H. R. 4986—150 
(2) in subsection (e)(1), by striking ‘‘the end of 26 years 
of commissioned service’’ and inserting ‘‘the maximum number 
of years of commissioned service authorized by subsection 
(a)(3)’’. 
(b) EFFECT ON EXISTING AGREEMENTS.—The Secretary of the 
Navy and an officer of the naval service who is a party to an 
agreement under section 312 of title 37, United States Code, that 
was entered into before the date of the enactment of this Act 
may revise the agreement to reflect the new limitation on the 
number of years of commissioned service that the officer may serve 
while remaining eligible for special pay under such section. 
SEC. 622. WAIVER OF YEARS-OF-SERVICE LIMITATION ON RECEIPT OF 
CRITICAL SKILLS RETENTION BONUS. 
Section 323(e) of title 37, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(4) The Secretary of Defense, or the Secretary of Homeland 
Security with respect to the Coast Guard when it is not operating 
as a service in the Navy, may waive the limitations in paragraph 
(1) with respect to a member who, during the period of active 
duty or service in an active status in a reserve component for 
which the bonus is being offered, is assigned duties in a skill 
designated as critical under subsection (b)(1). The authority to 
grant a waiver under this paragraph may not be delegated below 
the Under Secretary of Defense for Personnel and Readiness or 
the Deputy Secretary of the Department of Homeland Security.’’. 
SEC. 623. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED 
FORCES 
HEALTH 
PROFESSIONS 
SCHOLARSHIP 
AND 
FINANCIAL ASSISTANCE PROGRAM. 
(a) ACCESSION BONUS AUTHORIZED.—Subchapter I of chapter 
105 of title 10, United States Code, is amended by adding at 
the end the following new section: 
‘‘§ 2128. Accession bonus for members of the program 
‘‘(a) AVAILABILITY OF BONUS.—The Secretary of Defense may 
offer a person who enters into an agreement under section 
2122(a)(2) of this title an accession bonus of not more than $20,000 
as part of the agreement. 
‘‘(b) RELATION TO OTHER PAYMENTS.—An accession bonus paid 
a person under this section is in addition to any other amounts 
payable to the person under this subchapter. 
‘‘(c) REPAYMENT.—A person who receives an accession bonus 
under this section, but fails to comply with the agreement under 
section 2122(a)(2) of this title or to commence or complete the 
active duty obligation imposed by section 2123 of this title, shall 
be subject to the repayment provisions of section 303a(e) of title 
37.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such subchapter is amended by adding at the end the 
following new item: 
‘‘2128. Accession bonus for members of the program.’’. 
(c) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to agreements entered into under section 
2122(a)(2) of title 10, United States Code, on or after the date 
of the enactment of this Act.
H. R. 4986—151 
SEC. 624. PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE 
MEMBERS SERVING IN COMBAT ZONE FOR MORE THAN 
22 MONTHS. 
(a) PAYMENT.—The Secretary of a military department may 
pay assignment incentive pay under section 307a of title 37, United 
States Code, to a member of a reserve component under the jurisdic-
tion of the Secretary for each month during the eligibility period 
of the member determined under subsection (b) during which the 
member served for any portion of the month in a combat zone 
associated with Operating Enduring Freedom or Operation Iraqi 
Freedom in excess of 22 months of qualifying service. 
(b) ELIGIBILITY PERIOD.—The eligibility period for a member 
extends from January 1, 2005, through the end of the active duty 
service of the member in a combat zone associated with Operating 
Enduring Freedom or Operation Iraqi Freedom if the service on 
active duty during the member’s most recent period of mobilization 
to active duty began before January 19, 2007. 
(c) AMOUNT OF PAYMENT.—The monthly rate of incentive pay 
payable to a member under this section is $1,000. 
(d) QUALIFYING SERVICE.—For purposes of this section, quali-
fying service includes cumulative mobilized service on active duty 
under sections 12301(d), 12302, and 12304 of title 10, United States 
Code, during the period beginning on January 1, 2003, through 
the end of the member’s active duty service during the member’s 
most recent period of mobilization to active duty beginning before 
January 19, 2007. 
Subtitle C—Travel and Transportation 
Allowances 
SEC. 631. PAYMENT OF INACTIVE DUTY TRAINING TRAVEL COSTS FOR 
CERTAIN SELECTED RESERVE MEMBERS. 
(a) PAYMENT OF TRAVEL COSTS AUTHORIZED.— 
(1) IN GENERAL.—Chapter 7 of title 37, United States Code, 
is amended by inserting after section 408 the following new 
section: 
‘‘§ 408a. Travel and transportation allowances: inactive duty 
training outside of normal commuting distances 
‘‘(a) ALLOWANCE AUTHORIZED.—The Secretary concerned may 
reimburse an eligible member of the Selected Reserve of the Ready 
Reserve for travel expenses for travel to an inactive duty training 
location to perform inactive duty training when the member is 
required to commute a distance from the member’s permanent 
residence to the inactive duty training location that is outside 
the normal commuting distance (as determined under the regula-
tions prescribed under subsection (d)) for that commute. 
‘‘(b) ELIGIBLE MEMBERS.—To be eligible for reimbursement 
under subsection (a), a member of the Selected Reserve of the 
Ready Reserve must be— 
‘‘(1) qualified in a skill designated as critically short by 
the Secretary concerned; 
‘‘(2) assigned to a unit of the Selected Reserve with a 
critical manpower shortage or in a pay grade in the member’s 
reserve component with a critical manpower shortage; or
H. R. 4986—152 
‘‘(3) assigned to a unit or position that is disestablished 
or relocated as a result of defense base closure or realignment 
or another force structure reallocation. 
‘‘(c) MAXIMUM
REIMBURSEMENT
AMOUNT.—The amount of 
reimbursement provided a member under subsection (a) for each 
round trip to a training location may not exceed $300. 
‘‘(d) REGULATIONS.—The Secretary 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. 
‘‘(e) TERMINATION.—No reimbursement may be provided under 
this section for travel that occurs after December 31, 2010.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 7 of such title is amended by inserting 
after the item relating to section 408 the following new item: 
‘‘408a. Travel and transportation allowances: inactive duty training outside of nor-
mal commuting distances.’’. 
(b) APPLICATION OF AMENDMENT.—No reimbursement may be 
provided under section 408a of title 37, United States Code, as 
added by subsection (a), for travel costs incurred before the date 
of the enactment of this Act. 
SEC. 632. SURVIVORS OF DECEASED MEMBERS ELIGIBLE FOR 
TRANSPORTATION TO ATTEND BURIAL CEREMONIES. 
(a) ELIGIBLE RELATIVES.—Paragraph (1) of section 411f(c) of 
title 37, United States Code, is amended— 
(1) by striking subparagraph (B) and inserting the following 
new subparagraph: 
‘‘(B) The child or children of the deceased member 
(including stepchildren, adopted children, and illegitimate chil-
dren).’’; and 
(2) by adding at the end the following new subparagraphs: 
‘‘(D) The sibling or siblings of the deceased member. 
‘‘(E) The person who directs the disposition of the remains 
of the deceased member under section 1482(c) of title 10 or, 
in the case of a deceased member whose remains are commin-
gled and buried in a common grave in a national cemetery, 
the person who would have been designated under such section 
to direct the disposition of the remains if individual identifica-
tion had been made.’’. 
(b) OTHER PERSONS.—Paragraph (2) of such section is amended 
to read as follows: 
‘‘(2) If no person described in subparagraphs (A) through (D) 
of paragraph (1) is provided travel and transportation allowances 
under subsection (a)(1), the travel and transportation allowances 
may be provided to one or two other persons who are closely 
related to the deceased member and are selected by the person 
referred to in paragraph (1)(E). A person provided travel and 
transportation allowances under this paragraph is in addition to 
the person referred to in paragraph (1)(E).’’. 
SEC. 633. ALLOWANCE FOR PARTICIPATION OF RESERVES IN ELEC-
TRONIC SCREENING. 
(a) 
ALLOWANCE
FOR
PARTICIPATION
IN
ELECTRONIC 
SCREENING.—
H. R. 4986—153 
(1) IN GENERAL.—Chapter 7 of title 37, United States Code, 
is amended by inserting after section 433 the following new 
section: 
‘‘§ 433a. Allowance for participation in Ready Reserve 
screening 
‘‘(a) ALLOWANCE
AUTHORIZED.—(1) Under regulations pre-
scribed by the Secretaries concerned, a member of the Individual 
Ready Reserve may be paid a stipend for participation in the 
screening performed pursuant to section 10149 of title 10, in lieu 
of muster duty performed under section 12319 of title 10, if such 
participation is conducted through electronic means. 
‘‘(2) The stipend paid a member under this section shall con-
stitute the sole monetary allowance authorized for participation 
in the screening described in paragraph (1), and shall constitute 
payment in full to the member for participation in such screening, 
regardless of the grade or rank in which the member is serving. 
‘‘(b) MAXIMUM PAYMENT.—The aggregate amount of the stipend 
paid a member of the Individual Ready Reserve under this section 
in any calendar year may not exceed $50. 
‘‘(c) PAYMENT REQUIREMENTS.—(1) The stipend authorized by 
this section may not be disbursed in kind. 
‘‘(2) Payment of a stipend to a member of the Individual Ready 
Reserve under this section for participation in screening shall be 
made on or after the date of participation in such screening, but 
not later than 30 days after such date.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 7 of such title is amended by inserting 
after the item relating to section 433 the following new item: 
‘‘433a. Allowance for participation in Ready Reserve screening.’’. 
(b) BAR TO DUAL COMPENSATION.—Section 206 of such title 
is amended by adding at the end the following new subsection: 
‘‘(f) A member of the Individual Ready Reserve is not entitled 
to compensation under this section for participation in screening 
for which the member is paid a stipend under section 433a of 
this title.’’. 
(c) BAR TO RETIREMENT CREDIT.—Section 12732(b) of title 10, 
United States Code, is amended by adding at the end the following 
new paragraph: 
‘‘(8) Service in the screening performed pursuant to section 
10149 of this title through electronic means, regardless of 
whether or not a stipend is paid the member concerned for 
such service under section 433a of title 37.’’. 
SEC. 634. ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF 
THE ARMED FORCES TRAVELING IN CONNECTION WITH 
MEDICAL EVACUATION. 
Section 1047(a) of title 10, United States Code, is amended 
by inserting ‘‘and luggage’’ after ‘‘civilian clothing’’ both places it 
appears. 
SEC. 635. PAYMENT OF MOVING EXPENSES FOR JUNIOR RESERVE 
OFFICERS’ TRAINING CORPS INSTRUCTORS IN HARD-TO- 
FILL POSITIONS. 
