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SEC. 618. PAYMENT OF SELECTED RESERVE REENLIST-
MENT BONUS TO MEMBERS OF SELECTED RE-
SERVE WHO ARE MOBILIZED. 
Section 308b of title 37, United States Code, is amend-
ed—
(1) by redesignating subsections (d), (e), and (f) 
as subsections (e), (f), and (g), respectively; and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) PAYMENT TO MOBILIZED MEMBERS.—In the case 
of a member entitled to a bonus under this section who is 
called or ordered to active duty, any amount of such bonus 
that is payable to the member during the period of active 
duty of the member shall be paid the member during that 
period of active duty without regard to the fact that the 
member is serving on active duty pursuant to such call or 
order to active duty.’’. 
SEC. 619. INCREASED RATE OF HOSTILE FIRE AND IMMI-
NENT DANGER SPECIAL PAY. 
(a) RATE.—Section 310(a) of title 37, United States 
Code, is amended by striking ‘‘$150’’ and inserting ‘‘$225’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003.
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SEC. 620. AVAILABILITY OF HOSTILE FIRE AND IMMINENT 
DANGER SPECIAL PAY FOR RESERVE COMPO-
NENT MEMBERS ON INACTIVE DUTY. 
(a) EXPANSION
AND CLARIFICATION
OF CURRENT 
LAW.—Section 310 of title 37, United States Code, is 
amended—
(1) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(2) by striking subsection (a) and inserting the 
following new subsections: 
‘‘(a) ELIGIBILITY AND SPECIAL PAY AMOUNT.—Under 
regulations prescribed by the Secretary of Defense, a mem-
ber of a uniformed service may be paid special pay at the 
rate of $150 for any month in which—
‘‘(1) the member was entitled to basic pay or 
compensation under section 204 or 206 of this title; 
and 
‘‘(2) the member—
‘‘(A) was subject to hostile fire or explosion 
of hostile mines; 
‘‘(B) was on duty in an area in which the 
member was in imminent danger of being ex-
posed to hostile fire or explosion of hostile mines 
and in which, during the period the member was 
on duty in the area, other members of the uni-
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formed services were subject to hostile fire or ex-
plosion of hostile mines; 
‘‘(C) was killed, injured, or wounded by 
hostile fire, explosion of a hostile mine, or any 
other hostile action; or 
‘‘(D) was on duty in a foreign area in 
which the member was subject to the threat of 
physical harm or imminent danger on the basis 
of civil insurrection, civil war, terrorism, or 
wartime conditions. 
‘‘(b) CONTINUATION DURING HOSPITALIZATION.—A 
member covered by subsection (a)(2)(C) who is hospitalized 
for the treatment of the injury or wound may be paid spe-
cial pay under this section for not more than three addi-
tional months during which the member is so hospitalized.’’. 
(b) CLERICAL AMENDMENTS.—Such section is further 
amended—
(1) in subsection (c), as redesignated by sub-
section (a)(1), by inserting ‘‘LIMITATIONS AND AD-
MINISTRATION.—’’ before ‘‘(1)’’; and 
(2) in subsection (d), as redesignated by sub-
section (a)(1), by inserting ‘‘DETERMINATIONS
OF 
FACT.—’’ before ‘‘Any’’.
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(c) EFFECTIVE DATE.—Subsections (a) and (b) of sec-
tion 310 of title 37, United States Code, as added by sub-
section (a)(2), shall take effect as of September 11, 2001. 
SEC. 621. EXPANSION OF OVERSEAS TOUR EXTENSION IN-
CENTIVE PROGRAM TO OFFICERS. 
(a) SPECIAL PAY OR BONUS FOR EXTENDING OVER-
SEAS TOUR OF DUTY.—(1) Subsections (a) and (b) of sec-
tion 314 of title 37, United States Code, are amended by 
striking ‘‘an enlisted member’’ and inserting ‘‘a member’’. 
(2)(A) The heading of such section is amended to read 
as follows: 
‘‘§ 314. Special pay or bonus: qualified members ex-
tending duty at designated locations over-
seas’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 5 of such title is amend-
ed to read as follows:
‘‘314. Special pay or bonus: qualified members extending duty at designated loca-
tions overseas.’’.
(b) REST AND RECUPERATIVE ABSENCE IN LIEU OF 
PAY OR BONUS.—(1) Subsection (a) of section 705 of title 
10, United States Code, is amended by striking ‘‘an enlisted 
member’’ and inserting ‘‘a member’’. 
(2)(A) The heading of such section is amended to read 
as follows:
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‘‘§ 705. Rest and recuperation absence: qualified 
members extending duty at designated lo-
cations overseas’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 40 of such title is 
amended to read as follows:
‘‘705. Rest and recuperation absence: qualified members extending duty at des-
ignated locations overseas.’’.
SEC. 622. ELIGIBILITY OF WARRANT OFFICERS FOR ACCES-
SION BONUS FOR NEW OFFICERS IN CRITICAL 
SKILLS. 
(a) ELIGIBILITY.—Section 324 of title 37, United 
States Code, is amended in subsections (a) and (f)(1) by 
inserting ‘‘or an appointment’’ after ‘‘commission’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003. 
SEC. 623. INCENTIVE BONUS FOR CONVERSION TO MILI-
TARY OCCUPATIONAL SPECIALTY TO EASE 
PERSONNEL SHORTAGE. 
(a) IN GENERAL.—Chapter 5 of title 37, United States 
Code, is amended by adding at the end the following new 
section:
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‘‘§ 326. Incentive bonus: conversion to military occu-
pational specialty to ease personnel short-
age 
‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Secretary 
concerned may pay a bonus under this section to an eligible 
member of the armed forces who executes a written agree-
ment to convert to, and serve for a period of not less than 
four years in, a military occupational specialty for which 
there is a shortage of trained and qualified personnel. 
‘‘(b) ELIGIBLE MEMBERS.—A member is eligible for 
a bonus under this section if—
‘‘(1) the member is entitled to basic pay; and 
‘‘(2) at the time the agreement under subsection 
(a) is executed, the member is serving in—
‘‘(A) pay grade E–6 with not more than 10 
years of service computed under section 205 of 
this title; or 
‘‘(B) pay grade E–5 or below, regardless of 
years of service. 
‘‘(c) AMOUNT AND PAYMENT OF BONUS.—(1) A bonus 
under this section may not exceed $4,000. 
‘‘(2) A bonus payable under this section shall be dis-
bursed in one lump sum when the member’s conversion to 
the military occupational specialty is approved by the chief 
personnel officer of the member’s armed force.
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‘‘(d) RELATIONSHIP
TO OTHER PAY
AND ALLOW-
ANCES.—A bonus paid to a member under this section is 
in addition to any other pay and allowances to which the 
member is entitled. 
‘‘(e) REPAYMENT OF BONUS.—(1) A member who re-
ceives a bonus for conversion to a military occupational 
specialty under this section and who, voluntarily or because 
of misconduct, fails to serve in such military occupational 
specialty for the period specified in the agreement shall re-
fund to the United States an amount that bears the same 
ratio to the bonus amount paid to the member as the 
unserved part of such period bears to the total period agreed 
to be served. 
‘‘(2) An obligation to reimburse the United States im-
posed under paragraph (1) is, for all purposes, a debt owed 
to the United States. 
‘‘(3) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of the 
agreement for which a bonus was paid under this section 
shall not discharge the person signing such agreement from 
the debt arising under paragraph (1). 
‘‘(4) Under regulations prescribed pursuant to sub-
section (f), the Secretary concerned may waive, in whole 
or in part, a refund required under paragraph (1) if the 
Secretary determines that recovery would be against equity
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and good conscience or would be contrary to the best inter-
ests of the United States. 
‘‘(f) REGULATIONS.—The Secretaries concerned shall 
prescribe regulations to carry out this section. Regulations 
prescribed by the Secretary of a military department shall 
be subject to the approval of the Secretary of Defense. 
‘‘(g) TERMINATION
OF AUTHORITY.—No agreement 
under this section may be entered into after December 31, 
2006.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item:
‘‘326. Incentive bonus: conversion to military occupational specialty to ease per-
sonnel shortage.’’.
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. SHIPMENT OF PRIVATELY OWNED MOTOR VEHI-
CLE WITHIN CONTINENTAL UNITED STATES. 
(a) AUTHORITY TO PROCURE CONTRACT FOR TRANS-
PORTATION OF MOTOR VEHICLE.—Section 2634 of title 10, 
United States Code, is amended—
(1) by redesignating subsection (h) as subsection 
(i); and 
(2) by inserting after subsection (g) the following 
new subsection (h):
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‘‘(h) In the case of a member’s change of permanent 
station described in subparagraph (A) or (B) of subsection 
(i)(1), the Secretary concerned may authorize the member 
to arrange for the shipment of the motor vehicle in lieu of 
transportation at the expense of the United States under 
this section. The Secretary concerned may pay the member 
a monetary allowance in lieu of transportation, as estab-
lished under section 404(d)(1) of title 37, and the member 
shall be responsible for any transportation costs in excess 
of such allowance.’’. 
(b) ALLOWANCE FOR SELF-PROCUREMENT OF TRANS-
PORTATION OF MOTOR VEHICLE.—Section 406(b)(1)(B) of 
title 37, United States Code, is amended by adding at the 
end the following new sentence: ‘‘In the case of the transpor-
tation of a motor vehicle arranged by the member under 
section 2634(h) of title 10, the Secretary concerned may pay 
the member, upon presentation of proof of shipment, a mon-
etary allowance in lieu of transportation, as established 
under section 404(d)(1) of this title.’’. 
SEC. 632. PAYMENT OR REIMBURSEMENT OF STUDENT 
BAGGAGE STORAGE COSTS FOR DEPENDENT 
CHILDREN OF MEMBERS STATIONED OVER-
SEAS. 
Section 430(b)(2) of title 37, United States Code, is 
amended in the first sentence by inserting before the period
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at the end the following: ‘‘or during a different period in 
the same fiscal year selected by the member’’. 
SEC. 633. CONTRACTS FOR FULL REPLACEMENT VALUE 
FOR LOSS OR DAMAGE TO PERSONAL PROP-
ERTY TRANSPORTED AT GOVERNMENT EX-
PENSE. 
(a) AUTHORITY.—Chapter 157 of title 10, United 
States Code, is amended by inserting after section 2636 the 
following new section: 
‘‘§ 2636a. Loss or damage to personal property trans-
ported at Government expense: full re-
placement value; deduction from amounts 
due carriers 
‘‘(a) PROCUREMENT OF COVERAGE.—The Secretary of 
Defense may include in a contract for the transportation 
of baggage and household effects for members of the armed 
forces at Government expense a clause that requires the car-
rier under the contract to pay the full replacement value 
for loss or damage to the baggage or household effects trans-
ported under the contract. 
‘‘(b) DEDUCTION UPON FAILURE OF CARRIER TO SET-
TLE.—In the case of a loss or damage of baggage or house-
hold effects transported under a contract with a carrier that 
includes a clause described in subsection (a), the amount 
equal to the full replacement value for the baggage or house-
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hold effects may be deducted from the amount owed by the 
United States to the carrier under the contract upon a fail-
ure of the carrier to settle a claim for such loss or total 
damage within a reasonable time. The amount so deducted 
shall be remitted to the claimant, notwithstanding section 
2636 of this title. 
‘‘(c) INAPPLICABILITY OF RELATED LIMITS.—The lim-
itations on amounts of claims that may be settled under 
section 3721(b) of title 31 do not apply to a carrier’s con-
tractual obligation to pay full replacement value under this 
section. 
‘‘(d) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations for administering this section. The 
regulations shall include policies and procedures for vali-
dating and evaluating claims, validating proper claimants, 
and determining reasonable time for settlement. 
‘‘(e) TRANSPORTATION DEFINED.—In this section, the 
terms ‘transportation’ and ‘transport’, with respect to bag-
gage or household effects, includes packing, crating, 
drayage, temporary storage, and unpacking of the baggage 
or household effects.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 2636 the following new item:
‘‘2636a. Loss or damage to personal property transported at Government expense: 
full replacement value; deduction from amounts due carriers.’’.
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SEC
634. TRANSPORTATION OF DEPENDENTS TO PRES-
ENCE OF MEMBERS OF THE ARMED FORCES 
WHO ARE RETIRED FOR ILLNESS OR INJURY 
INCURRED IN ACTIVE DUTY. 
Section 411h(a) of title 37, United States Code, is 
amended—
(1) in paragraph (1), by striking ‘‘paragraph 
(2)’’ and inserting ‘‘paragraph (3)’’; 
(2) by redesignating paragraph (2) as para-
graph (3); 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) Under the regulations prescribed under para-
graph (1), transportation described in subsection (c) may 
be provided for not more than two family members of a 
member otherwise described in paragraph (3) who is retired 
for an illness or injury described in that paragraph if the 
attending physician or surgeon and the commander or head 
of the military medical facility exercising control over the 
member determine that the presence of the family member 
would be in the best interests of the family member.’’; and 
(4) in paragraph (3), as so redesignated, by 
striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph 
(1) or (2)’’.
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Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. SPECIAL RULE FOR COMPUTATION OF RETIRED 
PAY BASE FOR COMMANDERS OF COMBATANT 
COMMANDS. 
(a) TREATMENT EQUIVALENT TO CHIEFS OF SERV-
ICE.—Subsection (i) of section 1406 of title 10, United 
States Code, is amended by inserting ‘‘as a commander of 
a unified or specified combatant command (as defined in 
section 161(c) of this title),’’ after ‘‘Chief of Service,’’. 
(b) CONFORMING AMENDMENT.—The heading for such 
subsection is amended by inserting ‘‘COMMANDERS OF COM-
BATANT COMMANDS,’’ after ‘‘CHIEFS OF SERVICE,’’. 
(c) EFFECTIVE
DATE
AND
APPLICABILITY.—The 
amendments made by this section shall take effect on the 
date of the enactment of this Act and shall apply with re-
spect to officers who first become entitled to retired pay 
under title 10, United States Code, on or after such date.
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SEC. 642. SURVIVOR BENEFIT PLAN ANNUITIES FOR SUR-
VIVING SPOUSES OF RESERVES NOT ELIGI-
BLE FOR RETIREMENT WHO DIE FROM A 
CAUSE INCURRED OR AGGRAVATED WHILE 
ON INACTIVE-DUTY TRAINING. 
(a) SURVIVING SPOUSE ANNUITY.—Paragraph (1) of 
section 1448(f) of title 10, United States Code, is amended 
to read as follows: 
‘‘(1) SURVIVING
SPOUSE
ANNUITY.—The Sec-
retary concerned shall pay an annuity under this 
subchapter to the surviving spouse of—
‘‘(A) a person who is eligible to provide a 
reserve-component annuity and who dies—
‘‘(i) before being notified under section 
12731(d) of this title that he has completed 
the years of service required for eligibility 
for reserve-component retired pay; or 
‘‘(ii) during the 90-day period begin-
ning on the date he receives notification 
under section 12731(d) of this title that he 
has completed the years of service required 
for eligibility for reserve-component retired 
pay if he had not made an election under 
subsection (a)(2)(B) to participate in the 
Plan; or
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‘‘(B) a member of a reserve component not 
described in subparagraph (A) who dies from an 
injury or illness incurred or aggravated in the 
line of duty during inactive-duty training.’’. 
(b) CONFORMING AMENDMENT.—The heading for sub-
section (f) of section 1448 of such title is amended by insert-
ing ‘‘OR BEFORE’’ after ‘‘DYING WHEN’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect as of September 10, 2001, and shall 
apply with respect to performance of inactive-duty training 
(as defined in section 101(d) of title 10, United States Code) 
on or after that date. 
SEC. 643. INCREASE IN DEATH GRATUITY PAYABLE WITH 
RESPECT TO DECEASED MEMBERS OF THE 
ARMED FORCES. 
(a) AMOUNT OF DEATH GRATUITY.—Section 1478(a) 
of title 10, United States Code, is amended by striking 
‘‘$6,000’’ and inserting ‘‘$12,000’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect as of September 11, 2001, and 
shall apply with respect to deaths occurring on or after that 
date. 
(c) DEATH BENEFITS STUDY.—(1) It is the sense of 
Congress that—
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(A) the sacrifices made by the members of the 
United States Armed Forces are significant and are 
worthy of meaningful expressions of gratitude by the 
Government of the United States, especially in cases 
of sacrifice through loss of life; 
(B) the tragic events of September 11, 2001, and 
subsequent worldwide combat operations in the Global 
War on Terrorism and in Operation Iraqi Freedom 
have highlighted the significant disparity between the 
financial benefits for survivors of deceased members of 
the Armed Forces and the financial benefits for sur-
vivors of civilian victims of terrorism; 
(C) the death benefits system composed of the 
death gratuity paid by the Department of Defense to 
survivors of members of the Armed Forces, the subse-
quently established Servicemembers’ Group Life In-
surance (SGLI) program, and other benefits for sur-
vivors of deceased members has evolved over time, but 
there are increasing indications that the evolution of 
such benefits has failed to keep pace with the expan-
sion of indemnity and compensation available to seg-
ments of United States society outside the Armed 
Forces, a failure that is especially apparent in a com-
parison of the benefits for survivors of deceased mem-
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bers with the compensation provided to families of ci-
vilian victims of terrorism; and 
(D) while Servicemembers’ Group Life Insurance 
(SGLI) provides an assured source of life insurance 
for members of the Armed Forces that benefits the sur-
vivors of such members upon death, the SGLI pro-
gram requires the members to pay for that life insur-
ance coverage and does not provide an assured min-
imum benefit. 
(2) The Secretary of Defense shall carry out a study 
of the totality of all current and projected death benefits 
for survivors of deceased members of the Armed Forces to 
determine the adequacy of such benefits. In carrying out 
the study, the Secretary shall—
(A) compare the Federal Government death bene-
fits for survivors of deceased members of the Armed 
Forces with commercial and other private sector 
death benefits plans for segments of United States so-
ciety outside the Armed Forces, and also with the ben-
efits available under Public Law 107–37 (115 Stat. 
219) (commonly known as the ‘‘Public Safety Officer 
Benefits Bill’’); 
(B) assess the personnel policy effects that would 
result from a revision of the death gratuity benefit to 
provide a stratified schedule of entitlement amounts
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that places a premium on deaths resulting from par-
ticipation in combat or from acts of terrorism; 
(C) assess the adequacy of the current system of 
Survivor Benefit Plan annuities and Dependency and 
Indemnity Compensation and the anticipated effects 
of an elimination of the offset of Survivor Benefit 
Plan annuities by Dependency and Indemnity Com-
pensation; 
(D) examine the commercial insurability of 
members of the Armed Forces in high risk military 
occupational specialties; and 
(E) examine the extent to which private trusts 
and foundations engage in fundraising or otherwise 
provide financial benefits for survivors of deceased 
members of the Armed Forces. 
(3) Not later than March 1, 2004, the Secretary shall 
submit a report on the results of the study under paragraph 
(2) to the Committees on Armed Services of the Senate and 
the House of Representatives. The report shall include the 
following: 
(A) The assessments, analyses, and conclusions 
resulting from the study. 
(B) Proposed legislation to address the defi-
ciencies in the system of Federal Government death 
benefits for survivors of deceased members of the
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Armed Forces that are identified in the course of the 
study. 
(C) An estimate of the costs of the system of 
death benefits provided for in the proposed legislation. 
(4) The Comptroller General shall conduct a study to 
identify the death benefits that are payable under Federal, 
State, and local laws for employees of the Federal Govern-
ment, State governments, and local governments. Not later 
than November 1, 2003, the Comptroller General shall sub-
mit a report containing the results of the study to the Com-
mittees on Armed Services of the Senate and the House of 
Representatives. 
SEC. 644. FULL PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION TO DISABLED MILITARY RETIR-
EES. 
(a) RESTORATION
OF FULL RETIRED PAY BENE-
FITS.—Section 1414 of title 10, United States Code, is 
amended to read as follows: 
‘‘§ 1414. Members eligible for retired pay who have 
service-connected disabilities: payment of 
retired pay and veterans’ disability com-
pensation 
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Except as provided in subsection (b), a mem-
ber or former member of the uniformed services who is enti-
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tled to retired pay (other than as specified in subsection 
(c)) and who is also entitled to veterans’ disability com-
pensation is entitled to be paid both without regard to sec-
tions 5304 and 5305 of title 38. 
‘‘(b) SPECIAL RULE FOR CHAPTER 61 CAREER RETIR-
EES.—The retired pay of a member retired under chapter 
61 of this title with 20 years or more of service otherwise 
creditable under section 1405 of this title at the time of the 
member’s retirement is subject to reduction under sections 
5304 and 5305 of title 38, but only to the extent that the 
amount of the member’s retired pay under chapter 61 of 
this title exceeds the amount of retired pay to which the 
member would have been entitled under any other provision 
of law based upon the member’s service in the uniformed 
services if the member had not been retired under chapter 
61 of this title. 
‘‘(c) EXCEPTION.—Subsection (a) does not apply to a 
member retired under chapter 61 of this title with less than 
20 years of service otherwise creditable under section 1405 
of this title at the time of the member’s retirement. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘retired pay’ includes retainer 
pay, emergency officers’ retirement pay, and naval 
pension.
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‘‘(2) The term ‘veterans’ disability compensation’ 
has the meaning given the term ‘compensation’ in sec-
tion 101(13) of title 38.’’. 
(b) REPEAL
OF
SPECIAL
COMPENSATION
PRO-
GRAMS.—Sections 1413 and 1413a of such title are re-
pealed. 
(c) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by striking the 
items relating to sections 1413, 1413a, and 1414 and insert-
ing the following:
‘‘1414. Members eligible for retired pay who have service-connected disabilities: 
payment of retired pay and veterans’ disability compensation.’’.
(d) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on—
(1) the first day of the first month that begins 
after the date of the enactment of this Act; or 
(2) the first day of the fiscal year that begins in 
the calendar year in which this Act is enacted, if later 
than the date specified in paragraph (1). 
(e) PROHIBITION ON RETROACTIVE BENEFITS.—No 
benefits may be paid to any person by reason of section 
1414 of title 10, United States Code, as amended by sub-
section (a), for any period before the effective date applica-
ble under subsection (d).
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Subtitle E—Other Matters 
SEC. 651. RETENTION OF ACCUMULATED LEAVE. 
(a) HIGHER MAXIMUM LIMITATION ASSOCIATED WITH 
CERTAIN SERVICE.—Section 701(f) of title 10, United 
States Code, is amended to read as follows: 
‘‘(f)(1) The Secretary of Defense may authorize a mem-
ber eligible under paragraph (2) to retain 120 days’ leave 
accumulated by the end of the fiscal year described in such 
paragraph. 
‘‘(2) Paragraph (1) applies to a member who—
‘‘(A) during a fiscal year—
‘‘(i) serves on active duty for a continuous 
period of at least 120 days in an area in which 
the member is entitled to special pay under sec-
tion 310(a) of title 37; or 
‘‘(ii) is assigned to a deployable ship, to a 
mobile unit, to duty in support of a contingency 
operation, or to other duty designated for the 
purpose of this section; and 
‘‘(B) except for paragraph (1), would lose any 
accumulated leave in excess of 60 days at the end of 
the fiscal year. 
