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ment Policy, in coordination with the Director of the Of-
fice of Personnel Management, shall encourage executive 
agencies to utilize existing authorities, including direct 
hire authority and tuition assistance programs, to recruit 
and retain acquisition personnel and consider recruiting 
acquisition personnel who may be retiring from the private 
sector, consistent with existing laws and regulations. 
(h) DEFINITIONS.—In this section: 
(1) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning provided in section 4(1) of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 403(1)). 
(2) CHIEF ACQUISITION OFFICER.—The term 
‘‘Chief Acquisition Officer’’ means a Chief Acquisi-
tion Officer for an executive agency appointed pur-
suant to section 16 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 414). 
Subtitle F—Contracts in Iraq and 
Afghanistan 
SEC. 861. MEMORANDUM OF UNDERSTANDING ON MAT-
TERS RELATING TO CONTRACTING. 
(a) 
MEMORANDUM
OF
UNDERSTANDING
RE-
QUIRED.—The Secretary of Defense, the Secretary of 
State, and the Administrator of the United States Agency 
for International Development shall, not later than July 
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1, 2008, enter into a memorandum of understanding re-
garding matters relating to contracting for contracts in 
Iraq or Afghanistan. 
(b) MATTERS COVERED.—The memorandum of un-
derstanding required by subsection (a) shall address, at 
a minimum, the following: 
(1) Identification of the major categories of 
contracts in Iraq or Afghanistan being awarded by 
the Department of Defense, the Department of 
State, or the United States Agency for International 
Development. 
(2) Identification of the roles and responsibil-
ities of each department or agency for matters relat-
ing to contracting for contracts in Iraq or Afghani-
stan. 
(3) Responsibility for establishing procedures 
for, and the coordination of, movement of contractor 
personnel in Iraq or Afghanistan. 
(4) Identification of common databases that will 
serve as repositories of information on contracts in 
Iraq or Afghanistan and contractor personnel in 
Iraq or Afghanistan, including agreement on the ele-
ments to be included in the databases, including, at 
a minimum— 
(A) with respect to each contract— 
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(i) a brief description of the contract 
(to the extent consistent with security con-
siderations); 
(ii) the total value of the contract; 
and 
(iii) whether the contract was awarded 
competitively; and 
(B) with respect to contractor personnel— 
(i) the total number of personnel em-
ployed on contracts in Iraq or Afghanistan; 
(ii) the total number of personnel per-
forming security functions under contracts 
in Iraq or Afghanistan; and 
(iii) the total number of personnel 
working under contracts in Iraq or Af-
ghanistan who have been killed or wound-
ed. 
(5) Responsibility for maintaining and updating 
information in the common databases identified 
under paragraph (4). 
(6) Responsibility for the collection and referral 
to the appropriate Government agency of any infor-
mation relating to offenses under chapter 47 of title 
10, United States Code (the Uniform Code of Mili-
tary Justice) or chapter 212 of title 18, United 
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States Code (commonly referred to as the Military 
Extraterritorial Jurisdiction Act), including a clari-
fication of responsibilities under section 802(a)(10) 
of title 10, United States Code (article 2(a) of the 
Uniform Code of Military Justice), as amended by 
section 552 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 
109–364). 
(c) IMPLEMENTATION OF MEMORANDUM OF UNDER-
STANDING.—Not later than 120 days after the memo-
randum of understanding required by subsection (a) is 
signed, the Secretary of Defense, the Secretary of State, 
and the Administrator of the United States Agency for 
International Development shall issue such policies or 
guidance and prescribe such regulations as are necessary 
to implement the memorandum of understanding for the 
relevant matters pertaining to their respective agencies. 
(d) COPIES PROVIDED TO CONGRESS.— 
(1) MEMORANDUM OF UNDERSTANDING.—Cop-
ies of the memorandum of understanding required 
by subsection (a) shall be provided to the relevant 
committees of Congress within 30 days after the 
memorandum is signed. 
(2) REPORT ON IMPLEMENTATION.—Not later 
than 180 days after the memorandum of under-
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standing required by subsection (a) is signed, the 
Secretary of Defense, the Secretary of State, and 
the Administrator of the United States Agency for 
International Development shall each provide a re-
port to the relevant committees of Congress on the 
implementation of the memorandum of under-
standing. 
(3) DATABASES.—The Secretary of Defense, 
the Secretary of State, or the Administrator of the 
United States Agency for International Development 
shall provide access to the common databases identi-
fied under subsection (b)(4) to the relevant commit-
tees of Congress. 
(4) CONTRACTS.—Effective on the date of the 
enactment of this Act, copies of any contracts in 
Iraq or Afghanistan awarded after December 1, 
2007, shall be provided to any of the relevant com-
mittees of Congress within 15 days after the submis-
sion of a request for such contract or contracts from 
such committee to the department or agency man-
aging the contract. 
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SEC. 862. CONTRACTORS PERFORMING PRIVATE SECURITY 
FUNCTIONS IN AREAS OF COMBAT OPER-
ATIONS. 
(a) REGULATIONS ON CONTRACTORS PERFORMING 
PRIVATE SECURITY FUNCTIONS.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the Sec-
retary of Defense, in coordination with the Secretary 
of State, shall prescribe regulations on the selection, 
training, equipping, and conduct of personnel per-
forming private security functions under a covered 
contract in an area of combat operations. 
(2) ELEMENTS.—The regulations prescribed 
under subsection (a) shall, at a minimum, estab-
lish— 
(A) a process for registering, processing, 
accounting for, and keeping appropriate records 
of personnel performing private security func-
tions in an area of combat operations; 
(B) a process for authorizing and account-
ing for weapons to be carried by, or available to 
be used by, personnel performing private secu-
rity functions in an area of combat operations; 
(C) a process for the registration and iden-
tification of armored vehicles, helicopters, and 
other military vehicles operated by contractors 
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(I) a process by which the training require-
ments referred to in subparagraph (G)(ii) shall 
be implemented. 
(3) AVAILABILITY
OF
ORDERS, DIRECTIVES, 
AND
INSTRUCTIONS.—The regulations prescribed 
under subsection (a) shall include mechanisms to en-
sure the provision and availability of the orders, di-
rectives, and instructions referred to in paragraph 
(2)(G)(i) to contractors referred to in that para-
graph, including through the maintenance of a single 
location (including an Internet website, to the extent 
consistent with security considerations) at or 
through which such contractors may access such or-
ders, directives, and instructions. 
(b) CONTRACT CLAUSE
ON CONTRACTORS PER-
FORMING PRIVATE SECURITY FUNCTIONS.— 
(1) REQUIREMENT
UNDER
FAR.—Not later 
than 180 days after the date of the enactment of 
this Act, the Federal Acquisition Regulation issued 
in accordance with section 25 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 421) shall 
be revised to require the insertion into each covered 
contract (or, in the case of a task order, the contract 
under which the task order is issued) of a contract 
clause addressing the selection, training, equipping, 
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and conduct of personnel performing private security 
functions under such contract. 
(2) 
CLAUSE
REQUIREMENT.—The 
contract 
clause required by paragraph (1) shall require, at a 
minimum, that the contractor concerned shall— 
(A) comply with regulations prescribed 
under subsection (a), including any revisions or 
updates to such regulations, and follow the pro-
cedures established in such regulations for— 
(i) registering, processing, accounting 
for, and keeping appropriate records of 
personnel performing private security func-
tions in an area of combat operations; 
(ii) authorizing and accounting of 
weapons to be carried by, or available to be 
used by, personnel performing private se-
curity functions in an area of combat oper-
ations; 
(iii) registration and identification of 
armored vehicles, helicopters, and other 
military vehicles operated by contractors 
and subcontractors performing private se-
curity functions in an area of combat oper-
ations; and 
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(iv) the reporting of incidents in 
which— 
(I) a weapon is discharged by 
personnel performing private security 
functions in an area of combat oper-
ations; 
(II) personnel performing private 
security functions in an area of com-
bat operations are killed or injured; or 
(III) persons are killed or in-
jured, or property is destroyed, as a 
result of conduct by contractor per-
sonnel; 
(B) ensure that all personnel performing 
private security functions under such contract 
are briefed on and understand their obligation 
to comply with— 
(i) qualification, training, screening 
(including, if practicable, through back-
ground checks), and security requirements 
established by the Secretary of Defense for 
personnel performing private security func-
tions in an area of combat operations; 
(ii) applicable laws and regulations of 
the United States and the host country, 
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and applicable treaties and international 
agreements, regarding the performance of 
the functions of the contractor; 
(iii) orders, directives, and instruc-
tions issued by the applicable commander 
of a combatant command relating to equip-
ment, force protection, security, health, 
safety, or relations and interaction with 
locals; and 
(iv) rules on the use of force issued by 
the applicable commander of a combatant 
command for personnel performing private 
security functions in an area of combat op-
erations; and 
(C) cooperate with any investigation con-
ducted by the Department of Defense pursuant 
to subsection (a)(2)(E) by providing access to 
employees of the contractor and relevant infor-
mation in the possession of the contractor re-
garding the incident concerned. 
(3) NONCOMPLIANCE
OF
PERSONNEL
WITH 
CLAUSE.—The contracting officer for a covered con-
tract may direct the contractor, at its own expense, 
to remove or replace any personnel performing pri-
vate security functions in an area of combat oper-
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ations who violate or fail to comply with applicable 
requirements of the clause required by this sub-
section. If the violation or failure to comply is a 
gross violation or failure or is repeated, the contract 
may be terminated for default. 
(4) APPLICABILITY.—The contract clause re-
quired by this subsection shall be included in all cov-
ered contracts awarded on or after the date that is 
180 days after the date of the enactment of this Act. 
Federal agencies shall make best efforts to provide 
for the inclusion of the contract clause required by 
this subsection in covered contracts awarded before 
such date. 
(5) INSPECTOR
GENERAL
REPORT
ON
PILOT 
PROGRAM
ON
IMPOSITION
OF
FINES
FOR
NON-
COMPLIANCE
OF
PERSONNEL
WITH
CLAUSE.—Not 
later than March 30, 2008, the Inspector General of 
the Department of Defense shall submit to Congress 
a report assessing the feasibility and advisability of 
carrying out a pilot program for the imposition of 
fines on contractors for personnel who violate or fail 
to comply with applicable requirements of the clause 
required by this section as a mechanism for enhanc-
ing the compliance of such personnel with the clause. 
The report shall include— 
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(A) an assessment of the feasibility and 
advisability of carrying out the pilot program; 
and 
(B) if the Inspector General determines 
that carrying out the pilot program is feasible 
and advisable— 
(i) recommendations on the range of 
contracts and subcontracts to which the 
pilot program should apply; and 
(ii) a schedule of fines to be imposed 
under the pilot program for various types 
of personnel actions or failures. 
(c) AREAS OF COMBAT OPERATIONS.— 
(1) DESIGNATION.—The Secretary of Defense 
shall designate the areas constituting an area of 
combat operations for purposes of this section by not 
later than 120 days after the date of the enactment 
of this Act. 
(2) PARTICULAR AREAS.—Iraq and Afghanistan 
shall be included in the areas designated as an area 
of combat operations under paragraph (1). 
(3) ADDITIONAL AREAS.—The Secretary may 
designate any additional area as an area constituting 
an area of combat operations for purposes of this 
section if the Secretary determines that the presence 
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or potential of combat operations in such area war-
rants designation of such area as an area of combat 
operations for purposes of this section. 
(4) MODIFICATION OR ELIMINATION OF DES-
IGNATION.—The Secretary may modify or cease the 
designation of an area under this subsection as an 
area of combat operations if the Secretary deter-
mines that combat operations are no longer ongoing 
in such area. 
(d) EXCEPTION.—The requirements of this section 
shall not apply to contracts entered into by elements of 
the intelligence community in support of intelligence ac-
tivities. 
SEC. 863. COMPTROLLER GENERAL REVIEWS AND RE-
PORTS ON CONTRACTING IN IRAQ AND AF-
GHANISTAN. 
(a) REVIEWS AND REPORTS REQUIRED.— 
(1) IN
GENERAL.—Every 12 months, the 
Comptroller General shall review contracts in Iraq or 
Afghanistan and submit to the relevant committees 
of Congress a report on such review. 
(2) MATTERS COVERED.—A report under this 
subsection shall cover the following with respect to 
the contracts in Iraq or Afghanistan reviewed for the 
report: 
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(A) Total number of contracts and task or-
ders awarded during the period covered by the 
report. 
(B) Total number of active contracts and 
task orders. 
(C) Total value of all contracts and task 
orders awarded during the reporting period. 
(D) Total value of active contracts and 
task orders. 
(E) The extent to which such contracts 
have used competitive procedures. 
(F) Total number of contractor personnel 
working on contracts during the reporting pe-
riod. 
(G) Total number of contractor personnel, 
on average, who are performing security func-
tions during the reporting period. 
(H) The number of contractor personnel 
killed or wounded during the reporting period. 
(I) Information on any specific contract or 
class of contracts that the Comptroller General 
determines raises issues of significant concern. 
(3) SUBMISSION
OF
REPORTS.—The Comp-
troller General shall submit an initial report under 
this subsection not later than October 1, 2008, and 
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shall submit an updated report every year thereafter 
until October 1, 2010. 
(b) ACCESS TO DATABASES ON CONTRACTS.—The 
Secretary of Defense and the Secretary of State shall pro-
vide full access to the databases described in section 
861(b)(4) to the Comptroller General for purposes of the 
reviews carried out under this section. 
SEC. 864. DEFINITIONS AND OTHER GENERAL PROVISIONS. 
(a) DEFINITIONS.—In this subtitle: 
(1) MATTERS
RELATING
TO
CONTRACTING.— 
The term ‘‘matters relating to contracting’’, with re-
spect to contracts in Iraq and Afghanistan, means 
all matters relating to awarding, funding, managing, 
tracking, monitoring, and providing oversight to con-
tracts and contractor personnel. 
(2) CONTRACT IN IRAQ OR AFGHANISTAN.—The 
term ‘‘contract in Iraq or Afghanistan’’ means a 
contract with the Department of Defense, the De-
partment of State, or the United States Agency for 
International Development, a subcontract at any tier 
issued under such a contract, or a task order or de-
livery order at any tier issued under such a contract 
(including a contract, subcontract, or task order or 
delivery order issued by another Government agency 
for the Department of Defense, the Department of 
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State, or the United States Agency for International 
Development), if the contract, subcontract, or task 
order or delivery order involves worked performed in 
Iraq or Afghanistan for a period longer than 14 
days. 
(3) COVERED CONTRACT.—The term ‘‘covered 
contract’’ means— 
(A) a contract of a Federal agency for the 
performance of services in an area of combat 
operations, as designated by the Secretary of 
Defense under subsection (c) of section 862; 
(B) a subcontract at any tier under such 
a contract; or 
(C) a task order or delivery order issued 
under such a contract or subcontract. 
(4) CONTRACTOR.—The term ‘‘contractor’’, 
with respect to a covered contract, means the con-
tractor or subcontractor carrying out the covered 
contract. 
(5) PRIVATE SECURITY FUNCTIONS.—The term 
‘‘private security functions’’ means activities en-
gaged in by a contractor under a covered contract as 
follows: 
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(A) Guarding of personnel, facilities, or 
property of a Federal agency, the contractor or 
subcontractor, or a third party. 
(B) Any other activity for which personnel 
are required to carry weapons in the perform-
ance of their duties. 
(6) RELEVANT COMMITTEES OF CONGRESS.— 
The term ‘‘relevant committees of Congress’’ means 
each of the following committees: 
(A) The Committees on Armed Services of 
the Senate and the House of Representatives. 
(B) The Committee on Homeland Security 
and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Re-
form of the House of Representatives. 
(C) The Committee on Foreign Relations 
of the Senate and the Committee on Foreign 
Affairs of the House of Representatives. 
(D) For purposes of contracts relating to 
the National Foreign Intelligence Program, the 
Select Committee on Intelligence of the Senate 
and the Permanent Select Committee on Intel-
ligence of the House of Representatives. 
(b) CLASSIFIED INFORMATION.—Nothing in this sub-
title shall be interpreted to require the handling of classi-
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fied information or information relating to intelligence 
sources and methods in a manner inconsistent with any 
law, regulation, executive order, or rule of the House of 
Representatives or of the Senate relating to the handling 
or protection of such information. 
Subtitle G—Defense Materiel 
Readiness Board 
SEC. 871. ESTABLISHMENT OF DEFENSE MATERIEL READI-
NESS BOARD. 
(a) ESTABLISHMENT.—Not later than 6 months after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish a Defense Materiel Readiness 
Board (in this subtitle referred to as the ‘‘Board’’) within 
the Office of the Secretary of Defense. 
(b) MEMBERSHIP.—The Secretary shall appoint the 
chairman and the members of the Board from among offi-
cers of the Armed Forces with expertise in matters rel-
evant to the function of the Board to assess materiel readi-
ness and evaluate plans and policies relating to materiel 
readiness. At a minimum, the Board shall include rep-
resentatives of the Joint Chiefs of Staff, each of the 
Armed Forces, and each of the reserve components of the 
Armed Forces. 
(c) STAFF.—The Secretary of Defense shall assign 
staff, and request the Secretaries of the military depart-
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(5) assist the Secretary of Defense in deter-
mining whether the industrial capacity of the De-
partment of Defense and of the defense industrial 
base is being best utilized to support the materiel 
readiness needs of the Armed Forces; 
(6) review and assess Department of Defense 
systems for measuring the status of current materiel 
readiness of the Armed Forces; and 
(7) make recommendations with respect to ma-
teriel readiness funding, measurement techniques, 
plans, policies, and programs. 
(e) REPORTS.—The Board shall submit to the Sec-
retary of Defense a report summarizing its findings and 
recommendations not less than once every six months. 
Within 30 days after receiving a report from the Board, 
the Secretary shall forward the report in its entirety, to-
gether with his comments, to the congressional defense 
committees. The report shall be submitted in unclassified 
form. To the extent necessary, the report may be accom-
panied by a classified annex. 
SEC. 872. CRITICAL MATERIEL READINESS SHORTFALLS. 
(a) DESIGNATION OF CRITICAL MATERIEL READI-
NESS SHORTFALLS.— 
(1) DESIGNATION.—The Secretary of Defense 
may designate any requirement of the Armed Forces 
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for equipment or supplies as a critical materiel read-
iness shortfall if there is a shortfall in the required 
equipment or supplies that materially reduces readi-
ness of the Armed Forces and that— 
(A) cannot be adequately addressed by 
identifying acceptable substitute capabilities or 
cross leveling of equipment that does not unac-
ceptably reduce the readiness of other Armed 
Forces; and 
(B) that is likely to persist for more than 
two years based on currently projected budgets 
and schedules for deliveries of equipment and 
supplies. 
(2) CONSIDERATION OF BOARD FINDINGS AND 
RECOMMENDATIONS.—In making any such designa-
tion, the Secretary shall take into consideration the 
findings and recommendations of the Defense Mate-
riel Readiness Board. 
(b) MEASURES TO ADDRESS CRITICAL MATERIEL 
READINESS SHORTFALLS.—The Secretary of Defense 
shall ensure that critical materiel readiness shortfalls des-
ignated pursuant to subsection (a)(1) are transmitted to 
the relevant officials of the Department of Defense respon-
sible for requirements, budgets, and acquisition, and that 
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such officials prioritize and address such shortfalls in the 
shortest time frame practicable. 
(c) TRANSFER AUTHORITY.— 
(1) IN GENERAL.—The amounts of authoriza-
tions that the Secretary may transfer under the au-
thority of section 1001 of this Act is hereby in-
creased by $2,000,000,000. 