Section 2031 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
H. R. 4986—154 
‘‘(f)(1) When determined by the Secretary of the military depart-
ment concerned to be in the national interest and agreed upon 
by the institution concerned, the institution may reimburse a Junior 
Reserve Officers’ Training Corps instructor for moving expenses 
incurred by the instructor to accept employment at the institution 
in a position that the Secretary concerned determines is hard- 
to-fill for geographic or economic reasons. 
‘‘(2) As a condition on providing reimbursement under para-
graph (1), the institution shall require the instructor to execute 
a written agreement to serve a minimum of two years of employ-
ment at the institution in the hard-to-fill position. 
‘‘(3) Any reimbursement provided to an instructor under para-
graph (1) is in addition to the minimum instructor pay otherwise 
payable to the instructor. 
‘‘(4) The Secretary concerned shall reimburse an institution 
providing reimbursement to an instructor under paragraph (1) in 
an amount equal to the amount of the reimbursement paid by 
the institution under that paragraph. Any reimbursement provided 
by the Secretary concerned shall be provided from funds appro-
priated for that purpose. 
‘‘(5) The provision of reimbursement under paragraph (1) or 
(4) shall be subject to regulations prescribed by the Secretary of 
Defense for purposes of this subsection.’’. 
Subtitle D—Retired Pay and Survivor 
Benefits 
SEC. 641. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION 
ELIGIBILITY. 
(a) 
EXPANDED
ELIGIBILITY
FOR
CHAPTER
MILITARY 
RETIREES.—Subsection (c) of section 1413a of title 10, United States 
Code, is amended by striking ‘‘entitled to retired pay who—’’ and 
all that follows and inserting ‘‘who— 
‘‘(1) is entitled to retired pay (other than by reason of 
section 12731b of this title); and 
‘‘(2) has a combat-related disability.’’. 
(b) COMPUTATION.—Paragraph (3) of subsection (b) of such sec-
tion is amended— 
(1) by striking ‘‘In the case of’’ and inserting the following: 
‘‘(A) GENERAL RULE.—In the case of’’; and 
(2) by adding at the end the following new subparagraph: 
‘‘(B) SPECIAL RULE FOR RETIREES WITH FEWER THAN 
20 YEARS OF SERVICE.—In the case of an eligible combat- 
related disabled uniformed services retiree who is retired 
under chapter 61 of this title with fewer than 20 years 
of creditable service, the amount of the payment under 
paragraph (1) for any month shall be reduced by the 
amount (if any) by which the amount of the member’s 
retired pay under chapter 61 of this title exceeds the 
amount equal to 21⁄2 percent of the member’s years of 
creditable service multiplied by the member’s retired pay 
base under section 1406(b)(1) or 1407 of this title, which-
ever is applicable to the member.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2008, and shall apply to payments 
for months beginning on or after that date.
H. R. 4986—155 
SEC. 642. INCLUSION OF VETERANS WITH SERVICE-CONNECTED 
DISABILITIES 
RATED 
AS 
TOTAL 
BY 
REASON 
OF 
UNEMPLOYABILITY UNDER TERMINATION OF PHASE-IN 
OF CONCURRENT RECEIPT OF RETIRED PAY AND VET-
ERANS’ DISABILITY COMPENSATION. 
(a) INCLUSION OF VETERANS.—Section 1414(a)(1) of title 10, 
United States Code, is amended by striking ‘‘except that’’ and 
all that follows and inserting ‘‘except that payment of retired pay 
is subject to subsection (c) only during the period beginning on 
January 1, 2004, and ending on December 31, 2004, in the case 
of the following: 
‘‘(A) A qualified retiree receiving veterans’ disability 
compensation for a disability rated as 100 percent. 
‘‘(B) A qualified retiree receiving veterans’ disability 
compensation at the rate payable for a 100 percent dis-
ability by reason of a determination of individual 
unemployability.’’. 
(b) EFFECTIVE DATE.— 
(1) IN GENERAL.—Subject to paragraph (2), the amendment 
made by subsection (a) shall take effect as of December 31, 
2004. 
(2) TIMING OF PAYMENT OF RETROACTIVE BENEFITS.—Any 
amount payable for a period before October 1, 2008, by reason 
of the amendment made by subsection (a) shall not be paid 
until after that date. 
SEC. 643. RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, 
BUT SUBJECT TO OFFSET FOR DEPENDENCY AND INDEM-
NITY COMPENSATION. 
(a) LIMITATION
ON
RECOUPMENT; NOTIFICATION
REQUIRE-
MENTS.—Section 1450(c) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(3) LIMITATION ON RECOUPMENT OF OFFSET AMOUNT.—Any 
amount subject to offset under this subsection that was pre-
viously paid to the surviving spouse or former spouse shall 
be recouped only to the extent that the amount paid exceeds 
any amount to be refunded under subsection (e). In notifying 
a surviving spouse or former spouse of the recoupment require-
ment, the Secretary shall provide the spouse or former spouse— 
‘‘(A) a single notice of the net amount to be recouped 
or the net amount to be refunded, as applicable, under 
this subsection or subsection (e); 
‘‘(B) a written explanation of the statutory require-
ments for recoupment of the offset amount and for refund 
of any applicable amount deducted from retired pay; 
‘‘(C) a detailed accounting of how the offset amount 
being recouped and retired pay deduction amount being 
refunded were calculated; and 
‘‘(D) contact information for a person who can provide 
information about the offset recoupment and retired pay 
deduction refund processes and answer questions the sur-
viving spouse or former spouse may have about the require-
ments, processes, or amounts.’’. 
(b) APPLICATION.—Paragraph (3) of subsection (c) of section 
1450 of title 10, United States Code, as added by subsection (a), 
shall apply with respect to the recoupment on or after April 1, 
2008, of amounts subject to offset under such subsection.
H. R. 4986—156 
SEC. 644. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR PERSONS 
AFFECTED BY REQUIRED SURVIVOR BENEFIT PLAN 
ANNUITY OFFSET FOR DEPENDENCY AND INDEMNITY 
COMPENSATION. 
Section 1450 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(m) SPECIAL SURVIVOR INDEMNITY ALLOWANCE.— 
‘‘(1) PROVISION OF ALLOWANCE.—The Secretary concerned 
shall pay a monthly special survivor indemnity allowance under 
this subsection to the surviving spouse or former spouse of 
a member of the uniformed services to whom section 1448 
of this title applies if— 
‘‘(A) the surviving spouse or former spouse is entitled 
to dependency and indemnity compensation under section 
1311(a) of title 38; 
‘‘(B) except for subsection (c) of this section, the sur-
viving spouse or former spouse is eligible for an annuity 
by reason of a participant in the Plan under section 
1448(a)(1) of this title; and 
‘‘(C) the eligibility of the surviving spouse or former 
spouse for an annuity as described in subparagraph (B) 
is affected by subsection (c) of this section. 
‘‘(2) AMOUNT OF PAYMENT.—Subject to paragraph (3), the 
amount of the allowance paid to an eligible survivor under 
paragraph (1) for a month shall be equal to— 
‘‘(A) for months during fiscal year 2009, $50; 
‘‘(B) for months during fiscal year 2010, $60; 
‘‘(C) for months during fiscal year 2011, $70; 
‘‘(D) for months during fiscal year 2012, $80; 
‘‘(E) for months during fiscal year 2013, $90; and 
‘‘(F) for months after fiscal year 2013, $100. 
‘‘(3) LIMITATION.—The amount of the allowance paid to 
an eligible survivor under paragraph (1) for any month may 
not exceed the amount of the annuity for that month that 
is subject to offset under subsection (c). 
‘‘(4) STATUS OF PAYMENTS.—An allowance paid under this 
subsection does not constitute an annuity, and amounts so 
paid are not subject to adjustment under any other provision 
of law. 
‘‘(5) SOURCE OF FUNDS.—The special survivor indemnity 
allowance shall be paid from amounts in the Department of 
Defense Military Retirement Fund established under section 
1461 of this title. 
‘‘(6) EFFECTIVE DATE AND DURATION.—This subsection shall 
only apply with respect to the month beginning on October 
1, 2008, and subsequent months through the month ending 
on February 28, 2016. Effective on March 1, 2016, the authority 
provided by this subsection shall terminate. No special survivor 
indemnity allowance may be paid to any person by reason 
of this subsection for any period before October 1, 2008, or 
beginning on or after March 1, 2016.’’. 
SEC. 645. MODIFICATION OF AUTHORITY OF MEMBERS OF THE ARMED 
FORCES TO DESIGNATE RECIPIENTS FOR PAYMENT OF 
DEATH GRATUITY. 
(a) AUTHORITY TO DESIGNATE RECIPIENTS.—Section 1477 of title 
10, United States Code, is amended—
H. R. 4986—157 
(1) by striking subsections (c) and (d); 
(2) by redesignating subsection (b) as subsection (d) and, 
in such subsection, by striking ‘‘Subsection (a)(2)’’ and inserting 
‘‘TREATMENT OF CHILDREN.—Subsection (b)(2)’’; and 
(3) by striking subsection (a) and inserting the following 
new subsections: 
‘‘(a) DESIGNATION OF RECIPIENTS.—(1) On and after July 1, 
2008, or such earlier date as the Secretary of Defense may prescribe, 
a person covered by section 1475 or 1476 of this title may designate 
one or more persons to receive all or a portion of the amount 
payable under section 1478 of this title. The designation of a person 
to receive a portion of the amount shall indicate the percentage 
of the amount, to be specified only in 10 percent increments, that 
the designated person may receive. The balance of the amount 
of the death gratuity, if any, shall be paid in accordance with 
subsection (b). 
‘‘(2) If a person covered by section 1475 or 1476 of this title 
has a spouse, but designates a person other than the spouse to 
receive all or a portion of the amount payable under section 1478 
of this title, the Secretary concerned shall provide notice of the 
designation to the spouse. 
‘‘(b) DISTRIBUTION OF REMAINDER; DISTRIBUTION IN ABSENCE 
OF DESIGNATED RECIPIENT.—If a person covered by section 1475 
or 1476 of this title does not make a designation under subsection 
(a) or designates only a portion of the amount payable under section 
1478 of this title, the amount of the death gratuity not covered 
by a designation shall be paid as follows: 
‘‘(1) To the surviving spouse of the person, if any. 
‘‘(2) If there is no surviving spouse, to any surviving chil-
dren (as prescribed by subsection (d)) of the person and the 
descendants of any deceased children by representation. 
‘‘(3) If there is none of the above, to the surviving parents 
(as prescribed by subsection (c)) of the person or the survivor 
of them. 
‘‘(4) If there is none of the above, to the duly-appointed 
executor or administrator of the estate of the person. 
‘‘(5) If there is none of the above, to other next of kin 
of the person entitled under the laws of domicile of the person 
at the time of the person’s death. 
