to feasibility, 
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including identification of legal, policy, or regulatory 
barriers that may impede the implementation of 
such model. 
(c) REPORT REQUIRED.—Not later than September 
30, 2011, the Secretary of Defense shall submit to the 
congressional defense committees a report on the results 
of the studies required by subsection (a). The report shall 
include the findings and recommendations of the studies 
and any observations and comments that the Secretary 
considers appropriate. 
(d) NETWORK-CENTRIC OPERATIONS DEFINED.—In 
this section, the term ‘‘network-centric operations’’ refers 
to the ability to exploit all human and technical elements 
of the Joint Force and mission partners through the full 
integration of collected information, awareness, knowl-
edge, experience, and decisionmaking, enabled by secure 
access and distribution, all to achieve agility and effective-
ness in a dispersed, decentralized, dynamic, or uncertain 
operational environment. 
SEC. 822. ANNUAL JOINT REPORT AND COMPTROLLER 
GENERAL REVIEW ON CONTRACTING IN IRAQ 
AND AFGHANISTAN. 
The National Defense Authorization Act for Fiscal 
Year 2008 (Public Law 110–181; 122 Stat. 258; 10 
U.S.C. 2302 note) is amended by adding at the end of 
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subtitle F of title VIII the following new section (and con-
forming the table of sections for such subtitle at the begin-
ning of title VIII and at the beginning of such Act accord-
ingly): 
‘‘SEC. 865. ANNUAL JOINT REPORT AND COMPTROLLER 
GENERAL REVIEW ON CONTRACTING IN IRAQ 
AND AFGHANISTAN. 
‘‘(a) JOINT REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Every 12 months, the Sec-
retary of Defense, the Secretary of State, and the 
Administrator of the United States Agency for 
International Development shall submit to the rel-
evant committees of Congress a joint report on con-
tracts in Iraq or Afghanistan. 
‘‘(2) MATTERS COVERED.—A report under this 
subsection shall, at a minimum, cover— 
‘‘(A) any significant developments or issues 
with respect to contracts in Iraq and Afghani-
stan during the reporting period; 
‘‘(B) the plans of the departments and 
agency for strengthening interagency coordina-
tion of contracts in Iraq and Afghanistan or in 
future contingency operations, including plans 
related to the common databases identified 
under section 861(b)(4); 
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‘‘(C) the desirability and feasibility of in-
cluding in the common databases identified 
under section 861(b)(4) information about con-
tracts subject to the regulations required by 
section 839 of the National Defense Authoriza-
tion Act for Fiscal Year 2011 (providing for ex-
tending and applying the requirements of sec-
tion 862 to additional areas designated or listed 
in that section 839); and 
‘‘(D) the penalties, if any, imposed by the 
departments and agency on contractors for fail-
ing to comply with requirements under section 
861(e), including requirements to provide infor-
mation for the common databases identified 
under section 861(b)(4). 
‘‘(3) REPORTING PERIOD.—A report under this 
subsection shall cover a period of not less than 12 
months. 
‘‘(4) SUBMISSION
OF
REPORTS.—The Secre-
taries and the Administrator shall submit an initial 
report under this subsection not later than February 
1, 2011, and shall submit an updated report by Feb-
ruary 1 of every year thereafter until February 1, 
2013. If the total annual amount of obligations for 
contracts in Iraq and Afghanistan combined is less 
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than $250 million for the reporting period, for the 
departments and agency combined, the Secretaries 
and the Administrator may submit a letter docu-
menting this in place of a report. 
‘‘(b) COMPTROLLER GENERAL REVIEW
AND RE-
PORT.— 
‘‘(1) IN GENERAL.—Within 180 days after sub-
mission of each annual joint report required under 
subsection (a), but in no case later than August 5 
of each year until 2013, the Comptroller General 
shall review the joint report and interagency coordi-
nation of contracting in Iraq and Afghanistan and 
submit to the relevant committees of Congress a re-
port on such review. 
‘‘(2) MATTERS COVERED.—A report under this 
subsection shall, at minimum— 
‘‘(A) review how the Department of De-
fense, the Department of State, and the United 
States Agency for International Development 
are using the data contained in the common 
databases identified under section 861(b)(4) in 
managing, overseeing, and coordinating con-
tracting in Iraq and Afghanistan; and 
‘‘(B) assess the plans of the departments 
and agency for strengthening interagency co-
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ordination of contracts in Iraq and Afghanistan 
or in future contingency operations, particularly 
any plans related to the common databases 
identified under section 861(b)(4). 
‘‘(3) ACCESS TO DATABASES AND OTHER IN-
FORMATION.—The Secretary of Defense, the Sec-
retary of State, and the Administrator of the United 
States Agency for International Development shall 
provide to the Comptroller General full access to in-
formation on contracts in Iraq and Afghanistan for 
the purposes of the review carried out under this 
subsection, including the common databases identi-
fied under section 861(b)(4).’’. 
SEC. 823. EXTENSION OF COMPTROLLER GENERAL REVIEW 
AND REPORT ON CONTRACTING IN IRAQ AND 
AFGHANISTAN. 
Section 863 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 
258; 10 U.S.C. 2302 note) is amended by striking ‘‘2010’’ 
in subsection (a)(3) and inserting ‘‘2011’’. 
SEC. 824. INTERIM REPORT ON REVIEW OF IMPACT OF COV-
ERED SUBSIDIES ON ACQUISITION OF KC–45 
AIRCRAFT. 
(a) INTERIM REPORT.—The Secretary of Defense 
shall submit to the congressional defense committees an 
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interim report on any review of a covered subsidy initiated 
pursuant to subsection (a) of section 886 of the Duncan 
Hunter National Defense Authorization Act for Fiscal 
Year 2009 (Public Law 110–417; 122 Stat. 4561) not 
later than 60 days after the date of the initiation of the 
review. 
(b) REPORT CONTENTS.—The report required by 
subsection (a) shall contain detailed findings relating to 
the impact of the covered subsidy that led to the initiation 
of the review on the source selection process for the KC– 
45 Aerial Refueling Aircraft Program or any successor to 
such program and whether the covered subsidy would pro-
vide an unfair competitive advantage to any bidder in the 
source selection process. 
SEC. 825. REPORTS ON JOINT CAPABILITIES INTEGRATION 
AND DEVELOPMENT SYSTEM. 
(a) INDEPENDENT ANALYSES.— 
(1) IN GENERAL.—A comprehensive analysis of 
the Joint Capabilities Integration and Development 
System shall be independently performed by each of 
the following: 
(A) The Secretary of Defense. 
(B) A federally funded research and devel-
opment center selected by the Secretary of De-
fense. 
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(2) MATTERS COVERED.—Each such analysis 
shall— 
(A) evaluate the entire Joint Capabilities 
Integration and Development System and the 
problems associated with it, with particular em-
phasis on the problems relating to the length of 
time and the costs involved in identifying, as-
sessing, and validating joint military capability 
needs; and 
(B) identify the best solutions to the prob-
lems evaluated under subparagraph (A) and de-
velop recommendations to carry out those solu-
tions. 
(3) REPORTS.—Not later than 6 months after 
the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representa-
tives— 
(A) a report by the Secretary on the anal-
ysis performed by the Secretary under para-
graph (1), with particular emphasis on contin-
uous process improvement; and 
(B) a report by the federally funded re-
search and development center selected under 
paragraph (1)(B) on the analysis performed by 
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the center under paragraph (1), together with 
such comments as the Secretary considers nec-
essary on the report. 