(2) LIMITATIONS.—The additional transfer au-
thority provided by this section— 
(A) may be made only from authorizations 
to the Department of Defense for fiscal year 
2008; 
(B) may be exercised solely for the purpose 
of addressing critical materiel readiness short-
falls as designated by the Secretary of Defense 
under subsection (a); and 
(C) is subject to the same terms, condi-
tions, and procedures as other transfer author-
ity under section 1001 of this Act. 
(d) STRATEGIC READINESS FUND.— 
(1) ESTABLISHMENT.—There is established on 
the books of the Treasury a fund to be known as the 
Department of Defense Strategic Readiness Fund 
(in this subsection referred to as the ‘‘Fund’’), which 
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shall be administered by the Secretary of the Treas-
ury. 
(2) PURPOSES.—The Fund shall be used to ad-
dress critical materiel readiness shortfalls as des-
ignated by the Secretary of Defense under sub-
section (a). 
(3) ASSETS OF FUND.—There shall be depos-
ited into the Fund any amount appropriated to the 
Fund, which shall constitute the assets of the Fund. 
(4) LIMITATION.—The procurement unit cost 
(as defined in section 2432(a) of title 10, United 
States Code) of any item purchased using assets of 
the Fund, whether such assets are in the Fund or 
after such assets have been transferred from the 
Fund using the authority provided in subsection (c), 
shall not exceed $30,000,000. 
(e) MULTIYEAR CONTRACT NOTIFICATION.— 
(1) NOTIFICATION.—If the Secretary of a mili-
tary department makes the determination described 
in paragraph (2) with respect to the use of a 
multiyear contract, the Secretary shall notify the 
congressional defense committees within 30 days of 
the determination and provide a detailed description 
of the proposed multiyear contract. 
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(2) DETERMINATION.—The determination re-
ferred to in paragraph (1) is a determination by the 
Secretary of a military department that the use of 
a multiyear contract to procure an item to address 
a critical materiel readiness shortfall— 
(A) will significantly accelerate efforts to 
address a critical materiel readiness shortfall; 
(B) will provide savings compared to the 
total anticipated costs of carrying out the con-
tract through annual contracts; and 
(C) will serve the interest of national secu-
rity. 
(f) DEFINITION.—In this section, the term ‘‘critical 
materiel readiness shortfall’’ means a critical materiel 
readiness shortfall designated by the Secretary of Defense 
under this section. 
Subtitle H—Other Matters 
SEC. 881. CLEARINGHOUSE FOR RAPID IDENTIFICATION 
AND DISSEMINATION OF COMMERCIAL IN-
FORMATION TECHNOLOGIES. 
(a) 
REQUIREMENT
TO
ESTABLISH
CLEARING-
HOUSE.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense, acting 
through the Assistant Secretary of Defense for Networks 
and Information Integration, shall establish a clearing-
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the funding and acquisition processes of the Depart-
ment of Defense. 
(8) Developing methods to measure how well 
processes developed by the clearinghouse are being 
utilized and to collect data on an ongoing basis to 
assess the benefits of commercial technologies that 
are procured on the recommendation of the clearing-
house. 
(c) PERSONNEL.—The Secretary of Defense, acting 
through the Assistant Secretary of Defense for Networks 
and Information Integration, shall provide for the hiring 
and support of employees (including detailees from other 
components of the Department of Defense and from other 
Federal departments or agencies) to assist in identifying, 
assessing, and disseminating information regarding com-
mercial technologies under this section. 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense com-
mittees a report on the implementation of this section. 
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SEC. 882. AUTHORITY TO LICENSE CERTAIN MILITARY DES-
IGNATIONS AND LIKENESSES OF WEAPONS 
SYSTEMS TO TOY AND HOBBY MANUFACTUR-
ERS. 
(a) AUTHORITY TO LICENSE CERTAIN ITEMS.—Sec-
tion 2260 of title 10, United States Code, is amended— 
(1) by redesignating subsections (c), (d), and 
(e) as subsections (d), (e), and (f), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) LICENSES FOR QUALIFYING COMPANIES.—(1) 
The Secretary concerned may license trademarks, service 
marks, certification marks, and collective marks owned or 
controlled by the Secretary relating to military designa-
tions and likenesses of military weapons systems to any 
qualifying company upon receipt of a request from the 
company. 
‘‘(2) For purposes of paragraph (1), a qualifying 
company is any United States company that— 
‘‘(A) is a toy or hobby manufacturer; and 
‘‘(B) is determined by the Secretary concerned 
to be qualified in accordance with such criteria as 
determined appropriate by the Secretary of Defense. 
‘‘(3) The fee for a license under this subsection shall 
not exceed by more than a nominal amount the amount 
needed to recover all costs of the Department of Defense 
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in processing the request for the license and supplying the 
license. 
‘‘(4) A license to a qualifying company under this 
subsection shall provide that the license may not be trans-
ferred, sold, or relicensed by the qualifying company. 
‘‘(5) A license under this subsection shall not be an 
exclusive license.’’. 
(b) EFFECTIVE DATE.—The Secretary of Defense 
shall prescribe regulations to implement the amendment 
made by this section not later than 180 days after the 
date of the enactment of this Act. 
SEC. 883. MODIFICATIONS TO LIMITATION ON CONTRACTS 
TO ACQUIRE MILITARY FLIGHT SIMULATOR. 
(a) EFFECT ON EXISTING CONTRACTS.—Section 832 
of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 
2331) is amended by adding at the end the following new 
subsection: 
‘‘(e) EFFECT ON EXISTING CONTRACTS.—The limi-
tation in subsection (a) does not apply to any service con-
tract of a military department to acquire a military flight 
simulator, or to any renewal or extension of, or follow- 
on contract to, such a contract, if— 
‘‘(1) the contract was in effect as of October 
17, 2006; 
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‘‘(2) the number of flight simulators to be ac-
quired under the contract (or renewal, extension, or 
follow-on) will not result in the total number of 
flight simulators acquired by the military depart-
ment concerned through service contracts to exceed 
the total number of flight simulators to be acquired 
under all service contracts of such department for 
such simulators in effect as of October 17, 2006; 
and 
‘‘(3) in the case of a renewal or extension of, 
or follow-on contract to, the contract, the Secretary 
of the military department concerned provides to the 
congressional defense committees a written notice of 
the decision to exercise an option to renew or extend 
the contract, or to issue a solicitation for bids or 
proposals using competitive procedures for a follow- 
on contract, and an economic analysis as described 
in subsection (c) supporting the decision, at least 30 
days before carrying out such decision.’’. 
(b) CHANGE IN GROUNDS FOR WAIVER.—Section 
832(c)(1) of such Act, as redesignated by subsection (a), 
is amend by striking ‘‘necessary for national security pur-
poses’’ and inserting ‘‘in the national interest’’. 
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SEC. 884. REQUIREMENTS RELATING TO WAIVERS OF CER-
TAIN DOMESTIC SOURCE LIMITATIONS RE-
LATING TO SPECIALTY METALS. 
(a) NOTICE REQUIREMENT.—At least 30 days prior 
to making a domestic nonavailability determination pursu-
ant to section 2533b(b) of title 10, United States Code, 
that would apply to more than one contract of the Depart-
ment of Defense, the Secretary of Defense shall, to the 
maximum extent practicable and in a manner consistent 
with the protection of national security information and 
confidential business information— 
(1) publish a notice on the website maintained 
by the General Services Administration known as 
FedBizOpps.gov (or any successor site) of the Sec-
retary’s intent to make the domestic nonavailability 
determination; and 
(2) solicit information relevant to such notice 
from interested parties, including producers of spe-
cialty metal mill products. 
(b) DETERMINATION.—(1) The Secretary shall take 
into consideration all information submitted pursuant to 
subsection (a) in making a domestic nonavailability deter-
mination pursuant to section 2533b(b) of title 10, United 
States Code, that would apply to more than one contract 
of the Department of Defense, and may also consider 
other relevant information that cannot be made part of 
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the public record consistent with the protection of national 
security information and confidential business informa-
tion. 
(2) The Secretary shall ensure that any such deter-
mination and the rationale for such determination is made 
publicly available to the maximum extent consistent with 
the protection of national security information and con-
fidential business information. 
SEC. 885. TELEPHONE SERVICES FOR MILITARY PER-
SONNEL SERVING IN COMBAT ZONES. 
(a) COMPETITIVE PROCEDURES REQUIRED.— 
(1) REQUIREMENT.—When the Secretary of 
Defense considers it necessary to provide morale, 
welfare, and recreation telephone services for mili-
tary personnel serving in combat zones, the Sec-
retary shall use competitive procedures when enter-
ing into a contract to provide those services. 
(2) REVIEW AND DETERMINATION.—Before so-
liciting bids or proposals for new contracts, or con-
sidering extensions to existing contracts, to provide 
morale, welfare, and recreation telephone services for 
military personnel serving in combat zones, the Sec-
retary shall review and determine whether it is in 
the best interest of the Department to require bids 
or proposals, or adjustments for the purpose of ex-
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tending a contract, to include options that minimize 
the cost of the telephone services to individual users 
while providing individual users the flexibility of 
using phone cards from other than the prospective 
contractor. The Secretary shall submit the results of 
this review and determination to the Committees on 
Armed Services of the Senate and the House of Rep-
resentatives. 
(b) EFFECTIVE DATE.— 
(1) REQUIREMENT.—Subsection (a)(1) shall 
apply to any new contract to provide morale, wel-
fare, and recreation telephone services for military 
personnel serving in combat zones that is entered 
into after the date of the enactment of this Act. 
(2) REVIEW AND DETERMINATION.—Subsection 
(a)(2) shall apply to any new contract or extension 
to an existing contract to provide morale, welfare, 
and recreation telephone services for military per-
sonnel serving in combat zones that is entered into 
or agreed upon after the date of the enactment of 
this Act. 
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SEC. 886. ENHANCED AUTHORITY TO ACQUIRE PRODUCTS 
AND SERVICES PRODUCED IN IRAQ AND AF-
GHANISTAN. 
(a) IN GENERAL.—In the case of a product or service 
to be acquired in support of military operations or stability 
operations in Iraq or Afghanistan (including security, 
transition, reconstruction, and humanitarian relief activi-
ties) for which the Secretary of Defense makes a deter-
mination described in subsection (b), the Secretary may 
conduct a procurement in which— 
(1) competition is limited to products or serv-
ices that are from Iraq or Afghanistan; 
(2) procedures other than competitive proce-
dures are used to award a contract to a particular 
source or sources from Iraq or Afghanistan; or 
(3) a preference is provided for products or 
services that are from Iraq or Afghanistan. 
(b) DETERMINATION.—A determination described in 
this subsection is a determination by the Secretary that— 
(1) the product or service concerned is to be 
used only by the military forces, police, or other se-
curity personnel of Iraq or Afghanistan; or 
(2) it is in the national security interest of the 
United States to limit competition, use procedures 
other than competitive procedures, or provide a pref-
erence as described in subsection (a) because— 
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(A) such limitation, procedure, or pref-
erence is necessary to provide a stable source of 
jobs in Iraq or Afghanistan; and 
(B) such limitation, procedure, or pref-
erence will not adversely affect— 
(i) military operations or stability op-
erations in Iraq or Afghanistan; or 
(ii) the United States industrial base. 
(c) PRODUCTS, SERVICES, AND SOURCES FROM IRAQ 
OR AFGHANISTAN.—For the purposes of this section: 
(1) A product is from Iraq or Afghanistan if it 
is mined, produced, or manufactured in Iraq or Af-
ghanistan. 
(2) A service is from Iraq or Afghanistan if it 
is performed in Iraq or Afghanistan by citizens or 
permanent resident aliens of Iraq or Afghanistan. 
(3) A source is from Iraq or Afghanistan if it— 
(A) is located in Iraq or Afghanistan; and 
(B) offers products or services that are 
from Iraq or Afghanistan. 
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SEC. 887. DEFENSE SCIENCE BOARD REVIEW OF DEPART-
MENT OF DEFENSE POLICIES AND PROCE-
DURES FOR THE ACQUISITION OF INFORMA-
TION TECHNOLOGY. 
(a) REVIEW REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall direct the Defense Science Board to carry 
out a review of Department of Defense policies and proce-
dures for the acquisition of information technology. 
(b) MATTERS TO BE ADDRESSED.—The matters ad-
dressed by the review required by subsection (a) shall in-
clude the following: 
(1) Department of Defense policies and proce-
dures for acquiring national security systems, busi-
ness information systems, and other information 
technology. 
(2) The roles and responsibilities in imple-
menting such policies and procedures of— 
(A) the Under Secretary of Defense for 
Acquisition, Technology, and Logistics; 
(B) the Chief Information Officer of the 
Department of Defense; 
(C) the Director of the Business Trans-
formation Agency; 
(D) the service acquisition executives; 
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(E) the chief information officers of the 
military departments; 
(F) Defense Agency acquisition officials; 
(G) the information officers of the Defense 
Agencies; and 
(H) the Director of Operational Test and 
Evaluation and the heads of the operational 
test organizations of the military departments 
and the Defense Agencies. 
(3) The application of such policies and proce-
dures to information technologies that are an inte-
gral part of weapons or weapon systems. 
(4) The requirements of subtitle III of title 40, 
United States Code, and chapter 35 of title 44, 
United States Code, regarding performance-based 
and results-based management, capital planning, 
and investment control in the acquisition of informa-
tion technology. 
(5) Department of Defense policies and proce-
dures for maximizing the usage of commercial infor-
mation technology while ensuring the security of the 
microelectronics, software, and networks of the De-
partment. 
(6) The suitability of Department of Defense 
acquisition regulations, including Department of De-
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fense Directive 5000.1 and the accompanying mile-
stones, to the acquisition of information technology 
systems. 
(7) The adequacy and transparency of metrics 
used by the Department of Defense for the acquisi-
tion of information technology systems. 
(8) The effectiveness of existing statutory and 
regulatory reporting requirements for the acquisition 
of information technology systems. 
(9) The adequacy of operational and develop-
ment test resources (including infrastructure and 
personnel), policies, and procedures to ensure appro-
priate testing of information technology systems 
both during development and before operational use. 
(10) The appropriate policies and procedures 
for technology assessment, development, and oper-
ational testing for purposes of the adoption of com-
mercial technologies into information technology sys-
tems. 
(c) REPORT REQUIRED.—Not later than one year 
after the date of enactment of this Act, the Secretary shall 
submit to the congressional defense committees a report 
on the results of the review required by subsection (a). 
The report shall include the findings and recommenda-
tions of the Defense Science Board pursuant to the review, 
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including such recommendations for legislative or adminis-
trative action as the Board considers appropriate, together 
with any comments the Secretary considers appropriate. 
SEC. 888. GREEN PROCUREMENT POLICY. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Department of Defense should establish a 
system to document and track the use of environmentally 
preferable products and services. 
(b) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on a plan to increase 
the usage of environmentally friendly products that mini-
mize potential impacts to human health and the environ-
ment at all Department of Defense facilities inside and 
outside the United States, including through the direct 
purchase of products and the purchase of products by fa-
cility maintenance contractors. The report shall also cover 
consideration of the budgetary impact of implementation 
of the plan. 
SEC. 889. COMPTROLLER GENERAL REVIEW OF USE OF AU-
THORITY UNDER THE DEFENSE PRODUCTION 
ACT OF 1950. 
(a) THOROUGH REVIEW REQUIRED.—The Comp-
troller General of the United States (in this section re-
ferred to as the ‘‘Comptroller’’) shall conduct a thorough 
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review of the application of the Defense Production Act 
of 1950, covering the period beginning on the date of the 
enactment of the Defense Production Act Reauthorization 
of 2003 (Public Law 108–195) and ending on the date 
of the enactment of this Act. 
(b) CONSIDERATIONS.—In conducting the review re-
quired by this section, the Comptroller shall examine— 
(1) the relevance and utility of the authorities 
provided under the Defense Production Act of 1950 
to meet the security challenges of the 21st Century; 
(2) the manner in which the authorities pro-
vided under such Act have been used by the Federal 
Government— 
(A) to meet security challenges; 
(B) to meet current and future defense re-
quirements; 
(C) to meet current and future energy re-
quirements; 
(D) to meet current and future domestic 
emergency and disaster response and recovery 
requirements; 
(E) to reduce the interruption of critical 
infrastructure operations during a terrorist at-
tack, natural catastrophe, or other similar na-
tional emergency; and 
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(F) to safeguard critical components of the 
United States industrial base, including Amer-
ican aerospace and shipbuilding industries; 
(3) the economic impact of foreign offset con-
tracts; 
(4) the relative merit of developing rapid and 
standardized systems for use of the authorities pro-
vided under the Defense Production Act of 1950, by 
any Federal agency; and 
(5) such other issues as the Comptroller deter-
mines relevant. 
(c) REPORT TO CONGRESS.—Not later than 150 days 
after the date of the enactment of this Act, the Comp-
troller shall submit to the Committees on Armed Services 
and on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committees on Armed Services and on Finan-
cial Services of the House of Representatives a report on 
the review conducted under this section. 
(d) RULES OF CONSTRUCTION ON PROTECTION OF 
INFORMATION.—Notwithstanding any other provision of 
law— 
(1) the provisions of section 705(d) of the De-
fense Production Act of 1950 (50 U.S.C. App. 
2155(d)) shall not apply to information sought or 
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obtained by the Comptroller for purposes of the re-
view required by this section; and 
(2) provisions of law pertaining to the protec-
tion of classified information or proprietary informa-
tion otherwise applicable to information sought or 
obtained by the Comptroller in carrying out this sec-
tion shall not be affected by any provision of this 
section. 
SEC. 890. PREVENTION OF EXPORT CONTROL VIOLATIONS. 
(a) PREVENTION
OF
EXPORT
CONTROL
VIOLA-
TIONS.—Not later than 180 days after the date of the en-
actment of this Act, the Secretary of Defense shall pre-
scribe regulations requiring any contractor under a con-
tract with the Department of Defense to provide goods 
or technology that is subject to export controls under the 
Arms Export Control Act or the Export Administration 
of 1979 (as continued in effect under the International 
Emergency Economic Powers Act) to comply with those 
Acts and applicable regulations with respect to such goods 
and technology, including the International Traffic in 
Arms Regulations and the Export Administration Regula-
tions. Regulations prescribed under this subsection shall 
include a contract clause enforcing such requirement. 
(b) TRAINING
ON EXPORT CONTROLS.—The Sec-
retary of Defense shall ensure that any contractor under 
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a contract with the Department of Defense to provide 
goods or technology that is subject to export controls 
under the Arms Export Control Act or the Export Admin-
istration of 1979 (as continued in effect under the Inter-
national Emergency Economic Powers Act) is made aware 
of any relevant resources made available by the Depart-
ment of State and the Department of Commerce to assist 
in compliance with the requirement established by sub-
section (a) and the need for a corporate compliance plan 
and periodic internal audits of corporate performance 
under such plan. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, 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 assessing the utility 
of— 
(1) requiring defense contractors (or sub-
contractors at any tier) to periodically report on 
measures taken to ensure compliance with the Inter-
national Traffic in Arms Regulations and the Export 
Administration Regulations; 
(2) requiring periodic audits of defense contrac-
tors (or subcontractors at any tier) to ensure compli-
ance with all provisions of the International Traffic 
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in Arms Regulations and the Export Administration 
Regulations; 
(3) requiring defense contractors to maintain a 
corporate training plan to disseminate information 
to appropriate contractor personnel regarding the 
applicability of the Arms Export Control Act and the 
Export Administration Act of 1979; and 
(4) requiring a designated corporate liaison, 
available for training provided by the United States 
Government, whose primary responsibility would be 
contractor compliance with the Arms Export Control 
Act and the Export Administration Act of 1979. 
