H. R. 1815—231
Sec. 844. Exclusion of certain security expenses from consideration for purpose of 
small business size standards. 
Sec. 845. Disaster relief for small business concerns damaged by drought. 
Sec. 846. Extension of limited acquisition authority for the commander of the 
United States Joint Forces Command. 
Sec. 847. Civilian Board of Contract Appeals. 
Sec. 848. Statement of policy and report relating to contracting with employers of 
persons with disabilities. 
Sec. 849. Study on Department of Defense contracting with small business concerns 
owned and controlled by service-disabled veterans.
Subtitle A—Provisions Relating to Major 
Defense Acquisition Programs 
SEC. 
801. 
REQUIREMENT 
FOR 
CERTIFICATION 
BEFORE 
MAJOR 
DEFENSE ACQUISITION PROGRAM MAY PROCEED TO 
MILESTONE B. 
(a) CERTIFICATION REQUIREMENT.—Chapter 139 of title 10, 
United States Code, is amended by inserting after section 2366 
the following new section: 
‘‘§ 2366a. Major defense acquisition programs: certification 
required before Milestone B or Key Decision 
Point B approval 
‘‘(a) CERTIFICATION.—A major defense acquisition program may 
not receive Milestone B approval, or Key Decision Point B approval 
in the case of a space program, until the milestone decision 
authority certifies that—
‘‘(1) the technology in the program has been demonstrated 
in a relevant environment; 
‘‘(2) the program demonstrates a high likelihood of accom-
plishing its intended mission; 
‘‘(3) the program is affordable when considering the per 
unit cost and the total acquisition cost in the context of the 
total resources available during the period covered by the 
future-years defense program submitted during the fiscal year 
in which the certification is made; 
‘‘(4) the Department of Defense has completed an analysis 
of alternatives with respect to the program; 
‘‘(5) the program is affordable when considering the ability 
of the Department of Defense to accomplish the program’s 
mission using alternative systems; 
‘‘(6) the Joint Requirements Oversight Council has accom-
plished its duties with respect to the program pursuant to 
section 181(b) of this title, including an analysis of the oper-
ational requirements for the program; and 
‘‘(7) the program complies with all relevant policies, regula-
tions, and directives of the Department of Defense. 
‘‘(b) SUBMISSION
TO
CONGRESS.—The certification required 
under subsection (a) with respect to a major defense acquisition 
program shall be submitted to the congressional defense committees 
with the first Selected Acquisition Report submitted under section 
2432 of this title after completion of the certification. 
‘‘(c) WAIVER FOR NATIONAL SECURITY.—The milestone decision 
authority may waive the applicability to a major defense acquisition 
program of one or more components (as specified in paragraph 
(1), (2), (3), (4), (5), or (6) of subsection (a)) of the certification 
requirement if the milestone decision authority determines that,
H. R. 1815—232
but for such a waiver, the Department would be unable to meet 
critical national security objectives. Whenever the milestone deci-
sion authority makes such a determination and authorizes such 
a waiver, the waiver, the determination, and the reasons for the 
determination shall be submitted in writing to the congressional 
defense committees within 30 days after the waiver is authorized. 
‘‘(d) NONDELEGATION.—The milestone decision authority may 
not delegate the certification requirement under subsection (a) or 
the authority to waive any component of such requirement under 
subsection (c). 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘major defense acquisition program’ means 
a Department of Defense acquisition program that is a major 
defense acquisition program for purposes of section 2430 of 
this title. 
‘‘(2) The term ‘milestone decision authority’, with respect 
to a major defense acquisition program, means the individual 
within the Department of Defense designated with overall 
responsibility for the program. 
‘‘(3) The term ‘Milestone B approval’ has the meaning pro-
vided that term in section 2366(e)(7) of this title. 
‘‘(4) The term ‘Key Decision Point B’ means the official 
program initiation of a National Security Space program of 
the Department of Defense, which triggers a formal review 
to determine maturity of technology and the program’s readi-
ness to begin the preliminary system design.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2366 the following new item:
‘‘2366a. Major defense acquisition programs: certification required before Milestone 
B approval or Key Decision Point B approval.’’.
SEC. 802. REQUIREMENTS APPLICABLE TO MAJOR DEFENSE ACQUISI-
TION PROGRAMS EXCEEDING BASELINE COSTS. 
(a) SPECIFICATION OF SIGNIFICANT COST GROWTH THRESHOLD 
AND CRITICAL COST GROWTH THRESHOLD.—Subsection (a) of section 
2433 of title 10, United States Code, is amended by adding at 
the end the following new paragraphs: 
‘‘(4) The term ‘significant cost growth threshold’ means 
the following: 
‘‘(A) In the case of a major defense acquisition program, 
a percentage increase in the program acquisition unit cost 
for the program of—
‘‘(i) at least 15 percent over the program acquisi-
tion unit cost for the program as shown in the current 
Baseline Estimate for the program; or 
‘‘(ii) at least 30 percent over the program acquisi-
tion unit cost for the program as shown in the original 
Baseline Estimate for the program. 
‘‘(B) In the case of a major defense acquisition program 
that is a procurement program, a percentage increase in 
the procurement unit cost for the program of—
‘‘(i) at least 15 percent over the procurement unit 
cost for the program as shown in the current Baseline 
Estimate for the program; or
H. R. 1815—233
‘‘(ii) at least 30 percent over the procurement unit 
cost for the program as shown in the original Baseline 
Estimate for the program. 
‘‘(5) The term ‘critical cost growth threshold’ means the 
following: 
‘‘(A) In the case of a major defense acquisition program, 
a percentage increase in the program acquisition unit cost 
for the program of—
‘‘(i) at least 25 percent over the program acquisi-
tion unit cost for the program as shown in the current 
Baseline Estimate for the program; or 
‘‘(ii) at least 50 percent over the program acquisi-
tion unit cost for the program as shown in the original 
Baseline Estimate for the program. 
‘‘(B) In the case of a major defense acquisition program 
that is a procurement program, a percentage increase in 
the procurement unit cost for the program of—
‘‘(i) at least 25 percent over the procurement unit 
cost for the program as shown in the current Baseline 
Estimate for the program; or 
‘‘(ii) at least 50 percent over the procurement unit 
cost for the program as shown in the original Baseline 
Estimate for the program.’’. 
(b) INCORPORATION OF THRESHOLDS INTO UNIT COST REPORT 
AND RELATED REQUIREMENTS.—
(1) UNIT COST REPORT REQUIREMENTS.—Subsection (c) of 
such section is amended by striking ‘‘cause to believe—’’ and 
all that follows through ‘‘reflected in the Baseline Estimate;’’ 
and inserting ‘‘cause to believe that the program acquisition 
unit cost for the program or the procurement unit cost for 
the program, as applicable, has increased by a percentage equal 
to or greater than the significant cost growth threshold for 
the program;’’. 
(2) DETERMINATIONS
OF
SERVICE
ACQUISITION
EXECU-
TIVES.—Subsection (d) of such section is amended—
(A) in paragraph (1), by striking ‘‘by at least 15 percent, 
or by at least 25 percent, over the program acquisition 
unit cost for the program as shown in the Baseline Esti-
mate’’ and inserting ‘‘by a percentage equal to or greater 
than the significant cost growth threshold, or the critical 
cost growth threshold, for the program’’; 
(B) in paragraph (2), by striking ‘‘by at least 15 percent, 
or by at least 25 percent, over the procurement unit cost 
for the program as reflected in the Baseline Estimate’’ 
and inserting ‘‘by a percentage equal to or greater than 
the significant cost growth threshold, or the critical cost 
growth threshold, for the program’’; and 
(C) in paragraph (3)—
(i) by striking ‘‘by at least 15 percent, or by at 
least 25 percent, as determined under paragraph (1)’’ 
and inserting ‘‘by a percentage equal to or greater 
than the significant cost growth threshold or critical 
cost growth threshold’’; and 
(ii) by striking ‘‘by at least 15 percent, or by at 
least 25 percent, as determined under paragraph (2)’’ 
and inserting ‘‘by a percentage equal to or greater
H. R. 1815—234
than the significant cost growth threshold or critical 
cost growth threshold’’. 
(3) SERVICE ACQUISITION REPORTS.—Subsection (e) of such 
section is amended—
(A) in paragraph (1)(A), by striking ‘‘by at least 15 
percent’’ and inserting ‘‘by a percentage equal to or greater 
than the significant cost growth threshold for the program’’; 
(B) in paragraph (2)—
(i) by striking ‘‘percentage increase in the’’; and 
(ii) by striking ‘‘exceeds 25 percent’’ and inserting 
‘‘increases by a percentage equal to or greater than 
the critical cost growth threshold for the program’’; 
and 
(C) in paragraph (3)—
(i) by striking ‘‘of at least 15 percent’’ both places 
it appears and inserting ‘‘by a percentage equal to 
or greater than the significant cost growth threshold’’; 
and 
(ii) by striking ‘‘of at least 25 percent’’ both places 
it appears and inserting ‘‘by a percentage equal to 
or greater than the critical cost growth threshold’’. 
(c) ADDITIONAL REQUIREMENTS RELATING
TO CERTAIN UNIT 
COST INCREASES.—Paragraph (2) of subsection (e) of such section 
is further amended—
(1) by redesignating subparagraph (B) as subparagraph 
(C); and 
(2) by striking ‘‘the Secretary of Defense’’ and all that 
follows through ‘‘a written certification, stating that—’’ and 
inserting ‘‘the Secretary of Defense shall—
‘‘(A) carry out an assessment of—
‘‘(i) the projected cost of completing the program if 
current requirements are not modified; 
‘‘(ii) the projected cost of completing the program based 
on reasonable modification of such requirements; and 
‘‘(iii) the rough order of magnitude of the costs of 
any reasonable alternative system or capability; 
‘‘(B) submit to Congress, before the end of the 60-day 
period beginning on the day the Selected Acquisition Report 
containing the information described in subsection (g) is 
required to be submitted under section 2432(f) of this title, 
a written certification (with a supporting explanation) stating 
that—’’. 
(d) ORIGINAL BASELINE ESTIMATE.—
(1) IN GENERAL.—Section 2435 of title 10, United States 
Code, is amended—
(A) by redesignating subsection (d) as subsection (e); 
and 
(B) by inserting after subsection (c) the following new 
subsection (d): 
‘‘(d) ORIGINAL BASELINE ESTIMATE.—(1) In this chapter, the 
term ‘original Baseline Estimate’, with respect to a major defense 
acquisition program, means the baseline description established 
with respect to the program under subsection (a), without adjust-
ment or revision (except as provided in paragraph (2)). 
‘‘(2) An adjustment or revision of the original baseline descrip-
tion of a major defense acquisition program may be treated as 
the original Baseline Estimate for the program for purposes of
H. R. 1815—235
this chapter only if the percentage increase in the program acquisi-
tion unit cost or procurement unit cost under such adjustment 
or revision exceeds the critical cost growth threshold for the program 
under section 2433 of this title, as determined by the Secretary 
of the military department concerned under subsection (d) of such 
section. 
‘‘(3) In the event of an adjustment or revision of the original 
baseline description of a major defense acquisition program, the 
Secretary of Defense shall include in the next Selected Acquisition 
Report to be submitted under section 2432 of this title after such 
adjustment or revision a notification to the congressional defense 
committees of such adjustment or revision, together with the rea-
sons for such adjustment or revision.’’. 
(2) CONFORMING
AMENDMENT.—Section 2433(a) of such 
title, as amended by subsection (a) of this section, is further 
amended by adding at the end the following new paragraph: 
‘‘(6) The term ‘original Baseline Estimate’ has the same 
meaning as provided in section 2435(d) of this title.’’. 
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section 
shall take effect on the date of the enactment of this Act, 
and shall apply with respect to any major defense acquisition 
program for which an original Baseline Estimate is first estab-
lished before, on, or after that date. 
(2) APPLICABILITY TO CURRENT MAJOR DEFENSE ACQUISITION 
PROGRAMS.—In the case of a major defense acquisition program 
for which the program acquisition unit cost or procurement 
unit cost, as applicable, exceeds the original Baseline Estimate 
for the program by more than 50 percent on the date of the 
enactment of this Act—
(A) the current Baseline Estimate for the program 
as of such date of enactment is deemed to be the original 
Baseline Estimate for the program for purposes of section 
2433 of title 10, United States Code (as amended by this 
section); and 
(B) each Selected Acquisition Report submitted on the 
program after the date of the enactment of this Act shall 
reflect each of the following: 
(i) The original Baseline Estimate, as first estab-
lished for the program, without adjustment or revision. 
(ii) The Baseline Estimate for the program that 
is deemed to be the original Baseline Estimate for 
the program under subparagraph (A). 
(iii) The current original Baseline Estimate for 
the program as adjusted or revised, if at all, in accord-
ance with subsection (d)(2) of section 2435 of title 
10, United States Code (as added by subsection (d) 
of this section). 
SEC. 803. REQUIREMENT FOR DETERMINATION BY SECRETARY OF 
DEFENSE AND NOTIFICATION TO CONGRESS BEFORE 
PROCUREMENT 
OF 
MAJOR 
WEAPON 
SYSTEMS 
AS 
COMMERCIAL ITEMS. 
(a) REQUIREMENT
FOR DETERMINATION
AND NOTIFICATION.—
(1) IN GENERAL.—Chapter 140 of title 10, United States 
Code, is amended by adding at the end the following new 
section:
H. R. 1815—236
‘‘§ 2379. Requirement for determination by Secretary of 
Defense and notification to Congress before 
procurement 
of 
major 
weapon 
systems 
as 
commercial items 
‘‘(a) REQUIREMENT FOR DETERMINATION AND NOTIFICATION.—
A major weapon system of the Department of Defense may be 
treated as a commercial item, or purchased under procedures estab-
lished for the procurement of commercial items, only if—
‘‘(1) the Secretary of Defense determines that—
‘‘(A) the major weapon system is a commercial item, 
as defined in section 4(12) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 403(12)); and 
‘‘(B) such treatment is necessary to meet national secu-
rity objectives; and 
‘‘(2) the congressional defense committees are notified at 
least 30 days before such treatment or purchase occurs. 
‘‘(b) TREATMENT OF SUBSYSTEMS AND COMPONENTS AS COMMER-
CIAL ITEMS.—A subsystem or component of a major weapon system 
shall be treated as a commercial item and purchased under proce-
dures established for the procurement of commercial items if such 
subsystem or component otherwise meets the requirements (other 
than requirements under subsection (a)) for treatment as a commer-
cial item. 
‘‘(c) DELEGATION.—The authority of the Secretary of Defense 
to make a determination under subsection (a) may be delegated 
only to the Deputy Secretary of Defense, without further redelega-
tion. 
‘‘(d) MAJOR WEAPON SYSTEM DEFINED.—In this section, the 
term ‘major weapon system’ means a weapon system acquired 
pursuant to a major defense acquisition program (as that term 
is defined in section 2430 of this title).’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 140 of such title is amended by adding 
at the end the following new item:
‘‘2379. Requirement for determination by Secretary of Defense and notification to 
Congress before procurement of major weapon systems as commercial 
items.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on the date of the enactment of this Act, 
and shall apply to contracts entered into on or after such date. 
SEC. 804. REPORTS ON SIGNIFICANT INCREASES IN PROGRAM 
ACQUISITION UNIT COSTS OR PROCUREMENT UNIT 
COSTS OF MAJOR DEFENSE ACQUISITION PROGRAMS. 
(a) INITIAL REPORT REQUIRED.—Not later than one year after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to the congressional defense committees a report on 
the acquisition status of each major defense acquisition program 
whose program acquisition unit cost or procurement unit cost, as 
of the date of the enactment of this Act, has exceeded by more 
than 50 percent the original baseline projection for such unit cost. 
The report shall include the information specified in subsection 
(b). 
(b) INFORMATION.—The information specified in this subsection 
with respect to a major defense acquisition program is the following: 
(1) An assessment of the costs to be incurred to complete 
the program if the program is not modified.
H. R. 1815—237
(2) An explanation of why the costs of the program have 
increased. 
(3) A justification for the continuation of the program not-
withstanding the increase in costs. 
(c) MAJOR DEFENSE ACQUISITION PROGRAM DEFINED.—In this 
section, the term ‘‘major defense acquisition program’’ has the 
meaning given that term in section 2430 of title 10, United States 
Code. 
SEC. 805. REPORT ON USE OF LEAD SYSTEM INTEGRATORS IN THE 
ACQUISITION OF MAJOR SYSTEMS. 
(a) REPORT REQUIRED.—Not later than September 30, 2006, 
the Secretary of Defense shall submit to the congressional defense 
committees a report on the use of lead system integrators for 
the acquisition by the Department of Defense of major systems. 
(b) CONTENTS.—The report required by subsection (a) shall 
include a detailed description of the actions taken, or to be taken 
(including a specific timetable), and the current regulations and 
guidelines regarding—
(1) the definition of the respective rights of the Department 
of Defense, lead system integrators, and other contractors that 
participate in the development or production of any individual 
element of a major weapon system (including subcontractors 
under lead system integrators) in intellectual property that 
is developed by the other participating contractors in a manner 
that ensures that—
(A) the Department of Defense obtains appropriate 
rights in technical data developed by the other participating 
contractors in accordance with the requirements of section 
2320 of title 10, United States Code; and 
(B) lead system integrators obtain access to technical 
data developed by the other participating contractors only 
to the extent necessary to execute their contractual obliga-
tions as lead systems integrators; 
(2) the prevention or mitigation of organizational conflicts 
of interest on the part of lead system integrators; 
(3) minimization of the performance by lead system integra-
tors of functions closely associated with inherently govern-
mental functions; 
(4) the appropriate use of competitive procedures in the 
award of subcontracts by lead system integrators with system 
responsibility; 
(5) the prevention of organizational conflicts of interest 
arising out of any financial interest of lead system integrators 
without system responsibility in the development or production 
of individual elements of a major weapon system; and 
(6) the prevention of pass-through charges by lead system 
integrators with system responsibility on systems or subsystems 
developed or produced under subcontracts where such lead 
system integrators do not provide significant value added with 
regard to such systems or subsystems. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘lead system integrator’’ includes lead system 
integrators with system responsibility and lead system integra-
tors without system responsibility.