(b) IMPLEMENTATION.— 
(1) IN
GENERAL.—Not later than one year 
after the date of the enactment of this Act, the Sec-
retary of Defense— 
(A) shall develop and begin implementing a 
plan to address the problems with the Joint Ca-
pabilities Integration and Development System, 
taking into account the recommendations devel-
oped in the analyses required under subsection 
(a) and as part of a program to manage per-
formance in establishing joint military require-
ments; and 
(B) shall submit to the Committees on 
Armed Services of the Senate and the House of 
Representatives a report on the plan, including, 
at a minimum, a timeline, objectives, mile-
stones, and projected resource requirements. 
(2) REPORT
FORMAT.—The report required 
under paragraph (1)(B) may be included as part of 
any report relating to a program to manage per-
formance in establishing joint military requirements. 
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Subtitle D—Other Matters 
SEC. 831. EXTENSION OF AUTHORITY FOR DEFENSE ACQUI-
SITION CHALLENGE PROGRAM. 
Section 2359b(k) of title 10, United States Code, is 
amended by striking ‘‘2012’’ and inserting ‘‘2017’’. 
SEC. 832. ENERGY SAVINGS PERFORMANCE CONTRACTS. 
(a) COMPETITION REQUIREMENTS FOR TASK OR DE-
LIVERY ORDERS UNDER ENERGY SAVINGS PERFORM-
ANCE CONTRACTS.—Section 801 of the National Energy 
Conservation Policy Act (42 U.S.C. 8287) is amended by 
adding at the end the following: 
‘‘(c) TASK OR DELIVERY ORDERS.—(1) The head of 
a Federal agency may issue a task or delivery order under 
an energy savings performance contract by— 
‘‘(A) notifying all contractors that have received 
an award under such contract that the agency pro-
poses to discuss energy savings performance services 
for some or all of its facilities and, following a rea-
sonable period of time to provide a proposal in re-
sponse to the notice, soliciting from such contractors 
the submission of expressions of interest in, and con-
tractor qualifications for, performing site surveys or 
investigations and feasibility designs and studies, 
and including in the notice summary information 
concerning energy use for any facilities that the 
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agency has specific interest in including in such task 
or delivery order; 
‘‘(B) reviewing all expressions of interest and 
qualifications submitted pursuant to the notice 
under subparagraph (A); 
‘‘(C) selecting two or more contractors (from 
among those reviewed under subparagraph (B)) to 
conduct discussions concerning the contractors’ re-
spective qualifications to implement potential energy 
conservation measures, including— 
‘‘(i) requesting references and specific de-
tailed examples with respect to similar efforts 
and the resulting energy savings of such similar 
efforts; and 
‘‘(ii) requesting an explanation of how such 
similar efforts relate to the scope and content 
of the task or delivery order concerned; 
‘‘(D) selecting and authorizing— 
‘‘(i) more than one contractor (from 
among those selected under subparagraph (C)) 
to conduct site surveys, investigations, feasi-
bility designs and studies or similar assess-
ments for the energy savings performance con-
tract services (or for discrete portions of such 
services), for the purpose of allowing each such 
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contractor to submit a firm, fixed-price proposal 
to implement specific energy conservation meas-
ures; or 
‘‘(ii) one contractor (from among those se-
lected under subparagraph (C)) to conduct a 
site survey, investigation, a feasibility design 
and study or similar assessment for the purpose 
of allowing the contractor to submit a firm, 
fixed-price proposal to implement specific en-
ergy conservation measures; 
‘‘(E) providing a debriefing to any contractor 
not selected under subparagraph (D); 
‘‘(F) negotiating a task or delivery order for en-
ergy savings performance contracting services with 
the contractor or contractors selected under sub-
paragraph (D) based on the energy conservation 
measures identified; and 
‘‘(G) issuing a task or delivery order for energy 
savings performance contracting services to such 
contractor or contractors. 
‘‘(2) The issuance of a task or delivery order for en-
ergy savings performance contracting services pursuant to 
paragraph (1) is deemed to satisfy the task and delivery 
order competition requirements in section 2304c(d) of title 
10, United States Code, and section 303J(d) of the Fed-
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eral Property and Administrative Services Act of 1949 (41 
U.S.C. 253j(d)). 
‘‘(3) The Secretary may issue guidance as necessary 
to agencies issuing task or delivery orders pursuant to 
paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) is inapplicable to task or delivery orders 
issued before the date of enactment of this Act. 
SEC. 833. CONSIDERATION OF SUSTAINABLE PRACTICES IN 
PROCUREMENT OF PRODUCTS AND SERV-
ICES. 
(a) CONSIDERATION OF SUSTAINABLE PRACTICES.— 
(1) IN
GENERAL.—The Secretary of Defense 
shall develop and issue guidance directing the Sec-
retary of each military department and the head of 
each defense agency to consider sustainable practices 
in the procurement of products and services. Such 
guidance shall ensure that strategies for acquiring 
products or services to meet departmental or agency 
performance requirements favor products or services 
described in paragraph (2) if such products or serv-
ices can be acquired on a life cycle cost-neutral 
basis. 
(2) PRODUCTS
OR
SERVICES.—A product or 
service described in this paragraph is a product or 
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service that is energy-efficient, water-efficient, 
biobased, environmentally preferable, non-ozone-de-
pleting, contains recycled content, is non-toxic, or is 
less toxic than alternative products or services. 
(b) EXCEPTION.—Subsection (a) does not apply to 
the acquisition of weapon systems or components of weap-
on systems. 
SEC. 834. DEFINITION OF MATERIALS CRITICAL TO NA-
TIONAL SECURITY. 
Section 187 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘materials critical to national se-
curity’ means materials— 
‘‘(A) upon which the production or 
sustainment of military equipment is depend-
ent; and 
‘‘(B) the supply of which could be re-
stricted by actions or events outside the control 
of the Government of the United States. 
‘‘(2) The term ‘military equipment’ means 
equipment used directly by the armed forces to carry 
out military operations.’’. 
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SEC. 835. DETERMINATION OF STRATEGIC OR CRITICAL 
RARE EARTH MATERIALS FOR DEFENSE AP-
PLICATIONS. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall undertake an assessment of the supply chain 
for rare earth materials and determine which, if any, rare 
earth materials are strategic materials and which rare 
earth materials are materials critical to national security. 
For the purposes of the assessment— 
(1) the Secretary may consider the views of 
other Federal agencies, as appropriate; 
(2) any study conducted by the Director, Indus-
trial Policy during fiscal year 2010 may be consid-
ered as partial fulfillment of the requirements of this 
section; 
(3) any study conducted by the Comptroller 
General of the United States during fiscal year 2010 
may be considered as partial fulfillment of the re-
quirements of this section; and 
(4) the Secretary shall consider the sources of 
rare earth materials (both in terms of source nations 
and number of vendors) including rare earth ele-
ments, rare earth metals, rare earth magnets, and 
other components containing rare earths. 
(b) PLAN.—In the event that the Secretary deter-
mines that a rare earth material is a strategic material 
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or a material critical to national security, the Secretary 
shall develop a plan to ensure the long-term availability 
of such rare earth material, with a goal of establishing 
domestic sources of such material by December 31, 2015. 
