448
SEC. 722. ADDITIONAL BENEFICIARIES UNDER TRICARE
PRIME REMOTE PROGRAM IN THE CONTI-
NENTAL UNITED STATES.
(a) COVERAGE OF OTHER UNIFORMED SERVICES.—
(1) Section 1074(c) of title 10, United States Code, is
amended—
(A) by striking ‘‘armed forces’’ each place it ap-
pears, except in paragraph (3)(A), and inserting
‘‘uniformed services’’;
(B) in paragraph (1), by inserting after ‘‘mili-
tary department’’ in the first sentence the following:
‘‘, the Department of Transportation (with respect
to the Coast Guard when it is not operating as a
service in the Navy), or the Department of Health
and Human Services (with respect to the National
Oceanic and Atmospheric Administration and the
Public Health Service)’’;
(C) in paragraph (2), by adding at the end the
following:
‘‘(C) The Secretary of Defense shall consult with the
other administering Secretaries in the administration of
this paragraph.’’; and
(D) in paragraph (3)(A), by striking ‘‘The Sec-
retary of Defense may not require a member of the
armed forces described in subparagraph (B)’’ and
449
inserting ‘‘A member of the uniformed services de-
scribed in subparagraph (B) may not be required’’.
(2)(A) Subsections (b), (c), and (d)(3) of section 731
of the National Defense Authorization Act for Fiscal Year
1998 (Public Law 105–85; 111 Stat. 1811; 10 U.S.C.
1074 note) are amended by striking ‘‘Armed Forces’’ and
inserting ‘‘uniformed services’’.
(B) Subsection (b) of such section is further amended
by adding at the end the following:
‘‘(4) The Secretary of Defense shall consult with the
other administering Secretaries in the administration of
this subsection.’’.
(C) Subsection (f) of such section is amended by add-
ing at the end the following:
‘‘(3) The terms ‘uniformed services’ and ‘ad-
ministering Secretaries’ have the meanings given
those terms in section 1072 of title 10, United
States Code.’’.
(3) Section 706(b) of the National Defense Author-
ization Act for Fiscal Year 2000 (Public Law 106–65; 113
Stat. 684) is amended by striking ‘‘Armed Forces’’ and
inserting ‘‘uniformed services (as defined in section
1072(1) of title 10, United States Code)’’.
450
(b) COVERAGE OF IMMEDIATE FAMILY.—(1) Section
1079 of title 10, United States Code, is amended by add-
ing at the end the following:
‘‘(p)(1) Subject to such exceptions as the Secretary
of Defense considers necessary, coverage for medical care
under this section for the dependents referred to in sub-
section (a) of a member of the uniformed services referred
to in section 1074(c)(3) of this title who are residing with
the member, and standards with respect to timely access
to such care, shall be comparable to coverage for medical
care and standards for timely access to such care under
the managed care option of the TRICARE program known
as TRICARE Prime.
‘‘(2) The Secretary of Defense shall enter into ar-
rangements with contractors under the TRICARE pro-
gram or with other appropriate contractors for the timely
and efficient processing of claims under this subsection.
‘‘(3) The Secretary of Defense shall consult with the
other administering Secretaries in the administration of
this subsection.’’.
(2) Section 731(b) of the National Defense Author-
ization Act for Fiscal Year 1998 (Public Law 105–85; 111
Stat. 1811; 10 U.S.C. 1074 note) is amended—
(A) in paragraph (1), by adding at the end the
following: ‘‘A dependent of the member, as described
451
in subparagraph (A), (D), or (I) of section 1072(2)
of title 10, United States Code, who is residing with
the member shall have the same entitlement to care
and to waiver of charges as the member.’’; and
(B) in paragraph (2), by inserting ‘‘or depend-
ent of the member, as the case may be,’’ after ‘‘(2)
A member’’.
(c) EFFECTIVE DATES; APPLICABILITY.—(1) The
amendments made by subsections (a)(1) and (b)(1) shall
take effect on October 1, 2001.
(2) The amendments made by subsection (a)(2), with
respect to members of the uniformed services, and the
amendments made by subsection (b)(2), with respect to
dependents of members, shall take effect on the date of
the enactment of this Act and shall expire with respect
to a member or the dependents of a member, respectively,
on the later of the following:
(A) The date that is one year after the date of
the enactment of this Act.
(B) The date on which the policies required by
the amendments made by subsection (a)(1) or (b)(1)
are implemented with respect to the coverage of
medical care for and provision of such care to the
member or dependents, respectively.
452
(3) Section 731(b)(3) of Public Law 105–85 does not
apply to a member of the Coast Guard, the National Oce-
anic and Atmospheric Administration, or the Commis-
sioned Corps of the Public Health Service, or to a depend-
ent of a member of a uniformed service.
SEC. 723. MODERNIZATION OF TRICARE BUSINESS PRAC-
TICES AND INCREASE OF USE OF MILITARY
TREATMENT FACILITIES.
(a) REQUIREMENT
TO
IMPLEMENT
INTERNET-
BASED SYSTEM.—Not later than October 1, 2001, the
Secretary of Defense shall implement a system to simplify
and make accessible through the use of the Internet,
through commercially available systems and products, crit-
ical administrative processes within the military health
care system and the TRICARE program. The purposes
of the system shall be to enhance efficiency, improve serv-
ice, and achieve commercially recognized standards of per-
formance.
(b) ELEMENTS OF SYSTEM.—The system required by
subsection (a)—
(1) shall comply with patient confidentiality and
security requirements, and incorporate data require-
ments, that are currently widely used by insurers
under medicare and commercial insurers;
453
(2) shall be designed to achieve improvements
with respect to—
(A) the availability and scheduling of ap-
pointments;
(B) the filing, processing, and payment of
claims;
(C) marketing and information initiatives;
(D) the continuation of enrollments with-
out expiration;
(E) the portability of enrollments nation-
wide;
(F) education of beneficiaries regarding
the military health care system and the
TRICARE program; and
(G) education of health care providers re-
garding such system and program; and
(3) may be implemented through a contractor
under TRICARE Prime.
(c) AREAS
OF IMPLEMENTATION.—The Secretary
shall implement the system required by subsection (a) in
at least one region under the TRICARE program.
(d) PLAN FOR IMPROVED PORTABILITY OF BENE-
FITS.—Not later than March 15, 2001, the Secretary of
Defense shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a plan
454
to provide portability and reciprocity of benefits for all en-
rollees under the TRICARE program throughout all
TRICARE regions.
(e) INCREASE
OF
USE
OF
MILITARY
MEDICAL
TREATMENT FACILITIES.—The Secretary shall initiate a
program to maximize the use of military medical treat-
ment facilities by improving the efficiency of health care
operations in such facilities.
(f) 
DEFINITION.—In 
this 
section 
the 
term
‘‘TRICARE program’’ has the meaning given such term
in section 1072 of title 10, United States Code.
SEC. 724. EXTENSION OF TRICARE MANAGED CARE SUP-
PORT CONTRACTS.
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law and subject to subsection (b), any TRICARE
managed care support contract in effect, or in the final
stages of acquisition, on September 30, 1999, may be ex-
tended for four years.
(b) CONDITIONS.—Any extension of a contract under
subsection (a)—
(1) may be made only if the Secretary of De-
fense determines that it is in the best interest of the
United States to do so; and
(2) shall be based on the price in the final best
and final offer for the last year of the existing con-
455
tract as adjusted for inflation and other factors mu-
tually agreed to by the contractor and the Federal
Government.
SEC. 725. REPORT ON PROTECTIONS AGAINST HEALTH
CARE PROVIDERS SEEKING DIRECT REIM-
BURSEMENT FROM MEMBERS OF THE UNI-
FORMED SERVICES.
Not later than January 31, 2001, the Secretary of
Defense shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a re-
port recommending practices to discourage or prohibit
health care providers under the TRICARE program, and
individuals or entities working on behalf of such providers,
from seeking direct reimbursement from members of the
uniformed services or their dependents for health care re-
ceived by such members or dependents.
SEC. 726. VOLUNTARY TERMINATION OF ENROLLMENT IN
TRICARE RETIREE DENTAL PROGRAM.
(a) PROCEDURES.—Section 1076c of title 10, United
States Code, is amended—
(1) by redesignating subsection (i) as subsection
(j); and
(2) by inserting after subsection (h) the fol-
lowing new subsection (i):
456
‘‘(i) VOLUNTARY DISENROLLMENT.—(1) With re-
spect to enrollment in the dental insurance plan estab-
lished under subsection (a), the Secretary of Defense—
‘‘(A) shall allow for a period of up to 30 days
at the beginning of the prescribed minimum enroll-
ment period during which an enrollee may disenroll;
and
‘‘(B) shall provide for limited circumstances
under which disenrollment shall be permitted during
the prescribed enrollment period, without jeopard-
izing the fiscal integrity of the dental program.
‘‘(2) The circumstances described in paragraph
(1)(B) shall include—
‘‘(A) a case in which a retired member, sur-
viving spouse, or dependent of a retired member who
is also a Federal employee is assigned to a location
outside the jurisdiction of the dental insurance plan
established under subsection (a) that prevents utili-
zation of dental benefits under the plan;
‘‘(B) a case in which a retired member, sur-
viving spouse, or dependent of a retired member is
prevented by a serious medical condition from being
able to obtain benefits under the plan;
‘‘(C) a case in which severe financial hardship
would result; and
457
‘‘(D) any other circumstances which the Sec-
retary considers appropriate.
‘‘(3) The Secretary shall establish procedures for
timely decisions on requests for disenrollment under this
section and for appeal to the TRICARE Management Ac-
tivity of adverse decisions.’’
(b) CLARIFYING AMENDMENT.—The heading for
subsection (f) is amended by striking ‘‘TERMINATION’’
and inserting ‘‘REQUIRED TERMINATIONS’’.
SEC. 727. CLAIMS PROCESSING IMPROVEMENTS.
Beginning on the date of the enactment of this Act,
the Secretary of Defense shall, to the maximum extent
practicable, take all necessary actions to implement the
following improvements with respect to processing of
claims under the TRICARE program:
(1) Use of the TRICARE encounter data infor-
mation system rather than the health care service
record in maintaining information on covered bene-
ficiaries under chapter 55 of title 10, United States
Code.
(2) Elimination of all delays in payment of
claims to health care providers that may result from
the development of the health care service record or
TRICARE encounter data information.
458
(3) Requiring all health care providers under
the TRICARE program that the Secretary deter-
mines are high-volume providers to submit claims
electronically.
(4) Processing 50 percent of all claims by
health care providers and institutions under the
TRICARE program by electronic means.
(5) Authorizing managed care support contrac-
tors under the TRICARE program to require pro-
viders to access information on the status of claims
through the use of telephone automated voice re-
sponse units.
SEC. 728. PRIOR AUTHORIZATIONS FOR CERTAIN REFER-
RALS 
AND 
NONAVAILABILITY-OF-HEALTH-
CARE STATEMENTS.
(a) PROHIBITION REGARDING PRIOR AUTHORIZA-
TION
FOR REFERRALS.—(1) Chapter 55 of title 10,
United States Code, is amended by inserting after section
1095e the following new section:
‘‘§ 1095f. TRICARE program: referrals for specialty
health care
‘‘The Secretary of Defense shall ensure that no con-
tract for managed care support under the TRICARE pro-
gram includes any requirement that a managed care sup-
port contractor require a primary care or specialty care
459
provider to obtain prior authorization before referring a
patient to a specialty care provider that is part of the net-
work of health care providers or institutions of the con-
tractor.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1095e the following new item:
‘‘1095f. TRICARE program: referrals for specialty health care.’’.
(b) REPORT.—Not later than February 1, 2001, the
Comptroller General shall submit to Congress a report on
the financial and management implications of eliminating
the requirement to obtain nonavailability-of-health-care
statements under section 1080 of title 10, United States
Code.
(c) EFFECTIVE DATE.—Section 1095f of title 10,
United States Code, as added by subsection (a), shall
apply with respect to a TRICARE managed care support
contract entered into by the Department of Defense after
the date of the enactment of this Act.
Subtitle D—Demonstration
Projects
SEC. 731. DEMONSTRATION PROJECT FOR EXPANDED AC-
CESS TO MENTAL HEALTH COUNSELORS.
(a) REQUIREMENT TO CONDUCT DEMONSTRATION
PROJECT.—The Secretary of Defense shall conduct a
demonstration project under which licensed and certified
460
professional mental health counselors who meet eligibility
requirements for participation as providers under the Ci-
vilian Health and Medical Program of the Uniformed
Services (hereafter in this section referred to as
‘‘CHAMPUS’’) or the TRICARE program may provide
services to covered beneficiaries under chapter 55 of title
10, United States Code, without referral by physicians or
adherence to supervision requirements.
(b) DURATION AND LOCATION OF PROJECT.—The
Secretary shall conduct the demonstration project required
by subsection (a)—
(1) during the 2-year period beginning October
1, 2001; and
(2) in one established TRICARE region.
(c) REGULATIONS.—The Secretary shall prescribe
regulations regarding participation in the demonstration
project required by subsection (a).
(d) PLAN FOR PROJECT.—Not later than March 31,
2001, the Secretary shall submit to the Committees on
Armed Services of the Senate and the House of Represent-
atives a plan to carry out the demonstration project. The
plan shall include, but not be limited to, a description of
the following:
(1) The TRICARE region in which the project
will be conducted.
461
(2) The estimated funds required to carry out
the demonstration project.
(3) The criteria for determining which profes-
sional mental health counselors will be authorized to
participate under the demonstration project.
(4) The plan of action, including critical mile-
stone dates, for carrying out the demonstration
project.
(e) REPORT.—Not later than February 1, 2003, the
Secretary shall submit to Congress a report on the dem-
onstration project carried out under this section. The re-
port shall include the following:
(1) A description of the extent to which expend-
itures for reimbursement of licensed or certified pro-
fessional mental health counselors change as a result
of allowing the independent practice of such coun-
selors.
(2) Data on utilization and reimbursement re-
garding non-physician mental health professionals
other than licensed or certified professional mental
health counselors under CHAMPUS and the
TRICARE program.
(3) Data on utilization and reimbursement re-
garding physicians who make referrals to, and su-
pervise, mental health counselors.
462
(4) A description of the administrative costs in-
curred as a result of the requirement for documenta-
tion of referral to mental health counselors and su-
pervision activities for such counselors.
(5) For each of the categories described in
paragraphs (1) through (4), a comparison of data
for a 1-year period for the area in which the dem-
onstration project is being implemented with cor-
responding data for a similar area in which the dem-
onstration project is not being implemented.
(6) A description of the ways in which allowing
for independent reimbursement of licensed or cer-
tified professional mental health counselors affects
the confidentiality of mental health and substance
abuse services for covered beneficiaries under
CHAMPUS and the TRICARE program.
(7) A description of the effect, if any, of chang-
ing reimbursement policies on the health and treat-
ment of covered beneficiaries under CHAMPUS and
the TRICARE program, including a comparison of
the treatment outcomes of covered beneficiaries who
receive mental health services from licensed or cer-
tified professional mental health counselors acting
under physician referral and supervision, other non-
physician mental health providers recognized under
463
CHAMPUS and the TRICARE program, and physi-
cians, with treatment outcomes under the dem-
onstration project allowing independent practice of
professional counselors on the same basis as other
non-physician mental health providers.
(8) The effect of policies of the Department of
Defense on the willingness of licensed or certified
professional mental health counselors to participate
as health care providers in CHAMPUS and the
TRICARE program.
(9) Any policy requests or recommendations re-
garding mental health counselors made by health
care plans and managed care organizations partici-
pating in CHAMPUS or the TRICARE program.
SEC. 732. TELERADIOLOGY DEMONSTRATION PROJECT.
(a) AUTHORITY TO CONDUCT PROJECT.—(1) The
Secretary of Defense may conduct a demonstration project
for the purposes of increasing efficiency of operations with
respect to teleradiology at military medical treatment fa-
cilities, supporting remote clinics, and increasing coordina-
tion with respect to teleradiology between such facilities
and clinics. Under the project, a military medical treat-
ment facility and each clinic supported by such facility
shall be linked by a digital radiology network through
464
which digital radiology X-rays may be sent electronically
from clinics to the military medical treatment facility.
(2) The demonstration project may be conducted at
several multispecialty tertiary-care military medical treat-
ment facilities affiliated with a university medical school.
One of such facilities shall be supported by at least 5 geo-
graphically dispersed remote clinics of the Departments
of the Army, Navy, and Air Force, and clinics of the De-
partment of Veterans Affairs and the Coast Guard. An-
other of such facilities shall be in an underserved rural
geographic region served under established telemedicine
contracts between the Department of Defense, the Depart-
ment of Veterans Affairs, and a local university.
(b) DURATION OF PROJECT.—The Secretary shall
conduct the project during the 2-year period beginning on
the date of the enactment of this Act.
SEC. 733. HEALTH CARE MANAGEMENT DEMONSTRATION
PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Defense
shall carry out a demonstration program on health care
management to explore opportunities for improving the
planning, programming, budgeting systems, and manage-
ment of the Department of Defense health care system.
465
(b) TEST MODELS.—Under the demonstration pro-
gram, the Secretary shall test the use of the following
planning and management models:
(1) A health care simulation model for studying
alternative delivery policies, processes, organizations,
and technologies.
(2) A health care simulation model for studying
long term disease management.
(c) DEMONSTRATION SITES.—The Secretary shall
test each model separately at one or more sites.
(d) PERIOD FOR PROGRAM.—The demonstration pro-
gram shall begin not later than 180 days after the date
of the enactment of this Act and shall terminate on De-
cember 31, 2001.
(e) REPORTS.—The Secretary of Defense shall sub-
mit a report on the demonstration program to the Com-
mittees on Armed Services of the Senate and the House
of Representatives not later than March 15, 2002. The
report shall include the Secretary’s assessment of the
value of incorporating the use of the tested planning and
management models throughout the planning, program-
ming, budgeting systems, and management of the Depart-
ment of Defense health care system.
(f) FUNDING.—Of the amount authorized to be ap-
propriated under section 301(22), $6,000,000 shall be
466
available for the demonstration program under this sec-
tion.
Subtitle E—Joint Initiatives With
Department of Veterans Affairs
SEC. 741. VA-DOD SHARING AGREEMENTS FOR HEALTH
SERVICES.
(a) PRIMACY OF SHARING AGREEMENTS.—The Sec-
retary of Defense shall—
(1) give full force and effect to any agreement
into which the Secretary or the Secretary of a mili-
tary department entered under section 8111 of title
38, United States Code, or under section 1535 of
title 31, United States Code, which was in effect on
September 30, 1999; and
(2) ensure that the Secretary of the military de-
partment concerned directly reimburses the Sec-
retary of Veterans Affairs for any services or re-
sources provided under such agreement in accord-
ance with the terms of such agreement, including
terms providing for reimbursement from funds avail-
able for that military department.
(b) MODIFICATION OR TERMINATION.—Any agree-
ment described in subsection (a) shall remain in effect in
accordance with such subsection unless, during the 12-
month period following the date of the enactment of this
467
Act, such agreement is modified or terminated in accord-
ance with the terms of such agreement.
SEC. 742. PROCESSES FOR PATIENT SAFETY IN MILITARY
AND VETERANS HEALTH CARE SYSTEMS.
(a) ERROR TRACKING PROCESS.—The Secretary of
Defense shall implement a centralized process for report-
ing, compilation, and analysis of errors in the provision
of health care under the defense health program that en-
danger patients beyond the normal risks associated with
the care and treatment of such patients. To the extent
practicable, that process shall emulate the system estab-
lished by the Secretary of Veterans Affairs for reporting,
compilation, and analysis of errors in the provision of
health care under the Department of Veterans Affairs
health care system that endanger patients beyond such
risks.
(b) SHARING OF INFORMATION.—The Secretary of
Defense and the Secretary of Veterans Affairs—
(1) shall share information regarding the de-
signs of systems or protocols established to reduce
errors in the provision of health care described in
subsection (a); and
(2) shall develop such protocols as the Secre-
taries consider necessary for the establishment and
468
administration of effective processes for the report-
ing, compilation, and analysis of such errors.
SEC. 
743. 
COOPERATION 
IN 
DEVELOPING 
PHARMA-
CEUTICAL IDENTIFICATION TECHNOLOGY.
The Secretary of Defense and the Secretary of Vet-
erans Affairs shall cooperate in developing systems for the
use of bar codes for the identification of pharmaceuticals
in the health care programs of the Department of Defense
and the Department of Veterans Affairs. In any case in
which a common pharmaceutical is used in such programs,
the bar codes for those pharmaceuticals shall, to the max-
imum extent practicable, be identical.
Subtitle F—Other Matters
SEC. 751. MANAGEMENT OF ANTHRAX VACCINE IMMUNIZA-
TION PROGRAM.
(a) SYSTEM AND PROCEDURES FOR TRACKING SEPA-
RATIONS.—(1) Chapter 59 of title 10, United States Code,
is amended by adding at the end the following new section:
‘‘§ 1178. System and procedures for tracking separa-
tions resulting from refusal to participate
in anthrax vaccine immunization pro-
gram
‘‘(a) REQUIREMENT TO ESTABLISH SYSTEM.—The
Secretary of each military department shall establish a
system for tracking, recording, and reporting separations
469
of members of the armed forces under the Secretary’s ju-
risdiction that result from procedures initiated as a result
of a refusal to participate in the anthrax vaccine immuni-
zation program.
‘‘(b) REPORT.—The Secretary of Defense shall con-
solidate the information recorded under the system de-
scribed in subsection (a) and shall submit to the Commit-
tees on Armed Services of the Senate and the House of
Representatives not later than April 1 of each year a re-
port on such information. Each such report shall include
a description of—
‘‘(1) the number of members separated, cat-
egorized by military department, grade, and active-
duty or reserve status; and
‘‘(2) any other information determined appro-
priate by the Secretary.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1178. System and procedures for tracking separations resulting from refusal
to participate in anthrax vaccine immunization program.’’.
(b) PROCEDURES FOR EXEMPTIONS; MONITORING
ADVERSE REACTIONS.—(1) Chapter 55 of such title is
amended by adding at the end the following new section:
470
‘‘§ 1110. Anthrax vaccine immunization program; pro-
cedures for exemptions and monitoring
reactions
‘‘(a) PROCEDURES FOR MEDICAL AND ADMINISTRA-
TIVE EXEMPTIONS.—(1) The Secretary of Defense shall
establish uniform procedures under which members of the
armed forces may be exempted from participating in the
anthrax vaccine immunization program for either adminis-
trative or medical reasons.