‘‘(c) TREATMENT OF PARENTS.—For purposes of subsection (b)(3), 
parents include fathers and mothers through adoption. However, 
only one father and one mother may be recognized in any case, 
and preference shall be given to those who exercised a parental 
relationship on the date, or most nearly before the date, on which 
the decedent entered a status described in section 1475 or 1476 
of this title.’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.—Subsection (e) 
of such section is amended— 
(1) by inserting ‘‘EFFECT OF DEATH BEFORE RECEIPT OF 
GRATUITY.—’’ after ‘‘(e)’’; 
(2) by striking ‘‘subsection (a) or (d)’’ and inserting ‘‘sub-
section (a) or (b)’’; and 
(3) by striking ‘‘subsection (a).’’ and inserting ‘‘subsection 
(b)’’. 
(c) EXISTING DESIGNATION AUTHORITY.—The authority provided 
by subsection (d) of section 1477 of title 10, United States Code, 
as in effect on the day before the date of the enactment of this
H. R. 4986—158 
Act, shall remain available to persons covered by section 1475 
or 1476 of such title until July 1, 2008, or such earlier date as 
the Secretary of Defense may prescribe, and any designation under 
such subsection made before July 1, 2008, or the earlier date 
prescribed by the Secretary, shall continue in effect until such 
time as the person who made the designation makes a new designa-
tion under such section 1477, as amended by subsection (a) of 
this section. 
(d) REGULATIONS.— 
(1) IN GENERAL.—Not later than April 1, 2008, the Sec-
retary of Defense shall prescribe regulations to implement the 
amendments to section 1477 of title 10, United States Code, 
made by subsection (a). 
(2) ELEMENTS.—The regulations required by paragraph (1) 
shall include forms for the making of the designation con-
templated by subsection (a) of section 1477 of title 10, United 
States Code, as amended by subsection (a) of this section, 
and instructions for members of the Armed Forces in the filling 
out of such forms. 
SEC. 646. CLARIFICATION OF APPLICATION OF RETIRED PAY MULTI-
PLIER PERCENTAGE TO MEMBERS OF THE UNIFORMED 
SERVICES WITH OVER 30 YEARS OF SERVICE. 
(a) COMPUTATION OF RETIRED AND RETAINER PAY FOR MEMBERS 
OF NAVAL SERVICE.—The table in section 6333(a) of title 10, United 
States Code, is amended in Column 2 of Formula A by striking 
‘‘75 percent.’’ and inserting ‘‘Retired pay multiplier prescribed under 
section 1409 for the years of service that may be credited to the 
member under section 1405.’’. 
(b) RETIRED PAY FOR CERTAIN MEMBERS RECALLED TO ACTIVE 
DUTY.—The table in section 1402(a) of such title is amended by 
striking Column 3. 
(c) EFFECTIVE DATE.—The amendments made by subsections 
(a) and (b) shall take effect as of January 1, 2007, and shall 
apply with respect to retired pay and retainer pay payable on 
or after that date. 
SEC. 647. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE 
RETIRED PAY BY MEMBERS OF THE READY RESERVE ON 
ACTIVE FEDERAL STATUS OR ACTIVE DUTY FOR SIGNIFI-
CANT PERIODS. 
(a) REDUCED ELIGIBILITY AGE.—Section 12731 of title 10, 
United States Code, is amended— 
(1) in subsection (a), by striking paragraph (1) and inserting 
the following: 
‘‘(1) has attained the eligibility age applicable under sub-
section (f) to that person;’’; and 
(2) by adding at the end the following new subsection: 
‘‘(f)(1) Subject to paragraph (2), the eligibility age for purposes 
of subsection (a)(1) is 60 years of age. 
‘‘(2)(A) In the case of a person who as a member of the Ready 
Reserve serves on active duty or performs active service described 
in subparagraph (B) after the date of the enactment of the National 
Defense Authorization Act for Fiscal Year 2008, the eligibility age 
for purposes of subsection (a)(1) shall be reduced below 60 years 
of age by three months for each aggregate of 90 days on which 
such person so performs in any fiscal year after such date, subject
H. R. 4986—159 
to subparagraph (C). A day of duty may be included in only one 
aggregate of 90 days for purposes of this subparagraph. 
‘‘(B)(i) Service on active duty described in this subparagraph 
is service on active duty pursuant to a call or order to active 
duty under a provision of law referred to in section 101(a)(13)(B) 
or under section 12301(d) of this title. Such service does not include 
service on active duty pursuant to a call or order to active duty 
under section 12310 of this title. 
‘‘(ii) Active service described in this subparagraph is also service 
under a call to active service authorized by the President or the 
Secretary of Defense under section 502(f) of title 32 for purposes 
of responding to a national emergency declared by the President 
or supported by Federal funds. 
‘‘(C) The eligibility age for purposes of subsection (a)(1) may 
not be reduced below 50 years of age for any person under subpara-
graph (A).’’. 
(b) CONTINUATION OF AGE 60 AS MINIMUM AGE FOR ELIGIBILITY 
OF NON-REGULAR SERVICE RETIREES FOR HEALTH CARE.—Section 
1074(b) of such title is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) Paragraph (1) does not apply to a member or former 
member entitled to retired pay for non-regular service under chapter 
1223 of this title who is under 60 years of age.’’. 
(c) ADMINISTRATION
OF
RELATED
PROVISIONS
OF
LAW
OR 
POLICY.—With respect to any provision of law, or of any policy, 
regulation, or directive of the executive branch that refers to a 
member or former member of the uniformed services as being 
eligible for, or entitled to, retired pay under chapter 1223 of title 
10, United States Code, but for the fact that the member or former 
member is under 60 years of age, such provision shall be carried 
out with respect to that member or former member by substituting 
for the reference to being 60 years of age a reference to having 
attained the eligibility age applicable under subsection (f) of section 
12731 of title 10, United States Code (as added by subsection 
(a)), to such member or former member for qualification for such 
retired pay under subsection (a) of such section. 
SEC. 648. COMPUTATION OF YEARS OF SERVICE FOR PURPOSES OF 
RETIRED PAY FOR NON-REGULAR SERVICE. 
Section 12733(3) of title 10, United States Code, is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at the end; 
(2) in subparagraph (C), by striking the period and 
inserting ‘‘before the year of service that includes October 30, 
2007; and’’; and 
(3) by adding at the end the following new subparagraph: 
‘‘(D) 130 days in the year of service that includes 
October 30, 2007, and in any subsequent year of service.’’.
H. R. 4986—160 
Subtitle 
E—Commissary 
and 
Non-
appropriated Fund Instrumentality Ben-
efits 
SEC. 651. AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE 
BENEFITS FOR CERTAIN INVOLUNTARILY SEPARATED 
MEMBERS OF THE ARMED FORCES. 
(a) RESUMPTION
FOR
MEMBERS
INVOLUNTARILY
SEPARATED 
FROM ACTIVE DUTY.—Section 1146 of title 10, United States Code, 
is amended— 
(1) by inserting ‘‘(a) MEMBERS INVOLUNTARILY SEPARATED 
FROM ACTIVE DUTY.—’’ before ‘‘The Secretary of Defense’’; 
(2) in the first sentence, by striking ‘‘October 1, 1990, 
and ending on December 31, 2001’’ and inserting ‘‘October 
1, 2007, and ending on December 31, 2012’’; and 
(3) in the second sentence, by striking ‘‘the period beginning 
on October 1, 1994, and ending on December 31, 2001’’ and 
inserting ‘‘the same period’’. 
(b) EXTENSION TO MEMBERS INVOLUNTARILY SEPARATED FROM 
SELECTED RESERVE.—Such section is further amended by adding 
at the end the following new subsection: 
‘‘(b) MEMBERS INVOLUNTARILY SEPARATED FROM SELECTED 
RESERVE.—The Secretary of Defense shall prescribe regulations 
to allow a member of the Selected Reserve of the Ready Reserve 
who is involuntarily separated from the Selected Reserve as a 
result of the exercise of the force shaping authority of the Secretary 
concerned under section 647 of this title or other force shaping 
authority during the period beginning on October 1, 2007, and 
ending on December 31, 2012, to continue to use commissary and 
exchange stores during the two-year period beginning on the date 
of the involuntary separation of the member in the same manner 
as a member on active duty. The Secretary of Homeland Security 
shall implement this provision for Coast Guard members involun-
tarily separated during the same period.’’. 
SEC. 652. AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY 
OF 
EMPLOYEES 
OF 
NONAPPROPRIATED 
FUND 
INSTRUMENTALITIES TO COLLECT INDEBTEDNESS TO 
THE UNITED STATES. 
Section 5514 of title 5, United States Code, is amended— 
(1) in subsection (a)(5), by inserting ‘‘any nonappropriated 
fund instrumentality described in section 2105(c) of this title,’’ 
after ‘‘Commission,’’; and 
(2) by adding at the end the following new subsection: 
‘‘(e) An employee of a nonappropriated fund instrumentality 
described in section 2105(c) of this title is deemed an employee 
covered by this section.’’.
H. R. 4986—161 
Subtitle F—Consolidation of Special Pay, 
Incentive Pay, and Bonus Authorities 
SEC. 661. CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND 
BONUS AUTHORITIES OF THE UNIFORMED SERVICES. 
(a) CONSOLIDATION.—Chapter 5 of title 37, United States Code, 
is amended— 
(1) by inserting before section 301 the following subchapter 
heading: 
‘‘SUBCHAPTER I—EXISTING SPECIAL PAY, INCENTIVE PAY, 
AND BONUS AUTHORITIES’’; 
and 
(2) by adding at the end the following new subchapters: 
‘‘SUBCHAPTER II—CONSOLIDATION OF SPECIAL PAY, 
INCENTIVE PAY, AND BONUS AUTHORITIES 
‘‘§ 331. General bonus authority for enlisted members 
‘‘(a) AUTHORITY TO PROVIDE BONUS.—The Secretary concerned 
may pay a bonus under this section to a person, including a member 
of the armed forces, who— 
‘‘(1) enlists in an armed force; 
‘‘(2) enlists in or affiliates with a reserve component of 
an armed force; 
‘‘(3) reenlists, voluntarily extends an enlistment, or other-
wise agrees to serve— 
‘‘(A) for a specified period in a designated career field, 
skill, or unit of an armed force; or 
‘‘(B) under other conditions of service in an armed 
force; 
‘‘(4) transfers from a regular component of an armed force 
to a reserve component of that same armed force or from 
a reserve component of an armed force to the regular component 
of that same armed force; or 
‘‘(5) transfers from a regular component or reserve compo-
nent of an armed force to a regular component or reserve 
component of another armed force, subject to the approval 
of the Secretary with jurisdiction over the armed force to which 
the member is transferring. 
‘‘(b) SERVICE ELIGIBILITY.—A bonus authorized by subsection 
(a) may be paid to a person or member only if the person or 
member agrees under subsection (d)— 
‘‘(1) to serve for a specified period in a designated career 
field, skill, unit, or grade; or 
‘‘(2) to meet some other condition or conditions of service 
imposed by the Secretary concerned. 