In developing the plan, the Secretary shall consider all rel-
evant components of the value-chain, including mining, 
processing, refining, and manufacturing. The plan shall 
include consideration of numerous options with respect to 
the material, including— 
(1) an assessment of including the material in 
the National Defense Stockpile; 
(2) in consultation with the United States 
Trade Representative, the identification of any trade 
practices known to the Secretary that limit the Sec-
retary’s ability to ensure the long-term availability of 
such material or the ability to meet the goal of es-
tablishing domestic sources of such material by De-
cember 31, 2015; 
(3) an assessment of the availability of financ-
ing to industry, academic institutions, or not-for- 
profit entities to provide the capacity required to en-
sure the availability of the material and potential 
mechanisms to increase the availability of such fi-
nancing; 
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(4) the benefits, if any, of Defense Production 
Act funding to support the establishment of a do-
mestic rare earth manufacturing capability for mili-
tary components; 
(5) funding for research and development of 
any aspect of the rare earth supply-chain; 
(6) any other risk mitigation method deter-
mined appropriate by the Secretary that is con-
sistent with the goal of establishing domestic sources 
by December 31, 2015; and 
(7) for components of the rare earth material 
supply-chain for which no other risk mitigation 
method, in accordance with paragraphs (1) through 
(6), will ensure the establishment of a domestic 
source by December 31, 2015, a specific plan to 
eliminate supply-chain vulnerability by the earliest 
date practicable. 
(c) REPORT.— 
(1) REQUIREMENT.—Not later than 180 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
committees described in paragraph (2) a report con-
taining the findings of the assessment under sub-
section (a) and the plan (if any) developed under 
subsection (b). 
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(2) CONGRESSIONAL
COMMITTEES.—The con-
gressional committees described in this paragraph 
are as follows: 
(A) The congressional defense committees. 
(B) The Committee on Financial Services 
and the Committee on Ways and Means of the 
House of Representatives. 
(C) The Committee on Finance and the 
Committee on Banking, Housing, and Urban 
Affairs of the Senate. 
(d) DEFINITIONS.—In this section: 
(1) STRATEGIC
MATERIAL.—The term ‘‘stra-
tegic material’’ means a material— 
(A) which is essential for military equip-
ment; 
(B) which is unique in the function it per-
forms; and 
(C) for which there are no viable alter-
natives. 
(2) MATERIALS CRITICAL TO NATIONAL SECU-
RITY.—The term ‘‘materials critical to national secu-
rity’’ has the meaning provided by section 187(e) of 
title 10, United States Code, as amended by section 
827 of this Act. 
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SEC. 836. REVIEW OF NATIONAL SECURITY EXCEPTION TO 
COMPETITION. 
(a) REVIEW REQUIRED.—The Secretary of Defense 
shall review the implementation by the Department of De-
fense of the national security exception to full and open 
competition provided in section 2304(c)(6) of title 10, 
United States Code. 
(b) MATTERS REVIEWED.—The review of the imple-
mentation of the national security exception required by 
subsection (a) shall include— 
(1) the pattern of usage of such exception by 
acquisition organizations within the Department to 
determine which organizations are commonly using 
the exception and the frequency of such usage; 
(2) the range of items or services being ac-
quired through the use of such exception; 
(3) the process for reviewing and approving jus-
tifications involving such exception; 
(4) whether the justifications for use of such 
exception typically meet the relevant requirements of 
the Federal Acquisition Regulation applicable to the 
use of such exception; 
(5) issues associated with follow-on procure-
ments for items or services acquired using such ex-
ception; and 
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(6) potential additional instances where such 
exception could be applied and any authorities avail-
able to the Department of Defense other than such 
exception that could be applied in such instances. 
(c) REPORT.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the 
Senate and of the House of Representatives a report on 
the review required by subsection (a), including a discus-
sion of each of the matters specified in subsection (b). The 
report shall include any recommendations relating to the 
matters reviewed that the Secretary considers appropriate. 
The report shall be submitted in unclassified form but 
may include a classified annex. 
(d) REGULATIONS.— 
(1) REQUIREMENT.—Not later than 270 days 
after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional 
committees described in paragraph (2) draft regula-
tions on the implementation of the national security 
exception to full and open competition provided in 
section 2304(c)(6) of title 10, United States Code, 
taking into account the results of the review re-
quired by subsection (a). 
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(2) CONGRESSIONAL
COMMITTEES.—The con-
gressional committees described in this paragraph 
are the following: 
(A) The Committee on Armed Services and 
the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate. 
(B) The Committee on Armed Services and 
the Committee on Oversight and Government 
Reform of the House of Representatives. 
SEC. 837. INCLUSION OF BRIBERY IN DISCLOSURE RE-
QUIREMENTS OF THE FEDERAL AWARDEE 
PERFORMANCE AND INTEGRITY INFORMA-
TION SYSTEM. 
(a) INCLUSION OF BRIBERY IN DISCLOSURE RE-
QUIREMENTS.—Section 872(c) of the Duncan Hunter Na-
tional Defense Authorization Act for Fiscal Year 2009 
(Public Law 110–417; 122 Stat. 4556) is amended by 
adding at the end the following new paragraph: 
‘‘(8) To the maximum extent practical, informa-
tion similar to the information covered by paragraph 
(1) in connection with any law relating to bribery of 
a country which is a signatory of the Convention on 
Combating Bribery of Foreign Public Officials in 
International Business Transactions, signed at Paris 
on December 17, 1997.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect not later than 90 days after 
the date of the enactment of this Act. 
SEC. 838. REQUIREMENT FOR ENTITIES WITH FACILITY 
CLEARANCES THAT ARE NOT UNDER FOR-
EIGN OWNERSHIP CONTROL OR INFLUENCE 
MITIGATION. 
(a) REQUIREMENT.—The Secretary of Defense shall 
require the directors of a covered entity to establish a gov-
ernment security committee that shall ensure that the cov-
ered entity employs and maintains policies and procedures 
that meet requirements under the national industrial secu-
rity program. 
(b) COVERED ENTITY.—A covered entity under this 
section is an entity— 
(1) to which the Department of Defense has 
granted a facility clearance; 
(2) that is not subject to foreign ownership con-
trol or influence mitigation measures; and 
(3) that is a corporation. 
(c) DISCRETIONARY REQUIREMENT.—The Secretary 
of Defense may require that the requirement in subsection 
(a) apply to an entity that meets the elements described 
in paragraphs (1) and (2) of subsection (b) and is a lim-
ited liability company, sole proprietorship, nonprofit cor-
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poration, partnership, academic institution, or any other 
entity holding a facility clearance. 
(d) GUIDANCE.—The Secretary of Defense shall de-
velop implementing guidance for the requirement in sub-
section (a). 
(e) GOVERNMENT SECURITY COMMITTEE.—For the 
purposes of this section, a government security committee 
is a subcommittee of a covered entity’s board of directors, 
made up of resident United States citizens, that is respon-
sible for ensuring that the covered entity complies with 
the requirements of the national industrial security pro-
gram. 
SEC. 839. REPORT RELATED TO MINORITY-OWNED, WOMEN- 
OWNED, 
AND 
DISADVANTAGED-OWNED 
SMALL BUSINESSES. 
Not later than December 1, 2010, the Secretary of 
Defense shall provide to the Congressional Black Caucus 
a report that includes a list of minority-owned, women- 
owned, and disadvantaged-owned small businesses that re-
ceive contracts resulting from authorized funding to the 
Department of Defense. The list shall cover the 10 cal-
endar years preceding the date of the enactment of this 
Act and shall include, for each listed business, the name 
of the business and the business owner and the amount 
of the contract award. 
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SEC. 840. DEFENSE INDUSTRIAL BASE PRIORITY FOR RARE 
EARTH NEODYMIUM IRON BORON MAGNETS. 