‘‘(2) The Secretaries of the military departments
shall provide for notification of all members of the armed
forces of the procedures established pursuant to para-
graph (1).
‘‘(b) SYSTEM
FOR MONITORING ADVERSE REAC-
TIONS.—(1) The Secretary shall establish a system for
monitoring adverse reactions of members of the armed
forces to the anthrax vaccine. That system shall include
the following:
‘‘(A) Independent review of Vaccine Adverse
Event Reporting System reports.
‘‘(B) Periodic surveys of personnel to whom the
vaccine is administered.
‘‘(C) A continuing longitudinal study of a pre-
identified group of members of the armed forces (in-
cluding men and women and members from all serv-
ices).
471
‘‘(D) Active surveillance of a sample of mem-
bers to whom the anthrax vaccine has been adminis-
tered that is sufficient to identify, at the earliest op-
portunity, any patterns of adverse reactions, the dis-
covery of which might be delayed by reliance solely
on the Vaccine Adverse Event Reporting System.
‘‘(2) The Secretary may extend or expand any ongo-
ing or planned study or analysis of trends in adverse reac-
tions of members of the armed forces to the anthrax vac-
cine in order to meet any of the requirements in paragraph
(1).
‘‘(3) The Secretary shall establish guidelines under
which members of the armed forces who are determined
by an independent expert panel to be experiencing unex-
plained adverse reactions may obtain access to a Depart-
ment of Defense Center of Excellence treatment facility
for expedited treatment and follow up.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘1110. Anthrax vaccine immunization program; procedures for exemptions and
monitoring reactions.’’.
(c) 
EMERGENCY
ESSENTIAL
EMPLOYEES.—(1)
Chapter 81 of such title is amended by inserting after sec-
tion 1580 the following new section:
472
‘‘§ 1580a. Emergency essential employees: notification
of required participation in anthrax vac-
cine immunization program
‘‘The Secretary of Defense shall—
‘‘(1) prescribe regulations for the purpose of en-
suring that any civilian employee of the Department
of Defense who is determined to be an emergency es-
sential employee and who is required to participate
in the anthrax vaccine immunization program is no-
tified of the requirement to participate in the pro-
gram and the consequences of a decision not to par-
ticipate; and
‘‘(2) ensure that any individual who is being
considered for a position as such an employee is no-
tified of the obligation to participate in the program
before being offered employment in such position.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1580 the following new item:
‘‘1580a. Emergency essential employees: notification of required participation in
anthrax vaccine immunization program.’’.
(d) COMPTROLLER GENERAL REPORT.—(1) Not
later than April 1, 2002, the Comptroller General shall
submit to the Committees on Armed Services of the Sen-
ate and the House of Representatives a report on the ef-
fect of the Department of Defense anthrax vaccine immu-
473
nization program on the recruitment and retention of ac-
tive duty and reserve military personnel and civilian per-
sonnel of the Department of Defense. The study shall
cover the period beginning on the date of the enactment
of this Act and ending on December 31, 2001.
(2) The Comptroller General shall include in the re-
port required by paragraph (1) a description of any per-
sonnel actions (including transfer, termination, or reas-
signment of any personnel) taken as a result of the refusal
of any civilian employee of the Department of Defense to
participate in the anthrax vaccine immunization program.
(e) DEADLINES FOR ESTABLISHMENT AND IMPLE-
MENTATION.—The Secretary of Defense shall—
(1) not later than April 1, 2001, establish the
uniform procedures for exemption from participation
in the anthrax vaccine immunization program of the
Department of Defense required under subsection
(a) of section 1110 of title 10, United States Code
(as added by subsection (b));
(2) not later than July 1, 2001, establish the
system for monitoring adverse reactions of members
of the Armed Forces to the anthrax vaccine required
under subsection (b)(1) of such section;
(3) not later than April 1, 2001, establish the
guidelines under which members of the Armed
474
Forces may obtain access to a Department of De-
fense Center of Excellence treatment facility for ex-
pedited treatment and follow up required under sub-
section (b)(3) of such section; and
(4) not later than July 1, 2001, prescribe the
regulations regarding emergency essential employees
of the Department of Defense required under sub-
section (a) of section 1580a of such title (as added
by subsection(c)).
SEC. 752. ELIMINATION OF COPAYMENTS FOR IMMEDIATE
FAMILY.
(a) NO COPAYMENT FOR IMMEDIATE FAMILY.—Sec-
tion 1097a of title 10, United States Code, is amended—
(1) by redesignating subsection (e) as sub-
section (f); and
(2) by inserting after subsection (d) the fol-
lowing new subsection (e):
‘‘(e) NO COPAYMENT FOR IMMEDIATE FAMILY.—No
copayment shall be charged a member for care provided
under TRICARE Prime to a dependent of a member of
the uniformed services described in subparagraph (A),
(D), or (I) of section 1072 of this title.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect 180 days after the date
475
of the enactment of this Act, and shall apply with respect
to care provided on or after that date.
SEC. 753. MEDICAL INFORMATICS.
(a) ADDITIONAL MATTERS FOR ANNUAL REPORT ON
MEDICAL INFORMATICS ADVISORY COMMITTEE.—Section
723(d)(5) of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106–65; 113 Stat. 697; 10
U.S.C. 1071 note) is amended to read as follows:
‘‘(5) The Secretary of Defense shall submit to Con-
gress an annual report on medical informatics. The report
shall include a discussion of the following matters:
‘‘(A) The activities of the Committee.
‘‘(B) The coordination of development, deploy-
ment, and maintenance of health care informatics
systems within the Federal Government, and be-
tween the Federal Government and the private sec-
tor.
‘‘(C) The progress or growth occurring in med-
ical informatics.
‘‘(D) How the TRICARE program and the De-
partment of Veterans Affairs health care system can
use the advancement of knowledge in medical
informatics to raise the standards of health care and
treatment and the expectations for improving health
care and treatment.’’.
476
(b) LIMITATION ON FISCAL YEAR 2001 FUNDING
FOR
PHARMACEUTICALS-RELATED
MEDICAL
INFORMATICS.—Of the funds authorized to be appro-
priated under section 301(22), any amounts used for
pharmaceuticals-related informatics may be used only for
the following:
(1) Commencement of the implementation of a
new computerized medical record, including an auto-
mated entry order system for pharmaceuticals and
an infrastructure network that is compliant with the
provisions enacted in the Health Insurance Port-
ability and Accountability Act of 1996 (Public Law
104–191; 110 Stat. 1936), to make all relevant clin-
ical information on beneficiaries under the Defense
Health Program available when needed.
(2) An integrated pharmacy system under the
Defense Health Program that creates a single profile
for all pharmaceuticals for such beneficiaries pre-
scribed at military medical treatment facilities or
private pharmacies that are part of the Department
of Defense pharmacy network.
477
SEC. 754. PATIENT CARE REPORTING AND MANAGEMENT
SYSTEM.
(a) ESTABLISHMENT.—The Secretary of Defense
shall establish a patient care error reporting and manage-
ment system.
(b) PURPOSES OF SYSTEM.—The purposes of the sys-
tem are as follows:
(1) To study the occurrences of errors in the
patient care provided under chapter 55 of title 10,
United States Code.
(2) To identify the systemic factors that are as-
sociated with such occurrences.
(3) To provide for action to be taken to correct
the identified systemic factors.
(c) REQUIREMENTS FOR SYSTEM.—The patient care
error reporting and management system shall include the
following:
(1) A hospital-level patient safety center, within
the quality assurance department of each health care
organization of the Department of Defense, to col-
lect, assess, and report on the nature and frequency
of errors related to patient care.
(2) For each health care organization of the
Department of Defense and for the entire Defense
health program, patient safety standards that are
necessary for the development of a full under-
478
standing of patient safety issues in each such orga-
nization and the entire program, including the na-
ture and types of errors and the systemic causes of
the errors.
(3) Establishment of a Department of Defense
Patient Safety Center within the Armed Forces In-
stitute of Pathology, which shall have the following
missions:
(A) To analyze information on patient care
errors that is submitted to the Center by each
military health care organization.
(B) To develop action plans for addressing
patterns of patient care errors.
(C) To execute those action plans to miti-
gate and control errors in patient care with a
goal of ensuring that the health care organiza-
tions of the Department of Defense provide
highly reliable patient care with virtually no
error.
(D) To provide, through the Assistant Sec-
retary of Defense for Health Affairs, to the
Agency for Healthcare Research and Quality of
the Department of Health and Human Services
any reports that the Assistant Secretary deter-
mines appropriate.
479
(E) To review and integrate processes for
reducing errors associated with patient care and
for enhancing patient safety.
(F) To contract with a qualified and objec-
tive external organization to manage the na-
tional patient safety database of the Depart-
ment of Defense.
(d) MEDTEAMS PROGRAM.—The Secretary shall ex-
pand the health care team coordination program to inte-
grate that program into all Department of Defense health
care operations. In carrying out this subsection, the Sec-
retary shall take the following actions:
(1) Establish not less than two Centers of Ex-
cellence for the development, validation, prolifera-
tion, and sustainment of the health care team co-
ordination program, one of which shall support all
fixed military health care organizations, the other of
which shall support all combat casualty care organi-
zations.
(2) Deploy the program to all fixed and combat
casualty care organizations of each of the Armed
Forces, at the rate of not less than 10 organizations
in each fiscal year.
(3) Expand the scope of the health care team
coordination program from a focus on emergency de-
480
partment care to a coverage that includes care in all
major medical specialties, at the rate of not less
than one specialty in each fiscal year.
(4) Continue research and development invest-
ments to improve communication, coordination, and
team work in the provision of health care.
(e) CONSULTATION.—The Secretary shall consult
with the other administering Secretaries (as defined in
section 1072(3) of title 10, United States Code) in car-
rying out this section.
SEC. 755. AUGMENTATION OF ARMY MEDICAL DEPART-
MENT BY DETAILING RESERVE OFFICERS OF
THE PUBLIC HEALTH SERVICE.
(a) AUTHORITY.—The Secretary of the Army and the
Secretary of Health and Human Services may jointly con-
duct a program to augment the Army Medical Department
by exercising any authorities provided to those officials in
law for the detailing of reserve commissioned officers of
the Public Health Service not in an active status to the
Army Medical Department for that purpose.
(b) AGREEMENT.—The Secretary of the Army and
the Secretary of Health and Human Services shall enter
into an agreement governing any program conducted
under subsection (a).
481
(c) ASSESSMENT.—(1) The Secretary of the Army
shall review the laws providing the authorities described
in subsection (a) and assess the adequacy of those laws
for authorizing—
(A) the Secretary of Health and Human Serv-
ices to detail reserve commissioned officers of the
Public Health Service not in an active status to the
Army Medical Department to augment that depart-
ment; and
(B) the Secretary of the Army to accept the de-
tail of such officers for that purpose.
(2) The Secretary shall complete the review and as-
sessment under paragraph (1) not later than 90 days after
the date of the enactment of this Act.
(d) REPORT TO CONGRESS.—Not later than March
1, 2001, the Secretary of the Army shall submit a report
on the results of the review and assessment under sub-
section (c) to the Committees on Armed Services of the
Senate and the House of Representatives. The report shall
include the following:
(1) The findings resulting from the review and
assessment.
(2) Any proposal for legislation that the Sec-
retary recommends to strengthen the authority of
the Secretary of Health and Human Services and
482
the authority of the Secretary of the Army to take
the actions described in subparagraphs (A) and (B),
respectively, of subsection (c)(1).
(e) CONSULTATION REQUIREMENT.—The Secretary
of the Army shall consult with the Secretary of Health
and Human Services in carrying out the review and as-
sessment under subsection (c) and in preparing the report
(including making recommendations) under subsection
(d).
SEC. 756. PRIVACY OF DEPARTMENT OF DEFENSE MEDICAL
RECORDS.
(a) COMPREHENSIVE PLAN.—Not later than April 1,
2001, the Secretary of Defense shall submit to Congress
a comprehensive plan to improve privacy protections for
medical records maintained by the Department of De-
fense. Such plan shall be consistent with the regulations
promulgated under section 264(c) of the Health Insurance
Portability and Accountability Act of 1996 (Public Law
104–191; 42 U.S.C. 1320d–2 note).
(b) INTERIM REGULATIONS.—(1) Notwithstanding
any other provision of law, the Secretary shall prescribe
interim regulations, pending full implementation of the
comprehensive plan described in subsection (a), to improve
privacy protections for medical records maintained by the
Department of Defense.
483
(2) The regulations prescribed under paragraph (1)
shall provide maximum protections for privacy consistent
with such actions that the Secretary determines are nec-
essary for purposes of national security, law enforcement,
patient treatment, public health reporting, accreditation
and licensure review activities, external peer review and
other quality assurance program activities, payment for
health care services, fraud and abuse prevention, judicial
and administrative proceedings, research consistent with
regulations on Governmentwide protection of human sub-
jects, Department of Veterans Affairs benefit programs,
and any other purposes identified by the Secretary for the
responsible management of the military health care sys-
tem.
SEC. 757. AUTHORITY TO ESTABLISH SPECIAL LOCALITY-
BASED REIMBURSEMENT RATES; REPORTS.
(a) IN GENERAL.—Section 1079(h) of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(5) To assure access to care for all covered bene-
ficiaries, the Secretary of Defense, in consultation with the
other administering Secretaries, shall designate specific
rates for reimbursement for services in certain localities
if the Secretary determines that without payment of such
rates access to health care services would be severely im-
484
paired. Such a determination shall be based on consider-
ation of the number of providers in a locality who provide
the services, the number of such providers who are
CHAMPUS participating providers, the number of cov-
ered beneficiaries under CHAMPUS in the locality, the
availability of military providers in the location or a near-
by location, and any other factors determined to be rel-
evant by the Secretary.’’.
(b) REPORTS.—(1) Not later than March 31, 2001,
the Secretary of Defense shall submit to the Committees
on Armed Services of the Senate and the House of Rep-
resentatives and the General Accounting Office a report
on actions taken to carry out section 1079(h)(5) of title
10, United States Code (as added by subsection (a)) and
section 1097b of such title.
(2) Not later than May 1, 2001, the Comptroller Gen-
eral shall submit to Congress a report analyzing the utility
of—
(A) increased reimbursement authorities with
respect to ensuring the availability of network pro-
viders 
and 
nonnetwork 
providers 
under 
the
TRICARE program to covered beneficiaries under
chapter 55 of such title; and
(B) requiring a reimbursement limitation of 70
percent of usual and customary rates rather than
485
115 percent of maximum allowable charges under
the Civilian Health and Medical Program of the
Uniformed Services.
(3)(A) Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall sub-
mit to the Committees on Armed Services of the Senate
and the House of Representatives a report on the extent
to which physicians are choosing not to participate in con-
tracts for the furnishing of health care in rural States
under chapter 55 of title 10, United States Code. The re-
port shall include the following:
(i) The number of physicians in rural States
who are withdrawing from participation, or other-
wise refusing to participate, in the health care con-
tracts.
(ii) The reasons for the withdrawals and refus-
als.
(iii) The actions that the Secretary of Defense
can take to encourage more physicians to participate
in the health care contracts.
(iv) Any recommendations for legislation that
the Secretary considers necessary to encourage more
physicians to participate in the health care con-
tracts.
486
(B) In this paragraph, the term ‘‘rural State’’ means
a State that has, on average, as determined by the Bureau
of the Census in the latest decennial census—
(i) fewer than 76 residents per square mile; and
(ii) fewer than 211 actively practicing physi-
cians (not counting physicians employed by the
United States) per 100,000 residents.
SEC. 758. REIMBURSEMENT FOR CERTAIN TRAVEL EX-
PENSES.
(a) IN GENERAL.—Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074h
(as added by section 706) the following new section:
‘‘§ 1074i. Reimbursement for certain travel expenses
‘‘In any case in which a covered beneficiary is re-
ferred by a primary care physician to a specialty care pro-
vider who provides services more than 100 miles from the
location in which the primary care provider provides serv-
ices to the covered beneficiary, the Secretary shall provide
reimbursement for reasonable travel expenses for the cov-
ered beneficiary.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1074g the following new
item:
‘‘1074i. Reimbursement for certain travel expenses.’’.
487
SEC. 759. REDUCTION OF CAP ON PAYMENTS.
Section 1086(b)(4) of title 10, United States Code,
is amended by striking ‘‘$7,500’’ and inserting ‘‘$3,000’’.
SEC. 760. TRAINING IN HEALTH CARE MANAGEMENT AND
ADMINISTRATION.
(a) EXPANSION OF PROGRAM.—Section 715(a) of the
National Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat 375; 10 U.S.C. 1073
note) is amended—
(1) in the matter preceding paragraph (1), by
striking ‘‘Not later than six months after the date
of the enactment of this Act, the’’ and inserting
‘‘The’’;
(2) in paragraph (1)—
(A) by inserting ‘‘, deputy commander, and
managed care coordinator’’ after ‘‘commander’’;
and
(B) by inserting ‘‘, and any other person,’’
after ‘‘Defense’’; and
(3) by amending subsection (b) to read as fol-
lows:
‘‘(b) LIMITATION ON ASSIGNMENT UNTIL COMPLE-
TION OF TRAINING.—No person may be assigned as the
commander, deputy commander, or managed care coordi-
nator of a military medical treatment facility or as a
TRICARE lead agent or senior member of the staff of
488
a TRICARE lead agent office until the Secretary of the
military department concerned submits a certification to
the Secretary of Defense that such person has completed
the training described in subsection (a).’’.
(b) REPORT REQUIREMENT.—(1) Not later than 18
months after the date of the enactment of this Act, the
Secretary of Defense shall submit to Congress a report
on progress in meeting the requirements of section 715
of such Act (as amended by subsection (a)) by imple-
menting a professional educational program to provide ap-
propriate training in health care management and admin-
istration.
(2) The report required by paragraph (1) shall in-
clude the following:
(A) A survey of professional civilian certifi-
cations and credentials which demonstrate achieve-
ment of the requirements of such section.
(B) A description of the continuing education
activities required to obtain initial certification and
periodic required recertification.
(C) A description of the prominence of such
credentials or certifications among senior civilian
health care executives.
(c) APPLICABILITY.—The amendments made by sub-
section (a) to section 715 of such Act—
489
(1) shall apply to a deputy commander, a man-
aged care coordinator of a military medical treat-
ment facility, or a lead agent for coordinating the
delivery of health care by military and civilian pro-
viders under the TRICARE program, who is as-
signed to such position on or after the date that is
one year after the date of the enactment of this Act;
and
(2) may apply, in the discretion of the Sec-
retary of Defense, to a deputy commander, a man-
aged care coordinator of such a facility, or a lead
agent for coordinating the delivery of such health
care, who is assigned to such position before the
date that is one year after the date of the enactment
of this Act.
SEC. 761. STUDIES ON FEASIBILITY OF SHARING BIO-
MEDICAL RESEARCH FACILITY.
(a) STUDIES REQUIRED.—(1) The Secretary of the
Army shall conduct a study on the feasibility of the Tripler
Army Medical Center, Hawaii, sharing a biomedical re-
search facility with the Department of Veterans Affairs
and the School of Medicine at the University of Hawaii
for the purpose of making more efficient use of funding
for biomedical research.
490
(2) The Secretary of the Air Force shall conduct a
study on the feasibility of the Little Rock Medical Facility,
Arkansas, sharing a biomedical research facility with the
Department of Veterans Affairs and the School of Medi-
cine at the University of Arkansas for the purpose of mak-
ing more efficient use of funding for biomedical research.
(3) The biomedical research facilities described in
paragraphs (1) and (2) would include a clinical research
center and facilities for educational, academic, and labora-
tory research.
(b) REPORTS.—Not later than March 1, 2001—
(1) the Secretary of the Army shall submit to
the Committees on Armed Services of the House of
Representatives and the Senate a report on the
study conducted under subsection (a)(1); and
(2) the Secretary of the Air Force shall submit
to such committees a report on the study conducted
under subsection (a)(2).
SEC. 762. STUDY ON COMPARABILITY OF COVERAGE FOR
PHYSICAL, 
SPEECH, 
AND 
OCCUPATIONAL
THERAPIES.
(a) STUDY REQUIRED.—The Secretary of Defense
shall conduct a study comparing coverage and reimburse-
ment for covered beneficiaries under chapter 55 of title
10, United States Code, for physical, speech, and occupa-
491
tional therapies under the TRICARE program and the Ci-
vilian Health and Medical Program of the Uniformed
Services to coverage and reimbursement for such therapies
by insurers under Medicare and the Federal Employees
Health Benefits Program. The study shall examine the fol-
lowing:
(1) Types of services covered.
(2) Whether prior authorization is required to
receive such services.
(3) Reimbursement limits for services covered.
(4) Whether services are covered on both an in-
patient and outpatient basis.
(b) REPORT.—Not later than March 31, 2001, the
Secretary shall submit a report on the findings of the
study conducted under this section to the Committees on
Armed Services of the Senate and the House of Represent-
atives.
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS
Subtitle A—Amendments to General Contracting Authorities,
Procedures, and Limitations
Sec. 801. Department of Defense acquisition pilot programs.
Sec. 802. Multiyear services contracts.
Sec. 803. Clarification and extension of authority to carry out certain prototype
projects.
Sec. 804. Clarification of authority of Comptroller General to review records of
participants in certain prototype projects.
492
Sec. 805. Extension of time period of limitation on procurement of ball bear-
ings and roller bearings.
Sec. 806. Reporting requirements relating to multiyear contracts.
Sec. 807. Eligibility of small business concerns owned and controlled by women
for assistance under the mentor-protege program.
Sec. 808. Qualifications required for employment and assignment in contracting
positions.
Sec. 809. Revision of authority for solutions-based contracting pilot program.
Sec. 810. Procurement notice of contracting opportunities through electronic
means.
Subtitle B—Information Technology
Sec. 811. Acquisition and management of information technology.
Sec. 812. Tracking and management of information technology purchases.
Sec. 813. Appropriate use of requirements regarding experience and education
of contractor personnel in the procurement of information tech-
nology services.
Sec. 814. Navy-Marine Corps Intranet.
Sec. 815. Sense of Congress regarding information technology systems for
Guard and Reserve components.
Subtitle C—Other Acquisition-Related Matters
Sec. 821. Improvements in procurements of services.
Sec. 822. Financial analysis of use of dual rates for quantifying overhead costs
at Army ammunition plants.
Sec. 823. Repeal of prohibition on use of Department of Defense funds for pro-
curement of nuclear-capable shipyard crane from a foreign
source.
Sec. 824. Extension of waiver period for live-fire survivability testing for MH–
47E and MH–60K helicopter modification programs.