‘‘(3) Leave in excess of 60 days accumulated under this 
subsection is lost unless it is used by the member before the
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end of the third fiscal year after the fiscal year in which 
the service described in paragraph (2) terminated.’’. 
(b) SAVINGS PROVISIONS.—Regulations in effect under 
subsection (f) of section 701 of title 10, United States Code, 
on the day before the date of the enactment of this Act shall 
remain in effect until revised or superseded by regulations 
prescribed to implement the authority under the amend-
ment made by subsection (a). 
(c) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2003. 
SEC. 652. GAO STUDY. 
Not later than April 1, 2004, the Comptroller General 
shall submit a report regarding the adequacy of special 
pays and allowances for service members who experience 
frequent deployments away from their permanent duty sta-
tions for periods less than 30 days. The policies regarding 
eligibility for family separation allowance, including those 
relating to required duration of absences from the perma-
nently assigned duty station, should be assessed. 
Subtitle 
F—Naturalization 
and 
Family Protection for Military 
Members 
SEC. 661. SHORT TITLE. 
This subtitle may be cited as the ‘‘Naturalization and 
Family Protection for Military Members Act of 2003’’.
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SEC. 662. REQUIREMENTS FOR NATURALIZATION THROUGH 
SERVICE IN THE ARMED FORCES OF THE 
UNITED STATES. 
(a) REDUCTION OF PERIOD FOR REQUIRED SERV-
ICE.—Section 328(a) of the Immigration and Nationality 
Act (8 U.S.C. 1439(a)) is amended by striking ‘‘three 
years’’ and inserting ‘‘2 years’’. 
(b) PROHIBITION ON IMPOSITION OF FEES RELATING 
TO NATURALIZATION.—Title III of the Immigration and 
Nationality Act (8 U.S.C. 1401 et seq.) is amended—
(1) in section 328(b)—
(A) in paragraph (3)—
(i) by striking ‘‘honorable. The’’ and 
inserting ‘‘honorable (the’’; and 
(ii) by striking ‘‘discharge.’’ and in-
serting ‘‘discharge); and’’; and 
(B) by adding at the end the following: 
‘‘(4) notwithstanding any other provision of law, 
no fee shall be charged or collected from the applicant 
for filing a petition for naturalization or for the 
issuance of a certificate of naturalization upon citi-
zenship being granted to the applicant, and no clerk 
of any State court shall charge or collect any fee for 
such services unless the laws of the State require such 
charge to be made, in which case nothing more than
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the portion of the fee required to be paid to the State 
shall be charged or collected.’’; and 
(2) in section 329(b)—
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) notwithstanding any other provision of law, 
no fee shall be charged or collected from the applicant 
for filing a petition for naturalization or for the 
issuance of a certificate of naturalization upon citi-
zenship being granted to the applicant, and no clerk 
of any State court shall charge or collect any fee for 
such services unless the laws of the State require such 
charge to be made, in which case nothing more than 
the portion of the fee required to be paid to the State 
shall be charged or collected.’’. 
(c) NATURALIZATION PROCEEDINGS OVERSEAS FOR 
MEMBERS OF THE ARMED FORCES.—Notwithstanding any 
other provision of law, the Secretary of Homeland Security, 
the Secretary of State, and the Secretary of Defense shall 
ensure that any applications, interviews, filings, oaths, 
ceremonies, or other proceedings under title III of the Immi-
gration and Nationality Act (8 U.S.C. 1401 et seq.) relating
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to naturalization of members of the Armed Forces are avail-
able through United States embassies, consulates, and as 
practicable, United States military installations overseas. 
(d) FINALIZATION OF NATURALIZATION PROCEEDINGS 
FOR MEMBERS OF THE ARMED FORCES.—Not later than 
90 days after the date of enactment of this Act, the Sec-
retary of Defense shall prescribe a policy that facilitates the 
opportunity for a member of the Armed Forces to finalize 
naturalization for which the member has applied. The pol-
icy shall include, for such purpose, the following: 
(1) A high priority for grant of emergency leave. 
(2) A high priority for transportation on air-
craft of, or chartered by, the Armed Forces. 
(e) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 328(b)(3) of the Immigration and Nationality Act (8 
U.S.C. 1439(b)(3)) is amended by striking ‘‘Attorney Gen-
eral’’ and inserting ‘‘Secretary of Homeland Security’’. 
SEC. 663. NATURALIZATION BENEFITS FOR MEMBERS OF 
THE SELECTED RESERVE OF THE READY RE-
SERVE. 
Section 329(a) of the Immigration and Nationality 
Act (8 U.S.C. 1440(a)) is amended by inserting ‘‘as a mem-
ber of the Selected Reserve of the Ready Reserve or’’ after 
‘‘has served honorably’’.
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SEC. 664. EXTENSION OF POSTHUMOUS BENEFITS TO SUR-
VIVING SPOUSES, CHILDREN, AND PARENTS. 
(a) TREATMENT AS IMMEDIATE RELATIVES.—
(1) SPOUSES.—Notwithstanding the second sen-
tence of section 201(b)(2)(A)(i) of the Immigration 
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)), in 
the case of an alien who was the spouse of a citizen 
of the United States at the time of the citizen’s death 
and was not legally separated from the citizen at the 
time of the citizen’s death, if the citizen served honor-
ably in an active duty status in the military, air, or 
naval forces of the United States and died as a result 
of injury or disease incurred in or aggravated by 
combat, the alien (and each child of the alien) shall 
be considered, for purposes of section 201(b) of such 
Act, to remain an immediate relative after the date 
of the citizen’s death, but only if the alien files a peti-
tion under section 204(a)(1)(A)(ii) of such Act within 
2 years after such date and only until the date the 
alien remarries. For purposes of such section 
204(a)(1)(A)(ii), an alien granted relief under the 
preceding sentence shall be considered an alien spouse 
described 
in 
the 
second 
sentence 
of 
section 
201(b)(2)(A)(i) of such Act. 
(2) CHILDREN.—
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(A) IN GENERAL.—In the case of an alien 
who was the child of a citizen of the United 
States at the time of the citizen’s death, if the 
citizen served honorably in an active duty status 
in the military, air, or naval forces of the United 
States and died as a result of injury or disease 
incurred in or aggravated by combat, the alien 
shall be considered, for purposes of section 201(b) 
of the Immigration and Nationality Act (8 
U.S.C. 1151(b)), to remain an immediate rel-
ative after the date of the citizen’s death (regard-
less of changes in age or marital status there-
after), but only if the alien files a petition under 
subparagraph (B) within 2 years after such date. 
(B) PETITIONS.—An alien described in sub-
paragraph (A) may file a petition with the Sec-
retary of Homeland Security for classification of 
the alien under section 201(b)(2)(A)(i) of the Im-
migration and Nationality Act (8 U.S.C. 
1151(b)(2)(A)(i)). For purposes of such Act, such 
a petition shall be considered a petition filed 
under section 204(a)(1)(A) of such Act (8 U.S.C. 
1154(a)(1)(A)). 
(3) PARENTS.—
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(A) IN GENERAL.—In the case of an alien 
who was the parent of a citizen of the United 
States at the time of the citizen’s death, if the 
citizen served honorably in an active duty status 
in the military, air, or naval forces of the United 
States and died as a result of injury or disease 
incurred in or aggravated by combat, the alien 
shall be considered, for purposes of section 201(b) 
of the Immigration and Nationality Act (8 
U.S.C. 1151(b)), to remain an immediate rel-
ative after the date of the citizen’s death (regard-
less of changes in age or marital status there-
after), but only if the alien files a petition under 
subparagraph (B) within 2 years after such date. 
(B) PETITIONS.—An alien described in sub-
paragraph (A) may file a petition with the Sec-
retary of Homeland Security for classification of 
the alien under section 201(b)(2)(A)(i) of the Im-
migration and Nationality Act (8 U.S.C. 
1151(b)(2)(A)(i)). For purposes of such Act, such 
a petition shall be considered a petition filed 
under section 204(a)(1)(A) of such Act (8 U.S.C. 
1154(a)(1)(A)). 
(C) EXCEPTION.—Notwithstanding section 
201(b)(2)(A)(i) of the Immigration and Nation-
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ality Act (8 U.S.C. 1151(b)(2)(A)(i)), for pur-
poses of this paragraph, a citizen described in 
subparagraph (A) does not have to be 21 years 
of age for a parent to benefit under this para-
graph. 
(b) APPLICATIONS FOR ADJUSTMENT OF STATUS BY 
SURVIVING SPOUSES, CHILDREN, AND PARENTS.—
(1) IN GENERAL.—Notwithstanding subsections 
(a) and (c) of section 245 of the Immigration and Na-
tionality Act (8 U.S.C. 1255), any alien who was the 
spouse, child, or parent of an alien described in para-
graph (2), and who applied for adjustment of status 
prior to the death described in paragraph (2)(B), 
may have such application adjudicated as if such 
death had not occurred. 
(2) ALIEN DESCRIBED.—An alien is described in 
this paragraph if the alien—
(A) served honorably in an active duty sta-
tus in the military, air, or naval forces of the 
United States; 
(B) died as a result of injury or disease in-
curred in or aggravated by combat; and 
(C) was granted posthumous citizenship 
under section 329A of the Immigration and Na-
tionality Act (8 U.S.C. 1440–1).
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(c) SPOUSES AND CHILDREN OF LAWFUL PERMANENT 
RESIDENT ALIENS.—
(1) TREATMENT AS IMMEDIATE RELATIVES.—
(A) IN GENERAL.—A spouse or child of an 
alien described in paragraph (3) who is included 
in a petition for classification as a family-spon-
sored immigrant under section 203(a)(2) of the 
Immigration and Nationality Act (8 U.S.C. 
1153(a)(2)) that was filed by such alien, shall be 
considered (if the spouse or child has not been 
admitted or approved for lawful permanent resi-
dence by such date) a valid petitioner for imme-
diate 
relative 
status 
under 
section 
201(b)(2)(A)(i) of the Immigration and Nation-
ality Act (8 U.S.C. 1151(b)(2)(A)(i)). Such 
spouse or child shall be eligible for deferred ac-
tion, advance parole, and work authorization. 
(B) PETITIONS.—An alien spouse or child 
described in subparagraph (A) may file a peti-
tion with the Secretary of Homeland Security 
for classification of the alien under section 
201(b)(2)(A)(i) of the Immigration and Nation-
ality Act (8 U.S.C. 1151(b)(2)(A)(i)). For pur-
poses of such Act, such a petition shall be consid-
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ered a petition filed under section 204(a)(1)(A) 
of such Act (8 U.S.C. 1154(a)(1)(A)). 
(2) SELF-PETITIONS.—Any spouse or child of an 
alien described in paragraph (3) who is not a bene-
ficiary of a petition for classification as a family-
sponsored immigrant may file a petition for such 
classification under section 201(b)(2)(A)(i) of the Im-
migration 
and 
Nationality 
Act 
(8 
U.S.C. 
1151(b)(2)(A)(i)) with the Secretary of Homeland Se-
curity, but only if the spouse or child files a petition 
within 2 years after such date. Such spouse or child 
shall be eligible for deferred action, advance parole, 
and work authorization. 
(3) ALIEN DESCRIBED.—An alien is described in 
this paragraph if the alien—
(A) served honorably in an active duty sta-
tus in the military, air, or naval forces of the 
United States; 
(B) died as a result of injury or disease in-
curred in or aggravated by combat; and 
(C) was granted posthumous citizenship 
under section 329A of the Immigration and Na-
tionality Act (8 U.S.C. 1440–1). 
(d) PARENTS
OF LAWFUL PERMANENT RESIDENT 
ALIENS.—
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(1) SELF-PETITIONS.—Any parent of an alien 
described in paragraph (2) may file a petition for 
classification under section 201(b)(2)(A)(i) of the Im-
migration 
and 
Nationality 
Act 
(8 
U.S.C. 
1151(b)(2)(A)(i)), but only if the parent files a peti-
tion within 2 years after such date. For purposes of 
such Act, such petition shall be considered a petition 
filed under section 204(a)(1)(A) of such Act (8 U.S.C. 
1154(a)(1)(A)). Such parent shall be eligible for de-
ferred action, advance parole, and work authoriza-
tion. 
(2) ALIEN DESCRIBED.—An alien is described in 
this paragraph if the alien—
(A) served honorably in an active duty sta-
tus in the military, air, or naval forces of the 
United States; 
(B) died as a result of injury or disease in-
curred in or aggravated by combat; and 
(C) was granted posthumous citizenship 
under section 329A of the Immigration and Na-
tionality Act (8 U.S.C. 1440–1). 
(e) ADJUSTMENT OF STATUS.—Notwithstanding sub-
sections (a) and (c) of section 245 of the Immigration and 
Nationality Act (8 U.S.C. 1255), an alien physically 
present in the United States who is the beneficiary of a
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petition under paragraph (1), (2)(B), or (3)(B) of sub-
section (a), paragraph (1)(B) or (2) of subsection (c), or 
subsection (d)(1) of this section, may apply to the Secretary 
of Homeland Security for adjustment of status to that of 
an alien lawfully admitted for permanent residence. 
(f) WAIVER
OF CERTAIN GROUNDS
OF INADMIS-
SIBILITY.—In determining the admissibility of any alien 
accorded an immigration benefit under this section, the 
ground for inadmissibility specified in section 212(a)(4) of 
the Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) 
shall not apply, and notwithstanding any other provision 
of law, the Secretary of Homeland Security may waive 
paragraph (6)(A), (7), and (9)(B) of section 212(a) of the 
Immigration and Nationality Act (8 U.S.C. 1182(a)) with 
respect to such an alien if the alien establishes exceptional 
and extremely unusual hardship to the alien or the alien’s 
spouse, parent, or child, who is a citizen of the United 
States or an alien lawfully admitted for permanent resi-
dence. Any such waiver by the Secretary of Homeland Secu-
rity shall be in writing and shall be granted only on an 
individual basis following an investigation. 
(g) BENEFITS
TO SURVIVORS; TECHNICAL AMEND-
MENT.—Section 329A of the Immigration and Nationality 
Act (8 U.S.C. 1440–1) is amended—
(1) by striking subsection (e); and
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(2) by striking ‘‘Attorney General’’ each place 
that term appears and inserting ‘‘Secretary of Home-
land Security’’. 
(h) TECHNICAL AND CONFORMING AMENDMENTS.—
Section 319(d) of the Immigration and Nationality Act (8 
U.S.C. 1430(d)) is amended—
(1) by inserting ‘‘, child, or parent’’ after ‘‘sur-
viving spouse’’; 
(2) by inserting ‘‘, parent, or child’’ after ‘‘whose 
citizen spouse’’; and 
(3) by striking ‘‘who was living’’ and inserting 
‘‘who, in the case of a surviving spouse, was living’’. 
SEC. 665. EFFECTIVE DATE. 
This subtitle and the amendments made by this sub-
title shall take effect as if enacted on September 11, 2001. 
TITLE VII—HEALTH CARE 
SEC. 701. MEDICAL AND DENTAL SCREENING FOR MEM-
BERS OF SELECTED RESERVE UNITS ALERT-
ED FOR MOBILIZATION. 
Section 1074a of title 10, United States Code, is 
amended by adding at the end the following new subsection: 
‘‘(f)(1) At any time after the Secretary concerned noti-
fies members of the Ready Reserve that the members are 
to be called or ordered to active duty, the administering 
Secretaries may provide to each such member any medical
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and dental screening and care that is necessary to ensure 
that the member meets the applicable medical and dental 
standards for deployment. 
‘‘(2) The screening and care authorized under para-
graph (1) shall include screening and care under 
TRICARE, pursuant to eligibility under paragraph (3), 
and continuation of care benefits under paragraph (4). 
‘‘(3)(A) Members of the Selected Reserve of the Ready 
Reserve and members of the Individual Ready Reserve de-
scribed in section 10144(b) of this title are eligible, subject 
to subparagraph (I), to enroll in TRICARE. 
‘‘(B) A member eligible under subparagraph (A) may 
enroll for either of the following types of coverage: 
‘‘(i) Self alone coverage. 
‘‘(ii) Self and family coverage. 
‘‘(C) An enrollment by a member for self and family 
covers the member and the dependents of the member who 
are described in subparagraph (A), (D), or (I) of section 
1072(2) of this title. 
‘‘(D) The Secretary of Defense shall provide for at least 
one open enrollment period each year. During an open en-
rollment period, a member eligible under subparagraph (A) 
may enroll in the TRICARE program or change or termi-
nate an enrollment in the TRICARE program.
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‘‘(E) A member and the dependents of a member en-
rolled in the TRICARE program under this paragraph 
shall be entitled to the same benefits under this chapter as 
a member of the uniformed services on active duty or a de-
pendent of such a member, respectively. Section 1074(c) of 
this title shall apply with respect to a member enrolled in 
the TRICARE program under this section. 
‘‘(F)(i) An enlisted member of the armed forces en-
rolled in the TRICARE program under this section shall 
pay an annual premium of $330 for self-only coverage and 
$560 for self and family coverage for which enrolled under 
this section. 
‘‘(ii) An officer of the armed forces enrolled in the 
TRICARE program under this section shall pay an annual 
premium of $380 for self-only coverage and $610 for self 
and family coverage for which enrolled under this section. 
‘‘(iii) The premiums payable by a member under this 
subparagraph may be deducted and withheld from basic 
pay payable to the member under section 204 of title 37 
or from compensation payable to the member under section 
206 of such title. The Secretary shall prescribe the require-
ments and procedures applicable to the payment of pre-
miums by members not entitled to such basic pay or com-
pensation.
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‘‘(iv) Amounts collected as premiums under this sub-
paragraph shall be credited to the appropriation available 
for the Defense Health Program Account under section 1100 
of this title, shall be merged with sums in such Account 
that are available for the fiscal year in which collected, and 
shall be available under subparagraph (B) of such section 
for such fiscal year. 
‘‘(G) A person who receives health care pursuant to 
an enrollment in a TRICARE program option under this 
paragraph, including a member who receives such health 
care, shall be subject to the same deductibles, copayments, 
and other nonpremium charges for health care as apply 
under this chapter for health care provided under the same 
TRICARE program option to dependents described in sub-
paragraph (A), (D), or (I) of section 1072(2) of this title. 
‘‘(H) A member enrolled in the TRICARE program 
under this paragraph may terminate the enrollment only 
during an open enrollment period provided under subpara-
graph (D), except as provided in subparagraph (I). An en-
rollment of a member for self alone or for self and family 
under this paragraph shall terminate on the first day of 
the first month beginning after the date on which the mem-
ber ceases to be eligible under subparagraph (A). The enroll-
ment of a member under this paragraph may be terminated
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on the basis of failure to pay the premium charged the 
member under this paragraph. 
‘‘(I) A member may not enroll in the TRICARE pro-
gram under this paragraph while entitled to transitional 
health care under subsection (a) of section 1145 of this title 
or while authorized to receive health care under subsection 
(c) of such section. A member who enrolls in the TRICARE 
program under this paragraph within 90 days after the 
date of the termination of the member’s entitlement or eligi-
bility to receive health care under subsection (a) or (c) of 
section 1145 of this title may terminate the enrollment at 
any time within one year after the date of the enrollment. 
‘‘(J) The Secretary of Defense, in consultation with the 
other administering Secretaries, shall prescribe regulations 
for the administration of this paragraph. 
‘‘(4)(A) The Secretary concerned shall pay the applica-
ble premium to continue in force any qualified health bene-
fits plan coverage for an eligible reserve component member 
for the benefits coverage continuation period if timely elect-
ed by the member in accordance with regulations prescribed 
under subparagraph (J). 
‘‘(B) A member of a reserve component is eligible for 
payment of the applicable premium for continuation of 
qualified health benefits plan coverage under subparagraph 
(A) while serving on active duty pursuant to a call or order
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issued under a provision of law referred to in section 
101(a)(13)(B) of this title during a war or national emer-
gency declared by the President or Congress. 
‘‘(C) For the purposes of this paragraph, health bene-
fits plan coverage for a member called or ordered to active 
duty is qualified health benefits plan coverage if—
‘‘(i) the coverage was in force on the date on 
which the Secretary notified the member that issuance 
of the call or order was pending or, if no such notifi-
cation was provided, the date of the call or order; 
‘‘(ii) on such date, the coverage applied to the 
member and dependents of the member described in 
subparagraph (A), (D), or (I) of section 1072(2) of 
this title; and 
‘‘(iii) the coverage has not lapsed. 
‘‘(D) The applicable premium payable under this 
paragraph for continuation of health benefits plan coverage 
in the case of a member is the amount of the premium pay-
able by the member for the coverage of the member and de-
pendents. 
‘‘(E) The total amount that the Department of Defense 
may pay for the applicable premium of a health benefits 
plan for a member under this paragraph in a fiscal year 
may not exceed the amount determined by multiplying—
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‘‘(i) the sum of one plus the number of the mem-
ber’s dependents covered by the health benefits plan, 
by 
‘‘(ii) the per capita cost of providing TRICARE 
coverage and benefits for dependents under this chap-
ter for such fiscal year, as determined by the Sec-
retary of Defense. 
‘‘(F) The benefits coverage continuation period under 
this paragraph for qualified health benefits plan coverage 
in the case of a member called or ordered to active duty 
is the period that—
‘‘(i) begins on the date of the call or order; and 
‘‘(ii) ends on the earlier of the date on which the 
member’s eligibility for transitional health care under 
section 1145(a) of this title terminates under para-
graph (3) of such section, or the date on which the 
member elects to terminate the continued qualified 
health benefits plan coverage of the dependents of the 
member. 
‘‘(G) Notwithstanding any other provision of law—
‘‘(i) any period of coverage under a COBRA con-
tinuation provision (as defined in section 9832(d)(1) 
of the Internal Revenue Code of 1986) for a member 
under this paragraph shall be deemed to be equal to
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the benefits coverage continuation period for such 
member under this paragraph; and 
‘‘(ii) with respect to the election of any period of 
coverage under a COBRA continuation provision (as 
so defined), rules similar to the rules under section 
4980B(f)(5)(C) of such Code shall apply. 
‘‘(H) A dependent of a member who is eligible for bene-
fits under qualified health benefits plan coverage paid on 
behalf of a member by the Secretary concerned under this 
paragraph is not eligible for benefits under the TRICARE 
program during a period of the coverage for which so paid. 
‘‘(I) A member who makes an election under subpara-
graph (A) may revoke the election. Upon such a revocation, 
the member’s dependents shall become eligible for benefits 
under the TRICARE program as provided for under this 
chapter. 
‘‘(J) The Secretary of Defense shall prescribe regula-
tions for carrying out this paragraph. The regulations shall 
include such requirements for making an election of pay-
ment of applicable premiums as the Secretary considers ap-
propriate. 
‘‘(5) For the purposes of this section, all members of 
the Ready Reserve who are to be called or ordered to active 
duty include all members of the Ready Reserve.