(d) DEFINITIONS.—In this section: 
(1) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means those regulations contained in sections 730 
through 774 of title 15, Code of Federal Regulations 
(or successor regulations). 
(2) INTERNATIONAL TRAFFIC IN ARMS REGULA-
TIONS.—The term ‘‘International Traffic in Arms 
Regulations’’ means those regulations contained in 
sections 120 through 130 of title 22, Code of Fed-
eral Regulations (or successor regulations). 
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Hawaiian-serving institutions and Alaska Native- 
serving institutions,’’. 
SEC. 892. COMPETITION FOR PROCUREMENT OF SMALL 
ARMS SUPPLIED TO IRAQ AND AFGHANISTAN. 
(a) COMPETITION REQUIREMENT.—For the procure-
ment of pistols and other weapons described in subsection 
(b), the Secretary of Defense shall ensure, consistent with 
the provisions of section 2304 of title 10, United States 
Code, that— 
(1) full and open competition is obtained to the 
maximum extent practicable; 
(2) no responsible United States manufacturer 
is excluded from competing for such procurements; 
and 
(3) products manufactured in the United States 
are not excluded from the competition. 
(b) PROCUREMENTS COVERED.—This section applies 
to the procurement of the following: 
(1) Pistols and other weapons less than 0.50 
caliber for assistance to the Army of Iraq, the Iraqi 
Police Forces, and other Iraqi security organiza-
tions. 
(2) Pistols and other weapons less than 0.50 
caliber for assistance to the Army of Afghanistan, 
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the Afghani Police Forces, and other Afghani secu-
rity organizations. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Repeal of limitation on major Department of Defense headquarters 
activities personnel and related report. 
Sec. 902. Flexibility to adjust the number of deputy chiefs and assistant chiefs. 
Sec. 903. Change in eligibility requirements for appointment to Department of 
Defense leadership positions. 
Sec. 904. Management of the Department of Defense. 
Sec. 905. Revision in guidance relating to combatant command acquisition au-
thority. 
Sec. 906. Department of Defense Board of Actuaries. 
Sec. 907. Modification of background requirement of individuals appointed as 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics. 
Sec. 908. Assistant Secretaries of the military departments for acquisition mat-
ters; principal military deputies. 
Sec. 909. Sense of Congress on term of Office of the Director of Operational 
Test and Evaluation. 
Subtitle B—Space Activities 
Sec. 911. Space protection strategy. 
Sec. 912. Biennial report on management of space cadre within the Depart-
ment of Defense. 
Sec. 913. Additional report on oversight of acquisition for defense space pro-
grams. 
Subtitle C—Chemical Demilitarization Program 
Sec. 921. Chemical demilitarization citizens advisory commissions. 
Sec. 922. Sense of Congress on completion of destruction of United States 
chemical weapons stockpile. 
Sec. 923. Repeal of certain qualifications requirement for director of chemical 
demilitarization management organization. 
Sec. 924. Modification of termination of assistance to State and local govern-
ments after completion of the destruction of the United States 
chemical weapons stockpile. 
Subtitle D—Intelligence-Related Matters 
Sec. 931. Technical amendments to title 10, United States Code, arising from 
enactment of the Intelligence Reform and Terrorism Preven-
tion Act of 2004. 
Subtitle E—Roles and Missions Analysis 
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Sec. 941. Requirement for quadrennial roles and missions review. 
Sec. 942. Joint Requirements Oversight Council additional duties relating to 
core mission areas. 
Sec. 943. Requirement for certification of major systems prior to technology de-
velopment. 
Sec. 944. Presentation of future-years mission budget by core mission area. 
Subtitle F—Other Matters 
Sec. 951. Department of Defense consideration of effect of climate change on 
Department facilities, capabilities, and missions. 
Sec. 952. Interagency policy coordination. 
Sec. 953. Expansion of employment creditable under service agreements under 
National Security Education Program. 
Sec. 954. Board of Regents for the Uniformed Services University of the 
Health Sciences. 
Sec. 955. Establishment of Department of Defense School of Nursing. 
Sec. 956. Inclusion of commanders of Western Hemisphere combatant com-
mands in Board of Visitors of Western Hemisphere Institute 
for Security Cooperation. 
Sec. 957. Comptroller General assessment of reorganization of the Office of the 
Under Secretary of Defense for Policy. 
Sec. 958. Report on foreign language proficiency. 
Subtitle A—Department of Defense 
Management 
SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT 
OF DEFENSE HEADQUARTERS ACTIVITIES 
PERSONNEL AND RELATED REPORT. 
(a) REPEAL OF LIMITATION.— 
(1) REPEAL.—Section 130a of title 10, United 
States Code, is repealed. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 3 of such title is 
amended by striking the item relating to section 
130a. 
(b) REPORT REQUIRED.—The Secretary of Defense 
shall include a report with the defense budget materials 
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for each fiscal year that includes the following informa-
tion: 
(1) The average number of military personnel 
and civilian employees of the Department of Defense 
assigned to major Department of Defense head-
quarters activities for each component of the De-
partment of Defense during the preceding fiscal 
year. 
(2) The total increase in personnel assigned to 
major headquarters activities, if any, during the pre-
ceding fiscal year— 
(A) attributable to the replacement of con-
tract personnel with military personnel or civil-
ian employees of the Department of Defense, 
including the number of positions associated 
with the replacement of contract personnel per-
forming inherently governmental functions; and 
(B) attributable to reasons other than the 
replacement of contract personnel with military 
personnel or civilian employees of the Depart-
ment, such as workload or operational demand 
increases. 
(3) An estimate of the cost savings, if any, as-
sociated with the elimination of contracts for the 
performance of major headquarters activities. 
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(4) The number of military personnel and civil-
ian employees of the Department of Defense as-
signed to major headquarters activities for each 
component of the Department of Defense as of Octo-
ber 1 of the preceding fiscal year. 
(c) DEFINITIONS.—In this section: 
(1) DEFENSE BUDGET MATERIALS.—The term 
‘‘defense budget materials’’, with respect to a fiscal 
year, means the materials submitted to Congress by 
the Secretary of Defense in support of the budget 
for that fiscal year that is submitted to Congress by 
the President under section 1105 of title 31, United 
States Code. 
(2) CONTRACT PERSONNEL.—The term ‘‘con-
tract personnel’’ means persons hired under a con-
tract with the Department of Defense for the per-
formance of major Department of Defense head-
quarters activities. 
SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEP-
UTY CHIEFS AND ASSISTANT CHIEFS. 
(a) ARMY.—Section 3035(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(b) The Secretary of the Army shall prescribe the 
number of Deputy Chiefs of Staff and Assistant Chiefs 
of Staff, for a total of not more than eight positions.’’. 
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(b) NAVY.— 
(1) DEPUTY CHIEFS OF NAVAL OPERATIONS.— 
Section 5036(a) of title 10, United States Code, is 
amended— 
(A) by striking ‘‘There are in the Office of 
the Chief of Naval Operations not more than 
five Deputy Chiefs of Naval Operations,’’ and 
inserting ‘‘There are Deputy Chiefs of Naval 
Operations in the Office of the Chief of Naval 
Operations,’’; and 
(B) by adding at the end the following: 
‘‘The Secretary of the Navy shall prescribe the 
number of Deputy Chiefs of Naval Operations 
under this section and Assistant Chiefs of 
Naval Operations under section 5037 of this 
title, for a total of not more than eight posi-
tions.’’. 
(2) ASSISTANT
CHIEFS
OF
NAVAL
OPER-
ATIONS.—Section 5037(a) of such title is amend-
ed— 
(A) by striking ‘‘There are in the Office of 
the Chief of Naval Operations not more than 
three Assistant Chiefs of Naval Operations,’’ 
and inserting ‘‘There are Assistant Chiefs of 
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Naval Operations in the Office of the Chief of 
Naval Operations,’’; and 
(B) by adding at the end the following: 
‘‘The Secretary of the Navy shall prescribe the 
number of Assistant Chiefs of Naval Operations 
in accordance with section 5036(a) of this 
title.’’. 
(c) AIR FORCE.—Section 8035(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(b) The Secretary of the Air Force shall prescribe 
the number of Deputy Chiefs of Staff and Assistant Chiefs 
of Staff, for a total of not more than eight positions.’’. 
SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR AP-
POINTMENT TO DEPARTMENT OF DEFENSE 
LEADERSHIP POSITIONS. 
(a) SECRETARY OF DEFENSE.—Section 113(a) of 
title 10, United States Code, is amended by striking ‘‘10’’ 
and inserting ‘‘seven’’. 
(b) DEPUTY SECRETARY
OF DEFENSE.—Section 
132(a) of such title is amended by striking ‘‘ten’’ and in-
serting ‘‘seven’’. 
(c) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(a) of such title is amended by striking ‘‘10’’ 
and inserting ‘‘seven’’. 
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SEC. 904. MANAGEMENT OF THE DEPARTMENT OF DE-
FENSE. 
(a) ASSIGNMENT
OF MANAGEMENT DUTIES
AND 
DESIGNATION OF A CHIEF MANAGEMENT OFFICER AND 
DEPUTY CHIEF MANAGEMENT OFFICER OF THE DEPART-
MENT OF DEFENSE.— 
(1) ESTABLISHMENT
OF
POSITION.—Section 
132 of title 10, United States Code is amended— 
(A) by redesignating subsection (c) as sub-
section (d); and 
(B) by inserting after subsection (b) the 
following new subsection (c): 
‘‘(c) The Deputy Secretary serves as the Chief Man-
agement Officer of the Department of Defense. The Dep-
uty Secretary shall be assisted in this capacity by a Dep-
uty Chief Management Officer, who shall be appointed 
from civilian life by the President, by and with the advice 
and consent of the Senate.’’. 
(2) ASSIGNMENT OF DUTIES.— 
(A) The Secretary of Defense shall assign 
duties and authorities relating to the manage-
ment of the business operations of the Depart-
ment of Defense. 
(B) The Secretary shall assign such duties 
and authorities to the Chief Management Offi-
cer as are necessary for that official to effec-
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tively and efficiently organize the business oper-
ations of the Department of Defense. 
(C) The Secretary shall assign such duties 
and authorities to the Deputy Chief Manage-
ment Officer as are necessary for that official 
to assist the Chief Management Officer to effec-
tively and efficiently organize the business oper-
ations of the Department of Defense. 
(D) The Deputy Chief Management Officer 
shall perform the duties and have the authori-
ties assigned by the Secretary under subpara-
graph (C) and perform such duties and have 
such authorities as are delegated by the Chief 
Management Officer. 
(3) EXECUTIVE SCHEDULE LEVEL III.—Section 
5314 of title 5, United States Code, is amended by 
inserting after the item relating to the Under Sec-
retary of Defense for Intelligence the following new 
item: 
‘‘Deputy Chief Management Officer of the De-
partment of Defense.’’. 
(4) PLACEMENT IN OSD.—Section 131(b)(2) of 
title 10, United States Code, is amended— 
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(A) 
by 
redesignating 
paragraphs 
(3) 
through (8) as paragraphs (4) through (9), re-
spectively; and 
(B) by inserting after paragraph (2) the 
following new paragraph (3): 
‘‘(3) The Deputy Chief Management Officer of 
the Department of Defense.’’. 
(b) ASSIGNMENT
OF MANAGEMENT DUTIES
AND 
DESIGNATION OF THE CHIEF MANAGEMENT OFFICERS 
OF THE MILITARY DEPARTMENTS.— 
(1) The Secretary of a military department 
shall assign duties and authorities relating to the 
management of the business operations of such mili-
tary department. 
(2) The Secretary of a military department, in 
assigning duties and authorities under paragraph 
(1) shall designate the Under Secretary of such mili-
tary department to have the primary management 
responsibility for business operations, to be known in 
the performance of such duties as the Chief Manage-
ment Officer. 
(3) The Secretary shall assign such duties and 
authorities to the Chief Management Officer as are 
necessary for that official to effectively and effi-
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ciently organize the business operations of the mili-
tary department concerned. 
(4) The Chief Management Officer of each mili-
tary department shall promptly provide such infor-
mation relating to the business operations of such 
department to the Chief Management Officer and 
Deputy Chief Management Officer of the Depart-
ment of Defense as is necessary to assist those offi-
cials in the performance of their duties. 
(c) MANAGEMENT OF DEFENSE BUSINESS TRANS-
FORMATION AGENCY.—Section 192(e)(2) of title 10, 
United States Code, is amended by striking ‘‘that the 
Agency’’ and all that follows and inserting ‘‘that the Di-
rector of the Agency shall report directly to the Deputy 
Chief Management Officer of the Department of De-
fense.’’. 
(d) STRATEGIC MANAGEMENT PLAN REQUIRED.— 
(1) REQUIREMENT.—The Secretary of Defense, 
acting through the Chief Management Officer of the 
Department of Defense, shall develop a strategic 
management plan for the Department of Defense. 
(2) MATTERS COVERED.—Such plan shall in-
clude, at a minimum, detailed descriptions of— 
(A) performance goals and measures for 
improving and evaluating the overall efficiency 
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and effectiveness of the business operations of 
the Department of Defense and achieving an in-
tegrated management system for business sup-
port areas within the Department of Defense; 
(B) key initiatives to be undertaken by the 
Department of Defense to achieve the perform-
ance goals under subparagraph (A), together 
with related resource needs; 
(C) procedures to monitor the progress of 
the Department of Defense in meeting perform-
ance goals and measures under subparagraph 
(A); 
(D) procedures to review and approve 
plans and budgets for changes in business oper-
ations, including any proposed changes to poli-
cies, procedures, processes, and systems, to en-
sure the compatibility of such plans and budg-
ets with the strategic management plan of the 
Department of Defense; and 
(E) procedures to oversee the development 
of, and review and approve, all budget requests 
for defense business systems. 
(3) UPDATES.—The Secretary of Defense, act-
ing through the Chief Management Officer, shall up-
date the strategic management plan no later than 
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July 1, 2009, and every two years thereafter and 
provide a copy to the Committees on Armed Services 
of the Senate and the House of Representatives. 
(e) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall provide to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
implementation of this section and a copy of the strategic 
management plan required by subsection (d). 
SEC. 905. REVISION IN GUIDANCE RELATING TO COMBAT-
ANT COMMAND ACQUISITION AUTHORITY. 
Subparagraph (B) of section 905(b)(1) of the John 
Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109–364; 120 Stat. 2353) is 
amended by striking ‘‘and mutually supportive of’’. 
SEC. 906. DEPARTMENT OF DEFENSE BOARD OF ACTU-
ARIES. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Chapter 7 of title 10, United 
States Code, is amended by inserting after section 
182 the following new section: 
‘‘§ 183. Department of Defense Board of Actuaries 
‘‘(a) IN GENERAL.—There shall be in the Depart-
ment of Defense a Department of Defense Board of Actu-
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aries (hereinafter in this section referred to as the 
‘Board’). 
‘‘(b) MEMBERS.—(1) The Board shall consist of 
three members who shall be appointed by the Secretary 
of Defense from among qualified professional actuaries 
who are members of the Society of Actuaries. 
‘‘(2) The members of the Board shall serve for a term 
of 15 years, except that a member of the Board appointed 
to fill a vacancy occurring before the end of the term for 
which the member’s predecessor was appointed shall only 
serve until the end of such term. A member may serve 
after the end of the member’s term until the member’s 
successor takes office. 
‘‘(3) A member of the Board may be removed by the 
Secretary of Defense only for misconduct or failure to per-
form functions vested in the Board. 
‘‘(4) A member of the Board who is not an employee 
of the United States is entitled to receive pay at the daily 
equivalent of the annual rate of basic pay of the highest 
rate of basic pay then currently being paid under the Gen-
eral Schedule of subchapter III of chapter 53 of title 5 
for each day the member is engaged in the performance 
of the duties of the Board and is entitled to travel ex-
penses, including a per diem allowance, in accordance with 
section 5703 of that title in connection with such duties. 
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‘‘(c) DUTIES.—The Board shall have the following 
duties: 
‘‘(1) To review valuations of the Department of 
Defense Military Retirement Fund in accordance 
with section 1465(c) of this title and submit to the 
President and Congress, not less often than once 
every four years, a report on the status of that 
Fund, including such recommendations for modifica-
tions to the funding or amortization of that Fund as 
the Board considers appropriate and necessary to 
maintain that Fund on a sound actuarial basis. 
‘‘(2) To review valuations of the Department of 
Defense Education Benefits Fund in accordance 
with section 2006(e) of this title and make rec-
ommendations to the President and Congress on 
such modifications to the funding or amortization of 
that Fund as the Board considers appropriate to 
maintain that Fund on a sound actuarial basis. 
‘‘(3) To review valuations of such other funds 
as the Secretary of Defense shall specify for pur-
poses of this section and make recommendations to 
the President and Congress on such modifications to 
the funding or amortization of such funds as the 
Board considers appropriate to maintain such funds 
on a sound actuarial basis. 
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‘‘(d) RECORDS.—The Secretary of Defense shall en-
sure that the Board has access to such records regarding 
the funds referred to in subsection (c) as the Board shall 
require to determine the actuarial status of such funds. 
‘‘(e) REPORTS.—(1) The Board shall submit to the 
Secretary of Defense on an annual basis a report on the 
actuarial status of each of the following: 
‘‘(A) The Department of Defense Military Re-
tirement Fund. 
‘‘(B) The Department of Defense Education 
Benefits Fund. 
‘‘(C) Each other fund specified by Secretary 
under subsection (c)(3). 
‘‘(2) The Board shall also furnish its advice and opin-
ion on matters referred to it by the Secretary.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 7 of such title is 
amended by inserting after the item relating to sec-
tion 182 the following new item: 
‘‘183. Department of Defense Board of Actuaries’’. 
(3) INITIAL SERVICE AS BOARD MEMBERS.— 
Each member of the Department of Defense Retire-
ment Board of Actuaries or the Department of De-
fense Education Benefits Board of Actuaries as of 
the date of the enactment of this Act shall serve as 
an initial member of the Department of Defense 
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Board of Actuaries under section 183 of title 10, 
United States Code (as added by paragraph (1)), 
from that date until the date otherwise provided for 
the completion of such individual’s term as a mem-
ber of the Department of Defense Retirement Board 
of Actuaries or the Department of Defense Edu-
cation Benefits Board of Actuaries, as the case may 
be, unless earlier removed by the Secretary of De-
fense. 
(b) TERMINATION OF EXISTING BOARDS OF ACTU-
ARIES.— 
(1) DEPARTMENT
OF
DEFENSE
RETIREMENT 
BOARD OF ACTUARIES.—(A) Section 1464 of title 
10, United States Code, is repealed. 
(B) The table of sections at the beginning of 
chapter 74 of such title is amended by striking the 
item relating to section 1464. 
(2) DEPARTMENT
OF
DEFENSE
EDUCATION 
BENEFITS BOARD OF ACTUARIES.—Section 2006 of 
such title is amended— 
(A) in subsection (c)(1), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’; 
(B) by striking subsection (e); 
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(C) by redesignating subsections (f), (g), 
and (h) as subsections (e), (f), and (g), respec-
tively; 
(D) in subsection (e), as redesignated by 
subparagraph (C), by striking ‘‘subsection (g)’’ 
in paragraph (5) and inserting ‘‘subsection (f)’’; 
and 
(E) in subsection (f), as so redesignated— 
(i) in paragraph (2)(A), by striking 
‘‘subsection (f)(3)’’ and inserting ‘‘sub-
section (e)(3)’’; and 
(ii) in paragraph (2)(B), by striking 
‘‘subsection (f)(4)’’ and inserting ‘‘sub-
section (e)(4)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1175(h)(4) of title 10, United 
States Code, is amended by striking ‘‘Retirement’’ 
the first place it appears. 