H. R. 1815—238
(2) The term ‘‘lead system integrator with system responsi-
bility’’ means a prime contractor for the development or produc-
tion of a major system if the prime contractor is not expected 
at the time of award, as determined by the Secretary of Defense 
for purposes of this section, to perform a substantial portion 
of the work on the system and the major subsystems. 
(3) The term ‘‘lead system integrator without system 
responsibility’’ means a contractor under a contract for the 
procurement of services whose primary purpose is to perform 
acquisition functions closely associated with inherently govern-
mental functions with regard to the development or production 
of a major system. 
(4) The term ‘‘major system’’ has the meaning given such 
term in section 2302d of title 10, United States Code. 
(5) The term ‘‘pass-through charge’’ means a charge for 
overhead or profit on work performed by a lower-tier contractor 
(other than charges for the direct costs of managing lower-
tier contracts and overhead and profit based on such direct 
costs) that does not, as determined by the Secretary for pur-
poses of this section, promote significant value added with 
regard to such work. 
(6) The term ‘‘functions closely associated with inherently 
governmental functions’’ has the meaning given such term in 
section 2383(b)(3) of title 10, United States Code. 
SEC. 806. CONGRESSIONAL NOTIFICATION OF CANCELLATION OF 
MAJOR AUTOMATED INFORMATION SYSTEMS. 
(a) REPORT REQUIRED.—The Secretary of Defense shall notify 
the congressional defense committees not less than 60 days before 
cancelling a major automated information system program that 
has been fielded or approved to be fielded, or making a change 
that will significantly reduce the scope of such a program, of the 
proposed cancellation or change. 
(b) CONTENT.—Each notification submitted under subsection 
(a) with respect to a proposed cancellation or change shall include—
(1) the specific justification for the proposed cancellation 
or change; 
(2) a description of the impact of the proposed cancellation 
or change on the ability of the Department to achieve the 
objectives of the program proposed for cancellation or change; 
(3) a description of the steps that the Department plans 
to take to achieve those objectives; and 
(4) other information relevant to the change in acquisition 
strategy. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘major automated information system’’ has 
the meaning given that term in Department of Defense directive 
5000.1. 
(2) The term ‘‘approved to be fielded’’ means having 
received Milestone C approval.
H. R. 1815—239
Subtitle B—Acquisition Policy and 
Management 
SEC. 811. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF 
THE DEPARTMENT OF DEFENSE. 
(a) INSPECTOR GENERAL REVIEWS AND DETERMINATIONS.—
(1) IN
GENERAL.—For each covered non-defense agency, 
the Inspector General of the Department of Defense and the 
Inspector General of such non-defense agency shall, not later 
than March 15, 2006, jointly—
(A) review—
(i) the procurement policies, procedures, and 
internal controls of such non-defense agency that are 
applicable to the procurement of property and services 
on behalf of the Department by such non-defense 
agency; and 
(ii) the administration of those policies, procedures, 
and internal controls; and 
(B) determine in writing whether—
(i) such non-defense agency is compliant with 
defense procurement requirements; 
(ii) such non-defense agency is not compliant with 
defense procurement requirements, but has a program 
or initiative to significantly improve compliance with 
defense procurement requirements; or 
(iii) neither of the conclusions stated in clauses 
(i) and (ii) is correct in the case of such non-defense 
agency. 
(2) ACTIONS FOLLOWING CERTAIN DETERMINATIONS.—If the 
Inspectors General determine under paragraph (1) that the 
conclusion stated in clause (ii) or (iii) of subparagraph (B) 
of that paragraph is correct in the case of a covered non-
defense agency, such Inspectors General shall, not later than 
June 15, 2007, jointly—
(A) conduct a second review, as described in subpara-
graph (A) of that paragraph, regarding such non-defense 
agency’s procurement of property or services on behalf of 
the Department of Defense in fiscal year 2006; and 
(B) determine in writing whether such non-defense 
agency is or is not compliant with defense procurement 
requirements. 
(b) COMPLIANCE
WITH
DEFENSE
PROCUREMENT
REQUIRE-
MENTS.—For the purposes of this section, a covered non-defense 
agency is compliant with defense procurement requirements if such 
non-defense agency’s procurement policies, procedures, and internal 
controls applicable to the procurement of products and services 
on behalf of the Department of Defense, and the manner in which 
they are administered, are adequate to ensure such non-defense 
agency’s compliance with the requirements of laws and regulations 
that apply to procurements of property and services made directly 
by the Department of Defense. 
(c) MEMORANDA
OF UNDERSTANDING BETWEEN INSPECTORS 
GENERAL.—
(1) IN GENERAL.—Not later than 60 days after the date 
of the enactment of this Act, the Inspector General of the
H. R. 1815—240
Department of Defense and the Inspector General of each cov-
ered non-defense agency shall enter into a memorandum of 
understanding with each other to carry out the reviews and 
make the determinations required by this section. 
(2) SCOPE OF MEMORANDA.—The Inspector General of the 
Department of Defense and the Inspector General of a covered 
non-defense agency may by mutual agreement conduct separate 
reviews of the procurement of property and services on behalf 
of the Department of Defense that are conducted by separate 
business units, or under separate governmentwide acquisition 
contracts, of such non-defense agency. In any case where such 
separate reviews are conducted, the Inspectors General shall 
make separate determinations under paragraph (1) or (2) of 
subsection (a), as applicable, with respect to each such separate 
review. 
(d) LIMITATIONS ON PROCUREMENTS ON BEHALF OF DEPARTMENT 
OF DEFENSE.—
(1) LIMITATION DURING REVIEW PERIOD.—After March 15, 
2006, and before June 16, 2007, no official of the Department 
of Defense may, except as provided in subsection (e) or (f), 
order, purchase, or otherwise procure property or services in 
an amount in excess of $100,000 through a covered non-defense 
agency for which a determination described in paragraph 
(1)(B)(iii) of subsection (a) has been made under that subsection. 
(2) LIMITATION AFTER REVIEW PERIOD.—After June 15, 2007, 
no official of the Department of Defense may, except as provided 
in subsection (e) or (f), order, purchase, or otherwise procure 
property or services in an amount in excess of $100,000 through 
a covered non-defense agency that, having been subject to 
review under this section, has not been determined under this 
section as being compliant with defense procurement require-
ments. 
(3) LIMITATION FOLLOWING FAILURE TO REACH MOU.—Com-
mencing on the date that is 60 days after the date of the 
enactment of this Act, if a memorandum of understanding 
between the Inspector General of the Department of Defense 
and the Inspector General of a covered non-defense agency 
cannot be attained causing the review required by this section 
to not be performed, no official of the Department of Defense, 
except as provided in subsection (e) or (f), may order, purchase 
or otherwise procure property or services in an amount in 
excess of $100,000 through such non-defense agency. 
(e) EXCEPTION FROM APPLICABILITY OF LIMITATIONS.—
(1) EXCEPTION.—No limitation applies under subsection (d) 
with respect to the procurement of property and services on 
behalf of the Department of Defense by a covered non-defense 
agency during any period that there is in effect a determination 
of the Under Secretary of Defense for Acquisition, Technology, 
and Logistics, made in writing, that it is necessary in the 
interest of the Department of Defense to continue to procure 
property and services through such non-defense agency. 
(2) APPLICABILITY
OF
DETERMINATION.—A written deter-
mination with respect to a covered non-defense agency under 
paragraph (1) is in effect for the period, not in excess of one 
year, that the Under Secretary shall specify in the written 
determination. The Under Secretary may extend from time
H. R. 1815—241
to time, for up to one year at a time, the period for which 
the written determination remains in effect. 
(f) TERMINATION OF APPLICABILITY OF LIMITATIONS.—Subsection 
(d) shall cease to apply to a covered non-defense agency on the 
date on which the Inspector General of the Department of Defense 
and the Inspector General of such non-defense agency jointly—
(1) determine that such non-defense agency is compliant 
with defense procurement requirements; and 
(2) notify the Secretary of Defense of that determination. 
(g) IDENTIFICATION OF PROCUREMENTS MADE DURING A PAR-
TICULAR FISCAL YEAR.—For the purposes of subsection (a), a 
procurement shall be treated as being made during a particular 
fiscal year to the extent that funds are obligated by the Department 
of Defense for that procurement in that fiscal year. 
(h) DEFINITIONS.—In this section: 
(1) The term ‘‘covered non-defense agency’’ means each 
of the following: 
(A) The Department of the Treasury. 
(B) The Department of the Interior. 
(C) The National Aeronautics and Space Administra-
tion. 
(2) The term ‘‘governmentwide acquisition contract’’, with 
respect to a covered non-defense agency, means a task or 
delivery order contract that—
(A) is entered into by the non-defense agency; and 
(B) may be used as the contract under which property 
or services are procured for 1 or more other departments 
or agencies of the Federal Government. 
SEC. 812. MANAGEMENT STRUCTURE FOR THE PROCUREMENT OF 
CONTRACT SERVICES. 
(a) MANAGEMENT STRUCTURE.—
(1) IN GENERAL.—Section 2330 of title 10, United States 
Code, is amended to read as follows: 
‘‘§ 2330. Procurement of contract services: management 
structure 
‘‘(a) REQUIREMENT FOR MANAGEMENT STRUCTURE.—The Sec-
retary of Defense shall establish and implement a management 
structure for the procurement of contract services for the Depart-
ment of Defense. The management structure shall provide, at a 
minimum, for the following: 
‘‘(1) The Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics shall—
‘‘(A) develop and maintain (in consultation with the 
service acquisition executives) policies, procedures, and best 
practices guidelines addressing the procurement of contract 
services, including policies, procedures, and best practices 
guidelines for—
‘‘(i) acquisition planning; 
‘‘(ii) solicitation and contract award; 
‘‘(iii) requirements development and management; 
‘‘(iv) contract tracking and oversight; 
‘‘(v) performance evaluation; and 
‘‘(vi) risk management; 
‘‘(B) work with the service acquisition executives and 
other appropriate officials of the Department of Defense—
H. R. 1815—242
‘‘(i) to identify the critical skills and competencies 
needed to carry out the procurement of contract serv-
ices on behalf of the Department of Defense; 
‘‘(ii) to develop a comprehensive strategy for 
recruiting, training, and deploying employees to meet 
the requirements for such skills and competencies; and 
‘‘(iii) to ensure that the military departments and 
Defense Agencies have staff and administrative sup-
port that are adequate to effectively perform their 
duties under this section; 
‘‘(C) establish contract services acquisition categories, 
based on dollar thresholds, for the purpose of establishing 
the level of review, decision authority, and applicable proce-
dures in such categories; and 
‘‘(D) oversee the implementation of the requirements 
of this section and the policies, procedures, and best prac-
tices guidelines established pursuant to subparagraph (A). 
‘‘(2) The service acquisition executive of each military 
department shall be the senior official responsible for the 
management of acquisition of contract services for or on behalf 
of the military department. 
‘‘(3) The Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics shall be the senior official responsible 
for the management of acquisition of contract services for or 
on behalf of the Defense Agencies and other components of 
the Department of Defense outside the military departments. 
‘‘(b) DUTIES
AND
RESPONSIBILITIES
OF
SENIOR
OFFICIALS 
RESPONSIBLE FOR THE MANAGEMENT OF ACQUISITION OF CONTRACT 
SERVICES.—(1) Except as provided in paragraph (2), the senior 
officials responsible for the management of acquisition of contract 
services shall assign responsibility for the review and approval 
of procurements in each contract services acquisition category estab-
lished under subsection (a)(1)(C) to specific Department of Defense 
officials, subject to the direction, supervision, and oversight of such 
senior officials. 
‘‘(2) With respect to the acquisition of contract services by 
a component or command of the Department of Defense the primary 
mission of which is the acquisition of products and services, such 
acquisition shall be conducted in accordance with policies, proce-
dures, and best practices guidelines developed and maintained by 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics pursuant to subsection (a)(1), subject to oversight by the 
senior officials referred to in paragraph (1). 
‘‘(3) In carrying out paragraph (1), each senior official respon-
sible for the management of acquisition of contract services shall—
‘‘(A) implement the requirements of this section and the 
policies, procedures, and best practices guidelines developed 
by the Under Secretary of Defense for Acquisition, Technology, 
and Logistics pursuant to subsection (a)(1)(A); 
‘‘(B) authorize the procurement of contract services through 
contracts entered into by agencies outside the Department of 
Defense in appropriate circumstances, in accordance with the 
requirements of section 854 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (10 U.S.C. 
2304 note), section 814 of the Strom Thurmond National 
Defense Authorization Act for Fiscal Year 1999 (31 U.S.C. 
1535 note), and the regulations implementing such sections;
H. R. 1815—243
‘‘(C) dedicate full-time commodity managers to coordinate 
the procurement of key categories of services; 
‘‘(D) ensure that contract services are procured by means 
of procurement actions that are in the best interests of the 
Department of Defense and are entered into and managed 
in compliance with applicable laws, regulations, directives, and 
requirements; 
‘‘(E) ensure that competitive procedures and performance-
based contracting are used to the maximum extent practicable 
for the procurement of contract services; and 
‘‘(F) monitor data collection under section 2330a of this 
title, and periodically conduct spending analyses, to ensure 
that funds expended for the procurement of contract services 
are being expended in the most rational and economical manner 
practicable. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘procurement action’ includes the following 
actions: 
‘‘(A) Entry into a contract or any other form of agree-
ment. 
‘‘(B) Issuance of a task order, delivery order, or military 
interdepartmental purchase request. 
‘‘(2) The term ‘contract services’ includes all services 
acquired from private sector entities by or for the Department 
of Defense, other than services relating to research and develop-
ment or military construction.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 137 of such title is amended by striking 
the item relating to section 2330 and inserting the following 
new item:
‘‘2330. Procurement of contract services: management structure.’’.
(b) PHASED IMPLEMENTATION.—The requirements of section 
2330 of title 10, United States Code (as added by subsection (a)), 
shall be implemented as follows: 
(1) The Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics shall—
(A) establish an initial set of contract services acquisi-
tion categories, based on dollar thresholds, by not later 
than June 1, 2006; and 
(B) issue an initial set of policies, procedures, and 
best practices guidelines in accordance with section 
2330(a)(1)(A) by not later than October 1, 2006. 
(2) The contract services acquisition categories established 
by the Under Secretary shall include—
(A) one or more categories for acquisitions with an 
estimated value of $250,000,000 or more; 
(B) one or more categories for acquisitions with an 
estimated value of at least $10,000,000 but less than 
$250,000,000; and 
(C) one or more categories for acquisitions with an 
estimated value greater than the simplified acquisition 
threshold but less than $10,000,000. 
(3) The senior officials responsible for the management 
of acquisition of contract services shall assign responsibility 
to specific individuals in the Department of Defense for the 
review and approval of procurements in the contract services
H. R. 1815—244
acquisition categories established by the Under Secretary, as 
follows: 
(A) Not later than October 1, 2006, for all categories 
established pursuant to paragraph (2)(A). 
(B) Not later than October 1, 2007, for all categories 
established pursuant to paragraph (2)(B). 
(C) Not later than October 1, 2009, for all categories 
established pursuant to paragraph (2)(C). 
(c) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives a final report on the implementation of section 
2330 of title 10, United States Code, as added by this section. 
SEC. 813. REPORT ON SERVICE SURCHARGES FOR PURCHASES MADE 
FOR 
MILITARY 
DEPARTMENTS 
THROUGH 
OTHER 
DEPARTMENT OF DEFENSE AGENCIES. 
(a) REPORTS BY MILITARY DEPARTMENTS.—For each of fiscal 
years 2005 and 2006, the Secretary of each military department 
shall, not later than 180 days after the last day of that fiscal 
year, submit to the Under Secretary of Defense for Acquisition, 
Technology, and Logistics a report on the service charges imposed 
on such military department for purchases in amounts greater 
than the simplified acquisition threshold that were made for that 
military department during such fiscal year through a contract 
entered into by an agency of the Department of Defense other 
than that military department. The report shall specify the amounts 
of the service charges and identify the services provided in exchange 
for such charges. 
(b) ANALYSIS
OF MILITARY DEPARTMENT REPORT.—Not later 
than 90 days after receiving a report of the Secretary of a military 
department for a fiscal year under subsection (a), the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics shall 
review the service charges delineated in such report for the acquisi-
tions covered by the report and the services provided in exchange 
for such charges and shall compare those charges with the costs 
of alternative means for making such acquisitions. The analysis 
shall include the Under Secretary’s determinations of whether the 
imposition and amounts of the service charges were reasonable. 
(c) REPORTS TO CONGRESS.—Not later than October 1, 2006 
(for reports for fiscal year 2005 under subsection (a)), and not 
later than October 1, 2007 (for reports for fiscal year 2006 under 
subsection (a)), the Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall submit to the congressional defense 
committees a report on the reports submitted by the Secretaries 
of the military departments under subsection (a), together with 
the Under Secretary’s determinations under subsection (b) with 
regard to the matters set forth in those reports. 