(a) FINDINGS.—Congress finds the following: 
(1) There is an urgent need to restore the 
United States capability to manufacture sintered ne-
odymium iron boron magnets for use in defense ap-
plications and there is an urgent need to eliminate 
the domestic supply-chain vulnerability related to 
these key materials in the defense supply-chain. 
(2) An April 14, 2010 report by the Govern-
ment Accountability Office entitled ‘‘Rare Earth Ma-
terials in the 
Defense 
Supply 
Chain’’ 
dem-
onstrates— 
(A) the ‘‘United States is not currently 
producing neodymium iron boron magnets,’’ a 
key rare earth material; 
(B) that future availability of neodymium 
is largely controlled by Chinese suppliers; 
(C) that alternatives to rare earth mate-
rials could reduce the demand and dependence 
on rare earth materials in 10 to 15 years, but 
these materials might not meet current applica-
tion requirements; 
(D) where rare earth materials are used in 
defense systems, the materials are responsible 
for the functionality of the component and 
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would be difficult to replace without losing per-
formance; 
(E) fin actuators used in precision-guided 
munitions are specifically designed around the 
capabilities of neodymium iron boron rare earth 
magnets, which are primarily available from 
Chinese suppliers; 
(F) the DDG–51 Hybrid Electric Drive 
Ship Program uses permanent-magnet motors 
using neodymium magnets from China; and 
(G) future generations of some defense 
system components, such as transmit and re-
ceive modules for radars, will continue to de-
pend on rare earth materials. 
(3) The United States has the technological ca-
pability to restore its neodymium iron boron manu-
facturing capability. 
(4) Worldwide supplies or rare earth materials, 
including neodymium, are expected to tighten signifi-
cantly within the next 3–5 years. 
(5) A domestic effort to restore domestic sin-
tered neodymium iron boron magnet manufacturing 
capability, including efforts to qualify those magnets 
for use in defense applications, will take between 3– 
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5 years and should begin immediately to avoid fu-
ture weapon system delivery disruption. 
(b) REQUIREMENT.—Not later than 90 days after the 
date of the enactment of this Act, the Secretary shall sub-
mit to the Committees on Armed Services of the House 
of Representatives and the Senate a plan to establish a 
domestic source of sintered neodymium iron boron 
magnets for use in the defense supply chain. 
(c) 
SINTERED
NEODYMIUM
IRON
BORON 
MAGNETS.—For the purposes of subsection (b), the capa-
bility to manufacture sintered neodymium iron boron 
magnets includes the alloying, pressing, and sintering of 
magnet materials. It does not include manufacturing 
magnets from standard shapes or imported blocks of neo-
dymium. The Secretary’s plan shall not allow the grinding 
or reprocessing of neodymium to be considered a ‘‘domes-
tic source of sintered neodymium iron boron magnets’’. 
SEC. 841. SENSE OF CONGRESS REGARDING COST SAVINGS 
THROUGH REDUCTIONS IN WASTE, FRAUD, 
AND ABUSE. 
(a) FINDINGS.—Congress finds the following: 
(1) The Secretary of Defense has undertaken 
meaningful efforts to eliminate waste, fraud, and 
abuse through contractor oversight and new policies 
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and procedures aimed at increasing emphasis on eth-
ics, governance, and fraud prevention. 
(2) The Government Accountability Office re-
port dated December 16, 2009, on the status of 
3,099 recommendations made to the Department of 
Defense by the Government Accountability Office be-
tween 2001 and 2008, indicates that the Depart-
ment of Defense has implemented 1,871, or 61 per-
cent, of the recommendations. 
(3) The Government Accountability Office esti-
mates that the implementation of these rec-
ommendations yielded the Federal Government a 
savings of $89 billion from 2001 through 2007, 
averaging $12.7 billion in annual financial benefit. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) there is potential for additional and signifi-
cant cost savings through further reductions by the 
Secretary of Defense in waste, fraud, and abuse, 
particularly with regard to contracting processes; 
and 
(2) the Secretary of Defense should make im-
plementation of the remaining Government Account-
ability Office recommendations an utmost priority of 
the Department of Defense. 
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SEC. 842. PROCUREMENT OF ARTICLES, MATERIALS, AND 
SUPPLIES FOR USE OUTSIDE THE UNITED 
STATES. 
(a) REQUIREMENT.—In procuring articles, materials, 
or supplies for use outside of the United States, including 
procurements for military construction projects, the De-
partment of Defense shall solicit bids from United States 
sources. 
(b) EXCEPTION.—Subsection (a) shall not apply if 
the articles, materials, or supplies to be procured are— 
(1) not mined, produced, or manufactured in 
the United States in sufficient and reasonably avail-
able quantities; 
(2) needed on an urgent basis and not acquired 
on a regular basis; or 
(3) perishable, or will otherwise degrade be-
cause of the time involved in shipping. 
SEC. 843. ADDITIONAL INFORMATION ON WAIVERS UNDER 
BUY AMERICAN ACT BY DEPARTMENT OF DE-
FENSE REQUIRED TO BE INCLUDED IN AN-
NUAL REPORT. 
Section 812 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 10 U.S.C. 
2501 note) is amended in subsection (c)(2)(A) by striking 
clause (vi) and inserting the following: 
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‘‘(v) An itemized list of all waivers granted 
with respect to such articles, materials, or sup-
plies under the Buy American Act (41 U.S.C. 
10a et seq.), including— 
‘‘(I) an analysis of the domestic ca-
pacity to supply the articles, materials, or 
supplies; and 
‘‘(II) an analysis of the reasons for an 
increase or decrease in the number of 
waivers granted from fiscal year to fiscal 
year.’’. 
SEC. 844. REQUIREMENT TO INCLUDE EFFECTS ON DOMES-
TIC JOBS IN PERIODIC ASSESSMENTS OF DE-
FENSE CAPABILITY. 
Section 2505(b)(4) of title 10, United States Code, 
is amended by inserting after ‘‘title)’’ the following: ‘‘, in-
cluding the effects on domestic jobs,’’. 
SEC. 845. EXTENSION OF REGULATIONS ON CONTRACTORS 
PERFORMING 
PRIVATE 
SECURITY 
FUNC-
TIONS. 
(a) EXTENSION OF REGULATIONS.— 
(1) IN GENERAL.—The Secretary of Defense, in 
coordination with the Secretary of State, shall issue 
regulations to extend and apply the requirements of 
section 862 of the National Defense Authorization 
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Act for Fiscal Year 2008 (Public Law 110–181; 10 
U.S.C. 2302 note) to additional areas as designated 
under paragraph (2) and as listed in paragraph (3). 
(2) ADDITIONAL
AREAS
DESIGNATED.—The 
Secretary of Defense shall designate as additional 
areas for purposes of this section any area— 
(A) that is an area within a foreign coun-
try or an area covering all or part of more than 
one foreign country; 
(B) that is not an area of combat oper-
ations as designated under subsection (c) of 
section 862 of such Act; and 
(C) in which significant military oper-
ations, as designated by the Secretary, are 
being carried out by United States Armed 
Forces. 
(3) ADDITIONAL AREAS LISTED.—In addition 
to any areas designated by the Secretary under 
paragraph (2), the following areas shall be consid-
ered additional areas listed in this paragraph for 
purposes of this section: 
(A) The Horn of Africa region. 
(B) Yemen. 
(C) The Philippines. 
(D) Haiti. 