(2) Section 1460(b) of such title is amended by 
striking ‘‘Retirement’’. 
(3) Section 1466(c)(3) of such title is amended 
by striking ‘‘Retirement’’. 
(4) Section 12521(6) of such title is amended 
by striking ‘‘Department of Defense Education Ben-
efits Board of Actuaries referred to in section 
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2006(e)(1) of this title’’ and inserting ‘‘Department 
of Defense Board of Actuaries under section 183 of 
this title’’. 
SEC. 907. MODIFICATION OF BACKGROUND REQUIREMENT 
OF INDIVIDUALS APPOINTED AS UNDER SEC-
RETARY OF DEFENSE FOR ACQUISITION, 
TECHNOLOGY, AND LOGISTICS. 
Section 133(a) of title 10, United States Code, is 
amended by striking ‘‘in the private sector’’. 
SEC. 908. ASSISTANT SECRETARIES OF THE MILITARY DE-
PARTMENTS 
FOR 
ACQUISITION 
MATTERS; 
PRINCIPAL MILITARY DEPUTIES. 
(a) DEPARTMENT OF THE ARMY.—Section 3016(b) 
of title 10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(5)(A) One of the Assistant Secretaries shall be the 
Assistant Secretary of the Army for Acquisition, Tech-
nology, and Logistics. The principal duty of the Assistant 
Secretary shall be the overall supervision of acquisition, 
technology, and logistics matters of the Department of the 
Army. 
‘‘(B) The Assistant Secretary shall have a Principal 
Military Deputy, who shall be a lieutenant general of the 
Army on active duty. The Principal Military Deputy shall 
be appointed from among officers who have significant ex-
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perience in the areas of acquisition and program manage-
ment. The position of Principal Military Deputy shall be 
designated as a critical acquisition position under section 
1733 of this title.’’. 
(b) DEPARTMENT OF THE NAVY.—Section 5016(b) 
of such title is amended by adding at the end the following 
new paragraph: 
‘‘(4)(A) One of the Assistant Secretaries shall be the 
Assistant Secretary of the Navy for Research, Develop-
ment, and Acquisition. The principal duty of the Assistant 
Secretary shall be the overall supervision of research, de-
velopment, and acquisition matters of the Department of 
the Navy. 
‘‘(B) The Assistant Secretary shall have a Principal 
Military Deputy, who shall be a vice admiral of the Navy 
or a lieutenant general of the Marine Corps on active duty. 
The Principal Military Deputy shall be appointed from 
among officers who have significant experience in the 
areas of acquisition and program management. The posi-
tion of Principal Military Deputy shall be designated as 
a critical acquisition position under section 1733 of this 
title.’’. 
(c) DEPARTMENT
OF
THE AIR FORCE.—Section 
8016(b) of such title is amended by adding at the end 
the following new paragraph: 
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‘‘(4)(A) One of the Assistant Secretaries shall be the 
Assistant Secretary of the Air Force for Acquisition. The 
principal duty of the Assistant Secretary shall be the over-
all supervision of acquisition matters of the Department 
of the Air Force. 
‘‘(B) The Assistant Secretary shall have a Principal 
Military Deputy, who shall be a lieutenant general of the 
Air Force on active duty. The Principal Military Deputy 
shall be appointed from among officers who have signifi-
cant experience in the areas of acquisition and program 
management. The position of Principal Military Deputy 
shall be designated as a critical acquisition position under 
section 1733 of this title.’’. 
(d) DUTY OF PRINCIPAL MILITARY DEPUTIES TO IN-
FORM SERVICE CHIEFS ON MAJOR DEFENSE ACQUISI-
TION PROGRAMS.—Each Principal Military Deputy to a 
service acquisition executive shall be responsible for keep-
ing the Chief of Staff of the Armed Forces concerned in-
formed of the progress of major defense acquisition pro-
grams. 
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SEC. 909. SENSE OF CONGRESS ON TERM OF OFFICE OF 
THE DIRECTOR OF OPERATIONAL TEST AND 
EVALUATION. 
It is the sense of Congress that the term of office 
of the Director of Operational Test and Evaluation of the 
Department of Defense should be not less than five years. 
Subtitle B—Space Activities 
SEC. 911. SPACE PROTECTION STRATEGY. 
(a) SENSE OF CONGRESS.—It is the Sense of Con-
gress that the United States should place greater priority 
on the protection of national security space systems. 
(b) STRATEGY.—The Secretary of Defense, in con-
junction with the Director of National Intelligence, shall 
develop a strategy, to be known as the Space Protection 
Strategy, for the development and fielding by the United 
States of the capabilities that are necessary to ensure free-
dom of action in space for the United States. 
(c) MATTERS INCLUDED.—The strategy required by 
subsection (b) shall include each of the following: 
(1) An identification of the threats to, and the 
vulnerabilities of, the national security space systems 
of the United States. 
(2) A description of the capabilities currently 
contained in the program of record of the Depart-
ment of Defense and the intelligence community that 
ensure freedom of action in space. 
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(3) For each period covered by the strategy, a 
description of the capabilities that are needed for the 
period, including— 
(A) the hardware, software, and other ma-
terials or services to be developed or procured; 
(B) the management and organizational 
changes to be achieved; and 
(C) concepts of operations, tactics, tech-
niques, and procedures to be employed. 
(4) For each period covered by the strategy, an 
assessment of the gaps and shortfalls between the 
capabilities that are needed for the period and the 
capabilities currently contained in the program of 
record. 
(5) For each period covered by the strategy, a 
comprehensive plan for investment in capabilities 
that identifies specific program and technology in-
vestments to be made in that period. 
(6) A description of the current processes by 
which the systems protection requirements of the 
Department of Defense and the intelligence commu-
nity are addressed in space acquisition programs 
and during key milestone decisions, an assessment of 
the adequacy of those processes, and an identifica-
tion of the actions of the Department and the intel-
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ligence community for addressing any inadequacies 
in those processes. 
(7) A description of the current processes by 
which the Department of Defense and the intel-
ligence community program and budget for capabili-
ties (including capabilities that are incorporated into 
single programs and capabilities that span multiple 
programs), an assessment of the adequacy of those 
processes, and an identification of the actions of the 
Department and the intelligence community for ad-
dressing any inadequacies in those processes. 
(8) A description of the organizational and 
management structure of the Department of De-
fense and the intelligence community for addressing 
policy, planning, acquisition, and operations with re-
spect to capabilities, a description of the roles and 
responsibilities of each organization, and an identi-
fication of the actions of the Department and the in-
telligence community for addressing any inadequa-
cies in that structure. 
(d) PERIODS COVERED.—The strategy required by 
subsection (b) shall cover the following periods: 
(1) Fiscal years 2008 through 2013. 
(2) Fiscal years 2014 through 2019. 
(3) Fiscal years 2020 through 2025. 
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(e) DEFINITIONS.—In this section— 
(1) the term ‘‘capabilities’’ means space, air-
borne, and ground systems and capabilities for space 
situational awareness and for space systems protec-
tion; and 
(2) the term ‘‘intelligence community’’ has the 
meaning given such term in section 3(4) of the Na-
tional Security Act of 1947 (50 U.S.C. 401a(4)). 
(f) REPORT; BIENNIAL UPDATE.— 
(1) REPORT.—Not later than six months after 
the date of the enactment of this Act, the Secretary 
of Defense, in conjunction with the Director of Na-
tional Intelligence, shall submit to Congress a report 
on the strategy required by subsection (b), including 
each of the matters required by subsection (c). 
(2) BIENNIAL UPDATE.—Not later than March 
15 of each even-numbered year after 2008, the Sec-
retary of Defense, in conjunction with the Director 
of National Intelligence, shall submit to Congress an 
update to the report required by paragraph (1). 
(3) CLASSIFICATION.—The report required by 
paragraph (1), and each update required by para-
graph (2), shall be in unclassified form, but may in-
clude a classified annex. 
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(g) CONFORMING REPEAL.—Section 911 of the Na-
tional Defense Authorization Act for Fiscal Year 2006 
(Public Law 109–163; 119 Stat. 3405; 10 U.S.C. 2271 
note) is repealed. 
SEC. 912. BIENNIAL REPORT ON MANAGEMENT OF SPACE 
CADRE WITHIN THE DEPARTMENT OF DE-
FENSE. 
(a) IN GENERAL.—Chapter 23 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 490. Space cadre management: biennial report 
‘‘(a) REQUIREMENT.—The Secretary of Defense and 
each Secretary of a military department shall develop 
metrics and use these metrics to identify, track, and man-
age space cadre personnel within the Department of De-
fense to ensure the Department has sufficient numbers of 
personnel with the expertise, training, and experience to 
meet current and future national security space needs. 
‘‘(b) BIENNIAL REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this section, and 
every even-numbered year thereafter, the Secretary 
of Defense shall submit to the congressional defense 
committees a report on the management of the space 
cadre. 
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‘‘(2) MATTERS
INCLUDED.—The report re-
quired by paragraph (1) shall include— 
‘‘(A) the number of active duty, reserve 
duty, and government civilian space-coded bil-
lets that— 
‘‘(i) are authorized or permitted to be 
maintained for each military department 
and defense agency; 
‘‘(ii) are needed or required for each 
military department and defense agency 
for the year in which the submission of the 
report is required; and 
‘‘(iii) are needed or required for each 
military department and defense agency 
for each of the five years following the date 
of the submission of the report; 
‘‘(B) the actual number of active duty, re-
serve duty, and government civilian personnel 
that are coded or classified as space cadre per-
sonnel within the Department of Defense, in-
cluding the military departments and defense 
agencies; 
‘‘(C) the number of personnel recruited or 
hired as accessions to serve in billets coded or 
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classified as space cadre personnel for each 
military department and defense agency; 
‘‘(D) the number of personnel serving in 
billets coded or classified as space cadre per-
sonnel that discontinued serving each military 
department and defense agency during the pre-
ceding calendar year; 
‘‘(E) for each of the reporting require-
ments in subparagraphs (A) through (D), fur-
ther classification of the number of personnel 
by— 
‘‘(i) space operators, acquisition per-
sonnel, engineers, scientists, program man-
agers, and other space-related areas identi-
fied by the Department; 
‘‘(ii) expertise or technical specializa-
tion area— 
‘‘(I) such as communications, 
missile warning, spacelift, and any 
other space-related specialties identi-
fied by the Department or classifica-
tions used by the Department; and 
‘‘(II) 
consistent 
with 
section 
1721 of this title for acquisition per-
sonnel; 
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‘‘(iii) rank for active duty and reserve 
duty personnel and grade for government 
civilian personnel; 
‘‘(iv) qualification, expertise, or pro-
ficiency level consistent with service and 
agency-defined qualification, expertise, or 
proficiency levels; and 
‘‘(v) any other such space-related clas-
sification categories used by the Depart-
ment or military departments; and 
‘‘(F) any other metrics identified by the 
Department to improve the identification, 
tracking, training, and management of space 
cadre personnel. 
‘‘(3) ASSESSMENTS.—The report required by 
paragraph (1) shall also include the Secretary’s as-
sessment of the state of the Department’s space 
cadre, the Secretary’s assessment of the space cad-
res of the military departments, and a description of 
efforts to ensure the Department has a space cadre 
sufficient to meet current and future national secu-
rity space needs.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘490. Space cadre management: biennial report.’’. 
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SEC. 913. ADDITIONAL REPORT ON OVERSIGHT OF ACQUI-
SITION FOR DEFENSE SPACE PROGRAMS. 
Section 911(b)(1) of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Public Law 
107–314; 116 Stat. 2621) is amended by inserting ‘‘, and 
March 15, 2008,’’ after ‘‘March 15, 2003,’’. 
Subtitle C—Chemical 
Demilitarization Program 
SEC. 921. CHEMICAL DEMILITARIZATION CITIZENS ADVI-
SORY COMMISSIONS. 
(a) FUNCTIONS.—Section 172 of the National De-
fense Authorization Act for Fiscal Year 1993 (50 U.S.C. 
1521 note) is amended— 
(1) in each of subsections (b) and (f), by strik-
ing ‘‘Assistant Secretary of the Army (Research, De-
velopment and Acquisition)’’ and inserting ‘‘Assist-
ant Secretary of the Army (Acquisition, Logistics, 
and Technology)’’; and 
(2) in subsection (g), by striking ‘‘Assistant 
Secretary of the Army (Research, Development, and 
Acquisition)’’ and inserting ‘‘Assistant Secretary of 
the Army (Acquisition, Logistics, and Technology)’’. 
(b) TERMINATION.—Such section is further amended 
in subsection (h) by striking ‘‘after the stockpile located 
in that commission’s State has been destroyed’’ and in-
serting ‘‘after the closure activities required pursuant to 
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regulations promulgated by the Administrator of the Envi-
ronmental Protection Agency pursuant to the Solid Waste 
Disposal Act (42 U.S.C. 6901 et seq.) have been com-
pleted for the chemical agent destruction facility in the 
commission’s State, or upon the request of the Governor 
of the commission’s State, whichever occurs first’’. 
SEC. 922. SENSE OF CONGRESS ON COMPLETION OF DE-
STRUCTION OF UNITED STATES CHEMICAL 
WEAPONS STOCKPILE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction, done 
at Paris on January 13, 1993 (commonly referred to 
as the ‘‘Chemical Weapons Convention’’), requires 
that destruction of the entire United States chemical 
weapons stockpile be completed by not later than 
April 29, 2007. 
(2) In 2006, under the terms of the Chemical 
Weapons Convention, the United States requested 
and received a one-time, 5-year extension of its 
chemical weapons destruction deadline to April 29, 
2012. 
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(7) Section 921(b)(3) of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 
2007 (Public Law 109–364; 120 Stat. 2359) con-
tained a sense of Congress urging the Secretary of 
Defense to ensure the elimination of the United 
States chemical weapons stockpile in the shortest 
time possible, consistent with the requirement to 
protect public health, safety, and the environment. 
(8) Section 921(b)(4) of that Act contained a 
sense of Congress urging the Secretary of Defense 
to propose a credible treatment and disposal process 
with the support of affected communities. In this re-
gard, any such process should provide for sufficient 
communication and consultation between representa-
tives of the Department of Defense and representa-
tives of affected States and communities. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the United States is, and must remain, 
committed to making every effort to safely dispose 
of its entire chemical weapons stockpile by April 
2012, the current destruction deadline provided 
under the Chemical Weapons Convention, or as soon 
thereafter as possible, and must carry out all of its 
other obligations under the Convention; and 
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(2) the Secretary of Defense should make every 
effort to plan for, and to request in the annual 
budget of the President submitted to Congress ade-
quate funding to complete, the elimination of the 
United States chemical weapons stockpile in accord-
ance with United States obligations under the Chem-
ical Weapons Convention and in a manner that will 
protect public health, safety, and the environment, 
as required by law. 
(c) REPORTS REQUIRED.— 
(1) IN GENERAL.—Not later than March 15, 
2008, and every 180 days thereafter until the year 
in which the United States completes the destruction 
of its entire stockpile of chemical weapons under the 
terms of the Chemical Weapons Convention, the Sec-
retary of Defense shall submit to the members and 
committees of Congress referred to in paragraph (3) 
a report on the implementation by the United States 
of its chemical weapons destruction obligations 
under the Chemical Weapons Convention. 
(2) ELEMENTS.—Each report under paragraph 
(1) shall include the following: 
(A) The anticipated schedule at the time of 
such report for the completion of destruction of 
chemical agents, munitions, and materiel at 
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HR 4986 RDS 
each chemical weapons demilitarization facility 
in the United States. 
(B) A description of the options and alter-
natives for accelerating the completion of chem-
ical weapons destruction at each such facility, 
particularly in time to meet the destruction 
deadline of April 29, 2012, currently provided 
by the Chemical Weapons Convention, and by 
December 31, 2017. 
(C) A description of the funding required 
to achieve each of the options for destruction 
described under subparagraph (B), and a de-
tailed life-cycle cost estimate for each of the af-
fected facilities included in each such funding 
profile. 
(D) A description of all actions being 
taken by the United States to accelerate the de-
struction of its entire stockpile of chemical 
weapons, agents, and materiel in order to meet 
the current destruction deadline under the 
Chemical Weapons Convention of April 29, 
2012, or as soon thereafter as possible. 
(3) MEMBERS
AND
COMMITTEES
OF
CON-
GRESS.—The members and committees of Congress 
referred to in this paragraph are— 
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(A) the majority leader of the Senate, the 
minority leader of the Senate, and the Commit-
tees on Armed Services and Appropriations of 
the Senate; and 
(B) the Speaker of the House of Rep-
resentatives, the majority leader of the House 
of Representatives, the minority leader of the 
House of Representatives, and the Committees 
on Armed Services and Appropriations of the 
House of Representatives. 
SEC. 923. REPEAL OF CERTAIN QUALIFICATIONS REQUIRE-
MENT FOR DIRECTOR OF CHEMICAL DEMILI-
TARIZATION MANAGEMENT ORGANIZATION. 
Section 1412(e)(3) of the Department of Defense Au-
thorization Act, 1986 (50 U.S.C. 1521(e)(3)) is amend-
ed— 
(1) in subparagraph (A), by adding ‘‘and’’ at 
the end; 
(2) by striking subparagraph (B); and 
(3) by redesignating subparagraph (C) as sub-
paragraph (B). 
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SEC. 924. MODIFICATION OF TERMINATION OF ASSISTANCE 
TO STATE AND LOCAL GOVERNMENTS AFTER 
COMPLETION OF THE DESTRUCTION OF THE 
UNITED STATES CHEMICAL WEAPONS STOCK-
PILE. 
Subparagraph (B) of section 1412(c)(5) of the De-
partment of Defense Authorization Act, 1986 (50 U.S.C. 
1521(c)(5)) is amended to read as follows: 
‘‘(B) Assistance may be provided under this para-
graph for capabilities to respond to emergencies involving 
an installation or facility as described in subparagraph (A) 
until the earlier of the following: 
‘‘(i) The date of the completion of all grants 
and cooperative agreements with respect to the in-
stallation or facility for purposes of this paragraph 
between the Federal Emergency Management Agen-
cy and the State and local governments concerned. 
‘‘(ii) The date that is 180 days after the date 
of the completion of the destruction of lethal chem-
ical agents and munitions at the installation or facil-
ity.’’. 
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Subtitle D—Intelligence-Related 
Matters 
SEC. 931. TECHNICAL AMENDMENTS TO TITLE 10, UNITED 
STATES CODE, ARISING FROM ENACTMENT 
OF THE INTELLIGENCE REFORM AND TER-
RORISM PREVENTION ACT OF 2004. 
(a) REFERENCES TO HEAD OF INTELLIGENCE COM-
MUNITY.—Title 10, United States Code, is amended by 
striking ‘‘Director of Central Intelligence’’ each place it 
appears in the following provisions and inserting ‘‘Director 
of National Intelligence’’: 
(1) Section 192(c)(2). 
(2) Section 193(d)(2). 
(3) Section 193(e). 
(4) Section 201(a). 
(5) Section 201(c)(1). 
(6) Section 425(a). 
(7) Section 426(a)(3). 
(8) Section 426(b)(2). 
(9) Section 441(c). 
(10) Section 441(d). 
(11) Section 443(d). 
(12) Section 2273(b)(1). 
(13) Section 2723(a). 