Sec. 825. Compliance with existing law regarding purchases of equipment and
products.
Sec. 826. Requirement to disregard certain agreements in awarding contracts
for the purchase of firearms or ammunition.
Subtitle D—Studies and Reports
Sec. 831. Study on impact of foreign sourcing of systems on long-term military
readiness and related industrial infrastructure.
Sec. 832. Study of policies and procedures for transfer of commercial activities.
Sec. 833. Study and report on practice of contract bundling in military con-
struction contracts.
Sec. 834. Requirement to conduct study on contract bundling.
493
Subtitle A—Amendments to Gen-
eral 
Contracting 
Authorities,
Procedures, and Limitations
SEC. 801. DEPARTMENT OF DEFENSE ACQUISITION PILOT
PROGRAMS.
(a) EXTENSION OF AUTHORITY.—Section 5064(d)(2)
of the Federal Acquisition Streamlining Act of 1994 (Pub-
lic Law 103–355; 108 Stat. 3361; 10 U.S.C. 2430 note)
is amended by striking ‘‘45 days after the date of the en-
actment of this Act and ends on September 30, 1998’’
and inserting ‘‘on October 13, 1994, and ends on October
1, 2007’’.
(b) EXPANSION
OF
JDAM PROGRAM.—Section
5064(a)(2) of such Act is amended by striking ‘‘1000-
pound and 2000-pound bombs’’ and inserting ‘‘500-pound,
1000-pound, and 2000-pound bombs’’.
(c) REPORT REQUIRED.—(1) Not later than January
1, 2001, the Secretary of Defense shall submit to the
Committees on Armed Services of the House of Represent-
atives and the Senate a report on the acquisition pilot pro-
grams of the Department of Defense. The report shall de-
scribe, for each acquisition program identified in section
5064(a) of the Federal Acquisition Streamlining Act of
1994, the following:
494
(A) Each quantitative measure and goal estab-
lished for each item described in paragraph (2),
which of such goals have been achieved, and the ex-
tent to which the use of the authorities in section
809 of the National Defense Authorization Act for
Fiscal Year 1991 (Public Law 101–510; 10 U.S.C.
2430 note) and section 5064 of the Federal Acquisi-
tion Streamlining Act of 1994 was a factor in
achieving each of such goals.
(B) Recommended revisions to statutes or the
Federal Acquisition Regulation as a result of partici-
pation in the pilot program.
(C) Any innovative business practices developed
as a result of participation in the pilot program,
whether such business practices could be applied to
other acquisition programs, and any impediments to
application of such practices to other programs.
(D) Technological changes to the program, and
to what extent those changes affected the items in
paragraph (2).
(E) Any other information determined appro-
priate by the Secretary.
(2) The items under this paragraph are, with respect
to defense acquisition programs, the following:
(A) The acquisition management costs.
495
(B) The unit cost of the items procured.
(C) The acquisition cycle.
(D) The total cost of carrying out the contract.
(E) Staffing necessary to carry out the pro-
gram.
SEC. 802. MULTIYEAR SERVICES CONTRACTS.
(a) IN GENERAL.—(1) Chapter 137 of title 10,
United States Code, is amended by inserting after section
2306b the following:
‘‘§ 2306c. Multiyear contracts: acquisition of services
‘‘(a) AUTHORITY.—Subject to subsections (d) and
(e), the head of an agency may enter into contracts for
periods of not more than five years for services described
in subsection (b), and for items of supply related to such
services, for which funds would otherwise be available for
obligation only within the fiscal year for which appro-
priated whenever the head of the agency finds that—
‘‘(1) there will be a continuing requirement for
the services consonant with current plans for the
proposed contract period;
‘‘(2) the furnishing of such services will require
a substantial initial investment in plant or equip-
ment, or the incurrence of substantial contingent li-
abilities for the assembly, training, or transportation
of a specialized work force; and
496
‘‘(3) the use of such a contract will promote the
best interests of the United States by encouraging
effective competition and promoting economies in op-
eration.
‘‘(b) COVERED SERVICES.—The authority under sub-
section (a) applies to the following types of services:
‘‘(1) Operation, maintenance, and support of
facilities and installations.
‘‘(2) Maintenance or modification of aircraft,
ships, vehicles, and other highly complex military
equipment.
‘‘(3) Specialized training necessitating high
quality instructor skills (for example, pilot and air
crew members; foreign language training).
‘‘(4) Base services (for example, ground mainte-
nance; in-plane refueling; bus transportation; refuse
collection and disposal).
‘‘(c) APPLICABLE PRINCIPLES.—In entering into
multiyear contracts for services under the authority of this
section, the head of the agency shall be guided by the fol-
lowing principles:
‘‘(1) The portion of the cost of any plant or
equipment amortized as a cost of contract perform-
ance should not exceed the ratio between the period
of contract performance and the anticipated useful
497
commercial life of such plant or equipment. Useful
commercial life, for this purpose, means the com-
mercial utility of the facilities rather than the phys-
ical life thereof, with due consideration given to such
factors as location of facilities, specialized nature
thereof, and obsolescence.
‘‘(2) Consideration shall be given to the desir-
ability of obtaining an option to renew the contract
for a reasonable period not to exceed three years, at
prices not to include charges for plant, equipment
and other nonrecurring costs, already amortized.
‘‘(3) Consideration shall be given to the desir-
ability of reserving in the agency the right, upon
payment of the unamortized portion of the cost of
the plant or equipment, to take title thereto under
appropriate circumstances.
‘‘(d) RESTRICTIONS APPLICABLE GENERALLY.—(1)
The head of an agency may not initiate under this section
a contract for services that includes an unfunded contin-
gent liability in excess of $20,000,000 unless the commit-
tees of Congress named in paragraph (5) are notified of
the proposed contract at least 30 days in advance of the
award of the proposed contract.
‘‘(2) The head of an agency may not initiate a
multiyear contract for services under this section if the
499
‘‘(e) CANCELLATION OR TERMINATION FOR INSUFFI-
CIENT FUNDING AFTER FIRST YEAR.—In the event that
funds are not made available for the continuation of a
multiyear contract for services into a subsequent fiscal
year, the contract shall be canceled or terminated, and the
costs of cancellation or termination may be paid from—
‘‘(1) appropriations originally available for the
performance of the contract concerned;
‘‘(2) appropriations currently available for pro-
curement of the type of services concerned, and not
otherwise obligated; or
‘‘(3) funds appropriated for those payments.
‘‘(f) MULTIYEAR CONTRACT DEFINED.—For the
purposes of this section, a multiyear contract is a contract
for the purchase of services for more than one, but not
more than five, program years. Such a contract may pro-
vide that performance under the contract during the sec-
ond and subsequent years of the contract is contingent
upon the appropriation of funds and (if it does so provide)
may provide for a cancellation payment to be made to the
contractor if such appropriations are not made.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2306b the following:
‘‘2306c. Multiyear contracts: acquisition of services.’’.
500
(b) REFERENCE TO RELOCATED AUTHORITY.—Sub-
section (g) of section 2306 of such title is amended to read
as follows:
‘‘(g) Multiyear contracting authority for the acquisi-
tion of services is provided in section 2306c of this title.’’.
(c) CONFORMING AMENDMENT.—Section 2306b(k)
of title 10, United States Code, is amended by striking
‘‘or services’’.
(d) APPLICABILITY.—Section 2306c of title 10,
United States Code (as added by subsection (a)), shall
apply with respect to contracts for which solicitations of
offers are issued after the date of the enactment of this
Act.
SEC. 803. CLARIFICATION AND EXTENSION OF AUTHORITY
TO 
CARRY 
OUT 
CERTAIN 
PROTOTYPE
PROJECTS.
(a) AMENDMENTS TO AUTHORITY.—Section 845 of
the National Defense Authorization Act for Fiscal Year
1994 (Public Law 103–160; 10 U.S.C. 2371 note) is
amended—
(1) by redesignating subsection (d) as sub-
section (f); and
(2) by inserting after subsection (c) the fol-
lowing new subsections:
501
‘‘(d) APPROPRIATE USE OF AUTHORITY.—(1) The
Secretary of Defense shall ensure that no official of an
agency enters into a transaction (other than a contract,
grant, or cooperative agreement) for a prototype project
under the authority of this section unless—
‘‘(A) there is at least one nontraditional defense
contractor participating to a significant extent in the
prototype project; or
‘‘(B) no nontraditional defense contractor is
participating to a significant extent in the prototype
project, but at least one of the following cir-
cumstances exists:
‘‘(i) At least one third of the total cost of
the prototype project is to be paid out of funds
provided by parties to the transaction other
than the Federal Government.
‘‘(ii) The senior procurement executive for
the agency (as designated for the purposes of
section 16(3) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 414(3)) determines
in writing that exceptional circumstances justify
the use of a transaction that provides for inno-
vative business arrangements or structures that
would not be feasible or appropriate under a
contract.
502
‘‘(2)(A) Except as provided in subparagraph (B), the
amounts counted for the purposes of this subsection as
being provided, or to be provided, by a party to a trans-
action with respect to a prototype project that is entered
into under this section other than the Federal Government
do not include costs that were incurred before the date
on which the transaction becomes effective.
‘‘(B) Costs that were incurred for a prototype project
by a party after the beginning of negotiations resulting
in a transaction (other than a contract, grant, or coopera-
tive agreement) with respect to the project before the date
on which the transaction becomes effective may be counted
for purposes of this subsection as being provided, or to
be provided, by the party to the transaction if and to the
extent that the official responsible for entering into the
transaction determines in writing that—
‘‘(i) the party incurred the costs in anticipation
of entering into the transaction; and
‘‘(ii) it was appropriate for the party to incur
the costs before the transaction became effective in
order to ensure the successful implementation of the
transaction.
‘‘(e) NONTRADITIONAL DEFENSE CONTRACTOR DE-
FINED.—In this section, the term ‘nontraditional defense
contractor’ means an entity that has not, for a period of
503
at least one year prior to the date that a transaction (other
than a contract, grant, or cooperative agreement) for a
prototype project under the authority of this section is en-
tered into, entered into or performed with respect to—
‘‘(1) any contract that is subject to full cov-
erage under the cost accounting standards pre-
scribed pursuant to section 26 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 422) and
the regulations implementing such section; or
‘‘(2) any other contract in excess of $500,000
to carry out prototype projects or to perform basic,
applied, or advanced research projects for a Federal
agency, that is subject to the Federal Acquisition
Regulation.’’.
(b) EXTENSION OF AUTHORITY.—Subsection (f) of
such section, as redesignated by subsection (a)(1), is
amended by striking ‘‘September 30, 2001’’ and inserting
‘‘September 30, 2004’’.
SEC. 
804. 
CLARIFICATION 
OF 
AUTHORITY 
OF 
COMP-
TROLLER GENERAL TO REVIEW RECORDS OF
PARTICIPANTS 
IN 
CERTAIN 
PROTOTYPE
PROJECTS.
(a) COMPTROLLER
GENERAL
REVIEW.—Section
845(c) of the National Defense Authorization Act for Fis-
cal Year 1994 (10 U.S.C. 2371 note) is amended—
504
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
‘‘(3)(A) The right provided to the Comptroller Gen-
eral in a clause of an agreement under paragraph (1) is
limited as provided in subparagraph (B) in the case of
a party to the agreement, an entity that participates in
the performance of the agreement, or a subordinate ele-
ment of that party or entity if the only agreements or
other transactions that the party, entity, or subordinate
element entered into with Government entities in the year
prior to the date of that agreement are cooperative agree-
ments or transactions that were entered into under this
section or section 2371 of title 10, United States Code.
‘‘(B) The only records of a party, other entity, or sub-
ordinate element referred to in subparagraph (A) that the
Comptroller General may examine in the exercise of the
right referred to in that subparagraph are records of the
same type as the records that the Government has had
the right to examine under the audit access clauses of the
previous agreements or transactions referred to in such
subparagraph that were entered into by that particular
party, entity, or subordinate element.’’.
505
SEC. 805. EXTENSION OF TIME PERIOD OF LIMITATION ON
PROCUREMENT OF BALL BEARINGS AND
ROLLER BEARINGS.
Section 2534(c)(3) of title 10, United States Code,
is amended by striking ‘‘October 1, 2000’’ and inserting
‘‘October 1, 2005’’.
SEC. 
806. 
REPORTING 
REQUIREMENTS 
RELATING 
TO
MULTIYEAR CONTRACTS.
Section 2306b(l) of title 10, United States Code, is
amended—
(1) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘The head of an agency’’ and
all that follows through ‘‘following information’’
and inserting ‘‘Not later than the date of the
submission of the President’s budget request
under section 1105 of title 31, the Secretary of
Defense shall submit a report to the congres-
sional defense committees each year, providing
the following information with respect to each
multiyear contract (and each extension of an
existing multiyear contract) entered into, or
planned to be entered into, by the head of an
agency during the current or preceding year’’;
and
506
(B) in subparagraph (B), by striking ‘‘in
effect immediately before the contract (or con-
tract extension) is entered into’’ and inserting
‘‘in effect at the time the report is submitted’’;
(2) by redesignating paragraphs (5) through
(9) as paragraphs (6) through (10), respectively;
and
(3) by inserting after paragraph (4) the fol-
lowing new paragraph (5):
‘‘(5) The head of an agency may not enter into a
multiyear contract (or extend an existing multiyear con-
tract), the value of which would exceed $500,000,000
(when entered into or when extended, as the case may be),
until the Secretary of Defense submits to the congres-
sional defense committees a report containing the informa-
tion described in paragraph (4) with respect to the con-
tract (or contract extension).’’.
SEC. 807. ELIGIBILITY OF SMALL BUSINESS CONCERNS
OWNED AND CONTROLLED BY WOMEN FOR
ASSISTANCE UNDER THE MENTOR-PROTEGE
PROGRAM.
Section 831(m)(2) of the National Defense Author-
ization Act for Fiscal Year 1991 (Public Law 101–510;
10 U.S.C. 2302 note) is amended—
507
(1) by striking ‘‘or’’ at the end of subparagraph
(C);
(2) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(E) a small business concern owned and
controlled by women, as defined in section
8(d)(3)(D) of the Small Business Act (15
U.S.C. 637(d)(3)(D)).’’.
SEC. 808. QUALIFICATIONS REQUIRED FOR EMPLOYMENT
AND ASSIGNMENT IN CONTRACTING POSI-
TIONS.
(a) APPLICABILITY OF REQUIREMENTS TO MEMBERS
OF
THE ARMED FORCES.—Section 1724 of title 10,
United States Code, is amended in the first sentence of
subsection (d)—
(1) by striking ‘‘employee of’’ and inserting
‘‘employee or member of’’; and
(2) by striking ‘‘employee possesses’’ and in-
serting ‘‘employee or member possesses’’.
(b) MANDATORY ACADEMIC QUALIFICATIONS.—(1)
Subsection (a)(3) of such section is amended—
(A) by inserting ‘‘and’’ before ‘‘(B)’’; and
(B) by striking ‘‘, or (C)’’ and all that follows
through ‘‘listed in subparagraph (B)’’.
508
(2) Subsection (b) of such section is amended to read
as follows:
‘‘(b) GS–1102 SERIES POSITIONS
AND SIMILAR
MILITARY POSITIONS.—The Secretary of Defense shall re-
quire that a person meet the requirements set forth in
paragraph (3) of subsection (a), but not the other require-
ments set forth in that subsection, in order to qualify to
serve in a position in the Department of Defense in—
‘‘(1) the GS–1102 occupational series; or
‘‘(2) a similar occupational specialty if the posi-
tion is to be filled by a member of the armed
forces.’’.
(c) EXCEPTION.—Subsection (c) of such section is
amended to read as follows:
‘‘(c) EXCEPTION.—The requirements imposed under
subsection (a) or (b) shall not apply to a person for the
purpose of qualifying to serve in a position in which the
person is serving on September 30, 2000.’’.
(d) DELETION
OF
UNNECESSARY
CROSS
REF-
ERENCES.—Subsection (a) of such section is amended by
striking ‘‘(except as provided in subsections (c) and (d))’’
in the matter preceding paragraph (1).
(e) EFFECTIVE DATE.—This section, and the amend-
ments made by this section, shall take effect on October
509
1, 2000, and shall apply to appointments and assignments
to contracting positions made on or after that date.
SEC. 809. REVISION OF AUTHORITY FOR SOLUTIONS-BASED
CONTRACTING PILOT PROGRAM.
(a) PILOT PROJECTS UNDER THE PROGRAM.—Sec-
tion 5312 of the Clinger-Cohen Act of 1996 (40 U.S.C.
1492) is amended—
(1) in subsection (a), by striking ‘‘subsection
(d)(2)’’ and inserting ‘‘subsection (d)’’; and
(2) by striking subsection (d) and inserting the
following:
‘‘(d) PILOT PROGRAM PROJECTS.—The Adminis-
trator shall authorize to be carried out under the pilot
program—
‘‘(1) not more than 10 projects, each of which
has an estimated cost of at least $25,000,000 and
not more than $100,000,000; and
‘‘(2) not more than 10 projects for small busi-
ness concerns, each of which has an estimated cost
of at least $1,000,000 and not more than
$5,000,000.’’.
(b) ELIMINATION OF REQUIREMENT FOR FEDERAL
FUNDING OF PROGRAM DEFINITION PHASE.—Subsection
(c)(9)(B) of such section is amended by striking ‘‘program
definition phase (funded, in the case of the source ulti-
510
mately awarded the contract, by the Federal Govern-
ment)—’’ and inserting ‘‘program definition phase—’’.
SEC. 810. PROCUREMENT NOTICE OF CONTRACTING OP-
PORTUNITIES 
THROUGH 
ELECTRONIC
MEANS.
(a) PUBLICATION
BY ELECTRONIC MEANS.—Sub-
section (a) of section 18 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 416) is amended—
(1) in paragraph (1)(A), by striking ‘‘furnish
for publication by the Secretary of Commerce’’ and
inserting ‘‘publish’’;
(2) by striking paragraph (2) and inserting the
following:
‘‘(2)(A) A notice of solicitation required to be pub-
lished under paragraph (1) may be published—
‘‘(i) by electronic means that meets the require-
ments for accessibility under paragraph (7); or
‘‘(ii) by the Secretary of Commerce in the Com-
merce Business Daily.
‘‘(B) The Secretary of Commerce shall promptly pub-
lish in the Commerce Business Daily each notice or an-
nouncement received under this subsection for publication
by that means.’’; and
(3) by adding at the end the following:
511
‘‘(7) A publication of a notice of solicitation by elec-
tronic means meets the requirements for accessibility
under this paragraph if the notice is electronically acces-
sible in a form that allows convenient and universal user
access through the single Government-wide point of entry
designated in the Federal Acquisition Regulation.’’.
(b) WAITING PERIOD FOR ISSUANCE OF SOLICITA-
TION.—Paragraph (3) of such subsection is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘‘furnish a notice to the Secretary of
Commerce’’ and inserting ‘‘publish a notice of solici-
tation’’; and
(2) in subparagraph (A), by striking ‘‘by the
Secretary of Commerce’’.
(c) CONFORMING AMENDMENTS TO SMALL BUSI-
NESS ACT.—Subsection (e) of section 8 of the Small Busi-
ness Act (15 U.S.C. 637) is amended—
(1) in paragraph (1)(A), by striking ‘‘furnish
for publication by the Secretary of Commerce’’ and
inserting ‘‘publish’’;
(2) by striking paragraph (2) and inserting the
following:
‘‘(2)(A) A notice of solicitation required to be pub-
lished under paragraph (1) may be published—
512
‘‘(i) by electronic means that meet the accessi-
bility requirements under section 18(a)(7) of the Of-
fice of Federal Procurement Policy Act (41 U.S.C.
416(a)(7)); or
‘‘(ii) by the Secretary of Commerce in the Com-
merce Business Daily.
‘‘(B) The Secretary of Commerce shall promptly pub-
lish in the Commerce Business Daily each notice or an-
nouncement received under this subsection for publication
by that means.’’; and
(3) in paragraph (3)—
(A) in the matter preceding subparagraph
(A), by striking ‘‘furnish a notice to the Sec-
retary of Commerce’’ and inserting ‘‘publish a
notice of solicitation’’; and
(B) in subparagraph (A), by striking ‘‘by
the Secretary of Commerce’’.
(d) PERIODIC REPORTS
ON IMPLEMENTATION
OF
ELECTRONIC COMMERCE IN FEDERAL PROCUREMENT.—
Section 30(e) of the Office of Federal Procurement Policy
Act (41 U.S.C. 426(e)) is amended—
(1) in the first sentence, by striking ‘‘Not later
than March 1, 1998, and every year afterward
through 2003’’ and inserting ‘‘Not later than March
1 of each even-numbered year through 2004’’; and
513
(2) in paragraph (4)—
(A) by striking ‘‘Beginning with the report
submitted on March 1, 1999, an’’ and inserting
‘‘An’’; and
(B) by striking ‘‘calendar year’’ and insert-
ing ‘‘two fiscal years’’.
(e) EFFECTIVE DATE; APPLICABILITY.—The amend-
ments made by this section shall take effect on October
1, 2000. The amendments made by subsections (a), (b),
and (c) shall apply with respect to solicitations issued on
or after that date.
Subtitle B—Information
Technology
SEC. 811. ACQUISITION AND MANAGEMENT OF INFORMA-
TION TECHNOLOGY.
(a) RESPONSIBILITY OF DOD CHIEF INFORMATION
OFFICER RELATING TO MISSION CRITICAL AND MISSION
ESSENTIAL INFORMATION TECHNOLOGY SYSTEMS.—Sec-
tion 2223(a) of title 10, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and
(3) by adding at the end the following:
514
‘‘(5) maintain a consolidated inventory of De-
partment of Defense mission critical and mission es-
sential information systems, identify interfaces be-
tween those systems and other information systems,
and develop and maintain contingency plans for re-
sponding to a disruption in the operation of any of
those information systems.’’.
(b) MINIMUM PLANNING REQUIREMENTS FOR THE
ACQUISITION
OF
INFORMATION
TECHNOLOGY
SYS-
TEMS.—(1) Not later than 60 days after the date of the
enactment of this Act, Department of Defense Directive
5000.1 shall be revised to establish minimum planning re-
quirements for the acquisition of information technology
systems.