(d) SIMPLIFIED ACQUISITION THRESHOLD DEFINED.—In this sec-
tion, the term ‘‘simplified acquisition threshold’’ has the meaning 
given such term in section 4(11) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(11)). 
SEC. 814. REVIEW OF DEFENSE ACQUISITION STRUCTURES AND 
CAPABILITIES. 
(a) REVIEW
BY
DEFENSE
ACQUISITION
UNIVERSITY.—The 
Defense Acquisition University, acting under the direction and
H. R. 1815—245
authority of the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, shall conduct a review of the acquisition 
structures and capabilities of the Department of Defense, including 
the acquisition structures and capabilities of the following: 
(1) Each military department. 
(2) Each defense agency. 
(3) Any other element of the Department of Defense that 
has an acquisition function. 
(b) ELEMENTS OF REVIEW.—
(1) IN GENERAL.—In reviewing the acquisition structures 
and capabilities of an organization under subsection (a), the 
Defense Acquisition University shall—
(A) determine the current structure of the organization; 
(B) review the evolution of the current structure of 
the organization, including the reasons for each reorganiza-
tion of the structure; 
(C) identify the capabilities needed by the organization 
to fulfill its function and assess the capacity of the organiza-
tion, as currently structured, to provide such capabilities; 
(D) identify any gaps, shortfalls, or inadequacies 
relating to acquisitions in the current structures and 
capabilities of the organization; 
(E) identify any recruiting, retention, training, or 
professional development steps that may be needed to 
address any such gaps, shortfalls, or inadequacies; and 
(F) make such recommendations as the review team 
determines to be appropriate. 
(2) EMPHASIS
IN
REVIEW.—In conducting the review of 
acquisition structures and capabilities under subsection (a), 
the University shall place special emphasis on consideration 
of—
(A) structures, capabilities, and processes for joint 
acquisition, including actions that may be needed to 
improve such structures, capabilities, and processes; and 
(B) actions that may be needed to improve acquisition 
outcomes. 
(c) FUNDING.—The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall provide the Defense Acquisition 
University the funds required to conduct the review under sub-
section (a). 
(d) REPORT ON REVIEW.—
(1) IN GENERAL.—Not later than 180 days after the comple-
tion of the review required by subsection (a), the University 
shall submit to the Under Secretary of Defense for Acquisition, 
Technology, and Logistics a report on the review. 
(2) ANNEX.—The report shall include a separate annex 
on the acquisition structures and capabilities on each organiza-
tion covered by the review. The annex—
(A) shall address the matters specified under sub-
section (b) with respect to such organization; and 
(B) may include such recommendations with respect 
to such organization as the University considers appro-
priate. 
(3) TRANSMITTAL OF FINAL REPORT.—Not later than 90 days 
after the receipt of the report under paragraph (1), the Under
H. R. 1815—246
Secretary shall transmit to the congressional defense commit-
tees a copy of the report, together with the comments of the 
Under Secretary on the report. 
(e) DEFENSE ACQUISITION UNIVERSITY DEFINED.—In this sec-
tion, the term ‘‘Defense Acquisition University’’ means the Defense 
Acquisition University established pursuant to section 1746 of title 
10, United States Code. 
SEC. 815. MODIFICATION OF REQUIREMENTS APPLICABLE TO CON-
TRACTS AUTHORIZED BY LAW FOR CERTAIN MILITARY 
MATERIEL. 
(a) INCLUSION OF COMBAT VEHICLES UNDER REQUIREMENTS.—
Section 2401 of title 10, United States Code, is amended—
(1) by striking ‘‘vessel or aircraft’’ each place it appears 
and inserting ‘‘vessel, aircraft, or combat vehicle’’; 
(2) in subsection (c), by striking ‘‘aircraft or naval vessel’’ 
each place it appears and inserting ‘‘aircraft, naval vessel, 
or combat vehicle’’; 
(3) in subsection (e), by striking ‘‘aircraft or naval vessels’’ 
each place it appears and inserting ‘‘aircraft, naval vessels, 
or combat vehicles’’; and 
(4) in subsection (f)—
(A) by striking ‘‘aircraft and naval vessels’’ and 
inserting ‘‘aircraft, naval vessels, and combat vehicles’’; 
and 
(B) by striking ‘‘such aircraft and vessels’’ and inserting 
‘‘such aircraft, vessels, and combat vehicles’’. 
(b) ADDITIONAL INFORMATION FOR CONGRESS.—Subsection (b) 
of such section is amended—
(1) in paragraph (1)—
(A) in subparagraph (B), by striking ‘‘and’’ at the end; 
(B) in subparagraph (C), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(D) the Secretary has certified to those committees—
‘‘(i) that entering into the proposed contract as 
a means of obtaining the vessel, aircraft, or combat 
vehicle is the most cost-effective means of obtaining 
such vessel, aircraft, or combat vehicle; and 
‘‘(ii) that the Secretary has determined that the 
lease complies with all applicable laws, Office of 
Management and Budget circulars, and Department 
of Defense regulations.’’; and 
(2) by adding at the end the following new paragraphs: 
‘‘(3) Upon receipt of a notice under paragraph (1)(C), a com-
mittee identified in paragraph (1)(B) may request the Inspector 
General of the Department of Defense or the Comptroller General 
of the United States to conduct a review of the proposed contract 
to determine whether or not such contract meets the requirements 
of this section. 
‘‘(4) If a review is requested under paragraph (3), the Inspector 
General of the Department of Defense or the Comptroller General 
of the United States, as the case may be, shall submit to the 
Secretary and the congressional defense committees a report on 
such review before the expiration of the period specified in para-
graph (1)(C).’’.
H. R. 1815—247
(c) APPLICABILITY OF ACQUISITION REGULATIONS.—Such section 
is further amended—
(1) by redesignating subsection (f) as subsection (g); and 
(2) by inserting after subsection (e) the following new sub-
section (f): 
‘‘(f)(1) If a lease or charter covered by this section is a capital 
lease or a lease-purchase—
‘‘(A) the lease or charter shall be treated as an acquisition 
and shall be subject to all applicable statutory and regulatory 
requirements for the acquisition of aircraft, naval vessels, or 
combat vehicles; and 
‘‘(B) funds appropriated to the Department of Defense for 
operation and maintenance may not be obligated or expended 
for the lease or charter. 
‘‘(2) In this subsection, the terms ‘capital lease’ and ‘lease-
purchase’ have the meanings given those terms in Appendix B 
to Office of Management and Budget Circular A–11, as in effect 
on the date of the enactment of the National Defense Authorization 
Act for Fiscal Year 2006.’’. 
(d) CONFORMING AND CLERICAL AMENDMENTS.—
(1) SECTION
HEADING.—The heading of such section is 
amended to read as follows: 
‘‘§ 2401. Requirement for authorization by law of certain con-
tracts relating to vessels, aircraft, and combat 
vehicles’’. 
(2) TABLE OF SECTIONS.—The table of sections at the begin-
ning of chapter 141 of such title is amended by striking the 
item relating to section 2401 and inserting the following new 
item:
‘‘2401. Requirement for authorization by law of certain contracts relating to vessels, 
aircraft, and combat vehicles.’’.
SEC. 816. GUIDANCE ON USE OF TIERED EVALUATIONS OF OFFERS 
FOR CONTRACTS AND TASK ORDERS UNDER CONTRACTS. 
(a) GUIDANCE REQUIRED.—The Secretary of Defense shall pre-
scribe guidance for the military departments and the Defense Agen-
cies on the use of tiered evaluations of offers for contracts and 
for task or delivery orders under contracts. 
(b) ELEMENTS.—The guidance prescribed under subsection (a) 
shall include a prohibition on the initiation by a contracting officer 
of a tiered evaluation of an offer for a contract or for a task 
or delivery order under a contract unless the contracting officer—
(1) has conducted market research in accordance with part 
10 of the Federal Acquisition Regulation in order to determine 
whether or not a sufficient number of qualified small businesses 
are available to justify limiting competition for the award of 
such contract or task or delivery order under applicable law 
and regulations; 
(2) is unable, after conducting market research under para-
graph (1), to make the determination described in that para-
graph; and 
(3) includes in the contract file a written explanation of 
why such contracting officer was unable to make such deter-
mination. 
SEC. 817. JOINT POLICY ON CONTINGENCY CONTRACTING. 
(a) JOINT POLICY.—
H. R. 1815—248
(1) REQUIREMENT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense, in 
consultation with the Chairman of the Joint Chiefs of Staff, 
shall develop a joint policy for contingency contracting during 
combat operations and post-conflict operations. 
(2) MATTERS COVERED.—The joint policy for contingency 
contracting required by paragraph (1) shall, at a minimum, 
provide for—
(A) the designation of a senior commissioned officer 
in each military department with the responsibility for 
administering the policy; 
(B) the assignment of a senior commissioned officer 
with appropriate acquisition experience and qualifications 
to act as head of contingency contracting during combat 
operations, post-conflict operations, and contingency oper-
ations, who shall report directly to the commander of the 
combatant command in whose area of responsibility the 
operations occur; 
(C) an organizational approach to contingency con-
tracting that is designed to ensure that each military 
department is prepared to conduct contingency contracting 
during combat operations and post-conflict operations; 
(D) a requirement to provide training (including 
training under a program to be created by the Defense 
Acquisition University) to contingency contracting per-
sonnel in—
(i) the use of law, regulations, policies, and direc-
tives related to contingency contracting operations; 
(ii) the appropriate use of rapid acquisition 
methods, including the use of exceptions to competition 
requirements under section 2304 of title 10, United 
States Code, sealed bidding, letter contracts, indefinite 
delivery indefinite quantity task orders, set asides 
under section 8(a) of the Small Business Act (15 U.S.C. 
637(a)), undefinitized contract actions, and other tools 
available to expedite the delivery of goods and services 
during combat operations or post-conflict operations; 
(iii) the appropriate use of rapid acquisition 
authority, commanders’ emergency response program 
funds, and other tools unique to contingency con-
tracting; and 
(iv) instruction on the necessity for the prompt 
transition from the use of rapid acquisition authority 
to the use of full and open competition and other 
methods of contracting that maximize transparency 
in the acquisition process; 
(E) appropriate steps to ensure that training is main-
tained for such personnel even when they are not deployed 
in a contingency operation; and 
(F) such steps as may be needed to ensure jointness 
and cross-service coordination in the area of contingency 
contracting. 
(b) REPORTS.—
(1) INTERIM REPORT.—
(A) REQUIREMENT.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Armed Services of the
H. R. 1815—249
Senate and the House of Representatives an interim report 
on contingency contracting. 
(B) MATTERS
COVERED.—The report shall include 
discussions of the following: 
(i) Progress in the development of the joint policy 
under subsection (a). 
(ii) The ability of the Armed Forces to support 
contingency contracting. 
(iii) The ability of commanders of combatant com-
mands to request contingency contracting support and 
the ability of the military departments and the acquisi-
tion support agencies to respond to such requests and 
provide such support, including the availability of rapid 
acquisition personnel for such support. 
(iv) The ability of the current civilian and military 
acquisition workforce to deploy to combat theaters of 
operations and to conduct contracting activities during 
combat and during post-conflict, reconstruction, or 
other contingency operations. 
(v) The effect of different periods of deployment 
on continuity in the acquisition process. 
(2) FINAL REPORT.—Not later than 18 months after the 
date of the enactment of this Act, the Secretary of Defense 
shall submit to the committees listed in paragraph (1)(A) a 
final report on contingency contracting, containing a discussion 
of the implementation of the joint policy developed under sub-
section (a), including updated discussions of the matters covered 
in the interim report. 
(c) DEFINITIONS.—In this section: 
(1) CONTINGENCY
CONTRACTING
PERSONNEL.—The term 
‘‘contingency contracting personnel’’ means members of the 
Armed Forces and civilian employees of the Department of 
Defense who are members of the defense acquisition workforce 
and, as part of their duties, are assigned to provide support 
to contingency operations (whether deployed or not). 
(2) CONTINGENCY
CONTRACTING.—The term ‘‘contingency 
contracting’’ means all stages of the process of acquiring prop-
erty or services by the Department of Defense during a contin-
gency operation. 
(3) CONTINGENCY OPERATION.—The term ‘‘contingency oper-
ation’’ has the meaning provided in section 101(13) of title 
10, United States Code. 
(4) ACQUISITION SUPPORT AGENCIES.—The term ‘‘acquisition 
support agencies’’ means Defense Agencies and Department 
of Defense Field Activities that carry out and provide support 
for acquisition-related activities. 
SEC. 818. ACQUISITION STRATEGY FOR COMMERCIAL SATELLITE 
COMMUNICATION SERVICES. 
(a) REQUIREMENT
FOR SPEND ANALYSIS.—The Secretary of 
Defense shall, as a part of the effort of the Department of Defense 
to develop a revised strategy for acquiring commercial satellite 
communication services, perform a complete spend analysis of the 
acquisitions by the Department of commercial satellite communica-
tion services for the period from fiscal year 2000 through fiscal 
year 2005. That analysis shall, at a minimum, include a determina-
tion of the following:
H. R. 1815—250
(1) Total acquisition costs in aggregate, by fiscal year, 
for items and services purchased. 
(2) Total quantity of items and services purchased. 
(3) Quantity and cost of items and services purchased by 
each entity from each supplier and who used the items and 
services purchased. 
(4) Purchasing patterns that may lead to recommendations 
in which the Department of Defense may centralize operations, 
consolidate requirements, or leverage purchasing power. 
(b) REPORT ON ACQUISITION STRATEGY.—
(1) IN
GENERAL.—Not later than five months after the 
date of the enactment of this Act, the Secretary shall submit 
to Congress a report on the acquisition strategy of the Depart-
ment of Defense for commercial satellite communications serv-
ices. 
(2) ELEMENTS.—The report required by paragraph (1) shall 
include the following: 
(A) A description of the spend analysis required by 
subsection (a), including the results of the analysis. 
(B) The proposed strategy of the Department for 
acquiring commercial satellite communication services, 
which—
(i) shall be based in appropriate part on the results 
of the analysis required by subsection (a); and 
(ii) shall take into account various methods of 
aggregating purchases and leveraging the purchasing 
power of the Department, including through the use 
of multiyear contracting for commercial satellite 
communication services. 
(C) A proposal for such legislative action as the Sec-
retary considers necessary to acquire appropriate types 
and amounts of commercial satellite communications serv-
ices using methods of aggregating purchases and leveraging 
the purchasing power of the Department (including the 
use of multiyear contracting), or if the use of such methods 
is determined inadvisable, a statement of the rationale 
for such determination. 
(D) A proposal for such other legislative action that 
the Secretary considers necessary to implement the 
strategy of the Department for acquiring commercial sat-
ellite communication services. 
SEC. 819. AUTHORIZATION OF EVALUATION FACTOR FOR DEFENSE 
CONTRACTORS EMPLOYING OR SUBCONTRACTING WITH 
MEMBERS OF THE SELECTED RESERVE OF THE RESERVE 
COMPONENTS OF THE ARMED FORCES. 
(a) DEFENSE CONTRACTS.—In awarding any contract for the 
procurement of goods or services to an entity, the Secretary of 
Defense is authorized to use as an evaluation factor whether the 
entity intends to carry out the contract using employees or indi-
vidual subcontractors who are members of the Selected Reserve 
of the reserve components of the Armed Forces. 
(b) DOCUMENTATION OF SELECTED RESERVE-RELATED EVALUA-
TION FACTOR.—Any entity claiming intent to carry out a contract 
using employees or individual subcontractors who are members 
of the Selected Reserve of the reserve components of the Armed
H. R. 1815—251
Forces shall submit proof of the use of such employees or sub-
contractors for the Department of Defense to consider in carrying 
out subsection (a) with respect to that contract. 
(c) REGULATIONS.—The Federal Acquisition Regulation shall 
be revised as necessary to implement this section. 
Subtitle C—Amendments to General Con-
tracting Authorities, Procedures, and 
Limitations 
SEC. 821. PARTICIPATION BY DEPARTMENT OF DEFENSE IN ACQUISI-
TION WORKFORCE TRAINING FUND. 
(a) REQUIRED CONTRIBUTIONS
TO ACQUISITION WORKFORCE 
TRAINING FUND
BY DEPARTMENT
OF DEFENSE.—Section 37(h)(3) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 433(h)(3)) 
is amended—
(1) in subparagraph (A), by striking ‘‘other than the Depart-
ment of Defense’’ and inserting ‘‘, except as provided in subpara-
graph (D)’’; and 
(2) by redesignating subparagraphs (D), (E), (F), and (G) 
as subparagraphs (E), (F), (G), and (H), respectively, and 
inserting after subparagraph (C) the following new subpara-
graph (D): 
‘‘(D) The Administrator of General Services shall transfer 
to the Secretary of Defense fees collected from the Department 
of Defense pursuant to subparagraph (B), to be used by the 
Defense Acquisition University for purposes of acquisition 
workforce training.’’. 
(b) CONFORMING AMENDMENTS.—
(1) OFFICE OF FEDERAL PROCUREMENT POLICY ACT.—Section 
37(a) of the Office of Federal Procurement Policy Act (41 U.S.C. 
433(a)) is amended by striking ‘‘This section’’ and inserting 
‘‘Except as provided in subsection (h)(3), this section’’. 
(2) PUBLIC
LAW
108–136.—Section 1412 of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 
108–136; 117 Stat. 1664) is amended by striking subsection 
(c). 
(c) DEFENSE
ACQUISITION
UNIVERSITY
FUNDING.—Amounts 
transferred under section 37(h)(3)(D) of the Office of Federal 
Procurement Policy Act (as amended by subsection (a)) for use 
by the Defense Acquisition University shall be in addition to other 
amounts authorized for the University. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to fees collected under contracts described 
in section 37(h)(3)(B) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 433(h)(3)(B)) after the date of the enactment of 
this Act. 