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(b) REFERENCES TO HEAD OF CENTRAL INTEL-
LIGENCE AGENCY.—Such title is further amended by 
striking ‘‘Director of Central Intelligence’’ each place it 
appears in the following provisions and inserting ‘‘Director 
of the Central Intelligence Agency’’: 
(1) Section 431(b)(1). 
(2) Section 444. 
(3) Section 1089(g). 
(c) OTHER AMENDMENTS.— 
(1) SUBSECTION HEADINGS.— 
(A) SECTION 441(c).—The heading of sub-
section (c) of section 441 of such title is amend-
ed by striking ‘‘DIRECTOR OF CENTRAL INTEL-
LIGENCE’’ and inserting ‘‘DIRECTOR
OF NA-
TIONAL INTELLIGENCE’’. 
(B) SECTION
443(d).—The heading of 
subsection (d) of section 443 of such title is 
amended by striking ‘‘DIRECTOR OF CENTRAL 
INTELLIGENCE’’ and inserting ‘‘DIRECTOR OF 
NATIONAL INTELLIGENCE’’. 
(2) SECTION 201.—Section 201 of such title is 
further amended— 
(A) in subsection (b)(1), to read as follows: 
‘‘(1) In the event of a vacancy in a position re-
ferred to in paragraph (2), before appointing an in-
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dividual to fill the vacancy or recommending to the 
President an individual to be nominated to fill the 
vacancy, the Secretary of Defense shall obtain the 
concurrence of the Director of National Intelligence 
as provided in section 106(b) of the National Secu-
rity Act of 1947 (50 U.S.C. 403–6(b)).’’; and 
(B) in subsection (c)(1), by striking ‘‘Na-
tional Foreign Intelligence Program’’ and in-
serting ‘‘National Intelligence Program’’. 
Subtitle E—Roles and Missions 
Analysis 
SEC. 941. REQUIREMENT FOR QUADRENNIAL ROLES AND 
MISSIONS REVIEW. 
(a) REQUIREMENT FOR REVIEW.— 
(1) IN GENERAL.—Chapter 2 of title 10, United 
States Code, is amended by inserting after section 
118a the following new section: 
‘‘§ 118b. Quadrennial roles and missions review 
‘‘(a) REVIEW REQUIRED.—The Secretary of Defense 
shall every four years conduct a comprehensive assessment 
(to be known as the ‘quadrennial roles and missions re-
view’) of the roles and missions of the armed forces and 
the core competencies and capabilities of the Department 
of Defense to perform and support such roles and mis-
sions. 
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‘‘(b) INDEPENDENT
MILITARY
ASSESSMENT
OF 
ROLES AND MISSIONS.—(1) In each year in which the 
Secretary of Defense is required to conduct a comprehen-
sive assessment pursuant to subsection (a), the Chairman 
of the Joint Chiefs of Staff shall prepare and submit to 
the Secretary the Chairman’s assessment of the roles and 
missions of the armed forces and the assignment of func-
tions to the armed forces, together with any recommenda-
tions for changes in assignment that the Chairman con-
siders necessary to achieve maximum efficiency and effec-
tiveness of the armed forces. 
‘‘(2) The Chairman’s assessment shall be conducted 
so as to— 
‘‘(A) organize the significant missions of the 
armed forces into core mission areas that cover 
broad areas of military activity; 
‘‘(B) ensure that core mission areas are defined 
and functions are assigned so as to avoid unneces-
sary duplication of effort among the armed forces; 
and 
‘‘(C) provide the Chairman’s recommendations 
with regard to issues to be addressed by the Sec-
retary of Defense under subsection (c). 
‘‘(c) IDENTIFICATION OF CORE MISSION AREAS AND 
CORE COMPETENCIES AND CAPABILITIES.—Upon receipt 
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of the Chairman’s assessment, and after giving appro-
priate consideration to the Chairman’s recommendations, 
the Secretary of Defense shall identify— 
‘‘(1) the core mission areas of the armed forces; 
‘‘(2) the core competencies and capabilities that 
are associated with the performance or support of a 
core mission area identified pursuant to paragraph 
(1); 
‘‘(3) the elements of the Department of Defense 
(including any other office, agency, activity, or com-
mand described in section 111(b) of this title) that 
are responsible for providing the core competencies 
and capabilities required to effectively perform the 
core missions identified pursuant to paragraph (1); 
‘‘(4) any gaps in the ability of the elements (or 
other office, agency activity, or command) of the De-
partment of Defense to provide core competencies 
and capabilities required to effectively perform the 
core missions identified pursuant to paragraph (1); 
‘‘(5) any unnecessary duplication of core com-
petencies and capabilities between defense compo-
nents; and 
‘‘(6) a plan for addressing any gaps or unneces-
sary duplication identified pursuant to paragraph 
(4) or paragraph (5). 
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‘‘(d) REPORT.—The Secretary shall submit a report 
on the quadrennial roles and missions review to the Com-
mittees on Armed Services of the Senate and the House 
of Representatives. The report shall be submitted in the 
year following the year in which the review is conducted, 
but not later than the date on which the President submits 
the budget for the next fiscal year to Congress under sec-
tion 1105(a) of title 31.’’. 
(b) REPEAL OF SUPERSEDED PROVISION.—Section 
118(e) of title 10, United States Code, is amended— 
(1) by striking paragraph (2); and 
(2) by redesignating paragraph (3) as para-
graph (2). 
(c) TIMING OF QUADRENNIAL ROLES AND MISSIONS 
REVIEW.— 
(1) FIRST REVIEW.—The first quadrennial roles 
and missions review under section 118b of title 10, 
United States Code, as added by subsection (a), 
shall be conducted during 2008. 
(2) SUBSEQUENT
REVIEWS.—Subsequent re-
views shall be conducted every four years, beginning 
in 2011. 
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SEC. 942. JOINT REQUIREMENTS OVERSIGHT COUNCIL AD-
DITIONAL DUTIES RELATING TO CORE MIS-
SION AREAS. 
(a) REVISIONS IN MISSION.—Subsection (b) of sec-
tion 181 of title 10, United States Code, is amended to 
read as follows: 
‘‘(b) MISSION.—In addition to other matters assigned 
to it by the President or Secretary of Defense, the Joint 
Requirements Oversight Council shall— 
‘‘(1) assist the Chairman of the Joint Chiefs of 
Staff— 
‘‘(A) in identifying, assessing, and approv-
ing joint military requirements (including exist-
ing systems and equipment) to meet the na-
tional military strategy; and 
‘‘(B) in identifying the core mission area 
associated with each such requirement; 
‘‘(2) assist the Chairman in establishing and 
assigning priority levels for joint military require-
ments; 
‘‘(3) assist the Chairman in reviewing the esti-
mated level of resources required in the fulfillment 
of each joint military requirement and in ensuring 
that such resource level is consistent with the level 
of priority assigned to such requirement; and 
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‘‘(4) assist acquisition officials in identifying al-
ternatives to any acquisition program that meet 
joint military requirements for the purposes of sec-
tion 2366a(a)(4), section 2366b(b), and section 
2433(e)(2) of this title.’’. 
(b) ADVISORS.—Section 181 of such title is amend-
ed— 
(1) by redesignating subsection (d) as sub-
section (f); and 
(2) by inserting after subsection (c) the fol-
lowing new subsection (d): 
‘‘(d) ADVISORS.—The Under Secretary of Defense 
for Acquisition, Technology, and Logistics, the Under Sec-
retary of Defense (Comptroller), and the Director of the 
Office of Program Analysis and Evaluation shall serve as 
advisors to the Council on matters within their authority 
and expertise.’’. 
(c) ORGANIZATION.—Section 181 of such title is fur-
ther amended by inserting after subsection (d) (as inserted 
by subsection (b)) the following new subsection (e): 
‘‘(e) ORGANIZATION.—The Joint Requirements Over-
sight Council shall conduct periodic reviews of joint mili-
tary requirements within a core mission area of the De-
partment of Defense. In any such review of a core mission 
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area, the officer or official assigned to lead the review shall 
have a deputy from a different military department.’’. 
(d) DEFINITIONS.—Section 181 of such title is fur-
ther amended by adding at the end the following new sub-
section: 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘joint military requirement’ 
means a capability necessary to fulfill a gap in a 
core mission area of the Department of Defense. 
‘‘(2) The term ‘core mission area’ means a core 
mission area of the Department of Defense identi-
fied under the most recent quadrennial roles and 
missions review pursuant to section 118b of this 
title.’’. 
(e) CONSULTATION.—Section 2433(e)(2) of such title 
is amended by inserting ‘‘, after consultation with the 
Joint Requirements Oversight Council regarding program 
requirements,’’ after ‘‘Secretary of Defense’’ in the matter 
preceding subparagraph (A). 
(f) DEADLINES.—Effective June 1, 2009, all joint 
military requirements documents of the Joint Require-
ments Oversight Council produced to carry out its mission 
under section 181(b)(1) of title 10, United States Code, 
shall reference the core mission areas organized and de-
fined under section 118b of such title. Not later than Oc-
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tober 1, 2009, all such documents produced before June 
1, 2009, shall reference such structure. 
SEC. 943. REQUIREMENT FOR CERTIFICATION OF MAJOR 
SYSTEMS PRIOR TO TECHNOLOGY DEVELOP-
MENT. 
(a) REQUIREMENT FOR CERTIFICATION.— 
(1) IN
GENERAL.—Chapter 139 of title 10, 
United States Code, is amended by inserting after 
section 2366a the following new section: 
‘‘§ 2366b. Major defense acquisition programs: certifi-
cation required before Milestone A or 
Key Decision Point A approval 
‘‘(a) CERTIFICATION.—A major defense acquisition 
program may not receive Milestone A approval, or Key 
Decision Point A approval in the case of a space program, 
until the Milestone Decision Authority certifies, after con-
sultation with the Joint Requirements Oversight Council 
on matters related to program requirements and military 
needs— 
‘‘(1) that the system fulfills an approved initial 
capabilities document; 
‘‘(2) that the system is being executed by an 
entity with a relevant core competency as identified 
by the Secretary of Defense under section 118b of 
this title; 
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‘‘(3) if the system duplicates a capability al-
ready provided by an existing system, the duplica-
tion provided by such system is necessary and ap-
propriate; and 
‘‘(4) that a cost estimate for the system has 
been submitted and that the level of resources re-
quired to develop and procure the system is con-
sistent with the priority level assigned by the Joint 
Requirements Oversight Council. 
‘‘(b) NOTIFICATION.—With respect to a major sys-
tem certified by the Milestone Decision Authority under 
subsection (a), if the projected cost of the system, at any 
time prior to Milestone B approval, exceeds the cost esti-
mate for the system submitted at the time of the certifi-
cation by at least 25 percent, the program manager for 
the system concerned shall notify the Milestone Decision 
Authority. The Milestone Decision Authority, in consulta-
tion with the Joint Requirements Oversight Council on 
matters related to program requirements and military 
needs, shall determine whether the level of resources re-
quired to develop and procure the system remains con-
sistent with the priority level assigned by the Joint Re-
quirements Oversight Council. The Milestone Decision Au-
thority may withdraw the certification concerned or re-
scind Milestone A approval (or Key Decision Point A ap-
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proval in the case of a space program) if the Milestone 
Decision Authority determines that such action is in the 
interest of national defense. 
‘‘ (c)DEFINITIONS.—In this section: 
‘‘(1) The term ‘major system’ has the meaning 
provided in section 2302(5) of this title. 
‘‘(2) The term ‘initial capabilities document’ 
means any capabilities requirement document ap-
proved by the Joint Requirements Oversight Council 
that establishes the need for a materiel approach to 
resolve a capability gap. 
‘‘(3) The term ‘technology development pro-
gram’ means a coordinated effort to assess tech-
nologies and refine user performance parameters to 
fulfill a capability gap identified in an initial capa-
bilities document. 
‘‘(4) The term ‘entity’ means an entity listed in 
section 125a(a) of this title. 
‘‘(5) The term ‘Milestone B approval’ has the 
meaning provided that term in section 2366(e)(7) of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘2366b. Major defense acquisition programs: certification required before Mile-
stone A or Key Decision Point A approval.’’. 
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(b) REVIEW OF DEPARTMENT OF DEFENSE ACQUISI-
TION DIRECTIVES.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall review Department of Defense Directive 5000.1 and 
associated guidance, and the manner in which such direc-
tive and guidance have been implemented, and take appro-
priate steps to ensure that the Department does not com-
mence a technology development program for a major 
weapon system without Milestone A approval (or Key De-
cision Point A approval in the case of a space program). 
(c) EFFECTIVE DATE.—Section 2366b of title 10, 
United States Code, as added by subsection (a), shall 
apply to major systems on and after March 1, 2008. 
SEC. 944. PRESENTATION OF FUTURE-YEARS MISSION 
BUDGET BY CORE MISSION AREA. 
(a) TIME OF SUBMISSION OF FUTURE-YEARS MIS-
SION BUDGET.—The second sentence of section 222(a) of 
title 10, United States Code, is amended to read as fol-
lows: ‘‘That budget shall be submitted for any fiscal year 
with the future-years defense program submitted under 
section 221 of this title.’’. 
(b) ORGANIZATION
OF
FUTURE-YEARS
MISSION 
BUDGET.—The second sentence of section 222(b) of such 
title is amended by striking ‘‘on the basis’’ and all that 
follows through the end of the sentence and inserting the 
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following: ‘‘on the basis of both major force programs and 
the core mission areas identified under the most recent 
quadrennial roles and missions review pursuant to section 
118b of this title.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to the future-years 
mission budget for fiscal year 2010 and each fiscal year 
thereafter. 
Subtitle F—Other Matters 
SEC. 951. DEPARTMENT OF DEFENSE CONSIDERATION OF 
EFFECT OF CLIMATE CHANGE ON DEPART-
MENT FACILITIES, CAPABILITIES, AND MIS-
SIONS. 
(a) CONSIDERATION
OF
CLIMATE
CHANGE
EF-
FECT.—Section 118 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(g) CONSIDERATION
OF
EFFECT
OF
CLIMATE 
CHANGE
ON DEPARTMENT FACILITIES, CAPABILITIES, 
AND MISSIONS.—(1) The first national security strategy 
and national defense strategy prepared after the date of 
the enactment of the National Defense Authorization Act 
for Fiscal Year 2008 shall include guidance for military 
planners— 
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‘‘(A) to assess the risks of projected climate 
change to current and future missions of the armed 
forces; 
‘‘(B) to update defense plans based on these as-
sessments, including working with allies and part-
ners to incorporate climate mitigation strategies, ca-
pacity building, and relevant research and develop-
ment; and 
‘‘(C) to develop the capabilities needed to re-
duce future impacts. 
‘‘(2) The first quadrennial defense review prepared 
after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2008 shall also examine 
the capabilities of the armed forces to respond to the con-
sequences of climate change, in particular, preparedness 
for natural disasters from extreme weather events and 
other missions the armed forces may be asked to support 
inside the United States and overseas. 
‘‘(3) For planning purposes to comply with the re-
quirements of this subsection, the Secretary of Defense 
shall use— 
‘‘(A) the mid-range projections of the fourth as-
sessment report of the Intergovernmental Panel on 
Climate Change; 
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‘‘(B) subsequent mid-range consensus climate 
projections if more recent information is available 
when the next national security strategy, national 
defense strategy, or quadrennial defense review, as 
the case may be, is conducted; and 
‘‘(C) findings of appropriate and available esti-
mations or studies of the anticipated strategic, so-
cial, political, and economic effects of global climate 
change and the implications of such effects on the 
national security of the United States. 
‘‘(4) In this subsection, the term ‘national security 
strategy’ means the annual national security strategy re-
port of the President under section 108 of the National 
Security Act of 1947 (50 U.S.C. 404a).’’. 
(b) IMPLEMENTATION.—The Secretary of Defense 
shall ensure that subsection (g) of section 118 of title 10, 
United States Code, as added by subsection (a), is imple-
mented in a manner that does not have a negative impact 
on the national security of the United States. 
SEC. 952. INTERAGENCY POLICY COORDINATION. 
(a) PLAN REQUIRED.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall develop and submit to Congress a plan to 
improve and reform the Department of Defense’s partici-
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pation in and contribution to the interagency coordination 
process on national security issues. 
(b) ELEMENTS.—The elements of the plan shall in-
clude the following: 
(1) Assigning either the Under Secretary of De-
fense for Policy or another official to be the lead pol-
icy official for improving and reforming the inter-
agency coordination process on national security 
issues for the Department of Defense, with an expla-
nation of any decision to name an official other than 
the Under Secretary and the relative advantages and 
disadvantages of such decision. 
(2) Giving the official assigned under para-
graph (1) the following responsibilities: 
(A) To be the lead person at the Depart-
ment of Defense for the development of policy 
affecting the national security interagency proc-
ess. 
(B) To serve, or designate a person to 
serve, as the representative of the Department 
of Defense in Federal Government forums es-
tablished to address interagency policy, plan-
ning, or reforms. 
(C) To advocate, on behalf of the Sec-
retary, for greater interagency coordination and 
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contributions in the execution of the National 
Security Strategy and particularly specific oper-
ational objectives undertaken pursuant to that 
strategy. 
(D) To make recommendations to the Sec-
retary of Defense on changes to existing De-
partment of Defense regulations or laws to im-
prove the interagency process. 
(E) To serve as the coordinator for all 
planning and training assistance that is— 
(i) designed to improve the inter-
agency process or the capabilities of other 
agencies to work with the Department of 
Defense; and 
(ii) provided by the Department of 
Defense at the request of other agencies. 
(F) To serve as the lead official in Depart-
ment of Defense for the development of 
deployable joint interagency task forces. 
(c) FACTORS TO BE CONSIDERED.—In drafting the 
plan, the Secretary of Defense shall also consider the fol-
lowing factors: 
(1) How the official assigned under subsection 
(b)(1) shall provide input to the Secretary of De-
fense on an ongoing basis on how to incorporate the 
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need to coordinate with other agencies into the es-
tablishment and reform of combatant commands. 
(2) How such official shall develop and make 
recommendations to the Secretary of Defense on a 
regular or an ongoing basis on changes to military 
and civilian personnel to improve interagency coordi-
nation. 
(3) How such official shall work with the com-
batant command that has the mission for joint 
warfighting experimentation and other interested 
agencies to develop exercises to test and validate 
interagency planning and capabilities. 
(4) How such official shall lead, coordinate, or 
participate in after-action reviews of operations, 
tests, and exercises to capture lessons learned re-
garding the functioning of the interagency process 
and how those lessons learned will be disseminated. 
(5) The role of such official in ensuring that fu-
ture defense planning guidance takes into account 
the capabilities and needs of other agencies. 
(d) RECOMMENDATION ON CHANGES IN LAW.—The 
Secretary of Defense may submit with the plan or with 
any future budget submissions recommendations for any 
changes to law that are required to enhance the ability 
of the official assigned under subsection (b)(1) in the De-
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partment of Defense to coordinate defense interagency ef-
forts or to improve the ability of the Department of De-
fense to work with other agencies. 
(e) ANNUAL REPORT.—If an official is named by the 
Secretary of Defense under subsection (b)(1), the official 
shall annually submit to Congress a report, beginning in 
the fiscal year following the naming of the official, on 
those actions taken by the Department of Defense to en-
hance national security interagency coordination, the 
views of the Department of Defense on efforts and chal-
lenges in improving the ability of agencies to work to-
gether, and suggestions on changes needed to laws or reg-
ulations that would enhance the coordination of efforts of 
agencies. 
(f) DEFINITION.—In this section, the term ‘‘inter-
agency coordination’’, within the context of Department 
of Defense involvement, means the coordination that oc-
curs between elements of the Department of Defense and 
engaged Federal Government agencies for the purpose of 
achieving an objective. 
