H. R. 4200—209
Mentor-Protege Program under section 811(d)(3) of the National
Defense Authorization Act for Fiscal Year 2000 (Public Law 106–
65; 113 Stat. 709).
(2) Not later than September 30, 2006, the Comptroller General
shall submit a report on the results of the study conducted under
paragraph (1) to the Committees on Armed Services of the Senate
and the House of Representatives.
SEC. 842. AMENDMENT TO MENTOR-PROTEGE PROGRAM.
Section 831(m)(2) of the National Defense Authorization Act
for Fiscal Year 1991 (Public Law 101–510; 10 U.S.C. 2302 note)
is amended—
(1) in subparagraph (D), by striking ‘‘or’’ at the end;
(2) in subparagraph (E), by striking the period at the
end and inserting a semicolon; and
(3) by adding at the end the following:
‘‘(F) a small business concern owned and controlled
by service–disabled veterans (as defined in section 8(d)(3)
of the Small Business Act); and
‘‘(G) a qualified HUBZone small business concern (as
defined in section 3(p) of the Small Business Act).’’.
SEC. 843. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF COM-
PREHENSIVE 
SMALL 
BUSINESS 
SUBCONTRACTING
PLANS.
Section 834(e) of the National Defense Authorization Act for
Fiscal Years 1990 and 1991 (Public Law 101–189; 15 U.S.C. 637
note) is amended by striking ‘‘September 30, 2005’’ and inserting
‘‘September 30, 2010’’.
SEC. 844. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFAC-
TURED ARTICLES AND SERVICES OF CERTAIN ARMY
INDUSTRIAL FACILITIES.
Section 141(a) of the National Defense Authorization Act for
Fiscal Year 1998 (Public Law 105–85; 10 U.S.C. 4543 note) is
amended by striking ‘‘through 2004’’ in the first sentence and
inserting ‘‘through 2009’’.
Subtitle E—Other Acquisition Matters
SEC. 851. REVIEW AND DEMONSTRATION PROJECT RELATING TO CON-
TRACTOR EMPLOYEES.
(a) GENERAL REVIEW.—(1) The Secretary of Defense shall con-
duct a review of policies, procedures, practices, and penalties of
the Department of Defense relating to employees of defense contrac-
tors for purposes of ensuring that the Department of Defense is
in compliance with Executive Order No. 12989 (relating to a prohibi-
tion on entering into contracts with contractors that are not in
compliance with the Immigration and Nationality Act).
(2) In conducting the review, the Secretary shall—
(A) identify potential weaknesses and areas for improve-
ment in existing policies, procedures, practices, and penalties;
(B) develop and implement reforms to strengthen, upgrade,
and improve policies, procedures, practices, and penalties of
the Department of Defense and its contractors; and
H. R. 4200—210
(C) review and analyze reforms developed pursuant to this
paragraph to identify for purposes of national implementation
those which are most efficient and effective.
(3) The review under this subsection shall be completed not
later than 180 days after the date of the enactment of this Act.
(b) DEMONSTRATION PROJECT.—The Secretary of Defense shall
conduct a demonstration project in accordance with this section,
in one or more regions selected by the Secretary, for purposes
of promoting greater contracting opportunities for contractors
offering effective, reliable staffing plans to perform defense contracts
that ensure all contract personnel employed for such projects,
including management employees, professional employees, craft
labor personnel, and administrative personnel, are lawful residents
or persons properly authorized to be employed in the United States
and properly qualified to perform services required under the con-
tract. The demonstration project shall focus on contracts for
construction, renovation, maintenance, and repair services for mili-
tary installations.
(c) DEMONSTRATION PROJECT PROCUREMENT PROCEDURES.—As
part of the demonstration project under subsection (b), the Secretary
of Defense may conduct a competition in which there is a provision
in contract solicitations and request for proposal documents to
require significant weight or credit be allocated to—
(1) reliable, effective workforce programs offered by
prospective contractors that provide background checks and
other measures to ensure the contractor is in compliance with
the Immigration and Nationality Act; and
(2) reliable, effective project staffing plans offered by
prospective contractors that specify for all contract employees
(including management employees, professionals, and craft
labor personnel) the skills, training, and qualifications of such
persons and the labor supply sources and hiring plans or proce-
dures used for employing such persons.
(d) IMPLEMENTATION OF DEMONSTRATION PROJECT.—The Sec-
retary of Defense shall begin operation of the demonstration project
required under this section after completion of the review under
subsection (a), but in no event later than 270 days after the date
of the enactment of this Act.
(e) REPORT ON DEMONSTRATION PROJECT.—Not later than six
months after award of a contract under the demonstration project,
the Secretary of Defense shall submit to the Committees on Armed
Services of the Senate and House of Representatives a report setting
forth a review of the demonstration project and recommendations
on the actions, if any, that can be implemented to ensure compliance
by the Department of Defense with Executive Order No. 12989.
(f) DEFINITION.—In this section, the term ‘‘military installation’’
means a base, camp, post, station, yard, center, homeport facility
for any ship, or other activity under the jurisdiction of the Depart-
ment of Defense, including any leased facility, which is located
within any of the several States, the District of Columbia, the
Commonwealth of Puerto Rico, American Samoa, the Virgin Islands,
or Guam. Such term does not include any facility used primarily
for civil works, rivers and harbors projects, or flood control projects.
H. R. 4200—211
SEC. 852. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO SETTLE-
MENTS UNDER SPECIAL TEMPORARY CONTRACT CLOSE-
OUT AUTHORITY.