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‘‘(6) The Secretary concerned shall promptly notify all 
members of the Ready Reserve that they are eligible for 
screening and care under this section. 
‘‘(7) A member provided medical or dental screening 
or care under paragraph (1) may not be charged for the 
screening or care.’’. 
SEC. 702. TRICARE BENEFICIARY COUNSELING AND AS-
SISTANCE 
COORDINATORS 
FOR 
RESERVE 
COMPONENT BENEFICIARIES. 
Section 1095e(a)(1) of title 10, United States Code, is 
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph (B): 
‘‘(B) designate for each of the TRICARE 
program regions at least one person (other than 
a person designated under subparagraph (A)) to 
serve full-time as a beneficiary counseling and 
assistance coordinator solely for members of the 
reserve components and their dependents who are 
beneficiaries under the TRICARE program; 
and’’.
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SEC. 703. EXTENSION OF AUTHORITY TO ENTER INTO PER-
SONAL SERVICES CONTRACTS FOR HEALTH 
CARE SERVICES TO BE PERFORMED AT LOCA-
TIONS OUTSIDE MEDICAL TREATMENT FA-
CILITIES. 
Section 1091(a)(2) of title 10, United States Code, is 
amended by striking ‘‘December 31, 2003’’ and inserting 
‘‘December 31, 2008’’. 
SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE 
RETIREE HEALTH CARE FUND VALUATIONS 
AND CONTRIBUTIONS. 
(a) SEPARATE PERIODIC ACTUARIAL VALUATION FOR 
SINGLE UNIFORMED SERVICE.—Section 1115(c) of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph: 
‘‘(6) The Secretary of Defense may determine a single 
level dollar amount under subparagraph (A) or (B) of para-
graph (1) for each or any of the participating uniformed 
services separately from the other participating uniformed 
services if the Secretary determines that a more accurate 
and appropriate actuarial valuation under such subpara-
graph would be achieved by doing so.’’. 
(b) ASSOCIATED CALCULATIONS OF PAYMENTS INTO 
THE FUND.—Section 1116 of such title is amended—
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(1) in subsection (a), by striking ‘‘the amount 
that’’ in the matter preceding paragraph (1) and in-
serting ‘‘the amount that, subject to subsection (b),’’; 
(2) by redesignating subsections (b) and (c) as 
subsections (c) and (d), respectively; and 
(3) by inserting after subsection (a) the following 
new subsection (b): 
‘‘(b) If an actuarial valuation referred to in paragraph 
(1) or (2) of subsection (a) has been calculated in a single 
level dollar amount for a participating uniformed service 
separately from the other participating uniformed services 
under section 1115(c)(6) of this title, the administering Sec-
retary for the department in which such uniformed service 
is operating shall calculate the amount under such para-
graph separately for such uniformed service. If the admin-
istering Secretary is not the Secretary of Defense, the ad-
ministering Secretary shall notify the Secretary of Defense 
of the amount so calculated. To determine a single amount 
for the purpose of paragraph (1) or (2) of subsection (a), 
as the case may be, the Secretary of Defense shall aggregate 
the amount calculated under this subsection for a uniformed 
service for the purpose of such paragraph with the amount 
or amounts calculated (whether separately or otherwise) for 
the other uniformed services for the purpose of such para-
graph.’’.
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(c) TECHNICAL CORRECTION.—Section 1115(c)(1)(B) 
of such title is amended by striking ‘‘and other than mem-
bers’’ and inserting ‘‘(other than members’’
(d) CONFORMING AMENDMENT.—Subsections (a) and 
(c)(5) of section 1115 of such title are amended by striking 
‘‘section 1116(b) of this title’’ and inserting section ‘‘1116(c) 
of this title’’. 
SEC. 705. SURVEYS ON CONTINUED VIABILITY OF TRICARE 
STANDARD. 
(a) REQUIREMENT FOR SURVEYS.—(1) The Secretary 
of Defense shall conduct surveys in the TRICARE Standard 
market areas in the continental United States to determine 
how many health care providers are accepting new patients 
under TRICARE Standard in each such market area. 
(2) The Secretary shall carry out the surveys in at 
least 20 TRICARE market areas in the continental United 
States each fiscal year after fiscal year 2003 until all such 
market areas in the continental United States have been 
surveyed. The Secretary shall complete six of the fiscal year 
2004 surveys not later than March 31, 2004. 
(3) In prioritizing the market areas for the sequence 
in which market areas are to be surveyed under this sub-
section, the Secretary shall consult with representatives of 
TRICARE beneficiaries and health care providers to iden-
tify locations where TRICARE Standard beneficiaries are
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experiencing significant levels of access-to-care problems 
under TRICARE Standard and shall give a high priority 
to surveying health care providers in such areas. 
(b) SUPERVISION.—(1) The Secretary shall designate 
a senior official of the Department of Defense to take the 
actions necessary for achieving and maintaining participa-
tion of health care providers in TRICARE Standard in 
each TRICARE market area in a number that is adequate 
to ensure the viability of TRICARE Standard for 
TRICARE beneficiaries in that market area. 
(2) The official designated under paragraph (1) shall 
have the following duties: 
(A) To educate health care providers about 
TRICARE Standard. 
(B) To encourage health care providers to accept 
patients under TRICARE Standard. 
(C) To ensure that TRICARE beneficiaries have 
the information necessary to locate TRICARE Stand-
ard providers readily. 
(D) To recommend adjustments in TRICARE 
Standard provider payment rates that the official 
considers necessary to ensure adequate availability of 
TRICARE Standard providers for TRICARE Stand-
ard beneficiaries.
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(c) GAO REVIEW.—(1) The Comptroller General shall, 
on an ongoing basis, review—
(A) the processes, procedures, and analysis used 
by the Department of Defense to determine the ade-
quacy of the number of health care providers accept-
ing TRICARE Standard beneficiaries as patients 
under TRICARE Standard in each TRICARE mar-
ket area; and 
(B) the actions taken by the Department of De-
fense to ensure ready access of TRICARE Standard 
beneficiaries to health care under TRICARE Stand-
ard in each TRICARE market area. 
(2)(A) The Comptroller General shall submit to the 
Committees on Armed Services of the Senate and the House 
of Representatives a semiannual report on the results of the 
review under paragraph (1). The first semiannual report 
shall be submitted not later than June 30, 2004. 
(B) The semiannual report under subparagraph (A) 
shall include the following: 
(i) An analysis of the adequacy of the surveys 
under subsection (a). 
(ii) The adequacy of existing statutory authority 
to address inadequate levels of participation by health 
care providers in TRICARE Standard.
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(iii) Identification of policy-based obstacles to 
achieving adequacy of availability of TRICARE 
Standard health care in the TRICARE Standard 
market areas. 
(iv) An assessment of the adequacy of Depart-
ment of Defense education programs to inform health 
care providers about TRICARE Standard. 
(v) An assessment of the adequacy of Department 
of Defense initiatives to encourage health care pro-
viders to accept patients under TRICARE Standard. 
(vi) An assessment of the adequacy of informa-
tion to TRICARE Standard beneficiaries to facilitate 
access by such beneficiaries to health care under 
TRICARE Standard. 
(vii) Any need for adjustment of health care pro-
vider payment rates to attract participation in 
TRICARE Standard by appropriate numbers of 
health care providers. 
(d) 
DEFINITION.—In 
this 
section, 
the 
term 
‘‘TRICARE Standard’’ means the option of the TRICARE 
program that is also known as the Civilian Health and 
Medical Program of the Uniformed Services, as defined in 
section 1072(4) of title 10, United States Code.
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SEC. 706. ELIMINATION 
OF 
LIMITATION 
ON 
COVERED 
BENEFICIARIES’ 
ELIGIBILITY 
TO 
RECEIVE 
HEALTH CARE SERVICES FROM FORMER PUB-
LIC HEALTH SERVICE TREATMENT FACILI-
TIES. 
Section 724(d) of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 
1073 note) is amended by striking ‘‘who—’’ and all that 
follows through ‘‘(2) are enrolled’’ and inserting ‘‘who are 
enrolled’’. 
SEC. 707. MODIFICATION OF STRUCTURE AND DUTIES OF 
DEPARTMENT 
OF 
VETERANS 
AFFAIRS-DE-
PARTMENT OF DEFENSE HEALTH EXECUTIVE 
COMMITTEE. 
(a) IN GENERAL.—Subsection (c) of section 8111 of 
title 38, United States Code, is amended to read as follows: 
‘‘(c) DOD–VA JOINT EXECUTIVE COMMITTEE.—(1) 
There is established an interagency committee to be known 
as the Department of Veterans Affairs-Department of De-
fense Joint Executive Committee (hereinafter in this section 
referred to as the ‘Committee’). 
‘‘(2) The Committee shall be composed of—
‘‘(A) the Deputy Secretary of Veterans Affairs 
and such other officers and employees of the Depart-
ment as the Secretary may designate; and
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‘‘(B) the Under Secretary of Defense for Per-
sonnel and Readiness and such other officers and em-
ployees of the Department of Defense as the Secretary 
of Defense may designate. 
‘‘(3)(A) The Deputy Secretary and the Under Sec-
retary shall determine the size and structure of the Com-
mittee, except that the Committee shall have subordinate 
committees as follows: 
‘‘(i) A Health Executive Committee. 
‘‘(ii) A Benefits Executive Committee. 
‘‘(iii) Such other subordinate committees as the 
Deputy Secretary and the Under Secretary consider 
appropriate. 
‘‘(B) The Deputy Secretary and the Under Secretary 
shall establish the administrative and procedural guidelines 
for the operation of the Committee. 
‘‘(C) The two Departments shall supply staff and re-
sources to the Committee in order to provide such adminis-
trative support and services for the Committee as are nec-
essary for the efficient operation of the Committee. 
‘‘(4) The Committee shall recommend to the Secretaries 
strategic direction for the joint coordination and sharing 
of efforts between and within the two Departments under 
this section, and shall oversee implementation of such co-
ordination and efforts.
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‘‘(5) In order to enable the Committee to make rec-
ommendations under paragraph (4) in its annual report 
under paragraph (6), the Committee shall—
‘‘(A) review existing policies, procedures, and 
practices relating to the coordination and sharing of 
health care resources and other resources between the 
two Departments; 
‘‘(B) identify changes in policies, procedures, 
and practices that, in the judgment of the Committee, 
would promote mutually beneficial coordination, use, 
or exchange of use of services and health care re-
sources and other resources of the two Departments in 
order to achieve the goal of improving the quality, ef-
ficiency, and effectiveness of the delivery of benefits 
and services to veterans, members of the Armed 
Forces, military retirees, and their families through 
an enhanced partnership between the two Depart-
ments; 
‘‘(C) identify and assess further opportunities for 
coordination and collaboration between the two De-
partments that, in the judgment of the Committee, 
would not adversely affect the range of services, the 
quality of care, or the established priorities for bene-
fits provided by either Department;
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‘‘(D) review the plans of both agencies for the ac-
quisition of additional health care resources and other 
resources, especially new facilities and major equip-
ment and technology, in order to assess the potential 
effect of such plans on further opportunities for the 
coordination and sharing of such resources; and 
‘‘(E) review the implementation of activities de-
signed to promote the coordination and sharing of 
health care resources and other resources between the 
two Departments. 
‘‘(6) The Committee shall submit to the Secretaries, 
and to Congress, each year a report containing such rec-
ommendations as the Committee considers appropriate, in-
cluding recommendations in light of activities under para-
graph (5).’’. 
(b) CONFORMING AMENDMENT.—Subsection (e)(1) of 
such section is amended by striking ‘‘subsection (c)(2)’’ and 
inserting ‘‘subsection (c)(4)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on October 1, 2003, as if included 
in the amendments to section 8111 of title 38, United States 
Code, made by section 721 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Public Law 
107–314; 116 Stat. 2589), to which the amendments made 
by this section relate.
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(d) INTEGRATED HEALING CARE PRACTICES.—(1) 
The Secretary of Defense and the Secretary of Veterans Af-
fairs may, acting through the Department of Veterans Af-
fairs-Department of Defense Joint Executive Committee, 
conduct a program to develop and evaluate integrated heal-
ing care practices for members of the Armed Forces and 
veterans. 
(2) Amounts authorized to be appropriated by section 
301(21) for the Defense Health Program may be available 
for the program under paragraph (1). 
SEC. 708. ELIGIBILITY 
OF 
RESERVE 
OFFICERS 
FOR 
HEALTH CARE PENDING ORDERS TO ACTIVE 
DUTY FOLLOWING COMMISSIONING. 
Section 1074(a) of title 10, United States Code, is 
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; 
(2) by striking ‘‘who is on active duty’’ and in-
serting ‘‘described in paragraph (2)’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(2) Members of the uniformed services referred to in 
paragraph (1) are as follows: 
‘‘(A) A member of a uniformed service on active 
duty.
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‘‘(B) A member of a reserve component of a uni-
formed service who has been commissioned as an offi-
cer if—
‘‘(i) the member has requested orders to ac-
tive duty for the member’s initial period of ac-
tive duty following the commissioning of the 
member as an officer; 
‘‘(ii) the request for orders has been ap-
proved; 
‘‘(iii) the orders are to be issued but have 
not been issued; and 
‘‘(iv) the member does not have health care 
insurance and is not covered by any other health 
benefits plan.’’. 
SEC. 709. REIMBURSEMENT OF COVERED BENEFICIARIES 
FOR CERTAIN TRAVEL EXPENSES RELATING 
TO SPECIALIZED DENTAL CARE. 
Section 1074i of title 10, United States Code, is 
amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘In 
any case’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) SPECIALTY CARE PROVIDERS.—For purposes of 
subsection (a), the term ‘specialty care provider’ includes
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a dental specialist (including an oral surgeon, orthodontist, 
prosthodontist, periodontist, endodontist, or pediatric den-
tist).’’. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. TEMPORARY EMERGENCY PROCUREMENT AU-
THORITY TO FACILITATE DEFENSE AGAINST 
OR RECOVERY FROM TERRORISM OR NU-
CLEAR, BIOLOGICAL, CHEMICAL, OR RADIO-
LOGICAL ATTACK. 
(a) EXTENSION OF AUTHORITY.—Section 836(a) of the 
National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107–107; 115 Stat. 1192; 10 U.S.C. 2302 note) 
is amended by striking ‘‘fiscal year 2002 and 2003’’ and 
inserting ‘‘fiscal years 2002, 2003, 2004, and 2005’’. 
(b) EXPANDED SCOPE.—Such section 836(a) is further 
amended—
(1) in paragraph (1), by striking ‘‘the defense 
against terrorism or biological or chemical attack’’ 
and inserting ‘‘defense against or recovery from ter-
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rorism or nuclear, biological, chemical, or radiological 
attack’’; and 
(2) in paragraph (2), by striking ‘‘the defense 
against terrorism or biological attack’’ and inserting 
‘‘defense against or recovery from terrorism or nu-
clear, biological, chemical, or radiological attack’’. 
(c) CONFORMING AMENDMENT.—The heading for such 
section is amended to read as follows: 
‘‘SEC. 836. TEMPORARY EMERGENCY PROCUREMENT AU-
THORITY TO FACILITATE DEFENSE AGAINST 
OR RECOVERY FROM TERRORISM OR NU-
CLEAR, BIOLOGICAL, CHEMICAL, OR RADIO-
LOGICAL ATTACK.’’
SEC. 802. SPECIAL TEMPORARY CONTRACT CLOSEOUT AU-
THORITY. 
(a) AUTHORITY.—The Secretary of Defense may settle 
any financial account for a contract entered into by the 
Secretary or the Secretary of a military department before 
October 1, 1996, that is administratively complete if the 
financial account has an unreconciled balance, either posi-
tive or negative, that is less than $100,000. 
(b) FINALITY OF DECISION.—A settlement under this 
section shall be final and conclusive upon the accounting 
officers of the United States.
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(c) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations for the administration of the authority 
under this section. 
(d) TERMINATION OF AUTHORITY.—A financial ac-
count may not be settled under this section after September 
30, 2006. 
SEC. 803. DEFENSE ACQUISITION PROGRAM MANAGEMENT 
FOR USE OF RADIO FREQUENCY SPECTRUM. 
(a) REVISION OF DEPARTMENT OF DEFENSE DIREC-
TIVE.—Not later than one year after the date of the enact-
ment of this Act, the Secretary of Defense shall revise and 
reissue Department of Defense Directive 4650.1, relating to 
management and use of the radio frequency spectrum, last 
issued on June 24, 1987, to update the procedures applica-
ble to Department of Defense management and use of the 
radio frequency spectrum. 
(b) ACQUISITION
PROGRAM
REQUIREMENTS.—The 
Secretary of Defense shall—
(1) require that each military department or De-
fense Agency carrying out a program for the acquisi-
tion of a system that is to use the radio frequency 
spectrum consult with the official or board designated 
under subsection (c) on the usage of the spectrum by 
the system as early as practicable during the concept
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exploration and technology development phases of the 
acquisition program; 
(2) prohibit the program from proceeding into 
system development and demonstration, or otherwise 
obtaining production or procuring any unit of the 
system, until—
(A) an evaluation of the proposed radio fre-
quency spectrum usage by the system is com-
pleted in accordance with requirements pre-
scribed by the Secretary; and 
(B) the designated official or board reviews 
and approves the proposed usage of the spectrum 
by the system; and 
(3) prescribe a procedure for waiving the prohi-
bition imposed under paragraph (2) in any case in 
which it is determined necessary to do so in the na-
tional security interests of the United States. 
(c) DESIGNATION OF OFFICIAL OR BOARD.—The Sec-
retary of Defense shall designate an appropriate official or 
board of the Department of Defense to perform the functions 
described for the official or board in subsection (b). 
SEC. 804. NATIONAL SECURITY AGENCY MODERNIZATION 
PROGRAM. 
(a) RESPONSIBILITIES OF UNDER SECRETARY OF DE-
FENSE FOR ACQUISITION, TECHNOLOGY, AND LOGISTICS.—
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The Secretary of Defense, acting through the Under Sec-
retary of Defense for Acquisition, Technology, and Logistics, 
shall—
(1) direct and manage the acquisitions under the 
National Security Agency Modernization Program; 
and 
(2) designate the projects under such program as 
major defense acquisition programs. 
(b) PROJECTS COMPRISING PROGRAM.—The National 
Security Agency Modernization Program includes the fol-
lowing projects of the National Security Agency: 
(1) The Trailblazer project. 
(2) The Groundbreaker project. 
(3) Each cryptological mission management 
project. 
(4) Each other project that—
(A) meets either of the dollar threshold re-
quirements set forth in subsection (a)(2) of sec-
tion 2430 of title 10, United States Code (as ad-
justed under subsection (b) of such section); and 
(B) is determined by the Under Secretary of 
Defense for Acquisition, Technology, and Logis-
tics as being a modernization project of the Na-
tional Security Agency.
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(c) MILESTONE DECISION AUTHORITY.—(1) In the ad-
ministration of subsection (a), the Under Secretary of De-
fense for Acquisition, Technology, and Logistics shall exer-
cise the milestone decision authority for—
(A) each major defense acquisition program 
under the National Security Agency Modernization 
Program, as designated under subsection (a)(2); and 
(B) the acquisition of each major system under 
the National Security Agency Modernization Pro-
gram, as described in subsection (d). 
(2) The Under Secretary may not delegate the mile-
stone decision authority to any other official before October 
1, 2006. 
(3) The Under Secretary may delegate the milestone 
decision authority to the Director of the National Security 
Agency at any time after the later of September 30, 2006, 
or the date on which the following conditions are satisfied: 
(A) The Under Secretary has determined that the 
Director has implemented acquisition management 
policies, procedures, and practices that are suffi-
ciently mature to ensure that National Security 
Agency acquisitions are conducted in a manner con-
sistent with a sound, efficient acquisition enterprise. 
(B) The Under Secretary has consulted with the 
Under Secretary of Defense for Intelligence and the
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Deputy Director of Central Intelligence for Commu-
nity Management on the delegation. 
(C) The Secretary of Defense has approved the 
delegation. 
(D) The Under Secretary has transmitted to the 
Committees on Armed Services of the Senate and the 
House of Representatives, the Select Committee on In-
telligence of the Senate, and the Permanent Select 
Committee on Intelligence of the House of Representa-
tives a notification of the intention to delegate the au-
thority, together with a detailed discussion of the jus-
tification for the delegation of authority. 
(d) MAJOR SYSTEM DEFINED.—In this section, the 
term ‘‘major system’’ means a system that meets either of 
the dollar threshold requirements set forth in paragraph (1) 
or (2) of subsection (a) of section 2302d of title 10, United 
States Code (as adjusted under subsection (c) of such sec-
tion). 
SEC. 805. QUALITY CONTROL IN PROCUREMENT OF AVIA-
TION CRITICAL SAFETY ITEMS AND RELATED 
SERVICES. 
(a) QUALITY CONTROL POLICY.—The Secretary of De-
fense shall prescribe a quality control policy for the procure-
ment of aviation critical safety items and the procurement 
of modifications, repair, and overhaul of such items.
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(b) CONTENT OF POLICY.—The policy shall include the 
following requirements: 
(1) That the head of the design control activity 
for aviation critical safety items establish processes to 
identify and manage aviation critical safety items 
and modifications, repair, and overhaul of such items. 
(2) That the head of the contracting activity for 
an aviation critical safety item enter into a contract 
for such item only with a source approved by the de-
sign control activity in accordance with section 2319 
of title 10, United States Code. 
(3) That the aviation critical safety items deliv-
ered, and the services performed with respect to avia-
tion critical safety items, meet all technical and qual-
ity requirements specified by the design control activ-
ity, except for any requirement determined unneces-
sary by the Secretary of Defense in writing. 
(c) DEFINITIONS.—In this section, the terms ‘‘aviation 
critical safety item’’ and ‘‘design control activity’’ have the 
meanings given such terms in section 2319(g) of title 10, 
United States Code, as amended by subsection (d). 
(d) CONFORMING AMENDMENT TO TITLE 10.—Section 
2319 of title 10, United States Code, is amended—
(1) in subsection (c)(3), by inserting after ‘‘the 
contracting officer’’ the following: ‘‘(or, in the case of
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a contract for the procurement of an aviation critical 
item, the head of the design control activity for such 
item)’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘aviation critical safety item’ 
means a part, an assembly, installation equipment, 
launch equipment, recovery equipment, or support 
equipment for an aircraft or aviation weapon system 
if the part, assembly, or equipment contains a char-
acteristic any failure, malfunction, or absence of 
which could cause a catastrophic or critical failure 
resulting in the loss of or serious damage to the air-
craft or weapon system, an unacceptable risk of per-
sonal injury or loss of life, an uncommanded engine 
shutdown that jeopardizes safety, or the failure of a 
military mission. 
‘‘(2) The term ‘design control activity’, with re-
spect to an aviation critical safety item, means the 
systems command of a military department that is 
specifically responsible for ensuring the airworthiness 
of an aviation system or equipment in which the item 
is to be used.’’.
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Subtitle B—Procurement of Services 
SEC. 811. EXPANSION AND EXTENSION OF INCENTIVE FOR 
USE OF PERFORMANCE-BASED CONTRACTS 
IN PROCUREMENTS OF SERVICES. 