(2) The revised directive required by (1) shall—
(A) include definitions of the terms ‘‘mission
critical information system’’ and ‘‘mission essential
information system’’;
(B) prohibit the award of any contract for the
acquisition of a mission critical or mission essential
information technology system until—
(i) the system has been registered with the
Chief Information Officer of the Department of
Defense;
515
(ii) the Chief Information Officer has re-
ceived all information on the system that is re-
quired under the directive to be provided to
that official; and
(iii) the Chief Information Officer has de-
termined that there is in place for the system
an appropriate information assurance strategy;
and
(C) require that, in the case of each system reg-
istered pursuant to subparagraph (B)(i), the infor-
mation required under subparagraph (B)(ii) to be
submitted as part of the registration shall be up-
dated on not less than a quarterly basis.
(c) MILESTONE APPROVAL FOR MAJOR AUTOMATED
INFORMATION SYSTEMS.—The revised directive required
by subsection (b) shall prohibit Milestone I approval, Mile-
stone II approval, or Milestone III approval (or the equiva-
lent) of a major automated information system within the
Department of Defense until the Chief Information Offi-
cer has determined that—
(1) the system is being developed in accordance
with the requirements of division E of the Clinger-
Cohen Act of 1996 (40 U.S.C. 1401 et seq.);
(2) appropriate actions have been taken with
respect to the system in the areas of business proc-
516
ess reengineering, analysis of alternatives, economic
analysis, and performance measures; and
(3) the system has been registered as described
in subsection (b)(2)(B).
(d) NOTICE OF REDESIGNATION OF SYSTEMS.—(1)
Whenever during fiscal year 2001, 2002, or 2003 the
Chief Information Officer designates a system previously
designated as a major automated information system to
be in a designation category other than a major automated
information system, the Chief Information Officer shall
notify the congressional defense committees of that des-
ignation. The notice shall be provided not later than 30
days after the date of that designation. Any such notice
shall include the rationale for the decision to make the
designation and a description of the program management
oversight that will be implemented for the system so des-
ignated.
(2) Not later than 60 days after the date of the enact-
ment of this Act, the Chief Information Officer shall sub-
mit to the congressional defense committees a report
specifying each information system of the Department of
Defense previously designated as a major automated infor-
mation system that is currently designated in a designa-
tion category other than a major automated information
system including designation as a ‘‘special interest major
517
technology initiative’’. The report shall include for each
such system the information specified in the third sentence
of paragraph (1).
(e) ANNUAL IMPLEMENTATION REPORT.—(1) The
Secretary of Defense shall submit to the congressional de-
fense committees, not later than April 1 of each of fiscal
years 2001, 2002, and 2003, a report on the implementa-
tion of the requirements of this section during the pre-
ceding fiscal year.
(2) The report for a fiscal year under paragraph (1)
shall include, at a minimum, for each major automated
information system that was approved during such pre-
ceding fiscal year under Department of Defense Directive
5000.1 (as revised pursuant to subsection (b)), the fol-
lowing:
(A) The funding baseline.
(B) The milestone schedule.
(C) The actions that have been taken to ensure
compliance with the requirements of this section and
the directive.
(3) The first report shall include, in addition to the
information required by paragraph (2), an explanation of
the manner in which the responsible officials within the
Department of Defense have addressed, or intend to ad-
dress, the following acquisition issues for each major auto-
518
mated information system planned to be acquired after
that fiscal year:
(A) Requirements definition.
(B) Presentation of a business case analysis, in-
cluding an analysis of alternatives and a calculation
of return on investment.
(C) Performance measurement.
(D) Test and evaluation.
(E) Interoperability.
(F) Cost, schedule, and performance baselines.
(G) Information assurance.
(H) Incremental fielding and implementation.
(I) Risk mitigation.
(J) The role of integrated product teams.
(K) Issues arising from implementation of the
Command, Control, Communications, Computers,
Intelligence, Surveillance, and Reconnaissance Plan
required by Department of Defense Directive 5000.1
and Chairman of the Joint Chiefs of Staff Instruc-
tion 3170.01.
(L) Oversight, including the Chief Information
Officer’s oversight of decision reviews.
(f) DEFINITIONS.—In this section:
(1) The term ‘‘Chief Information Officer’’
means the senior official of the Department of De-
519
fense designated by the Secretary of Defense pursu-
ant to section 3506 of title 44, United States Code.
(2) The term ‘‘information technology system’’
has the meaning given the term ‘‘information tech-
nology’’ in section 5002 of the Clinger-Cohen Act of
1996 (40 U.S.C. 1401).
(3) The term ‘‘major automated information
system’’ has the meaning given that term in Depart-
ment of Defense Directive 5000.1.
SEC. 812. TRACKING AND MANAGEMENT OF INFORMATION
TECHNOLOGY PURCHASES.
(a) IN GENERAL.—(1) Chapter 131 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 2225. Information technology purchases: tracking
and management
‘‘(a) COLLECTION OF DATA REQUIRED.—To improve
tracking and management of information technology prod-
ucts and services by the Department of Defense, the Sec-
retary of Defense shall provide for the collection of the
data described in subsection (b) for each purchase of such
products or services made by a military department or De-
fense Agency in excess of the simplified acquisition thresh-
old, regardless of whether such a purchase is made in the
form of a contract, task order, delivery order, military
520
interdepartmental purchase request, or any other form of
interagency agreement.
‘‘(b) DATA TO BE COLLECTED.—The data required
to be collected under subsection (a) includes the following:
‘‘(1) The products or services purchased.
‘‘(2) Whether the products or services are cat-
egorized as commercially available off-the-shelf
items, other commercial items, nondevelopmental
items other than commercial items, other non-
commercial items, or services.
‘‘(3) The total dollar amount of the purchase.
‘‘(4) The form of contracting action used to
make the purchase.
‘‘(5) In the case of a purchase made through an
agency other than the Department of Defense—
‘‘(A) the agency through which the pur-
chase is made; and
‘‘(B) the reasons for making the purchase
through that agency.
‘‘(6) The type of pricing used to make the pur-
chase (whether fixed price or another type of pric-
ing).
‘‘(7) The extent of competition provided in
making the purchase.
521
‘‘(8) A statement regarding whether the pur-
chase was made from—
‘‘(A) a small business concern;
‘‘(B) a small business concern owned and
controlled by socially and economically dis-
advantaged individuals; or
‘‘(C) a small business concern owned and
controlled by women.
‘‘(9) A statement regarding whether the pur-
chase was made in compliance with the planning re-
quirements under sections 5122 and 5123 of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1422, 1423).
‘‘(c) RESPONSIBILITY TO ENSURE FAIRNESS
OF
CERTAIN PRICES.—The head of each contracting activity
in the Department of Defense shall have responsibility for
ensuring the fairness and reasonableness of unit prices
paid by the contracting activity for information technology
products and services that are frequently purchased com-
mercially available off-the-shelf items.
‘‘(d) LIMITATION
ON CERTAIN PURCHASES.—No
purchase of information technology products or services
in excess of the simplified acquisition threshold shall be
made for the Department of Defense from a Federal agen-
cy outside the Department of Defense unless—
522
‘‘(1) the purchase data is collected in accord-
ance with subsection (a); or
‘‘(2)(A) in the case of a purchase by a Defense
Agency, the purchase is approved by the Under Sec-
retary of Defense for Acquisition, Technology, and
Logistics; or
‘‘(B) in the case of a purchase by a military de-
partment, the purchase is approved by the senior
procurement executive of the military department.
‘‘(e) ANNUAL REPORT.—Not later than March 15 of
each year, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the
House of Representatives a report containing a summary
of the data collected in accordance with subsection (a).
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘senior procurement executive’,
with respect to a military department, means the of-
ficial designated as the senior procurement executive
for the military department for the purposes of sec-
tion 16(3) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 414(3)).
‘‘(2) The term ‘simplified acquisition threshold’
has the meaning given the term in section 4(11) of
the Office of Federal Procurement Policy Act (41
U.S.C. 403(11)).
523
‘‘(3) The term ‘small business concern’ means
a business concern that meets the applicable size
standards prescribed pursuant to section 3(a) of the
Small Business Act (15 U.S.C. 632(a)).
‘‘(4) The term ‘small business concern owned
and controlled by socially and economically disadvan-
taged individuals’ has the meaning given that term
in section 8(d)(3)(C) of the Small Business Act (15
U.S.C. 637(d)(3)(C)).
‘‘(5) The term ‘small business concern owned
and controlled by women’ has the meaning given
that term in section 8(d)(3)(D) of the Small Busi-
ness Act (15 U.S.C. 637(d)(3)(D)).’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following:
‘‘2225. Information technology purchases: tracking and management.’’.
(b) TIME FOR IMPLEMENTATION; APPLICABILITY.—
(1) The Secretary of Defense shall collect data as required
under section 2225 of title 10, United States Code (as
added by subsection (a)) for all contractual actions cov-
ered by such section entered into on or after the date that
is one year after the date of the enactment of this Act.
(2) Subsection (d) of such section shall apply with
respect to purchases described in that subsection for which
solicitations of offers are issued on or after the date that
is one year after the date of the enactment of this Act.
524
(c) GAO REPORT.—Not later than 15 months after
the date of the enactment of this Act, the Comptroller
General shall submit to the congressional defense commit-
tees a report on the collection of data under such section
2225. The report shall include the Comptroller General’s
assessment of the extent to which the collection of data
meets the requirements of that section.
SEC. 813. APPROPRIATE USE OF REQUIREMENTS REGARD-
ING EXPERIENCE AND EDUCATION OF CON-
TRACTOR PERSONNEL IN THE PROCURE-
MENT OF INFORMATION TECHNOLOGY SERV-
ICES.
(a) AMENDMENT
OF
THE FEDERAL ACQUISITION
REGULATION.—Not later than 180 days after the date of
the enactment of this Act, the Federal Acquisition Regula-
tion issued in accordance with sections 6 and 25 of the
Office of Federal Procurement Policy Act (41 U.S.C. 405
and 421) shall be amended to address the use, in the pro-
curement of information technology services, of require-
ments regarding the experience and education of con-
tractor personnel.
(b) CONTENT
OF AMENDMENT.—The amendment
issued pursuant to subsection (a) shall, at a minimum,
provide that solicitations for the procurement of informa-
tion technology services shall not set forth any minimum
525
experience or educational requirement for proposed con-
tractor personnel in order for a bidder to be eligible for
award of a contract unless—
(1) the contracting officer first determines that
the needs of the executive agency cannot be met
without any such requirement; or
(2) the needs of the executive agency require
the use of a type of contract other than a perform-
ance-based contract.
(c) GAO REPORT.—Not later than one year after the
date on which the regulations required by subsection (a)
are published in the Federal Register, the Comptroller
General shall submit to Congress an evaluation of—
(1) executive agency compliance with the regu-
lations; and
(2) conformance of the regulations with existing
law, together with any recommendations that the
Comptroller General considers appropriate.
(d) DEFINITIONS.—In this section:
(1) The term ‘‘executive agency’’ has the mean-
ing given that term in section 4(1) of the Office of
Federal Procurement Policy Act (41 U.S.C. 403(1)).
(2) The term ‘‘information technology’’ has the
meaning given that term in section 5002(3) of the
Clinger-Cohen Act of 1996 (40 U.S.C. 1401(3)).
526
(3) The term ‘‘performance-based’’, with re-
spect to a contract, means that the contract includes
the use of performance work statements that set
forth contract requirements in clear, specific, and
objective terms with measurable outcomes.
SEC. 814. NAVY-MARINE CORPS INTRANET.
(a) LIMITATION.—None of the funds authorized to
be appropriated for the Department of the Navy may be
obligated or expended to carry out a Navy-Marine Corps
Intranet contract before—
(1) the Comptroller of the Department of De-
fense and the Director of the Office of Management
and Budget—
(A) have reviewed—
(i) the Report to Congress on the
Navy-Marine Corps Intranet submitted by
the Department of the Navy on June 30,
2000; and
(ii) the Business Case Analysis Sup-
plement for the Report to Congress on the
Navy-Marine Corps Intranet submitted by
the Department of the Navy on July 15,
2000; and
527
(B) have provided their written comments
to the Secretary of the Navy and the Chief of
Naval Operations; and
(2) the Secretary of the Navy and the Chief of
Naval Operations have submitted to Congress a joint
certification that they have reviewed the business
case for the contract and the comments provided by
the Comptroller of the Department of Defense and
the Director of the Office of Management and Budg-
et and that they have determined that the implemen-
tation of the contract is in the best interest of the
Department of the Navy.
(b) PHASED IMPLEMENTATION—(1) Upon the sub-
mission of the certification under subsection (a)(2), the
Secretary of the Navy may commence a phased implemen-
tation of a Navy-Marine Corps Intranet contract.
(2) Not more than 15 percent of the total number
of work stations to be provided under the Navy-Marine
Corps Intranet program may be provided in the first incre-
ment of implementation of the Navy-Marine Corps
Intranet contract.
(3) No work stations in excess of the number per-
mitted by paragraph (2) may be provided under the pro-
gram until—
528
(A) the Secretary of the Navy has conducted
operational testing and cost review of the increment
covered by that paragraph;
(B) the Chief Information Officer of the De-
partment of Defense has certified to the Secretary of
the Navy that the results of the operational testing
of the Intranet are acceptable;
(C) the Comptroller of the Department of De-
fense has certified to the Secretary of the Navy that
the cost review provides a reliable basis for fore-
casting the cost impact of continued implementation;
and
(D) the Secretary of the Navy and the Chief of
Naval Operations have submitted to Congress a joint
certification that they have reviewed the certifi-
cations submitted under subparagraphs (B) and (C)
and have determined that the continued implementa-
tion of the contract is in the best interest of the De-
partment of the Navy.
(4) No increment of the Navy-Marine Corps Intranet
that is implemented during fiscal year 2001 may include
any activities of the Marine Corps, the naval shipyards,
or the naval aviation depots. Funds available for fiscal
year 2001 for activities of the Marine Corps, the naval
shipyards, or the naval aviation depots may not be ex-
529
pended for any contract for the Navy-Marine Corps
Intranet.
(c) 
PROHIBITION
ON
INCREASE
OF
RATES
CHARGED.—The Secretary of the Navy shall ensure that
rates charged by a working capital funded industrial facil-
ity of the Department of the Navy for goods or services
provided by such facility are not increased during fiscal
year 2001 for the purpose of funding the Navy-Marine
Corps Intranet contract.
(d) APPLICABILITY
OF
STATUTORY
AND
REGU-
LATORY REQUIREMENTS.—The acquisition of a Navy-Ma-
rine Corps Intranet shall be managed by the Department
of the Navy in accordance with the requirements of—
(1) the Clinger-Cohen Act of 1996 (divisions D
and E of Public Law 104–106), including the re-
quirement for utilizing modular contracting in ac-
cordance with section 38 of the Office of Federal
Procurement Policy Act (41 U.S.C. 434); and
(2) Department of Defense Directives 5000.1
and 5000.2–R and all other directives, regulations,
and management controls that are applicable to
major investments in information technology and re-
lated services.
(e) IMPACT ON FEDERAL EMPLOYEES.—The Sec-
retary shall mitigate any adverse impact of the implemen-
530
tation of the Navy-Marine Corps Intranet on civilian em-
ployees of the Department of the Navy who, as of the date
of the enactment of this Act, are performing functions
that are included in the scope of the Navy-Marine Corps
Intranet program by—
(1) developing a comprehensive plan for the
transition of such employees to the performance of
other functions within the Department of the Navy;
(2) taking full advantage of transition authori-
ties available for the benefit of employees;
(3) encouraging the retraining of employees
who express a desire to qualify for reassignment to
the performance of other functions within the De-
partment of the Navy; and
(4) including a provision in the Navy-Marine
Corps Intranet contract that requires the contractor
to provide a preference for hiring employees of the
Department of the Navy who, as of the date of the
enactment of this Act, are performing functions that
are included in the scope of the contract.
(f) NAVY-MARINE CORPS INTRANET CONTRACT DE-
FINED.—In this section, the term ‘‘Navy-Marine Corps
Intranet contract’’ means a contract providing for a long-
term arrangement of the Department of the Navy with
the commercial sector that imposes on the contractor a
531
responsibility for, and transfers to the contractor the risk
of, providing and managing the significant majority of
desktop, server, infrastructure, and communication assets
and services of the Department of the Navy.
SEC. 815. SENSE OF CONGRESS REGARDING INFORMATION
TECHNOLOGY SYSTEMS FOR GUARD AND RE-
SERVE COMPONENTS.
It is the sense of Congress—
(1) that the Secretary of Defense should take
appropriate steps to provide for upgrading informa-
tion technology systems of the reserve components to
ensure that those systems are capable, as required
for mission purposes, of communicating with other
relevant information technology systems of the mili-
tary department concerned and of the Department
of Defense in general; and
(2) that the Secretary of each military depart-
ment should ensure that communications systems
for the reserve components under the Secretary’s ju-
risdiction receive appropriate funding for informa-
tion technology systems in order to achieve the capa-
bility referred to in paragraph (1).
532
Subtitle C—Other Acquisition-Related
Matters
SEC. 821. IMPROVEMENTS IN PROCUREMENTS OF SERV-
ICES.
(a) PREFERENCE FOR PERFORMANCE-BASED SERV-
ICE CONTRACTING.—Not later than 180 days after the
date of the enactment of this Act, the Federal Acquisition
Regulation issued in accordance with sections 6 and 25
of the Office of Federal Procurement Policy Act (41
U.S.C. 405 and 421) shall be revised to establish a pref-
erence for use of contracts and task orders for the pur-
chase of services in the following order of precedence:
(1) A performance-based contract or perform-
ance-based task order that contains firm fixed prices
for the specific tasks to be performed.
(2) Any other performance-based contract or
performance-based task order.
(3) Any contract or task order that is not a
performance-based contract or a performance-based
task order.
(b) INCENTIVE FOR USE OF PERFORMANCE-BASED
SERVICE CONTRACTS.—(1) A Department of Defense per-
formance-based service contract or performance-based
task order may be treated as a contract for the procure-
ment of commercial items if—
533
(A) the contract or task order is valued at
$5,000,000 or less;
(B) the contract or task order sets forth specifi-
cally each task to be performed and, for each task—
(i) defines the task in measurable, mission-
related terms;
(ii) identifies the specific end products or
output to be achieved; and
(iii) contains a firm fixed price; and
(C) the source of the services provides similar
services contemporaneously to the general public
under terms and conditions similar to those offered
to the Federal Government.
(2) The special simplified procedures provided in the
Federal Acquisition Regulation pursuant to section
2304(g)(1)(B) of title 10, United States Code, shall not
apply to a performance-based service contract or perform-
ance-based task order that is treated as a contract for the
procurement of commercial items under paragraph (1).
(3) Not later than 2 years after the date of the enact-
ment of this Act, the Comptroller General shall submit
a report on the implementation of this subsection to the
congressional defense committees.
534
(4) The authority under this subsection shall not
apply to contracts entered into or task orders issued more
than 3 years after the date of the enactment of this Act.
(c) CENTERS OF EXCELLENCE IN SERVICE CON-
TRACTING.—Not later than 180 days after the date of the
enactment of this Act, the Secretary of each military de-
partment shall establish at least one center of excellence
in contracting for services. Each center of excellence shall
assist the acquisition community by identifying, and serv-
ing as a clearinghouse for, best practices in contracting
for services in the public and private sectors.
(d) 
ENHANCED
TRAINING
IN
SERVICE
CON-
TRACTING.—(1) The Secretary of Defense shall ensure
that classes focusing specifically on contracting for serv-
ices are offered by the Defense Acquisition University and
the Defense Systems Management College and are other-
wise available to contracting personnel throughout the De-
partment of Defense.
(2) The Secretary of each military department and
the head of each Defense Agency shall ensure that the
personnel of the department or agency, as the case may
be, who are responsible for the awarding and management
of contracts for services receive appropriate training that
is focused specifically on contracting for services.
(e) DEFINITIONS.—In this section:
535
(1) The term ‘‘performance-based’’, with re-
spect to a contract, a task order, or contracting,
means that the contract, task order, or contracting,
respectively, includes the use of performance work
statements that set forth contract requirements in
clear, specific, and objective terms with measurable
outcomes.
(2) The term ‘‘commercial item’’ has the mean-
ing given the term in section 4(12) of the Office of
Federal 
Procurement 
Policy 
Act 
(41 
U.S.C.
403(12)).
(3) The term ‘‘Defense Agency’’ has the mean-
ing given the term in section 101(a)(11) of title 10,
United States Code.
SEC. 822. FINANCIAL ANALYSIS OF USE OF DUAL RATES
FOR QUANTIFYING OVERHEAD COSTS AT
ARMY AMMUNITION PLANTS.
(a) REQUIREMENT FOR ANALYSIS.—The Secretary of
the Army shall carry out a financial analysis of the costs
that would be incurred and the benefits that would be de-
rived from the implementation of a policy of using—
(1) one set of rates for quantifying the over-
head costs associated with Government-owned am-
munition plants of the Department of the Army
536
when allocating those costs to contractors operating
the plants; and
(2) another set of rates for quantifying the
overhead costs to be allocated to the operation of
such plants by employees of the United States.
(b) REPORT.—Not later than February 15, 2001, the
Secretary shall submit to the congressional defense com-
mittees a report on the results of the analysis carried out
under subsection (a). The report shall include the fol-
lowing:
(1) The costs and benefits identified in the
analysis under subsection (a).
(2) The risks to the United States of imple-
menting a dual-rate policy described in subsection
(a).
(3) The effects that a use of dual rates under
such a policy would have on the defense industrial
base of the United States.
SEC. 823. REPEAL OF PROHIBITION ON USE OF DEPART-
MENT OF DEFENSE FUNDS FOR PROCURE-
MENT 
OF 
NUCLEAR-CAPABLE 
SHIPYARD
CRANE FROM A FOREIGN SOURCE.
Section 8093 of the Department of Defense Appro-
priations Act, 2000 (Public Law 106–79; 113 Stat. 1253),
is amended by striking subsection (d), relating to a prohi-
537
bition on the use of Department of Defense funds to pro-
cure a nuclear-capable shipyard crane from a foreign
source.
SEC. 824. EXTENSION OF WAIVER PERIOD FOR LIVE-FIRE
SURVIVABILITY TESTING FOR MH–47E AND
MH–60K HELICOPTER MODIFICATION PRO-
GRAMS.
(a) EXISTING WAIVER PERIOD NOT APPLICABLE.—
Section 2366(c)(1) of title 10, United States Code, shall
not apply with respect to survivability and lethality tests
for the MH–47E and MH–60K helicopter modification
programs. Except as provided in the previous sentence, the
provisions and requirements in section 2366(c) of such
title shall apply with respect to such programs, and the
certification required by subsection (b) shall comply with
the requirements in paragraph (3) of such section.