SEC. 822. INCREASE IN COST ACCOUNTING STANDARD THRESHOLD. 
Section 26(f)(2)(A) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 422(f)(A)) is amended by striking ‘‘$500,000’’ and 
inserting ‘‘the amount set forth in section 2306a(a)(1)(A)(i) of title 
10, United States Code, as such amount is adjusted in accordance 
with applicable requirements of law’’.
H. R. 1815—252
SEC. 823. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
PROTOTYPE PROJECTS. 
Section 845 of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended—
(1) in subsection (a)—
(A) by striking ‘‘The Director’’ and inserting ‘‘(1) Subject 
to paragraph (2), the Director’’; and 
(B) by adding at the end the following new paragraphs: 
‘‘(2) The authority of this section—
‘‘(A) may be exercised for a prototype project that is 
expected to cost the Department of Defense in excess of 
$20,000,000 but not in excess of $100,000,000 only upon a 
written determination by the senior procurement executive for 
the agency (as designated for the purpose of section 16(c) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 414(c)) 
that—
‘‘(i) the requirements of subsection (d) will be met; 
and 
‘‘(ii) the use of the authority of this section is essential 
to promoting the success of the prototype project; and 
‘‘(B) may be exercised for a prototype project that is 
expected to cost the Department of Defense in excess of 
$100,000,000 only if—
‘‘(i) the Under Secretary of Defense for Acquisition, 
Technology, and Logistics determines in writing that—
‘‘(I) the requirements of subsection (d) will be met; 
and 
‘‘(II) the use of the authority of this section is 
essential to meet critical national security objectives; 
and 
‘‘(ii) the congressional defense committees are notified 
in writing at least 30 days before such authority is exer-
cised. 
‘‘(3) The authority of a senior procurement executive under 
paragraph (2)(A), and the authority of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics under paragraph 
(2)(B), may not be delegated.’’; 
(2) by redesignating subsection (h) as subsection (i); and 
(3) by inserting after subsection (g) the following new sub-
section (h): 
‘‘(h) APPLICABILITY OF PROCUREMENT ETHICS REQUIREMENTS.—
An agreement entered into under the authority of this section 
shall be treated as a Federal agency procurement for the purposes 
of section 27 of the Office of Federal Procurement Policy Act (41 
U.S.C. 423).’’. 
SEC. 824. INCREASED LIMIT APPLICABLE TO ASSISTANCE PROVIDED 
UNDER CERTAIN PROCUREMENT TECHNICAL ASSIST-
ANCE PROGRAMS. 
Section 2414(a)(2) of title 10, United States Code, is amended 
by striking ‘‘$150,000’’ and inserting ‘‘$300,000’’.
H. R. 1815—253
Subtitle D—United States Defense 
Industrial Base Provisions 
SEC. 831. CLARIFICATION OF EXCEPTION FROM BUY AMERICAN 
REQUIREMENTS FOR PROCUREMENT OF PERISHABLE 
FOOD FOR ESTABLISHMENTS OUTSIDE THE UNITED 
STATES. 
Section 2533a(d)(3) of title 10, United States Code, is amended 
by inserting ‘‘, or for,’’ after ‘‘perishable foods by’’. 
SEC. 832. TRAINING FOR DEFENSE ACQUISITION WORKFORCE ON THE 
REQUIREMENTS OF THE BERRY AMENDMENT. 
(a) TRAINING DURING FISCAL YEAR 2006.—The Secretary of 
Defense shall ensure that each member of the defense acquisition 
workforce who participates personally and substantially in the 
acquisition of textiles on a regular basis receives training during 
fiscal year 2006 on the requirements of section 2533a of title 10, 
United States Code (commonly referred to as the ‘‘Berry Amend-
ment’’), and the regulations implementing that section. 
(b) INCLUSION OF INFORMATION IN NEW TRAINING PROGRAMS.—
The Secretary shall ensure that any training program developed 
or implemented after the date of the enactment of this Act for 
members of the defense acquisition workforce who participate 
personally and substantially in the acquisition of textiles on a 
regular basis includes comprehensive information on the require-
ments described in subsection (a). 
SEC. 833. AMENDMENTS TO DOMESTIC SOURCE REQUIREMENTS 
RELATING TO CLOTHING MATERIALS AND COMPONENTS 
COVERED. 
(a) NOTICE.—Section 2533a of title 10, United States Code, 
is amended by adding at the end the following new subsection: 
‘‘(k) NOTIFICATION REQUIRED WITHIN 7 DAYS AFTER CONTRACT 
AWARD IF CERTAIN EXCEPTIONS APPLIED.—In the case of any con-
tract for the procurement of an item described in subparagraph 
(B), (C), (D), or (E) of subsection (b)(1), if the Secretary of Defense 
or of the military department concerned applies an exception set 
forth in subsection (c) or (e) with respect to that contract, the 
Secretary shall, not later than 7 days after the award of the con-
tract, post a notification that the exception has been applied on 
the Internet site maintained by the General Services Administration 
known as FedBizOps.gov (or any successor site).’’. 
(b) CLOTHING MATERIALS AND COMPONENTS COVERED.—Sub-
section (b) of section 2533a of title 10, United States Code, is 
amended in paragraph (1)(B) by inserting before the semicolon 
the following: ‘‘and the materials and components thereof, other 
than sensors, electronics, or other items added to, and not normally 
associated with, clothing (and the materials and components 
thereof)’’.
H. R. 1815—254
Subtitle E—Other Matters 
SEC. 841. REVIEW AND REPORT ON DEPARTMENT OF DEFENSE 
EFFORTS TO IDENTIFY CONTRACT FRAUD, WASTE, AND 
ABUSE. 
(a) REVIEW BY COMPTROLLER GENERAL.—The Comptroller Gen-
eral shall conduct a review of efforts by the Department of Defense 
to identify and assess the areas of vulnerability of Department 
of Defense contracts to fraud, waste, and abuse. 
(b) MATTERS COVERED.—
(1) IN GENERAL.—In conducting the review, the Comptroller 
General shall summarize the ongoing efforts of the Department 
of Defense, including the reviews described in paragraph (2), 
and make recommendations about areas not addressed or items 
that need further investigation. 
(2) DEPARTMENT OF DEFENSE REVIEWS.—The reviews by 
the Department of Defense referred to in paragraph (1) are 
the following: 
(A) A report by a task force of the Defense Science 
Board dated March 2005 and titled ‘‘Management Over-
sight in Acquisition Organizations’’. 
(B) An audit by the Inspector General of the Depart-
ment of Defense titled ‘‘Service Acquisition Executives 
Management Oversight and Procurement Authority’’. 
(C) A task force to address contract fraud, waste, and 
abuse designated by the Deputy Secretary of Defense. 
(c) REPORT.—Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committees on Armed Services of the Senate and the House 
of Representatives a report on the results of the review, including 
the Comptroller General’s findings and recommendations. 
SEC. 842. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVAN-
TAGED BUSINESSES AND CERTAIN INSTITUTIONS OF 
HIGHER EDUCATION. 
Section 2323(k) of title 10, United States Code, is amended 
by striking ‘‘2006’’ both places it appears and inserting ‘‘2009’’. 
SEC. 843. EXTENSION OF DEADLINE FOR REPORT OF ADVISORY PANEL 
ON LAWS AND REGULATIONS ON ACQUISITION PRAC-
TICES. 
Section 1423(d) of the Services Acquisition Reform Act of 2003 
(title XIV of Public Law 108–136; 117 Stat. 1669; 41 U.S.C. 405 
note) is amended by striking ‘‘one year’’ and inserting ‘‘18 months’’. 
SEC. 844. EXCLUSION OF CERTAIN SECURITY EXPENSES FROM CONSID-
ERATION FOR PURPOSE OF SMALL BUSINESS SIZE 
STANDARDS. 
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)), is 
amended by adding at the end the following: 
‘‘(4) EXCLUSION
OF
CERTAIN
SECURITY
EXPENSES
FROM 
CONSIDERATION FOR PURPOSE OF SMALL BUSINESS SIZE STAND-
ARDS.—
‘‘(A) DETERMINATION
REQUIRED.—Not later than 30 
days after the date of enactment of this paragraph, the 
Administrator shall review the application of size standards 
established pursuant to paragraph (2) to small business
H. R. 1815—255
concerns that are performing contracts in qualified areas 
and determine whether it would be fair and appropriate 
to exclude from consideration in the average annual gross 
receipts of such small business concerns any payments 
made to such small business concerns by Federal agencies 
to reimburse such small business concerns for the cost 
of subcontracts entered for the sole purpose of providing 
security services in a qualified area. 
‘‘(B) ACTION REQUIRED.—Not later than 60 days after 
the date of enactment of this paragraph, the Administrator 
shall either—
‘‘(i) initiate an adjustment to the size standards, 
as described in subparagraph (A), if the Administrator 
determines that such an adjustment would be fair 
and appropriate; or 
‘‘(ii) provide a report to the Committee on Small 
Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Rep-
resentatives explaining in detail the basis for the deter-
mination by the Administrator that such an adjust-
ment would not be fair and appropriate. 
‘‘(C) QUALIFIED AREAS.—In this paragraph, the term 
‘qualified area’ means—
‘‘(i) Iraq, 
‘‘(ii) Afghanistan, and 
‘‘(iii) any foreign country which included a combat 
zone, as that term is defined in section 112(c)(2) of 
the Internal Revenue Code of 1986, at the time of 
performance of the relevant Federal contract or sub-
contract.’’. 
SEC. 845. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAM-
AGED BY DROUGHT. 
(a) DROUGHT DISASTER AUTHORITY.—
(1) DEFINITION OF DISASTER.—Section 3(k) of the Small 
Business Act (15 U.S.C. 632(k)) is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(k)’’; and 
(B) by adding at the end the following: 
‘‘(2) For purposes of section 7(b)(2), the term ‘disaster’ 
includes—
‘‘(A) drought; and 
‘‘(B) below average water levels in the Great Lakes, or 
on any body of water in the United States that supports com-
merce by small business concerns.’’. 
(2) DROUGHT DISASTER RELIEF AUTHORITY.—Section 7(b)(2) 
of the Small Business Act (15 U.S.C. 636(b)(2)) is amended—
(A) by inserting ‘‘(including drought), with respect to 
both farm-related and nonfarm-related small business con-
cerns,’’ before ‘‘if the Administration’’; and 
(B) in subparagraph (B), by striking ‘‘the Consolidated 
Farmers Home Administration Act of 1961 (7 U.S.C. 1961)’’ 
and inserting the following: ‘‘section 321 of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1961), in which 
case, assistance under this paragraph may be provided 
to farm-related and nonfarm-related small business con-
cerns, subject to the other applicable requirements of this 
paragraph’’.
H. R. 1815—256
(b) LIMITATION ON LOANS.—From funds otherwise appropriated 
for loans under section 7(b) of the Small Business Act (15 U.S.C. 
636(b)), not more than $9,000,000 may be used during each of 
fiscal years 2005 through 2008, to provide drought disaster loans 
to nonfarm-related small business concerns in accordance with this 
section and the amendments made by this section. 
(c) 
PROMPT
RESPONSE
TO
DISASTER
REQUESTS.—Section 
7(b)(2)(D) of the Small Business Act (15 U.S.C. 636(b)(2)(D)) is 
amended by striking ‘‘Upon receipt of such certification, the 
Administration may’’ and inserting ‘‘Not later than 30 days after 
the date of receipt of such certification by a Governor of a State, 
the Administration shall respond in writing to that Governor on 
its determination and the reasons therefore, and may’’. 
(d) RULEMAKING.—Not later than 45 days after the date of 
enactment of this Act, the Administrator of the Small Business 
Administration shall promulgate final rules to carry out this section 
and the amendments made by this section. 
SEC. 846. EXTENSION OF LIMITED ACQUISITION AUTHORITY FOR THE 
COMMANDER OF THE UNITED STATES JOINT FORCES 
COMMAND. 
(a) EXTENSION OF AUTHORITY.—Subsection (f) of section 167a 
of title 10, United States Code, is amended—
(1) by striking ‘‘through 2006’’ and inserting ‘‘through 
2008’’; and 
(2) by striking ‘‘September 30, 2006’’ and inserting ‘‘Sep-
tember 30, 2008’’. 
(b) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives a report on the implementation of section 167a 
of title 10, United States Code. 
SEC. 847. CIVILIAN BOARD OF CONTRACT APPEALS. 
(a) IN GENERAL.—The Office of Federal Procurement Policy 
Act (41 U.S.C. 401 et seq.) is amended by adding at the end 
the following new section: 
‘‘SEC. 42. CIVILIAN BOARD OF CONTRACT APPEALS. 
‘‘(a) BOARD ESTABLISHED.—There is established in the General 
Services Administration a board of contract appeals to be known 
as the Civilian Board of Contract Appeals (in this section referred 
to as the ‘Civilian Board’). 
‘‘(b) MEMBERSHIP.—
‘‘(1) APPOINTMENT.—(A) The Civilian Board shall consist 
of members appointed by the Administrator of General Services 
(in consultation with the Administrator for Federal Procure-
ment Policy) from a register of applicants maintained by the 
Administrator of General Services, in accordance with rules 
issued by the Administrator of General Services (in consultation 
with the Administrator for Federal Procurement Policy) for 
establishing and maintaining a register of eligible applicants 
and selecting Civilian Board members. The Administrator of 
General Services shall appoint a member without regard to 
political affiliation and solely on the basis of the professional 
qualifications required to perform the duties and responsibil-
ities of a Civilian Board member.
H. R. 1815—257
‘‘(B) The members of the Civilian Board shall be selected 
and appointed to serve in the same manner as administrative 
law judges appointed pursuant to section 3105 of title 5, United 
States Code, with an additional requirement that such members 
shall have had not fewer than five years of experience in 
public contract law. 
‘‘(C) Notwithstanding subparagraph (B) and subject to para-
graph (2), the following persons shall serve as Civilian Board 
members: any full-time member of any agency board of contract 
appeals other than the Armed Services Board of Contract 
Appeals, the Postal Service Board of Contract Appeals, and 
the board of contract appeals of the Tennessee Valley Authority 
serving as such on the day before the effective date of this 
section. 
‘‘(2) REMOVAL.—Members of the Civilian Board shall be 
subject to removal in the same manner as administrative law 
judges, as provided in section 7521 of title 5, United States 
Code. 
‘‘(3) COMPENSATION.—Compensation for members of the 
Civilian Board shall be determined under section 5372a of 
title 5, United States Code. 
‘‘(c) FUNCTIONS.—
‘‘(1) IN GENERAL.—The Civilian Board shall have jurisdic-
tion as provided by section 8(d) of the Contract Disputes Act 
of 1978 (41 U.S.C. 607(b)). 
‘‘(2) ADDITIONAL JURISDICTION.—The Civilian Board may, 
with the concurrence of the Federal agency or agencies 
affected—
‘‘(A) assume jurisdiction over any additional category 
of laws or disputes over which an agency board of contract 
appeals established pursuant to section 8 of the Contract 
Disputes Act exercised jurisdiction before the effective date 
of this section; and 
‘‘(B) assume any other functions performed by such 
a board before such effective date on behalf of such agen-
cies.’’. 
(b) TRANSFERS.—The personnel employed in connection with, 
and the assets, liabilities, contracts, property, records, and unex-
pended balance of appropriations, authorizations, allocations, and 
other funds employed, held, used, arising from, available to, or 
to be made available in connection with the functions vested by 
law in the agency boards of contract appeals established pursuant 
to section 8 of the Contract Disputes Act of 1978 (41 U.S.C. 607) 
(as in effect on the day before the effective date described in 
subsection (g)) other than the Armed Services Board of Contract 
Appeals, the board of contract appeals of the Tennessee Valley 
Authority, and the Postal Service Board of Contract Appeals shall 
be transferred to the Civilian Board of Contract Appeals for appro-
priate allocation by the Chairman of that Board. 
(c) TERMINATION OF BOARDS OF CONTRACT APPEALS.—
(1) TERMINATION.—Effective on the effective date described 
in subsection (g), the agency boards of contract appeals estab-
lished pursuant to section 8 of the Contract Disputes Act of 
1978 (41 U.S.C. 607) (as in effect on the day before such 
effective date), other than the Armed Services Board of Contract 
Appeals, the board of contract appeals of the Tennessee Valley
H. R. 1815—258
Authority, and the Postal Service Board of Contract Appeals, 
shall terminate. 
(2) SAVINGS PROVISION.—(A) This section and the amend-
ments made by this section shall not affect any proceedings 
pending on the effective date described in subsection (g) before 
any agency board of contract appeals terminated by paragraph 
(1). 
(B) In the case of any such proceedings pending before 
an agency board of contract appeals other than the Armed 
Services Board of Contract Appeals or the board of contract 
appeals of the Tennessee Valley Authority, the proceedings 
shall be continued by the Civilian Board of Contract Appeals, 
and orders which were issued in any such proceeding by the 
agency board shall continue in effect until modified, terminated, 
superseded, or revoked by the Civilian Board of Contract 
Appeals, by a court of competent jurisdiction, or by operation 
of law. 