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(b) EXTENSION TIMELINES.—The Secretary shall 
prescribe regulations applicable to the additional areas— 
(1) designated under subsection (a)(2), not 
later than March 1, 2012; and 
(2) listed in subsection (a)(3), not later than 
March 1, 2011. 
(c) REPORT ON IMPLEMENTATION.—Not later than 
90 days after the dates specified in subsection (b), the 
Secretary of Defense, in coordination with the Secretary 
of State, shall submit to Congress a report on the imple-
mentation of the regulations prescribed under this section. 
The report shall include— 
(1) a complete list of additional areas des-
ignated by the Secretary under subsection (a)(2), 
and a detailed description of the criteria used to 
make the designation; 
(2) the total number of contractors performing 
private security functions in each additional area 
designated under subsection (a)(2) or listed in sub-
jection (a)(3); and 
(3) an assessment of the long-term options for 
reducing the use of contractors for private security 
functions, including the use of Government per-
sonnel to provide such functions. 
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(d) 
PRIVATE
SECURITY
FUNCTIONS.—Notwith-
standing section 864 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181), as 
amended by section 813 of the National Defense Author-
ization Act for Fiscal Year 2010 (Public Law 111–84), 
in this section, the term ‘‘private security functions’’ 
means activities engaged in by a contractor as follows: 
(1) Guarding of personnel, facilities, or prop-
erty of a Federal agency. 
(2) Any other activity for which personnel are 
required to carry weapons in the performance of 
their duties. 
SEC. 846. PROCUREMENT OF PHOTOVOLTAIC DEVICES. 
(a) CONTRACT REQUIREMENT.—The Secretary of 
Defense shall ensure that each contract awarded by the 
Department of Defense that includes the procurement of 
photovoltaic devices, including contracts described in sub-
section (b), includes a provision requiring the photovoltaic 
devices to comply with the Buy American Act (41 U.S.C. 
10a et seq.). 
(b) CONTRACTS DESCRIBED.—The contracts de-
scribed in this subsection include, but are not limited to, 
energy savings performance contracts, utility service con-
tracts, land leases, and private housing contracts. 
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(c) DEFINITION
OF PHOTOVOLTAIC DEVICES.—In 
this section, the term ‘‘photovoltaic devices’’ means devices 
that convert light directly into electricity through a solid- 
state, semiconductor process. 
SEC. 847. REQUIREMENT FOR CONTRACTS IN IRAQ AND AF-
GHANISTAN TO USE EMPLOYEES AND NOT 
INDEPENDENT CONTRACTORS FOR PRIVATE 
SECURITY SERVICES. 
(a) REQUIREMENT.—Any contract in Iraq or Afghan-
istan for the procurement of private security services shall 
contain a requirement that, in the case of any contractor 
using individuals who are United States citizens and re-
quired to have a United States security clearance to per-
form private security services under the contract, the con-
tractor shall use employees and not independent contrac-
tors for the provision of such services. 
(b) CONTRACT IN IRAQ OR AFGHANISTAN.—In this 
section, the term ‘‘contract in Iraq or Afghanistan’’ means 
a contract with the Department of Defense, the Depart-
ment of State, or the United States Agency for Inter-
national Development, a subcontract at any tier issued 
under such a contract, or a task order or delivery order 
at any tier issued under such a contract (including a con-
tract, subcontract, or task order or delivery order issued 
by another Government agency for the Department of De-
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HR 5136 PCS1S 
fense, the Department of State, or the United States 
Agency for International Development), if the contract, 
subcontract, or task order or delivery order involves work 
performed in Iraq or Afghanistan for a period longer than 
14 days. 
(c) PRIVATE SECURITY SERVICES.—In this section, 
the term ‘‘private security services’’ means activities en-
gaged in by a contractor under a contract in Iraq or Af-
ghanistan and includes— 
(1) guarding of personnel, facilities, or property 
of a Federal agency, the contractor or subcontractor, 
or a third party; 
(2) any other activity for which personnel are 
required to carry weapons in the performance of 
their duties; and 
(3) training in any activity covered by para-
graph (1) or (2). 
(d) WAIVER AUTHORITY.—The Secretary of Defense, 
the Secretary of State, or the Administrator of the United 
States Agency for International Development may waive 
the requirement in subsection (a) with respect to a con-
tract of the Department of Defense, the Department of 
State, or the United States Agency for International De-
velopment, respectively, if the Secretary concerned or the 
Administrator— 
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(1) determines in writing that a waiver is nec-
essary in the interests of national security; and 
(2) submits to Congress a notification of such 
waiver. 
SEC. 848. CONSIDERATION OF UNFAIR COMPETITIVE AD-
VANTAGE IN EVALUATION OF OFFERS FOR 
KC–X AERIAL REFUELING AIRCRAFT PRO-
GRAM. 
(a) REQUIREMENT TO CONSIDER UNFAIR COMPETI-
TIVE ADVANTAGE.—In awarding a contract for the KC– 
X aerial refueling aircraft program (or any successor to 
that program), the Secretary of Defense shall, in evalu-
ating any offers submitted to the Department of Defense 
in response to a solicitation for offers for such program, 
consider any unfair competitive advantage that an offeror 
may possess. 
(b) REPORT.—Not later than 60 days after submis-
sion of offers in response to any such solicitation, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report on any unfair competitive advantage 
that any offeror may possess. 
(c) REQUIREMENT TO TAKE FINDINGS INTO AC-
COUNT IN AWARD OF CONTRACT.—In awarding a contract 
for the KC–X aerial refueling aircraft program (or any 
successor to that program), the Secretary of Defense shall 
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HR 5136 PCS1S 
take into account the findings of the report submitted 
under subsection (b). 
(d) UNFAIR COMPETITIVE ADVANTAGE.—In this sec-
tion, the term ‘‘unfair competitive advantage’’, with re-
spect to an offer for a contract, means a situation in which 
the cost of development, production, or manufacturing is 
not fully borne by the offeror for such contract. 
SEC. 849. DEBARMENT OF BP AND ITS SUBSIDIARIES. 
(a) CONTRACTS WITH BP AND ITS SUBSIDIARIES.— 
If the Secretary of Defense determines that BP or any 
of its subsidiaries performing any contract with the De-
partment of Defense is no longer a responsible source (as 
defined in section 2302 of title 10, United States Code), 
the Secretary shall determine, not later than 90 days after 
making such determination, whether BP or its subsidi-
aries should be debarred from contracting with the De-
partment of Defense. 
(b) DEBAR.—In this section, the term ‘‘debar’’ has 
the meaning given that term by section 2393(c) of title 
10, United States Code. 
SEC. 850. OFFICE OF FEDERAL PROCUREMENT POLICY ACT 
AMENDMENTS. 
(a) SERVICE
CONTRACT
INVENTORY
REQUIRE-
MENT.— 
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HR 5136 PCS1S 
(1) IN GENERAL.—The Office of Federal Pro-
curement Policy Act (41 U.S.C. 403 et seq.) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 45. SERVICE CONTRACT INVENTORY REQUIREMENT. 
‘‘(a) SERVICE
CONTRACT
INVENTORY
REQUIRE-
MENT.— 
‘‘(1) GUIDANCE.—The Director of the Office of 
Management and Budget shall develop and dissemi-
nate guidance to aid executive agencies in estab-
lishing systems for the collection of information re-
quired to meet the requirements of this section and 
to ensure consistency of inventories across agencies. 
‘‘(2) REPORT.—The Director of the Office of 
Management and Budget shall submit a report to 
Congress on the status of efforts to enable executive 
agencies to prepare the inventories required under 
paragraph (3), including the development, as appro-
priate, of guidance, methodologies, and technical 
tools. 