‘‘(c) MAXIMUM AMOUNT AND METHOD OF PAYMENT.— 
‘‘(1) MAXIMUM
AMOUNT.—The Secretary concerned shall 
determine the amount of a bonus to be paid under this section, 
except that— 
‘‘(A) a bonus paid under paragraph (1) or (2) of sub-
section (a) may not exceed $50,000 for a minimum two- 
year period of obligated service agreed to under subsection 
(d);
H. R. 4986—162 
‘‘(B) a bonus paid under paragraph (3) of subsection 
(a) may not exceed $30,000 for each year of obligated 
service in a regular component agreed to under subsection 
(d); 
‘‘(C) a bonus paid under paragraph (3) of subsection 
(a) may not exceed $15,000 for each year of obligated 
service in a reserve component agreed to under subsection 
(d); and 
‘‘(D) a bonus paid under paragraph (4) or (5) of sub-
section (a) may not exceed $10,000. 
‘‘(2) LUMP
SUM
OR
INSTALLMENTS.—A bonus under this 
section may be paid in a lump sum or in periodic installments, 
as determined by the Secretary concerned. 
‘‘(3) FIXING BONUS AMOUNT.—Upon acceptance by the Sec-
retary concerned of the written agreement required by sub-
section (d), the total amount of the bonus to be paid under 
the agreement shall be fixed. 
‘‘(d) WRITTEN AGREEMENT.—To receive a bonus under this sec-
tion, a person or member determined to be eligible for the bonus 
shall enter into a written agreement with the Secretary concerned 
that specifies— 
‘‘(1) the amount of the bonus; 
‘‘(2) the method of payment of the bonus under subsection 
(c)(2); 
‘‘(3) the period of obligated service; and 
‘‘(4) the type or conditions of the service. 
‘‘(e) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.—A bonus 
paid to a person or member under this section is in addition 
to any other pay and allowance to which the person or member 
is entitled. 
‘‘(f) RELATIONSHIP
TO PROHIBITION
ON BOUNTIES.—A bonus 
authorized under this section is not a bounty for purposes of section 
514(a) of title 10. 
‘‘(g) REPAYMENT.—A person or member who receives a bonus 
under this section and who fails to complete the period of service, 
or meet the conditions of service, for which the bonus is paid, 
as specified in the written agreement under subsection (d), shall 
be subject to the repayment provisions of section 373 of this title. 
‘‘(h) TERMINATION
OF
AUTHORITY.—No agreement may be 
entered into under this section after December 31, 2009. 
‘‘§ 332. General bonus authority for officers 
‘‘(a) AUTHORITY TO PROVIDE BONUS.—The Secretary concerned 
may pay a bonus under this section to a person, including an 
officer in the uniformed services, who— 
‘‘(1) accepts a commission or appointment as an officer 
in a uniformed service; 
‘‘(2) affiliates with a reserve component of a uniformed 
service; 
‘‘(3) agrees to remain on active duty or to serve in an 
active status for a specific period as an officer in a uniformed 
service; 
‘‘(4) transfers from a regular component of a uniformed 
service to a reserve component of that same uniformed service 
or from a reserve component of a uniformed service to the 
regular component of that same uniformed service; or
H. R. 4986—165 
‘‘(B) the method of payment of the bonus under sub-
section (d)(2); 
‘‘(C) the period of obligated service; and 
‘‘(D) the type or conditions of the service. 
‘‘(2) REPLACEMENT
AGREEMENT.—An officer who is per-
forming obligated service under an agreement for a nuclear 
officer bonus may execute a new agreement to replace the 
existing agreement if the amount to be paid under the new 
agreement will be higher than the amount to be paid under 
the existing agreement. The period of the new agreement shall 
be equal to or exceed the remaining term of the period of 
the officer’s existing agreement. If a new agreement is executed 
under this paragraph, the existing agreement shall be cancelled, 
effective on the day before an anniversary date of the existing 
agreement occurring after the date on which the amount to 
be paid under this paragraph is increased. 
‘‘(f) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.—A nuclear 
officer bonus or nuclear officer incentive pay paid to a person 
or officer under this section is in addition to any other pay and 
allowance to which the person or officer is entitled, except that 
a person or officer may not receive a payment under this section 
and section 332 or 353 of this title for the same skill and period 
of service. 
‘‘(g) REPAYMENT.—A person or officer who receives a nuclear 
officer bonus or nuclear officer incentive pay under this section 
and who fails to complete the officer naval nuclear power training 
program, maintain required technical and operational qualifications, 
complete the period of service, or meet the types or conditions 
of service for which the bonus or incentive pay is paid, as specified 
in the written agreement under subsection (e) in the case of a 
nuclear officer bonus, shall be subject to the repayment provisions 
of section 373 of this title. 
‘‘(h) REGULATIONS.—This section shall be administered under 
regulations prescribed by the Secretary of the Navy. 
‘‘(i) TERMINATION
OF
AUTHORITY.—No agreement may be 
entered into under this section after December 31, 2009. 
‘‘§ 334. Special aviation incentive pay and bonus authorities 
for officers 
‘‘(a) AVIATION INCENTIVE PAY.—The Secretary concerned may 
pay aviation incentive pay under this section to an officer in a 
regular or reserve component of a uniformed service who— 
‘‘(1) is entitled to basic pay under section 204 of this title 
or compensation under section 206 of this title; 
‘‘(2) maintains, or is in training leading to, an aeronautical 
rating or designation that qualifies the officer to engage in 
operational flying duty or proficiency flying duty; 
‘‘(3) engages in, or is in training leading to, frequent and 
regular performance of operational flying duty or proficiency 
flying duty; 
‘‘(4) engages in or remains in aviation service for a specified 
period; and 
‘‘(5) meets such other criteria as the Secretary concerned 
determines appropriate. 
‘‘(b) AVIATION BONUS.—The Secretary concerned may pay an 
aviation bonus under this section to an officer in a regular or 
reserve component of a uniformed service who—
H. R. 4986—166 
‘‘(1) is entitled to aviation incentive pay under subsection 
(a); 
‘‘(2) has completed any active duty service commitment 
incurred for undergraduate aviator training or is within one 
year of completing such commitment; 
‘‘(3) executes a written agreement to remain on active 
duty in a regular component or to serve in an active status 
in a reserve component in aviation service for at least one 
year; and 
‘‘(4) meets such other criteria as the Secretary concerned 
determines appropriate. 
‘‘(c) MAXIMUM AMOUNT AND METHOD OF PAYMENT.— 
‘‘(1) MAXIMUM
AMOUNT.—The Secretary concerned shall 
determine the amount of a bonus or incentive pay to be paid 
under this section, except that— 
‘‘(A) aviation incentive pay under subsection (a) shall 
be paid at a monthly rate, not to exceed $850 per month; 
and 
‘‘(B) an aviation bonus under subsection (b) may not 
exceed $25,000 for each 12-month period of obligated 
service agreed to under subsection (d). 
‘‘(2) LUMP
SUM
OR
INSTALLMENTS.—A bonus under this 
section may be paid in a lump sum or in periodic installments, 
as determined by the Secretary concerned. 
‘‘(3) FIXING BONUS AMOUNT.—Upon acceptance by the Sec-
retary concerned of the written agreement required by sub-
section (d), the total amount of the bonus to be paid under 
the agreement shall be fixed. 
‘‘(d) WRITTEN AGREEMENT FOR BONUS.—To receive an aviation 
officer bonus under this section, an officer determined to be eligible 
for the bonus shall enter into a written agreement with the Sec-
retary concerned that specifies— 
‘‘(1) the amount of the bonus; 
‘‘(2) the method of payment of the bonus under subsection 
(c)(2); 
‘‘(3) the period of obligated service; and 
‘‘(4) the type or conditions of the service. 
‘‘(e) RESERVE COMPONENT OFFICERS PERFORMING INACTIVE 
DUTY TRAINING.—A reserve component officer who is entitled to 
compensation under section 206 of this title and who is authorized 
aviation incentive pay under this section may be paid an amount 
of incentive pay that is proportionate to the compensation received 
under section 206 for inactive-duty training. 
‘‘(f) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.— 
‘‘(1) AVIATION INCENTIVE PAY.—Aviation incentive pay paid 
to an officer under subsection (a) shall be in addition to any 
other pay and allowance to which the officer is entitled, except 
that an officer may not receive a payment under such subsection 
and section 351 or 353 of this title for the same skill and 
period of service. 
‘‘(2) AVIATION BONUS.—An aviation bonus paid to an officer 
under subsection (b) shall be in addition to any other pay 
and allowance to which the officer is entitled, except that 
an officer may not receive a payment under such subsection 
and section 332 or 353 of this title for the same skill and 
period of service.
H. R. 4986—167 
‘‘(g) REPAYMENT.—An officer who receives aviation incentive 
pay or an aviation bonus under this section and who fails to fulfill 
the eligibility requirements for the receipt of the incentive pay 
or bonus or complete the period of service for which the incentive 
pay or bonus is paid, as specified in the written agreement under 
subsection (d) in the case of a bonus, shall be subject to the repay-
ment provisions of section 373 of this title. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘aviation service’ means service performed 
by an officer in a regular or reserve component (except a flight 
surgeon or other medical officer) while holding an aeronautical 
rating or designation or while in training to receive an aero-
nautical rating or designation. 
‘‘(2) The term ‘operational flying duty’ means flying per-
formed under competent orders by rated or designated regular 
or reserve component officers while serving in assignments 
in which basic flying skills normally are maintained in the 
performance of assigned duties as determined by the Secretary 
concerned, and flying performed by members in training that 
leads to the award of an aeronautical rating or designation. 
‘‘(3) The term ‘proficiency flying duty’ means flying per-
formed under competent orders by rated or designated regular 
or reserve component officers while serving in assignments 
in which such skills would normally not be maintained in 
the performance of assigned duties. 
‘‘(4) The term ‘officer’ includes an individual enlisted and 
designated as an aviation cadet under section 6911 of title 
10. 
‘‘(i) TERMINATION
OF
AUTHORITY.—No agreement may be 
entered into under this section after December 31, 2009. 
‘‘§ 335. Special bonus and incentive pay authorities for offi-
cers in health professions 
‘‘(a) HEALTH PROFESSIONS BONUS.—The Secretary concerned 
may pay a health professions bonus under this section to a person, 
including an officer in the uniformed services, who is a graduate 
of an accredited school in a health profession and who— 
‘‘(1) accepts a commission or appointment as an officer 
in a regular or reserve component of a uniformed service, 
or affiliates with a reserve component of a uniformed service, 
and agrees to serve on active duty in a regular component 
or in an active status in a reserve component in a health 
profession; 
‘‘(2) accepts a commission or appointment as an officer 
and whose health profession specialty is designated by the 
Secretary of Defense as a critically short wartime specialty; 
or 
‘‘(3) agrees to remain on active duty or continue serving 
in an active status in a reserve component in a health profes-
sion. 