(d) AMENDMENTS TO CONTRACTS DISPUTES ACT.—
(1) AMENDMENTS TO DEFINITIONS.—Section 2 of the Con-
tract Disputes Act of 1978 (41 U.S.C. 601) is amended—
(A) in paragraph (2), by striking ‘‘, the United States 
Postal Service, and the Postal Rate Commission’’; 
(B) by redesignating paragraph (7) as paragraph (9); 
(C) by amending paragraph (6) to read as follows: 
‘‘(6) the terms ‘agency board’ or ‘agency board of contract 
appeals’ mean—
‘‘(A) the Armed Services Board of Contract Appeals 
established under section 8(a)(1) of this Act; 
‘‘(B) the Civilian Board of Contract Appeals established 
under section 42 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403 et seq.); 
‘‘(C) the board of contract appeals of the Tennessee 
Valley Authority; or 
‘‘(D) the Postal Service Board of Contract Appeals 
established under section 8(c) of this Act;’’; and 
(D) by inserting after paragraph (6) the following new 
paragraphs: 
‘‘(7) the term ‘Armed Services Board’ means the Armed 
Services Board of Contract Appeals established under section 
8(a)(1) of this Act; 
‘‘(8) the term ‘Civilian Board’ means the Civilian Board 
of Contract Appeals established under section 42 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 403 et seq.); 
and’’. 
(2) AMENDMENTS
RELATING
TO
JURISDICTION.—Section 8 
of the Contract Disputes Act of 1978 (41 U.S.C. 607) is 
amended—
(A) in subsection (d)—
(i) by striking the first sentence and inserting the 
following: ‘‘The Armed Services Board shall have juris-
diction to decide any appeal from a decision of a con-
tracting officer of the Department of Defense, the 
Department of the Army, the Department of the Navy, 
the Department of the Air Force, or the National Aero-
nautics and Space Administration relative to a contract 
made by that department or agency. The Civilian 
Board shall have jurisdiction to decide any appeal from
H. R. 1815—259
a decision of a contracting officer of any executive 
agency (other than the Department of Defense, the 
Department of the Army, the Department of the Navy, 
the Department of the Air Force, the National Aero-
nautics and Space Administration, the United States 
Postal Service, the Postal Rate Commission, or the 
Tennessee Valley Authority) relative to a contract 
made by that agency. Each other agency board shall 
have jurisdiction to decide any appeal from a decision 
of a contracting officer relative to a contract made 
by its agency.’’; and 
(ii) in the second sentence, by striking ‘‘Claims 
Court’’ and inserting ‘‘Court of Federal Claims’’; 
(B) by striking subsection (c) and inserting the fol-
lowing: 
‘‘(c) There is established an agency board of contract appeals 
to be known as the ‘Postal Service Board of Contract Appeals’. 
Such board shall have jurisdiction to decide any appeal from a 
decision of a contracting officer of the United States Postal Service 
or the Postal Rate Commission relative to a contract made by 
either agency. Such board shall consist of judges appointed by 
the Postmaster General who shall meet the qualifications of and 
serve in the same manner as members of the Civilian Board of 
Contract Appeals. This Act shall apply to contract disputes before 
the Postal Service Board of Contract Appeals in the same manner 
as they apply to contract disputes before the Civilian Board.’’. 
(3) CONFORMING AMENDMENTS.—Section 8 of the Contract 
Disputes Act of 1978 (41 U.S.C. 607) is further amended—
(A) in subsection (a)(1)—
(i) by striking ‘‘Except as provided in paragraph 
(2) an agency board of contract appeals’’ and inserting 
‘‘An Armed Services Board of Contract Appeals’’; and 
(ii) by striking ‘‘an executive agency when the 
agency head’’ and inserting ‘‘the Department of Defense 
when the Secretary of Defense’’; and 
(B) in subsection (b)(1)—
(i) by striking ‘‘Except as provided in paragraph 
(2), the members of agency boards’’ and inserting ‘‘The 
members of the Armed Services Board of Contract 
Appeals’’; 
(ii) in the second sentence, by striking ‘‘agency 
boards’’ and inserting ‘‘such Board’’; 
(iii) in the third sentence, by striking ‘‘each board’’ 
and inserting ‘‘such Board’’ and by striking ‘‘the agency 
head’’ and inserting ‘‘the Secretary of Defense’’; and 
(iv) in the fourth sentence, by striking ‘‘an agency 
board’’ and inserting ‘‘such Board’’. 
(4) REPEAL
OF
OBSOLETE
PROVISIONS.—Section 8 of the 
Contract Disputes Act of 1978 (41 U.S.C. 607) is further 
amended by striking subsections (h) and (i). 
(e) REFERENCES.—Any reference to an agency board of contract 
appeals other than the Armed Services Board of Contract Appeals, 
the board of contract appeals of the Tennessee Valley Authority, 
or the Postal Service Board of Contract Appeals in any provision 
of law or in any rule, regulation, or other paper of the United 
States shall be treated as referring to the Civilian Board of Contract
H. R. 1815—260
Appeals established under section 42 of the Office of Federal 
Procurement Policy Act. 
(f) CONFORMING
AND
CLERICAL
AMENDMENTS.—(1) Section 
5372a(a)(1) of title 5, United States Code, is amended by inserting 
after ‘‘of 1978’’ the following: ‘‘or a member of the Civilian Board 
of Contract Appeals appointed under section 42 of the Office of 
Federal Procurement Policy Act’’. 
(2) The table of contents for the Office of Federal Procurement 
Policy Act (contained in section 1(b)) is amended by adding at 
the end the following new item:
‘‘42. Civilian Board of Contract Appeals.’’.
(g) EFFECTIVE DATE.—Section 42 of the Office of Federal 
Procurement Policy Act, as added by this section, and the amend-
ments and repeals made by this section, shall take effect 1 year 
after the date of the enactment of this Act. 
SEC. 848. STATEMENT OF POLICY AND REPORT RELATING TO CON-
TRACTING 
WITH 
EMPLOYERS 
OF 
PERSONS 
WITH 
DISABILITIES. 
(a) EXTENSIONS OF INAPPLICABILITY OF CERTAIN ACTS.—Section 
853 of the Ronald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 2021) is 
amended in subsections (a)(2)(A) and (b)(2)(A) by striking ‘‘2005’’ 
and inserting ‘‘2006’’. 
(b) STATEMENT OF POLICY.—The Secretary of Defense, the Sec-
retary of Education, and the Chairman of the Committee for Pur-
chase From People Who Are Blind or Severely Disabled shall jointly 
issue a statement of policy related to the implementation of the 
Randolph-Sheppard Act (20 U.S.C. 107 et seq.) and the Javits-
Wagner-O’Day Act (41 U.S.C. 48) within the Department of Defense 
and the Department of Education. The joint statement of policy 
shall specifically address the application of those Acts to both oper-
ation and management of all or any part of a military mess hall, 
military troop dining facility, or any similar dining facility operated 
for the purpose of providing meals to members of the Armed Forces, 
and shall take into account and address, to the extent practicable, 
the positions acceptable to persons representing programs imple-
mented under each Act. 
(c) REPORT.—Not later than April 1, 2006, the Secretary of 
Defense, the Secretary of Education, and the Chairman of the 
Committee for Purchase From People Who Are Blind or Severely 
Disabled shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives, the Committee on 
Health, Education, Labor and Pensions of the Senate, and the 
Committee on Education and the Workforce of the House of Rep-
resentatives a report describing the joint statement of policy issued 
under subsection (b), with such findings and recommendations as 
the Secretaries consider appropriate. 
SEC. 849. STUDY ON DEPARTMENT OF DEFENSE CONTRACTING WITH 
SMALL BUSINESS CONCERNS OWNED AND CONTROLLED 
BY SERVICE-DISABLED VETERANS. 
(a) STUDY REQUIRED.—The Secretary of Defense shall conduct 
a study on Department of Defense procurement contracts with 
small business concerns owned and controlled by service-disabled 
veterans.
H. R. 1815—261
(b) ELEMENTS OF STUDY.—The study required by subsection 
(a) shall include the following determinations: 
(1) Any steps taken by the Department of Defense to meet 
the Government-wide goal of participation by small business 
concerns owned and controlled by service-disabled veterans in 
at least 3 percent of the total value of all prime contract 
and subcontract awards, as required under section 15(g) of 
the Small Business Act (15 U.S.C. 644(g)). 
(2) If the Department of Defense has failed to meet such 
goal, an explanation of the reasons for such failure. 
(3) Any steps taken within the Department of Defense 
to make contracting officers aware of the 3 percent goal and 
to ensure that procurement officers are working actively to 
achieve such goal. 
(4) An estimate of the number of appropriately qualified 
small business concerns owned and controlled by service-dis-
abled veterans which submitted responsive offers on contracts 
with the Department of Defense during the preceding fiscal 
year. 
(5) Any outreach efforts made by the Department to enter 
into contracts with small business concerns owned and con-
trolled by service-disabled veterans. 
(6) Any additional outreach efforts the Department should 
make. 
(7) The appropriate role of prime contractors in achieving 
goals established for small business concerns owned and con-
trolled by service-disabled veterans under section 36 of the 
Small Business Act (15 U.S.C. 657f). 
(c) REPORT.—Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to Congress 
a report on the findings of the study conducted under this section. 
(d) SMALL BUSINESS CONCERN OWNED AND CONTROLLED BY 
SERVICE-DISABLED VETERANS.—In this section, the term ‘‘small 
business concern owned and controlled by service-disabled veterans’’ 
has the meaning given that term in section 3(q) of the Small 
Business Act (15 U.S.C. 632(q)). 
TITLE IX—DEPARTMENT OF DEFENSE 
ORGANIZATION AND MANAGEMENT
SUBTITLE A—GENERAL DEPARTMENT OF DEFENSE MANAGEMENT MATTERS 
Sec. 901. Parity in pay levels among Under Secretary positions. 
Sec. 902. Expansion of eligibility for leadership of Department of Defense Test Re-
source Management Center. 
Sec. 903. Standardization of authority for acceptance of gifts and donations for De-
partment of Defense regional centers for security studies. 
Sec. 904. Directors of Small Business Programs in Department of Defense and mili-
tary departments. 
Sec. 905. Plan to defend the homeland against cruise missiles and other low-alti-
tude aircraft. 
Sec. 906. Provision of audiovisual support services by White House Communica-
tions Agency on nonreimbursable basis. 
Sec. 907. Report on establishment of a Deputy Secretary of Defense for Manage-
ment. 
Sec. 908. Responsibility of the Joint Chiefs of Staff as military advisers to the 
Homeland Security Council. 
Sec. 909. Improvement in health care services for residents of Armed Forces Retire-
ment Home.
H. R. 1815—262
SUBTITLE B—SPACE ACTIVITIES 
Sec. 911. Space Situational Awareness Strategy and space control mission review. 
Sec. 912. Military satellite communications. 
Sec. 913. Operationally responsive space. 
Sec. 914. Report on use of Space Radar for topographical mapping for scientific and 
civil purposes. 
Sec. 915. Sense of Congress regarding national security aspect of United States 
preeminence in human spaceflight. 
SUBTITLE C—CHEMICAL DEMILITARIZATION PROGRAM 
Sec. 921. Clarification of Cooperative Agreement Authority under Chemical Demili-
tarization Program. 
Sec. 922. Chemical demilitarization facilities. 
SUBTITLE D—INTELLIGENCE-RELATED MATTERS 
Sec. 931. Department of Defense Strategy for Open-Source Intelligence. 
Sec. 932. Comprehensive inventory of Department of Defense Intelligence and In-
telligence-related programs and projects. 
Sec. 933. Operational files of the Defense Intelligence Agency.
Subtitle A—General Department of 
Defense Management Matters 
SEC. 901. PARITY IN PAY LEVELS AMONG UNDER SECRETARY POSI-
TIONS. 
(a) POSITIONS OF UNDER SECRETARIES OF MILITARY DEPART-
MENTS RAISED TO LEVEL III OF THE EXECUTIVE SCHEDULE.—Section 
5314 of title 5, United States Code, is amended by inserting after 
‘‘Under Secretary of Defense for Intelligence’’ the following: 
‘‘Under Secretary of the Air Force. 
‘‘Under Secretary of the Army. 
‘‘Under Secretary of the Navy.’’. 
(b) CONFORMING AMENDMENT.—Section 5315 of such title is 
amended by striking the following: 
‘‘Under Secretary of the Air Force. 
‘‘Under Secretary of the Army. 
‘‘Under Secretary of the Navy.’’. 
SEC. 902. EXPANSION OF ELIGIBILITY FOR LEADERSHIP OF DEPART-
MENT OF DEFENSE TEST RESOURCE MANAGEMENT 
CENTER. 
(a) DIRECTOR OF CENTER.—Paragraph (1) of section 196(b) of 
title 10, United States Code, is amended by striking ‘‘commissioned 
officers’’ and all that follows through the end of the sentence and 
inserting ‘‘individuals who have substantial experience in the field 
of test and evaluation.’’. 
(b) DEPUTY DIRECTOR OF CENTER.—Paragraph (2) of such sec-
tion is amended by striking ‘‘senior civilian officers and employees 
of the Department of Defense’’ and inserting ‘‘individuals’’. 
SEC. 903. STANDARDIZATION OF AUTHORITY FOR ACCEPTANCE OF 
GIFTS AND DONATIONS FOR DEPARTMENT OF DEFENSE 
REGIONAL CENTERS FOR SECURITY STUDIES. 
(a) AUTHORITY TO ACCEPT.—
(1) IN GENERAL.—Section 2611 of title 10, United States 
Code, is amended to read as follows:
H. R. 1815—263
‘‘§ 2611. Regional centers for security studies: acceptance of 
gifts and donations 
‘‘(a) AUTHORITY TO ACCEPT GIFTS AND DONATIONS.—(1) Subject 
to subsection (c), the Secretary of Defense may, on behalf of any 
Department of Defense regional center for security studies, any 
combination of such centers, or such centers generally, accept from 
any source specified in subsection (b) any gift or donation for 
purposes of defraying the costs or enhancing the operation of such 
a center, combination of centers, or centers generally, as the case 
may be. 
‘‘(2) For purposes of this section, the Department of Defense 
regional centers for security studies are the following: 
‘‘(A) The George C. Marshall European Center for Security 
Studies. 
‘‘(B) The Asia-Pacific Center for Security Studies. 
‘‘(C) The Center for Hemispheric Defense Studies. 
‘‘(D) The Africa Center for Strategic Studies. 
‘‘(E) The Near East South Asia Center for Strategic Studies. 
‘‘(b) SOURCES.—The sources from which gifts and donations 
may be accepted under subsection (a) are the following: 
‘‘(1) The government of a State or a political subdivision 
of a State. 
‘‘(2) The government of a foreign country. 
‘‘(3) A foundation or other charitable organization, including 
a foundation or charitable organization this is organized or 
operates under the laws of a foreign country. 
‘‘(4) Any source in the private sector of the United States 
or a foreign country. 
‘‘(c) LIMITATION.—The Secretary may not accept a gift or dona-
tion under subsection (a) if acceptance of the gift or donation 
would compromise or appear to compromise—
‘‘(1) the ability of the Department of Defense, any employee 
of the Department, or any member of the armed forces to 
carry out the responsibility or duty of the Department in a 
fair and objective manner; or 
‘‘(2) the integrity of any program of the Department, or 
of any person involved in such a program. 
‘‘(d) CRITERIA FOR ACCEPTANCE.—The Secretary shall prescribe 
written guidance setting forth the criteria to be used in determining 
whether the acceptance of a gift or donation would have a result 
described in subsection (c). 
‘‘(e) CREDITING OF FUNDS.—Funds accepted by the Secretary 
under section (a) shall be credited to appropriations available to 
the Department of Defense for the regional center, combination 
of centers, or centers generally for which accepted. Funds so credited 
shall be merged with the appropriations to which credited and 
shall be available for the regional center, combination of centers, 
or centers generally, as the case may be, for the same purposes 
as the appropriations with which merged. Any funds accepted under 
this section shall remain available until expended. 
‘‘(f) GIFT OR DONATION DEFINED.—In this section, the term 
‘gift or donation’ means any gift or donation of funds, materials 
(including research materials), real or personal property, or services 
(including lecture services and faculty services).’’.
H. R. 1815—264
(2) CLERICAL AMENDMENT.—The item relating to section 
2611 in the table of sections at the beginning of chapter 155 
of such title is amended to read as follows:
‘‘2611. Regional centers for security studies: acceptance of gifts and donations.’’.
(b) ANNUAL REPORT ON GIFT ACCEPTANCE.—Section 184(b)(4) 
of title 10, United States Code, is amended by striking ‘‘under 
any of the’’ and all that follows and inserting ‘‘under section 2611 
of this title.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 1306 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2892) 
is amended—
(A) by striking subsection (a); 
(B) by redesignating subsection (b) as subsection (a); 
(C) by striking ‘‘(1)’’ the first place it appears; 
(D) by redesignating paragraph (2) as subsection (b); 
(E) by inserting ‘‘SOURCE OF FUNDS.—’’ before ‘‘Costs 
for’’; and 
(F) by striking ‘‘paragraph (1)’’ and insertion ‘‘sub-
section (a)’’. 
(2) Section 1065 of the National Defense Authorization 
Act for Fiscal Year 1997 (10 U.S.C. 113 note) is amended—
(A) by striking subsection (a); and 
(B) by redesignating subsections (b) and (c) as sub-
sections (a) and (b), respectively. 
SEC. 904. DIRECTORS OF SMALL BUSINESS PROGRAMS IN DEPART-
MENT OF DEFENSE AND MILITARY DEPARTMENTS. 
(a) REDESIGNATION OF EXISTING POSITIONS AND OFFICES.—
(1) POSITIONS
REDESIGNATED.—The following positions 
within the Department of Defense are redesignated as follows: 
(A) The Director of Small and Disadvantaged Business 
Utilization of the Department of Defense is redesignated 
as the Director of Small Business Programs of the Depart-
ment of Defense. 