(g) CONSTRUCTION.—Nothing in this provision shall 
be construed as preventing the Secretary of Defense from 
naming an official with the responsibilities listed in sub-
section (b) before the submission of the report required 
under this section. 
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SEC. 
953. 
EXPANSION 
OF 
EMPLOYMENT 
CREDITABLE 
UNDER SERVICE AGREEMENTS UNDER NA-
TIONAL SECURITY EDUCATION PROGRAM. 
Paragraph (2) of subsection (b) of section 802 of the 
David L. Boren National Security Education Act of 1991 
(50 U.S.C. 1902), as most recently amended by section 
945 of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 
2367), is amended— 
(1) in subparagraph (A)— 
(A) in clause (i) by striking ‘‘or’’ at the 
end; and 
(B) by adding at the end the following: 
‘‘(iii) for not less than one academic 
year in a position in the field of education 
in a discipline related to the study sup-
ported by the program if the recipient 
demonstrates to the Secretary of Defense 
that no position is available in the depart-
ments, agencies, and offices covered by 
clauses (i) and (ii); or’’; and 
(2) in subparagraph (B)— 
(A) in clause (i) by striking ‘‘or’’ at the 
end; 
(B) in clause (ii) by striking ‘‘and’’ at the 
end and inserting ‘‘or’’; and 
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(C) by adding at the end the following: 
‘‘(iii) for not less than one academic 
year in a position in the field of education 
in a discipline related to the study sup-
ported by the program if the recipient 
demonstrates to the Secretary of Defense 
that no position is available in the depart-
ments, agencies, and offices covered by 
clauses (i) and (ii); and’’. 
SEC. 954. BOARD OF REGENTS FOR THE UNIFORMED SERV-
ICES UNIVERSITY OF THE HEALTH SCIENCES. 
(a) REORGANIZATION AND AMENDMENT OF BOARD 
OF REGENTS PROVISIONS.— 
(1) IN
GENERAL.—Chapter 104 of title 10, 
United States Code, is amended by inserting after 
section 2113 the following new section: 
‘‘§ 2113a. Board of Regents 
‘‘(a) IN GENERAL.—To assist the Secretary of De-
fense in an advisory capacity, there is a Board of Regents 
of the University. 
‘‘(b) MEMBERSHIP.—The Board shall consist of— 
‘‘(1) nine persons outstanding in the fields of 
health and health education who shall be appointed 
from civilian life by the Secretary of Defense; 
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‘‘(2) the Secretary of Defense, or his designee, 
who shall be an ex officio member; 
‘‘(3) the surgeons general of the uniformed 
services, who shall be ex officio members; and 
‘‘(4) the President of the University, who shall 
be a nonvoting ex officio member. 
‘‘(c) TERM OF OFFICE.—The term of office of each 
member of the Board (other than ex officio members) shall 
be six years except that— 
‘‘(1) any member appointed to fill a vacancy oc-
curring before the expiration of the term for which 
his predecessor was appointed shall be appointed for 
the remainder of such term; and 
‘‘(2) any member whose term of office has ex-
pired shall continue to serve until his successor is 
appointed. 
‘‘(d) CHAIRMAN.—One of the members of the Board 
(other than an ex officio member) shall be designated by 
the Secretary as Chairman. He shall be the presiding offi-
cer of the Board. 
‘‘(e) COMPENSATION.—Members of the Board (other 
than ex officio members) while attending conferences or 
meetings or while otherwise performing their duties as 
members shall be entitled to receive compensation at a 
rate to be fixed by the Secretary and shall also be entitled 
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to receive an allowance for necessary travel expenses while 
so serving away from their place of residence. 
‘‘(f) MEETINGS.—The Board shall meet at least once 
a quarter.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘2113a. Board of Regents.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 2113 of title 10, United States 
Code, is amended— 
(i) in subsection (a), by striking ‘‘To 
assist’’ and all that follows through the 
end of paragraph (4); 
(ii) by striking subsections (b), (c), 
and (e); 
(iii) by redesignating subsections (d), 
(f), (g), (h), (i), and (j) as subsections (b), 
(c), (d), (e), (f), and (g), respectively; and 
(iv) in subsection (b), as so redesig-
nated, by striking ‘‘who shall also serve as 
a nonvoting ex officio member of the 
Board’’. 
(B) Section 2114(h) of such title is amend-
ed 
by 
striking 
‘‘2113(h)’’ 
and 
inserting 
‘‘2113(e)’’. 
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(b) STATUTORY REDESIGNATION OF DEAN AS PRESI-
DENT.— 
(1) Subsection 2113 of such title is further 
amended by striking ‘‘Dean’’ each place it appears 
in subsections (b) and (c)(1), as redesignated by 
subsection (a)(3), and inserting ‘‘President’’. 
(2) Section 2114(e) of such title is amended by 
striking ‘‘Dean’’ each place it appears in paragraphs 
(3) and (5). 
SEC. 955. ESTABLISHMENT OF DEPARTMENT OF DEFENSE 
SCHOOL OF NURSING. 
(a) ESTABLISHMENT PLAN REQUIRED.—Not later 
than February 1, 2008, the Secretary of Defense shall 
submit to the congressional defense committees a plan to 
establish a School of Nursing within the Uniformed Serv-
ices University of the Health Sciences. The Secretary shall 
develop the plan in consultation with the Board of Regents 
of the Uniformed Services University of the Health 
Sciences and submit the plan to the Board of Regents for 
review and to solicit the Board’s recommendations. 
(b) PROGRAMS OF INSTRUCTION.—In consultation 
with the Secretaries of the military departments, the Sec-
retary of Defense shall include in the plan required by sub-
section (a) programs of instruction for the School of Nurs-
ing that would lead to the award of a bachelor of science 
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in nursing and such other baccalaureate or graduate de-
grees in nursing as the Secretary considers appropriate. 
The plan shall also address the enrollment as students of 
enlisted members and officers of the Armed Forces and 
civilians for the purpose of commissioning them as mili-
tary nursing officers upon graduation. The graduates of 
such a program of instruction shall be fully eligible to meet 
credentialing and licensing requirements of the military 
departments and at least one State in their program of 
study. 
(c) CONSIDERATION
OF CERTAIN PROGRAMS.—In 
developing the plan under subsection (a), the Secretary 
shall consider the inclusion of the following types of pro-
grams: 
(1) A program to enroll students who already 
possess an associate degree in nursing so that they 
can earn a bachelor of science in nursing. 
(2) A program to enroll students who already 
possess other associate degrees so that they can earn 
a bachelor of science in nursing. 
(3) A program to enroll students who already 
possess an associate degree in nursing so that they 
can earn a master of science in nursing. 
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(4) A program to enroll students who already 
possess a bachelor of science in nursing so that they 
can earn a master of science in nursing. 
(d) OTHER CONSIDERATIONS.—The plan required by 
subsection (a) shall also include the following: 
(1) The results of a study of the nursing short-
age in the Department of Defense and the reasons 
for such shortages. 
(2) Details of the curriculum and degree re-
quirements for each category of students at the 
School of Nursing, if established. 
(3) An analysis of the contributions to overall 
medical readiness that will be made by the School of 
Nursing. 
(4) Proposals for the development of the School 
of Nursing to be phased in over a period of time. 
(5) Faculty requirements based on degree re-
quirements and numbers of projected students, to 
include the source and number of faculty required. 
(6) Projected number of graduates per year for 
each of the first 15 years of operation. 
(7) Predicted accession sources, military career 
paths, and service commitments and retention rates 
of School of Nursing graduates, to include the reten-
tion of enlisted personnel accessed into the school. 
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(8) Administrative and instructional facilities 
required, and the likely initial and final location of 
clinical training institutions. 
(9) Plan for accreditation by a nationally recog-
nized nursing school accrediting body. 
(10) Projected faculty, administration, instruc-
tion, and facilities costs for the School of Nursing 
beginning in fiscal year 2009 and continuing 
through fiscal year 2024, including the cost analysis 
of developing the School of Nursing and the cost of 
additional administrative support for the Uniformed 
Services University of the Health Sciences on ac-
count of the establishment of the school. 
(e) EFFECT
ON CURRENT PROGRAMS.—Notwith-
standing the development of the plan under subsection (a), 
the Secretary shall ensure that graduate degree programs 
in nursing, including advanced practice nursing, continue. 
(f) EFFECT ON OTHER RECRUITMENT EFFORTS.— 
Nothing in this section shall be construed as limiting or 
terminating any current or future program related to the 
recruitment, accession, training, or retention of military 
nurses. 
(g) ESTABLISHMENT AUTHORITY.— 
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(1) ESTABLISHMENT.—Chapter 104 of title 10, 
United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 2117. School of Nursing 
‘‘(a) ESTABLISHMENT AUTHORIZED.—The Secretary 
of Defense may establish a School of Nursing within the 
University. The School of Nursing may include a program 
that awards a bachelor of science in nursing. 
‘‘(b) PHASED DEVELOPMENT.—The School of Nurs-
ing may be developed in phases as determined appropriate 
by the Secretary.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘2117. School of Nursing.’’. 
SEC. 956. INCLUSION OF COMMANDERS OF WESTERN HEMI-
SPHERE COMBATANT COMMANDS IN BOARD 
OF VISITORS OF WESTERN HEMISPHERE IN-
STITUTE FOR SECURITY COOPERATION. 
Subparagraph (F) of section 2166(e)(1) of title 10, 
United States Code, is amended to read as follows: 
‘‘(F) The commanders of the combatant com-
mands having geographic responsibility for the 
Western Hemisphere, or the designees of those offi-
cers.’’. 
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SEC. 957. COMPTROLLER GENERAL ASSESSMENT OF REOR-
GANIZATION OF THE OFFICE OF THE UNDER 
SECRETARY OF DEFENSE FOR POLICY. 
(a) ASSESSMENT REQUIRED.—Not later than June 
1, 2008, the Comptroller General of the United States 
shall submit to the congressional defense committees a re-
port containing an assessment of the most recent reorga-
nization of the office of the Under Secretary of Defense 
for Policy, including an assessment with respect to the 
matters set forth in subsection (b). 
(b) MATTERS TO BE ASSESSED.—The matters to be 
included in the assessment required by subsection (a) are 
as follows: 
(1) The manner in which the reorganization of 
the office furthers, or will further, its stated pur-
poses in the short-term and long-term, including the 
manner in which the reorganization enhances, or will 
enhance, the ability of the Department of Defense— 
(A) to address current security priorities, 
including on-going military operations in Iraq, 
Afghanistan, and elsewhere; 
(B) to manage geopolitical defense rela-
tionships; and 
(C) to anticipate future strategic shifts in 
those relationships. 
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(2) The manner in which and the extent to 
which the reorganization adheres to generally accept-
ed principles of effective organization, such as estab-
lishing clear goals, identifying clear lines of author-
ity and accountability, and developing an effective 
human capital strategy. 
(3) The extent to which the Department has de-
veloped detailed implementation plans for the reor-
ganization, and the current status of the implemen-
tation of all aspects of the reorganization. 
(4) The extent to which the Department has 
worked to mitigate congressional concerns and ad-
dress other challenges that have arisen since the re-
organization was announced. 
(5) The manner in which the Department plans 
to evaluate progress in achieving the stated goals of 
the reorganization and what measurements, if any, 
the Department has established to assess the results 
of the reorganization. 
(6) The impact of the large increase in respon-
sibilities for the Assistant Secretary of Defense for 
Special Operations and Low Intensity Conflict and 
Interdependent Capabilities under the reorganization 
on the ability of the Assistant Secretary to carry out 
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the principal duties of the Assistant Secretary under 
law. 
(7) The possible decrease in attention given to 
special operations issues resulting from the increase 
in responsibilities for the Assistant Secretary of De-
fense for Special Operations and Low Intensity Con-
flict and Interdependent Capabilities, including re-
sponsibility under the reorganization for each of the 
following: 
(A) Strategic capabilities. 
(B) Forces transformation. 
(C) Major budget programs. 
(8) The possible diffusion of attention from 
counternarcotics, counterproliferation, and global 
threat issues resulting from the merging of those re-
sponsibilities under a single Deputy Assistant Sec-
retary 
of 
Defense 
for 
Counternarcotics, 
Counterproliferation, and Global Threats. 
(9) The impact of the reorganization on coun-
ternarcotics program execution. 
(10) The unique placement under the reorga-
nization of both functional and regional issue re-
sponsibilities under the Assistant Secretary of De-
fense for Homeland Defense and Americas’ Security 
Affairs. 
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(11) The differentiation between the respon-
sibilities of the Deputy Assistant Secretary of De-
fense for Partnership Strategy and the Deputy As-
sistant Secretary of Defense for Coalition Affairs 
and the relationship between such officials. 
SEC. 958. REPORT ON FOREIGN LANGUAGE PROFICIENCY. 
(a) IN GENERAL.—Not later than 240 days after the 
date of the enactment of this Act, and annually thereafter 
until the date referred to in subsection (d), the Secretary 
of Defense, in conjunction with the Secretary of each mili-
tary department, shall submit to the congressional defense 
committees a report on the foreign language proficiency 
of the personnel of the Department of Defense. 
(b) CONTENTS.—Each report submitted under sub-
section (a) shall include— 
(1) the number of positions, identified by each 
foreign language and dialect, for each military de-
partment and Defense Agency concerned that— 
(A) require proficiency in that foreign lan-
guage or dialect for the year in which the sub-
mission of the report is required; 
(B) are anticipated to require proficiency 
in that foreign language or dialect for each of 
the five years following the date of the submis-
sion of the report; and 
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(C) are authorized in the future-years de-
fense plan to be maintained for proficiency in a 
foreign language or dialect; 
(2) the number of personnel for each military 
department and Defense Agency, identified by each 
foreign language and dialect, that are serving in a 
position that requires proficiency in the foreign lan-
guage or dialect— 
(A) to perform the primary duty of the po-
sition; and 
(B) that meet the required level of pro-
ficiency of the Interagency Language Round-
table; 
(3) the number of personnel for each military 
department and Defense Agency, identified by each 
foreign language and dialect, that are recruited or 
hired as accessions to serve in a position that re-
quires proficiency in the foreign language or dialect; 
(4) the number of personnel for each military 
department and Defense Agency, identified by each 
foreign language and dialect, that served in a posi-
tion that requires proficiency in the foreign language 
or dialect and discontinued service during the pre-
ceding calendar year; 
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(5) the number of positions that require pro-
ficiency in a foreign language or dialect that are ful-
filled by contractors; 
(6) the percentage of work requiring linguistic 
skills that is fulfilled by personnel of the intelligence 
community (as defined in section 3(4) of the Na-
tional Security Act of 1947 (50 U.S.C. 401a(4))); 
and 
(7) an assessment of the foreign language ca-
pacity and capabilities of each military department 
and Defense Agency and of the Department of De-
fense as a whole. 
(c) NON-MILITARY PERSONNEL.—Except as pro-
vided in paragraphs (6) and (7) of subsection (b), a report 
submitted under subsection (a) shall cover only members 
of the Armed Forces on active duty and reserve duty as-
signed to the military departments concerned or to the De-
partment of Defense. 
(d) TERMINATION OF REQUIREMENT.—The duty to 
submit a report under subsection (a) shall terminate on 
December 31, 2013. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
Sec. 1001. General transfer authority. 
Sec. 1002. United States contribution to NATO common-funded budgets in fis-
cal year 2008. 
Sec. 1003. Authorization of additional emergency supplemental appropriations 
for fiscal year 2007. 
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Sec. 1004. Modification of fiscal year 2007 general transfer authority. 
Sec. 1005. Financial management transformation initiative for the Defense 
Agencies. 
Sec. 1006. Repeal of requirement for two-year budget cycle for the Department 
of Defense. 
Subtitle B—Policy Relating to Vessels and Shipyards 
Sec. 1011. Limitation on leasing of vessels. 
Sec. 1012. Policy relating to major combatant vessels of the strike forces of the 
United States Navy. 
Subtitle C—Counter-Drug Activities 
Sec. 1021. Extension of authority for joint task forces to provide support to law 
enforcement agencies conducting counter-terrorism activities. 
Sec. 1022. Expansion of authority to provide additional support for counter- 
drug activities in certain foreign countries. 
Sec. 1023. Report on counternarcotics assistance for the Government of Haiti. 
Subtitle D—Miscellaneous Authorities and Limitations 
Sec. 1031. Provision of Air Force support and services to foreign military and 
state aircraft. 
Sec. 1032. Department of Defense participation in Strategic Airlift Capability 
Partnership. 
Sec. 1033. Improved authority to provide rewards for assistance in combating 
terrorism. 
Sec. 1034. Support for non-Federal development and testing of material for 
chemical agent defense. 
Sec. 1035. Prohibition on sale of F–14 fighter aircraft and related parts. 
Subtitle E—Reports 
Sec. 1041. Extension and modification of report relating to hardened and deep-
ly buried targets. 
Sec. 1042. Report on joint modeling and simulation activities. 
Sec. 1043. Renewal of submittal of plans for prompt global strike capability. 
Sec. 1044. Report on workforce required to support the nuclear missions of the 
Navy and the Department of Energy. 
Sec. 1045. Comptroller General report on Defense Finance and Accounting 
Service response to Butterbaugh v. Department of Justice. 
Sec. 1046. Study on size and mix of airlift force. 
Sec. 1047. Report on feasibility of establishing a domestic military aviation na-
tional training center. 
Sec. 1048. Limited field user evaluations for combat helmet pad suspension 
systems. 
Sec. 1049. Study on national security interagency system. 
Sec. 1050. Report on solid rocket motor industrial base. 
Sec. 1051. Reports on establishment of a memorial for members of the Armed 
Forces who died in the air crash in Bakers Creek, Australia, 
and establishment of other memorials in Arlington National 
Cemetery. 
Subtitle F—Other Matters 
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Sec. 1061. Reimbursement for National Guard support provided to Federal 
agencies. 
Sec. 1062. Congressional Commission on the Strategic Posture of the United 
States. 
Sec. 1063. Technical and clerical amendments. 
Sec. 1064. Repeal of certification requirement. 
Sec. 1065. Maintenance of capability for space-based nuclear detection. 
Sec. 1066. Sense of Congress regarding detainees at Naval Station, Guanta-
namo Bay, Cuba. 
Sec. 1067. A report on transferring individuals detained at Naval Station, 
Guantanamo Bay, Cuba. 
Sec. 1068. Repeal of provisions in section 1076 of Public Law 109–364 relating 
to use of Armed Forces in major public emergencies. 
Sec. 1069. Standards required for entry to military installations in United 
States. 
Sec. 1070. Revised nuclear posture review. 
Sec. 1071. Termination of Commission on the Implementation of the New Stra-
tegic Posture of the United States. 
Sec. 1072. Security clearances; limitations. 
Sec. 1073. Improvements in the process for the issuance of security clearances. 
Sec. 1074. Protection of certain individuals. 
Sec. 1075. Modification of authorities on Commission to Assess the Threat to 
the United States from Electromagnetic Pulse Attack. 
Sec. 1076. Sense of Congress on Small Business Innovation Research Program. 
Sec. 1077. Revision of proficiency flying definition. 
Sec. 1078. Qualifications for public aircraft status of aircraft under contract 
with the Armed Forces. 
Sec. 1079. Communications with the Committees on Armed Services of the 
Senate and the House of Representatives. 
Sec. 1080. Retention of reimbursement for provision of reciprocal fire protec-
tion services. 
Sec. 1081. Pilot program on commercial fee-for-service air refueling support for 
the Air Force. 
Sec. 1082. Advisory panel on Department of Defense capabilities for support of 
civil authorities after certain incidents. 
Sec. 1083. Terrorism exception to immunity. 