‘‘(b) HEALTH PROFESSIONS INCENTIVE PAY.—The Secretary con-
cerned may pay incentive pay under this section to an officer 
in a regular or reserve component of a uniformed service who— 
‘‘(1) is entitled to basic pay under section 204 of this title 
or compensation under section 206 of this title; and 
‘‘(2) is serving on active duty or in an active status in 
a designated health profession specialty or skill.
H. R. 4986—168 
‘‘(c) BOARD CERTIFICATION INCENTIVE PAY.—The Secretary con-
cerned may pay board certification incentive pay under this section 
to an officer in a regular or reserve component of a uniformed 
service who— 
‘‘(1) is entitled to basic pay under section 204 of this title 
or compensation under section 206 of this title; 
‘‘(2) is board certified in a designated health profession 
specialty or skill; and 
‘‘(3) is serving on active duty or in an active status in 
such designated health profession specialty or skill. 
‘‘(d) ADDITIONAL ELIGIBILITY CRITERIA.—The Secretary con-
cerned may impose such additional criteria for the receipt of a 
bonus or incentive pay under this section as the Secretary deter-
mines to be appropriate. 
‘‘(e) MAXIMUM AMOUNT AND METHOD OF PAYMENT.— 
‘‘(1) MAXIMUM
AMOUNT.—The Secretary concerned shall 
determine the amounts of a bonus or incentive pay to be paid 
under this section, except that— 
‘‘(A) a health professions bonus paid under paragraph 
(1) of subsection (a) may not exceed $30,000 for each 12- 
month period of obligated service agreed to under sub-
section (f); 
‘‘(B) a health professions bonus paid under paragraph 
(2) of subsection (a) may not exceed $100,000 for each 
12-month period of obligated service agreed to under sub-
section (f); 
‘‘(C) a health professions bonus paid under paragraph 
(3) of subsection (a) may not exceed $75,000 for each 12- 
month period of obligated service agreed to under sub-
section (f); 
‘‘(D) health professions incentive pay under subsection 
(b) may be paid monthly and may not exceed, in any 
12-month period— 
‘‘(i) $100,000 for medical officers and dental sur-
geons; and 
‘‘(ii) $15,000 for officers in other health professions; 
and 
‘‘(E) board certification incentive pay under subsection 
(c) may not exceed $6,000 for each 12-month period an 
officer remains certified in the designated health profession 
specialty or skill. 
‘‘(2) LUMP SUM OR INSTALLMENTS.—A health professions 
bonus under subsection (a) may be paid in a lump sum or 
in periodic installments, as determined by the Secretary con-
cerned. Board certification incentive pay under subsection (c) 
may be paid monthly, in a lump sum at the beginning of 
the certification period, or in periodic installments during the 
certification period, as determined by the Secretary concerned. 
‘‘(3) FIXING BONUS AMOUNT.—Upon acceptance by the Sec-
retary concerned of the written agreement required by sub-
section (f), the total amount of the health professions bonus 
to be paid under the agreement shall be fixed. 
‘‘(f) WRITTEN AGREEMENT
FOR BONUS.—To receive a bonus 
under this section, an officer determined to be eligible for the 
bonus shall enter into a written agreement with the Secretary 
concerned that specifies— 
‘‘(1) the amount of the bonus;
H. R. 4986—169 
‘‘(2) the method of payment of the bonus under subsection 
(e)(2); 
‘‘(3) the period of obligated service; 
‘‘(4) whether the service will be performed on active duty 
or in an active status in a reserve component; and 
‘‘(5) the type or conditions of the service. 
‘‘(g) RESERVE COMPONENT OFFICERS.—An officer in a reserve 
component authorized incentive pay under subsection (b) or (c) 
who is not serving on continuous active duty and is entitled to 
compensation under section 204 of this title or compensation under 
section 206 of this title may be paid a monthly amount of incentive 
pay that is proportionate to the basic pay or compensation received 
under this title. 
‘‘(h) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.— 
‘‘(1) HEALTH PROFESSIONS BONUS.—A bonus paid to a per-
son or officer under subsection (a) shall be in addition to any 
other pay and allowance to which the person or officer is 
entitled, except that a person or officer may not receive a 
payment under such subsection and section 332 of this title 
for the same period of obligated service. 
‘‘(2) HEALTH PROFESSIONS INCENTIVE PAY.—Incentive pay 
paid to an officer under subsection (b) shall be in addition 
to any other pay and allowance to which an officer is entitled, 
except that an officer may not receive a payment under such 
subsection and section 353 of this title for the same skill and 
period of service. 
‘‘(3) BOARD CERTIFICATION INCENTIVE PAY.—Incentive pay 
paid to an officer under subsection (c) shall be in addition 
to any other pay and allowance to which an officer is entitled, 
except that an officer may not receive a payment under such 
subsection and section 353(b) of this title for the same skill 
and period of service covered by the certification. 
‘‘(i) REPAYMENT.—An officer who receives a bonus or incentive 
pay under this section and who fails to fulfill the eligibility require-
ments for the receipt of the bonus or incentive pay or complete 
the period of service for which the bonus or incentive pay is paid, 
as specified in the written agreement under subsection (f) in the 
case of a bonus, shall be subject to the repayment provisions of 
section 373 of this title. 
‘‘(j) HEALTH PROFESSION DEFINED.—In this section, the term 
‘health profession’ means the following: 
‘‘(1) Any health profession performed by officers in the 
Medical Corps of a uniformed service or by officers designated 
as a medical officer. 
‘‘(2) Any health profession performed by officers in the 
Dental Corps of a uniformed service or by officers designated 
as a dental officer. 
‘‘(3) Any health profession performed by officers in the 
Medical Service Corps of a uniformed service or by officers 
designated as a medical service officer or biomedical sciences 
officer. 
‘‘(4) Any health profession performed by officers in the 
Medical Specialist Corps of a uniformed service or by officers 
designated as a medical specialist. 
‘‘(5) Any health profession performed by officers of the 
Nurse Corps of a uniformed service or by officers designated 
as a nurse.
H. R. 4986—171 
foreign area as an imminent danger area, as described in paragraph 
(3) of such subsection, may be a date that occurs before, on, or 
after the actual date of the designation by the Secretary concerned. 
‘‘(f) DETERMINATION OF FACT.—Any determination of fact that 
is made in administering subsection (a) is conclusive. The deter-
mination may not be reviewed by any other officer or agency of 
the United States unless there has been fraud or gross negligence. 
However, the Secretary concerned may change the determination 
on the basis of new evidence or for other good cause. The regulations 
prescribed to administer this section shall define the activities 
that are considered hazardous for purposes of subsection (a)(2). 
‘‘(g) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.— 
‘‘(1) IN
ADDITION
TO
OTHER
PAY
AND
ALLOWANCES.—A 
member may be paid hazardous duty pay under this section 
in addition to any other pay and allowances to which the 
member is entitled. The regulations prescribed to administer 
this section shall address dual compensation under this section 
for multiple circumstances involving performance of a des-
ignated hazardous duty, as described in paragraph (2) of sub-
section (a), or for duty in certain designated areas, as described 
in paragraph (1) or (3) of such subsection, that is performed 
by a member during a single month of service. 
‘‘(2) LIMITATION.—A member may not receive hazardous 
duty pay under this section for a month for more than three 
qualifying instances described in subsection (a)(2). 
‘‘(h) PROHIBITION ON VARIABLE RATES.—The regulations pre-
scribed to administer this section may not include varied criteria 
or rates for payment of hazardous duty for officers and enlisted 
members. 
‘‘(i) TERMINATION
OF AUTHORITY.—No hazardous duty pay 
under this section may be paid after December 31, 2009. 
‘‘§ 352. Assignment pay or special duty pay 
‘‘(a) ASSIGNMENT OR SPECIAL DUTY PAY AUTHORIZED.—The Sec-
retary concerned may pay assignment or special duty pay under 
this section to a member of a regular or reserve component of 
the uniformed services who— 
‘‘(1) is entitled to basic pay under section 204 of this title 
or compensation under section 206 of this title; and 
‘‘(2) performs duties in an assignment, location, or unit 
designated by, and under the conditions of service specified 
by, the Secretary concerned. 
‘‘(b) MAXIMUM AMOUNT AND METHOD OF PAYMENT.— 
‘‘(1) LUMP SUM OR INSTALLMENTS.—Assignment or special 
duty pay under subsection (a) may be paid monthly, in a 
lump sum, or in periodic installments other than monthly, 
as determined by the Secretary concerned. 
‘‘(2) MAXIMUM MONTHLY AMOUNT.—The maximum monthly 
amount of assignment or special duty pay may not exceed 
$5,000. 
‘‘(3) MAXIMUM LUMP SUM AMOUNT.—The amount of a lump 
sum payment of assignment or special duty pay payable to 
a member may not exceed the amount equal to the product 
of— 
‘‘(A) the maximum monthly rate authorized under 
paragraph (2) at the time the member enters into a written 
agreement under subsection (c); and
H. R. 4986—172 
‘‘(B) the number of continuous months in the period 
for which assignment or special duty pay will be paid 
pursuant to the agreement. 
‘‘(4) MAXIMUM INSTALLMENT AMOUNT.—The amount of each 
installment payment of assignment or special duty pay payable 
to a member on an installment basis may not exceed the 
amount equal to— 
‘‘(A) the product of— 
‘‘(i) a monthly rate specified in the written agree-
ment entered into under subsection (c), which monthly 
rate may not exceed the maximum monthly rate 
authorized under paragraph (2) at the time the member 
enters into the agreement; and 
‘‘(ii) the number of continuous months in the period 
for which the assignment or special duty pay will be 
paid; divided by 
‘‘(B) the number of installments over such period. 
‘‘(5) EFFECT
OF
EXTENSION.—If a member extends an 
assignment or performance of duty specified in an agreement 
with the Secretary concerned under subsection (c), assignment 
or special duty pay for the period of the extension may be 
paid on a monthly basis, in a lump sum, or in installments, 
consistent with this subsection. 
‘‘(c) WRITTEN AGREEMENT.— 
‘‘(1) DISCRETIONARY
FOR
MONTHLY
PAYMENTS.—The Sec-
retary concerned may require a member to enter into a written 
agreement with the Secretary in order to qualify for the pay-
ment of assignment or special duty pay on a monthly basis. 
The written agreement shall specify the period for which the 
assignment or special duty pay will be paid to the member 
and the monthly rate of the assignment or special duty pay. 