(B) The Director of Small and Disadvantaged Business 
Utilization of the Department of the Army is redesignated 
as the Director of Small Business Programs of the Depart-
ment of the Army. 
(C) The Director of Small and Disadvantaged Business 
Utilization of the Department of the Navy is redesignated 
as the Director of Small Business Programs of the Depart-
ment of the Navy. 
(D) The Director of Small and Disadvantaged Business 
Utilization of the Department of the Air Force is redesig-
nated as the Director of Small Business Programs of the 
Department of the Air Force. 
(2) OFFICES REDESIGNATED.—The following offices within 
the Department of Defense are redesignated as follows: 
(A) The Office of Small and Disadvantaged Business 
Utilization of the Department of Defense is redesignated 
as the Office of Small Business Programs of the Depart-
ment of Defense. 
(B) The Office of Small and Disadvantaged Business 
Utilization of the Department of the Army is redesignated 
as the Office of Small Business Programs of the Depart-
ment of the Army.
H. R. 1815—265
(C) The Office of Small and Disadvantaged Business 
Utilization of the Department of the Navy is redesignated 
as the Office of Small Business Programs of the Depart-
ment of the Navy. 
(D) The Office of Small and Disadvantaged Business 
Utilization of the Department of the Air Force is redesig-
nated as the Office of Small Business Programs of the 
Department of the Air Force. 
(3) REFERENCES.—Any reference in any law, regulation, 
document, paper, or other record of the United States to a 
position or office redesignated by paragraph (1) or (2) shall 
be deemed to be a reference to the position or office as so 
redesignated. 
(b) DEPARTMENT OF DEFENSE.—
(1) OSD POSITION
AND
OFFICE.—Chapter 4 of title 10, 
United States Code, is amended by adding at the end the 
following new section: 
‘‘§ 144. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Business Programs 
in the Department of Defense. The Director is appointed by the 
Secretary of Defense. 
‘‘(b) OFFICE
OF SMALL BUSINESS PROGRAMS.—The Office of 
Small Business Programs of the Department of Defense is the 
office that is established within the Office of the Secretary of 
Defense under section 15(k) of the Small Business Act (15 U.S.C. 
644(k)). The Director of Small Business Programs is the head of 
such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties 
regarding small business programs of the Department of Defense, 
and shall exercise such powers regarding those programs, as the 
Secretary of Defense may prescribe. 
‘‘(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies 
to the Director of Small Business Programs.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by adding at the end 
the following new item:
‘‘144. Director of Small Business Programs.’’.
(c) DEPARTMENT OF THE ARMY.—
(1) POSITION AND OFFICE.—Chapter 303 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 3024. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Business Programs 
in the Department of the Army. The Director is appointed by 
the Secretary of the Army. 
‘‘(b) OFFICE
OF SMALL BUSINESS PROGRAMS.—The Office of 
Small Business Programs of the Department of the Army is the 
office that is established within the Department of the Army under 
section 15(k) of the Small Business Act (15 U.S.C. 644(k)). The 
Director of Small Business Programs is the head of such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties 
regarding small business programs of the Department of the Army,
H. R. 1815—266
and shall exercise such powers regarding those programs, as the 
Secretary of the Army may prescribe. 
‘‘(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies 
to the Director of Small Business Programs.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by adding at the end 
the following new item:
‘‘3024. Director of Small Business Programs.’’.
(d) DEPARTMENT OF THE NAVY.—
(1) POSITION AND OFFICE.—Chapter 503 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 5028. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Business Programs 
in the Department of the Navy. The Director is appointed by the 
Secretary of the Navy. 
‘‘(b) OFFICE
OF SMALL BUSINESS PROGRAMS.—The Office of 
Small Business Programs of the Department of the Navy is the 
office that is established within the Department of the Navy under 
section 15(k) of the Small Business Act (15 U.S.C. 644(k)). The 
Director of Small Business Programs is the head of such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties 
regarding small business programs of the Department of the Navy, 
and shall exercise such powers regarding those programs, as the 
Secretary of the Navy may prescribe. 
‘‘(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies 
to the Director of Small Business Programs.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by adding at the end 
the following new item:
‘‘5028. Director of Small Business Programs.’’.
(e) DEPARTMENT OF THE AIR FORCE.—
(1) POSITION AND OFFICE.—Chapter 803 of title 10, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 8024. Director of Small Business Programs 
‘‘(a) DIRECTOR.—There is a Director of Small Business Programs 
in the Department of the Air Force. The Director is appointed 
by the Secretary of the Air Force. 
‘‘(b) OFFICE
OF SMALL BUSINESS PROGRAMS.—The Office of 
Small Business Programs of the Department of the Air Force is 
the office that is established within the Department of the Air 
Force under section 15(k) of the Small Business Act (15 U.S.C. 
644(k)). The Director of Small Business Programs is the head of 
such office. 
‘‘(c) DUTIES AND POWERS.—(1) The Director of Small Business 
Programs shall, subject to paragraph (2), perform such duties 
regarding small business programs of the Department of the Air 
Force, and shall exercise such powers regarding those programs, 
as the Secretary of the Air Force may prescribe.
H. R. 1815—267
‘‘(2) Section 15(k) of the Small Business Act (15 U.S.C. 644(k)), 
except for the designations of the Director and the Office, applies 
to the Director of Small Business Programs.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by adding at the end 
the following new item:
‘‘8024. Director of Small Business Programs.’’.
SEC. 905. PLAN TO DEFEND THE HOMELAND AGAINST CRUISE MIS-
SILES AND OTHER LOW-ALTITUDE AIRCRAFT. 
(a) PLAN REQUIRED.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a plan for the defense 
of the United States homeland against cruise missiles, unmanned 
aerial vehicles, and other low-altitude aircraft that may be launched 
in an attack against the United States homeland. 
(b) FOCUS OF PLAN.—In developing the plan, the Secretary 
shall focus on the role of Department of Defense components in 
the defense of the homeland against an attack described in sub-
section (a), but shall also address the role, if any, of other depart-
ments and agencies of the United States Government in that 
defense. 
(c) ELEMENTS OF PLAN.—The plan shall include the following: 
(1) The identification of an official or office within the 
Department of Defense to be responsible for coordinating the 
implementation of the plan described in subsection (a) from 
both an operational and acquisition perspective. 
(2) Identification of (A) the capabilities required by the 
Department of Defense in order to fulfill the mission of the 
Department to defend the homeland against attack by cruise 
missiles, unmanned aerial vehicles, and other low-altitude air-
craft, and (B) any current shortfall in those capabilities. 
(3) Identification of each element of the Department of 
Defense that will be responsible under the plan for acquisition 
in order to achieve one or more of the capabilities identified 
pursuant to paragraph (2). 
(4) A schedule for implementing the plan. 
(5) A statement of the funding required to implement the 
Department of Defense portion of the plan. 
(6) An identification of the roles and missions, if any, 
of other departments and agencies of the United States Govern-
ment in contributing to the defense of the homeland against 
attack described in paragraph (2). 
(d) SCOPE OF PLAN.—The plan shall be coordinated with plans 
of the Department of Defense for defending the United States 
homeland against attack by short-range to medium-range ballistic 
missiles. 
SEC. 906. PROVISION OF AUDIOVISUAL SUPPORT SERVICES BY WHITE 
HOUSE COMMUNICATIONS AGENCY ON NONREIMBURS-
ABLE BASIS. 
(a) PROVISION ON NONREIMBURSABLE BASIS.—Section 912 of 
the National Defense Authorization Act for Fiscal Year 1997 (10 
U.S.C. 111 note) is amended—
(1) in subsection (a)—
H. R. 1815—268
(A) in the subsection heading, by inserting ‘‘AND AUDIO-
VISUAL SUPPORT SERVICES’’ after ‘‘TELECOMMUNICATIONS 
SUPPORT’’; and 
(B) by inserting ‘‘and audiovisual support services’’ 
after ‘‘provision of telecommunications support’’; and 
(2) in subsection (b), by inserting ‘‘and audiovisual’’ after 
‘‘other than telecommunications’’. 
(b) REPEAL OF OBSOLETE PROVISIONS.—Such section is further 
amended by striking subsections (d), (e), and (f). 
SEC. 907. REPORT ON ESTABLISHMENT OF A DEPUTY SECRETARY OF 
DEFENSE FOR MANAGEMENT. 
(a) STUDY REQUIRED.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall, as 
determined by the Secretary, select one or two Federally Funded 
Research and Development Centers to conduct a study of the feasi-
bility and advisability of establishing a Deputy Secretary of Defense 
for Management. The Secretary shall provide for each Center con-
ducting a study under this section to submit a report on such 
study to the Secretary and to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House 
of Representatives not later than December 1, 2006. 
(b) CONTENT OF STUDY.—Each study under this section shall 
address—
(1) the extent to which the establishment of a Deputy 
Secretary of Defense for Management would—
(A) improve the management of the Department of 
Defense; 
(B) expedite the process of management reform in the 
Department; and 
(C) enhance the implementation of business systems 
modernization in the Department; 
(2) the appropriate relationship of the Deputy Secretary 
of Defense for Management to other Department of Defense 
officials; 
(3) the appropriate term of service for a Deputy Secretary 
of Defense for Management; and 
(4) the experience of any other Federal agencies that have 
instituted similar management positions. 
(c) 
DEPUTY
SECRETARY
FOR
MANAGEMENT
POSITION 
DESCRIBED.—For the purposes of this section, a Deputy Secretary 
of Defense for Management is an official who—
(1) serves as the Chief Management Officer of the Depart-
ment of Defense; 
(2) is the principal advisor to the Secretary of Defense 
on matters relating to the management of the Department 
of Defense, including defense business activities, to ensure 
Department-wide capability to carry out the strategic plan of 
the Department of Defense in support of national security objec-
tives; and 
(3) takes precedence in the Department of Defense imme-
diately after the Deputy Secretary of Defense. 
SEC. 908. RESPONSIBILITY OF THE JOINT CHIEFS OF STAFF AS MILI-
TARY ADVISERS TO THE HOMELAND SECURITY COUNCIL. 
(a) RESPONSIBILITY AS MILITARY ADVISERS.—
(1) IN GENERAL.—Subsection (b) of section 151 of title 10, 
United States Code, is amended—
H. R. 1815—269
(A) in paragraph (1), by inserting ‘‘the Homeland Secu-
rity Council,’’ after ‘‘the National Security Council,’’; and 
(B) in paragraph (2), by inserting ‘‘the Homeland Secu-
rity Council,’’ after ‘‘the National Security Council,’’. 
(2) CONSULTATION BY CHAIRMAN.—Subsection (c)(2) of such 
section is amended by inserting ‘‘the Homeland Security 
Council,’’ after ‘‘the National Security Council,’’ both places 
it appears. 
(3) ADVICE AND OPINIONS OF MEMBERS OTHER THAN CHAIR-
MAN.—Subsection (d) of such section is amended—
(A) in paragraph (1), by inserting ‘‘the Homeland Secu-
rity Council,’’ after ‘‘the National Security Council,’’ both 
places it appears; and 
(B) in paragraph (2), by inserting ‘‘the Homeland Secu-
rity Council,’’ after ‘‘the National Security Council,’’. 
(4) ADVICE ON REQUEST.—Subsection (e) of such section 
is amended by inserting ‘‘the Homeland Security Council,’’ after 
‘‘the National Security Council,’’ both places it appears. 
(b) ATTENDANCE
AT
MEETING
OF
HOMELAND
SECURITY 
COUNCIL.—Section 903 of the Homeland Security Act of 2002 (6 
U.S.C. 493) is amended—
(1) by inserting ‘‘(a) MEMBERS—’’ before ‘‘The members’’; 
and 
(2) by adding at the end the following new subsection: 
‘‘(b) ATTENDANCE OF CHAIRMAN OF JOINT CHIEFS OF STAFF 
AT MEETINGS.—The Chairman of the Joint Chiefs of Staff (or, 
in the absence of the Chairman, the Vice Chairman of the Joint 
Chiefs of Staff) may, in the role of the Chairman of the Joint 
Chiefs of Staff as principal military adviser to the Council and 
subject to the direction of the President, attend and participate 
in meetings of the Council.’’. 
SEC. 909. IMPROVEMENT IN HEALTH CARE SERVICES FOR RESIDENTS 
OF ARMED FORCES RETIREMENT HOME. 
(a) AVAILABILITY OF PHYSICIANS AND DENTISTS; MEDICAL CARE 
TRANSPORTATION.—Section 1513 of the Armed Forces Retirement 
Home Act of 1991 (24 U.S.C. 413) is amended—
(1) in subsection (a), by striking ‘‘subsection (b)’’ and 
inserting ‘‘subsections (b), (c), and (d)’’; 
(2) in the third sentence of subsection (b), by striking 
‘‘The’’ and inserting ‘‘Except as provided in subsection (d), the’’; 
and 
(3) by adding at the end the following new subsections: 
‘‘(c) AVAILABILITY OF PHYSICIANS AND DENTISTS.—(1) In pro-
viding for the health care needs of residents at a facility of the 
Retirement Home under subsection (b), the Retirement Home shall 
have a physician and a dentist—
‘‘(A) available at the facility during the daily business 
hours of the facility; and 
‘‘(B) available on an on-call basis at other times. 
‘‘(2) The physicians and dentists required by this subsection 
shall have the skills and experience suited to residents of the 
facility served by the physicians and dentists. 
‘‘(3) To ensure the availability of health care services for resi-
dents of a facility of the Retirement Home, the Chief Operating 
Officer, in consultation with the Medical Director, shall establish
H. R. 1815—270
uniform standards, appropriate to the medical needs of the resi-
dents, for access to health care services during and after the daily 
business hours of the facility. 
‘‘(d) TRANSPORTATION TO MEDICAL CARE OUTSIDE RETIREMENT 
HOME FACILITIES.—(1) With respect to each facility of the Retire-
ment Home, the Retirement Home shall provide daily scheduled 
transportation to nearby medical facilities used by residents of 
the facility. The Retirement Home may provide, based on a deter-
mination of medical need, unscheduled transportation for a resident 
of the facility to any medical facility located not more than 30 
miles from the facility for the provision of necessary and urgent 
medical care for the resident. 
‘‘(2) The Retirement Home may not collect a fee from a resident 
for transportation provided under this subsection.’’. 
(b) COMPTROLLER GENERAL ASSESSMENT.—Not later than 180 
days after the date of the enactment of this Act, the Comptroller 
General shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report containing—
(1) an assessment of the regulatory oversight and moni-
toring of health care and nursing home care services provided 
by the Armed Forces Retirement Home; and 
(2) such recommendations as the Comptroller General con-
siders appropriate in light of the results of the assessment. 
Subtitle B—Space Activities 
SEC. 911. SPACE SITUATIONAL AWARENESS STRATEGY AND SPACE 
CONTROL MISSION REVIEW. 
(a) FINDINGS.—The Congress finds that—
(1) the Department of Defense has the responsibility, within 
the executive branch, for developing the strategy and the sys-
tems of the United States for ensuring freedom to operate 
United States space assets affecting national security; and 
(2) the foundation of any credible strategy for ensuring 
freedom to operate United States space assets is a comprehen-
sive system for space situational awareness. 
(b) SPACE SITUATIONAL AWARENESS STRATEGY.—
(1) REQUIREMENT.—The Secretary of Defense shall develop 
a strategy, to be known as the ‘‘Space Situational Awareness 
Strategy’’, for ensuring freedom to operate United States space 
assets affecting national security. The Secretary shall submit 
the Space Situational Awareness Strategy to Congress not later 
than April 15, 2006. The Secretary shall submit to Congress 
an updated, current version of the strategy not later than 
April 15 of every odd-numbered year thereafter. 
(2) TIME
PERIODS.—The Space Situational Awareness 
Strategy shall cover—
(A) the 20-year period from 2006 through 2025; and 
(B) three separate successive periods, the first begin-
ning with 2006, designed to align with the next three 
periods for the Future-Years Defense Plan. 
(3) MATTERS
TO
BE
INCLUDED.—The Space Situational 
Awareness Strategy shall include the following for each period 
specified in paragraph (2):
H. R. 1815—271
(A) A threat assessment describing the perceived 
threats to United States space assets affecting national 
security. 
(B) A list of the desired effects and required space 
situational awareness capabilities required for national 
security. 
(C) Details for a coherent and comprehensive strategy 
for the United States for space situational awareness, 
together with a description of the systems architecture 
to implement that strategy in light of the threat assessment 
and the desired effects and required capabilities identified 
under subparagraphs (A) and (B). 
(D) The space situational awareness capabilities 
roadmap required by subsection (c). 
(c) SPACE SITUATIONAL AWARENESS CAPABILITIES ROADMAP.—
The Space Situational Awareness Strategy shall include a roadmap, 
to be known as the ‘‘space situational awareness capabilities 
roadmap’’, which shall include the following: 
(1) A description of each of the individual program concepts 
that will make up the systems architecture described pursuant 
to subsection (b)(3)(C). 
(2) For each such program concept, a description of the 
specific capabilities to be achieved and the threats to be abated. 
(d) SPACE SITUATIONAL AWARENESS IMPLEMENTATION PLAN.—
(1) REQUIREMENT.—The Secretary of the Air Force shall 
develop a plan, to be known as the ‘‘space situational awareness 
implementation plan’’, for the development of the systems 
architecture described pursuant to subsection (b)(3)(C). 
(2) MATTERS
TO
BE
INCLUDED.—The space situational 
awareness implementation plan shall include a description of 
the following: 
(A) The capabilities of all systems deployed as of mid-
2005 or planned for modernization or acquisition from 2006 
to 2015. 
(B) Recommended solutions for inadequacies in the 
architecture to address threats and the desired effects and 
required capabilities identified under subparagraphs (A) 
and (B) of subsection (b)(3). 