(b) EXTENDED PERIOD FOR WAIVER.—With respect
to the MH–47E and MH–60K helicopter modification pro-
grams, the Secretary of Defense may waive the application
of the survivability and lethality tests described in section
2366(a) of title 10, United States Code, if the Secretary,
before full materiel release of the MH–47E and MH–60K
helicopters for operational use, certifies to Congress that
live-fire testing of the programs would be unreasonably ex-
pensive and impracticable.
538
(c) CONFORMING AMENDMENT.—Section 142(a) of
the National Defense Authorization Act for Fiscal Year
1993 (Public Law 102–484; 106 Stat. 2338) is amended
by striking ‘‘and survivability testing’’ in paragraphs (1)
and (2).
SEC. 825. COMPLIANCE WITH EXISTING LAW REGARDING
PURCHASES OF EQUIPMENT AND PRODUCTS.
(a) SENSE OF CONGRESS REGARDING PURCHASE BY
THE DEPARTMENT OF DEFENSE OF EQUIPMENT AND
PRODUCTS.—It is the sense of Congress that any entity
of the Department of Defense, in expending funds author-
ized by this Act for the purchase of equipment or prod-
ucts, should fully comply with the Buy American Act (41
U.S.C. 10a et seq.) and section 2533 of title 10, United
States Code.
(b) DEBARMENT
OF
PERSONS
CONVICTED
OF
FRAUDULENT USE OF ‘‘MADE IN AMERICA’’ LABELS.—
If the Secretary of Defense determines that a person has
been convicted of intentionally affixing a label bearing a
‘‘Made in America’’ inscription, or another inscription
with the same meaning, to any product sold in or shipped
to the United States that is not made in the United
States, the Secretary shall determine, in accordance with
section 2410f of title 10, United States Code, whether the
539
person should be debarred from contracting with the De-
partment of Defense.
SEC. 826. REQUIREMENT TO DISREGARD CERTAIN AGREE-
MENTS IN AWARDING CONTRACTS FOR THE
PURCHASE OF FIREARMS OR AMMUNITION.
In accordance with the requirements contained in the
amendments enacted in the Competition in Contracting
Act of 1984 (title VII of division B of Public Law 98–
369; 98 Stat. 1175), the Secretary of Defense may not,
in awarding a contract for the purchase of firearms or
ammunition, take into account whether a manufacturer or
vendor of firearms or ammunition is a party to an agree-
ment under which the manufacturer or vendor agrees to
adopt limitations with respect to importing, manufac-
turing, or dealing in firearms or ammunition in the com-
mercial market.
Subtitle D—Studies and Reports
SEC. 831. STUDY ON IMPACT OF FOREIGN SOURCING OF
SYSTEMS ON LONG-TERM MILITARY READI-
NESS AND RELATED INDUSTRIAL INFRA-
STRUCTURE.
(a) STUDY REQUIRED.—The Secretary of Defense
shall conduct a study analyzing in detail—
540
(1) the amount and sources of parts, compo-
nents, and materials of the systems described in sub-
section (b) that are obtained from foreign sources;
(2) the impact of obtaining such parts, compo-
nents, and materials from foreign sources on the
long-term readiness of the Armed Forces and on the
economic viability of the national technology and in-
dustrial base;
(3) the impact on military readiness that would
result from the loss of the ability to obtain parts,
components, and materials identified pursuant to
paragraph (1) from foreign sources; and
(4) the availability of domestic sources for
parts, components, and materials identified as being
obtained from foreign sources pursuant to paragraph
(1).
(b) SYSTEMS.—The systems referred to in subsection
(a) are the following:
(1) AH–64D Apache helicopter.
(2) F/A–18 E/F aircraft.
(3) M1A2 Abrams tank.
(4) AIM–120 AMRAAM missile.
(5) Patriot missile ground station.
(6) Hellfire missile.
541
(c) SOURCE OF INFORMATION.—The Secretary shall
collect information to be analyzed under the study from
prime contractors and first and second tier subcontrac-
tors.
(d) REPORT REQUIRED.—Not later than one year
after the date of the enactment of this Act, the Secretary
shall submit to Congress a report describing the results
of the study required by this section.
(e) DEFINITIONS.—In this section:
(1) The term ‘‘domestic source’’ means a per-
son or organization that falls within the term ‘‘na-
tional technology and industrial base’’, as defined in
section 2500(1) of title 10, United States Code.
(2) The term ‘‘foreign source’’ means a person
or organization that does not fall within the meaning
of the term ‘‘national technology and industrial
base’’, as defined in such section.
(3) The term ‘‘national technology and indus-
trial base’’ has the meaning given that term in such
section.
SEC. 832. STUDY OF POLICIES AND PROCEDURES FOR
TRANSFER OF COMMERCIAL ACTIVITIES.
(a) GAO-CONVENED PANEL.—The Comptroller Gen-
eral shall convene a panel of experts to study the policies
and procedures governing the transfer of commercial ac-
542
tivities for the Federal Government from Government per-
sonnel to a Federal contractor, including—
(1) procedures for determining whether func-
tions should continue to be performed by Govern-
ment personnel;
(2) procedures for comparing the costs of per-
formance of functions by Government personnel and
the costs of performance of such functions by Fed-
eral contractors;
(3) implementation by the Department of De-
fense of the Federal Activities Inventory Reform Act
of 1998 (Public Law 105–270; 31 U.S.C. 501 note);
and
(4) procedures of the Department of Defense
for public-private competitions pursuant to the Of-
fice of Management and Budget Circular A–76.
(b) COMPOSITION OF PANEL.—(1) The Comptroller
General shall appoint highly qualified and knowledgeable
persons to serve on the panel and shall ensure that the
following entities receive fair representation on the panel:
(A) The Department of Defense.
(B) Persons in private industry.
(C) Federal labor organizations.
(D) The Office of Management and Budget.
543
(2) For the purposes of the requirement for fair rep-
resentation under paragraph (1), persons serving on the
panel under subparagraph (C) of that paragraph shall not
be counted as persons serving on the panel under subpara-
graph (A), (B), or (D) of that paragraph.
(c) CHAIRMAN.—The Comptroller General, or an in-
dividual within the General Accounting Office designated
by the Comptroller General, shall be the chairman of the
panel.
(d) PARTICIPATION BY OTHER INTERESTED PAR-
TIES.—The chairman shall ensure that all interested par-
ties, including individuals who are not represented on the
panel who are officers or employees of the United States,
persons in private industry, or representatives of Federal
labor organizations, have the opportunity to submit infor-
mation and views on the matters being studied by the
panel.
(e) INFORMATION FROM AGENCIES.—The panel may
request directly from any department or agency of the
United States any information that the panel considers
necessary to carry out a meaningful study of the policies
and procedures described in subsection (a), including the
Office of Management and Budget Circular A–76 process.
To the extent consistent with applicable laws and regula-
544
tions, the head of such department or agency shall furnish
the requested information to the panel.
(f) REPORT.—Not later than May 1, 2002, the
Comptroller General shall submit the report of the panel
on the results of the study to Congress, including rec-
ommended changes with respect to implementation of poli-
cies and enactment of legislation.
(g) DEFINITION.—In this section, the term ‘‘Federal
labor organization’’ has the meaning given the term ‘‘labor
organization’’ in section 7103(a)(4) of title 5, United
States Code.
SEC. 833. STUDY AND REPORT ON PRACTICE OF CONTRACT
BUNDLING 
IN 
MILITARY 
CONSTRUCTION
CONTRACTS.
(a) STUDY REQUIRED.—The Comptroller General of
the United States shall conduct a study regarding the use
of the practice known as ‘‘contract bundling’’ with respect
to military construction contracts.
(b) REPORT.—Not later than February 1, 2001, the
Comptroller General shall submit to the committees on
Armed Services of the Senate and the House of Represent-
atives a report on the results of the study conducted under
subsection (a).
545
SEC. 834. REQUIREMENT TO CONDUCT STUDY ON CON-
TRACT BUNDLING.
(a) IN GENERAL.—The Secretary of Defense shall
conduct a comprehensive study on the practice known as
‘‘contract bundling’’ by the Department of Defense, and
the effects of such practice on small business concerns,
small business concerns owned and controlled by socially
and economically disadvantaged individuals, small busi-
ness concerns owned and controlled by women, and his-
torically underutilized business zones (as such terms are
used in the Small Business Act (15 U.S.C. 631 et seq.)).
(b) DEADLINE.—The Secretary shall submit the re-
sults of the study to the Committees on Armed Services
and Small Business of the Senate and the House of Rep-
resentatives before submission of the budget request of the
Department of Defense for fiscal year 2002.
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND
MANAGEMENT
Subtitle A—Duties and Functions of Department of Defense
Officers
Sec. 901. Overall supervision of Department of Defense activities for combating
terrorism.
Sec. 902. Change of title of certain positions in the Headquarters, Marine
Corps.
Sec. 903. Clarification of scope of Inspector General authorities under military
whistleblower law.
Sec. 904. Policy to ensure conduct of science and technology programs so as
to foster the transition of science and technology to higher lev-
els of research, development, test, and evaluation.
Sec. 905. Additional components of Chairman of the Joint Chiefs of staff an-
nual report on combatant command requirements.
546
Subtitle B—Department of Defense Organizations
Sec. 911. Western Hemisphere Institute for Security Cooperation.
Sec. 912. Department of Defense regional centers for security studies.
Sec. 913. Change in name of Armed Forces Staff College to Joint Forces Staff
College.
Sec. 914. Special authority for administration of Navy Fisher Houses.
Sec. 915. Supervisory control of Armed Forces Retirement Home board by Sec-
retary of Defense.
Sec. 916. Semiannual report on Joint Requirements Oversight Council reform
initiative.
Sec. 917. Comptroller General review of operations of Defense Logistics Agen-
cy.
Sec. 918. Comptroller General review of operations of Defense Information Sys-
tems Agency.
Subtitle C—Information Security
Sec. 921. Institute for Defense Computer Security and Information Protection.
Sec. 922. Information security scholarship program.
Subtitle D—Reports
Sec. 931. Date of submittal of reports on shortfalls in equipment procurement
and military construction for the reserve components in future-
years defense programs.
Sec. 932. Report on number of personnel assigned to legislative liaison func-
tions.
Sec. 933. Joint report on establishment of national collaborative information
analysis capability.
Sec. 934. Network centric warfare.
Sec. 935. Report on Air Force Institute of Technology.
Subtitle E—Other Matters
Sec. 941. Flexibility in implementation of limitation on major Department of
Defense headquarters activities personnel.
Sec. 942. Consolidation of certain Navy gift funds.
Sec. 943. Temporary authority to dispose of a gift previously accepted for the
Naval Academy.
547
Subtitle A—Duties and Functions
of Department of Defense Officers
SEC. 901. OVERALL SUPERVISION OF DEPARTMENT OF DE-
FENSE ACTIVITIES FOR COMBATING TER-
RORISM.
Section 138(b) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(6)(A) One of the Assistant Secretaries, as des-
ignated by the Secretary of Defense from among those As-
sistant Secretaries with responsibilities that include re-
sponsibilities related to combating
terrorism, shall
have, among that Assistant Secretary’s duties, the duty
to provide overall direction and supervision for policy, pro-
gram planning and execution, and allocation and use of
resources for the activities of the Department of Defense
for combating terrorism, including antiterrorism activities,
counterterrorism activities, terrorism consequences man-
agement activities, and terrorism-related intelligence sup-
port activities.
‘‘(B) The Assistant Secretary designated under sub-
paragraph (A) shall be the principal civilian adviser to the
Secretary of Defense on combating terrorism and (after
the Secretary and Deputy Secretary) shall be the principal
548
official within the senior management of the Department
of Defense responsible for combating terrorism.
‘‘(C) If the Secretary of Defense designates under
subparagraph (A) an Assistant Secretary other than the
Assistant Secretary of Defense for Special Operations and
Low Intensity Conflict, then the responsibilities of the As-
sistant Secretary of Defense for Special Operations and
Low Intensity Conflict related to combating terrorism
shall be exercised subject to subparagraph (B).’’.
SEC. 902. CHANGE OF TITLE OF CERTAIN POSITIONS IN
THE HEADQUARTERS, MARINE CORPS.
(a) INSTITUTION OF POSITIONS AS DEPUTY COM-
MANDANTS.—Section 5041(b) of title 10, United States
Code, is amended—
(1) by striking paragraphs (3) through (5) and
inserting the following:
‘‘(3) The Deputy Commandants.’’; and
(2) by redesignating paragraphs (6) and (7) as
paragraphs (4) and (5), respectively.
(b) DESIGNATION OF DEPUTY COMMANDANTS.—(1)
Section 5045 of such title is amended to read as follows:
‘‘§ 5045. Deputy Commandants
‘‘There are in the Headquarters, Marine Corps, not
more than five Deputy Commandants, detailed by the Sec-
549
retary of the Navy from officers on the active-duty list
of the Marine Corps.’’.
(2) The item relating to section 5045 in the table of
sections at the beginning of chapter 506 of such title is
amended to read as follows:
‘‘5045. Deputy Commandants.’’.
(c) CONFORMING AMENDMENT.—Section 1502(7)(D)
of the Armed Forces Retirement Home Act of 1991 (24
U.S.C. 401) is amended to read as follows:
‘‘(D) the Deputy Commandant of the Ma-
rine Corps with responsibility for personnel
matters.’’.
SEC. 903. CLARIFICATION OF SCOPE OF INSPECTOR GEN-
ERAL AUTHORITIES UNDER MILITARY WHIS-
TLEBLOWER LAW.
(a) CLARIFICATION
OF RESPONSIBILITIES.—Sub-
section (c)(3)(A) of section 1034 of title 10, United States
Code, is amended by inserting ‘‘, in accordance with regu-
lations prescribed under subsection (h),’’ after ‘‘shall expe-
ditiously determine’’.
(b) REDEFINITION OF INSPECTOR GENERAL.—Sub-
section (i)(2) of such section is amended—
(1) by inserting ‘‘any of’’ in the matter pre-
ceding subparagraph (A) after ‘‘means’’;
(2) by striking subparagraphs (C), (D), (E),
(F) and (G); and
550
(3) by inserting after subparagraph (B) the fol-
lowing new subparagraph (C):
‘‘(C) Any officer of the armed forces or
employee of the Department of Defense who is
assigned or detailed to serve as an Inspector
General at any level in the Department of De-
fense.’’.
SEC. 904. POLICY TO ENSURE CONDUCT OF SCIENCE AND
TECHNOLOGY PROGRAMS SO AS TO FOSTER
THE TRANSITION OF SCIENCE AND TECH-
NOLOGY TO HIGHER LEVELS OF RESEARCH,
DEVELOPMENT, TEST, AND EVALUATION.
(a) IN GENERAL.—(1) Chapter 139 of title 10,
United States Code, is amended by inserting after section
2358 the following new section:
‘‘§ 2359. Science and technology programs to be con-
ducted so as to foster the transition of
science and technology to higher levels of
research, development, test, and evalua-
tion
‘‘(a) POLICY.—Each official specified in subsection
(b) shall ensure that the management and conduct of the
science and technology programs under the authority of
that official are carried out in a manner that will foster
551
the transition of science and technology to higher levels
of research, development, test, and evaluation.
‘‘(b) COVERED OFFICIALS.—Subsection (a) applies to
the following officials of the Department of Defense:
‘‘(1) The Under Secretary of Defense for Ac-
quisition, Technology, and Logistics.
‘‘(2) The Secretary of each military depart-
ment.
‘‘(3) The Director of the Defense Advanced Re-
search Projects Agency.
‘‘(4) The directors and heads of other offices
and agencies of the Department of Defense with as-
signed research, development, test, and evaluation
responsibilities.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 2358 the following new item:
‘‘2359. Science and technology programs to be conducted so as to foster the
transition of science and technology to higher levels of re-
search, development, test, and evaluation.’’.
(b) OFFICE OF NAVAL RESEARCH.—Section 5022(b)
of title 10, United States Code, is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(2);
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; and’’; and
552
(3) by adding at the end the following new
paragraph:
‘‘(4) the execution of, and management respon-
sibility for, programs for which funds are provided
in the basic and applied research and advanced tech-
nology categories of the Department of the Navy re-
search, development, test, and evaluation budget in
such a manner that will foster the transition of
science and technology to higher levels of research,
development, test and evaluation.’’.
SEC. 905. ADDITIONAL COMPONENTS OF CHAIRMAN OF
THE JOINT CHIEFS OF STAFF ANNUAL RE-
PORT ON COMBATANT COMMAND REQUIRE-
MENTS.
(a) ADDITIONAL COMPONENTS.—Section 153(d)(1)
of title 10, United States Code, is amended by adding at
the end the following new subparagraphs:
‘‘(C) A description of the extent to which the
most recent future-years defense program (under
section 221 of this title) addresses the requirements
on the consolidated lists.
‘‘(D) A description of the funding proposed in
the President’s budget for the next fiscal year, and
for the subsequent fiscal years covered by the most
recent future-years defense program, to address each
553
deficiency in readiness identified during the joint
readiness review conducted under section 117 of this
title for the first quarter of the current fiscal year.’’.
(b) TIME FOR SUBMISSION.—Such section is further
amended by striking ‘‘Not later than August 15 of each
year,’’ and inserting ‘‘At or about the time that the budget
is submitted to Congress for a fiscal year under section
1105(a) of title 31,’’.
Subtitle B—Department of Defense
Organizations
SEC. 911. WESTERN HEMISPHERE INSTITUTE FOR SECU-
RITY COOPERATION.
(a) IN GENERAL.—Chapter 108 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 2166. Western Hemisphere Institute for Security
Cooperation
‘‘(a) ESTABLISHMENT AND ADMINISTRATION.—(1)
The Secretary of Defense may operate an education and
training facility for the purpose set forth in subsection (b).
The facility shall be known as the ‘Western Hemisphere
Institute for Security Cooperation’.
‘‘(2) The Secretary may designate the Secretary of
a military department as the Department of Defense exec-
554
utive agent for carrying out the responsibilities of the Sec-
retary of Defense under this section.
‘‘(b) PURPOSE.—The purpose of the Institute is to
provide professional education and training to eligible per-
sonnel of nations of the Western Hemisphere within the
context of the democratic principles set forth in the Char-
ter of the Organization of American States (such charter
being a treaty to which the United States is a party), while
fostering mutual knowledge, transparency, confidence, and
cooperation among the participating nations and pro-
moting democratic values, respect for human rights, and
knowledge and understanding of United States customs
and traditions.
‘‘(c) ELIGIBLE PERSONNEL.—(1) Subject to para-
graph (2), personnel of nations of the Western Hemi-
sphere are eligible for education and training at the Insti-
tute as follows:
‘‘(A) Military personnel.
‘‘(B) Law enforcement personnel.
‘‘(C) Civilian personnel.
‘‘(2) The Secretary of State shall be consulted in the
selection of foreign personnel for education or training at
the Institute.
‘‘(d) CURRICULUM.—(1) The curriculum of the Insti-
tute shall include mandatory instruction for each student,
555
for at least 8 hours, on human rights, the rule of law,
due process, civilian control of the military, and the role
of the military in a democratic society.
‘‘(2) The curriculum may include instruction and
other educational and training activities on the following:
‘‘(A) Leadership development.
‘‘(B) Counterdrug operations.
‘‘(C) Peace support operations.
‘‘(D) Disaster relief.
‘‘(E) Any other matter that the Secretary de-
termines appropriate.
‘‘(e) BOARD OF VISITORS.—(1) There shall be a
Board of Visitors for the Institute. The Board shall be
composed of the following:
‘‘(A) The chairman and ranking minority mem-
ber of the Committee on Armed Services of the Sen-
ate, or a designee of either of them.
‘‘(B) The chairman and ranking minority mem-
ber of the Committee on Armed Services of the
House of Representatives, or a designee of either of
them.
‘‘(C) Six persons designated by the Secretary of
Defense including, to the extent practicable, persons
from academia and the religious and human rights
communities.
556
‘‘(D) One person designated by the Secretary of
State.
‘‘(E) The senior military officer responsible for
training and doctrine for the Army or, if the Sec-
retary of the Navy or the Secretary of the Air Force
is designated as the executive agent of the Secretary
of Defense under subsection (a)(2), the senior mili-
tary officer responsible for training and doctrine for
the Navy or Marine Corps or for the Air Force, re-
spectively, or a designee of the senior military officer
concerned.
‘‘(F) The commander of the unified combatant
command having geographic responsibility for Latin
America, or a designee of that officer.
‘‘(2) A vacancy in a position on the Board shall be
filled in the same manner as the position was originally
filled.
‘‘(3) The Board shall meet at least once each year.
‘‘(4)(A) The Board shall inquire into the curriculum,
instruction, physical equipment, fiscal affairs, and aca-
demic methods of the Institute, other matters relating to
the Institute that the Board decides to consider, and any
other matter that the Secretary of Defense determines ap-
propriate.
557
‘‘(B) The Board shall review the curriculum of the
Institute to determine whether—
‘‘(i) the curriculum complies with applicable
United States laws and regulations;
‘‘(ii) the curriculum is consistent with United
States policy goals toward Latin America and the
Caribbean;
‘‘(iii) the curriculum adheres to current United
States doctrine; and
‘‘(iv) the instruction under the curriculum ap-
propriately emphasizes the matters specified in sub-
section (d)(1).
‘‘(5) Not later than 60 days after its annual meeting,
the Board shall submit to the Secretary of Defense a writ-
ten report of its activities and of its views and rec-
ommendations pertaining to the Institute.
‘‘(6) Members of the Board shall not be compensated
by reason of service on the Board.
‘‘(7) With the approval of the Secretary of Defense,
the Board may accept and use the services of voluntary
and uncompensated advisers appropriate to the duties of
the Board without regard to section 1342 of title 31.
‘‘(8) Members of the Board and advisers whose serv-
ices are accepted under paragraph (7) shall be allowed
travel and transportation expenses, including per diem in
558
lieu of subsistence, while away from their homes or regular
places of business in the performance of services for the
Board. Allowances under this paragraph shall be
computed—
‘‘(A) in the case of members of the Board who
are officers or employees of the United States, at
rates authorized for employees of agencies under
subchapter I of chapter 57 of title 5; and
‘‘(B) in the case of other members of the Board
and advisers, as authorized under section 5703 of
title 5 for employees serving without pay.
‘‘(9) The Federal Advisory Committee Act (5 U.S.C.
App. 2), other than section 14 (relating to termination
after two years), shall apply to the Board.