(a) INCREASED MAXIMUM AMOUNT OF PROCUREMENT 
ELIGIBLE FOR COMMERCIAL ITEMS TREATMENT.—Para-
graph (1)(A) of section 821(b) of the Floyd D. Spence Na-
tional Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106–398; 114 Stat. 1654A–
218; 10 U.S.C. 2302 note) is amended by striking 
‘‘$5,000,000’’ and inserting ‘$10,000,000’’. 
(b) EXTENSION OF AUTHORITY.—Paragraph (4) of 
such section 821(b) is amended by striking ‘‘more than 3 
years after the date of the enactment of this Act’’ and insert-
ing ‘‘after October 30, 2006’’. 
SEC. 812. PUBLIC-PRIVATE COMPETITIONS FOR THE PER-
FORMANCE OF DEPARTMENT OF DEFENSE 
FUNCTIONS. 
(a) PILOT PROGRAM FOR BEST VALUE SOURCE SE-
LECTION FOR THE PERFORMANCE OF INFORMATION TECH-
NOLOGY SERVICES.—
(1) AUTHORITY.—The Secretary of Defense may 
carry out a pilot program for use of a best value cri-
terion in the selection of sources for performance of
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information technology services for the Department of 
Defense. 
(2) CONVERSION TO PRIVATE SECTOR PERFORM-
ANCE.—(A) Under the pilot program, an analysis of 
the performance of an information technology services 
function for the Department of Defense under section 
2461(b)(3) of title 10, United States Code, shall in-
clude an examination of the performance of the func-
tion by Department of Defense civilian employees and 
by one or more private contractors to demonstrate 
whether change to performance by the private sector 
will result in the best value to the Government over 
the life of the contract, including in the examination 
the following: 
(i) The cost to the Government, estimated by 
the Secretary of Defense (based on offers re-
ceived), for performance of the function by the 
private sector. 
(ii) The estimated cost to the Government of 
Department of Defense civilian employees per-
forming the function. 
(iii) Benefits in addition to price that war-
rant performance of the function by a particular 
source at a cost higher than that of performance 
by Department of Defense civilian employees.
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(iv) In addition to the cost referred to in 
clause (i), an estimate of all other costs and ex-
penditures that the Government would incur be-
cause of the award of such a contract. 
(B) Under the pilot program, subparagraph (A) 
of such section 2461(b)(3) shall not apply to an anal-
ysis of the performance of an information technology 
services function for the Department of Defense. 
(3) CONTRACTING
FOR
INFORMATION
TECH-
NOLOGY SERVICES.—(A) Under the pilot program, ex-
cept as otherwise provided by law, the Secretary shall 
procure information technology services necessary for 
or beneficial to the accomplishment of the authorized 
functions of the Department of Defense (other than 
functions which the Secretary of Defense determines 
must be performed by military or Government per-
sonnel) from a source in the private sector if perform-
ance by that source represents the best value to the 
United States, determined in accordance with the 
competition requirements of Office of Management 
and Budget Circular A–76. 
(B) Under the pilot program, section 2462(a) of 
title 10, United States Code, shall not apply to a pro-
curement described in paragraph (1).
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(4) DURATION OF PILOT PROGRAM.—(A) The pe-
riod for which the pilot program may be carried out 
under this subsection shall be fiscal years 2004 
through 2008. 
(B) An analysis commenced under the pilot pro-
gram in accordance with paragraph (2), and a pro-
curement for which a solicitation has been issued in 
accordance with paragraph (3), before the end of the 
pilot program period may be continued in accordance 
with paragraph (2) or (3), respectively, after the end 
of such period. 
(5) GAO REVIEW.—(A) The Comptroller General 
shall review the administration of any pilot program 
carried out under this subsection to assess the extent 
to which the program is effective and is equitable for 
the potential public sources and the potential private 
sources of information technology services for the De-
partment of Defense. 
(B) Not later than February 1, 2008, the Comp-
troller General shall submit to the congressional de-
fense committees a report on the review of the pro-
gram under subparagraph (A). The report shall in-
clude the Comptroller General’s assessment of the 
matters required under that subparagraph and any 
other conclusions resulting from the review.
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(6) INFORMATION
TECHNOLOGY
SERVICES
DE-
FINED.—In this subsection, the term ‘‘information 
technology service’’ means any service performed in 
the operation or maintenance of information tech-
nology (as defined in section 11101 of title 40, United 
States Code). 
(b) RESOURCES-BASED SCHEDULES FOR COMPLETION 
OF PUBLIC-PRIVATE COMPETITIONS.—
(1) APPLICATION OF TIMEFRAMES.—Any interim 
or final deadline or other schedule-related milestone 
for the completion of a Department of Defense public-
private competition shall be established solely on the 
basis of considered research and sound analysis re-
garding the availability of sufficient personnel, train-
ing, and technical resources to the Department of De-
fense to carry out such competition in a timely man-
ner. 
(2) EXTENSION OF TIMEFRAMES.—Any interim 
or final deadline or other schedule-related milestone 
established (consistent with paragraph (1)) for the 
completion of a Department of Defense public-private 
competition shall be extended if the Department of 
Defense official responsible for managing the competi-
tion determines under procedures prescribed by the 
Secretary of Defense that the personnel, training, or
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technical resources available to the Department of De-
fense to carry out such competition timely are insuffi-
cient. 
SEC. 813. AUTHORITY TO ENTER INTO PERSONAL SERV-
ICES CONTRACTS. 
(a) AUTHORITY.—Chapter 141 of title 10, United 
States Code, is amended by inserting after section 2396 the 
following new section: 
‘‘§ 2397. Personal services: procurement by certain 
elements of the Department of Defense 
‘‘(a) AUTHORITY.—The head of an element of the De-
partment of Defense referred to in subsection (b) may enter 
into a contract for the procurement of services described in 
section 3109 of title 5 that are necessary to carry out a 
mission of that element without regard to the limitations 
in such section if the head of that element determines in 
writing that the services to be procured are unique and that 
it would not be practicable to obtain such services by other 
means. 
‘‘(b) APPLICABILITY.—Subsection (a) applies to—
‘‘(1) any element of the Department of Defense 
within the intelligence community, as defined in sec-
tion 3(4) of the National Security Act of 1947 (50 
U.S.C. 401a(4)); and
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‘‘(2) the United States Special Operations Com-
mand, with respect to special operations activities de-
scribed in paragraphs (1), (2), (3), and (4) of section 
167(j) of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 2396 the following new item:
‘‘2397. Personal services: procurement by certain elements of the Department of 
Defense.’’.
Subtitle C—Major Defense 
Acquisition Programs 
SEC. 821. CERTAIN 
WEAPONS-RELATED 
PROTOTYPE 
PROJECTS. 
(a) EXTENSION OF AUTHORITY.—Subsection (g) of sec-
tion 845 of the National Defense Authorization Act for Fis-
cal Year 1994 (10 U.S.C. 2371 note) is amended by striking 
‘‘September 30, 2004’’ and inserting ‘‘September 30, 2007’’. 
(b) INCREASED SCOPE OF AUTHORITY.—Subsection 
(a) of such section is amended by inserting before the period 
at the end the following: ‘‘, or to improvement of weapons 
or weapon systems in use by the Armed Forces’’. 
(c) PILOT PROGRAM FOR TRANSITION TO FOLLOW-ON 
CONTRACTS.—Such section, as amended by subsection (a), 
is further amended—
(1) by redesignating subsections (e), (f), and (g) 
as subsections (f), (g), and (h), respectively; and
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(2) by inserting after subsection (d) the following 
new subsection (e): 
‘‘(e) PILOT PROGRAM FOR TRANSITION TO FOLLOW-
ON CONTRACTS.—(1) The Secretary of Defense is authorized 
to carry out a pilot program for follow-on contracting for 
the production of items or processes that are developed by 
nontraditional defense contractors under prototype projects 
carried out under this section. 
‘‘(2) Under the pilot program—
‘‘(A) a qualifying contract for the procurement of 
such an item or process, or a qualifying subcontract 
under a contract for the procurement of such an item 
or process, may be treated as a contract or sub-
contract, respectively, for the procurement of commer-
cial items, as defined in section 4(12) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 403(12)); 
and 
‘‘(B) the item or process may be treated as an 
item or process, respectively, that is developed in part 
with Federal funds and in part at private expense for 
the purposes of section 2320 of title 10, United States 
Code. 
‘‘(3) For the purposes of the pilot program, a quali-
fying contract or subcontract is a contract or subcontract,
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respectively, with a nontraditional defense contractor 
that—
‘‘(A) does not exceed $50,000,000; and 
‘‘(B) is either—
‘‘(i) a firm, fixed-price contract or sub-
contract; or 
‘‘(ii) a fixed-price contract or subcontract 
with economic price adjustment. 
‘‘(4) The authority to conduct a pilot program under 
this subsection shall terminate on September 30, 2007. The 
termination of the authority shall not affect the validity 
of contracts or subcontracts that are awarded or modified 
during the period of the pilot program, without regard to 
whether the contracts or subcontracts are performed during 
the period.’’. 
SEC. 822. APPLICABILITY OF CLINGER-COHEN ACT POLI-
CIES AND REQUIREMENTS TO EQUIPMENT IN-
TEGRAL TO A WEAPON OR WEAPON SYSTEM. 
(a) IN GENERAL.—(1) Chapter 131 of title 10, United 
States Code, is amended by inserting after section 2223 the 
following:
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‘‘§ 2223a. Acquisition of equipment integral to a 
weapon or a weapon system: applicability 
of certain acquisition reform authorities 
and information technology-related re-
quirements 
‘‘(a) BOARD OF SENIOR ACQUISITION OFFICIALS.—(1) 
The Secretary of Defense shall establish a board of senior 
acquisition officials to administer the implementation of the 
policies and requirements of chapter 113 of title 40 in pro-
curements of information technology equipment determined 
by the Secretary as being an integral part of a weapon or 
a weapon system. 
‘‘(2) The Board shall be composed of the following offi-
cials: 
‘‘(A) Under Secretary of Defense for Acquisition, 
Technology, and Logistics, who shall be the Chair-
man. 
‘‘(B) The acquisition executive of each of the 
military departments. 
‘‘(C) The Chief Information Officer of the De-
partment of Defense. 
‘‘(c) RESPONSIBILITIES OF BOARD.—The Board shall 
be responsible for ensuring that—
‘‘(1) the acquisition of information technology 
equipment determined by the Secretary of Defense as 
being an integral part of a weapon or a weapon sys-
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tem is conducted in a manner that is consistent with 
the capital planning, investment control, and per-
formance and results-based management processes and 
requirements provided under sections 11302, 11303, 
11312, and 11313 of title 40, to the extent that such 
processes requirements are applicable to the acquisi-
tion of such equipment; 
‘‘(2) issues of spectrum availability, interoper-
ability, and information security are appropriately 
addressed in the development of weapons and weapon 
systems; and 
‘‘(3) in the case of information technology equip-
ment that is to be incorporated into a weapon or a 
weapon system under a major defense acquisition 
program, the information technology equipment is in-
corporated in a manner that is consistent with—
‘‘(A) the planned approach to applying cer-
tain provisions of law to major defense acquisi-
tion programs following the evolutionary acqui-
sition process that the Secretary of Defense re-
ported to Congress under section 802 of the Bob 
Stump National Defense Authorization Act for 
Fiscal Year 2003 (Public Law 107–314; 116 
Stat. 2602);
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‘‘(B) the acquisition policies that apply to 
spiral development programs under section 803 
of such Act (116 Stat. 2603; 10 U.S.C. 2430 
note); and 
‘‘(C) the software acquisition processes of 
the military department or Defense Agency con-
cerned under section 804 of such Act (116 Stat. 
2604; 10 U.S.C. 2430 note). 
‘‘(d) INAPPLICABILITY
OF OTHER LAWS.—The fol-
lowing provisions of law do not apply to information tech-
nology equipment that is determined by the Secretary of 
Defense as being an integral part of a weapon or a weapon 
system: 
‘‘(1) Section 11315 of title 40. 
‘‘(2) The policies and procedures established 
under section 11316 of title 40. 
‘‘(3) Subsections (d) and (e) of section 811 of the 
Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public 
Law 106–398; 114 Stat. 1654A–211), and the re-
quirements and prohibitions that are imposed by De-
partment of Defense Directive 5000.1 pursuant to 
subsections (b) and (c) of such section.
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‘‘(4) Section 351 of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Public 
Law 107–314; 116 Stat. 2516; 10 U.S.C. 221 note). 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘acquisition executive’, with re-
spect to a military department, means the official 
who is designated as the senior procurement executive 
of the military department under section 16(3) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)). 
‘‘(2) The term ‘information technology’ has the 
meaning given such term in section 11101 of title 40. 
‘‘(3) The term ‘major defense acquisition pro-
gram’ has the meaning given such term in section 
2430 of this title.’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2223 the following new item:
‘‘2223a. Acquisition of equipment integral to a weapon or a weapon system: ap-
plicability of certain acquisition reform authorities and infor-
mation technology-related requirements.’’.
(b) CONFORMING AMENDMENT.—Section 2223 of such 
title is amended by adding at the end the following new 
subsection: 
‘‘(c) EQUIPMENT INTEGRAL TO A WEAPON OR WEAPON 
SYSTEM.—(1) In the case of information technology equip-
ment determined by the Secretary of Defense as being an
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integral part of a weapon or a weapon system, the respon-
sibilities under this section shall be performed by the board 
of senior acquisition officials established pursuant to section 
2223a of this title. 
‘‘(2) In this subsection, the term ‘information tech-
nology’ has the meaning given such term in section 11101 
of title 40.’’. 
SEC. 823. APPLICABILITY OF REQUIREMENT FOR REPORTS 
ON MATURITY OF TECHNOLOGY AT INITI-
ATION OF MAJOR DEFENSE ACQUISITION 
PROGRAMS. 
Section 804(a) of the National Defense Authorization 
Act for Fiscal Year 2003 (Public Law 107–107; 115 Stat. 
1180) is amended by striking ‘‘, as in effect on the date 
of enactment of this Act,’’ and inserting ‘‘(as in effect on 
the date of the enactment of this Act), and the corresponding 
provision of any successor to such Instruction,’’. 
Subtitle D—Domestic Source 
Requirements 
SEC. 831. EXCEPTIONS TO BERRY AMENDMENT FOR CON-
TINGENCY OPERATIONS AND OTHER URGENT 
SITUATIONS. 
Section 2533a(d) of title 10, United States Code, is 
amended—
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(1) in paragraph (1), by inserting ‘‘or contin-
gency operations’’ after ‘‘in support of combat oper-
ations’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(4) Procurements for which the use of proce-
dures other than competitive procedures has been ap-
proved on the basis of section 2304(c)(2) of this title, 
relating to unusual and compelling urgency of need.’’. 
SEC. 832. INAPPLICABILITY OF BERRY AMENDMENT TO 
PROCUREMENTS OF WASTE AND BYPROD-
UCTS OF COTTON AND WOOL FIBER FOR USE 
IN THE PRODUCTION OF PROPELLANTS AND 
EXPLOSIVES. 
Section 2533a(f) of title 10, United States Code, is 
amended—
(1) by striking ‘‘(f) EXCEPTION’’ and all that fol-
lows through ‘‘the procurement of’’ and inserting the 
following: 
‘‘(f) EXCEPTIONS FOR CERTAIN OTHER COMMODITIES 
AND ITEMS.—Subsection (a) does not preclude the procure-
ment of the following: 
‘‘(1)’’; 
(2) by capitalizing the initial letter of the word 
following ‘‘(1)’’, as added by paragraph (1); and
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(3) by adding at the end the following new para-
graph: 
‘‘(2) Waste and byproducts of cotton and wool 
fiber for use in the production of propellants and ex-
plosives.’’. 
SEC. 833. WAIVER AUTHORITY FOR DOMESTIC SOURCE OR 
CONTENT REQUIREMENTS. 
(a) AUTHORITY.—Subchapter V of chapter 148 of title 
10, United States Code, is amended by adding at the end 
the following new section: 
‘‘§ 2539c. Waiver of domestic source or content re-
quirements 
‘‘(a) AUTHORITY.—Except as provided in subsection 
(f), the Secretary of Defense may waive the application of 
any domestic source requirement or domestic content re-
quirement referred to in subsection (b) and thereby author-
ize the procurement of items that are grown, reprocessed, 
reused, produced, or manufactured—
‘‘(1) in a foreign country that has a Declaration 
of Principles with the United States; 
‘‘(2) in a foreign country that has a Declaration 
of Principles with the United States substantially 
from components and materials grown, reprocessed, 
reused, produced, or manufactured in the United
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States or any foreign country that has a Declaration 
of Principles with the United States; or 
‘‘(3) in the United States substantially from 
components and materials grown, reprocessed, reused, 
produced, or manufactured in the United States or 
any foreign country that has a Declaration of Prin-
ciples with the United States. 
‘‘(b) COVERED REQUIREMENTS.—For purposes of this 
section: 
‘‘(1) A domestic source requirement is any re-
quirement under law that the Department of Defense 
satisfy its requirements for an item by procuring an 
item that is grown, reprocessed, reused, produced, or 
manufactured in the United States or by a manufac-
turer that is a part of the national technology and in-
dustrial base (as defined in section 2500(1) of this 
title). 
‘‘(2) A domestic content requirement is any re-
quirement under law that the Department of Defense 
satisfy its requirements for an item by procuring an 
item produced or manufactured partly or wholly from 
components and materials grown, reprocessed, reused, 
produced, or manufactured in the United States. 
‘‘(c) APPLICABILITY.—The authority of the Secretary 
to waive the application of a domestic source or content
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requirements under subsection (a) applies to the procure-
ment of items for which the Secretary of Defense determines 
that—
‘‘(1) application of the requirement would im-
pede the reciprocal procurement of defense items 
under a Declaration of Principles with the United 
States; and 
‘‘(2) such country does not discriminate against 
defense items produced in the United States to a 
greater degree than the United States discriminates 
against defense items produced in that country. 
‘‘(d) LIMITATION ON DELEGATION.—The authority of 
the Secretary to waive the application of domestic source 
or content requirements under subsection (a) may not be 
delegated to any officer or employee other than the Under 
Secretary of Defense for Acquisition, Technology and Logis-
tics. 
‘‘(e) CONSULTATIONS.—The Secretary may grant a 
waiver of the application of a domestic source or content 
requirement under subsection (a) only after consultation 
with the United States Trade Representative, the Secretary 
of Commerce, and the Secretary of State. 
‘‘(f) LAWS NOT WAIVABLE.—The Secretary of Defense 
may not exercise the authority under subsection (a) to
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waive any domestic source or content requirement con-
tained in any of the following laws: 
‘‘(1) The Small Business Act (15 U.S.C. 631 et 
seq.). 
‘‘(2) The Javits-Wagner-O’Day Act (41 U.S.C. 
46 et seq.). 
‘‘(3) Sections 7309 and 7310 of this title. 
‘‘(4) Section 2533a of this title. 
‘‘(g) RELATIONSHIP
TO OTHER WAIVER AUTHOR-
ITY.—The authority under subsection (a) to waive a domes-
tic source requirement or domestic content requirement is 
in addition to any other authority to waive such require-
ment. 
‘‘(h) CONSTRUCTION WITH RESPECT TO LATER EN-
ACTED LAWS.—This section may not be construed as being 
inapplicable to a domestic source requirement or domestic 
content requirement that is set forth in a law enacted after 
the enactment of this section solely on the basis of the later 
enactment. 
‘‘(i) DECLARATION OF PRINCIPLES.—(1) In this sec-
tion, the term ‘Declaration of Principles’ means a written 
understanding between the Department of Defense and its 
counterpart in a foreign country signifying a cooperative 
relationship between the Department and its counterpart 
to standardize or make interoperable defense equipment
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used by the armed forces and the armed forces of the foreign 
country across a broad spectrum of defense activities, in-
cluding—
‘‘(A) harmonization of military requirements 
and acquisition processes; 
‘‘(B) security of supply; 
‘‘(C) export procedures; 
‘‘(D) security of information; 
‘‘(E) ownership and corporate governance; 
‘‘(F) research and development; 
‘‘(G) flow of technical information; and 
‘‘(H) defense trade. 
‘‘(2) A Declaration of Principles is underpinned by a 
memorandum of understanding or other agreement pro-
viding for the reciprocal procurement of defense items be-
tween the United States and the foreign country concerned 
without unfair discrimination in accordance with section 
2531 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such subchapter is amended by inserting 
after the item relating to section 2539b the following new 
item:
‘‘2539c. Waiver of domestic source or content requirements.’’.
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SEC. 834. BUY AMERICAN EXCEPTION FOR BALL BEARINGS 
AND ROLLER BEARINGS USED IN FOREIGN 
PRODUCTS. 
Section 2534(a)(5) of title 10, United States Code, is 
amended by inserting before the period at the end the fol-
lowing: ‘‘, except ball bearings and roller bearings being 
procured for use in an end product manufactured by a 
manufacturer that does not satisfy the requirements of sub-
section (b) or in a component part manufactured by such 
a manufacturer’’. 
Subtitle E—Defense Acquisition 
and Support Workforce 
SEC. 841. FLEXIBILITY FOR MANAGEMENT OF THE DE-
FENSE ACQUISITION AND SUPPORT WORK-
FORCE. 
(a) MANAGEMENT STRUCTURE.—(1) Sections 1703, 
1705, 1706, and 1707 of title 10, United States Code, are 
repealed. 
(2) Section 1724(d) of such title is amended—
(A) in the first sentence, by striking ‘‘The acqui-
sition career program board concerned’’ and all that 
follows through ‘‘if the board certifies’’ and inserting 
‘‘The Secretary of Defense may waive any or all of 
the requirements of subsections (a) and (b) with re-
spect to an employee of the Department of Defense or
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member of the armed forces if the Secretary deter-
mines’’; 
(B) in the second sentence, by striking ‘‘the 
board’’ and inserting ‘‘the Secretary’’; and 
(C) by striking the third sentence. 
(3) Section 1732(b) of such title is amended—
(A) in paragraph (1)(C), by striking ‘‘, as vali-
dated by the appropriate career program management 
board’’; and 
(B) in paragraph (2)(A)(ii), by striking ‘‘has 
been certified by the acquisition career program board 
of the employing military department as possessing’’ 
and inserting ‘‘possess’’. 
(4) Section 1732(d) of such title is amended—
(A) in paragraph (1)—
(i) in the first sentence, by striking ‘‘the ac-
quisition career program board of a military de-
partment’’ and all that follows through ‘‘if the 
board certifies’’ and inserting ‘‘The Secretary of 
Defense may waive any or all of the require-
ments of subsection (b) with respect to an em-
ployee if the Secretary determines’’; 
(ii) in the second sentence, by striking ‘‘the 
board’’ and inserting ‘‘the Secretary’’; and 
(iii) by striking the third sentence; and
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(B) in paragraph (2), by striking ‘‘The acquisi-
tion career program board of a military department’’ 
and inserting ‘‘The Secretary’’. 