(e) SPACE CONTROL MISSION REVIEW AND ASSESSMENT.—
(1) REQUIREMENT.—The Secretary of Defense shall provide 
for a review and assessment of the requirements of the Depart-
ment of Defense for the space control mission. The review 
and assessment shall be conducted by an entity of the Depart-
ment of Defense outside of the Department of the Air Force. 
(2) MATTERS TO BE INCLUDED.—The review and assessment 
under paragraph (1) shall consider the following: 
(A) Whether current activities of the Department of 
Defense match current requirements of the Department 
for the current space control mission. 
(B) Whether there exists proper allocation of appro-
priate resources to fulfill the current space control mission. 
(C) The plans of the Department of Defense for the 
future space control mission. 
(3) REPORT.—Not later than 180 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit 
to the congressional defense committees a report on the results
H. R. 1815—272
of the review and assessment under paragraph (1). The report 
shall include the following: 
(A) The findings and conclusions of the entity con-
ducting the review and assessment on (A) requirements 
of the Department of Defense for the space control mission, 
and (B) the efforts of the Department to meet those require-
ments. 
(B) Recommendations regarding the best means by 
which the Department may meet those requirements. 
(4) SPACE CONTROL MISSION DEFINED.—In this subsection, 
the term ‘‘space control mission’’ means the mission of the 
Department of Defense involving the following: 
(A) Space situational awareness. 
(B) Defensive counterspace operations. 
(C) Offensive counterspace operations. 
SEC. 912. MILITARY SATELLITE COMMUNICATIONS. 
(a) FINDINGS.—Congress finds the following: 
(1) Military requirements for satellite communications 
exceed the capability of on-orbit assets as of mid-2005. 
(2) To meet future military requirements for satellite 
communications, the Secretary of the Air Force has initiated 
a highly complex and revolutionary program called the Trans-
formational Satellite Communications System (TSAT). 
(3) If the program referred to in paragraph (2) experiences 
setbacks that prolong the development and deployment of the 
capability to be provided by that program, the Secretary of 
the Air Force must be prepared to implement contingency pro-
grams to achieve interim improvements in the capabilities of 
satellite communications to meet military requirements through 
upgrades to current systems. 
(b) DEVELOPMENT OF OPTIONS.—In order to prepare for the 
contingency referred to in subsection (a)(3), the Director of the 
National Security Space Office of the Department of Defense shall 
provide for an assessment, to be conducted by an entity outside 
the Department of Defense, to develop and compare options for 
the individual acquisition of additional Advanced Extremely High 
Frequency space vehicles, in conjunction with modifications to 
future acquisitions under the Wideband Gapfiller System program, 
that will accomplish the following: 
(1) Minimize nonrecurring costs. 
(2) Improve communications-on-the-move capabilities. 
(3) Increase net centricity for communications. 
(4) Increase satellite throughput. 
(5) Increase user connectivity. 
(6) Improve airborne communications support. 
(7) Minimize effects of a break in production. 
(8) Minimize risk associated with gaps in functional avail-
ability of on-orbit assets. 
(c) ANALYSIS OF ALTERNATIVES REPORT.—Not later than April 
15, 2006, the Director of the National Security Space Office shall 
submit to Congress a report providing an analysis of alternatives 
with respect to the options developed pursuant to subsection (b). 
The analysis of alternatives shall be prepared taking into consider-
ation the findings and recommendations of the independent assess-
ment conducted under subsection (b).
H. R. 1815—273
SEC. 913. OPERATIONALLY RESPONSIVE SPACE. 
(a) JOINT OPERATIONALLY RESPONSIVE SPACE PAYLOAD TECH-
NOLOGY ORGANIZATION.—
(1) IN GENERAL.—The Secretary of Defense shall establish 
or designate an organization in the Department of Defense 
to coordinate joint operationally responsive space payload tech-
nology. 
(2) MASTER PLAN.—The organization established or des-
ignated under paragraph (1) shall produce an annual master 
plan for coordination of operationally responsive space payload 
technology and shall coordinate resources provided to stimulate 
technical development of small satellite payloads. The annual 
master plan shall describe focus areas for development of oper-
ationally responsive space payload technology, including—
(A) miniaturization technology for satellite payloads; 
(B) increased sensor acuity; 
(C) concept of operations exploration; 
(D) increased processor capability; and 
(E) such additional matters as the head of that 
organization determines appropriate. 
(3) REQUESTS FOR PROPOSALS.—The Secretary of Defense, 
acting through the Director of the Office of Force Trans-
formation, shall award contracts, from amounts available for 
that purpose for any fiscal year, for technology projects that 
support the focus areas set out in the master plan for develop-
ment of operationally responsive space payload technology. 
(4) ASSESSMENT FACTORS.—In assessing any proposal sub-
mitted for a contract under paragraph (3), the Secretary shall 
consider—
(A) how the proposal correlates to the goals articulated 
in the master plan under paragraph (2) and to the National 
Security Space Architecture; and 
(B) the probability, for the project for which the pro-
posal is submitted, of eventual transition either to a labora-
tory of one of the military departments for continued 
development or to a joint program office for operational 
deployment. 
(b) REPORT
ON JOINT PROGRAM OFFICE
FOR TACSAT.—Not 
later than February 28, 2006, the Secretary of Defense shall submit 
to the congressional defense committees a report providing a plan 
for the creation of a joint program office for the Tactical Satellite 
program and for transition of that program out of the Office of 
Force Transformation and to the administration of the joint program 
office. The report shall be prepared in conjunction with the Depart-
ment of Defense executive agent for space. 
(c) JOINT REPORT ON CERTAIN SPACE AND MISSILE DEFENSE 
ACTIVITIES.—Not later than February 28, 2006, the Department 
of Defense executive agent for space and the Director of the Missile 
Defense Agency shall submit to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House 
of Representatives a joint report on the value of each of the fol-
lowing: 
(1) Increased use of the Rocket Systems Launch Program 
for the respective missions of the Department of the Air Force 
and the Missile Defense Agency. 
(2) An agreement between the Director of the Missile 
Defense Agency and the Secretary of the Air Force for eventual
H. R. 1815—274
transition of operational control of small satellite demonstra-
tions from the Missile Defense Agency to the Department of 
the Air Force. 
(3) A partnership between the Missile Defense Agency and 
the Department of the Air Force in the development of common 
high-altitude and near-space assets for the respective missions 
of the Missile Defense Agency and the Department of the 
Air Force. 
SEC. 914. REPORT ON USE OF SPACE RADAR FOR TOPOGRAPHICAL 
MAPPING FOR SCIENTIFIC AND CIVIL PURPOSES. 
(a) REPORT REQUIRED.—Not later than October 1, 2006, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the feasibility and advisability of using 
systems developed within the Space Radar program of the Depart-
ment of Defense for purposes of providing coastal zone and other 
topographical mapping information, and related information, to the 
scientific community and other elements of the private sector for 
scientific and civil purposes. 
(b) REPORT ELEMENTS.—The report required by subsection (a) 
shall include the following: 
(1) A description and evaluation of any use of Space Radar 
systems for scientific or civil purposes that is identified by 
the Secretary for purposes of the report. 
(2) A description and evaluation of any addition or modifica-
tion to Space Radar systems that is identified by the Secretary 
for purposes of the report that would increase the utility of 
those systems to the scientific community or other elements 
of the private sector for scientific or civil purposes, including 
the use of additional frequencies, the development or enhance-
ment of ground systems, and the enhancement of operations. 
(3) A description and evaluation of the effects, if any, 
on the primary missions of the Space Radar, and on the develop-
ment of the Space Radar, of the use of systems developed 
within the Space Radar program for scientific or civil purposes. 
(4) A description of the costs of any addition or modification 
identified pursuant to paragraph (2). 
(5) A description of the process for developing and vali-
dating requirements for the Space Radar, including the involve-
ment of the Civil Applications Committee or other organizations 
outside the Department of Defense. 
(6) A description and evaluation of the processes that would 
be used to modify Space Radar systems in order to meet the 
needs of the scientific community, or other elements of the 
private sector with respect to the use of those systems for 
scientific or civil purposes, and for meeting the costs of such 
modifications. 
SEC. 915. SENSE OF CONGRESS REGARDING NATIONAL SECURITY 
ASPECT OF UNITED STATES PREEMINENCE IN HUMAN 
SPACEFLIGHT. 
(a) FINDINGS.—The Congress finds that the following: 
(1) Preeminence by the United States in human spaceflight 
allows the United States to project leadership around the world 
and forms an important component of United States national 
security.
H. R. 1815—275
(2) Continued development of human spaceflight in low-
Earth orbit, on the Moon, and beyond adds to the overall 
national strategic posture. 
(3) Human spaceflight enables continued stewardship of 
the region between the Earth and the Moon—an area that 
is critical and of growing national and international security 
relevance. 
(4) Human spaceflight provides unprecedented opportuni-
ties for the United States to lead peaceful and productive 
international relationships with the world community in sup-
port of United States security and geo-political objectives. 
(5) An increasing number of nations are pursuing human 
spaceflight and space-related capabilities, including China and 
India. 
(6) Past investments in human spaceflight capabilities rep-
resent a national resource that can be built upon and leveraged 
for a broad range of purposes, including national and economic 
security. 
(7) The industrial base and capabilities represented by 
the Space Transportation System (popularly referred to as the 
‘‘space shuttle’’) provide a critical launch capability for the 
Nation. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
it is in the national security interest of the United States to main-
tain preeminence in human spaceflight. 
Subtitle C—Chemical Demilitarization 
Program 
SEC. 921. CLARIFICATION OF COOPERATIVE AGREEMENT AUTHORITY 
UNDER CHEMICAL DEMILITARIZATION PROGRAM. 
(a) AGREEMENTS WITH FEDERALLY RECOGNIZED INDIAN TRIBAL 
ORGANIZATIONS.—Section 1412(c)(4) of the Department of Defense 
Authorization Act, 1986 (50 U.S.C. 1521(c)(4)), is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(4)’’; 
(2) in the first sentence—
(A) by inserting ‘‘and to tribal organizations’’ after 
‘‘to State and local governments’’; and 
(B) by inserting ‘‘and tribal organizations’’ after ‘‘assist 
those governments’’; 
(3) by designating the text beginning ‘‘Additionally, the 
Secretary ’’ as subparagraph (B); 
(4) in the first sentence of subparagraph (B), as designated 
by paragraph (3), by inserting ‘‘, and with tribal organizations,’’ 
after ‘‘with State and local governments’’; and 
(5) by adding at the end the following: 
‘‘(C) In this paragraph, the term ‘tribal organization’ has the 
meaning given that term in section 4(l) of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 450b(l)).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a)—
(1) take effect as of December 5, 1991; and 
(2) apply with respect to any cooperative agreement entered 
into on or after that date.
H. R. 1815—276
SEC. 922. CHEMICAL DEMILITARIZATION FACILITIES. 
(a) AUTHORITY TO USE RESEARCH, DEVELOPMENT, TEST, AND 
EVALUATION FUNDS TO CONSTRUCT FACILITIES.—The Secretary of 
Defense may, using amounts authorized to be appropriated by sec-
tion 201(4) for research, development, test, and evaluation, Defense-
wide and available for chemical weapons demilitarization activities 
under the Assembled Chemical Weapons Alternatives program, 
carry out construction projects, or portions of construction projects, 
for facilities necessary to support chemical demilitarization oper-
ations at each of the following: 
(1) Pueblo Army Depot, Colorado. 
(2) Blue Grass Army Depot, Kentucky. 
(b) SCOPE OF AUTHORITY.—The authority in subsection (a) to 
carry out a construction project for facilities includes authority 
to carry out planning and design and the acquisition of land for 
the construction or improvement of such facilities. 
(c) LIMITATION ON AMOUNT OF FUNDS.—The amount of funds 
that may be utilized under the authority in subsection (a) may 
not exceed $51,000,000. 
(d) DURATION OF AUTHORITY.—A construction project, or portion 
of a construction project, may not be commenced under the authority 
in subsection (a) after September 30, 2006. 
(e) NOTICE AND WAIT.—The Secretary may not carry out a 
construction project, or portion of a construction project, under 
the authority in subsection (a) until the end of the 21-day period 
beginning on the date on which the Secretary submits to the 
congressional defense committees notice of the Secretary’s intent 
to carry out such project and confirms his intent to seek funding 
for these projects beginning in fiscal year 2007 through the military 
construction appropriations accounts. 
Subtitle D—Intelligence-Related Matters 
SEC. 931. DEPARTMENT OF DEFENSE STRATEGY FOR OPEN-SOURCE 
INTELLIGENCE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Open-source intelligence (OSINT) is intelligence that 
is produced from publicly available information and is collected, 
exploited, and disseminated in a timely manner to an appro-
priate audience for the purpose of addressing a specific intel-
ligence requirement. 
(2) With the Information Revolution, the amount, signifi-
cance, and accessibility of open-source information has 
expanded significantly, but the intelligence community has not 
expanded its exploitation efforts and systems to produce open-
source intelligence. 
(3) The production of open-source intelligence is a valuable 
intelligence discipline that must be integrated into intelligence 
tasking, collection, processing, exploitation, and dissemination 
to ensure that United States policymakers are fully and com-
pletely informed. 
(4) The dissemination and use of validated open-source 
intelligence inherently enables information sharing since open-
source intelligence is produced without the use of sensitive 
sources and methods. Open-source intelligence products can
H. R. 1815—277
be shared with the American public and foreign allies because 
of the unclassified nature of open-source intelligence. 
(5) The National Commission on Terrorist Attacks Upon 
the United States (popularly referred to as the ‘‘9/11 Commis-
sion’’), in its final report released on July 22, 2004, identified 
shortfalls in the ability of the United States to use all-source 
intelligence, a large component of which is open-source intel-
ligence. 
(6) In the Intelligence Reform and Terrorism Prevention 
Act of 2004 (Public Law 108–458), Congress calls for coordina-
tion of the collection, analysis, production, and dissemination 
of open-source intelligence. 
(7) The Commission on the Intelligence Capabilities of the 
United States Regarding Weapons of Mass Destruction, in its 
report to the President released on March 31, 2005, found 
that ‘‘the need for exploiting open-source material is greater 
now than ever before,’’ but that ‘‘the Intelligence Community’s 
open source programs have not expanded commensurate with 
either the increase in available information or with the growing 
importance of open source data to today’s problems’’. 
(b) DEPARTMENT
OF DEFENSE STRATEGY
FOR OPEN-SOURCE 
INTELLIGENCE.—
(1) DEVELOPMENT OF STRATEGY.—The Secretary of Defense 
shall develop a strategy for the purpose of integrating open-
source intelligence into the Defense intelligence process. The 
strategy shall be known as the ‘‘Defense Strategy for Open-
Source Intelligence’’. The strategy shall be incorporated within 
the larger Defense intelligence strategy. 
(2) SUBMISSION.—The Secretary shall submit to Congress 
a report setting forth the strategy developed under paragraph 
(1). The report shall be submitted not later than 180 days 
after the date of the enactment of this Act. 
(c) MATTERS TO BE INCLUDED.—The strategy under subsection 
(b) shall include the following: 
(1) A plan for providing funds over the period of the future-
years defense program for the development of a robust open-
source intelligence capability for the Department of Defense, 
with particular emphasis on exploitation and dissemination. 
(2) A description of how management of the collection of 
open-source intelligence is currently conducted within the 
Department of Defense and how that management can be 
improved. 
(3) A description of the tools, systems, centers, organiza-
tional entities, and procedures to be used within the Depart-
ment of Defense to perform open-source intelligence tasking, 
collection, processing, exploitation, and dissemination. 
(4) A description of proven tradecraft for effective exploi-
tation of open-source intelligence, to include consideration of 
operational security. 
(5) A detailed description on how open-source intelligence 
will be fused with all other intelligence sources across the 
Department of Defense. 
(6) A description of—
(A) a training plan for Department of Defense intel-
ligence personnel with respect to open-source intelligence; 
and
H. R. 1815—278
(B) open-source intelligence guidance for Department 
of Defense intelligence personnel. 
(7) A plan to incorporate the function of oversight of open-
source intelligence—
(A) into the Office of the Undersecretary of Defense 
for Intelligence; and 
(B) into service intelligence organizations. 
(8) A plan to incorporate and identify an open-source intel-
ligence specialty into personnel systems of the Department 
of Defense, including military personnel systems. 
(9) A plan for the use of intelligence personnel of the 
reserve components to augment and support the open-source 
intelligence mission. 
(10) A plan for the use of the Open-Source Information 
System for the purpose of exploitation and dissemination of 
open-source intelligence. 
SEC. 932. COMPREHENSIVE INVENTORY OF DEPARTMENT OF DEFENSE 
INTELLIGENCE 
AND 
INTELLIGENCE-RELATED 
PRO-
GRAMS AND PROJECTS. 
(a) REPORT.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional committees specified in subsection (b) a report 
providing a comprehensive inventory of Department of Defense 
intelligence and intelligence-related programs and projects. The 
Secretary shall prepare the inventory in consultation with the 
Director of National Intelligence, as appropriate. 
(b) COMMITTEES.—The congressional committees referred to in 
subsection (a) are the following: 
(1) The Committee on Armed Services and the Select Com-
mittee on Intelligence of the Senate. 
(2) The Committee on Armed Services and the Permanent 
Select Committee on Intelligence of the House of Representa-
tives. 
SEC. 933. OPERATIONAL FILES OF THE DEFENSE INTELLIGENCE 
AGENCY. 