‘‘(f) FIXED COSTS.—The fixed costs of operating and
maintaining the Institute for a fiscal year may be paid
from—
‘‘(1) any funds available for that fiscal year for
operation and maintenance for the executive agent
designated under subsection (a)(2); or
‘‘(2) if no executive agent is designated under
subsection (a)(2), any funds available for that fiscal
year for the Department of Defense for operation
and maintenance for Defense-wide activities.
559
‘‘(g) TUITION.—Tuition fees charged for persons who
attend the Institute may not include the fixed costs of op-
erating and maintaining the Institute.
‘‘(h) ANNUAL REPORT.—Not later than March 15 of
each year, the Secretary of Defense shall submit to Con-
gress a detailed report on the activities of the Institute
during the preceding year. The report shall be prepared
in consultation with the Secretary of State.’’.
(b) REPEAL OF AUTHORITY FOR UNITED STATES
ARMY SCHOOL OF THE AMERICAS.—Section 4415 of title
10, United States Code, is repealed.
(c) CLERICAL AMENDMENTS.—(1) The table of sec-
tions at the beginning of chapter 108 of title 10, United
States Code, is amended by inserting after the item relat-
ing to section 2165 the following new item:
‘‘2166. Western Hemisphere Institute for Security Cooperation.’’.
(2) The table of sections at the beginning of chapter
407 of such title is amended by striking the item relating
to section 4415.
SEC. 912. DEPARTMENT OF DEFENSE REGIONAL CENTERS
FOR SECURITY STUDIES.
(a) REQUIREMENT
FOR
ANNUAL
REPORT.—(1)
Chapter 7 of title 10, United States Code, is amended by
adding at the end the following new section:
560
‘‘§ 184. Department of Defense regional centers for se-
curity studies
‘‘(a) ADVANCE NOTIFICATION TO CONGRESS OF THE
ESTABLISHMENT OF NEW REGIONAL CENTERS.—After
the date of the enactment of this section, a regional center
for security studies may not be established in the Depart-
ment of Defense until—
‘‘(1) the Secretary of Defense submits to Con-
gress a notification of the intent of the Secretary to
establish the center, including a description of the
mission and functions of the proposed center and a
justification for the proposed center; and
‘‘(2) a period of 90 days has elapsed after the
date on which that notification is submitted.
‘‘(b) REQUIREMENT
FOR ANNUAL REPORT.—Not
later than February 1 of each year, the Secretary of De-
fense shall submit to the Committee on Armed Services
of the Senate and the Committee on Armed Services of
the House of Representatives a report on the operation
of the Department of Defense regional centers for security
studies during the preceding fiscal year. The annual report
shall include, for each regional center, the following infor-
mation:
‘‘(1) The status and objectives of the center.
‘‘(2) The budget of the center, including the
costs of operating the center.
561
‘‘(3) A description of the extent of the inter-
national participation in the programs of the center,
including the costs incurred by the United States for
the participation of each foreign nation.
‘‘(4) A description of the foreign gifts and do-
nations, if any, accepted under any of the following
provisions of law:
‘‘(A) Section 2611 of this title.
‘‘(B) Section 1306 of the National Defense
Authorization Act for Fiscal Year 1995 (Public
Law 103–337; 108 Stat. 2892).
‘‘(C) Section 1065 of the National Defense
Authorization Act for Fiscal Year 1997 (Public
Law 104–201; 110 Stat. 2653; 10 U.S.C. 113
note).
‘‘(c) REGIONAL CENTER
FOR SECURITY STUDIES
DEFINED.—For the purposes of this section, a regional
center for security studies is any center within the Depart-
ment of Defense that—
‘‘(1) is operated, and designated as such, by the
Secretary of Defense for the study of security issues
relating to a specified geographic region of the
world; and
562
‘‘(2) serves as a forum for bilateral and multi-
lateral communication and military and civilian ex-
changes with nations in that region.’’.
(2) The table of sections at the beginning of chapter
7 of such title is amended by adding at the end the fol-
lowing new item:
‘‘184. Department of Defense regional centers for security studies.’’.
(b) FIRST ANNUAL REPORT.—In the first annual re-
port on Department of Defense regional centers for secu-
rity studies under section 184(b) of title 10, United States
Code (as added by subsection (a)), to be submitted not
later than February 1, 2001, the Secretary of Defense
shall include any recommendation for legislation that the
Secretary considers appropriate for the operation of De-
partment of Defense regional centers for security studies,
together with a detailed justification for the recommended
legislation.
SEC. 913. CHANGE IN NAME OF ARMED FORCES STAFF COL-
LEGE TO JOINT FORCES STAFF COLLEGE.
(a) CHANGE IN NAME.—The Armed Forces Staff
College of the Department of Defense is hereby renamed
the ‘‘Joint Forces Staff College’’.
(b) CONFORMING AMENDMENT.—Section 2165(b)(3)
of title 10, United States Code, is amended by striking
‘‘Armed Forces Staff College’’ and inserting ‘‘Joint Forces
Staff College’’.
563
(c) REFERENCES.—Any reference to the Armed
Forces Staff College in any law, regulation, map, docu-
ment, record, or other paper of the United States shall
be considered to be a reference to the Joint Forces Staff
College.
SEC. 914. SPECIAL AUTHORITY FOR ADMINISTRATION OF
NAVY FISHER HOUSES.
(a) BASE OPERATING SUPPORT.—Section 2493 of
title 10, United States Code, is amended—
(1) by redesignating subsection (f) as sub-
section (g); and
(2) by inserting after subsection (e) the fol-
lowing new subsection (f):
‘‘(f) SPECIAL AUTHORITY
FOR NAVY.—The Sec-
retary of the Navy shall provide base operating support
for Fisher Houses associated with health care facilities of
the Navy. The level of the support shall be equivalent to
the base operating support that the Secretary provides for
morale, welfare, and recreation category B community ac-
tivities (as defined in regulations, prescribed by the Sec-
retary, that govern morale, welfare, and recreation activi-
ties associated with Navy installations).’’.
(b) SAVINGS PROVISIONS FOR CERTAIN NAVY EM-
PLOYEES.—(1) The Secretary of the Navy may continue
to employ, and pay out of appropriated funds, any em-
564
ployee of the Navy in the competitive service who, as of
October 17, 1998, was employed by the Navy in a position
at a Fisher House administered by the Navy, but only for
so long as the employee is continuously employed in that
position.
(2) After a person vacates a position in which the
person was continued to be employed under the authority
of paragraph (1), a person employed in that position shall
be employed as an employee of a nonappropriated fund
instrumentality of the United States and may not be paid
for services in that position out of appropriated funds.
(3) In this subsection:
(A) The term ‘‘Fisher House’’ has the meaning
given the term in section 2493(a)(1) of title 10,
United States Code.
(B) The term ‘‘competitive service’’ has the
meaning given the term in section 2102 of title 5,
United States Code.
(c) EFFECTIVE DATE.—(1) The amendments made
by subsection (a) shall be effective as of October 17, 1998,
as if included in section 2493 of title 10, United States
Code, as enacted by section 906(a) of Public Law 105–
261.
565
(2) Subsection (b) applies with respect to the pay pe-
riod that includes October 17, 1998, and subsequent pay
periods.
SEC. 915. SUPERVISORY CONTROL OF ARMED FORCES RE-
TIREMENT HOME BOARD BY SECRETARY OF
DEFENSE.
The Armed Forces Retirement Home Act of 1991
(title XV of Public Law 101–510; 24 U.S.C. 401 et seq.)
is amended by inserting after section 1523 the following
new section:
‘‘SEC. 1524. CONDITIONAL SUPERVISORY CONTROL OF RE-
TIREMENT HOME BOARD BY SECRETARY OF
DEFENSE.
‘‘(a) APPLICABILITY.—This section shall apply only
when the deduction authorized by section 1007(i)(1) of
title 37, United States Code, to be made from the monthly
pay of certain members of the armed forces is equal to
$1.00 for each enlisted member, warrant officer, and lim-
ited duty officer of the armed forces on active duty.
‘‘(b) BOARD AUTHORITY SUBJECT TO SECRETARY’S
CONTROL.—The Retirement Home Board shall be subject
to the authority, direction, and control of the Secretary
of Defense in the performance of the Board’s duties under
section 1516.
566
‘‘(c) APPOINTMENT OF BOARD MEMBERS.—When an
appointment of a member of the Retirement Home Board
under section 1515 is not made by the Secretary of De-
fense, the appointment shall be subject to the approval of
the Secretary of Defense.
‘‘(d) TERMS OF BOARD MEMBERS.—(1) Notwith-
standing section 1515(e)(3), only the Secretary of Defense
may appoint a member of the Retirement Home Board
for a second consecutive term.
‘‘(2) The Secretary of Defense may terminate the ap-
pointment of a member of the Retirement Home Board
at the pleasure of the Secretary.
‘‘(e) RESPONSIBILITY OF CHAIRMAN TO THE SEC-
RETARY.—Notwithstanding section 1515(d)(1)(B), the
chairman of the Retirement Home Board shall be respon-
sible to the Secretary of Defense, but not to the Secre-
taries of the military departments, for direction and man-
agement of the Retirement Home or each facility main-
tained as a separate facility of the Retirement Home.’’.
SEC. 916. SEMIANNUAL REPORT ON JOINT REQUIREMENTS
OVERSIGHT COUNCIL REFORM INITIATIVE.
(a) SEMIANNUAL REPORT.—The Chairman of the
Joints Chiefs of Staff shall submit to the Committee on
Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a series
567
of five semiannual reports, as prescribed by subsection (b),
on the activities of the Joint Requirements Oversight
Council. The principal focus of each such report shall be
on the progress made on the initiative of the Chairman
to reform and refocus the Joint Requirements Oversight
Council.
(b) SUBMISSION OF REPORTS.—Reports under this
section shall be submitted not later than March 1, 2001,
September 1, 2001, March 1, 2002, September 1, 2002,
and March 1, 2003. Each report shall cover the half of
a fiscal year that ends five months before the date on
which the report is due.
(c) CONTENT.—In the case of any report under this
section after the first such report, if any matter to be in-
cluded is unchanged from the preceding report, that mat-
ter may be included by reference to the preceding report.
Each such report shall include, to the extent practicable,
the following:
(1) A listing of each of the capability areas des-
ignated by the Chairman of the Joints Chiefs of
Staff as being within the principal domain of the
Joint Requirements Oversight Council and a jus-
tification for each such designation.
568
(2) A listing of the joint requirements devel-
oped, considered, or approved within each of the ca-
pability areas listed pursuant to paragraph (1).
(3) A listing and explanation of the decisions
made by the Joint Requirements Oversight Council
and, to the extent appropriate, a listing of each of
the recommendations to the Council made by the
commander of the United States Joint Forces Com-
mand.
(4) An assessment of—
(A) the progress made in shifting the Joint
Requirements Oversight Council to having a
more strategic focus on future war fighting re-
quirements;
(B) the progress made on integration of
requirements; and
(C) the progress made on development of
overarching common architectures for defense
information systems to ensure that common de-
fense information systems are fully interoper-
able.
(5) A description of any actions that have been
taken to improve the Joint Requirements Oversight
Council.
569
SEC. 917. COMPTROLLER GENERAL REVIEW OF OPER-
ATIONS OF DEFENSE LOGISTICS AGENCY.
(a) COMPTROLLER GENERAL REVIEW REQUIRED.—
The Comptroller General shall review the operations of the
Defense Logistics Agency—
(1) to assess—
(A) the efficiency of those operations;
(B) the effectiveness of those operations in
meeting customer requirements; and
(C) the flexibility of those operation to
adopt best business practices; and
(2) to identify alternative approaches for im-
proving the operations of that agency.
(b) REPORT.—Not later than February 1, 2002, the
Comptroller General shall submit to the Committees on
Armed Services of the Senate and the House of Represent-
atives one or more reports setting forth the Comptroller
General’s findings resulting from the review under sub-
section (a).
SEC. 918. COMPTROLLER GENERAL REVIEW OF OPER-
ATIONS OF DEFENSE INFORMATION SYSTEMS
AGENCY.
(a) COMPTROLLER GENERAL REVIEW REQUIRED.—
The Comptroller General shall review the operations of the
Defense Information Systems Agency—
(1) to assess—
570
(A) the efficiency of those operations;
(B) the effectiveness of those operations in
meeting customer requirements; and
(C) the flexibility of those operations to
adopt best business practices; and
(2) to identify alternative approaches for im-
proving the operations of that agency.
(b) REPORT.—Not later than February 1, 2002, the
Comptroller General shall submit to the Committees on
Armed Services of the Senate and the House of Represent-
atives one or more reports setting forth the Comptroller
General’s findings resulting from the review under sub-
section (a).
Subtitle C—Information Security
SEC. 921. INSTITUTE FOR DEFENSE COMPUTER SECURITY
AND INFORMATION PROTECTION.
(a) ESTABLISHMENT.—The Secretary of Defense
shall establish an Institute for Defense Computer Security
and Information Protection.
(b) MISSION.—The Secretary shall require the
institute—
(1) to conduct research and technology develop-
ment that is relevant to foreseeable computer and
network security requirements and information as-
surance requirements of the Department of Defense
571
with a principal focus on areas not being carried out
by other organizations in the private or public sec-
tor; and
(2) to facilitate the exchange of information re-
garding cyberthreats, technology, tools, and other
relevant issues.
(c) CONTRACTOR OPERATION.—The Secretary shall
enter into a contract with a not-for-profit entity, or a con-
sortium of not-for-profit entities, to organize and operate
the institute. The Secretary shall use competitive proce-
dures for the selection of the contractor to the extent de-
termined necessary by the Secretary.
(d) FUNDING.—Of the amount authorized to be ap-
propriated by section 301(5), $5,000,000 shall be avail-
able for the Institute for Defense Computer Security and
Information Protection.
(e) REPORT.—Not later than April 1, 2001, the Sec-
retary shall submit to the congressional defense commit-
tees the Secretary’s plan for implementing this section.
SEC. 922. INFORMATION SECURITY SCHOLARSHIP PRO-
GRAM.
(a) ESTABLISHMENT OF PROGRAM.—(1) Part III of
subtitle A of title 10, United States Code, is amended by
adding at the end the following new chapter:
572
‘‘CHAPTER 112—INFORMATION SECURITY
SCHOLARSHIP PROGRAM
‘‘Sec.
‘‘2200.
Programs; purpose.
‘‘2200a. Scholarship program.
‘‘2200b. Grant program.
‘‘2200c. Centers of Academic Excellence in Information Assurance Education.
‘‘2200d. Regulations.
‘‘2200e. Definitions.
‘‘2200f. Inapplicability to Coast Guard.
‘‘§ 2200. Programs; purpose
‘‘(a) IN GENERAL.—To encourage the recruitment
and retention of Department of Defense personnel who
have the computer and network security skills necessary
to meet Department of Defense information assurance re-
quirements, the Secretary of Defense may carry out pro-
grams in accordance with this chapter to provide financial
support for education in disciplines relevant to those re-
quirements at institutions of higher education.
‘‘(b) TYPES OF PROGRAMS.—The programs author-
ized under this chapter are as follows:
‘‘(1) Scholarships for pursuit of programs of
education in information assurance at institutions of
higher education.
‘‘(2) Grants to institutions of higher education.
‘‘§ 2200a. Scholarship program
‘‘(a) AUTHORITY.—The Secretary of Defense may,
subject to subsection (g), provide financial assistance in
accordance with this section to a person—
573
‘‘(1) who is pursuing an associate, bacca-
laureate, or advanced degree, or a certification, in an
information assurance discipline referred to in sec-
tion 2200(a) of this title at an institution of higher
education; and
‘‘(2) who enters into an agreement with the
Secretary as described in subsection (b).
‘‘(b) SERVICE AGREEMENT FOR SCHOLARSHIP RE-
CIPIENTS.—(1) To receive financial assistance under this
section—
‘‘(A) a member of the armed forces shall enter
into an agreement to serve on active duty in the
member’s armed force for the period of obligated
service determined under paragraph (2);
‘‘(B) an employee of the Department of De-
fense shall enter into an agreement to continue in
the employment of the department for the period of
obligated service determined under paragraph (2);
and
‘‘(C) a person not referred to in subparagraph
(A) or (B) shall enter into an agreement—
‘‘(i) to enlist or accept a commission in one
of the armed forces and to serve on active duty
in that armed force for the period of obligated
service determined under paragraph (2); or
574
‘‘(ii) to accept and continue employment in
the Department of Defense for the period of ob-
ligated service determined under paragraph (2).
‘‘(2) For the purposes of this subsection, the period
of obligated service for a recipient of financial assistance
under this section shall be the period determined by the
Secretary of Defense as being appropriate to obtain ade-
quate service in exchange for the financial assistance and
otherwise to achieve the goals set forth in section 2200(a)
of this title. In no event may the period of service required
of a recipient be less than the period equal to three-fourths
of the total period of pursuit of a degree for which the
Secretary agrees to provide the recipient with financial as-
sistance under this section. The period of obligated service
is in addition to any other period for which the recipient
is obligated to serve on active duty or in the civil service,
as the case may be.
‘‘(3) An agreement entered into under this section by
a person pursuing an academic degree shall include terms
that provide the following:
‘‘(A) That the period of obligated service begins
on a date after the award of the degree that is de-
termined under the regulations prescribed under sec-
tion 2200d of this title.
575
‘‘(B) That the person will maintain satisfactory
academic progress, as determined in accordance with
those regulations, and that failure to maintain such
progress constitutes grounds for termination of the
financial assistance for the person under this sec-
tion.
‘‘(C) Any other terms and conditions that the
Secretary of Defense determines appropriate for car-
rying out this section.
‘‘(c) AMOUNT OF ASSISTANCE.—The amount of the
financial assistance provided for a person under this sec-
tion shall be the amount determined by the Secretary of
Defense as being necessary to pay all educational expenses
incurred by that person, including tuition, fees, cost of
books, laboratory expenses, and expenses of room and
board. The expenses paid, however, shall be limited to
those educational expenses normally incurred by students
at the institution of higher education involved.
‘‘(d) USE OF ASSISTANCE FOR SUPPORT OF INTERN-
SHIPS.—The financial assistance for a person under this
section may also be provided to support internship activi-
ties of the person at the Department of Defense in periods
between the academic years leading to the degree for
which assistance is provided the person under this section.
576
‘‘(e) REFUND
FOR PERIOD
OF UNSERVED OBLI-
GATED SERVICE.—(1) A person who voluntarily termi-
nates service before the end of the period of obligated serv-
ice required under an agreement entered into under sub-
section (b) shall refund to the United States an amount
determined by the Secretary of Defense as being appro-
priate to obtain adequate service in exchange for financial
assistance and otherwise to achieve the goals set forth in
section 2200(a) of this title.
‘‘(2) An obligation to reimburse the United States
imposed under paragraph (1) is for all purposes a debt
owed to the United States.
‘‘(3) The Secretary of Defense may waive, in whole
or in part, a refund required under paragraph (1) if the
Secretary determines that recovery would be against eq-
uity and good conscience or would be contrary to the best
interests of the United States.
‘‘(f) EFFECT OF DISCHARGE IN BANKRUPTCY.—A
discharge in bankruptcy under title 11 that is entered less
than five years after the termination of an agreement
under this section does not discharge the person signing
such agreement from a debt arising under such agreement
or under subsection (e).
‘‘(g) ALLOCATION OF FUNDING.—Not less than 50
percent of the amount available for financial assistance
577
under this section for a fiscal year shall be available only
for providing financial assistance for the pursuit of de-
grees referred to in subsection (a) at institutions of higher
education that have established, improved, or are admin-
istering programs of education in information assurance
under the grant program established in section 2200b of
this title, as determined by the Secretary of Defense.
‘‘§ 2200b. Grant program
‘‘(a) AUTHORITY.—The Secretary of Defense may
provide grants of financial assistance to institutions of
higher education to support the establishment, improve-
ment, or administration of programs of education in infor-
mation assurance disciplines referred to in section 2200(a)
of this title.
‘‘(b) PURPOSES.—The proceeds of grants under this
section may be used by an institution of higher education
for the following purposes:
‘‘(1) Faculty development.
‘‘(2) Curriculum development.
‘‘(3) Laboratory improvements.
‘‘(4) Faculty research in information security.
578
‘‘§ 2200c. Centers of Academic Excellence in Informa-
tion Assurance Education
‘‘In the selection of a recipient for the award of a
scholarship or grant under this chapter, consideration
shall be given to whether—
‘‘(1) in the case of a scholarship, the institution
at which the recipient pursues a degree is a Center
of Academic Excellence in Information Assurance
Education; and
‘‘(2) in the case of a grant, the recipient is a
Center of Academic Excellence in Information As-
surance Education.
‘‘§ 2200d. Regulations
‘‘The Secretary of Defense shall prescribe regulations
for the administration of this chapter.
‘‘§ 2200e. Definitions
‘‘In this chapter:
‘‘(1) The term ‘information assurance’ includes
the following:
‘‘(A) Computer security.
‘‘(B) Network security.
‘‘(C) Any other information technology
that the Secretary of Defense considers related
to information assurance.
579
‘‘(2) The term ‘institution of higher education’
has the meaning given the term in section 101 of the
Higher Education Act of 1965 (20 U.S.C. 1001).
‘‘(3) The term ‘Center of Academic Excellence
in Information Assurance Education’ means an in-
stitution of higher education that is designated by
the Director of the National Security Agency as a
Center of Academic Excellence in Information As-
surance Education.
‘‘§ 2200f. Inapplicability to Coast Guard
‘‘This chapter does not apply to the Coast Guard
when it is not operating as a service in the Navy.’’.
(2) The tables of chapters at the beginning of subtitle
A of title 10, United States Code, and the beginning of
part III of such subtitle are amended by inserting after
the item relating to chapter 111 the following new item:
‘‘112. Information Security Scholarship Program ................................... 2200’’.
(b) FUNDING.—Of the amount authorized to be ap-
propriated by section 301(5), $15,000,000 shall be avail-
able for carrying out chapter 112 of title 10, United States
Code (as added by subsection (a)).
(c) REPORT.—Not later than April 1, 2001, the Sec-
retary of Defense shall submit to the congressional defense
committees a plan for implementing the programs under
chapter 112 of title 10, United States Code.
580
Subtitle D—Reports
SEC. 931. DATE OF SUBMITTAL OF REPORTS ON SHORT-
FALLS IN EQUIPMENT PROCUREMENT AND
MILITARY 
CONSTRUCTION 
FOR 
THE 
RE-
SERVE COMPONENTS IN FUTURE-YEARS DE-
FENSE PROGRAMS.