(5) Section 1734(d) of such title is amended—
(A) in subsection (d)—
(i) by striking paragraph (2); and 
(ii) in paragraph (3), by striking the second 
sentence; and 
(B) in subsection (e)(2), by striking ‘‘, by the ac-
quisition career program board of the department 
concerned,’’. 
(6) Section 1737(c) of such title is amended—
(A) by striking paragraph (2); and 
(B) by striking ‘‘(1) The Secretary’’ and insert-
ing ‘‘The Secretary’’. 
(b) ELIMINATION OF ROLE OF OFFICE OF PERSONNEL 
MANAGEMENT.—(1) Section 1725 of such title is repealed. 
(2) Section 1731 of such title is amended by striking 
subsection (c). 
(3) Section 1732(c)(2) of such title is amended by 
striking the second and third sentences. 
(4) Section 1734(g) of such title is amended—
(A) by striking paragraph (2); and 
(B) in paragraph (1) by striking ‘‘(1) The Sec-
retary’’ and inserting ‘‘The Secretary’’.
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(5) Section 1737 of such title is amended by striking 
subsection (d). 
(6) Section 1744(c)(3)(A)(i) of such title is amended 
by striking ‘‘and such other requirements as the Office of 
Personnel Management may prescribe’’. 
(c) SINGLE ACQUISITION CORPS.—(1) Section 1731 of 
such title is amended—
(A) in subsection (a)—
(i) by striking ‘‘each of the military depart-
ments and one or more Corps, as he considers 
appropriate, for the other components of’’ in the 
first sentence; and 
(ii) by striking the second sentence; and 
(B) in subsection (b), by striking ‘‘an Acquisi-
tion Corps’’ and inserting ‘‘the Acquisition Corps’’. 
(2) Sections 1732(a), 1732(e)(1), 1732(e)(2), 1733(a), 
1734(e)(1), and 1737(a)(1) of such title are amended by 
striking ‘‘an Acquisition Corps’’ and inserting ‘‘the Acqui-
sition Corps’’. 
(3) Section 1734 of such title is amended—
(A) in subsection (g), by striking ‘‘each Acquisi-
tion Corps, a test program in which members of a 
Corps’’ and inserting ‘‘the Acquisition Corps, a test 
program in which members of the Corps’’; and
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(B) in subsection (h), by striking ‘‘making as-
signments of civilian and military members of the 
Acquisition Corps of that military department’’ and 
inserting ‘‘making assignments of civilian and mili-
tary personnel of that military department who are 
members of the Acquisition Corps’’. 
(d) CONSOLIDATION
OF CERTAIN EDUCATION
AND 
TRAINING PROGRAM REQUIREMENTS.—(1) Section 1742 of 
such title is amended to read as follows: 
‘‘§ 1742. Internship, cooperative education, and schol-
arship programs 
‘‘The Secretary of Defense shall conduct the following 
education and training programs: 
‘‘(1) An intern program for purposes of pro-
viding highly qualified and talented individuals an 
opportunity for accelerated promotions, career broad-
ening assignments, and specified training to prepare 
them for entry into the Acquisition Corps. 
‘‘(2) A cooperative education credit program 
under which the Secretary arranges, through coopera-
tive arrangements entered into with one or more ac-
credited institutions of higher education, for such in-
stitutions to grant undergraduate credit for work per-
formed by students who are employed by the Depart-
ment of Defense in acquisition positions.
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‘‘(3) A scholarship program for the purpose of 
qualifying personnel for acquisition positions in the 
Department of Defense.’’. 
(2) Sections 1743 and 1744 of such title are repealed. 
(e) GENERAL MANAGEMENT PROVISIONS.—Subchapter 
V of chapter 87 of such title is amended—
(1) by striking section 1763; and 
(2) by adding at the end the following new sec-
tion 1764: 
‘‘§ 1764. Authority to establish different minimum re-
quirements 
‘‘(a) AUTHORITY.—(1) The Secretary of Defense may 
prescribe a different minimum number of years of experi-
ence, different minimum education qualifications, and dif-
ferent tenure of service qualifications to be required for eli-
gibility for appointment or advancement to an acquisition 
position referred to in subsection (b) than is required for 
such position under or pursuant to any provision of this 
chapter. 
‘‘(2) Any requirement prescribed under paragraph (1) 
for a position referred to in any paragraph of subsection 
(b) shall be applied uniformly to all positions referred to 
in such paragraph. 
‘‘(b) APPLICABILITY.—This section applies to the fol-
lowing acquisition positions in the Department of Defense:
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‘‘(1) Contracting officer, except a position re-
ferred to in paragraph (5). 
‘‘(2) Program executive officer. 
‘‘(3) Senior contracting official. 
‘‘(4) Program manager. 
‘‘(5) A position in the contract contingency force 
of an armed force that is filled by a member of that 
armed force. 
‘‘(c) DEFINITION.—In this section, the term ‘contract 
contingency force’, with respect to an armed force, has the 
meaning given such term in regulations prescribed by the 
Secretary concerned.’’. 
(f) CLERICAL AMENDMENTS.—(1) The table of sections 
at the beginning of subchapter I of chapter 87 of title 10, 
United States Code, is amended by striking the items relat-
ing to sections 1703, 1705, 1706, and 1707. 
(2) The table of sections at the beginning of subchapter 
II of such chapter is amended by striking the item relating 
to section 1725. 
(3) The table of sections at the beginning of subchapter 
IV of such chapter is amended by striking the items relating 
to sections 1742, 1743, and 1744 and inserting the fol-
lowing:
‘‘1742. Internship, cooperative education, and scholarship programs.’’.
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(4) The table of sections at the beginning of subchapter 
V of such chapter is amended by striking the item relating 
to section 1763 and inserting the following:
‘‘1764. Authority to establish different minimum requirements.’’.
SEC. 842. LIMITATION AND REINVESTMENT AUTHORITY 
RELATING TO REDUCTION OF THE DEFENSE 
ACQUISITION AND SUPPORT WORKFORCE. 
(a) LIMITATION.—Notwithstanding any other provi-
sion of law, the defense acquisition and support workforce 
may not be reduced, during fiscal years 2004, 2005, and 
2006, below the level of that workforce as of September 30, 
2002, determined on the basis of full-time equivalent posi-
tions, except as may be necessary to strengthen the defense 
acquisition and support workforce in higher priority posi-
tions in accordance with this section. 
(b) WORKFORCE FLEXIBILITY.—During fiscal years 
2004, 2005, and 2006, the Secretary of Defense may realign 
any part of the defense acquisition and support workforce 
to support reinvestment in other, higher priority positions 
in such workforce. 
(c) HIGHER PRIORITY POSITIONS.—For the purposes 
of this section, higher priority positions in the defense ac-
quisition and support workforce include the following posi-
tions: 
(1) Positions the responsibilities of which include 
drafting performance-based work statements for serv-
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ices contracts and overseeing the performance of con-
tracts awarded pursuant to such work statements. 
(2) Positions the responsibilities of which include 
conducting spending analyses, negotiating company-
wide pricing agreements, and taking other measures 
to reduce contract costs. 
(3) Positions the responsibilities of which include 
reviewing contractor quality control systems, assess-
ing and analyzing quality deficiency reports, and 
taking other measures to improve product quality. 
(4) Positions the responsibilities of which include 
effectively conducting public-private competitions in 
accordance with Office of Management and Budget 
Circular A–76. 
(5) Any other positions in the defense acquisition 
and support workforce that the Secretary identifies as 
being higher priority positions that are staffed at lev-
els not likely to ensure efficient and effective perform-
ance of all of the responsibilities of those positions. 
(d) DEFENSE ACQUISITION
AND SUPPORT WORK-
FORCE DEFINED.—In this section, the term ‘‘defense acqui-
sition and support workforce’’ means members of the Armed 
Forces and civilian personnel who are assigned to, or are 
employed in, an organization of the Department of Defense
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that has acquisition as its predominant mission, as deter-
mined by the Secretary of Defense. 
SEC. 843. CLARIFICATION AND REVISION OF AUTHORITY 
FOR DEMONSTRATION PROJECT RELATING 
TO CERTAIN ACQUISITION PERSONNEL MAN-
AGEMENT POLICIES AND PROCEDURES. 
Section 4308 of the National Defense Authorization 
Act for Fiscal Year 1996 (10 U.S.C. 1701 note) is amend-
ed—
(1) in subsection (b), by striking paragraph (3) 
and inserting the following: 
‘‘(3) CONDITIONS.—Paragraph (2) shall not 
apply with respect to a demonstration project un-
less—
‘‘(A) for each organization or team partici-
pating in the demonstration project—
‘‘(i) at least one-third of the workforce 
participating in the demonstration project 
consists of members of the acquisition work-
force; and 
‘‘(ii) at least two-thirds of the work-
force participating in the demonstration 
project consists of members of the acquisi-
tion workforce and supporting personnel as-
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signed to work directly with the acquisition 
workforce; and 
‘‘(B) the demonstration project commences 
before October 1, 2007.’’; 
(2) in subsection (d), by striking ‘‘95,000’’ in 
subsection (d) and inserting ‘‘120,000’’; 
(3) by redesignating subsection (e) as subsection 
(f); and 
(4) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) EFFECT
OF REORGANIZATIONS.—The applica-
bility of paragraph (2) of subsection (b) to an organization 
or team shall not terminate by reason that the organization 
or team, after having satisfied the conditions in paragraph 
(3) of such subsection when it began to participate in a 
demonstration project under this section, ceases to meet one 
or both of the conditions set forth in subparagraph (A) of 
such paragraph (3) as a result of a reorganization, restruc-
turing, realignment, consolidation, or other organizational 
change.’’.
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Subtitle F—Federal Support for 
Procurement of Anti-Terrorism 
Technologies and Services by 
State and Local Governments 
SEC. 851. APPLICATION OF INDEMNIFICATION AUTHORITY 
TO STATE AND LOCAL GOVERNMENT CON-
TRACTORS. 
(a) AUTHORITY.—Subject to the limitations of sub-
section (b), the President may exercise the discretionary au-
thority under Public Law 85–804 (50 U.S.C. 1431 et seq.) 
so as to provide under such law for indemnification of con-
tractors and subcontractors in procurements by States or 
units of local government of an anti-terrorism technology 
or an anti-terrorism service for the purpose of preventing, 
detecting, identifying, otherwise deterring, or recovering 
from acts of terrorism. 
(b) LIMITATIONS.—Any authority that is delegated by 
the President under subsection (a) to the head of a Federal 
agency to provide for the indemnification of contractors and 
subcontractors under Public Law 85–804 (50 U.S.C. 1431 
et seq.) for procurements by States or units of local govern-
ment may be exercised only—
(1) in the case of a procurement by a State or 
unit of local government that—
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(A) is made under a contract awarded pur-
suant to section 852; and 
(B) is approved, in writing, for the provi-
sion of indemnification by the President or the 
official designated by the President under section 
852(a); and 
(2) with respect to—
(A) amounts of losses or damages not fully 
covered by private liability insurance and State 
or local government-provided indemnification; 
and 
(B) liabilities of a contractor or subcon-
tractor not arising out of willful misconduct or 
lack of good faith on the part of the contractor 
or subcontractor, respectively. 
SEC. 852. FEDERAL SUPPORT FOR ENHANCEMENT OF 
STATE 
AND 
LOCAL 
ANTI-TERRORISM 
RE-
SPONSE CAPABILITIES. 
(a) PROCUREMENTS
OF
ANTI-TERRORISM
TECH-
NOLOGIES AND SERVICES BY STATE AND LOCAL GOVERN-
MENTS THROUGH FEDERAL CONTRACTS.—
(1) ESTABLISHMENT OF PROGRAM.—The Presi-
dent shall designate an officer or employee of the 
United States—
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(A) to establish, and the designated official 
shall establish, a program under which States 
and units of local government may procure 
through contracts entered into by the designated 
official anti-terrorism technologies or anti-ter-
rorism services for the purpose of preventing, de-
tecting, identifying, otherwise deterring, or recov-
ering from acts of terrorism; and 
(B) to carry out the SAFER grant program 
provided for under subsection (f). 
(2) DESIGNATED FEDERAL PROCUREMENT OFFI-
CIAL FOR PROGRAM.—In this section, the officer or 
employee designated by the President under para-
graph (1) shall be referred to as the ‘‘designated Fed-
eral procurement official’’. 
(3) AUTHORITIES.—Under the program, the des-
ignated Federal procurement official—
(A) may, but shall not be required to, 
award contracts using the same authorities as 
are provided to the Administrator of General 
Services under section 309(b)(3) of the Federal 
Property and Administrative Services Act (41 
U.S.C. 259(b)(3)); and 
(B) may make SAFER grants in accord-
ance with subsection (f).
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(4) OFFERS
NOT
REQUIRED
TO
STATE
AND 
LOCAL GOVERNMENTS.—A contractor that sells anti-
terrorism technology or anti-terrorism services to the 
Federal Government may not be required to offer such 
technology or services to a State or unit of local gov-
ernment under the program. 
(b) RESPONSIBILITIES OF THE CONTRACTING OFFI-
CIAL.—In carrying out the program established under this 
section, the designated Federal procurement official shall—
(1) produce and maintain a catalog of anti-ter-
rorism technologies and anti-terrorism services suit-
able for procurement by States and units of local gov-
ernment under this program; and 
(2) establish procedures in accordance with sub-
section (c) to address the procurement of anti-ter-
rorism technologies and anti-terrorism services by 
States and units of local government under contracts 
awarded by the designated official. 
(c) REQUIRED PROCEDURES.—The procedures re-
quired by subsection (b)(2) shall implement the following 
requirements and authorities: 
(1) SUBMISSIONS BY STATES.—
(A) REQUESTS AND PAYMENTS.—Except as 
provided in subparagraph (B), each State desir-
ing to participate in a procurement of anti-ter-
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rorism technologies or anti-terrorism services 
through a contract entered into by the designated 
Federal procurement official under this section 
shall submit to that official in such form and 
manner and at such times as such official pre-
scribes, the following: 
(i) REQUEST.—A request consisting of 
an enumeration of the technologies or serv-
ices, respectively, that are desired by the 
State and units of local government within 
the State. 
(ii) PAYMENT.—Advance payment for 
each requested technology or service in an 
amount determined by the designated offi-
cial based on estimated or actual costs of 
the technology or service and administrative 
costs incurred by such official. 
(B) OTHER
CONTRACTS.—The designated 
Federal procurement official may award and 
designate contracts under which States and units 
of local government may procure anti-terrorism 
technologies and anti-terrorism services directly 
from the contractors. No indemnification may be 
provided under Public Law 85–804 pursuant to 
an exercise of authority under section 851 for
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procurements that are made directly between 
contractors and States or units of local govern-
ment. 
(2) PERMITTED
CATALOG
TECHNOLOGIES
AND 
SERVICES.—A State may include in a request sub-
mitted under paragraph (1) only a technology or 
service listed in the catalog produced under subsection 
(b)(1). 
(3) COORDINATION OF LOCAL REQUESTS WITHIN 
STATE.—The Governor of a State may establish such 
procedures as the Governor considers appropriate for 
administering and coordinating requests for anti-ter-
rorism technologies or anti-terrorism services from 
units of local government within the State. 
(4) SHIPMENT AND TRANSPORTATION COSTS.—A 
State requesting anti-terrorism technologies or anti-
terrorism services shall be responsible for arranging 
and paying for any shipment or transportation of the 
technologies or services, respectively, to the State and 
localities within the State. 
(d) REIMBURSEMENT OF ACTUAL COSTS.—In the case 
of a procurement made by or for a State or unit of local 
government under the procedures established under this sec-
tion, the designated Federal procurement official shall re-
quire the State or unit of local government to reimburse
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the Department for the actual costs it has incurred for such 
procurement. 
(e) TIME FOR IMPLEMENTATION.—The catalog and 
procedures required by subsection (b) of this section shall 
be completed as soon as practicable and no later than 210 
days after the enactment of this Act. 
(f) SAFER GRANT PROGRAM.—
(1) AUTHORITY.—The designated Federal pro-
curement official, in cooperation with the Secretary of 
the Department of Homeland Security or his des-
ignee, is authorized to make grants to eligible entities 
for the purpose of supporting increases in the number 
of permanent positions for firefighters in fire services 
to ensure staffing at levels and with skill mixes that 
are adequate emergency response to incidents or 
threats of terrorism. 
(2) USE OF FUNDS.—The proceeds of a SAFER 
grant to an eligible entity may be used only for the 
purpose specified in paragraph (1). 
(3) DURATION.—A SAFER grant to an eligible 
entity shall provide funding for a period of 4 years. 
The proceeds of the grant shall be disbursed to the eli-
gible entity in 4 equal annual installments. 
(4) NON-FEDERAL SHARE.—
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(A) REQUIREMENT.—An eligible entity may 
receive a SAFER grant only if the entity enters 
into an agreement with the designated Federal 
procurement official to contribute non-Federal 
funds to achieve the purpose of the grant in the 
following amounts: 
(i) During the second year in which 
funds of a SAFER grant are received, an 
amount equal to 25 percent of the amount 
of the SAFER grant funds received that 
year. 
(ii) During the third year in which 
funds of a SAFER grant are received, an 
amount equal to 50 percent of the amount 
of the SAFER grant funds received that 
year. 
(iii) During the fourth year in which 
funds of a SAFER grant are received, an 
amount equal to 75 percent of the amount 
of the SAFER grant funds received that 
year. 
(B) WAIVER.—The designated Federal pro-
curement official may waive the requirement for 
a non-Federal contribution described in subpara-
graph (A) in the case of any eligible entity.
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(C) ASSET FORFEITURE FUNDS.—An eligi-
ble entity may use funds received from the dis-
posal of property transferred to the eligible enti-
ty pursuant to section 9703(h) of title 31, United 
States Code, section 981(e) of title 18, United 
States Code, or section 616 of the Tariff Act of 
1930 (19 U.S.C. 1616a) to provide the non-Fed-
eral share required under paragraph (1). 
(D) BIA FUNDS.—Funds appropriated for 
the activities of any agency of a tribal organiza-
tion or for the Bureau of Indian Affairs to per-
form firefighting functions on any Indian lands 
may be used to provide the share required under 
subparagraph (A), and such funds shall be 
deemed to be non-Federal funds for such purpose. 
(5) APPLICATIONS.—
(A) REQUIREMENT.—To receive a SAFER 
grant, an eligible entity shall submit an applica-
tion for the grant to the designated Federal pro-
curement official. 
(B) CONTENT.—Each application for a 
SAFER grant shall contain, for each fire service 
covered by the application, the following infor-
mation:
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(i) A long-term strategy for increasing 
the force of firefighters in the fire service to 
ensure readiness for appropriate and effec-
tive emergency response to incidents or 
threats of terrorism. 
(ii) A detailed plan for implementing 
the strategy that reflects consultation with 
community groups, consultation with ap-
propriate private and public entities, and 
consideration of any master plan that ap-
plies to the eligible entity. 
(iii) An assessment of the ability of the 
eligible entity to increase the force of fire-
fighters in the fire service without Federal 
assistance. 
(iv) An assessment of the levels of com-
munity support for increasing that force, 
including financial and in-kind contribu-
tions and any other available community 
resources. 
(v) Specific plans for obtaining nec-
essary support and continued funding for 
the firefighter positions proposed to be 
added to the fire service with SAFER grant 
funds.
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(vi) An assurance that the eligible enti-
ty will, to the extent practicable, seek to re-
cruit and employ (or accept the voluntary 
services of) firefighters who are members of 
racial and ethnic minority groups or 
women. 
(vii) Any additional information that 
the designated Federal procurement official 
considers appropriate. 
(C) SPECIAL
RULE
FOR
SMALL
COMMU-
NITIES.—The designated Federal procurement of-
ficial may authorize an eligible entity respon-
sible for a population of less than 50,000 to sub-
mit an application without information required 
under subparagraph (B), and may otherwise 
make special provisions to facilitate the expe-
dited submission, processing, and approval of an 
application by such an entity. 
(D) PREFERENTIAL
CONSIDERATION.—The 
designated Federal procurement official may give 
preferential consideration, to the extent feasible, 
to an application submitted by an eligible entity 
that agrees to contribute a non-Federal share 
higher than the share required under paragraph 
(4)(A).
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(E) ASSISTANCE WITH APPLICATIONS.—The 
designated Federal procurement official is au-
thorized to provide technical assistance to an eli-
gible entity for the purpose of assisting with the 
preparation of an application for a SAFER 
grant. 
(6) SPECIAL RULES ON USE OF FUNDS.—
(A) SUPPLEMENT
NOT
SUPPLANT.—The 
proceeds of a SAFER grant made to an eligible 
entity shall be used to supplement and not sup-
plant other Federal funds, State funds, or funds 
from a subdivision of a State, or, in the case of 
a tribal organization, funds supplied by the Bu-
reau of Indian Affairs, that are available for sal-
aries or benefits for firefighters. 
(B) LIMITATION RELATING TO COMPENSA-
TION OF FIREFIGHTERS.—
(i) IN GENERAL.—The proceeds of a 
SAFER grant may not be used to fund the 
pay and benefits of a full-time firefighter if 
the total annual amount of the pay and 
benefits for that firefighter exceeds $100,000. 
The designated Federal procurement official 
may waive the prohibition in the pro-
ceeding sentence in any particular case.
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(ii) ADJUSTMENT
FOR
INFLATION.—
Effective on October 1 of each year, the total 
annual amount applicable under subpara-
graph (A) shall be increased by the percent-
age (rounded to the nearest one-tenth of one 
percent) by which the Consumer Price Index 
for all-urban consumers published by the 
Department of Labor for July of such year 
exceeds the Consumer Price Index for all-
urban consumers published by the Depart-
ment of Labor for July of the preceding 
year. The first adjustment shall be made on 
October 1, 2004. 
(7) PERFORMANCE EVALUATION.—
(A) REQUIREMENT FOR INFORMATION.—The 
designated Federal procurement official shall 
evaluate, each year, whether an entity receiving 
SAFER grant funds in such year is substan-
tially complying with the terms and conditions 
of the grant. The entity shall submit to the des-
ignated Federal procurement official any infor-
mation that the designated Federal procurement 
official requires for that year for the purpose of 
the evaluation.
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(B) REVOCATION OR SUSPENSION OF FUND-
ING.—If the designated Federal procurement offi-
cial determines that a recipient of a SAFER 
grant is not in substantial compliance with the 
terms and conditions of the grant the designated 
Federal procurement official may revoke or sus-
pend funding of the grant. 
(8) ACCESS TO DOCUMENTS.—
(A) AUDITS BY DESIGNATED FEDERAL PRO-
CUREMENT
OFFICIAL.—The designated Federal 
procurement official shall have access for the 
purpose of audit and examination to any perti-
nent books, documents, papers, or records of an 
eligible entity that receives a SAFER grant. 
(B) AUDITS
BY
THE
COMPTROLLER
GEN-
ERAL.—Subparagraph (A) shall also apply with 
respect to audits and examinations conducted by 
the Comptroller General of the United States or 
by an authorized representative of the Comp-
troller General. 