Section 804(a) of the National Defense Authorization Act for
Fiscal Year 2004 (Public Law 108–136; 117 Stat. 1541) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a) AUTHORITY.—’’; and
(2) by adding at the end the following new paragraph:
‘‘(2) Under regulations which the Secretary of Defense may
prescribe, a settlement of a financial account for a contract for
the procurement of property or services under paragraph (1) may
be made without regard to—
‘‘(A) section 1301 of title 31, United States Code; and
‘‘(B) any other provision of law that would preclude the
Secretary from charging payments under the contract—
‘‘(i) to an unobligated balance in an appropriation avail-
able for funding that contract; or
‘‘(ii) if and to the extent that the unobligated balance
(if any) in such appropriation is insufficient for funding
such payments, to any current appropriation that is avail-
able to the Department of Defense for funding contracts
for the procurement of the same or similar property or
services.’’.
SEC. 853. CONTRACTING WITH EMPLOYERS OF PERSONS WITH
DISABILITIES.
(a) INAPPLICABILITY
OF RANDOLPH-SHEPPARD ACT
TO MESS
HALL SERVICES UNDER EXISTING JAVITS-WAGNER-O’DAY ACT CON-
TRACTS.—(1) The Randolph-Sheppard Act (20 U.S.C. 107 et seq.)
does not apply to any contract described in paragraph (2) for so
long as the contract is in effect, including for any period for which
the contract is extended pursuant to an option provided in the
contract.
(2) Paragraph (1) applies to any contract for the operation
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 that—
(A) was entered into before September 30, 2005, with a
qualified nonprofit agency for the blind or a qualified nonprofit
agency for other severely handicapped in compliance with sec-
tion 3 of the Javits-Wagner-O’Day Act (41 U.S.C. 48); and
(B) either—
(i) is in effect on such date; or
(ii) was in effect on November 24, 2003.
(b) INAPPLICABILITY OF JAVITS-WAGNER-O’DAY ACT TO MESS
HALL SERVICES UNDER EXISTING RANDOLPH-SHEPPARD ACT CON-
TRACTS.—(1) The Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.)
does not apply to any contract described in paragraph (2) for so
long as the contract is in effect, including for any period for which
the contract is extended pursuant to an option provided in the
contract.
(2) Paragraph (1) applies to any contract for the operation
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 that—
(A) was entered into before September 30, 2005, with a
State licensing agency under the Randolph-Sheppard Act (20
U.S.C. 107 et seq.); and
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(B) either—
(i) is in effect on such date; or
(ii) was in effect on November 24, 2003.
(3) In this subsection, the term ‘‘State licensing agency’’ means
an agency designated under section 2(a)(5) of the Randolph-
Sheppard Act (20 U.S.C. 107a(a)(5)).
(c) REPEAL OF SUPERSEDED LAW.—Subsections (a) and (b) of
section 852 of the National Defense Authorization Act for Fiscal
Year 2004 (Public Law 108–136; 117 Stat. 1556) are repealed.
SEC. 854. DEFENSE PROCUREMENTS MADE THROUGH CONTRACTS OF
OTHER AGENCIES.
(a) LIMITATION.—The head of an agency may not procure goods
or services (under section 1535 of title 31, United States Code,
pursuant to a designation under section 11302(e) of title 40, United
States Code, or otherwise) through a contract entered into by an
agency outside the Department of Defense for an amount greater
than the simplified acquisition threshold referred to in section
2304(g) of title 10, United States Code, unless the procurement
is done in accordance with procedures prescribed by that head
of an agency for reviewing and approving the use of such contracts.
(b) EFFECTIVE DATE.—The limitation in subsection (a) shall
apply only with respect to orders for goods or services that are
issued by the head of an agency to an agency outside the Depart-
ment of Defense on or after the date that is 180 days after the
date of the enactment of this Act.
(c) INAPPLICABILITY TO CONTRACTS FOR CERTAIN SERVICES.—
This section does not apply to procurements of the following serv-
ices:
(1) Printing, binding, or blank-book work to which section
502 of title 44, United States Code, applies.
(2) Services available under programs pursuant to section
103 of the Library of Congress Fiscal Operations Improvement
Act of 2000 (Public Law 106–481; 114 Stat. 2187; 2 U.S.C.
182c).
(d) ANNUAL REPORT.—(1) For each of fiscal years 2005 and
2006, each head of an agency shall submit to the Secretary of
Defense a report on the service charges imposed on purchases
made for an amount greater than the simplified acquisition
threshold during such fiscal year through a contract entered into
by an agency outside the Department of Defense.
(2) In the case of procurements made on orders issued by
the head of a Defense Agency, Department of Defense Field Activity,
or any other organization within the Department of Defense (other
than a military department) under the authority of the Secretary
of Defense as the head of an agency, the report under paragraph
(1) shall be submitted by the head of that Defense Agency, Depart-
ment of Defense Field Activity, or other organization, respectively.
(3) The report for a fiscal year under this subsection shall
be submitted not later than December 31 of the calendar year
in which such fiscal year ends.
(e) DEFINITIONS.—In this section:
(1) The term ‘‘head of an agency’’ means the Secretary
of Defense, the Secretary of the Army, the Secretary of the
Navy, the Secretary of the Air Force.
(2) The term ‘‘Defense Agency’’ has the meaning given
such term in section 101(a)(11) of title 10, United States Code.