Section 10543(c) of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(3) A report required under paragraph (1) for a fis-
cal year shall be submitted not later than 15 days after
the date on which the President submits to Congress the
budget for such fiscal year under section 1105(a) of title
31.’’.
SEC. 932. REPORT ON NUMBER OF PERSONNEL ASSIGNED
TO LEGISLATIVE LIAISON FUNCTIONS.
(a) REPORT.—Not later than December 1, 2000, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report
setting forth the number of personnel of the Department
of Defense performing legislative liaison functions as of
April 1, 2000.
(b) MATTERS TO BE INCLUDED.—The report shall
include the following:
581
(1) The number of military and civilian per-
sonnel of the Department of Defense assigned to
full-time legislative liaison functions, shown by orga-
nizational entity and by pay grade.
(2) The number of military and civilian per-
sonnel of the Department not covered by paragraph
(1) (other than personnel described in subsection
(e)) who perform legislative liaison functions as part
of their assigned duties, shown by organizational en-
tity and by pay grade.
(c) LEGISLATIVE LIAISON FUNCTIONS.—For pur-
poses of this section, a legislative liaison function is a
function (regardless of how characterized within the De-
partment of Defense) that has been established or des-
ignated to principally provide advice, information, and as-
sistance to the legislative branch on Department of De-
fense policies, plans, and programs.
(d) ORGANIZATIONAL ENTITIES.—The display of in-
formation under subsection (b) by organizational entity
shall be for the Department of Defense and for each mili-
tary department as a whole and separately for each orga-
nization at the level of major command or Defense Agency
or higher.
(e) PERSONNEL NOT COVERED.—Subsection (b)(2)
does not apply to civilian officers appointed by the Presi-
582
dent, by and with the advice and consent of the Senate,
or to general or flag officers.
SEC. 933. JOINT REPORT ON ESTABLISHMENT OF NA-
TIONAL 
COLLABORATIVE 
INFORMATION
ANALYSIS CAPABILITY.
(a) REPORT.—Not later than March 1, 2000, the
Secretary of Defense and the Director of Central Intel-
ligence shall submit to the congressional defense commit-
tees and the congressional intelligence committees a joint
report assessing alternatives for the establishment of a na-
tional collaborative information analysis capability. The
report shall include the following:
(1) An assessment of alternative architectures
to establish a national collaborative information
analysis capability to conduct data mining and
profiling of information from a wide array of elec-
tronic data sources.
(2) Identification, from among the various ar-
chitectures assessed under paragraph (1), of the pre-
ferred architecture and a detailed description of that
architecture and of a program to acquire and imple-
ment the capability that would be provided through
that architecture.
(3) A detailed explanation of how the personal
information resulting from the data mining and
583
profiling capability developed under the preferred ar-
chitecture will be employed consistent with the re-
quirements of section 552a of title 5, United States
Code
(b) COMPLETION AND USE OF ARMY LAND INFOR-
MATION
WARFARE
ACTIVITY.—The 
Secretary 
of
Defense—
(1) shall ensure that the data mining, profiling,
and analysis capability of the Army’s Land Informa-
tion Warfare Activity is completed and is fully oper-
ational as soon as possible; and
(2) shall make appropriate use of that capa-
bility to provide support to all appropriate national
defense components.
SEC. 934. NETWORK CENTRIC WARFARE.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Joint Vision 2020 set the goal for the De-
partment of Defense to pursue information superi-
ority in order that joint forces may possess superior
knowledge and attain decision superiority during op-
erations across the spectrum of conflict.
(2) One concept being pursued to attain infor-
mation superiority is known as Network Centric
Warfare. The concept of Network Centric Warfare
584
links sensors, communications systems and weapons
systems in an interconnected grid that allows for a
seamless information flow to warfighters, policy
makers, and support personnel.
(3) The Joint Staff, the Defense Agencies, and
the military departments are all pursuing various
concepts related to Network Centric Warfare.
(b) GOAL.—It shall be the goal of Department of De-
fense to fully coordinate various efforts being pursued by
the Joint Staff, the Defense Agencies, and the military
departments as they develop the concept of Network Cen-
tric Warfare.
(c) REPORT ON NETWORK CENTRIC WARFARE.—(1)
The Secretary of Defense shall submit to the congressional
defense committees a report on the development and im-
plementation of network centric warfare concepts within
the Department of Defense. The report shall be prepared
in consultation with the Chairman of the Joint Chiefs of
Staff.
(2) The report shall include the following:
(A) A clear definition and terminology to de-
scribe the set of operational concepts referred to as
‘‘network centric warfare’’.
(B) An identification and description of the cur-
rent and planned activities by the Office of the Sec-
585
retary of Defense, the Joint Chiefs of Staff, and the
United States Joint Forces Command relating to
network centric warfare.
(C) A discussion of how the concept of network
centric warfare is related to the strategy of trans-
formation as outlined in the document entitled
‘‘Joint Vision 2020’’, along with the advantages and
disadvantages of pursing that concept.
(D) A discussion on how the Department is im-
plementing the concepts of network centric warfare
as it relates to information superiority and decision
superiority articulated in ‘‘Joint Vision 2020.’’
(E) An identification and description of the cur-
rent and planned activities of each of the Armed
Forces relating to network centric warfare.
(F) A discussion on how the Department plans
to attain a fully integrated, joint command, control,
communications, computers, intelligence, surveil-
lance, and reconnaissance (C4ISR) capability.
(G) A description of the joint requirements
under development that will lead to the acquisition
of technologies for enabling network centric warfare
and whether those joint requirements are modifying
existing service requirements and vision statements.
586
(H) A discussion of how Department of Defense
activities to establish a joint network centric capa-
bility are coordinated with other departments and
agencies of the United States and with United
States allies.
(I) A discussion of the coordination of the
science and technology investments of the military
departments and Defense Agencies in the develop-
ment of future joint network centric warfare capa-
bilities.
(J) The methodology being used to measure
progress toward stated goals.
(d) STUDY ON THE USE OF JOINT EXPERIMEN-
TATION FOR DEVELOPING NETWORK CENTRIC WARFARE
CONCEPTS.—(1) The Secretary of Defense shall conduct
a study on the present and future use of the joint experi-
mentation program of the Department of Defense in the
development of network centric warfare concepts.
(2) The Secretary shall submit to the congressional
defense committees a report on the results of the study.
The report shall include the following:
(A) A survey of and description of how experi-
mentation under the joint experimentation at United
States Joint Forces Command is being used for
587
evaluating emerging concepts in network centric
warfare.
(B) A survey of and description of how experi-
mentation under the joint experimentation of each of
the armed services are being used for evaluating
emerging concepts in network centric warfare.
(C) A description of any emerging concepts and
recommendations developed by those experiments,
with special emphasis on force structure implica-
tions.
(3) The Secretary of Defense, acting through the
Chairman of the Joint Chief of Staff, shall designate the
Commander in Chief of the United States Joint Forces
Command to carry out the study and prepare the report
required under this subsection.
(e) TIME FOR SUBMISSION OF REPORTS.—Each re-
port required under this section shall be submitted not
later than March 1, 2001.
SEC. 935. REPORT ON AIR FORCE INSTITUTE OF TECH-
NOLOGY.
(a) REPORT REQUIRED.—Not later than September
30, 2001, the Secretary of the Air Force shall submit to
the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Represent-
atives a report on the roles and missions, organizational
588
structure, funding, and operations of the Air Force Insti-
tute of Technology as projected through 2010.
(b) MATTERS TO BE INCLUDED.—The report shall
provide—
(1) a statement of the Institute’s roles and mis-
sions through 2010 in meeting the critical scientific
and educational requirements of the Air Force;
(2) a statement of the strategic priorities for
the Institute in meeting long-term core science and
technology educational needs of the Air Force; and
(3) a plan for the near-term increase in the pro-
duction by the Institute of masters and doctoral de-
gree graduates.
(c) RECOMMENDATIONS TO BE PROVIDED.—Based
on the matters determined for purposes of subsection (b),
the report shall include recommendations of the Secretary
of the Air Force with respect to the following:
(1) The grade of the Commandant of the Insti-
tute.
(2) The chain of command of the Commandant
within the Air Force.
(3) The employment and compensation of civil-
ian professors at the Institute.
(4) The processes for the identification of re-
quirements for personnel with advanced degrees
589
within the Air Force and identification and selection
of candidates for annual enrollment at the Institute.
(5) Postgraduation opportunities within the Air
Force for graduates of the Institute.
(6) The policies and practices regarding the ad-
mission to the Institute of—
(A) officers of the Army, Navy, Marine
Corps, and Coast Guard;
(B) employees of the Department of the
Army, Department of the Navy, and Depart-
ment of Transportation;
(C) personnel of the military forces of for-
eign countries;
(D) enlisted members of the Armed
Forces; and
(E) other persons eligible for admission.
(7) Near- and long-term funding of the insti-
tute.
(8) Opportunities for cooperation, collaboration,
and joint endeavors with other military and civilian
scientific and technical educational institutions for
the production of qualified personnel to meet De-
partment of Defense scientific and technical require-
ments.
590
(d) CONSULTATION.—The report shall be prepared in
consultation with the Chief of Staff of the Air Force and
the Commander of the Air Force Materiel Command.
Subtitle E—Other Matters
SEC. 941. FLEXIBILITY IN IMPLEMENTATION OF LIMITA-
TION ON MAJOR DEPARTMENT OF DEFENSE
HEADQUARTERS ACTIVITIES PERSONNEL.
Section 130a of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(g) FLEXIBILITY.—(1) If during fiscal year 2001 or
fiscal year 2002 the Secretary of Defense determines, and
certifies to Congress, that the limitation under subsection
(a), or a limitation under subsection (b), would adversely
affect United States national security, the Secretary may
take any of the following actions:
‘‘(A) Increase the percentage specified in sub-
section (b)(1) by such amount as the Secretary de-
termines necessary or waive the limitation under
that subsection.
‘‘(B) Increase the percentage specified in sub-
section (b)(2) by such amount as the Secretary de-
termines necessary, not to exceed a cumulative in-
crease of 7.5 percentage points.
591
‘‘(C) Increase the percentage specified in sub-
section (a) by such amount as the Secretary deter-
mines necessary, not to exceed a cumulative increase
of 7.5 percentage points.
‘‘(2) Any certification under paragraph (1) shall in-
clude notice of the specific waiver or increases made pur-
suant to the authority provided in that paragraph.’’.
SEC. 942. CONSOLIDATION OF CERTAIN NAVY GIFT FUNDS.
(a) MERGER OF NAVAL HISTORICAL CENTER FUND
INTO
DEPARTMENT
OF
THE
NAVY
GENERAL
GIFT
FUND.—(1) The Secretary of the Navy shall transfer all
amounts in the Naval Historical Center Fund maintained
under section 7222 of title 10, United States Code, to the
Department of the Navy General Gift Fund maintained
under section 2601 of such title. Upon completing the
transfer, the Secretary shall close the Naval Historical
Center Fund.
(2) Amounts transferred to the Department of the
Navy General Gift Fund under this subsection shall be
merged with other amounts in that Fund and shall be
available for the purposes for which amounts in that Fund
are available.
(b) CONSOLIDATION OF NAVAL ACADEMY GENERAL
GIFT FUND AND NAVAL ACADEMY MUSEUM FUND.—(1)
The Secretary of the Navy shall transfer all amounts in
592
the United States Naval Academy Museum Fund estab-
lished by section 6974 of title 10, United States Code, to
the gift fund maintained for the benefit and use of the
United States Naval Academy under section 6973 of such
title. Upon completing the transfer, the Secretary shall
close the United States Naval Academy Museum Fund.
(2) Amounts transferred under this subsection shall
be merged with other amounts in the gift fund to which
transferred and shall be available for the purposes for
which amounts in that gift fund are available.
(c) CONSOLIDATION AND REVISION OF AUTHORITIES
FOR ACCEPTANCE OF GIFTS, BEQUESTS, AND LOANS FOR
THE UNITED STATES NAVAL ACADEMY.—(1) Subsection
(a) of section 6973 of title 10, United States Code, is
amended—
(A) in the first sentence—
(i) by striking ‘‘gifts and bequests of per-
sonal property’’ and inserting ‘‘any gift or be-
quest of personal property, and may accept,
hold, and administer any loan of personal prop-
erty other than money, that is’’; and
(ii) by inserting ‘‘or the Naval Academy
Museum, its collection, or its services’’ before
the period at the end;
593
(B) in the second sentence, by striking
‘‘ ‘United States Naval Academy general gift fund’ ’’
and inserting ‘‘ ‘United States Naval Academy Gift
and Museum Fund’ ’’; and
(C) in the third sentence, by inserting ‘‘(includ-
ing the Naval Academy Museum)’’ after ‘‘the Naval
Academy’’.
(2) Such section is further amended—
(A) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(B) by inserting after subsection (a) the fol-
lowing new subsection (b):
‘‘(b) The Secretary shall prescribe written guidelines
to be used for determinations of whether the acceptance
of money, any personal property, or any loan of personal
property under subsection (a) would reflect unfavorably on
the ability of the Department of the Navy or any officer
or employee of the Department of the Navy to carry out
responsibilities or duties in a fair and objective manner,
or would compromise either the integrity or the appear-
ance of the integrity of any program of the Department
of the Navy or any officer or employee of the Department
of the Navy who is involved in any such program.’’.
(3) Subsection (d) of such section, as redesignated
by paragraph (2)(A), is amended by striking ‘‘United
594
States Naval Academy general gift fund’’ both places it
appears and inserting ‘‘United States Naval Academy Gift
and Museum Fund’’.
(4) The heading for such section is amended to read
as follows:
‘‘§ 6973. Gifts, bequests, and loans of property: accept-
ance for benefit and use of Naval Acad-
emy’’.
(d) REFERENCES
TO CLOSED GIFT FUNDS.—(1)
Section 6974 of title 10, United States Code, is amended
to read as follows:
‘‘§ 6974. United States Naval Academy Museum Fund:
references to Fund
‘‘Any reference in a law, regulation, document, paper,
or other record of the United States to the United States
Naval Academy Museum Fund formerly maintained under
this section shall be deemed to refer to the United States
Naval Academy Gift and Museum Fund maintained under
section 6973 of this title.’’.
(2) Section 7222 of such title is amended to read as
follows:
‘‘§ 7222. Naval Historical Center Fund: references to
Fund
‘‘Any reference in a law, regulation, document, paper,
or other record of the United States to the Naval Histor-
595
ical Center Fund formerly maintained under this section
shall be deemed to refer to the Department of the Navy
General Gift Fund maintained under section 2601 of this
title.’’.
(e) CLERICAL AMENDMENTS.—(1) The table of sec-
tions at the beginning of chapter 603 of title 10, United
States Code, is amended by striking the items relating to
sections 6973 and 6974 and inserting the following:
‘‘6973. Gifts, bequests, and loans of property: acceptance for benefit and use
of Naval Academy.
‘‘6974. United States Naval Academy Museum Fund: references to Fund.’’.
(2) The item relating to section 7222 of such title
in the table of sections at the beginning of chapter 631
of such title is amended to read as follows:
‘‘7222. Naval Historical Center Fund: references to Fund.’’.
SEC. 943. TEMPORARY AUTHORITY TO DISPOSE OF A GIFT
PREVIOUSLY ACCEPTED FOR THE NAVAL
ACADEMY.
Notwithstanding section 6973 of title 10, United
States Code, during fiscal year 2001 the Secretary of the
Navy may dispose of a gift accepted before the date of
the enactment of this Act for the United States Naval
Academy by disbursing from the United States Naval
Academy general gift fund to an entity designated by the
donor of the gift the amount equal to the current cash
value of that gift.
596
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Incorporation of classified annex.
Sec. 1003. Authorization of emergency supplemental appropriations for fiscal
year 2000.
Sec. 1004. United States contribution to NATO common-funded budgets in fis-
cal year 2001.
Sec. 1005. Limitation on funds for Bosnia and Kosovo peacekeeping operations
for fiscal year 2001.
Sec. 1006. Requirement for prompt payment of contract vouchers.
Sec. 1007. Plan for prompt recording of obligations of funds for contractual
transactions.
Sec. 1008. Electronic submission and processing of claims for contract pay-
ments.
Sec. 1009. Administrative offsets for overpayment of transportation costs.
Sec. 1010. Interest penalties for late payment of interim payments due under
Government service contracts.
Subtitle B—Naval Vessels and Shipyards
Sec. 1011. Revisions to national defense features program.
Sec. 1012. Sense of Congress on the naming of the CVN–77 aircraft carrier.
Sec. 1013. Authority to transfer naval vessels to certain foreign countries.
Sec. 1014. Authority to consent to retransfer of alternative former naval vessel
by Government of Greece.
Subtitle C—Counter-Drug Activities
Sec. 1021. Extension of authority to provide support for counter-drug activities
of Colombia.
Sec. 1022. Report on Department of Defense expenditures to support foreign
counter-drug activities.
Sec. 1023. Recommendations on expansion of support for counter-drug activi-
ties.
Sec. 1024. Review of riverine counter-drug program.
Sec. 1025. Report on tethered aerostat radar system.
Sec. 1026. Sense of Congress regarding use of Armed Forces for counter-drug
and counter-terrorism activities.
Subtitle D—Counterterrorism and Domestic Preparedness
Sec. 1031. Preparedness of military installation first responders for incidents
involving weapons of mass destruction.
Sec. 1032. Additional weapons of mass destruction civil support teams.
Sec. 1033. Authority to provide loan guarantees to improve domestic prepared-
ness to combat cyberterrorism.
Sec. 1034. Report on the status of domestic preparedness against the threat of
biological terrorism.
Sec. 1035 Report on strategy, policies, and programs to combat domestic ter-
rorism.
Subtitle E—Strategic Forces
597
Sec. 1041. Revised nuclear posture review.
Sec. 1042. Plan for the long-term sustainment and modernization of United
States strategic nuclear forces.
Sec. 1043. Modification of scope of waiver authority for limitation on retire-
ment or dismantlement of strategic nuclear delivery systems.
Sec. 1044. Report on the defeat of hardened and deeply buried targets.
Sec. 1045. Sense of Congress on the maintenance of the strategic nuclear triad.
Subtitle F—Miscellaneous Reporting Requirements
Sec. 1051. Management review of working-capital fund activities.
Sec. 1052. Report on submarine rescue support vessels.
Sec. 1053. Report on Federal Government progress in developing information
assurance strategies.
Sec. 1054. Department of Defense process for decisionmaking in cases of false
claims.
Subtitle G—Government Information Security Reform
Sec. 1061. Coordination of Federal information policy.
Sec. 1062. Responsibilities of certain agencies.
Sec. 1063. Relationship of Defense Information Assurance Program to Govern-
ment-wide information security program.
Sec. 1064. Technical and conforming amendments.
Sec. 1065. Effective date.
Subtitle H—Security Matters
Sec. 1071. Limitation on granting of security clearances.
Sec. 1072. Process for prioritizing background investigations for security clear-
ances for Department of Defense personnel and defense con-
tractor personnel.
Sec. 1073. Authority to withhold certain sensitive information from public dis-
closure.
Sec. 1074. Expansion of authority to exempt geodetic products of the Depart-
ment of Defense from public disclosure.
Sec. 1075. Expenditures for declassification activities.
Sec. 1076. Enhanced access to criminal history record information for national
security and other purposes
Sec. 1077. Two-year extension of authority to engage in commercial activities
as security for intelligence collection activities.
Sec. 1078. Coordination of nuclear weapons secrecy policies and consideration
of health of workers at former Department of Defense nuclear
facilities.
Subtitle I—Other Matters
Sec. 1081. Funds for administrative expenses under Defense Export Loan
Guarantee program.
Sec. 1082. Transit pass program for Department of Defense personnel in poor
air quality areas.
Sec. 1083. Transfer of Vietnam era TA–4 aircraft to nonprofit foundation.
Sec. 1084. Transfer of 19th century cannon to museum.
Sec. 1085. Fees for providing historical information to the public.
Sec. 1086. Grants to American Red Cross for Armed Forces emergency serv-
ices.
Sec. 1087. Technical and clerical amendments.
598
Sec. 1088. Maximum size of parcel post packages transported overseas for
Armed Forces post offices.
Sec. 1089. Sense of Congress regarding tax treatment of members receiving
special pay for duty subject to hostile fire or imminent danger.
Sec. 1090. Organization and management of Civil Air Patrol.
Sec. 1091. Additional duties for Commission to Assess United States National
Security Space Management and Organization.
Sec. 1092. Commission on the Future of the United States Aerospace Industry.
Sec. 1093. Drug addiction treatment.
Subtitle A—Financial Matters
SEC. 1001. TRANSFER AUTHORITY.
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—
(1) Upon determination by the Secretary of Defense that
such action is necessary in the national interest, the Sec-
retary may transfer amounts of authorizations made avail-
able to the Department of Defense in this division for fis-
cal year 2001 between any such authorizations for that
fiscal year (or any subdivisions thereof). Amounts of au-
thorizations so transferred shall be merged with and be
available for the same purposes as the authorization to
which transferred.
(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section
may not exceed $2,000,000,000.
(b) LIMITATIONS.—The authority provided by this
section to transfer authorizations—
(1) may only be used to provide authority for
items that have a higher priority than the items
from which authority is transferred; and
599
(2) may not be used to provide authority for an
item that has been denied authorization by Con-
gress.
(c) EFFECT
ON
AUTHORIZATION
AMOUNTS.—A
transfer made from one account to another under the au-
thority of this section shall be deemed to increase the
amount authorized for the account to which the amount
is transferred by an amount equal to the amount trans-
ferred.
(d) NOTICE
TO CONGRESS.—The Secretary shall
promptly notify Congress of each transfer made under
subsection (a).
SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.
(a) STATUS OF CLASSIFIED ANNEX.—The Classified
Annex prepared by the committee of conference to accom-
pany the conference report on the bill H.R. 4205 of the
One Hundred Sixth Congress and transmitted to the
President is hereby incorporated into this Act.
(b) CONSTRUCTION WITH OTHER PROVISIONS OF
ACT.—The amounts specified in the Classified Annex are
not in addition to amounts authorized to be appropriated
by other provisions of this Act.
(c) LIMITATION ON USE OF FUNDS.—Funds appro-
priated pursuant to an authorization contained in this Act
that are made available for a program, project, or activity
600
referred to in the Classified Annex may only be expended
for such program, project, or activity in accordance with
such terms, conditions, limitations, restrictions, and re-
quirements as are set out for that program, project, or
activity in the Classified Annex.