Subtitle A—Financial Matters 
SEC. 1001. GENERAL TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.— 
(1) AUTHORITY.—Upon determination by the 
Secretary of Defense that such action is necessary in 
the national interest, the Secretary may transfer 
amounts of authorizations made available to the De-
partment of Defense in this division for fiscal year 
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2008 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 authoriza-
tion to which transferred. 
(2) LIMITATION.—Except as provided in para-
graph (3), the total amount of authorizations that 
the Secretary may transfer under the authority of 
this section may not exceed $5,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN 
MILITARY PERSONNEL AUTHORIZATIONS.—A trans-
fer of funds between military personnel authoriza-
tions under title IV shall not be counted toward the 
dollar limitation in paragraph (2). 
(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 
(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 
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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. UNITED STATES CONTRIBUTION TO NATO COM-
MON-FUNDED BUDGETS IN FISCAL YEAR 2008. 
(a) FISCAL YEAR 2008 LIMITATION.—The total 
amount contributed by the Secretary of Defense in fiscal 
year 2008 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 2007, of funds appropriated 
for fiscal years before fiscal year 2008 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. 
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(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), 
$1,031,000 for the Civil Budget. 
(2) Of the amount provided in section 301(1), 
$362,159,000 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 
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4(7) of that resolution), approved by the Senate on 
April 30, 1998. 
SEC. 1003. AUTHORIZATION OF ADDITIONAL EMERGENCY 
SUPPLEMENTAL APPROPRIATIONS FOR FIS-
CAL YEAR 2007. 
Amounts authorized to be appropriated to the De-
partment of Defense for fiscal year 2007 in the John War-
ner National Defense Authorization Act for Fiscal Year 
2007 (Public Law 109–364) are hereby adjusted, with re-
spect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are 
increased by a supplemental appropriation or by a transfer 
of funds, or decreased by a rescission, or any thereof, pur-
suant to the U.S. Troop Readiness, Veterans’ Care, 
Katrina Recovery, and Iraq Accountability Appropriations 
Act, 2007 (Public Law 110–28). 
SEC. 1004. MODIFICATION OF FISCAL YEAR 2007 GENERAL 
TRANSFER AUTHORITY. 
Section 1001(a) of the John Warner National De-
fense Authorization Act for Fiscal Year 2007 (Public Law 
109–364; 120 Stat. 2371) is amended by adding at the 
end the following new paragraph: 
‘‘(3) EXCEPTION FOR CERTAIN TRANSFERS.— 
The following transfers of funds shall be not be 
counted toward the limitation in paragraph (2) on 
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the amount that may be transferred under this sec-
tion: 
‘‘(A) The transfer of funds to the Iraq Se-
curity Forces Fund under reprogramming 
FY07–07–R PA. 
‘‘(B) The transfer of funds to the Joint 
Improvised Explosive Device Defeat Fund 
under reprogramming FY07–11 PA. 
‘‘(C) The transfer of funds back from the 
accounts referred to in subparagraphs (A) and 
(B) to restore the sources used in the 
reprogrammings referred to in such subpara-
graphs.’’. 
SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION 
INITIATIVE FOR THE DEFENSE AGENCIES. 
(a) FINANCIAL
MANAGEMENT
TRANSFORMATION 
INITIATIVE.— 
(1) IN GENERAL.—The Director of the Busi-
ness Transformation Agency of the Department of 
Defense shall carry out an initiative for financial 
management transformation in the Defense Agen-
cies. The initiative shall be known as the ‘‘Defense 
Agencies Initiative’’ (in this section referred to as 
the ‘‘Initiative’’). 
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(2) SCOPE OF AUTHORITY.—In carrying out the 
Initiative, the Director of the Business Trans-
formation Agency may require the heads of the De-
fense Agencies to carry out actions that are within 
the purpose and scope of the Initiative. 
(b) PURPOSES.—The purposes of Initiative shall be 
as follows: 
(1) To eliminate or replace financial manage-
ment systems of the Defense Agencies that are du-
plicative, redundant, or fail to comply with the 
standards set forth in subsection (d). 
(2) To transform the budget, finance, and ac-
counting operations of the Defense Agencies to en-
able the Defense Agencies to achieve accurate and 
reliable financial information needed to support fi-
nancial accountability and effective and efficient 
management decisions. 
(c) REQUIRED ELEMENTS.—The Initiative shall in-
clude, to the maximum extent practicable— 
(1) the utilization of commercial, off-the-shelf 
technologies and web-based solutions; 
(2) a standardized technical environment and 
an open and accessible architecture; and 
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(3) the implementation of common business 
processes, shared services, and common data struc-
tures. 
(d) STANDARDS.—In carrying out the Initiative, the 
Director of the Business Transformation Agency shall en-
sure that the Initiative is consistent with— 
(1) the requirements of the Business Enterprise 
Architecture and Transition Plan developed pursu-
ant to section 2222 of title 10, United States Code; 
(2) the Standard Financial Information Struc-
ture of the Department of Defense; 
(3) the Federal Financial Management Im-
provement Act of 1996 (and the amendments made 
by that Act); and 
(4) other applicable requirements of law and 
regulation. 
(e) SCOPE.—The Initiative shall be designed to pro-
vide, at a minimum, capabilities in the major process areas 
for both general fund and working capital fund operations 
of the Defense Agencies as follows: 
(1) Budget formulation. 
(2) Budget to report, including general ledger 
and trial balance. 
(3) Procure to pay, including commitments, ob-
ligations, and accounts payable. 
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(4) Order to fulfill, including billing and ac-
counts receivable. 
(5) Cost accounting. 
(6) Acquire to retire (account management). 
(7) Time and attendance and employee entitle-
ment. 
(8) Grants financial management. 
(f) CONSULTATION.—In carrying out subsections (d) 
and (e), the Director of the Business Transformation 
Agency shall consult with the Comptroller of the Depart-
ment of Defense to ensure that any financial management 
systems developed for the Defense Agencies, and any 
changes to the budget, finance, and accounting operations 
of the Defense Agencies, are consistent with the financial 
standards and requirements of the Department of De-
fense. 
(g) PROGRAM CONTROL.—In carrying out the Initia-
tive, the Director of the Business Transformation Agency 
shall establish— 
(1) a board (to be known as the ‘‘Configuration 
Control Board’’) to manage scope and cost changes 
to the Initiative; and 
(2) a program management office (to be known 
as the ‘‘Program Management Office’’) to control 
and enforce assumptions made in the acquisition 
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plan, the cost estimate, and the system integration 
contract for the Initiative, as directed by the Con-
figuration Control Board. 
(h) PLAN ON DEVELOPMENT AND IMPLEMENTATION 
OF INITIATIVE.—Not later than six months after the date 
of the enactment of this Act, the Director of the Business 
Transformation Agency shall submit to the congressional 
defense committees a plan for the development and imple-
mentation of the Initiative. The plan shall provide for the 
implementation of an initial capability under the Initiative 
as follows: 
(1) In at least one Defense Agency by not later 
than eight months after the date of the enactment 
of this Act. 
(2) In not less than five Defense Agencies by 
not later than 18 months after the date of the enact-
ment of this Act. 
SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR 
BUDGET CYCLE FOR THE DEPARTMENT OF 
DEFENSE. 
Section 1405 of the Department of Defense Author-
ization Act, 1986 (Public Law 99–145; 99 Stat. 744; 31 
U.S.C. 1105 note) is repealed. 
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Subtitle B—Policy Relating to 
Vessels and Shipyards 
SEC. 1011. LIMITATION ON LEASING OF VESSELS. 
Section 2401 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(h) The Secretary of a military department may 
make a contract for the lease of a vessel or for the provi-
sion of a service through use by a contractor of a vessel, 
the term of which is for a period of greater than two years, 
but less than five years, only if— 
‘‘(1) the Secretary has notified the Committee 
on Armed Services and the Committee on Appro-
priations of the Senate and the Committee on 
Armed Services and the Committee on Appropria-
tions of the House of Representatives of the pro-
posed contract and included in such notification— 
‘‘(A) a detailed description of the terms of 
the proposed contract and a justification for en-
tering into the proposed contract rather than 
obtaining the capability provided for by the 
lease, charter, or services involved through pur-
chase of the vessel; 
‘‘(B) a determination that entering into 
the proposed contract as a means of obtaining 
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the vessel is the most cost-effective means of 
obtaining such vessel; and 
‘‘(C) a plan for meeting the requirement 
provided by the proposed contract upon comple-
tion of the term of the lease contract; and 
‘‘(2) a period of 30 days of continuous session 
of Congress has expired following the date on which 
notice was received by such committees.’’. 
SEC. 1012. POLICY RELATING TO MAJOR COMBATANT VES-
SELS 
OF 
THE 
STRIKE 
FORCES 
OF 
THE 
UNITED STATES NAVY. 
(a) INTEGRATED NUCLEAR POWER SYSTEMS.—It is 
the policy of the United States to construct the major 
combatant vessels of the strike forces of the United States 
Navy, including all new classes of such vessels, with inte-
grated nuclear power systems. 
(b) REQUIREMENT TO REQUEST NUCLEAR VES-
SELS.—If a request is submitted to Congress in the budget 
for a fiscal year for construction of a new class of major 
combatant vessel for the strike forces of the United States, 
the request shall be for such a vessel with an integrated 
nuclear power system, unless the Secretary of Defense 
submits with the request a notification to Congress that 
the inclusion of an integrated nuclear power system in 
such vessel is not in the national interest. 
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(c) DEFINITIONS.—In this section: 
(1) MAJOR
COMBATANT
VESSELS
OF
THE 
STRIKE FORCES OF THE UNITED STATES NAVY.— 
The term ‘‘major combatant vessels of the strike 
forces of the United States Navy’’ means the fol-
lowing: 
(A) Submarines. 
(B) Aircraft carriers. 
(C) Cruisers, battleships, or other large 
surface combatants whose primary mission in-
cludes protection of carrier strike groups, expe-
ditionary strike groups, and vessels comprising 
a sea base. 
(2) INTEGRATED NUCLEAR POWER SYSTEM.— 
The term ‘‘integrated nuclear power system’’ means 
a ship engineering system that uses a naval nuclear 
reactor as its energy source and generates sufficient 
electric energy to provide power to the ship’s elec-
trical loads, including its combat systems and pro-
pulsion motors. 
(3) BUDGET.—The term ‘‘budget’’ means the 
budget that is submitted to Congress by the Presi-
dent under section 1105(a) of title 31, United States 
Code. 
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Subtitle D—Miscellaneous 
Authorities and Limitations 
SEC. 1031. PROVISION OF AIR FORCE SUPPORT AND SERV-
ICES TO FOREIGN MILITARY AND STATE AIR-
CRAFT. 
(a) PROVISION OF SUPPORT AND SERVICES.— 
(1) IN
GENERAL.—Section 9626 of title 10, 
United States Code, is amended to read as follows: 
‘‘§ 9626. Aircraft supplies and services: foreign mili-
tary or other state aircraft 
‘‘(a) PROVISION OF SUPPLIES AND SERVICES ON RE-
IMBURSABLE BASIS.—(1) The Secretary of the Air Force 
may, under such regulations as the Secretary may pre-
scribe and when in the best interests of the United States, 
provide any of the supplies or services described in para-
graph (2) to military and other state aircraft of a foreign 
country, on a reimbursable basis without an advance of 
funds, if similar supplies and services are furnished on a 
like basis to military aircraft and other state aircraft of 
the United States by the foreign country concerned. 
‘‘(2) The supplies and services described in this para-
graph are supplies and services as follows: 
‘‘(A) Routine airport services, including landing 
and takeoff assistance, servicing aircraft with fuel, 
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use of runways, parking and servicing, and loading 
and unloading of baggage and cargo. 
‘‘(B) Miscellaneous supplies, including Air 
Force-owned fuel, provisions, spare parts, and gen-
eral stores, but not including ammunition. 
‘‘(b) PROVISION OF ROUTINE AIRPORT SERVICES ON 
NON-REIMBURSABLE BASIS.—(1) Routine airport serv-
ices may be provided under this section at no cost to a 
foreign country— 
‘‘(A) if such services are provided by Air Force 
personnel and equipment without direct cost to the 
Air Force; or 
‘‘(B) if such services are provided under an 
agreement with the foreign country that provides for 
the reciprocal furnishing by the foreign country of 
routine airport services, as defined in that agree-
ment, to military and other state aircraft of the 
United States without reimbursement. 
‘‘(2) If routine airport services are provided under 
this section by a working-capital fund activity of the Air 
Force under section 2208 of this title and such activity 
is not reimbursed directly for the costs incurred by the 
activity in providing such services by reason of paragraph 
(1)(B), the working-capital fund activity shall be reim-
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bursed for such costs out of funds currently available to 
the Air Force for operation and maintenance.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 939 of such title 
is amended by striking the item relating to section 
9626 and inserting the following new item: 
‘‘9626. Aircraft supplies and services: foreign military or other state aircraft.’’. 
(b) CONFORMING AMENDMENT.—Section 9629(3) of 
such title is amended by striking ‘‘for aircraft of a foreign 
military or air attache´’’. 
SEC. 1032. DEPARTMENT OF DEFENSE PARTICIPATION IN 
STRATEGIC AIRLIFT CAPABILITY PARTNER-
SHIP. 
(a) AUTHORITY
TO
PARTICIPATE
IN
PARTNER-
SHIP.— 
(1) MEMORANDUM OF UNDERSTANDING.—The 
Secretary of Defense may enter into a multilateral 
memorandum of understanding authorizing the Stra-
tegic Airlift Capability Partnership to conduct activi-
ties necessary to accomplish its purpose, including— 
(A) the acquisition, equipping, ownership, 
and operation of strategic airlift aircraft; and 
(B) the acquisition or transfer of airlift 
and airlift-related services and supplies among 
members of the Strategic Airlift Capability 
Partnership, or between the Partnership and 
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non-member countries or international organi-
zations, on a reimbursable basis or by replace-
ment-in-kind or exchange of airlift or airlift-re-
lated services of an equal value. 
(2) PAYMENTS.—From funds available to the 
Department of Defense for such purpose, the Sec-
retary of Defense may pay the United States equi-
table share of the recurring and non-recurring costs 
of the activities and operations of the Strategic Air-
lift Capability Partnership, including costs associ-
ated with procurement of aircraft components and 
spare parts, maintenance, facilities, and training, 
and the costs of claims. 
(b) AUTHORITIES UNDER PARTNERSHIP.—In car-
rying out the memorandum of understanding entered into 
under subsection (a), the Secretary of Defense may do the 
following: 
(1) Waive reimbursement of the United States 
for the cost of the following functions performed by 
Department of Defense personnel with respect to the 
Strategic Airlift Capability Partnership: 
(A) Auditing. 
(B) Quality assurance. 
(C) Inspection. 
(D) Contract administration. 
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(E) Acceptance testing. 
(F) Certification services. 
(G) Planning, programming, and manage-
ment services. 
(2) Waive the imposition of any surcharge for 
administrative services provided by the United 
States that would otherwise be chargeable against 
the Strategic Airlift Capability Partnership. 
(3) Pay the salaries, travel, lodging, and sub-
sistence expenses of Department of Defense per-
sonnel assigned for duty to the Strategic Airlift Ca-
pability Partnership without seeking reimbursement 
or cost-sharing for such expenses. 
(c) CREDITING OF RECEIPTS.—Any amount received 
by the United States in carrying out the memorandum of 
understanding entered into under subsection (a) shall be 
credited, as elected by the Secretary of Defense, to the 
following: 
(1) The appropriation, fund, or account used in 
incurring the obligation for which such amount is re-
ceived. 
(2) An appropriation, fund, or account cur-
rently providing funds for the purposes for which 
such obligation was made. 
(d) AUTHORITY TO TRANSFER AIRCRAFT.— 
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(1) TRANSFER AUTHORITY.—The Secretary of 
Defense may transfer one strategic airlift aircraft to 
the Strategic Airlift Capability Partnership in ac-
cordance with the terms and conditions of the 
memorandum of understanding entered into under 
subsection (a). 
(2) REPORT.—Not later than 30 days before 
the date on which the Secretary transfers a strategic 
airlift aircraft under paragraph (1), the Secretary 
shall submit to the congressional defense committees 
a report on the strategic airlift aircraft to be trans-
ferred, including the type of strategic airlift aircraft 
to be transferred and the tail registration or serial 
number of such aircraft. 
(e) STRATEGIC AIRLIFT CAPABILITY PARTNERSHIP 
DEFINED.—In this section the term ‘‘Strategic Airlift Ca-
pability Partnership’’ means the strategic airlift capability 
consortium established by the United States and other 
participating countries. 
SEC. 1033. IMPROVED AUTHORITY TO PROVIDE REWARDS 
FOR 
ASSISTANCE 
IN 
COMBATING 
TER-
RORISM. 
(a) INCREASED AMOUNTS.—Section 127b of title 10, 
United States Code, is amended— 
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(1) in subsection (b), by striking ‘‘$200,000’’ 
and inserting ‘‘$5,000,000’’; 
(2) 
in 
subsection 
(c)(1)(B), 
by 
striking 
‘‘$50,000’’ and inserting ‘‘$1,000,000’’; and 
(3) 
in 
subsection 
(d)(2), 
by 
striking 
‘‘$100,000’’ and inserting ‘‘$2,000,000’’. 
(b) INVOLVEMENT OF ALLIED FORCES.—Such sec-
tion is further amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by inserting after ‘‘United States Government 
personnel’’ the following: ‘‘, or government per-
sonnel of allied forces participating in a com-
bined operation with the armed forces,’’; 
(B) in paragraph (1), by inserting after 
‘‘armed forces’’ the following: ‘‘, or of allied 
forces participating in a combined operation 
with the armed forces,’’; and 
(C) in paragraph (2), by inserting after 
‘‘armed forces’’ the following: ‘‘, or of allied 
forces participating in a combined operation 
with the armed forces’’; and 
(2) in subsection (c), by adding at the end the 
following: 
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‘‘(3)(A) Subject to subparagraphs (B) and (C), an 
official who has authority delegated under paragraph (1) 
or (2) may use that authority, acting through government 
personnel of allied forces, to offer and make rewards. 
‘‘(B) The Secretary of Defense shall prescribe policies 
and procedures for making rewards in the manner de-
scribed in subparagraph (A), which shall include guidance 
for the accountability of funds used for making rewards 
in that manner. The policies and procedures shall not take 
effect until 30 days after the date on which the Secretary 
submits the policies and procedures to the congressional 
defense committees. Rewards may not be made in the 
manner described in subparagraph (A) except under poli-
cies and procedures that have taken effect. 
‘‘(C) Rewards may not be made in the manner de-
scribed in subparagraph (A) after September 30, 2009. 
‘‘(D) Not later than April 1, 2008, the Secretary of 
Defense shall submit to the congressional defense commit-
tees a report on the implementation of this paragraph. 
The report shall identify each reward made in the manner 
described in subparagraph (A) and, for each such re-
ward— 
‘‘(i) identify the type, amount, and recipient of 
the reward; 
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‘‘(ii) explain the reason for making the reward; 
and 
‘‘(iii) assess the success of the reward in ad-
vancing the effort to combat terrorism.’’. 
(c) ANNUAL REPORT TO INCLUDE SPECIFIC INFOR-
MATION ON ADDITIONAL AUTHORITY.—Section 127b of 
title 10, United States Code, is further amended in sub-
section (f)(2) by adding at the end the following new sub-
paragraph: 
‘‘(D) Information on the implementation of 
paragraph (3) of subsection (c).’’. 