‘‘(3) INVENTORY
CONTENTS.—Not later than 
December 31, 2010, and annually thereafter, the 
head of each executive agency required to submit an 
inventory in accordance with the Federal Activities 
Inventory Reform Act of 1998 (Public Law 105– 
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HR 5136 PCS1S 
270; 31 U.S.C. 501 note), other than the Depart-
ment of Defense, shall submit to the Office of Man-
agement and Budget an annual inventory of service 
contracts awarded or extended through the exercise 
of an option or a task order, for or on behalf of such 
agency. For each service contract, the entry for an 
inventory under this section shall include, for the 
preceding fiscal year, the following: 
‘‘(A) A description of the services pur-
chased by the executive agency and the role the 
services played in achieving agency objectives, 
regardless of whether such a purchase was 
made through a contract or task order. 
‘‘(B) The organizational component of the 
executive agency administering the contract, 
and the organizational component of the agency 
whose requirements are being met through con-
tractor performance of the service. 
‘‘(C) The total dollar amount obligated for 
services under the contract and the funding 
source for the contract. 
‘‘(D) The total dollar amount invoiced for 
services under the contract. 
‘‘(E) The contract type and date of award. 
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‘‘(F) The name of the contractor and place 
of performance. 
‘‘(G) The number and work location of 
contractor and subcontractor employees, ex-
pressed as full-time equivalents for direct labor, 
compensated under the contract, using direct 
labor hours and associated cost data collected 
from contractors. 
‘‘(H) Whether the contract is a personal 
services contract. 
‘‘(I) Whether the contract was awarded on 
a noncompetitive basis, regardless of date of 
award. 
‘‘(b) FORM.—Reports required under this section 
shall be submitted in unclassified form, but may include 
a classified annex. 
‘‘(c) PUBLICATION.—Not later than 30 days after the 
date on which the inventory under subsection (a)(3) is re-
quired to be submitted to the Office of Management and 
Budget, the head of each executive agency shall— 
‘‘(1) make the inventory available to the public; 
and 
‘‘(2) publish in the Federal Register a notice 
that the inventory is available to the public. 
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‘‘(d) GOVERNMENT-WIDE INVENTORY REPORT.—Not 
later than 90 days after the deadline for submitting inven-
tories under subsection (a)(3), and annually thereafter, 
the Director of the Office of Management and Budget 
shall submit to Congress and make publicly available on 
the Office of Management and Budget website a report 
on the inventories submitted. The report shall identify 
whether each agency required to submit an inventory 
under subsection (a)(3) has met such requirement and 
summarize the information submitted by each executive 
agency required to have a Chief Financial Officer pursu-
ant to section 901 of title 31, United States Code. 
‘‘(e) REVIEW AND PLANNING REQUIREMENTS.—Not 
later than 180 days after the deadline for submitting in-
ventories under subsection (a)(3) for an executive agency, 
the head of the executive agency, or an official designated 
by the agency head shall— 
‘‘(1) review the contracts and information in 
the inventory; 
‘‘(2) ensure that— 
‘‘(A) each contract in the inventory that is 
a personal services contract has been entered 
into, and is being performed, in accordance with 
applicable laws and regulations; 
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HR 5136 PCS1S 
‘‘(B) the contracts do not include to the 
maximum extent practicable functions that are 
closely associated with inherently governmental 
functions; 
‘‘(C) the agency is not using contractor 
employees to perform inherently governmental 
functions; 
‘‘(D) the agency has specific safeguards 
and monitoring systems in place to ensure that 
work being performed by contractors has not 
changed or expanded during performance to be-
come an inherently governmental function; 
‘‘(E) the agency is not using contractor 
employees to perform critical functions in such 
a way that could affect the ability of the agency 
to maintain control of its mission and oper-
ations; and 
‘‘(F) there are sufficient internal agency 
resources to manage and oversee contracts ef-
fectively; 
‘‘(3) identify contracts that have been poorly 
performed, as determined by a contracting officer, 
because of excessive costs or inferior quality; and 
‘‘(4) identify contracts that should be consid-
ered for conversion to— 
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HR 5136 PCS1S 
‘‘(A) performance by Federal employees of 
the executive agency in accordance with agency 
insourcing guidelines required under section 
736 of the Financial Services and General Gov-
ernment Appropriations Act, 2009 (Public Law 
111–8, division D) and section 46 of this Act; 
or 
‘‘(B) an alternative acquisition approach 
that would better enable the agency to effi-
ciently utilize its assets and achieve its public 
mission. 
‘‘(f) REPORT ON ACTIONS TAKEN IN RESPONSE TO 
ANNUAL INVENTORY.—Not later than one year after sub-
mitting an annual inventory under subsection (a)(3), the 
head of each executive agency submitting such an inven-
tory shall submit to the Office of Management and Budget 
a report summarizing the actions taken pursuant to sub-
section (e), including any actions taken to consider and 
convert functions from contractor to Federal employee 
performance. The report shall be included as an attach-
ment to the next annual inventory and made publicly 
available in accordance with subsection (c). 
‘‘(g) SUBMISSION OF SERVICE CONTRACT INVEN-
TORY
BEFORE
PUBLIC-PRIVATE
COMPETITION.—Not-
withstanding any other provision of law, beginning in fis-
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HR 5136 PCS1S 
cal year 2011, if an executive agency has not submitted 
to the Office of Management and Budget the inventory 
required under subsection (a)(3) for the prior fiscal year, 
the agency may not begin, plan for, or announce a study 
or public-private competition regarding the conversion to 
contractor performance of any function performed by Fed-
eral employees pursuant to Office of Management and 
Budget Circular A–76 or any other administrative regula-
tion or directive until such time as the inventory is sub-
mitted for the prior fiscal year. 
‘‘(h) GAO REPORTS ON IMPLEMENTATION.— 
‘‘(1) REPORT ON GUIDANCE.—Not later than 
120 days after submission of the report by the Di-
rector of the Office of Management and Budget re-
quired under subsection (a)(2), the Comptroller Gen-
eral of the United States shall report on the guid-
ance issued and actions taken by the Director. The 
report shall be submitted to the Committee on 
Homeland Security and Governmental Affairs and 
the Committee on Appropriations of the Senate and 
the Committee on Oversight and Government Re-
form and the Committee on Appropriations of the 
House of Representatives. 
‘‘(2) REPORTS ON INVENTORIES.— 
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HR 5136 PCS1S 
‘‘(A) INITIAL INVENTORY.—Not later than 
September 30, 2011, the Comptroller General 
of the United States shall submit a report to 
the Committees named in the preceding para-
graph on the initial implementation by executive 
agencies of the inventory requirement in sub-
section (a)(3) with respect to inventories re-
quired to be submitted by December 31, 2010. 
‘‘(B) SECOND INVENTORY.—Not later than 
September 30, 2012, the Comptroller General 
shall submit a report to the same Committees 
on annual inventories required to be submitted 
by December 31, 2011. 
‘‘(3) PERIODIC
BRIEFINGS.—The Comptroller 
General shall provide periodic briefings, as may be 
requested by the Committees, on matters related to 
implementation of this section. 
‘‘(i) EXECUTIVE AGENCY DEFINED.—In this section, 
the term ‘executive agency’ has the meaning given the 
term in section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions in section 1 of such Act is amended by adding 
at the end the following new item: 
‘‘Sec. 45. Service contract inventory requirement.’’. 