(d) DISTRIBUTION
OF CLASSIFIED ANNEX.—The
President shall provide for appropriate distribution of the
Classified Annex, or of appropriate portions of the annex,
within the executive branch of the Government.
SEC. 1003. AUTHORIZATION OF EMERGENCY SUPPLE-
MENTAL APPROPRIATIONS FOR FISCAL YEAR
2000.
Amounts authorized to be appropriated to the De-
partment of Defense for fiscal year 2000 in the National
Defense Authorization Act for Fiscal Year 2000 (Public
Law 106–65) are hereby adjusted, with respect to any
such authorized amount, by the amount by which appro-
priations pursuant to such authorization were increased
(by a supplemental appropriation) or decreased (by a re-
scission), or both, in the Emergency Supplemental Act,
2000 (division B of Public Law 106–246) or in title IX
of the Department of Defense Appropriations Act, 2001
(Public Law 106–259).
601
SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COM-
MON-FUNDED BUDGETS IN FISCAL YEAR 2001.
(a) FISCAL YEAR 2001 LIMITATION.—The total
amount contributed by the Secretary of Defense in fiscal
year 2001 for the common-funded budgets of NATO may
be any amount up to, but not in excess of, the amount
specified in subsection (b) (rather than the maximum
amount that would otherwise be applicable to those con-
tributions under the fiscal year 1998 baseline limitation).
(b) TOTAL AMOUNT.—The amount of the limitation
applicable under subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of
the end of fiscal year 2000, of funds appropriated
for fiscal years before fiscal year 2001 for payments
for those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions au-
thorized to be made under section 2501.
(c) AUTHORIZED AMOUNTS.—Amounts authorized to
be appropriated by titles II and III of this Act are avail-
able for contributions for the common-funded budgets of
NATO as follows:
(1) Of the amount provided in section 201(1),
$743,000 for the Civil Budget.
602
(2) Of the amount provided in section 301(1),
$181,981,000 for the Military Budget.
(d) DEFINITIONS.—For purposes of this section:
(1) COMMON-FUNDED
BUDGETS
OF
NATO.—
The term ‘‘common-funded budgets of NATO’’
means the Military Budget, the Security Investment
Program, and the Civil Budget of the North Atlantic
Treaty Organization (and any successor or addi-
tional account or program of NATO).
(2) FISCAL YEAR 1998 BASELINE LIMITATION.—
The term ‘‘fiscal year 1998 baseline limitation’’
means the maximum annual amount of Department
of Defense contributions for common-funded budgets
of NATO that is set forth as the annual limitation
in section 3(2)(C)(ii) of the resolution of the Senate
giving the advice and consent of the Senate to the
ratification of the Protocols to the North Atlantic
Treaty of 1949 on the Accession of Poland, Hun-
gary, and the Czech Republic (as defined in section
4(7) of that resolution), approved by the Senate on
April 30, 1998.
603
SEC. 1005. LIMITATION ON FUNDS FOR BOSNIA AND
KOSOVO PEACEKEEPING OPERATIONS FOR
FISCAL YEAR 2001.
(a) LIMITATION.—Of the amounts authorized to be
appropriated by section 301(24) for the Overseas Contin-
gency Operations Transfer Fund—
(1) no more than $1,387,800,000 may be obli-
gated for incremental costs of the Armed Forces for
Bosnia peacekeeping operations; and
(2) no more than $1,650,400,000 may be obli-
gated for incremental costs of the Armed Forces for
Kosovo peacekeeping operations.
(b) PRESIDENTIAL WAIVER.—The President may
waive the limitation in subsection (a)(1), or the limitation
in subsection (a)(2), after submitting to Congress the fol-
lowing:
(1) The President’s written certification that
the waiver is necessary in the national security inter-
ests of the United States.
(2) The President’s written certification that
exercising the waiver will not adversely affect the
readiness of United States military forces.
(3) A report setting forth the following:
(A) The reasons that the waiver is nec-
essary in the national security interests of the
United States.
604
(B) The specific reasons that additional
funding is required for the continued presence
of United States military forces participating
in, or supporting, Bosnia peacekeeping oper-
ations, or Kosovo peacekeeping operations, as
the case may be, for fiscal year 2001.
(C) A discussion of the impact on the mili-
tary readiness of United States Armed Forces
of the continuing deployment of United States
military forces participating in, or supporting,
Bosnia peacekeeping operations, or Kosovo
peacekeeping operations, as the case may be.
(4) A supplemental appropriations request for
the Department of Defense for such amounts as are
necessary for the additional fiscal year 2001 costs
associated with United States military forces partici-
pating in, or supporting, Bosnia or Kosovo peace-
keeping operations.
(c) PEACEKEEPING OPERATIONS DEFINED.—For the
purposes of this section:
(1) The term ‘‘Bosnia peacekeeping operations’’
has the meaning given such term in section 1004(e)
of the Strom Thurmond National Defense Author-
ization Act for Fiscal Year 1999 (Public Law 105–
261; 112 Stat. 2112).
605
(2) 
The 
term 
‘‘Kosovo 
peacekeeping
operations’’—
(A) means the operation designated as Op-
eration Joint Guardian and any other operation
involving the participation of any of the Armed
Forces in peacekeeping or peace enforcement
activities in and around Kosovo; and
(B) includes, with respect to Operation
Joint Guardian or any such other operation,
each activity that is directly related to the sup-
port of the operation.
SEC. 1006. REQUIREMENT FOR PROMPT PAYMENT OF CON-
TRACT VOUCHERS.
(a) REQUIREMENT.—(1) Chapter 131 of title 10,
United States Code, is amended by adding after section
2225, as added by section 812(a)(1), the following new
section:
‘‘§ 2226. Contracted property and services: prompt
payment of vouchers
‘‘(a) REQUIREMENT.—Of the contract vouchers that
are received by the Defense Finance and Accounting Serv-
ice by means of the mechanization of contract administra-
tion services system, the number of such vouchers that re-
main unpaid for more than 30 days as of the last day
of each month may not exceed 5 percent of the total num-
606
ber of the contract vouchers so received that remain un-
paid on that day.
‘‘(b) CONTRACT VOUCHER DEFINED.—In this sec-
tion, the term ‘contract voucher’ means a voucher or in-
voice for the payment to a contractor for services, commer-
cial items (as defined in section 4(12) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(12))), or
other deliverable items provided by the contractor under
a contract funded by the Department of Defense.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
section 2225, as added by section 812(a)(2), the following
new item:
‘‘2226. Contracted property and services: prompt payment of vouchers.’’.
(b) EFFECTIVE DATE.—Section 2226 of title 10,
United States Code (as added by subsection (a)), shall
take effect on December 1, 2000.
(c) CONDITIONAL REQUIREMENT FOR REPORT.—(1)
If for any month of the noncompliance reporting period
the requirement in section 2226 of title 10, United States
Code (as added by subsection (a)), is not met, the Sec-
retary of Defense shall submit to the Committee on Armed
Services of the Senate and the Committee on Armed Serv-
ices of the House of Representatives a report on the mag-
nitude of the unpaid contract vouchers. The report for a
607
month shall be submitted not later than 30 days after the
end of that month.
(2) A report for a month under paragraph (1) shall
include information current as of the last day of the month
as follows:
(A) The number of the vouchers received by the
Defense Finance and Accounting Service by means
of the mechanization of contract administration
services system during each month.
(B) The number of the vouchers so received,
whenever received by the Defense Finance and Ac-
counting Service, that remain unpaid for each of the
following periods:
(i) Over 30 days and not more than 60
days.
(ii) Over 60 days and not more than 90
days.
(iii) More than 90 days.
(C) The number of the vouchers so received
that remain unpaid for the major categories of pro-
curements, as defined by the Secretary of Defense.
(D) The corrective actions that are necessary,
and those that are being taken, to ensure compliance
with the requirement in subsection (a).
(3) For purposes of this subsection:
608
(A) The term ‘‘noncompliance reporting period’’
means the period beginning on December 1, 2000,
and ending on November 30, 2004.
(B) The term ‘‘contract voucher’’ has the mean-
ing given that term in section 2226(b) of title 10,
United States Code (as added by subsection (a)).
SEC. 1007. PLAN FOR PROMPT RECORDING OF OBLIGA-
TIONS OF FUNDS FOR CONTRACTUAL TRANS-
ACTIONS.
(a) REQUIREMENT FOR PLAN.—The Secretary of De-
fense shall submit to the Committees on Armed Services
of the Senate and the House of Representatives, not later
than November 15, 2000, a plan for ensuring that each
obligation of the Department of Defense under a trans-
action described in subsection (c) be recorded in the ap-
propriate financial administration systems of the Depart-
ment of Defense not later than 10 days after the date on
which the obligation is incurred.
(b) CONTENT OF PLAN.—The plan under subsection
(a) shall provide for the following:
(1) The recording of obligations in accordance
with requirements that apply uniformly throughout
the Department of Defense, including requirements
for the recording of detailed data on each such obli-
gation.
609
(2) A system of accounting classification ref-
erence numbers for the recording of obligations that
applies uniformly throughout the Department of De-
fense.
(3) A discussion of how the plan is to be imple-
mented, including a schedule for implementation.
(c) COVERED TRANSACTIONS.—The plan shall apply
to each obligation under any of the following transactions
of the Department of Defense:
(1) A contract.
(2) A grant.
(3) A cooperative agreement.
(4) A transaction authorized under section
2371 of title 10, United States Code.
SEC. 1008. ELECTRONIC SUBMISSION AND PROCESSING OF
CLAIMS FOR CONTRACT PAYMENTS.
(a) REQUIREMENTS.—(1) Chapter 131 of title 10,
United States Code, is amended by adding after section
2226, as added by section 1006(a)(1), the following new
section:
‘‘§ 2227. Electronic submission and processing of
claims for contract payments
‘‘(a) SUBMISSION OF CLAIMS.—The Secretary of De-
fense shall require that any claim for payment under a
610
Department of Defense contract shall be submitted to the
Department of Defense in electronic form.
‘‘(b) PROCESSING.—A contracting officer, contract
administrator, certifying official, or other officer or em-
ployee of the Department of Defense who receives a claim
for payment in electronic form in accordance with sub-
section (a) and is required to transmit the claim to any
other officer or employee of the Department of Defense
for processing under procedures of the department shall
transmit the claim and any additional documentation nec-
essary to support the determination and payment of the
claim to such other officer or employee electronically.
‘‘(c) WAIVER AUTHORITY.—If the Secretary of De-
fense determines that the requirement for using electronic
means for submitting claims under subsection (a), or for
transmitting claims and supporting documentation under
subsection (b), is unduly burdensome in any category of
cases, the Secretary may exempt the cases in that category
from the application of the requirement.
‘‘(d) IMPLEMENTATION OF REQUIREMENTS.—In im-
plementing subsections (a) and (b), the Secretary of De-
fense shall provide for the following:
‘‘(1) Policies, requirements, and procedures for
using electronic means for the submission of claims
for payment to the Department of Defense and for
611
the transmission, between Department of Defense
officials, of claims for payment received in electronic
form, together with supporting documentation (such
as receiving reports, contracts and contract modi-
fications, and required certifications).
‘‘(2) The format in which information can be
accepted by the corporate database of the Defense
Finance and Accounting Service.
‘‘(3) The requirements to be included in con-
tracts regarding the electronic submission of claims
for payment by contractors.
‘‘(e) CLAIM FOR PAYMENT DEFINED.—In this sec-
tion, the term ‘claim for payment’ means an invoice or
any other demand or request for payment.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding after the item relating to
section 2226, as added by section 1006(a)(2), the fol-
lowing new item:
‘‘2227. Electronic submission and processing of claims for contract payments.’’.
(b) IMPLEMENTATION PLAN.—Not later than March
30, 2001, the Secretary of Defense shall submit to the
Committees on Armed Services of the Senate and the
House of Representatives a plan for the implementation
of the requirements imposed under section 2227 of title
10, United States Code (as added by subsection (a)). The
612
plan shall provide for each of the matters specified in sub-
section (d) of that section.
(c) APPLICABILITY.—(1) Subject to paragraph (2),
the Secretary of Defense shall apply section 2227 of title
10, United States Code (as added by subsection (a)), with
respect to contracts for which solicitations of offers are
issued after June 30, 2001.
(2)(A) The Secretary may delay the implementation
of section 2227 to a date after June 30, 2001, upon a
finding that it is impracticable to implement that section
until that later date. In no event, however, may the imple-
mentation be delayed to a date after October 1, 2002.
(B) Upon determining to delay the implementation
of such section 2227 to a later date under subparagraph
(A), the Secretary shall promptly publish a notice of the
delay in the Federal Register. The notice shall include a
specification of the later date on which the implementation
of that section is to begin. Not later than 30 days before
the later implementation date, the Secretary shall publish
in the Federal Register another notice that such section
is being implemented beginning on that date.
613
SEC. 1009. ADMINISTRATIVE OFFSETS FOR OVERPAYMENT
OF TRANSPORTATION COSTS.
(a) OFFSETS FOR OVERPAYMENTS OR LIQUIDATED
DAMAGES.—(1) Section 2636 of title 10, United States
Code, is amended to read as follows:
‘‘§ 2636. Deductions from amounts due carriers
‘‘(a) AMOUNTS FOR LOSS OR DAMAGE.—An amount
deducted from an amount due a carrier shall be credited
as follows:
‘‘(1) If deducted because of loss of or damage
to material in transit for a military department, the
amount shall be credited to the proper appropria-
tion, account, or fund from which the same or simi-
lar material may be replaced.
‘‘(2) If deducted as an administrative offset for
an overpayment previously made to the carrier under
any Department of Defense contract for transpor-
tation services or as liquidated damages due under
any such contract, the amount shall be credited to
the appropriation or account from which payments
for the transportation services were made.
‘‘(b) SIMPLIFIED OFFSET
FOR COLLECTION
OF
CLAIMS NOT IN EXCESS OF THE SIMPLIFIED ACQUISI-
TION THRESHOLD.—(1) In any case in which the total
amount of a claim for the recovery of overpayments or
liquidated damages under a contract described in sub-
614
section (a)(2) does not exceed the simplified acquisition
threshold, the Secretary of Defense or the Secretary con-
cerned, in exercising the authority to collect the claim by
administrative offset under section 3716 of title 31, may
apply paragraphs (2) and (3) of subsection (a) of that sec-
tion with respect to that collection after (rather than be-
fore) the claim is so collected.
‘‘(2) Regulations prescribed by the Secretary of De-
fense under subsection (b) of section 3716 of title 31—
‘‘(A) shall include provisions to carry out para-
graph (1); and
‘‘(B) shall provide the carrier for a claim sub-
ject to paragraph (1) with an opportunity to offer an
alternative method of repaying the claim (rather
than by administrative offset) if the collection of the
claim by administrative offset has not already been
made.
‘‘(3) In this subsection, the term ‘simplified acquisi-
tion threshold’ has the meaning given that term in section
4(11) of the Office of Federal Procurement Policy Act (41
U.S.C. 403(11)).’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 157 of such title is
amended to read as follows:
‘‘2636. Deductions from amounts due carriers.’’.
615
(b) EFFECTIVE DATE.—Subsections (a)(2) and (b)
of section 2636 of title 10, United States Code, as added
by subsection (a)(1), shall apply with respect to contracts
entered into after the date of the enactment of this Act.
SEC. 1010. INTEREST PENALTIES FOR LATE PAYMENT OF
INTERIM PAYMENTS DUE UNDER GOVERN-
MENT SERVICE CONTRACTS.
(a) PROMPT PAYMENT REQUIREMENT FOR INTERIM
PAYMENTS.—Under regulations prescribed under sub-
section (c), the head of an agency acquiring services from
a business concern under a cost reimbursement contract
requiring interim payments who does not pay the concern
a required interim payment by the date that is 30 days
after the date of the receipt of a proper invoice shall pay
an interest penalty to the concern on the amount of the
payment due. The interest shall be computed as provided
in section 3902(a) of title 31, United States Code.
(b) REGULATIONS.—The Director of the Office of
Management and Budget shall prescribe regulations to
carry out this section. Such regulations shall be prescribed
as part of the regulations prescribed under section 3903
of title 31, United States Code.
(c) INCORPORATION
OF CERTAIN PROVISIONS
OF
LAW.—The provisions of chapter 39 of title 31, United
616
States Code, shall apply to this section in the same man-
ner as if this section were enacted as part of such chapter.
(d) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect on December 15, 2000. No interest shall accrue by
reason of that subsection for any period before that date.
Subtitle B—Naval Vessels and
Shipyards
SEC. 1011. REVISIONS TO NATIONAL DEFENSE FEATURES
PROGRAM.
Section 2218(k) of title 10, United States Code, is
amended—
(1) by adding at the end of paragraph (1) the
following new sentence: ‘‘As consideration for a con-
tract with the head of an agency under this sub-
section, the company entering into the contract shall
agree with the Secretary of Defense to make any
vessel covered by the contract available to the Sec-
retary, fully crewed and ready for sea, at any time
at any port determined by the Secretary, and for
whatever duration the Secretary determines nec-
essary.’’;
(2) by adding at the end of paragraph (2) the
following new subparagraph:
‘‘(E) Payments of such sums as the Govern-
ment would otherwise expend, if the vessel were
617
placed in the Ready Reserve Fleet, for maintaining
the vessel in the status designated as ‘ROS–4 sta-
tus’ in the Ready Reserve Fleet for 25 years.’’; and
(3) by adding at the end the following new
paragraph:
‘‘(6) The head of an agency may not enter into a con-
tract under paragraph (1) that would provide for pay-
ments to the contractor as authorized in paragraph (2)(E)
until notice of the proposed contract is submitted to the
congressional defense committees and a period of 90 days
has elapsed.’’.
SEC. 1012. SENSE OF CONGRESS ON THE NAMING OF THE
CVN–77 AIRCRAFT CARRIER.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Over the last three decades Congress has
authorized and appropriated funds for a total of 10
Nimitz class aircraft carriers.
(2) The last vessel in the Nimitz class of air-
craft carriers, CVN–77, is currently under construc-
tion and will be delivered in 2008.
(3) The first nine vessels in this class bear the
following proud names:
(A) U.S.S. Nimitz (CVN–68).
618
(B) U.S.S. Dwight D. Eisenhower (CVN–
69).
(C) U.S.S. Carl Vinson (CVN–70).
(D) U.S.S. Theodore Roosevelt (CVN–71).
(E) U.S.S. Abraham Lincoln (CVN–72).
(F) U.S.S. George Washington (CVN–73).
(G) U.S.S. John C. Stennis (CVN–74).
(H) U.S.S. Harry S. Truman (CVN–75).
(I) U.S.S. Ronald Reagan (CVN–76).
(4) It is appropriate for Congress to rec-
ommend to the President, as Commander in Chief of
the Armed Forces, an appropriate name for the final
vessel in the Nimitz class of aircraft carriers.
(5) Over the last 25 years the vessels in the
Nimitz class of aircraft carriers have served as one
of the principal means of United States diplomacy
and as one of the principal means for the defense of
the United States and its allies around the world.
(6) The name bestowed upon the aircraft car-
rier CVN–77 should embody the American spirit and
provide a lasting symbol of the American commit-
ment to freedom.
(7) The name ‘‘Lexington’’ has been a symbol
of freedom from the first battle of the American
Revolution.
619
(8) The two aircraft carriers previously named
U.S.S. Lexington (the CV–2 and the CV–16) served
the Nation for 64 years, served in World War II,
and earned a total of 13 battle stars.
(9) One of those honored vessels, the CV–2,
was lost at the Battle of the Coral Sea on May 8,
1942.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the CVN–77 aircraft carrier should be named
the ‘‘U.S.S. Lexington’’—
(1) in order to honor the men and women who
served in the Armed Forces of the United States
during World War II and the incalculable number of
United States citizens on the home front during that
war who mobilized in the name of freedom; and
(2) as a special tribute to the 16,000,000 vet-
erans of the Armed Forces who served on land, sea,
and air during World War II (of whom fewer than
6,000,000 remain alive today) and a lasting symbol
of their commitment to freedom as they pass on hav-
ing proudly taken their place in history.
SEC. 1013. AUTHORITY TO TRANSFER NAVAL VESSELS TO
CERTAIN FOREIGN COUNTRIES.
(a) TRANSFERS BY GRANT.—The President is au-
thorized to transfer vessels to foreign countries on a grant
620
basis under section 516 of the Foreign Assistance Act of
1961 (22 U.S.C. 2321j) as follows:
(1) BRAZIL.—To the Government of Brazil—
(A) the THOMASTON class dock landing
ships ALAMO (LSD 33) and HERMITAGE
(LSD 34); and
(B) the GARCIA class frigates BRADLEY
(FF 1041), DAVIDSON (FF 1045), SAMPLE
(FF 1048) and ALBERT DAVID (FF 1050).
(2) GREECE.—To the Government of Greece,
the KNOX class frigates VREELAND (FF 1068)
and TRIPPE (FF 1075).
(b) TRANSFERS
ON
A
COMBINED
LEASE-SALE
BASIS.—(1) The President is authorized to transfer ves-
sels to foreign countries on a combined lease-sale basis
under sections 61 and 21 of the Arms Export Control Act
(22 U.S.C. 2796 and 2761) and in accordance with sub-
section (c) as follows:
(A) CHILE.—To the Government of Chile, the
OLIVER HAZARD PERRY class guided missile
frigates WADSWORTH (FFG 9), and ESTOCIN
(FFG 15).
(B) TURKEY.—To the Government of Turkey,
the OLIVER HAZARD PERRY class guided missile
621
frigates JOHN A. MOORE (FFG 19) and
FLATLEY (FFG 21).
(2) The authority provided under paragraph (1)(B)
is in addition to the authority provided under section
1018(a)(9) of the National Defense Authorization Act for
Fiscal Year 2000 (Public Law 106–65; 113 Stat. 745) for
the transfer of those vessels to the Government of Turkey
on a sale basis under section 21 of the Arms Export Con-
trol Act (22 U.S.C. 2761).
(c) CONDITIONS RELATING TO COMBINED LEASE-
SALE TRANSFERS.—A transfer of a vessel on a combined
lease-sale basis authorized by subsection (b) shall be made
in accordance with the following requirements:
(1) The President may initially transfer the ves-
sel by lease, with lease payments suspended for the
term of the lease, if the country entering into the
lease for the vessel simultaneously enters into a for-
eign military sales agreement for the transfer of title
to the vessel.
(2) The President may not deliver to the pur-
chasing country title to the vessel until the purchase
price of the vessel under such a foreign military
sales agreement is paid in full.
(3) Upon payment of the purchase price in full
under such a sales agreement and delivery of title to