(9) TERMINATION
OF
SAFER
GRANT
AUTHOR-
ITY.—
(A) IN GENERAL.—The authority to award 
a SAFER grant shall terminate at the end of 
September 30, 2010.
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(B) REPORT TO CONGRESS.—Not later than 
two years after the date of the enactment of this 
Act, the designated Federal procurement official 
shall submit to Congress a report on the SAFER 
grant program under this section. The report 
shall include an assessment of the effectiveness of 
the program for achieving its purpose, and may 
include any recommendations that the des-
ignated Federal procurement official has for in-
creasing the forces of firefighters in fire services. 
(10) DEFINITIONS.—In this subsection: 
(A) ELIGIBLE ENTITY.—The term ‘‘eligible 
entity’’ means—
(i) a State; 
(ii) a subdivision of a State; 
(iii) a tribal organization; 
(iv) any other public entity that the 
designated Federal procurement official de-
termines appropriate for eligibility under 
this section; and 
(v) a multijurisdictional or regional 
consortium of the entities described in 
clauses (i) through (iv). 
(B) FIREFIGHTER.—The term ‘‘firefighter’’ 
means an employee or volunteer member of a fire
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service, including a firefighter, paramedic, emer-
gency medical technician, rescue worker, ambu-
lance personnel, or hazardous materials worker, 
who—
(i) is trained in fire suppression and 
has the legal authority and responsibility to 
engage in fire suppression; or 
(ii) is engaged in the prevention, con-
trol, and extinguishment of fires or response 
to emergency situations where life, property, 
or the environment is at risk. 
(C) FIRE SERVICE.—The term ‘‘fire service’’ 
includes an organization described in section 
4(5) of the Federal Fire Prevention and Control 
Act of 1974 that is under the jurisdiction of a 
tribal organization. 
(D) MASTER
PLAN.—The term ‘‘master 
plan’’ has the meaning given the term in section 
10 of the Federal Fire Prevention and Control 
Act of 1974. 
(E) SAFER GRANT.—The term ‘SAFER 
grant’ means a grant of financial assistance 
under this subsection. 
(F) 
TRIBAL
ORGANIZATION.—The 
term 
‘‘tribal organization’’ has the meaning given the
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term in section 4 of the Indian Self-Determina-
tion and Education Assistance Act (25 U.S.C. 
450b). 
(11) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated for the pur-
pose of carrying out this section such sums as may 
be necessary from the Department of Homeland Secu-
rity, up to—
(A) $1,000,000,000 for fiscal year 2004; 
(B) $1,030,000,000 for fiscal year 2005; and 
(C) $1,061,000,000 for fiscal year 2006. 
SEC. 853. DEFINITIONS. 
In this subtitle: 
(1) ANTI-TERRORISM
TECHNOLOGY
AND
SERV-
ICE.—The terms ‘‘anti-terrorism technology’’ and 
‘‘anti-terrorism service’’ mean any product, equip-
ment, or device, including information technology, 
and any service, system integration, or other kind of 
service (including a support service), respectively, 
that is related to technology and is designed, devel-
oped, modified, or procured for the purpose of pre-
venting, detecting, identifying, otherwise deterring, or 
recovering from acts of terrorism. 
(2) INFORMATION TECHNOLOGY.—The term ‘‘in-
formation technology’’ has the meaning given such
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term in section 11101(6) of title 40, United States 
Code. 
(3) STATE.—The term ‘‘State’’ includes the Dis-
trict of Columbia, the Commonwealth of Puerto Rico, 
the Commonwealth of the Northern Mariana Islands, 
and any territory or possession of the United States. 
(4) UNIT
OF
LOCAL
GOVERNMENT.—The term 
‘‘unit of local government’’ means any city, county, 
township, town, borough, parish, village, or other gen-
eral purpose political subdivision of a State; an In-
dian tribe which performs law enforcement functions 
as determined by the Secretary of the Interior; or any 
agency of the District of Columbia Government or the 
United States Government performing law enforce-
ment functions in and for the District of Columbia or 
the Trust Territory of the Pacific Islands. 
Subtitle 
G—General 
Contracting 
Authorities, 
Procedures, 
and 
Limitations, and Other Matters 
SEC. 861. LIMITED ACQUISITION AUTHORITY FOR COM-
MANDER OF UNITED STATES JOINT FORCES 
COMMAND. 
Section 164 of title 10, United States Code, is amended 
by adding at the end the following new subsection:
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‘‘(h) LIMITED ACQUISITION AUTHORITY
FOR COM-
MANDER OF CERTAIN UNIFIED COMBATANT COMMAND.—
(1) The Secretary of Defense shall delegate to the com-
mander of the unified combatant command referred to in 
paragraph (2) authority of the Secretary under chapter 137 
of this title sufficient to enable the commander to develop 
and acquire equipment described in paragraph (3). The ex-
ercise of authority so delegated is subject to the authority, 
direction, and control of the Secretary. 
‘‘(2) The commander to which authority is delegated 
under paragraph (1) is the commander of the unified com-
batant command that has the mission for joint warfighting 
experimentation, as assigned by the Secretary of Defense. 
‘‘(3) The equipment referred to in paragraph (1) is 
as follows: 
‘‘(A) Battlefield command, control, communica-
tions, and intelligence equipment. 
‘‘(B) Any other equipment that the commander 
referred to in that paragraph determines necessary 
and appropriate for—
‘‘(i) facilitating the use of joint forces in 
military operations; or 
‘‘(ii) enhancing the interoperability of 
equipment used by the various components of 
joint forces on the battlefield.
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‘‘(4) The authority delegated under paragraph (1) does 
not apply to the development or acquisition of a system for 
which—
‘‘(A) the total expenditure for research, develop-
ment, test, and evaluation is estimated to be 
$10,000,000 or more; or 
‘‘(B) the total expenditure for procurement of the 
system is estimated to be $50,000,000 or more. 
‘‘(5) The commander of the unified combatant com-
mand referred to in paragraph (1) shall require the inspec-
tor general of the command to conduct internal audits and 
inspections of purchasing and contracting administered by 
the commander under the authority delegated under sub-
section (a).’’. 
SEC. 862. OPERATIONAL TEST AND EVALUATION. 
(a) LEADERSHIP AND DUTIES OF DEPARTMENT OF 
DEFENSE TEST RESOURCE MANAGEMENT CENTER.—(1) 
Subsection (b)(1) of section 196 of title 10, United States 
Code, is amended—
(A) by striking ‘‘on active duty. The Director’’ 
and inserting ‘‘on active duty or from among senior 
civilian officers and employees of the Department of 
Defense. A commissioned officer serving as the Direc-
tor’’; and
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(B) by adding at the end the following: ‘‘A civil-
ian officer or employee serving as the Director shall 
serve in a pay level equivalent in rank to lieutenant 
general.’’. 
(2)(A) Subsection (c)(1)(B) of such section is amended 
by inserting after ‘‘Department of Defense’’ the following: 
‘‘other than budgets and expenditures for activities de-
scribed in section 139(i) of this title’’. 
(B) Subsection (e)(1) of such section is amended—
(i) by striking ‘‘, the Director of Operational 
Test and Evaluation,’’; and 
(ii) by striking ‘‘, Director’s’’. 
(b) DEPLOYMENT BEFORE COMPLETION OF OT&E.—
Section 806(c) of the Bob Stump National Defense Author-
ization Act for Fiscal Year 2003 (Public Law 107–314; 116 
Stat. 2607; 10 U.S.C. 2302 note) is amended by adding 
at the end the following new paragraph: 
‘‘(3) If items are deployed under the rapid acquisition 
and deployment procedures prescribed pursuant to this sec-
tion, or under any other authority, before the completion 
of operational test and evaluation of the items, the Director 
of Operational Test and Evaluation shall have access to 
operational records and data relevant to such items in ac-
cordance with section 139(e)(3) of title 10, United States 
Code, for the purpose of completing operational test and
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evaluation of the items. The access to the operational records 
and data shall be provided in a time and manner deter-
mined by the Secretary of Defense consistent with require-
ments of operational security and other relevant operational 
requirements.’’. 
SEC. 863. MULTIYEAR TASK AND DELIVERY ORDER CON-
TRACTS. 
(a) REPEAL OF APPLICABILITY OF EXISTING AUTHOR-
ITY AND LIMITATIONS.—Section 2306c of title 10, United 
States Code, is amended—
(1) by striking subsection (g); and 
(2) by redesignating subsection (h) as subsection 
(g). 
(b) MULTIYEAR CONTRACTING AUTHORITY.—Section 
2304a of such title is amended—
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
(2) by inserting after subsection (e) the following 
new subsection (f): 
‘‘(f) MULTIYEAR CONTRACTS.—The head of an agency 
entering into a task or delivery order contract under this 
section may provide for the contract to cover any period 
up to five years and may extend the contract period for 
one or more successive periods pursuant to an option pro-
vided in the contract or a modification of the contract. In
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no event, however, may the total contract period as extended 
exceed eight years.’’. 
SEC. 864. REPEAL OF REQUIREMENT FOR CONTRACTOR 
ASSURANCES REGARDING THE COMPLETE-
NESS, ACCURACY, AND CONTRACTUAL SUFFI-
CIENCY OF TECHNICAL DATA PROVIDED BY 
THE CONTRACTOR. 
Section 2320(b) of title 10, United States Code, is 
amended—
(1) by striking paragraph (7); and 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (7) and (8), respectively. 
SEC. 865. REESTABLISHMENT OF AUTHORITY FOR SHORT-
TERM LEASES OF REAL OR PERSONAL PROP-
ERTY ACROSS FISCAL YEARS. 
(a) REESTABLISHMENT OF AUTHORITY.—Subsection 
(a) of section 2410a of title 10, United States Code, is 
amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of 
Defense’’; 
(2) by striking ‘‘for procurement of severable 
services’’ and inserting ‘‘for a purpose described in 
paragraph (2)’’; and 
(3) by adding at the end the following new para-
graph:
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‘‘(2) The purpose of a contract described in this para-
graph is as follows: 
‘‘(A) The procurement of severable services. 
‘‘(B) The lease of real or personal property, in-
cluding the maintenance of such property when con-
tracted for as part of the lease agreement.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.—(1) 
The heading of such section is amended to read as follows: 
‘‘§ 2410a. Contracts for periods crossing fiscal years: 
severable service contracts; leases of real 
or personal property’’. 
(2) The table of sections at the beginning of chapter 
141 of such title is amended by striking the item relating 
to section 2410a and inserting the following new item:
‘‘2410a. Contracts for periods crossing fiscal years: severable service contracts; 
leases of real or personal property.’’.
SEC. 866. CONSOLIDATION OF CONTRACT REQUIREMENTS. 
(a) AMENDMENT TO TITLE 10.—(1) Chapter 141 of 
title 10, United States Code, is amended by inserting after 
section 2381 the following new section: 
‘‘§ 2382. Consolidation of contract requirements: pol-
icy and restrictions 
‘‘(a) POLICY.—The Secretary of Defense shall require 
the Secretary of each military department, the head of each 
Defense Agency, and the head of each Department of Defense 
Field Activity to ensure that the decisions made by that
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official regarding consolidation of contract requirements of 
the department, agency, or field activity, as the case may 
be, are made with a view to providing small business con-
cerns with appropriate opportunities to participate in De-
partment of Defense procurements as prime contractors and 
appropriate opportunities to participate in such procure-
ments as subcontractors. 
‘‘(b) LIMITATION ON USE OF ACQUISITION STRATE-
GIES INVOLVING CONSOLIDATION.—(1) An official of a 
military department, Defense Agency, or Department of De-
fense Field Activity may not execute an acquisition strategy 
that includes a consolidation of contract requirements of the 
military department, agency, or activity with a total value 
in excess of $5,000,000, unless the senior procurement execu-
tive concerned first—
‘‘(A) conducts market research; 
‘‘(B) identifies any alternative contracting ap-
proaches that would involve a lesser degree of consoli-
dation of contract requirements; and 
‘‘(C) determines that the consolidation is nec-
essary and justified. 
‘‘(2) A senior procurement executive may determine 
that an acquisition strategy involving a consolidation of 
contract requirements is necessary and justified for the pur-
poses of paragraph (1) if the benefits of the acquisition
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strategy substantially exceed the benefits of each of the pos-
sible alternative contracting approaches identified under 
subparagraph (B) of that paragraph. However, savings in 
administrative or personnel costs alone do not constitute, 
for such purposes, a sufficient justification for a consolida-
tion of contract requirements in a procurement unless the 
total amount of the cost savings is expected to be substantial 
in relation to the total cost of the procurement. 
‘‘(3) Benefits considered for the purposes of paragraphs 
(1) and (2) may include cost and, regardless of whether 
quantifiable in dollar amounts—
‘‘(A) quality; 
‘‘(B) acquisition cycle; 
‘‘(C) terms and conditions; and 
‘‘(D) any other benefit. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The terms ‘consolidation of contract require-
ments’ and ‘consolidation’, with respect to contract 
requirements of a military department, Defense Agen-
cy, or Department of Defense Field Activity, mean a 
use of a solicitation to obtain offers for a single con-
tract or a multiple award contract to satisfy two or 
more requirements of that department, agency, or ac-
tivity for goods or services that have previously been 
provided to, or performed for, that department, agen-
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cy, or activity under two or more separate contracts 
smaller in cost than the total cost of the contract for 
which the offers are solicited. 
‘‘(2) The term ‘‘multiple award contract’’ 
means—
‘‘(A) a contract that is entered into by the 
Administrator of General Services under the 
multiple award schedule program referred to in 
section 2302(2)(C) of this title; 
‘‘(B) a multiple award task order contract 
or delivery order contract that is entered into 
under the authority of sections 2304a through 
2304d of this title or sections 303H through 
303K of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 253h 
through 253k); and 
‘‘(C) any other indeterminate delivery, in-
determinate quantity contract that is entered 
into by the head of a Federal agency with two 
or more sources pursuant to the same solicita-
tion. 
‘‘(3) The term ‘senior procurement executive con-
cerned’ means—
‘‘(A) with respect to a military department, 
the official designated under section 16(3) of the
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Office of Federal Procurement Policy Act (41 
U.S.C. 414(3)) as the senior procurement execu-
tive for the military department; or 
‘‘(B) with respect to a Defense Agency or a 
Department of Defense Field Activity, the official 
so designated for the Department of Defense. 
‘‘(4) The term ‘small business concern’ means a 
business concern that is determined by the Adminis-
trator of the Small Business Administration to be a 
small-business concern by application of the stand-
ards prescribed under section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a)).’’. 
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2381 the following new item:
‘‘2382. Consolidation of contract requirements: policy and restrictions.’’.
(b) DATA REVIEW.—(1) The Secretary of Defense shall 
revise the data collection systems of the Department of De-
fense to ensure that such systems are capable of identifying 
each procurement that involves a consolidation of contract 
requirements within the department with a total value in 
excess of $5,000,000. 
(2) The Secretary shall ensure that appropriate offi-
cials of the Department of Defense periodically review the 
information collected pursuant to paragraph (1) in co-
operation with the Small Business Administration—
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(A) to determine the extent of the consolidation 
of contract requirements in the Department of De-
fense; and 
(B) to assess the impact of the consolidation of 
contract requirements on the availability of opportu-
nities for small business concerns to participate in 
Department of Defense procurements, both as prime 
contractors and as subcontractors. 
(3) In this subsection: 
(A) The term ‘‘consolidation of contract require-
ments’’ has the meaning given that term in section 
2382(c)(1) of title 10, United States Code, as added 
by subsection (a). 
(B) The term ‘‘small business concern’’ means a 
business concern that is determined by the Adminis-
trator of the Small Business Administration to be a 
small-business concern by application of the stand-
ards prescribed under section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a)). 
(c) APPLICABILITY.—This section applies only with re-
spect to contracts entered into with funds authorized to be 
appropriated by this Act.
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TITLE IX—DEPARTMENT OF DE-
FENSE 
ORGANIZATION 
AND 
MANAGEMENT 
Subtitle A—Department Officers 
and Agencies 
SEC. 901. CLARIFICATION OF RESPONSIBILITY OF MILI-
TARY DEPARTMENTS TO SUPPORT COMBAT-
ANT COMMANDS. 
Sections 3013(c)(4), 5013(c)(4), and 8013(3)(c)(4) of 
title 10, United States Code, are amended by striking ‘‘(to 
the maximum extent practicable)’’. 
SEC. 902. REDESIGNATION OF NATIONAL IMAGERY AND 
MAPPING 
AGENCY 
AS 
NATIONAL 
GEOSPATIAL-INTELLIGENCE AGENCY. 
(a) REDESIGNATION.—The National Imagery and 
Mapping Agency (NIMA) is hereby redesignated as the Na-
tional Geospatial-Intelligence Agency (NGA). 
(b) CONFORMING AMENDMENTS.—
(1) TITLE 10, UNITED STATES CODE.—(A) Chap-
ter 22 of title 10, United States Code, is amended by 
striking ‘‘National Imagery and Mapping Agency’’ 
each place it appears (other than the penultimate 
place it appears in section 461(b) of such title) and 
inserting ‘‘National Geospatial-Intelligence Agency’’.
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(B) Section 453(b) of such title is amended by 
striking ‘‘NIMA’’ each place it appears and inserting 
‘‘NGA’’. 
(C)(i) Subsection (b)(3) of section 424 of such 
title is amended by striking ‘‘National Imagery and 
Mapping 
Agency’’ 
and 
inserting 
‘‘National 
Geospatial-Intelligence Agency’’. 
(ii) The heading for such section is amended to 
read as follows: 
‘‘§ 424. Disclosure of organizational and personnel in-
formation: exemption for Defense Intel-
ligence Agency, National Reconnaissance 
Office, and National Geospatial Intel-
ligence Agency’’. 
(iii) The table of sections at the beginning of sub-
chapter I of chapter 21 of such title is amended in 
the item relating to section 424 by striking ‘‘National 
Imagery and Mapping Agency’’ and inserting ‘‘Na-
tional Geospatial-Intelligence Agency’’. 
(D) Section 425(a) of such title is amended—
(i) by redesignating paragraphs (3) and (4) 
as paragraphs (4) and (5), respectively; and 
(ii) by inserting after paragraph (2) the fol-
lowing new paragraph (3):
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‘‘(3) The words ‘National Geospatial-Intelligence 
Agency’, the initials ‘NGA’, or the seal of the National 
Geospatial-Intelligence Agency.’’. 
(E) Section 1614(2)(C) of such title is amended 
by striking ‘‘National Imagery and Mapping Agency’’ 
and inserting ‘‘National Geospatial-Intelligence Agen-
cy’’. 
(F)(i) The heading for chapter 22 of such title is 
amended to read as follows: 
‘‘CHAPTER 22—NATIONAL GEOSPATIAL-
INTELLIGENCE AGENCY.’’
(ii) The table of chapters at the beginning of sub-
title A of such title, and at the beginning of part I 
of such subtitle, are each amended by striking the 
item relating to chapter 22 and inserting the fol-
lowing new item:
‘‘22. National Geospatial-Intelligence Agency .........................
441’’. 
(2) NATIONAL SECURITY ACT OF 1947.—(A) Sec-
tion 3(4)(E) of the National Security Act of 1947 (50 
U.S.C. 401a(4)(E)) is amended by striking ‘‘National 
Imagery and Mapping Agency’’ and inserting ‘‘Na-
tional Geospatial-Intelligence Agency’’. 
(B) That Act is further amended by striking 
‘‘National Imagery and Mapping Agency’’ each place 
it appears in sections 105, 105A, 105C, 106, and 110
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(50 U.S.C. 403–5, 403–5a, 403–5c, 403–6, 404e) and 
inserting ‘‘National Geospatial-Intelligence Agency’’. 
(C) Section 105C of that Act (50 U.S.C. 403–5c) 
is further amended—
(i) by striking ‘‘NIMA’’ each place it ap-
pears and inserting ‘‘NGA’’; and 
(ii) in subsection (a)(6)(B)(iv)(II), by strik-
ing ‘‘NIMA’s’’ and inserting ‘‘NGA’s’’. 
(D) The heading for section 105C of that Act (50 
U.S.C. 403–5c) is amended to read as follows: 
‘‘PROTECTION OF OPERATIONAL FILES OF THE NATIONAL 
GEOSPATIAL-INTELLIGENCE AGENCY’’. 
(E) The heading for section 110 of that Act (50 
U.S.C. 404e) is amended to read as follows: 
‘‘NATIONAL MISSION OF NATIONAL GEOSPATIAL-
INTELLIGENCE AGENCY’’. 
(F) The table of contents for that Act is amend-
ed—
(i) by striking the item relating to section 
105C and inserting the following new item:
‘‘Sec. 105C. Protection of operational files of the National Geospatial-Intelligence 
Agency.’’; and
(ii) by striking the item relating to section 
110 and inserting the following new item:
‘‘Sec. 110. National mission of National Geospatial-Intelligence Agency.’’.
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(c) REPORT ON UTILIZATION OF CERTAIN DATA EX-
TRACTION
AND EXPLOITATION CAPABILITIES.—(1) Not 
later than 60 days after the date of the enactment of this 
Act, the Director of the National Geospatial-Intelligence 
Agency shall submit to the appropriate committees of Con-
gress a report on the status of the efforts of the Agency to 
incorporate within the Commercial Joint Mapping Tool Kit 
(C/JMTK) applications for the rapid extraction and exploi-
tation of three-dimensional geospatial data from reconnais-
sance imagery. 
(2) In this subsection, the term ‘‘appropriate commit-
tees of Congress’’ means—
(A) the Committee on Armed Services, the Sub-
committee on Defense of the Committee on Appropria-
tions, and the Select Committee on Intelligence of the 
Senate; and 
(B) the Committee on Armed Services, the Sub-
committee on Defense of the Committee on Appropria-
tions, and the Permanent Select Committee on Intel-
ligence of the House of Representatives. 
(d) REFERENCES.—Any reference to the National Im-
agery and Mapping Agency or NIMA in any law, regula-
tion, document, paper, or other record of the United States 
shall be deemed to be a reference to the National Geospatial-
Intelligence Agency or NGA, respectively.
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(e) MATTERS
RELATING
TO
GEOSPATIAL
INTEL-
LIGENCE.—(1) Section 442(a)(2) of title 10, United States 
Code, is amended by striking ‘‘Imagery, intelligence, and 
information’’ and inserting ‘‘Geospatial intelligence’’. 
(2) Section 467 of such title is amended by adding at 
the end the following new paragraph: 
‘‘(5) The term ‘geospatial intelligence’ means the 
exploitation and analysis of imagery and geospatial 
information to describe, assess, and visually depict 
physical features and geographically referenced activi-
ties on the earth, and includes imagery, imagery in-
telligence, and geospatial information.’’. 
(3) Section 110(a) of the National Security Act of 1947 
(50 U.S.C. 404e(a)) is amended by striking ‘‘imagery re-
quirements’’ and inserting ‘‘geospatial intelligence require-
ments’’. 
SEC. 903. STANDARDS OF CONDUCT FOR MEMBERS OF THE 
DEFENSE POLICY BOARD AND THE DEFENSE 
SCIENCE BOARD. 