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HR 5136 PCS1S 
(3) REPEAL
OF
SUPERSEDED
LAW.—Section 
743(c) of the Financial Services and General Gov-
ernment Appropriations Act, 2010 (Public Law 
111–117; 123 Stat. 3216) is amended by striking 
‘‘and annually thereafter,’’. 
(b) PROHIBITION AGAINST DIRECT CONVERSIONS.— 
(1) IN GENERAL.—Section 43(a)(1) of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 
439) is amended by striking ‘‘10 or more’’. 
(2) GUIDANCE.—Not later than 60 days after 
the date of the enactment of this Act, the Director 
of the Office of Management and Budget shall issue 
guidance to all Federal agencies other than the De-
partment of Defense to ensure that no function last 
performed by Federal employees is converted to con-
tractor performance without complying with the re-
quirements of section 43 of such Act, as amended by 
this section. 
(c) GUIDELINES ON INSOURCING NEW AND CON-
TRACTED OUT FUNCTIONS.— 
(1) IN GENERAL.—The Office of Federal Pro-
curement Policy Act (41 U.S.C. 403 et seq.), as 
amended by subsection (a), is further amended by 
adding at the end the following new section: 
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HR 5136 PCS1S 
‘‘SEC. 46. GUIDELINES ON INSOURCING NEW AND CON-
TRACTED OUT FUNCTIONS. 
‘‘(a) GUIDELINES REQUIRED.—(1) The heads of ex-
ecutive agencies subject to the Federal Activities Inventory 
Reform Act of 1998 (Public Law 105–270; 31 U.S.C. 501 
note) shall devise and implement guidelines and proce-
dures to ensure that consideration is given to using, on 
a regular basis, Federal employees to perform new func-
tions and functions that are performed by contractors and 
could be performed by Federal employees. 
‘‘(2) The guidelines and procedures required under 
subparagraph (A) may not include any specific limitation 
or restriction on the number of functions or activities that 
may be converted to performance by Federal employees. 
‘‘(b) SPECIAL CONSIDERATION FOR CERTAIN FUNC-
TIONS.—The guidelines and procedures required under 
paragraph (1) shall provide for special consideration to be 
given to using Federal employees to perform any function 
that— 
‘‘(1) is performed by a contractor and— 
‘‘(A) has been performed by Federal em-
ployees at any time during the previous 10 
years; 
‘‘(B) is a function closely associated with 
the performance of an inherently governmental 
function; 
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HR 5136 PCS1S 
‘‘(C) has been performed pursuant to a 
contract awarded on a non-competitive basis; or 
‘‘(D) has been performed poorly, as deter-
mined by a contracting officer during the 5- 
year period preceding the date of such deter-
mination, because of excessive costs or inferior 
quality; or 
‘‘(2) is a new requirement, with particular em-
phasis given to a new requirement that is similar to 
a function previously performed by Federal employ-
ees or is a function closely associated with the per-
formance of an inherently governmental function. 
‘‘(c) EXCLUSION
OF CERTAIN FUNCTIONS FROM 
COMPETITIONS.—The head of an executive agency may 
not conduct a public-private competition under Office of 
Management and Budget Circular A–76 or any other pro-
vision of law or regulation before— 
‘‘(1) in the case of a new agency function, as-
signing the performance of the function to Federal 
employees; 
‘‘(2) in the case of any agency function de-
scribed in paragraph (2), converting the function to 
performance by Federal employees; or 
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HR 5136 PCS1S 
‘‘(3) in the case of an agency function per-
formed by Federal employees, expanding the scope 
of the function. 
‘‘(d) DEADLINE.—(1) The head of each executive 
agency shall implement the guidelines and procedures re-
quired under this subsection by not later than 120 days 
after the date of the enactment of this subsection. 
‘‘(2) Not later than 210 days after the date of 
the enactment of this subsection, the Government 
Accountability Office shall submit a report on the 
implementation of this subsection to the Committees 
on Appropriations of the House of Representatives 
and the Senate, the Committee on Oversight and 
Government Reform of the House of Representa-
tives, and the Committee on Homeland Security and 
Governmental Affairs of the Senate. 
‘‘(e) DEFINITIONS.—In this subsection: 
‘‘(1) The term ‘inherently governmental func-
tions’ has the meaning given such term in subpart 
7.5 of part 7 of the Federal Acquisition Regulation. 
‘‘(2) The term ‘functions closely associated with 
inherently governmental functions’ means the func-
tions described in section 7.503(d) of the Federal 
Acquisition Regulation. 
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‘‘(f) APPLICABILITY.—This subsection shall not apply 
to the Department of Defense.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions in section 1 of such Act, as amended by sub-
section (a), is further amended by adding at the end 
the following new item: 
‘‘Sec. 46. Guidelines on insourcing new and contracted out functions.’’. 
(3) REPEAL OF SUPERSEDED LAW.—Subsection 
(b) of section 739 of division D of the Consolidated 
Appropriations Act, 2008 (Public Law 110–161; 
121 Stat. 2030) is repealed. 
(d) CONVERSION OF FUNCTIONS TO PERFORMANCE 
BY FEDERAL EMPLOYEES.— 
(1) DECISION
TO
INSOURCE.—The Office of 
Management and Budget shall not establish any nu-
merical goal, target, or quota for the conversion to 
performance by Federal employees of functions pre-
viously performed by contractors unless such goal, 
target, or quota is based on considered research and 
analysis. 
(2) REPORTS.— 
(A) REPORT TO CONGRESS.—The Office of 
Management and Budget shall submit to Con-
gress a report on the aggregate results of the 
efforts of each Federal agency to convert func-
tions from contractor performance to perform-
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HR 5136 PCS1S 
ance by Federal agency employees made during 
fiscal year 2010. Such report shall include— 
(i) agency decisions for converting 
such functions to Federal employee per-
formance; 
(ii) the basis and rationale for the 
agency decisions; and 
(iii) the number of contractor employ-
ees whose functions were converted to per-
formance by Federal employees. 
(B) COMPTROLLER
GENERAL
REPORT.— 
Not later than 120 days after the submittal of 
the report under paragraph (1), the Comp-
troller General of the United States shall sub-
mit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, 
and the Committee on Homeland Security and 
Governmental Affairs of the Senate an assess-
ment of the report. 
(3) DEPARTMENT
OF
DEFENSE.—Nothing in 
this subsection shall apply to the Department of De-
fense. 
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SEC. 851. REQUIREMENT TO JUSTIFY THE USE OF FACTORS 
OTHER THAN COST OR PRICE AS THE PRE-
DOMINATE FACTORS IN EVALUATING COM-
PETITIVE PROPOSALS FOR DEFENSE PRO-
CUREMENT CONTRACTS. 
(a) REQUIREMENT.—Subparagraph (A) of section 
2305(a)(2) of title 10, United States Code, is amended— 
(1) by striking ‘‘and’’ at the end of clause (i); 
and 
(2) by inserting after clause (ii) the following 
new clause: 
‘‘(iii) in the case of a solicitation in which 
factors other than cost or price when combined 
are more important than cost or price, the rea-
sons why assigning at least equal importance to 
cost or price would not better serve the Govern-
ment’s interest; and’’. 
(b) REPORT.—Section 2305(a)(3) of such title is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) Not later than 180 days after the end of each 
fiscal year, the Secretary of Defense shall submit to Con-
gress, and post on a publicly available website of the De-
partment of Defense, a report describing the solicitations 
for which a statement pursuant to paragraph (2)(A)(iii) 
was included.’’. 