SEC. 1034. SUPPORT FOR NON-FEDERAL DEVELOPMENT 
AND TESTING OF MATERIAL FOR CHEMICAL 
AGENT DEFENSE. 
(a) AUTHORITY TO PROVIDE TOXIC CHEMICALS OR 
PRECURSORS.— 
(1) IN GENERAL.—The Secretary of Defense, in 
coordination with the heads of other elements of the 
Federal Government, may make available, to a 
State, a unit of local government, or a private entity 
incorporated in the United States, small quantities 
of a toxic chemical or precursor for the development 
or testing, in the United States, of material that is 
designed to be used for protective purposes. 
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(2) TERMS AND CONDITIONS.—Any use of the 
authority under paragraph (1) shall be subject to 
such terms and conditions as the Secretary considers 
appropriate. 
(b) PAYMENT
OF
COSTS
AND
DISPOSITION
OF 
FUNDS.— 
(1) IN GENERAL.—The Secretary shall ensure, 
through the advance payment required by paragraph 
(2) and through any other payments that may be re-
quired, that a recipient of toxic chemicals or precur-
sors under subsection (a) pays for all actual costs, 
including direct and indirect costs, associated with 
providing the toxic chemicals or precursors. 
(2) ADVANCE PAYMENT.—In carrying out para-
graph (1), the Secretary shall require each recipient 
to make an advance payment in an amount that the 
Secretary determines will equal all such actual costs. 
(3) CREDITS.—A payment received under this 
subsection shall be credited to the account that was 
used to cover the costs for which the payment was 
provided. Amounts so credited shall be merged with 
amounts in that account, and shall be available for 
the same purposes, and subject to the same condi-
tions and limitations, as other amounts in that ac-
count. 
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(c) CHEMICAL WEAPONS CONVENTION.—The Sec-
retary shall ensure that toxic chemicals and precursors are 
made available under this section for uses and in quan-
tities that comply with the Convention on the Prohibition 
of the Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction, signed at 
Paris on January 13, 1993, and entered into force with 
respect to the United States on April 29, 1997. 
(d) REPORT.— 
(1) Not later than March 15, 2008, and each 
year thereafter, the Secretary shall submit to Con-
gress a report on the use of the authority under sub-
section (a) during the previous calendar year. The 
report shall include a description of each use of the 
authority and specify what material was made avail-
able and to whom it was made available. 
(2) Each report under paragraph (1) shall be 
submitted in unclassified form, but may include a 
classified annex. 
(e) DEFINITIONS.—In this section, the terms ‘‘pre-
cursor’’, ‘‘protective purposes’’, and ‘‘toxic chemical’’ have 
the meanings given those terms in the convention referred 
to in subsection (c), in paragraph 2, paragraph 9(b), and 
paragraph 1, respectively, of article II of that convention. 
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(6) Budget and resource estimates, including 
government and contractor personnel requirements, 
for planned joint modeling and simulation activities. 
(7) A description of the relationship and coordi-
nation between and among joint modeling and sim-
ulation activities and the modeling and simulation 
activities of elements of the Department of Defense, 
Federal agencies, State and local governments, aca-
demia, private industry, United States and inter-
national standards organizations, and international 
partners. 
(8) Any other matters the Secretary considers 
appropriate. 
(c) CONSULTATION.—The report under (a) shall be 
developed in consultation with appropriate military de-
partments, Defense Agencies, combatant commands, and 
other defense activities. 
SEC. 1043. RENEWAL OF SUBMITTAL OF PLANS FOR 
PROMPT GLOBAL STRIKE CAPABILITY. 
Section 1032(b)(1) of the National Defense Author-
ization Act for Fiscal Year 2004 (Public Law 108–136; 
117 Stat. 1605; 10 U.S.C. 113 note) is amended by insert-
ing ‘‘and each of 2007, 2008, and 2009,’’ after ‘‘2004, 
2005, and 2006,’’. 
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SEC. 1044. REPORT ON WORKFORCE REQUIRED TO SUP-
PORT THE NUCLEAR MISSIONS OF THE NAVY 
AND THE DEPARTMENT OF ENERGY. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Defense 
and the Secretary of Energy shall each submit to Congress 
a report on the requirements for a workforce to support 
the nuclear missions of the Navy and the Department of 
Energy during the 10-year period beginning on the date 
of the report. 
(b) ELEMENTS.—Each report shall include— 
(1) a description of the projected nuclear mis-
sions of the Navy and the Department of Energy 
during the 10-year period beginning on the date of 
the report; 
(2) an assessment of existing knowledge reten-
tion programs within the Department of Defense, 
the Department of Energy, the national laboratories, 
and federally funded research facilities that support 
the nuclear missions of the Navy and the Depart-
ment of Energy, and any planned changes in those 
programs; and 
(3) a plan to address anticipated workforce at-
trition, retirement, and recruiting trends during that 
period and ensure an adequate workforce in support 
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of the nuclear missions of the Navy and the Depart-
ment of Energy. 
SEC. 1045. COMPTROLLER GENERAL REPORT ON DEFENSE 
FINANCE AND ACCOUNTING SERVICE RE-
SPONSE TO BUTTERBAUGH V. DEPARTMENT 
OF JUSTICE. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the congressional de-
fense committees a report setting forth an assessment by 
the Comptroller General of the response of the Defense 
Finance and Accounting Service to the decision in 
Butterbaugh v. Department of Justice (336 F.3d 1332 
(2003)). 
(b) ELEMENTS.—The report required by subsection 
(a) shall include the following: 
(1) An estimate of the number of members of 
the reserve components of the Armed Forces, both 
past and present, who are entitled to compensation 
under the decision in Butterbaugh v. Department of 
Justice. 
(2) An assessment of the current policies, pro-
cedures, and timeliness of the Defense Finance and 
Accounting Service in implementing and resolving 
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claims under the decision in Butterbaugh v. Depart-
ment of Justice. 
(3) An assessment whether or not the decisions 
made by the Defense Finance and Accounting Serv-
ice in implementing the decision in Butterbaugh v. 
Department of Justice follow a consistent pattern of 
resolution. 
(4) An assessment of whether or not the deci-
sions made by the Defense Finance and Accounting 
Service in implementing the decision in Butterbaugh 
v. Department of Justice are resolving claims by 
providing more compensation than an individual has 
been able to prove, under the rule of construction 
that laws providing benefits to veterans are liberally 
construed in favor of the veteran. 
(5) An estimate of the total amount of com-
pensation payable to members of the reserve compo-
nents of the Armed Forces, both past and present, 
as a result of the recent decision in Hernandez v. 
Department of the Air Force (No. 2006–3375, slip 
op.) that leave can be reimbursed for Reserve service 
before 1994, when Congress enacted chapter 43 of 
title 38, United States Code (commonly referred to 
as the ‘‘Uniformed Services Employment and Reem-
ployment Rights Act’’). 
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(6) A comparative assessment of the handling 
of claims by the Defense Finance and Accounting 
Service under the decision in Butterbaugh v. De-
partment of Justice with the handling of claims by 
other Federal agencies (selected by the Comptroller 
General for purposes of the comparative assessment) 
under that decision. 
(7) A statement of the number of claims by 
members of the reserve components of the Armed 
Forces under the decision in Butterbaugh v. Depart-
ment of Justice that have been adjudicated by the 
Defense Finance and Accounting Service. 
(8) A statement of the number of claims by 
members of the reserve components of the Armed 
Forces under the decision in Butterbaugh v. Depart-
ment of Justice that have been denied by the De-
fense Finance and Accounting Service. 
(9) A comparative assessment of the average 
amount of time required for the Defense Finance 
and Accounting Service to resolve a claim under the 
decision in Butterbaugh v. Department of Justice 
with the average amount of time required by other 
Federal agencies (as so selected) to resolve a claim 
under that decision. 
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(10) A comparative statement of the backlog of 
claims with the Defense Finance and Accounting 
Service under the decision in Butterbaugh v. De-
partment of Justice with the backlog of claims of 
other Federal agencies (as so selected) under that 
decision. 
(11) An estimate of the amount of time re-
quired for the Defense Finance and Accounting 
Service to resolve all outstanding claims under the 
decision in Butterbaugh v. Department of Justice. 
(12) An assessment of the reasonableness of the 
requirement of the Defense Finance and Accounting 
Service for the submittal by members of the reserve 
components of the Armed Forces of supporting doc-
umentation for claims under the decision in 
Butterbaugh v. Department of Justice. 
(13) A comparative assessment of the require-
ment of the Defense Finance and Accounting Serv-
ice for the submittal by members of the reserve com-
ponents of the Armed Forces of supporting docu-
mentation 
for 
claims 
under 
the 
decision 
in 
Butterbaugh v. Department of Justice with the re-
quirement of other Federal agencies (as so selected) 
for the submittal by such members of supporting 
documentation for such claims. 
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(14) Such recommendations for legislative ac-
tion as the Comptroller General considers appro-
priate in light of the decision in Butterbaugh v. De-
partment of Justice and the decision in Hernandez 
v. Department of the Air Force. 
SEC. 1046. STUDY ON SIZE AND MIX OF AIRLIFT FORCE. 
(a) STUDY REQUIRED.—The Secretary of Defense 
shall conduct a requirements-based study on alternatives 
for the proper size and mix of fixed-wing intratheater and 
intertheater airlift assets to meet the National Military 
Strategy for each of the following timeframes: fiscal year 
2012, 2018, and 2024. The study shall— 
(1) focus on organic and commercially pro-
grammed airlift capabilities; 
(2) analyze the full-spectrum lifecycle costs of 
the various alternatives for organic models of each 
of the following aircraft: C–5A/B/C/M, C–17A, KC– 
X, KC–10, KC–135R, C–130E/H/J, Joint Cargo 
Aircraft; and 
(3) incorporate the augmentation capability, vi-
ability, and feasibility of the Civil Reserve Air Fleet 
during activation stages I, II, and III. 
(b) USE OF FFRDC.—The Secretary shall select, to 
carry out the study required by subsection (a), a federally 
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funded research and development center that has experi-
ence and expertise in conducting similar studies. 
(c) STUDY PLAN.—The study required by subsection 
(a) shall be carried out under a study plan. The study 
plan shall be developed as follows: 
(1) The center selected under subsection (b) 
shall develop the study plan and shall, not later than 
60 days after the date of enactment of this Act, sub-
mit the study plan to the congressional defense com-
mittees, the Secretary, and the Comptroller General 
of the United States. 
(2) The Comptroller General shall review the 
study plan to determine whether it is complete and 
objective, and whether it has any flaws or weak-
nesses in scope or methodology, and shall, not later 
than 30 days after receiving the study plan, submit 
to the Secretary and the center a report that con-
tains the results of that review and provides any rec-
ommendations that the Comptroller General con-
siders appropriate for improvements to the study 
plan. 
(3) The center shall modify the study plan to 
incorporate the recommendations under paragraph 
(2) and shall, not later than 45 days after receiving 
that report, submit to the Secretary and the con-
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gressional defense committees a report on those 
modifications. The report shall describe each modi-
fication and, if the modifications do not incorporate 
one or more of the recommendations, shall explain 
the reasons for not doing so. 
(d) ELEMENTS OF STUDY PLAN.—The study plan re-
quired by subsection (c) shall address, at minimum, the 
following: 
(1) A description of lift requirements and oper-
ating profiles for airlift aircraft required to meet the 
National Military Strategy, including assumptions 
regarding the following: 
(A) Current and future military combat 
and support missions. 
(B) The planned force structure growth of 
the military services. 
(C) Potential changes in lift requirements, 
including the deployment of the Future Combat 
Systems by the Army. 
(D) New capability in airlift to be provided 
by the KC(X) aircraft and the expected utiliza-
tion of such capability, including its use in 
intratheater lift. 
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(E) The utilization of intertheater lift air-
craft in intratheater combat mission support 
roles. 
(F) The availability and application of 
Civil Reserve Air Fleet assets in future military 
scenarios. 
(G) Air mobility requirements associated 
with the Global Rebasing Initiative of the De-
partment of Defense. 
(H) Air mobility requirements in support 
of worldwide peacekeeping and humanitarian 
missions. 
(I) Air mobility requirements in support of 
homeland defense and national emergencies. 
(J) The viability and capability of the Civil 
Reserve Air Fleet to augment organic forces in 
both friendly and hostile environments. 
(K) An assessment of the Civil Reserve Air 
Fleet to adequately augment the organic fleet 
as it relates to commercial inventory manage-
ment restructuring in response to future com-
mercial markets, streamlining of operations, ef-
ficiency measures, or downsizing of the partici-
pant. 
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(2) An evaluation of the state of the current 
airlift fleet of the Air Force, including assessments 
of the following: 
(A) The extent to which the increased use 
of airlift aircraft in on-going operations is af-
fecting the programmed service life of the air-
craft of that fleet. 
(B) The adequacy of the current airlift 
force, including whether or not a minimum of 
299 strategic airlift aircraft for the Air Force 
is sufficient to support future expeditionary 
combat and non-combat missions, as well as do-
mestic and training mission demands consistent 
with the requirements of meeting the National 
Military Strategy. 
(C) The optimal mix of C–5 and C–17 air-
craft for the strategic airlift fleet of the Air 
Force, to include the following: 
(i) The cost-effectiveness of modern-
izing various iterations of the C–5A and 
C–5B/C aircraft fleet versus procuring ad-
ditional C–17 aircraft. 
(ii) The military capability, oper-
ational availability, usefulness, and service 
life of the C–5A/B/C/M aircraft and the C– 
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17 aircraft. Such an assessment shall ex-
amine appropriate metrics, such as aircraft 
availability rates, departure rates, and mis-
sion capable rates, in each of the following 
cases: 
(I) Completion of the Avionics 
Modernization Program and the Reli-
ability Enhancement and Re-engining 
Program. 
(II) Partial completion of the 
Avionics Modernization Program and 
the Reliability Enhancement and Re- 
engining Program, with partial com-
pletion of either such program being 
considered the point at which the con-
tinued execution of each program is 
no longer supported by the cost-effec-
tiveness analysis. 
(iii) At what specific fleet inventory 
for each organic aircraft, to include air re-
fueling aircraft used in the airlift role, 
would it impede the ability of Civil Reserve 
Air Fleet participants to remain a viable 
augmentation option. 
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gram life cycle cost estimates and a comparison 
of cost and risk associated with the optimally 
mixed fleet of airlift aircraft versus the program 
of record airlift aircraft fleet. 
(e) UTILIZATION OF OTHER STUDIES.—The study 
required by subsection (a) shall build upon the results of 
the 2005 Mobility Capabilities Studies, the on-going Intra- 
theater Airlift Fleet Mix Analysis, the Intra-theater Lift 
Capabilities Study, the Joint Future Theater Airlift Capa-
bilities Analysis, and other appropriate studies and anal-
yses, such as Fleet Viability Board Reports or special air-
craft assessments. The study shall also include any testing 
data collected on modernization, recapitalization, and up-
grade efforts of current organic aircraft. 
(f) COLLABORATION WITH UNITED STATES TRANS-
PORTATION COMMAND.—In conducting the study required 
by subsection (a) and preparing the report required by 
subsection (c)(3), the center shall collaborate with the 
commander of the United States Transportation Com-
mand. 
(g) COLLABORATION WITH COST ANALYSIS IM-
PROVEMENT GROUP.—In conducting the study required 
by subsection (a) and constructing the analysis required 
by subsection (a)(2), the center shall collaborate with the 
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Cost Analysis Improvement Group of the Department of 
Defense. 
(h) REPORT.—Not later than January 10, 2009, the 
center selected under subsection (b) shall submit to the 
Secretary and the congressional defense committees a re-
port on the study required by subsection (a). The report 
shall be submitted in unclassified form, but shall include 
a classified annex. 
SEC. 1047. REPORT ON FEASIBILITY OF ESTABLISHING A 
DOMESTIC MILITARY AVIATION NATIONAL 
TRAINING CENTER. 
(a) IN GENERAL.—Not later than June 1, 2008, the 
Secretary of Defense shall submit to the congressional de-
fense committees a report to determine the feasibility of 
establishing a Border State Aviation Training Center 
(BSATC) to support the current and future requirements 
of the existing RC–26 training site for counterdrug activi-
ties, located at the Fixed Wing Army National Guard 
Aviation Training Site (FWAATS), including the domestic 
reconnaissance and surveillance missions of the National 
Guard in support of local, State, and Federal law enforce-
ment agencies, provided that the activities to be conducted 
at the BSATC shall not duplicate or displace any activity 
or program at the RC–26 training site or the FWAATS. 
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(b) CONTENT.—The report required under subsection 
(a) shall— 
(1) examine the current and past requirements 
of RC–26 aircraft in support of local, State, and 
Federal law enforcement and determine the number 
of additional aircraft required to provide such sup-
port for each State that borders Canada, Mexico, or 
the Gulf of Mexico; 
(2) determine the number of military and civil-
ian personnel required to run a RC–26 domestic 
training center meeting the requirements identified 
under paragraph (1); 
(3) determine the requirements and cost of lo-
cating such a training center at a military installa-
tion for the purpose of preempting and responding 
to security threats and responding to crises; and 
(4) include a comprehensive review of the num-
ber and type of intelligence, reconnaissance, and sur-
veillance platforms needed for the National Guard to 
effectively provide domestic operations and civil sup-
port (including homeland defense and counterdrug) 
to local, State, and Federal law enforcement and 
first responder entities and how those platforms 
would provide additional capabilities not currently 
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available from the assets of other local, State, and 
Federal agencies. 
(c) CONSULTATION.—In preparing the report re-
quired under subsection (a), the Secretary of Defense shall 
consult with the Adjutant General of each State that bor-
ders Canada, Mexico, or the Gulf of Mexico, the Adjutant 
General of the State of West Virginia, and the National 
Guard Bureau. 
SEC. 1048. LIMITED FIELD USER EVALUATIONS FOR COM-
BAT HELMET PAD SUSPENSION SYSTEMS. 
(a) IN GENERAL.—The Secretary of Defense shall 
carry out a limited field user evaluation and operational 
assessment of qualified combat helmet pad suspension sys-
tems. The evaluation and assessment shall be carried out 
using verified product representative samples from combat 
helmet pad suspension systems that are qualified as of the 
date of the enactment of this Act. 
(b) REPORT.—Not later than September 30, 2008, 
the Secretary shall submit to the congressional defense 
committees a report on the results of the limited field user 
evaluation and operational assessment. 
(c) FUNDING.—The limited field user evaluation and 
operational assessment required by subsection (a) shall be 
conducted using funds appropriated pursuant to an au-
thorization of appropriations or otherwise made available 
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for fiscal year 2008 for operation and maintenance, Army, 
for soldier protection and safety. 
SEC. 1049. STUDY ON NATIONAL SECURITY INTERAGENCY 
SYSTEM. 
(a) STUDY REQUIRED.—Not later than 30 days after 
the date of the enactment of this Act, the Secretary of 
Defense shall enter into an agreement with an inde-
pendent, non-profit, non-partisan organization to conduct 
a study on the national security interagency system. 
(b) REPORT.—The agreement entered into under 
subsection (a) shall require the organization to submit to 
Congress and the President a report containing the results 
of the study conducted pursuant to such agreement and 
any recommendations for changes to the national security 
interagency system (including legislative or regulatory 
changes) identified by the organization as a result of the 
study. 
(c) SUBMITTAL DATE.—The agreement entered into 
under subsection (a) shall require the organization to sub-
mit the report required under subsection (a) not later than 
September 1, 2008. 
(d) NATIONAL SECURITY INTERAGENCY SYSTEM DE-
FINED.—In this section, the term ‘‘national security inter-
agency system’’ means the structures, mechanisms, and 
processes by which the departments, agencies, and ele-
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