(a) STANDARDS REQUIRED.—Not later than 30 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall promulgate standards of conduct for mem-
bers of the Defense Policy Board and the Defense Science 
Board. The purpose of the standards of conduct shall be to
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ensure public confidence in the Defense Policy Board and 
the Defense Science Board. 
(b) ISSUES TO BE ADDRESSED.—The standards of 
conduct promulgated pursuant to subsection (a) shall ad-
dress, at a minimum, the following: 
(1) Conditions governing the access of Board 
members to classified information and other confiden-
tial information about the plans and operations of the 
Department of Defense and appropriate limitations 
on any use of such information for private gain. 
(2) Guidelines for addressing conflicting finan-
cial interests and recusal from participation in mat-
ters affecting such interests. 
(3) Guidelines regarding the lobbying of Depart-
ment of Defense officials or other contacts with De-
partment of Defense officials regarding matters in 
which Board members may have financial interests. 
(c) REPORT TO CONGRESS.—The Secretary of Defense 
shall provide the Committees on Armed Services of the Sen-
ate and the House of Representatives with a copy of the 
standards of conduct promulgated pursuant to subsection 
(a) immediately upon promulgation of the standards.
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Subtitle B—Space Activities 
SEC. 911. COORDINATION OF SPACE SCIENCE AND TECH-
NOLOGY ACTIVITIES OF THE DEPARTMENT 
OF DEFENSE. 
(a) SPACE SCIENCE AND TECHNOLOGY STRATEGY.—
(1) The Under Secretary of the Air Force, in consultation 
with the Director of Defense Research and Engineering, 
shall develop a space science and technology strategy and 
shall review and, as appropriate, revise the strategy annu-
ally. 
(2) The strategy shall, at a minimum, address the fol-
lowing issues: 
(A) Short-term and long-term goals of the space 
science and technology programs of the Department of 
Defense. 
(B) The process for achieving the goals, includ-
ing an implementation plan. 
(C) The process for assessing progress made to-
ward achieving the goals. 
(3) Not later than March 15, 2004, the Under Sec-
retary shall submit a report on the space science and tech-
nology strategy to the Committees on Armed Services of the 
Senate and the House of Representatives. 
(b) REQUIRED
COORDINATION.—In executing the 
space science and technology strategy, the directors of the
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research laboratories of the Department of Defense, the 
heads of other Department of Defense research components, 
and the heads of all other appropriate organizations identi-
fied jointly by the Under Secretary of the Air Force and 
the Director of Defense Research and Engineering—
(1) shall identify research laboratory projects 
that make contributions pertaining directly and 
uniquely to the development of space technology; and 
(2) may execute the identified projects only with 
the concurrence of the Under Secretary of the Air 
Force. 
(c) GENERAL ACCOUNTING OFFICE REVIEW.—(1) The 
Comptroller General shall review and assess the space 
science and technology strategy developed under subsection 
(a) and the effectiveness of the coordination process required 
under subsection (b). 
(2) Not later than September 1, 2004, the Comptroller 
General shall submit a report containing the findings and 
assessment under paragraph (1) to the committees on 
Armed Services of the Senate and the House of Representa-
tives. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘research laboratory of the Depart-
ment of Defense’’ means the following: 
(A) The Air Force Research Laboratory.
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(B) The Naval Research Laboratory. 
(C) The Office of Naval Research. 
(D) The Army Research Laboratory. 
(2) The term ‘‘other Department of Defense re-
search component’’ means the following: 
(A) The Defense Advanced Research Projects 
Agency. 
(B) The National Reconnaissance Office. 
SEC. 912. SPACE PERSONNEL CADRE. 
(a) STRATEGY REQUIRED.—(1) The Secretary of De-
fense shall develop a human capital resources strategy for 
space personnel of the Department of Defense. 
(2) The strategy shall be designed to ensure that the 
space career fields of the military departments are inte-
grated to the maximum extent practicable. 
(b) REPORT.—Not later than February 1, 2004, the 
Secretary shall submit a report on the strategy to the Com-
mittees on Armed Services of the Senate and the House of 
Representatives. The report shall contain the following in-
formation: 
(1) The strategy. 
(2) An assessment of the progress made in inte-
grating the space career fields of the military depart-
ments.
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(3) A comprehensive assessment of the adequacy 
of the establishment of the Air Force officer career 
field for space under section 8084 of title 10, United 
States Code, as a solution for correcting deficiencies 
identified by the Commission To Assess United States 
National Security Space Management and Organiza-
tion (established under section 1621 of Public Law 
106–65; 113 Stat. 813; 10 U.S.C. 111 note). 
(c) GENERAL ACCOUNTING OFFICE REVIEW.—(1) The 
Comptroller General shall review the strategy developed 
under subsection (a) the space career fields of the military 
departments and the plans of the military departments for 
developing space career fields. The review shall include an 
assessment of how effective the strategy and the space career 
fields and plans, when implemented, are likely to be for de-
veloping the necessary cadre of personnel who are expert 
in space systems development and space systems operations. 
(2) Not later than June 15, 2004, the Comptroller Gen-
eral shall submit to the Committees referred to in subsection 
(a)(2) a report on the results of the review under paragraph 
(1), including the assessment required by such paragraph.
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SEC. 913. POLICY REGARDING ASSURED ACCESS TO SPACE 
FOR UNITED STATES NATIONAL SECURITY 
PAYLOADS. 
(a) POLICY.—It is the policy of the United States for 
the President to undertake actions appropriate to ensure, 
to the maximum extent practicable, that the United States 
has the capabilities necessary to launch and insert United 
States national security payloads into space whenever such 
payloads are needed in space. 
(b) INCLUDED ACTIONS.—The appropriate actions re-
ferred to in subsection (a) shall include, at a minimum, 
providing resources and policy guidance to sustain—
(1) the availability of at least two space launch 
vehicles or families of space launch vehicles capable of 
delivering into space all payloads designated as na-
tional security payloads by the Secretary of Defense 
and the Director of Central Intelligence; and 
(2) a robust space launch infrastructure and in-
dustrial base. 
(c) COORDINATION.—The Secretary of Defense shall, to 
the maximum extent practicable, pursue the attainment of 
the capabilities described in subsection (a) in coordination 
with the Administrator of the National Space and Aero-
nautics Administration.
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SEC. 914. PILOT PROGRAM TO PROVIDE SPACE SURVEIL-
LANCE NETWORK SERVICES TO ENTITIES 
OUTSIDE THE UNITED STATES GOVERNMENT. 
(a) ESTABLISHMENT.—The Secretary of Defense shall 
carry out a pilot program to provide eligible entities outside 
the Federal Government with satellite tracking services 
using assets owned or controlled by the Department of De-
fense. 
(b) ELIGIBLE ENTITIES.—The Secretary shall pre-
scribe the requirements for eligibility to obtain services 
under the pilot program. The requirements shall, at a min-
imum, provide eligibility for the following entities: 
(1) The governments of States. 
(2) The governments of political subdivisions of 
States. 
(3) United States commercial entities. 
(4) The governments of foreign countries. 
(5) Foreign commercial entities. 
(c) SALE OF SERVICES.—Services under the pilot pro-
gram may be provided by sale, except in the case of services 
provided to a government described in paragraph (1) or (2) 
of subsection (b). 
(d) CONTRACTOR INTERMEDIARIES.—Services under 
the pilot program may be provided either directly to an 
eligible entity or through a contractor of the United States 
or a contractor of an eligible entity.
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(e) SATELLITE DATA AND RELATED ANALYSES.—The 
services provided under the pilot program may include sat-
ellite tracking data or any analysis of satellite data if the 
Secretary determines that it is in the national security in-
terests of the United States for the services to include such 
data or analysis, respectively. 
(f) REIMBURSEMENT OF COSTS.—The Secretary may 
require an entity purchasing services under the pilot pro-
gram to reimburse the Department of Defense for the costs 
incurred by the Department in entering into the sale. 
(g) CREDITING TO CHARGED ACCOUNTS.—(1) The pro-
ceeds of a sale of services under the pilot program, together 
with any amounts reimbursed under subsection (f) in con-
nection with the sale, shall be credited to the appropriation 
for the fiscal year in which collected that is or corresponds 
to the appropriation charged the costs of such services. 
(2) Amounts credited to an appropriation under para-
graph (1) shall be merged with other sums in the appropria-
tion and shall be available for the same period and the same 
purposes as the sums with which merged. 
(h) NONTRANSFERABILITY
AGREEMENT.—The Sec-
retary shall require a recipient of services under the pilot 
program to enter into an agreement not to transfer any 
data or technical information, including any analysis of
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satellite tracking data, to any other entity without the ex-
pressed approval of the Secretary. 
(i) PROHIBITION CONCERNING INTELLIGENCE ASSETS 
OR DATA.—Services and information concerning, or de-
rived from, United States intelligence assets or data may 
not be provided under the pilot program. 
(j) DEFINITIONS.—In this section: 
(1) The term ‘‘United States commercial entity’’ 
means an entity that is involved in commerce and is 
organized under laws of a State, the District of Co-
lumbia, the Commonwealth of Puerto Rico, Guam, the 
United States Virgin Islands, the Commonwealth of 
the Northern Mariana Islands, or American Samoa. 
(2) The term ‘‘foreign commercial entity’’ means 
an entity that is involved in commerce and is orga-
nized under laws of a foreign country. 
(k) DURATION OF PILOT PROGRAM.—The pilot pro-
gram under this section shall be conducted for three years 
beginning on a date designated by the Secretary of Defense, 
but not later than 180 days after the date of the enactment 
of this Act. 
SEC. 915. CONTENT OF BIENNIAL GLOBAL POSITIONING 
SYSTEM REPORT. 
(a) REVISED CONTENT.—Paragraph (1) of section 
2281(d) of title 10, United States Code, is amended—
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(1) by striking subparagraph (C); 
(2) in subparagraph (E), by striking ‘‘Any 
progress made toward’’ and inserting ‘‘Progress and 
challenges in’’; 
(3) by striking subparagraph (F), and inserting 
the following: 
‘‘(F) Progress and challenges in protecting GPS 
from jamming, disruption, and interference.’’; 
(4) by redesignating subparagraphs (D), (E), 
and (F), as subparagraphs (C), (D), and (E), respec-
tively; and 
(5) by inserting after subparagraph (E), as so 
redesignated, the following new subparagraph (F): 
‘‘(F) Progress and challenges in developing the 
enhanced Global Positioning System required by sec-
tion 218(b) of Public Law 105–261 (112 Stat. 1951; 
10 U.S.C. 2281 note).’’. 
(b) CONFORMING AMENDMENT.—Paragraph (2) of 
such section 2281(d) is amended by inserting ‘‘(C),’’ after 
‘‘under subparagraphs’’. 
Subtitle C—Other Matters 
SEC. 921. COMBATANT COMMANDER INITIATIVE FUND. 
(a) REDESIGNATION OF CINC INITIATIVE FUND.—(1) 
The CINC Initiative Fund administered under section 166a
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of title 10, United States Code, is redesignated as the ‘‘Com-
batant Commander Initiative Fund’’. 
(2) Section 166a of title 10, United States Code, is 
amended—
(A) by striking the heading for subsection (a) 
and inserting ‘‘COMBATANT COMMANDER INITIATIVE 
FUND.—‘‘; and 
(B) by striking ‘‘CINC Initiative Fund’’ in sub-
sections (a), (c), and (d), and inserting ‘‘Combatant 
Commander Initiative Fund’’. 
(3) Any reference to the CINC Initiative Fund in any 
other provision of law or in any regulation, document, 
record, or other paper of the United States shall be consid-
ered to be a reference to the Combatant Commander Initia-
tive Fund. 
(b) AUTHORIZED ACTIVITIES.—Subsection (b) of sec-
tion 166a of title 10, United States Code, is amended by 
adding at the end the following new paragraph: 
‘‘(10) Joint warfighting capabilities.’’. 
(c) INCREASED MAXIMUM AMOUNTS AUTHORIZED FOR 
USE.—Subsection (e)(1) of such section is amended—
(1) 
in 
subparagraph 
(A), 
by 
striking 
‘‘$7,000,000’’ and inserting ‘‘$15,000,000’’; 
(2) 
in 
subparagraph 
(B), 
by 
striking 
‘‘$1,000,000’’ and inserting ‘‘$10,000,000’’; and
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(3) 
in 
subparagraph 
(C), 
by 
striking 
‘‘$2,000,000’’ and inserting ‘‘$10,000,000’’. 
SEC. 922. AUTHORITY FOR THE MARINE CORPS UNIVER-
SITY TO AWARD THE DEGREE OF MASTER OF 
OPERATIONAL STUDIES. 
Section 7102(b) of title 10, United States Code, is 
amended—
(1) by striking ‘‘MARINE CORPS WAR COL-
LEGE.—’’ and inserting ‘‘AWARDING OF DEGREES.—
(1)’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) Upon the recommendation of the Director and 
faculty of the Command and Staff College of the Marine 
Corps University, the President of the Marine Corps Uni-
versity may confer the degree of master of operational stud-
ies upon graduates of the School of Advanced Warfighting 
of the Command and Staff College who fulfill the require-
ments for that degree.’’. 
SEC. 923. REPORT 
ON 
CHANGING 
ROLES 
OF 
UNITED 
STATES SPECIAL OPERATIONS COMMAND. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a report
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on the changing roles of the United States Special Oper-
ations Command. 
(b) CONTENT OF REPORT.—(1) The report shall spe-
cifically discuss in detail the following matters: 
(A) The expanded role of the United States Spe-
cial Operations Command in the global war on ter-
rorism. 
(B) The reorganization of the United States Spe-
cial Operations Command to function as a supported 
combatant command for planning and executing op-
erations. 
(C) The role of the United States Special Oper-
ations Command as a supporting combatant com-
mand. 
(2) The report shall also include, in addition to the 
matters discussed pursuant to paragraph (1), a discussion 
of the following matters: 
(A) The military strategy to employ the United 
States Special Operations Command to fight the war 
on terrorism and how that strategy contributes to the 
overall national security strategy with regard to the 
global war on terrorism. 
(B) The scope of the authority granted to the 
commander of the United States Special Operations
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Command to act as a supported commander and to 
prosecute the global war on terrorism. 
(C) The operational and legal parameters within 
which the commander of the United States Special 
Operations Command is to exercise command author-
ity in foreign countries when taking action against 
foreign and United States citizens engaged in ter-
rorist activities. 
(D) The decisionmaking procedures for author-
izing, planning, and conducting individual missions, 
including procedures for consultation with Congress. 
(E) The procedures for the commander of the 
United States Special Operations Command to use to 
coordinate with commanders of other combatant com-
mands, especially geographic commands. 
(F) Future organization plans and resource re-
quirements for conducting the global counterterrorism 
mission. 
(G) The impact of the changing role of the 
United States Special Operations Command on other 
special operations missions, including foreign inter-
nal defense, psychological operations, civil affairs, un-
conventional warfare, counterdrug activities, and hu-
manitarian activities.
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(c) FORMS OF REPORT.—The report shall be submitted 
in unclassified form and, as necessary, in classified form. 
SEC. 924. INTEGRATION OF DEFENSE INTELLIGENCE, SUR-
VEILLANCE, AND RECONNAISSANCE CAPA-
BILITIES 
(a) FINDINGS.—Congress makes the following findings: 
(1) As part of transformation efforts within the 
Department of Defense, each of the Armed Forces is 
developing intelligence, surveillance, and reconnais-
sance capabilities that best support future war fight-
ing as envisioned by the leadership of the military de-
partment concerned. 
(2) Concurrently, intelligence agencies of the De-
partment of Defense outside the military departments 
are developing transformation roadmaps to best sup-
port the future decisionmaking and war fighting 
needs of their principal customers, but are not always 
closely coordinating those efforts with the intelligence, 
surveillance, and reconnaissance development efforts 
of the military departments. 
(3) A senior official of each military department 
has been designated as the integrator of intelligence, 
surveillance, and reconnaissance for each of the 
Armed Forces in such military department, but there 
is not currently a well-defined forum where the inte-
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grators of intelligence, surveillance, and reconnais-
sance capabilities for each of the Armed Forces can 
routinely interact with each other and with senior 
representatives of Department of Defense intelligence 
agencies, as well as with other members of the intel-
ligence community, to ensure unity of effort and to 
preclude unnecessary duplication of effort. 
(4) The current funding structure of a National 
Foreign Intelligence Program (NFIP), Joint Military 
Intelligence Program (JMIP), and Tactical Intel-
ligence and Related Activities Program (TIARA) 
might not be the best approach for supporting the de-
velopment of an intelligence, surveillance, and recon-
naissance structure that is integrated to meet the na-
tional security requirements of the United States in 
the 21st century. 
(5) The position of Under Secretary of Defense 
for Intelligence was established in 2002 by Public 
Law 107–314 in order to facilitate resolution of the 
challenges to achieving an integrated intelligence, sur-
veillance, and reconnaissance structure in the Depart-
ment of Defense to meet such 21st century require-
ments. 
(b) GOAL.—It shall be a goal of the Department of De-
fense to fully coordinate and integrate the intelligence, sur-
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veillance, and reconnaissance capabilities and develop-
mental activities of the military departments, intelligence 
agencies of the Department of Defense, and relevant combat-
ant commands as those departments, agencies, and com-
mands transform their intelligence, surveillance, and recon-
naissance systems to meet current and future needs. 
(c) REQUIREMENT.—(1) The Under Secretary of De-
fense for Intelligence shall establish an Intelligence, Surveil-
lance, and Reconnaissance Integration Council to provide 
a permanent forum for the discussion and arbitration of 
issues relating to the integration of intelligence, surveil-
lance, and reconnaissance capabilities. 
(2) The Council shall be composed of the senior intel-
ligence officers of the Armed Forces and the United States 
Special Operations Command, the Director of Operations 
of the Joint Staff, and the directors of the intelligence agen-
cies of the Department of Defense. 
(3) The Under Secretary of Defense for Intelligence 
shall invite the participation of the Director of Central In-
telligence or his representative in the proceedings of the 
Council. 
(d) ISR INTEGRATION ROADMAP.—The Under Sec-
retary of Defense for Intelligence, in consultation with the 
Intelligence, Surveillance, and Reconnaissance Integration 
Council and the Director of Central Intelligence, shall de-
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velop a comprehensive Defense Intelligence, Surveillance, 
and Reconnaissance Integration Roadmap to guide the de-
velopment and integration of the Department of Defense in-
telligence, surveillance, and reconnaissance capabilities for 
15 years. 
(e) REPORT.—(1) Not later than September 30, 2004, 
the Under Secretary of Defense for Intelligence shall submit 
to the committees of Congress specified in paragraph (2) 
a report on the Defense Intelligence, Surveillance, and Re-
connaissance Integration Roadmap developed under sub-
section (d). The report shall include the following matters: 
(A) The fundamental goals established in the 
roadmap. 
(B) An overview of the intelligence, surveillance, 
and reconnaissance integration activities of the mili-
tary departments and the intelligence agencies of the 
Department of Defense. 
(C) An investment strategy for achieving—
(i) an integration of Department of Defense 
intelligence, surveillance, and reconnaissance ca-
pabilities that ensures sustainment of needed tac-
tical and operational efforts; and 
(ii) efficient investment in new intelligence, 
surveillance, and reconnaissance capabilities.
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(D) A discussion of how intelligence gathered 
and analyzed by the Department of Defense can en-
hance the role of the Department of Defense in ful-
filling its homeland security responsibilities. 
(E) A discussion of how counterintelligence ac-
tivities of the Armed Forces and the Department of 
Defense intelligence agencies can be better integrated. 
(F) Recommendations on how annual funding 
authorizations and appropriations can be optimally 
structured to best support the development of a fully 
integrated Department of Defense intelligence, surveil-
lance, and reconnaissance architecture. 
(2) The committees of Congress referred to in para-
graph (1) are as follows: 
(A) The Committee on Armed Services, the Com-
mittee on Appropriations, and the Select Committee 
on Intelligence of the Senate. 
(B) The Committee on Armed Services, the Com-
mittee on Appropriations, and the Permanent Select 
Committee on Intelligence of the House of Representa-
tives. 
SEC. 925. ESTABLISHMENT OF THE NATIONAL GUARD OF 
THE NORTHERN MARIANA ISLANDS. 
(a) ESTABLISHMENT.—The Secretary of Defense may 
cooperate with the Governor of the Northern Mariana Is-
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lands to establish the National Guard of the Northern Mar-
iana Islands, and may integrate into the Army National 
Guard of the United States and the Air National Guard 
of the United States the members of the National Guard 
of the Northern Mariana Islands who are granted Federal 
recognition under title 32, United States Code. 
(b) AMENDMENTS TO TITLE 10.—(1) Section 101 of 
title 10, United States Code, is amended—
(A) in subsection (c), by inserting ‘‘the Northern 
Mariana Islands,’’ after ‘‘Puerto Rico,’’ in para-
graphs (2) and (4); and 
(B) in subsection (d)(5), by inserting ‘‘the Com-
monwealth of the Northern Mariana Islands,’’ after 
‘‘the Commonwealth of Puerto Rico,’’. 
(2) Section 10001 of such title is amended by inserting 
‘‘the Commonwealth of the Northern Mariana Islands,’’ 
after ‘‘the Commonwealth of Puerto Rico,’’. 
(c) AMENDMENTS TO TITLE 32.—Title 32, United 
States Code, is amended as follows: 
(1) Section 101 is amended—
(A) in paragraphs (4) and (6), by inserting 
‘‘, the Northern Mariana Islands,’’ after ‘‘Puerto 
Rico’’; and 
(B) in paragraph (19), by inserting ‘‘the 
Commonwealth of the Northern Mariana Is-
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lands,’’ after ‘‘the Commonwealth of Puerto 
Rico,’’. 
(2) Section 103 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(3) Section 104 is amended—
(A) in subsection (a), by striking ‘‘and 
Puerto Rico’’ and inserting ‘‘, Puerto Rico, and 
the Northern Mariana Islands’’; and 
(B) in subsections (c) and (d), by inserting 
‘‘, the Northern Mariana Islands,’’ after ‘‘Puerto 
Rico’’. 
(4) Section 107(b) is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(5) Section 109 is amended by inserting ‘‘the 
Northern Mariana Islands’’ in subsections (a), (b), 
and (c) after ‘‘Puerto Rico,’’. 
(6) Section 112(i)(3) is amended by inserting 
‘‘the Commonwealth of the Northern Mariana Is-
lands,’’ after ‘‘the Commonwealth of Puerto Rico,’’. 
(7) Section 304 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘or of Puerto Rico’’ 
in the sentence following the oath. 
(8) Section 314 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’ in 
subsections (a) and (d).
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(9) Section 315 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’ each 
place it appears. 
(10) Section 325(a) is amended by inserting ‘‘, 
the Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(11) Section 501(b) is amended by inserting ‘‘, 
the Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(12) Section 503(b) is amended by inserting ‘‘, 
the Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(13) Section 504(b) is amended by inserting ‘‘, 
the Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(14) Section 505 is amended by inserting ‘‘or the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico,’’ in 
the first sentence. 