(a) PROTECTION
OF OPERATIONAL FILES
OF DEFENSE INTEL-
LIGENCE AGENCY.—
(1) PROTECTION OF FILES.—Title VII of the National Secu-
rity Act of 1947 (50 U.S.C. 431 et seq.) is amended by adding 
at the end the following new section: 
‘‘OPERATIONAL FILES OF THE DEFENSE INTELLIGENCE AGENCY 
‘‘SEC. 705. (a) EXEMPTION OF OPERATIONAL FILES.—The Director 
of the Defense Intelligence Agency, in coordination with the Director 
of National Intelligence, may exempt operational files of the Defense 
Intelligence Agency from the provisions of section 552 of title 5, 
United States Code, which require publication, disclosure, search, 
or review in connection therewith. 
‘‘(b) OPERATIONAL FILES DEFINED.—(1) In this section, the term 
‘operational files’ means—
‘‘(A) files of the Directorate of Human Intelligence of the 
Defense Intelligence Agency (and any successor organization
H. R. 1815—279
of that directorate) that document the conduct of foreign intel-
ligence or counterintelligence operations or intelligence or secu-
rity liaison arrangements or information exchanges with foreign 
governments or their intelligence or security services; and 
‘‘(B) files of the Directorate of Technology of the Defense 
Intelligence Agency (and any successor organization of that 
directorate) that document the means by which foreign intel-
ligence or counterintelligence is collected through technical sys-
tems. 
‘‘(2) Files that are the sole repository of disseminated intel-
ligence are not operational files. 
‘‘(c) SEARCH AND REVIEW FOR INFORMATION.—Notwithstanding 
subsection (a), exempted operational files shall continue to be sub-
ject to search and review for information concerning: 
‘‘(1) United States citizens or aliens lawfully admitted for 
permanent residence who have requested information on them-
selves pursuant to the provisions of section 552 or 552a of 
title 5, United States Code. 
‘‘(2) Any special activity the existence of which is not 
exempt from disclosure under the provisions of section 552 
of title 5, United States Code. 
‘‘(3) The specific subject matter of an investigation by any 
of the following for any impropriety, or violation of law, Execu-
tive order, or Presidential directive, in the conduct of an intel-
ligence activity: 
‘‘(A) The Committee on Armed Services and the Perma-
nent Select Committee on Intelligence of the House of 
Representatives. 
‘‘(B) The Committee on Armed Services and the Select 
Committee on Intelligence of the Senate. 
‘‘(C) The Intelligence Oversight Board. 
‘‘(D) The Department of Justice. 
‘‘(E) The Office of General Counsel of the Department 
of Defense or of the Defense Intelligence Agency. 
‘‘(F) The Office of Inspector General of the Department 
of Defense or of the Defense Intelligence Agency. 
‘‘(G) The Office of the Director of the Defense Intel-
ligence Agency. 
‘‘(d) INFORMATION DERIVED OR DISSEMINATED FROM EXEMPTED 
OPERATIONAL FILES.—(1) Files that are not exempted under sub-
section (a) that contain information derived or disseminated from 
exempted operational files shall be subject to search and review. 
‘‘(2) The inclusion of information from exempted operational 
files in files that are not exempted under subsection (a) shall 
not affect the exemption under subsection (a) of the originating 
operational files from search, review, publication, or disclosure. 
‘‘(3) The declassification of some of the information contained 
in an exempted operational file shall not affect the status of the 
operational file as being exempt from search, review, publication, 
or disclosure. 
‘‘(4) Records from exempted operational files that have been 
disseminated to and referenced in files that are not exempted 
under subsection (a) and that have been returned to exempted 
operational files for sole retention shall be subject to search and 
review.
H. R. 1815—280
‘‘(e) 
ALLEGATION; 
IMPROPER
WITHHOLDING
OF
RECORDS; 
JUDICIAL REVIEW.—(1) Except as provided in paragraph (2), when-
ever any person who has requested agency records under section 
552 of title 5, United States Code, alleges that the Defense Intel-
ligence Agency has withheld records improperly because of failure 
to comply with any provision of this section, judicial review shall 
be available under the terms set forth in section 552(a)(4)(B) of 
title 5, United States Code. 
‘‘(2) Judicial review shall not be available in the manner pro-
vided under paragraph (1) as follows: 
‘‘(A) In any case in which information specifically author-
ized under criteria established by an Executive order to be 
kept secret in the interest of national defense or foreign rela-
tions which is filed with, or produced for, the court by the 
Defense Intelligence Agency, such information shall be exam-
ined ex parte, in camera by the court. 
‘‘(B) The court shall determine, to the fullest extent prac-
ticable, issues of fact based on sworn written submissions of 
the parties. 
‘‘(C) When a complainant alleges that requested records 
were improperly withheld because of improper placement solely 
in exempted operational files, the complainant shall support 
such allegation with a sworn written submission based upon 
personal knowledge or otherwise admissible evidence. 
‘‘(D)(i) When a complainant alleges that requested records 
were improperly withheld because of improper exemption of 
operational files, the Defense Intelligence Agency shall meet 
its burden under section 552(a)(4)(B) of title 5, United States 
Code, by demonstrating to the court by sworn written submis-
sion that exempted operational files likely to contain responsible 
records currently perform the functions set forth in subsection 
(b). 
‘‘(ii) The court may not order the Defense Intelligence 
Agency to review the content of any exempted operational file 
or files in order to make the demonstration required under 
clause (i), unless the complainant disputes the Defense Intel-
ligence Agency’s showing with a sworn written submission 
based on personal knowledge or otherwise admissible evidence. 
‘‘(E) In proceedings under subparagraphs (C) and (D), the 
parties shall not obtain discovery pursuant to rules 26 through 
36 of the Federal Rules of Civil Procedure, except that requests 
for admission may be made pursuant to rules 26 and 36. 
‘‘(F) If the court finds under this subsection that the 
Defense Intelligence Agency has improperly withheld requested 
records because of failure to comply with any provision of 
this subsection, the court shall order the Defense Intelligence 
Agency to search and review the appropriate exempted oper-
ational file or files for the requested records and make such 
records, or portions thereof, available in accordance with the 
provisions of section 552 of title 5, United States Code, and 
such order shall be the exclusive remedy for failure to comply 
with this section (other than subsection (f)). 
‘‘(G) If at any time following the filing of a complaint 
pursuant to this paragraph the Defense Intelligence Agency 
agrees to search the appropriate exempted operational file or 
files for the requested records, the court shall dismiss the 
claim based upon such complaint.
H. R. 1815—281
‘‘(H) Any information filed with, or produced for the court 
pursuant to subparagraphs (A) and (D) shall be coordinated 
with the Director of National Intelligence before submission 
to the court. 
‘‘(f) DECENNIAL REVIEW OF EXEMPTED OPERATIONAL FILES.—
(1) Not less than once every 10 years, the Director of the Defense 
Intelligence Agency and the Director of National Intelligence shall 
review the exemptions in force under subsection (a) to determine 
whether such exemptions may be removed from a category of 
exempted files or any portion thereof. The Director of National 
Intelligence must approve any determinations to remove such 
exemptions. 
‘‘(2) The review required by paragraph (1) shall include consid-
eration of the historical value or other public interest in the subject 
matter of the particular category of files or portions thereof and 
the potential for declassifying a significant part of the information 
contained therein. 
‘‘(3) A complainant that alleges that the Defense Intelligence 
Agency has improperly withheld records because of failure to comply 
with this subsection may seek judicial review in the district court 
of the United States of the district in which any of the parties 
reside, or in the District of Columbia. In such a proceeding, the 
court’s review shall be limited to determining the following: 
‘‘(A) Whether the Defense Intelligence Agency has con-
ducted the review required by paragraph (1) before the expira-
tion of the 10-year period beginning on the date of the enact-
ment of this section or before the expiration of the 10-year 
period beginning on the date of the most recent review. 
‘‘(B) Whether the Defense Intelligence Agency, in fact, 
considered the criteria set forth in paragraph (2) in conducting 
the required review. 
‘‘(g) TERMINATION.—This section shall cease to be effective on 
December 31, 2007.’’. 
(2) CLERICAL AMENDMENT.—The table of contents in the 
first section of the National Security Act of 1947 is amended 
by inserting after the item relating to section 704 the following 
new item:
‘‘Sec. 705. Operational files of the Defense Intelligence Agency.’’.
(b) SEARCH
AND REVIEW
OF CERTAIN OTHER OPERATIONAL 
FILES.—The National Security Act of 1947 is further amended—
(1) in section 702(a)(3)(C) (50 U.S.C. 432(a)(3)(C)), by 
adding at the end the following new clause: 
‘‘(vi) The Office of the Inspector General of the National 
Geospatial-Intelligence Agency.’’; 
(2) in section 703(a)(3)(C) (50 U.S.C. 432a(a)(3)(C)), by 
adding at the end the following new clause: 
‘‘(vii) The Office of the Inspector General of the NRO.’’; 
and 
(3) in section 704(c)(3) (50 U.S.C. 432b(c)(3)), by adding 
at the end the following new subparagraph: 
‘‘(H) The Office of the Inspector General of the National 
Security Agency.’’.
H. R. 1815—282
TITLE X—GENERAL PROVISIONS
SUBTITLE A—FINANCIAL MATTERS 
Sec. 1001. Transfer authority. 
Sec. 1002. Authorization of emergency supplemental appropriations for fiscal years 
2005 and 2006. 
Sec. 1003. Increase in fiscal year 2005 general transfer authority. 
Sec. 1004. Reports on feasibility and desirability of capital budgeting for major de-
fense acquisition programs. 
Sec. 1005. United States contribution to NATO common-funded budgets in fiscal 
year 2006. 
SUBTITLE B—NAVAL VESSELS AND SHIPYARDS 
Sec. 1011. Conveyance, Navy drydock, Seattle, Washington. 
Sec. 1012. Conveyance, Navy drydock, Jacksonville, Florida. 
Sec. 1013. Conveyance, Navy drydock, Port Arthur, Texas. 
Sec. 1014. Transfer of battleships U.S.S. WISCONSIN and U.S.S. IOWA. 
Sec. 1015. Transfer of ex-U.S.S. Forrest Sherman. 
Sec. 1016. Report on leasing of vessels to meet national defense sealift require-
ments. 
Sec. 1017. Establishment of the USS Oklahoma Memorial and other memorials at 
Pearl Harbor. 
Sec. 1018. Authority to use National Defense Sealift Fund to purchase certain mar-
itime prepositioning ships currently under charter to the Navy. 
SUBTITLE C—COUNTER-DRUG ACTIVITIES 
Sec. 1021. Resumption of reporting requirement regarding Department of Defense 
expenditures to support foreign counter-drug activities. 
Sec. 1022. Clarification of authority for joint task forces to support law enforcement 
agencies conducting counter-terrorism activities. 
Sec. 1023. Sense of Congress regarding drug trafficking deterrence. 
SUBTITLE D—MATTERS RELATED TO HOMELAND SECURITY 
Sec. 1031. Responsibilities of Assistant Secretary of Defense for Homeland Defense 
relating to nuclear, chemical, and biological emergency response. 
Sec. 1032. Testing of preparedness for emergencies involving nuclear, radiological, 
chemical, biological, and high-yield explosives weapons. 
Sec. 1033. Department of Defense chemical, biological, radiological, nuclear, and 
high-yield explosives response teams. 
Sec. 1034. Repeal of Department of Defense emergency response assistance pro-
gram. 
Sec. 1035. Report on use of Department of Defense aerial reconnaissance assets to 
support Homeland Security border security missions. 
SUBTITLE E—REPORTS AND STUDIES 
Sec. 1041. Review of Defense Base Act insurance. 
Sec. 1042. Report on Department of Defense response to findings and recommenda-
tions of Defense Science Board Task Force on High Performance 
Microchip Supply. 
SUBTITLE F—OTHER MATTERS 
Sec. 1051. Commission on the Implementation of the New Strategic Posture of the 
United States. 
Sec. 1052. Reestablishment of EMP Commission. 
Sec. 1053. Modernization of authority relating to security of defense property and 
facilities. 
Sec. 1054. Revision of Department of Defense counterintelligence polygraph pro-
gram. 
Sec. 1055. Preservation of records pertaining to radioactive fallout from nuclear 
weapons testing. 
Sec. 1056. Technical and clerical amendments. 
Sec. 1057. Deletion of obsolete definitions in titles 10 and 32, United States Code. 
Sec. 1058. Support for youth organizations. 
Sec. 1059. Special immigrant status for persons serving as translators with United 
States Armed Forces. 
Sec. 1060. Expansion of emergency services under reciprocal agreements. 
Sec. 1061. Renewal of moratorium on return of veterans memorial objects to foreign 
nations without specific authorization in law.
H. R. 1815—283
Sec. 1062. Sense of Congress on national security interest of maintaining aero-
nautics research and development. 
Sec. 1063. Airport certification. 
SUBTITLE G—MILITARY MAIL MATTERS 
Sec. 1071. Safe delivery of mail in military mail system.
Subtitle A—Financial Matters 
SEC. 1001. 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 Department of Defense in this division for 
fiscal year 2006 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of authorizations 
so transferred shall be merged with and be available for the 
same purposes as the authorization to which transferred. 
(2) LIMITATION.—The total amount of authorizations that 
the Secretary may transfer under the authority of this section 
may not exceed $3,500,000,000. 
(b) LIMITATIONS.—The authority provided by this section to 
transfer authorizations—
(1) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(2) may not be used to provide authority for an item that 
has been denied authorization by Congress. 
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify 
Congress of each transfer made under subsection (a). 
SEC. 1002. AUTHORIZATION OF EMERGENCY SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEARS 2005 AND 2006. 
(a) EMERGENCY
SUPPLEMENTAL
APPROPRIATIONS
ACT
FOR 
DEFENSE, THE GLOBAL WAR
ON TERROR, AND TSUNAMI RELIEF, 
2005.—Amounts authorized to be appropriated to the Department 
of Defense and the Department of Energy for fiscal year 2005 
in the Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 (Public Law 108–375) are hereby adjusted, with 
respect to any such authorized amount, by the amount by which 
appropriations pursuant to such authorization are increased by 
a supplemental appropriation or decreased by a rescission, or both, 
or are increased by a transfer of funds, pursuant to title I and 
chapter 2 of title IV of division A of the Emergency Supplemental 
Appropriations Act for Defense, the Global War on Terror, and 
Tsunami Relief, 2005 (Public Law 109–13). 
(b) FIRST EMERGENCY SUPPLEMENTAL TO MEET NEEDS ARISING 
FROM HURRICANE KATRINA.—Amounts authorized to be appro-
priated to the Department of Defense for fiscal year 2005 in the 
Ronald W. Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108–375) are hereby adjusted, with respect
H. R. 1815—284
to any such authorized amount, by the amount by which appropria-
tions pursuant to such authorized amount are increased by a supple-
mental appropriation, or by a transfer of funds, pursuant to the 
Emergency Supplemental Appropriations Act to Meet Immediate 
Needs Arising From the Consequences of Hurricane Katrina, 2005 
(Public Law 109–61). 
(c) SECOND
EMERGENCY
SUPPLEMENTAL
TO
MEET
NEEDS 
ARISING FROM HURRICANE KATRINA.—Amounts authorized to be 
appropriated to the Department of Defense for fiscal year 2005 
in the Ronald W. Reagan National Defense Authorization Act for 
Fiscal Year 2005 are hereby adjusted, with respect to any such 
authorized amount, by the amount by which appropriations pursu-
ant to such authorized amount are increased by a supplemental 
appropriation, or by a transfer of funds, pursuant to the Second 
Emergency Supplemental Appropriations Act to Meet Immediate 
Needs Arising From the Consequences of Hurricane Katrina, 2005 
(Public Law 109–62). 
(d) SUPPLEMENTAL APPROPRIATIONS FOR AVIAN FLU PREPARED-
NESS.—Amounts authorized to be appropriated to the Department 
of Defense for fiscal year 2006 in this Act are hereby adjusted, 
with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorized amount are 
increased by a supplemental appropriation, or by a transfer of 
funds, arising from the proposal of the President relating to avian 
flu preparedness that was submitted to Congress on November 
1, 2006. 
(e) AMOUNTS REALLOCATED FOR HURRICANE-RELATED DISASTER 
RELIEF.—Amounts authorized to be appropriated to the Department 
of Defense for fiscal year 2006 in this Act are hereby adjusted, 
with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorized amount are 
increased by a reallocation of funds from the Disaster Relief Fund 
of the Federal Emergency Management Agency arising from the 
proposal of the Director of the Office of Management and Budget 
on the reallocation of amounts for hurricane-related disaster relief 
that was submitted to the President on October 28, 2005, and 
transmitted to the Speaker of the House of Representatives on 
that date. 
(f) AMOUNTS FOR HUMANITARIAN ASSISTANCE FOR EARTHQUAKE 
VICTIMS IN PAKISTAN.—There is authorized to be appropriated as 
emergency supplemental appropriations for the Department of 
Defense for fiscal year 2006, $40,000,000 for the use of the Depart-
ment of Defense for overseas, humanitarian, disaster, and civic 
aid for the purpose of providing humanitarian assistance to the 
victims of the earthquake that devastated northern Pakistan on 
October 8, 2005. 
(g) REPORTS ON USE OF CERTAIN FUNDS.—
(1) REPORT ON USE OF EMERGENCY SUPPLEMENTAL FUNDS.—
Not later than six months after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the congres-
sional defense committees a report on the obligation and 
expenditure, as of that date, of any funds appropriated to 
the Department of Defense for fiscal year 2005 pursuant to 
the Acts referred to in subsections (a), (b), and (c) as authorized 
by such subsections. The report shall set forth—
(A) the amounts so obligated and expended; and