‘‘(2) REQUIRED FOR LUMP SUM OR INSTALLMENT PAYMENTS.— 
The Secretary concerned shall require a member to enter into 
a written agreement with the Secretary in order to qualify 
for payment of assignment or special duty pay on a lump 
sum or installment basis. The written agreement shall specify 
the period for which the assignment or special duty pay will 
be paid to the member and the amount of the lump sum 
or each periodic installment. 
‘‘(d) RESERVE COMPONENT MEMBERS PERFORMING INACTIVE 
DUTY TRAINING.—A member of a reserve component entitled to 
compensation under section 206 of this title who is authorized 
assignment or special duty pay under this section may be paid 
an amount of assignment or special duty pay that is proportionate 
to the compensation received by the member under section 206 
of this title for inactive-duty training. 
‘‘(e) RELATIONSHIP TO OTHER PAY AND ALLOWANCES.—Assign-
ment or special duty pay paid to a member under this section 
is in addition to any other pay and allowances to which the member 
is entitled. 
‘‘(f) REPAYMENT.—A member who receives assignment or special 
duty pay under this section and who fails to fulfill the eligibility 
requirements under subsection (a) for receipt of such pay shall 
be subject to the repayment provisions of section 373 of this title. 
‘‘(g) TERMINATION
OF
AUTHORITY.—No agreement may be 
entered into under this section after December 31, 2009.
H. R. 4986—173 
‘‘§ 353. Skill incentive pay or proficiency bonus 
‘‘(a) SKILL INCENTIVE PAY.—The Secretary concerned may pay 
a monthly skill incentive pay to a member of a regular or reserve 
component of the uniformed services who— 
‘‘(1) is entitled to basic pay under section 204 of this title 
or compensation under section 206 of this title; and 
‘‘(2) serves in a career field or skill designated as critical 
by the Secretary concerned. 
‘‘(b) SKILL PROFICIENCY BONUS.—The Secretary concerned may 
pay a proficiency bonus to a member of a regular or reserve compo-
nent of the uniformed services who— 
‘‘(1) is entitled to basic pay under section 204 of this title 
or compensation under section 206 of this title; and 
‘‘(2) is determined to have, and maintains, certified pro-
ficiency under subsection (d) in a skill designated as critical 
by the Secretary concerned. 
‘‘(c) MAXIMUM AMOUNTS AND METHODS OF PAYMENT.— 
‘‘(1) SKILL INCENTIVE PAY.—Skill incentive pay under sub-
section (a) shall be paid monthly in an amount not to exceed 
$1,000 per month. 
‘‘(2) PROFICIENCY BONUS.—A proficiency bonus under sub-
section (b) may be paid in a lump sum at the beginning of 
the proficiency certification period or in periodic installments 
during the proficiency certification period. The amount of the 
bonus may not exceed $12,000 for each 12-month period of 
certification. The Secretary concerned may not vary the criteria 
or rates for the proficiency bonus paid for officers and enlisted 
members. 
‘‘(d) CERTIFIED PROFICIENCY FOR PROFICIENCY BONUS.— 
‘‘(1) CERTIFICATION REQUIRED.—Proficiency in a designated 
critical skill for purposes of subsection (b) shall be subject 
to annual certification by the Secretary concerned. 
‘‘(2) DURATION OF CERTIFICATION.—A certification period 
for purposes of subsection (c)(2) shall expire at the end of 
the one-year period beginning on the first day of the first 
month beginning on or after the certification date. 
‘‘(3) WAIVER.—Notwithstanding paragraphs (1) and (2), the 
regulations prescribed to administer this section shall address 
the circumstances under which the Secretary concerned may 
waive the certification requirement under paragraph (1) or 
extend a certification period under paragraph (2). 
‘‘(e) WRITTEN AGREEMENT.— 
‘‘(1) DISCRETIONARY FOR SKILL INCENTIVE PAY.—The Sec-
retary concerned may require a member to enter into a written 
agreement with the Secretary in order to qualify for the pay-
ment of skill incentive pay under subsection (a). The written 
agreement shall specify the period for which the skill incentive 
pay will be paid to the member and the monthly rate of the 
pay. 
‘‘(2) REQUIRED
FOR
PROFICIENCY
BONUS.—The Secretary 
concerned shall require a member to enter into a written agree-
ment with the Secretary in order to qualify for payment of 
a proficiency bonus under subsection (b). The written agreement 
shall specify the amount of the proficiency bonus, the period 
for which the bonus will be paid, and the initial certification 
or recertification necessary for payment of the proficiency 
bonus.
H. R. 4986—174 
‘‘(f) RESERVE COMPONENT MEMBERS PERFORMING INACTIVE 
DUTY TRAINING.— 
‘‘(1) PRORATION.—A member of a reserve component enti-
tled to compensation under section 206 of this title who is 
authorized skill incentive pay under subsection (a) or a skill 
proficiency bonus under subsection (b) may be paid an amount 
of the pay or bonus, as the case may be, that is proportionate 
to the compensation received by the member under section 
206 of this title for inactive-duty training. 
‘‘(2) EXCEPTION FOR FOREIGN LANGUAGE PROFICIENCY.—No 
reduction in the amount of a skill proficiency bonus may be 
made under paragraph (1) in the case of a member of a reserve 
component who is authorized the bonus because of the member’s 
proficiency in a foreign language. 
‘‘(g) REPAYMENT.—A member who receives skill incentive pay 
or a proficiency bonus under this section and who fails to fulfill 
the eligibility requirement for receipt of the pay or bonus shall 
be subject to the repayment provisions of section 373 of this title. 
‘‘(h) RELATIONSHIP
TO
OTHER
PAYS
AND
ALLOWANCES.—A 
member may not be paid more than one pay under this section 
in any month for the same period of service and skill. A member 
may be paid skill incentive pay or the proficiency bonus under 
this section in addition to any other pay and allowances to which 
the member is entitled, except that a member may not be paid 
skill incentive pay or a proficiency bonus under this section and 
hazardous duty pay under section 351 of this title for the same 
period of service in the same career field or skill. 
‘‘(i) TERMINATION
OF
AUTHORITY.—No agreement may be 
entered into under this section after December 31, 2009. 
‘‘SUBCHAPTER III—GENERAL PROVISIONS 
‘‘§ 371. Relationship to other incentives and pays 
‘‘(a) TREATMENT.—A bonus or incentive pay paid to a member 
of the uniformed services under subchapter II is in addition to 
any other pay and allowance to which a member is entitled, unless 
otherwise provided under this chapter. 
‘‘(b) EXCEPTION.—A member may not receive a bonus or incen-
tive pay under both subchapter I and subchapter II for the same 
activity, skill, or period of service. 
‘‘(c) RELATIONSHIP TO OTHER COMPUTATIONS.—The amount of 
a bonus or incentive pay to which a member is entitled under 
subchapter II may not be included in computing the amount of— 
‘‘(1) any increase in pay authorized by any other provision 
of this title; or 
‘‘(2) any retired pay, retainer pay, separation pay, or dis-
ability severance pay. 
‘‘§ 372. Continuation of pays during hospitalization and 
rehabilitation resulting from wounds, injury, or 
illness incurred while on duty in a hostile fire 
area or exposed to an event of hostile fire or 
other hostile action 
‘‘(a) CONTINUATION
OF PAYS.—If a member of a regular or 
reserve component of a uniformed service incurs a wound, injury, 
or illness in the line of duty while serving in a combat operation 
or a combat zone, while serving in a hostile fire area, or while
H. R. 4986—175 
exposed to a hostile fire event, as described under section 351 
of this title, and is hospitalized for treatment of the wound, injury, 
or illness, the Secretary concerned may continue to pay to the 
member, notwithstanding any provision of this chapter to the con-
trary, all pay and allowances (including any bonus, incentive pay, 
or similar benefit) that were being paid to the member at the 
time the member incurred the wound, injury, or illness. 
‘‘(b) DURATION.—The payment of pay and allowances to a 
member under subsection (a) may continue until the end of the 
first month beginning after the earliest of the following dates: 
‘‘(1) The date on which the member is returned for assign-
ment to other than a medical or patient unit for duty. 
‘‘(2) One year after the date on which the member is 
first hospitalized for the treatment of the wound, injury, or 
illness, except that the Secretary concerned may extend the 
termination date in six-month increments. 
‘‘(3) The date on which the member is discharged, sepa-
rated, or retired (including temporary disability retirement) 
from the uniformed services. 
‘‘(c) BONUS, INCENTIVE PAY, OR SIMILAR BENEFIT DEFINED.— 
In this section, the term ‘bonus, incentive pay, or similar benefit’ 
means a bonus, incentive pay, special pay, or similar payment 
paid to a member of the uniformed services under this title or 
title 10. 
‘‘§ 373. Repayment of unearned portion of bonus, incentive 
pay, or similar benefit when conditions of pay-
ment not met 
‘‘(a) REPAYMENT.—Except as provided in subsection (b), a 
member of the uniformed services who is paid a bonus, incentive 
pay, or similar benefit, the receipt of which is contingent upon 
the member’s satisfaction of certain service or eligibility require-
ments, shall repay to the United States any unearned portion 
of the bonus, incentive pay, or similar benefit if the member fails 
to satisfy any such service or eligibility requirement. 
‘‘(b) EXCEPTIONS.—The regulations prescribed to administer this 
section may specify procedures for determining the circumstances 
under which an exception to the required repayment may be 
granted. 
‘‘(c) EFFECT OF BANKRUPTCY.—An obligation to repay the United 
States under this section is, for all purposes, a debt owed the 
United States. A discharge in bankruptcy under title 11 does not 
discharge a person from such debt if the discharge order is entered 
less than five years after— 
‘‘(1) the date of the termination of the agreement or contract 
on which the debt is based; or 
‘‘(2) in the absence of such an agreement or contract, the 
date of the termination of the service on which the debt is 
based. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘bonus, incentive pay, or similar benefit’ 
means a bonus, incentive pay, special pay, or similar payment, 
or an educational benefit or stipend, paid to a member of 
the uniformed services under a provision of law that refers 
to the repayment requirements of this section or section 303a(e) 
of this title.
H. R. 4986—176 
‘‘(2) The term ‘service’, as used in subsection (c)(2), refers 
to an obligation willingly undertaken by a member of the uni-
formed services, in exchange for a bonus, incentive pay, or 
similar benefit offered by the Secretary concerned— 
‘‘(A) to a member in a regular or reserve component 
who remains on active duty or in an active status; 
‘‘(B) to perform duty in a specified skill, with or without 
a specified qualification or credential; 
‘‘(C) to perform duty in a specified assignment, location 
or unit; or 
‘‘(D) to perform duty for a specified period of time. 
‘‘§ 374. Regulations 
‘‘This subchapter and subchapter II shall be administered under 
regulations prescribed by— 
‘‘(1) the Secretary of Defense, with respect to the armed 
forces under the jurisdiction of the Secretary of Defense; 
‘‘(2) the Secretary of Homeland Security, with respect to 
the Coast Guard when it is not operating as a service in 
the Navy; 
‘‘(3) the Secretary of Health and Human Services, with 
respect to the commissioned corps of the Public Health Service; 
and 
‘‘(4) the Secretary of Commerce, with respect to the 
National Oceanic and Atmospheric Administration.’’. 