(15) Section 509(l)(1) is amended by inserting 
‘‘the Commonwealth of the Northern Mariana Is-
lands,’’ after ‘‘the Commonwealth of Puerto Rico,’’. 
(16) Section 702 is amended—
(A) in subsection (a), by inserting ‘‘, or the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’; 
and 
(B) in subsections (b), (c), and (d), by in-
serting ‘‘, the Northern Mariana Islands,’’ after 
‘‘Puerto Rico’’.
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(17) Section 703 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’ in 
subsections (a) and (b). 
(18) Section 704 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’ in 
subsections (a) and (b). 
(19) Section 708 is amended—
(A) in subsection (a), by striking ‘‘and 
Puerto Rico,’’ and inserting ‘‘Puerto Rico, and 
the Northern Mariana Islands,’’; and 
(B) in subsection (d), by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(20) Section 710 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’ each 
place it appears in subsections (c), (d)(3), (e), and 
(f)(1). 
(21) Section 711 is amended by inserting ‘‘, the 
Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(22) Section 712(1) is amended by inserting ‘‘, 
the Northern Mariana Islands,’’ after ‘‘Puerto Rico’’. 
(23) Section 715(c) is amended by striking ‘‘or 
the District of Columbia or Puerto Rico,’’ and insert-
ing ‘‘, the District of Columbia, Puerto Rico, or the 
Northern Mariana Islands’’.
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(d) AMENDMENTS TO TITLE 37.—Section 101 of title 
37, United States Code, is amended by striking ‘‘the Canal 
Zone,’’ in paragraphs (7) and (9) and inserting ‘‘the North-
ern Mariana Islands,’’. 
(e) OTHER REFERENCES.—Any reference that is made 
in any other provision of law or in any regulation of the 
United States to a State, or to the Governor of a State, 
in relation to the National Guard (as defined in section 
101(3) of title 32, United States Code) shall be considered 
to include a reference to the Commonwealth of the Northern 
Mariana Islands or to the Governor of the Northern Mar-
iana Islands, respectively. 
TITLE X—GENERAL PROVISIONS 
Subtitle A—Financial Matters 
SEC. 1001. TRANSFER AUTHORITY. 
(a) AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) 
Upon determination by the Secretary of Defense that such 
action is necessary in the national interest, the Secretary 
may transfer amounts of authorizations made available to 
the Department of Defense in this division for fiscal year 
2004 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.
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(2) The total amount of authorizations that the Sec-
retary may transfer under the authority of this section may 
not exceed $3,000,000,000. 
(b) LIMITATIONS.—The authority provided by this sec-
tion 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 trans-
fer made from one account to another under the authority 
of this section shall be deemed to increase the amount au-
thorized 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 sub-
section (a). 
SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COM-
MON-FUNDED BUDGETS IN FISCAL YEAR 2004. 
(a) FISCAL
YEAR
2004 LIMITATION.—The total 
amount contributed by the Secretary of Defense in fiscal 
year 2004 for the common-funded budgets of NATO may 
be any amount up to, but not in excess of, the amount speci-
fied in subsection (b) (rather than the maximum amount
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that would otherwise be applicable to those contributions 
under the fiscal year 1998 baseline limitation). 
(b) TOTAL AMOUNT.—The amount of the limitation 
applicable under subsection (a) is the sum of the following: 
(1) The amounts of unexpended balances, as of 
the end of fiscal year 2003, of funds appropriated for 
fiscal years before fiscal year 2004 for payments for 
those budgets. 
(2) The amount specified in subsection (c)(1). 
(3) The amount specified in subsection (c)(2). 
(4) The total amount of the contributions author-
ized to be made under section 2501. 
(c) AUTHORIZED AMOUNTS.—Amounts authorized to 
be appropriated by titles II and III of this Act are available 
for contributions for the common-funded budgets of NATO 
as follows: 
(1) Of the amount provided in section 201(1), 
$853,000 for the Civil Budget. 
(2) Of the amount provided in section 301(1), 
$207,125,000 for the Military Budget. 
(d) DEFINITIONS.—For purposes of this section: 
(1) COMMON-FUNDED BUDGETS OF NATO.—The 
term ‘‘common-funded budgets of NATO’’ means the 
Military Budget, the Security Investment Program, 
and the Civil Budget of the North Atlantic Treaty Or-
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ganization (and any successor or additional account 
or program of NATO). 
(2) FISCAL YEAR 1998 BASELINE LIMITATION.—
The term ‘‘fiscal year 1998 baseline limitation’’ 
means the maximum annual amount of Department 
of Defense contributions for common-funded budgets of 
NATO that is set forth as the annual limitation in 
section 3(2)(C)(ii) of the resolution of the Senate giv-
ing the advice and consent of the Senate to the ratifi-
cation of the Protocols to the North Atlantic Treaty 
of 1949 on the Accession of Poland, Hungary, and the 
Czech Republic (as defined in section 4(7) of that res-
olution), approved by the Senate on April 30, 1998. 
SEC. 1003. AUTHORIZATION OF SUPPLEMENTAL APPRO-
PRIATIONS FOR FISCAL YEAR 2003. 
(a) DOD AND DOE AUTHORIZATIONS.—Amounts au-
thorized to be appropriated to the Department of Defense 
and the Department of Energy for fiscal year 2003 in the 
Bob Stump National Defense Authorization Act for Fiscal 
Year 2003 (Public Law 107–314) 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 of Public Law 108–11.
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(b) REPORT ON FISCAL YEAR 2003 TRANSFERS.—Not 
later than 30 days after the end of each fiscal quarter for 
which unexpended balances of funds appropriated under 
title I of Public Law 108–11 are available for the Depart-
ment of Defense, the Secretary of Defense shall submit to 
the congressional defense committees a report stating, for 
each transfer of such funds during such fiscal quarter of 
an amount provided for the Department of Defense through 
a so-called ‘‘transfer account’’, including the Iraqi Freedom 
Fund or any other similar account—
(1) the amount of the transfer; 
(2) the appropriation account to which the 
transfer was made; and 
(3) the specific purpose for which the transferred 
funds were used or are to be used. 
Subtitle B—Improvement of Travel 
Card Management 
SEC. 1011. MANDATORY DISBURSEMENT OF TRAVEL AL-
LOWANCES 
DIRECTLY 
TO 
TRAVEL 
CARD 
CREDITORS. 
Section 2784a(a) of title 10, United States Code, is 
amended—
(1) in paragraph (1), by striking ‘‘The Secretary 
of Defense may require’’ and inserting ‘‘The Secretary 
of Defense shall require’’;
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(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) The Secretary of Defense may waive the require-
ment for a direct payment to a travel care issuer under 
paragraph (1) in any case in which it is determined under 
regulations prescribed by the Secretary that the direct pay-
ment would be against equity and good conscience or would 
be contrary to the best interests of the United States.’’. 
SEC. 1012. DETERMINATIONS OF CREDITWORTHINESS FOR 
ISSUANCE OF DEFENSE TRAVEL CARD. 
Section 2784a of title 10, United States Code, is 
amended—
(1) by redesignating subsections (d) and (e) as 
subsections (e) and (f), respectively; and 
(2) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) DETERMINATIONS OF CREDITWORTHINESS FOR 
ISSUANCE OF DEFENSE TRAVEL CARD.—(1) The Secretary 
of Defense shall require that the creditworthiness of an indi-
vidual be evaluated before a Defense travel card is issued 
to the individual. The evaluation may include an examina-
tion of the individual’s credit history in available credit 
records.
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‘‘(2) An individual may not be issued a Defense travel 
card if the individual is found not creditworthy as a result 
of the evaluation required under paragraph (1).’’. 
SEC. 1013. DISCIPLINARY ACTIONS AND ASSESSING PEN-
ALTIES FOR MISUSE OF DEFENSE TRAVEL 
CARDS. 
(a) REQUIREMENT FOR GUIDANCE.—The Secretary of 
Defense shall prescribe guidelines and procedures for mak-
ing determinations regarding the taking of disciplinary ac-
tion, including assessment of penalties, against Department 
of Defense personnel for improper, fraudulent, or abusive 
use of Defense travel cards by such personnel. 
(b) ACTIONS COVERED.—The disciplinary actions and 
penalties covered by the guidance and procedures prescribed 
under subsection (a) may include the following: 
(1) Civil actions for false claims under sections 
3729 through 3731 of title 31, United States Code. 
(2) Administrative remedies for false claims and 
statements provided under chapter 38 of title 31, 
United States Code. 
(3) In the case of civilian personnel, adverse per-
sonnel actions under chapter 75 of title 5, United 
States Code, and any other disciplinary actions 
available under law for employees of the United 
States.
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(4) In the case of members of the Armed Forces, 
disciplinary actions and penalties under chapter 47 
of title 10, United States Code (the Uniform Code of 
Military Justice). 
(c) REPORT.—Not later than February 1, 2004, the 
Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representa-
tives a report on the guidelines and penalties prescribed 
under subsection (a). The report shall include the following: 
(1) The guidelines and penalties. 
(2) A discussion of the implementation of the 
guidelines and penalties. 
(3) A discussion of any additional administra-
tive action, or any recommended legislation, that the 
Secretary considers necessary to effectively take dis-
ciplinary action against and penalize Department of 
Defense personnel for improper, fraudulent, or abu-
sive use of Defense travel cards by such personnel. 
(d) DEFENSE TRAVEL CARD DEFINED.—In this sec-
tion, the term ‘‘Defense travel card’’ has the meaning given 
such term in section 2784a(d)(1) of title 10, United States 
Code.
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Subtitle C—Reports 
SEC. 1021. ELIMINATION AND REVISION OF VARIOUS RE-
PORTING REQUIREMENTS APPLICABLE TO 
THE DEPARTMENT OF DEFENSE. 
(a) PROVISIONS OF TITLE 10.—Title 10, United States 
Code, is amended as follows: 
(1) Section 128 is amended by striking sub-
section (d). 
(2) Section 437 is amended—
(A) by striking subsection (b); and 
(B) in subsection (c)—
(i) by striking ‘‘and’’ at the end of 
paragraph (2); 
(ii) by striking the period at the end of 
paragraph (3) and inserting ‘‘; and’’; and 
(iii) by adding at the end the following 
new paragraph: 
‘‘(4) a description of each corporation, partner-
ship, and other legal entity that was established dur-
ing such fiscal year.’’. 
(3)(A) Section 520c is amended—
(i) by striking subsection (b); 
(ii) by striking ‘‘(a) PROVISION OF MEALS 
AND REFRESHMENTS.—’’; and
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(iii) by striking the heading for such section 
and inserting the following: 
‘‘§ 520c. Provision of meals and refreshments for re-
cruiting purposes’’. 
(B) The item relating to such section in the table 
of sections at the beginning of chapter 31 of such title 
is amended to read as follow:
‘‘520c. Provision of meals and refreshments for recruiting purposes.’’.
(4) Section 986 is amended by striking sub-
section (e). 
(5) Section 1060 is amended by striking sub-
section (d). 
(6) Section 2212 is amended by striking sub-
sections (d) and (e). 
(7) Section 2224 is amended by striking sub-
section (e). 
(8) Section 2255(b) is amended—
(A) by striking paragraph (2); 
(B) by striking ‘‘(b) EXCEPTION.—(1)’’ and 
inserting ‘‘(b) EXCEPTION.—’’; 
(C) by redesignating subparagraphs (A) 
and (B) as paragraphs (1) and (2), respectively; 
and 
(D) by redesignating clauses (i), (ii), and 
(iii) as subparagraphs (A), (B), and (C), respec-
tively.
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(9) Section 2323(i) is amended by striking para-
graph (3). 
(10) Section 2350a is amended by striking sub-
section (f). 
(11) Section 2350b(d) is amended—
(A) by striking paragraphs (1) and (2) and 
inserting the following new paragraph: 
‘‘(1) Not later than 90 days after the end of each fiscal 
year in which the Secretary of Defense has authority dele-
gated as described in subsection (a), the Secretary shall sub-
mit to Congress a report on the administration of such au-
thority under this section. The report for a fiscal year shall 
include the following information: 
‘‘(A) Each prime contract that the Secretary re-
quired to be awarded to a particular prime contractor 
during such fiscal year, and each subcontract that the 
Secretary required be awarded to a particular subcon-
tractor during such fiscal year, to comply with a co-
operative agreement, together with the reasons that 
the Secretary exercised authority to designate a par-
ticular contractor or subcontractor, as the case may 
be. 
‘‘(B) Each exercise of the waiver authority under 
subsection (c) during such fiscal year, including the
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particular provision or provisions of law that were 
waived.’’; and 
(B) by redesignating paragraph (3) as 
paragraph (2). 
(12) Section 2371(h) is amended by adding at 
the end the following new paragraph: 
‘‘(3) No report is required under this section for fiscal 
years after fiscal year 2006.’’. 
(13) Section 2515(d) is amended—
(A) by striking ‘‘ANNUAL REPORT.—’’ and 
inserting ‘‘BIENNIAL REPORT.—’’; and 
(B) in paragraph (1)—
(i) in the second sentence, by striking 
‘‘each year’’ and inserting ‘‘each even-num-
bered year’’; and 
(ii) in the third sentence, by striking 
‘‘during the fiscal year’’ and inserting 
‘‘during the two fiscal years’’. 
(14) Section 2541d is amended—
(A) by striking subsection (b); and 
(B) by striking ‘‘(a) REPORT BY COMMER-
CIAL FIRMS TO SECRETARY OF DEFENSE.—’’. 
(15) Section 2645(d) is amended—
(A) by striking ‘‘to Congress’’ and all that 
follows through ‘‘notification of the loss’’ in
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paragraph (1) and inserting ‘‘to Congress notifi-
cation of the loss’’; 
(B) by striking ‘‘loss; and’’ and inserting 
‘‘loss.’’; and 
(C) by striking paragraph (2). 
(16) Section 2680 is amended by striking sub-
section (e). 
(17) Section 2688(e) is amended to read as fol-
lows: 
‘‘(e) QUARTERLY REPORT.—(1) Not later than 30 days 
after the end of each quarter of a fiscal year, the Secretary 
shall submit to the congressional defense committees a re-
port on the conveyances made under subsection (a) during 
such fiscal quarter. The report shall include, for each such 
conveyance, an economic analysis (based upon accepted life-
cycle costing procedures approved by the Secretary of De-
fense) demonstrating that—
‘‘(A) the long-term economic benefit of the con-
veyance to the United States exceeds the long-term 
economic cost of the conveyance to the United States; 
and 
‘‘(B) the conveyance will reduce the long-term 
costs of the United States for utility services provided 
by the utility system concerned.
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‘‘(2) In this section, the term ‘congressional defense 
committees’ means the following: 
‘‘(A) The Committee on Armed Services and the 
Committee on Appropriations of the Senate. 
‘‘(B) The Committee on Armed Services and the 
Committee on Appropriations of the House of Rep-
resentatives.’’. 
(18) Section 2807(b) is amended by striking 
‘‘$500,000’’ and inserting ‘‘$1,000,000’’. 
(19) Section 2827 is amended—
(A) by striking subsection (b); and 
(B) by striking ‘‘(a) Subject to subsection 
(b), the Secretary’’ and inserting ‘‘The Sec-
retary’’. 
(20) Section 2902(g) is amended—
(A) by striking paragraph (2); and 
(B) by striking ‘‘(g)(1)’’ and inserting 
‘‘(g)’’. 
(21) Section 9514 is amended—
(A) in subsection (c)—
(i) by striking ‘‘to Congress’’ and all 
that follows through ‘‘notification of the 
loss’’ in paragraph (1) and inserting ‘‘to 
Congress notification of the loss’’;
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(ii) by striking ‘‘loss; and’’ and insert-
ing ‘‘loss.’’; and 
(iii) by striking paragraph (2); and 
(B) by striking subsection (f). 
(b) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEARS 1992 AND 1993.—Section 734 of the Na-
tional Defense Authorization Act for Fiscal Years 1992 and 
1993 (Public Law 102–190; 105 Stat. 1411; 10 U.S.C. 1074 
note) is amended by striking subsection (c). 
(c) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1993.—Section 324 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102–
484; 106 Stat. 2367; 10 U.S.C. 2701 note) is amended—
(1) by striking subsection (b); and 
(2) in subsection (a), by striking ‘‘(a) SENSE OF 
CONGRESS.—’’. 
(d) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 1995.—Section 721 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103–
337; 108 Stat. 2804; 10 U.S.C. 1074 note) is amended by 
striking subsection (h). 
(e) NATIONAL DEFENSE AUTHORIZATION ACT
FOR 
FISCAL YEAR 1997.—Section 324(c) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104–
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201; 110 Stat. 2480; 10 U.S.C. 2706 note) is amended by 
inserting ‘‘before 2006’’ after ‘‘submitted to Congress’’. 
(f) STROM THURMOND NATIONAL DEFENSE AUTHOR-
IZATION ACT FOR FISCAL YEAR 1999.—The Strom Thur-
mond National Defense Authorization Act for Fiscal Year 
1999 (Public Law 105–261) is amended—
(1) in section 745(e) (112 Stat. 2078; 10 U.S.C. 
1071 note)—
(A) by striking paragraph (2); and 
(B) by striking ‘‘TRICARE.—(1) The’’ and 
inserting ‘‘TRICARE.—The’’ ; and 
(2) effective on January 1, 2004, by striking sec-
tion 1223 (112 Stat. 2154; 22 U.S.C. 1928 note). 
(g) NATIONAL DEFENSE AUTHORIZATION ACT FOR 
FISCAL YEAR 2000.—The National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106–65) is amend-
ed—
(1) by striking section 1025 (113 Stat. 748; 10 
U.S.C. 113 note); 
(2) in section 1039 (113 Stat. 756; 10 U.S.C. 
113 note), by striking subsection (b); and 
(3) in section 1201 (113 Stat. 779; 10 U.S.C. 
168 note) by striking subsection (d). 
(h) DEPARTMENT OF DEFENSE AND EMERGENCY SUP-
PLEMENTAL APPROPRIATIONS FOR RECOVERY FROM AND
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RESPONSE
TO TERRORIST ATTACKS
ON
THE UNITED 
STATES ACT, 2002.—Section 8009 of the Department of De-
fense and Emergency Supplemental Appropriations for Re-
covery from and Response to Terrorist Attacks on the 
United States Act, 2002 (Public Law 107–117; 115 Stat. 
2249) is amended by striking ‘‘, and these obligations shall 
be reported to the Congress as of September 30 of each 
year’’. 
SEC. 1022. GLOBAL STRIKE PLAN. 
(a) 
INTEGRATED
PLAN
FOR
PROMPT
GLOBAL 
STRIKE.—The Secretary of Defense shall prescribe an inte-
grated plan for developing, deploying, and sustaining a 
prompt global strike capability in the Armed Forces. The 
Secretary shall update the plan annually. 
(b) REPORTS REQUIRED.—(1) Not later than April 1 
of each of 2004, 2005, and 2006, the Secretary shall submit 
to the congressional defense committees a report on the plan 
prescribed under subsection (a). 
(2) Each report required under paragraph (1) shall 
include the following: 
(A) A description and assessment of the targets 
against which long-range strike assets might be di-
rected and the conditions under which the assets 
might be used.
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(B) The role of, and plans for ensuring, 
sustainment and modernization of current long-range 
strike assets, including bombers, intercontinental bal-
listic missiles, and submarine launched ballistic mis-
siles. 
(C) A description of the capabilities desired for 
advanced long-range strike assets and plans to achieve 
those capabilities. 
(D) A description of the capabilities desired for 
advanced conventional munitions and the plans to 
achieve those capabilities. 
(E) An assessment of advanced nuclear concepts 
that could contribute to the prompt global strike mis-
sion. 
(F) An assessment of the command, control, and 
communications capabilities necessary to support 
prompt global strike capabilities. 
(G) An assessment of intelligence, surveillance, 
and reconnaissance capabilities necessary to support 
prompt global strike capabilities. 
(H) A description of how prompt global strike 
capabilities are to be integrated with theater strike 
capabilities. 
(I) An estimated schedule for achieving the de-
sired prompt global strike capabilities.
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(J) The estimated cost of achieving the desired 
prompt global strike capabilities. 
(K) A description of ongoing and future studies 
necessary for updating the plan appropriately. 
SEC. 1023. REPORT ON THE CONDUCT OF OPERATION 
IRAQI FREEDOM. 
(a) REPORT REQUIRED.—(1) The Secretary of Defense 
shall summit to the congressional defense committees, not 
later than March 31, 2004, a report on the conduct of mili-
tary operations under Operation Iraqi Freedom. 
(2) The report shall be prepared in consultation with 
the Chairman of the Joint Chiefs of Staff, the Commander 
of the United States Central Command, and such other offi-
cials as the Secretary considers appropriate. 
(b) CONTENT.—(1) The report shall include a discus-
sion of the matters described in paragraph (2), with a par-
ticular emphasis on accomplishments and shortcomings and 
on near-term and long-term corrective actions to address 
the shortcomings. 
(2) The matters to be discussed in the report are as 
follows: 
(A) The military objectives of the international 
coalition conducting Operation Iraqi Freedom, the 
military strategy selected to achieve the objectives,
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and an assessment of the execution of the military 
strategy. 
(B) The deployment process, including the 
adaptability of the process to unforeseen contingencies 
and changing requirements. 
(C) The reserve component mobilization process, 
including the timeliness of notification, training, and 
subsequent demobilization. 
(D) The use and performance of major items of 
United States military equipment, weapon systems, 
and munitions (including items classified under spe-
cial access procedures and items drawn from 
prepositioned stocks) and any expected effects of the 
experience with the use and performance of those 
items on the doctrinal and tactical employment of 
such items and on plans for continuing the acquisi-
tion of such items. 
(E) Any additional identified requirements for 
military equipment, weapon systems, and munitions, 
including mix and quantity for future contingencies. 
(F) The effectiveness of joint air operations, in-
cluding the doctrine for the employment of close air 
support in the varied environments of Operation 
Iraqi Freedom, and the effectiveness of attack heli-
copter operations.
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HR 1588 EAS/PP 
(G) The use of special operations forces, includ-
ing operational and intelligence uses. 
(H) The scope of logistics support, including 
support from other nations. 
(I) The incidents of accidental fratricide, to-
gether with a discussion of the effectiveness of the 
tracking of friendly forces and of the combat identi-
fication systems in mitigating friendly fire incidents. 
(J) The adequacy of spectrum and bandwidth to 
transmit all necessary information to operational 
forces and assets, including unmanned aerial vehicles, 
ground vehicles, and individual soldiers. 
(K) The effectiveness of information operations, 
including the effectiveness of Commando Solo and 
other psychological operations assets, in achieving es-
tablished objectives, together with a description of 
technological and other restrictions on the use of psy-
chological operations capabilities. 
(L) The effectiveness of the reserve component 
forces used in Operation Iraqi Freedom. 
(M) The adequacy of intelligence support to the 
warfighter before, during, and after combat oper-
ations, including the adequacy of such support to fa-
cilitate searches for weapons of mass destruction.