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HR 5136 PCS1S 
SEC. 852. PENALTIES ON CONTRACTORS NOT PROVIDING 
INFORMATION 
TO 
DATABASES 
ON 
CON-
TRACTS IN IRAQ AND AFGHANISTAN. 
Section 861 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 10 U.S.C. 
2302 note) is amended by adding at the end the following 
new subsection: 
‘‘(e) PENALTIES.—Any contract in Iraq or Afghani-
stan entered into or modified after September 1, 2011, 
shall include a clause requiring the imposition of a pen-
alty, by the department or agency awarding the contract, 
on any contractor that does not comply with requirements 
under this section, including requirements in the memo-
randum of understanding required by subsection (a), to 
provide information for the common databases identified 
under subsection (b)(4), including updating the informa-
tion required. The penalty shall consist of the withholding 
of award and incentive fees.’’. 
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HR 5136 PCS1S 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense 
Management 
SEC. 901. REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY 
AND MARINE CORPS. 
(a) REDESIGNATION OF THE DEPARTMENT OF THE 
NAVY AS THE DEPARTMENT OF THE NAVY AND MARINE 
CORPS.— 
(1) REDESIGNATION
OF
MILITARY
DEPART-
MENT.—The military department designated as the 
Department of the Navy is redesignated as the De-
partment of the Navy and Marine Corps. 
(2) 
REDESIGNATION
OF
SECRETARY
AND 
OTHER STATUTORY OFFICES.— 
(A) SECRETARY.—The position of the Sec-
retary of the Navy is redesignated as the Sec-
retary of the Navy and Marine Corps. 
(B) OTHER
STATUTORY
OFFICES.—The 
positions of the Under Secretary of the Navy, 
the four Assistant Secretaries of the Navy, and 
the General Counsel of the Department of the 
Navy are redesignated as the Under Secretary 
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HR 5136 PCS1S 
of the Navy and Marine Corps, the Assistant 
Secretaries of the Navy and Marine Corps, and 
the General Counsel of the Department of the 
Navy and Marine Corps, respectively. 
(b) CONFORMING
AMENDMENTS
TO
TITLE
10, 
UNITED STATES CODE.— 
(1) 
DEFINITION
OF
‘‘MILITARY
DEPART-
MENT’’.—Paragraph (8) of section 101(a) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(8) The term ‘military department’ means the 
Department of the Army, the Department of the 
Navy and Marine Corps, and the Department of the 
Air Force.’’. 
(2) ORGANIZATION OF DEPARTMENT.—The text 
of section 5011 of such title is amended to read as 
follows: ‘‘The Department of the Navy and Marine 
Corps is separately organized under the Secretary of 
the Navy and Marine Corps.’’. 
(3) 
POSITION
OF
SECRETARY.—Section 
5013(a)(1) of such title is amended by striking 
‘‘There is a Secretary of the Navy’’ and inserting 
‘‘There is a Secretary of the Navy and Marine 
Corps’’. 
(4) CHAPTER HEADINGS.— 
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‘‘(E) The Director of Small Business Pro-
grams, provided for under section 2508 of this 
title. 
‘‘(8) Such other offices and officials as may be 
established by law or the Secretary of Defense may 
establish or designate in the Office.’’. 
(3) PRINCIPAL
DEPUTY
UNDER
SECRETARIES 
OF DEFENSE.—Section 137a is amended— 
(A) in subsections (a)(1), (b), and (d), by 
striking ‘‘Deputy Under’’ each place it appears 
and inserting ‘‘Principal Deputy Under’’; 
(B) in subsection (a)(2), by striking ‘‘(A) 
The’’ and all that follows through ‘‘(5) of sub-
section (c)’’ and inserting ‘‘The Principal Dep-
uty Under Secretaries of Defense’’; 
(C) in subsection (c)— 
(i) by striking ‘‘One of the Deputy’’ in 
paragraphs (1), (2), (3), (4), and (5) and 
inserting ‘‘One of the Principal Deputy’’; 
(ii) by striking ‘‘appointed’’ and all 
that follows through ‘‘this title’’ in para-
graphs (1), (2), and (3); 
(iii) by striking ‘‘shall be’’ in para-
graphs (4) and (5) and inserting ‘‘is’’; and 
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(iv) by adding at the end of para-
graph (5) the following new sentence: ‘‘Any 
individual nominated for appointment as 
the Principal Deputy Under Secretary of 
Defense for Intelligence shall have exten-
sive intelligence expertise.’’; and 
(D) by adding at the end of subsection (d) 
the following new sentence: ‘‘The Principal 
Deputy Under Secretaries take precedence 
among themselves in the order prescribed by 
the Secretary of Defense.’’. 
(4) ASSISTANT SECRETARIES OF DEFENSE.— 
Section 138 is amended— 
(A) in subsection (a)— 
(i) by striking ‘‘12’’ and inserting 
‘‘17’’; and 
(ii) by striking ‘‘(A) The’’ and all that 
follows through ‘‘The other’’ and inserting 
‘‘The’’; 
(B) in subsection (b)— 
(i) by striking ‘‘shall be’’ in para-
graphs (2), (3), (4), (5), and (6) and in-
serting ‘‘is’’; 
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HR 5136 PCS1S 
(ii) by striking ‘‘appointed pursuant 
to section 138a of this title’’ in paragraph 
(7); and 
(iii) by adding at the end the fol-
lowing new paragraphs: 
‘‘(8) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Research and Engineering. In 
addition to any duties and powers prescribed under para-
graph (1), the Assistant Secretary of Defense for Research 
and Engineering shall have the duties specified in section 
138b of this title. 
‘‘(9) One of the Assistant Secretaries is the Assistant 
Secretary of Defense for Operational Energy Plans and 
Programs. In addition to any duties and powers prescribed 
under paragraph (1), the Assistant Secretary of Defense 
for Operational Energy Plans and Programs shall have 
the duties specified in section 138c of this title. 
‘‘(10) One of the Assistant Secretaries is the Assist-
ant Secretary of Defense for Cost Assessment and Pro-
gram Evaluation. In addition to any duties and powers 
prescribed under paragraph (1), the Assistant Secretary 
of Defense for Cost Assessment and Program Evaluation 
shall have the duties specified in section 138d of this title. 
‘‘(11) One of the Assistant Secretaries is the Assist-
ant Secretary of Defense for Nuclear, Chemical, and Bio-
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HR 5136 PCS1S 
ING’’ and all that follows through ‘‘Director of 
Systems Engineering’’ and inserting ‘‘SYSTEMS 
ENGINEERING.—The official designated under 
paragraph (1) shall closely coordinate with the 
official designated under subsection (b)’’; 
(D) in paragraph (4), as so redesignated, 
by striking ‘‘Director’’ in the matter preceding 
subparagraph (A) and inserting ‘‘official des-
ignated under paragraph (1)’’; 
(E) in paragraph (5), as so redesignated— 
(i) by striking ‘‘Director has’’ and in-
serting ‘‘official designated under para-
graph (1) has’’; 
(ii) by striking ‘‘Director considers’’ 
and inserting ‘‘designated official con-
siders’’; and 
(iii) by striking ‘‘the Director’s du-
ties’’ and inserting ‘‘that official’s duties’’; 
and 
(F) in paragraph (6), as so redesignated, 
by striking ‘‘serving as the Director of Develop-
mental Test and Evaluation’’ and inserting ‘‘of-
ficial designated under paragraph (1)’’. 
(3) DIRECTOR
OF
SYSTEMS
ENGINEERING.— 
Subsection (b) of such section is amended— 
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