(b) TRANSFER
OF 15-YEAR CAREER STATUS BONUS
TO SUB-
CHAPTER II.— 
(1) TRANSFER.—Section 322 of title 37, United States Code, 
is transferred to appear after section 353 of subchapter II 
of chapter 5 of such title, as added by subsection (a), and 
is redesignated as section 354. 
(2) CONFORMING AMENDMENT.—Subsection (f) of such sec-
tion, as so transferred and redesignated, is amended by striking 
‘‘section 303a(e)’’ and inserting ‘‘section 373’’. 
(3) CROSS REFERENCES.—Sections 1401a, 1409(b)(2), and 
1410 of title 10, United States Code, are amended by striking 
‘‘section 322’’ each place it appears and inserting ‘‘section 322 
(as in effect before the enactment of the National Defense 
Authorization Act for Fiscal Year 2008) or section 354’’. 
(c) TRANSFER OF RETENTION INCENTIVES FOR MEMBERS QUALI-
FIED IN CRITICAL MILITARY SKILLS OR ASSIGNED TO HIGH PRIORITY 
UNITS.— 
(1) TRANSFER.—Section 323 of title 37, United States Code, 
as amended by sections 614 and 622, is transferred to appear 
after section 354 of subchapter II of chapter 5 of such title, 
as transferred and redesignated by subsection (b)(1), and is 
redesignated as section 355. 
(2) CONFORMING AMENDMENT.—Subsection (g) of such sec-
tion, as so transferred and redesignated, is amended by striking 
‘‘section 303a(e)’’ and inserting ‘‘section 373’’. 
(d) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 5 of title 37, United States Code, is amended 
to read as follows: 
‘‘SUBCHAPTER I—EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES 
‘‘Sec. 
‘‘301. Incentive pay: hazardous duty. 
‘‘301a. Incentive pay: aviation career.
H. R. 4986—177 
‘‘301b. Special pay: aviation career officers extending period of active duty. 
‘‘301c. Incentive pay: submarine duty. 
‘‘301d. Multiyear retention bonus: medical officers of the armed forces. 
‘‘301e. Multiyear retention bonus: dental officers of the armed forces. 
‘‘302. Special pay: medical officers of the armed forces. 
‘‘302a. Special pay: optometrists. 
‘‘302b. Special pay: dental officers of the armed forces. 
‘‘302c. Special pay: psychologists and nonphysician health care providers. 
‘‘302d. Special pay: accession bonus for registered nurses. 
‘‘302e. Special pay: nurse anesthetists. 
‘‘302f. Special pay: reserve, recalled, or retained health care officers. 
‘‘302g. Special pay: Selected Reserve health care professionals in critically short 
wartime specialties. 
‘‘302h. Special pay: accession bonus for dental officers. 
‘‘302i. Special pay: pharmacy officers. 
‘‘302j. Special pay: accession bonus for pharmacy officers. 
‘‘302k. Special pay: accession bonus for medical officers in critically short wartime 
specialties. 
‘‘302l. Special pay: accession bonus for dental specialist officers in critically short 
wartime specialties. 
‘‘303. Special pay: veterinarians. 
‘‘303a. Special pay: general provisions. 
‘‘303b. Waiver of board certification requirements. 
‘‘304. Special pay: diving duty. 
‘‘305. Special pay: hardship duty pay. 
‘‘305a. Special pay: career sea pay. 
‘‘305b. Special pay: service as member of Weapons of Mass Destruction Civil Sup-
port Team. 
‘‘306. Special pay: officers holding positions of unusual responsibility and of critical 
nature. 
‘‘306a. Special pay: members assigned to international military headquarters. 
‘‘307. Special pay: special duty assignment pay for enlisted members. 
‘‘307a. Special pay: assignment incentive pay. 
‘‘308. Special pay: reenlistment bonus. 
‘‘308b. Special pay: reenlistment bonus for members of the Selected Reserve. 
‘‘308c. Special pay: bonus for affiliation or enlistment in the Selected Reserve. 
‘‘308d. Special pay: members of the Selected Reserve assigned to certain high pri-
ority units. 
‘‘308g. Special pay: bonus for enlistment in elements of the Ready Reserve other 
than the Selected Reserve. 
‘‘308h. Special pay: bonus for reenlistment, enlistment, or voluntary extension of en-
listment in elements of the Ready Reserve other than the Selected Re-
serve. 
‘‘308i. Special pay: prior service enlistment bonus. 
‘‘308j. Special pay: affiliation bonus for officers in the Selected Reserve. 
‘‘309. Special pay: enlistment bonus. 
‘‘310. Special pay: duty subject to hostile fire or imminent danger. 
‘‘312. Special pay: nuclear-qualified officers extending period of active duty. 
‘‘312b. Special pay: nuclear career accession bonus. 
‘‘312c. Special pay: nuclear career annual incentive bonus. 
‘‘314. Special pay or bonus: qualified members extending duty at designated loca-
tions overseas. 
‘‘315. Special pay: engineering and scientific career continuation pay. 
‘‘316. Special pay: bonus for members with foreign language proficiency. 
‘‘317. Special pay: officers in critical acquisition positions extending period of active 
duty. 
‘‘318. Special pay: special warfare officers extending period of active duty. 
‘‘319. Special pay: surface warfare officer continuation pay. 
‘‘320. Incentive pay: career enlisted flyers. 
‘‘321. Special pay: judge advocate continuation pay. 
‘‘324. Special pay: accession bonus for new officers in critical skills. 
‘‘325. Incentive bonus: savings plan for education expenses and other contingencies. 
‘‘326. Incentive bonus: conversion to military occupational specialty to ease per-
sonnel shortage. 
‘‘327. Incentive bonus: transfer between armed forces. 
‘‘328. Combat-related injury rehabilitation pay. 
‘‘329. Incentive bonus: retired members and reserve component members volun-
teering for high-demand, low-density assignments. 
‘‘330. Special pay: accession bonus for officer candidates. 
‘‘SUBCHAPTER II—CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
AUTHORITIES 
‘‘331. General bonus authority for enlisted members.
H. R. 4986—178 
‘‘332. General bonus authority for officers. 
‘‘333. Special bonus and incentive pay authorities for nuclear officers. 
‘‘334. Special aviation incentive pay and bonus authorities for officers. 
‘‘335. Special bonus and incentive pay authorities for officers in health professions. 
‘‘351. Hazardous duty pay. 
‘‘352. Assignment pay or special duty pay. 
‘‘353. Skill incentive pay or proficiency bonus. 
‘‘354. Special pay: 15-year career status bonus for members entering service on or 
after August 1, 1986. 
‘‘355. Special pay: retention incentives for members qualified in critical military 
skills or assigned to high priority units. 
‘‘SUBCHAPTER III—GENERAL PROVISIONS 
‘‘371. Relationship to other incentives and pays. 
‘‘372. Continuation of pays during hospitalization and rehabilitation resulting from 
wounds, injury, or illness incurred while on duty in a hostile fire area 
or exposed to an event of hostile fire or other hostile action. 
‘‘373. Repayment of unearned portion of bonus, incentive pay, or similar benefit 
when conditions of payment not met. 
‘‘374. Regulations.’’. 
SEC. 662. TRANSITIONAL PROVISIONS. 
(a) IMPLEMENTATION PLAN.— 
(1) DEVELOPMENT.—The Secretary of Defense shall develop 
a plan to implement subchapters II and III of chapter 5 of 
title 37, United States Code, as added by section 661(a), and 
to correspondingly transition all of the special and incentive 
pay programs for members of the uniformed services solely 
to provisions of such subchapters. 
(2) SUBMISSION.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit the 
implementation plan to the congressional defense committees. 
(b) TRANSITION PERIOD.—During a transition period of not more 
than 10 years beginning on the date of the enactment of this 
Act, the Secretary of Defense, the Secretary of a military depart-
ment, and the Secretaries referred to in subsection (d) may continue 
to use the authorities in provisions in subchapter I of chapter 
5 of title 37, United States Code, as designated by section 661(a), 
but subject to the terms of such provisions and such modifications 
as the Secretary of Defense may include in the implementation 
plan, to provide bonuses and special and incentive pays for members 
of the uniformed services. 
(c) NOTICE OF IMPLEMENTATION OF NEW AUTHORITIES.—Not 
less than 30 days before the date on which a special pay or bonus 
authority provided under subchapter II of chapter 5 of title 37, 
United States Code, as added by section 661(a), is first utilized, 
the Secretary of Defense shall submit to the congressional defense 
committees a notice of the implementation of the authority, 
including whether, as a result of implementation of the authority, 
a corresponding authority in subchapter I of such chapter, as des-
ignated by section 661(a), will no longer be used. 
(d) COORDINATION.—The Secretary of Defense shall prepare 
the implementation plan in coordination with— 
(1) the Secretary of Homeland Security, with respect to 
the Coast Guard; 
(2) the Secretary of Health and Human Services, with 
respect to the commissioned corps of the Public Health Service; 
and 
(3) the Secretary of Commerce, with respect to the National 
Oceanic and Atmospheric Administration. 
(e) NO EFFECT ON FISCAL YEAR 2008 OBLIGATIONS.—During 
fiscal year 2008, obligations incurred under subchapters I, II, and
H. R. 4986—179 
III of chapter 5 of title 37, United States Code, as amended by 
section 661, to provide bonuses, incentive pays, special pays, and 
similar payments to members of the uniformed services under such 
subchapters may not exceed the obligations that would be incurred 
in the absence of the amendments made by such section. 
Subtitle G—Other Matters 
SEC. 671. REFERRAL BONUS AUTHORITIES. 
(a) CODIFICATION AND MODIFICATION OF ARMY REFERRAL BONUS 
AUTHORITY.— 
(1) ARMY REFERRAL BONUS.—Chapter 333 of title 10, United 
States Code, is amended by inserting after section 3251 the 
following new section: 
‘‘§ 3252. Bonus to encourage Army personnel to refer persons 
for enlistment in the Army 
‘‘(a) AUTHORITY TO PAY BONUS.— 
‘‘(1) AUTHORITY.—The Secretary of the Army may pay a 
bonus under this section to an individual referred to in para-
graph (2) who refers to an Army recruiter a person who has 
not previously served in an armed force and who, after such 
referral, enlists in the regular component of the Army or in 
the Army National Guard or Army Reserve. 
‘‘(2) INDIVIDUALS
ELIGIBLE
FOR
BONUS.—Subject to sub-
section (c), the following individuals are eligible for a referral 
bonus under this section: 
‘‘(A) A member in the regular component of the Army. 
‘‘(B) A member of the Army National Guard. 
‘‘(C) A member of the Army Reserve. 
‘‘(D) A member of the Army in a retired status, 
including a member under 60 years of age who, but for 
age, would be eligible for retired pay. 
‘‘(E) A civilian employee of the Department of the 
Army. 
‘‘(b) REFERRAL.—For purposes of this section, a referral for 
which a bonus may be paid under subsection (a) occurs— 
‘‘(1) when the individual concerned contacts an Army 
recruiter on behalf of a person interested in enlisting in the 
Army; or 
‘‘(2) when a person interested in enlisting in the Army 
contacts the Army recruiter and informs the recruiter of the 
role of the individual concerned in initially recruiting the per-
son. 
‘‘(c) CERTAIN REFERRALS INELIGIBLE.— 
‘‘(1) REFERRAL OF IMMEDIATE FAMILY.—A member of the 
Army or civilian employee of the Department of the Army 
may not be paid a bonus under subsection (a) for the referral 
of an immediate family member. 
‘‘(2) MEMBERS IN RECRUITING ROLES.—A member of the 
Army or civilian employee of the Department of the Army 
serving in a recruiting or retention assignment, or assigned 
to other duties regarding which eligibility for a bonus under 
subsection (a) could (as determined by the Secretary) be per-
ceived as creating a conflict of interest, may not be paid a 
bonus under subsection (a).
H. R. 4986—180 
‘‘(3) JUNIOR RESERVE OFFICERS’ TRAINING CORPS INSTRUC-
TORS.—A member of the Army detailed under subsection (c)(1) 
of section 2031 of this title to serve as an administrator or 
instructor in the Junior Reserve Officers’ Training Corps pro-
gram or a retired member of the Army employed as an adminis-
trator or instructor in the program under subsection (d) of 
such section may not be paid a bonus under subsection (a). 
‘‘(d) AMOUNT OF BONUS.—The amount of the bonus payable 
for a referral under subsection (a) may not exceed $2,000. The 
amount shall be payable as provided in subsection (e). 
‘‘(e) PAYMENT.—A bonus payable for a referral of a person 
under subsection (a) shall be paid as follows: 
‘‘(1) Not more than $1,000 shall be paid upon the 
commencement of basic training by the person. 
‘‘(2) Not more than $1,000 shall be paid upon the completion 
of basic training and individual advanced training by the per-
son. 
‘‘(f) RELATION
TO PROHIBITION
ON BOUNTIES.—The referral 
bonus authorized by this section is not a bounty for purposes 
of section 514(a) of this title. 
‘‘(g) COORDINATION WITH RECEIPT OF RETIRED PAY.—A bonus 
paid under this section to a member of the Army in a retired 
status is in addition to any compensation to which the member 
is entitled under this title, title 37 or 38, or any other provision 
of law. 
‘‘(h) DURATION OF AUTHORITY.—A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after 
December 31, 2008.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 3251 the following new item: 
‘‘3252. Bonus to encourage Army personnel to refer persons for enlistment in the 
Army.’’. 
(b) BONUS FOR REFERRAL OF PERSONS FOR APPOINTMENT AS 
OFFICERS TO SERVE IN HEALTH PROFESSIONS.— 
(1) HEALTH
PROFESSIONS
REFERRAL
BONUS.—Chapter 53 
of such title is amended by inserting before section 1031 the 
following new section: 
‘‘§ 1030. Bonus to encourage Department of Defense per-
sonnel to refer persons for appointment as offi-
cers to serve in health professions 
‘‘(a) AUTHORITY TO PAY BONUS.— 
‘‘(1) AUTHORITY.—The Secretary of Defense may authorize 
the appropriate Secretary to pay a bonus under this section 
to an individual referred to in paragraph (2) who refers to 
a military recruiter a person who has not previously served 
in an armed force and, after such referral, takes an oath of 
enlistment that leads to appointment as a commissioned officer, 
or accepts an appointment as a commissioned officer, in an 
armed force in a health profession designated by the appro-
priate Secretary for purposes of this section. 
‘‘(2) INDIVIDUALS
ELIGIBLE
FOR
BONUS.—Subject to sub-
section (c), the following individuals are eligible for a referral 
bonus under this section:
H. R. 4986—181 
‘‘(A) A member of the armed forces in a regular compo-
nent of the armed forces. 
‘‘(B) A member of the armed forces in a reserve compo-
nent of the armed forces. 
‘‘(C) A member of the armed forces in a retired status, 
including a member under 60 years of age who, but for 
age, would be eligible for retired or retainer pay. 
‘‘(D) A civilian employee of a military department or 
the Department of Defense. 
‘‘(b) REFERRAL.—For purposes of this section, a referral for 
which a bonus may be paid under subsection (a) occurs— 
‘‘(1) when the individual concerned contacts a military 
recruiter on behalf of a person interested in taking an oath 
of enlistment that leads to appointment as a commissioned 
officer, or accepting an appointment as a commissioned officer, 
as applicable, in an armed force in a health profession; or 
‘‘(2) when a person interested in taking an oath of enlist-
ment that leads to appointment as a commissioned officer, 
or accepting an appointment as a commissioned officer, as 
applicable, in an armed force in a health profession contacts 
a military recruiter and informs the recruiter of the role of 
the individual concerned in initially recruiting the person. 
‘‘(c) CERTAIN REFERRALS INELIGIBLE.— 
‘‘(1) REFERRAL OF IMMEDIATE FAMILY.—A member of the 
armed forces or civilian employee of a military department 
or the Department of Defense may not be paid a bonus under 
subsection (a) for the referral of an immediate family member. 
‘‘(2) MEMBERS IN RECRUITING ROLES.—A member of the 
armed forces or civilian employee of a military department 
or the Department of Defense serving in a recruiting or reten-
tion assignment, or assigned to other duties regarding which 
eligibility for a bonus under subsection (a) could (as determined 
by the appropriate Secretary) be perceived as creating a conflict 
of interest, may not be paid a bonus under subsection (a). 
‘‘(3) JUNIOR RESERVE OFFICERS’ TRAINING CORPS INSTRUC-
TORS.—A member of the armed forces detailed under subsection 
(c)(1) of section 2031 of this title to serve as an administrator 
or instructor in the Junior Reserve Officers’ Training Corps 
program or a retired member of the armed forces employed 
as an administrator or instructor in the program under sub-
section (d) of such section may not be paid a bonus under 
subsection (a). 
‘‘(d) AMOUNT OF BONUS.—The amount of the bonus payable 
for a referral under subsection (a) may not exceed $2,000. The 
amount shall be payable as provided in subsection (e). 
‘‘(e) PAYMENT.—A bonus payable for a referral of a person 
under subsection (a) shall be paid as follows: 
‘‘(1) Not more than $1,000 shall be paid upon the execution 
by the person of an agreement to serve as an officer in a 
health profession in an armed force for not less than 3 years, 
‘‘(2) Not more than $1,000 shall be paid upon the completion 
by the person of the initial period of military training as an 
officer. 
‘‘(f) RELATION
TO PROHIBITION
ON BOUNTIES.—The referral 
bonus authorized by this section is not a bounty for purposes 
of section 514(a) of this title.
H. R. 4986—182 
‘‘(g) COORDINATION WITH RECEIPT OF RETIRED PAY.—A bonus 
paid under this section to a member of the armed forces in a 
retired status is in addition to any compensation to which the 
member is entitled under this title, title 37 or 38, or any other 
provision of law. 
‘‘(h) APPROPRIATE SECRETARY DEFINED.—In this section, the 
term ‘appropriate Secretary’ means— 
‘‘(1) the Secretary of the Army, with respect to matters 
concerning the Army; 
‘‘(2) the Secretary of the Navy, with respect to matters 
concerning the Navy, the Marine Corps, and the Coast Guard 
when it is operating as a service in the Navy; 
‘‘(3) the Secretary of the Air Force, with respect to matters 
concerning the Air Force; and 
‘‘(4) the Secretary of Defense, with respect to personnel 
of the Department of Defense. 
‘‘(i) DURATION OF AUTHORITY.—A bonus may not be paid under 
subsection (a) with respect to any referral that occurs after 
December 31, 2008.’’. 
(2) CLERICAL AMENDMENTS.—The table of sections at the 
beginning of such chapter is amended by inserting before the 
item relating to section 1031 the following new item: 
‘‘1030. Bonus to encourage Department of Defense personnel to refer persons for ap-
pointment as officers to serve in health professions.’’. 
(c) 
REPEAL
OF
SUPERSEDED
ARMY
REFERRAL
BONUS 
AUTHORITY.— 
(1) 
REPEAL.—Section 
645 
of 
the 
National 
Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109–163) 
is repealed. 
(2) PAYMENT OF BONUSES UNDER SUPERSEDED AUTHORITY.— 
Any bonus payable under section 645 of the National Defense 
Authorization Act for Fiscal Year 2006, as in effect before 
its repeal by paragraph (1), shall remain payable after that 
date and shall be paid in accordance with the provisions of 
such section, as in effect on the day before the date of the 
enactment of this Act. 
SEC. 672. EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM 
FOR MEMBERS OF THE SELECTED RESERVE. 
(a) ADDITIONAL EDUCATIONAL LOANS ELIGIBLE
FOR REPAY-
MENT.—Paragraph (1) of subsection (a) of section 16301 of title 
10, United States Code, is amended— 
(1) by striking ‘‘or’’ at the end of subparagraph (B); 
(2) by striking the period at the end of subparagraph (C) 
and inserting ‘‘; or’’; and 
(3) by inserting after subparagraph (C) the following new 
subparagraph: 
‘‘(D) any loan incurred for educational purposes made by 
a lender that is— 
‘‘(i) an agency or instrumentality of a State; 
‘‘(ii) a financial or credit institution (including an insur-
ance company) that is subject to examination and super-
vision by an agency of the United States or any State; 
‘‘(iii) a pension fund approved by the Secretary for 
purposes of this section; or
H. R. 4986—183 
‘‘(iv) a nonprofit private entity designated by a State, 
regulated by that State, and approved by the Secretary 
for purposes of this section.’’. 
(b) PARTICIPATION OF OFFICERS IN PROGRAM.—Such subsection 
is further amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘Except as provided in paragraph (3), 
the Secretary’’ and inserting ‘‘The Secretary’’; and 
(B) by striking ‘‘an enlisted member of the Selected 
Reserve of the Ready Reserve of an armed force in a 
reserve component and military specialty’’ and inserting 
‘‘a member of the Selected Reserve of the Ready Reserve 
of an armed force in a reserve component and in an officer 
program or military specialty’’; and 
(2) by striking paragraph (3). 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION
HEADING.—The heading of such section is 
amended to read as follows: 
‘‘§ 16301. Education loan repayment program: members of 
Selected Reserve’’. 
(2) TABLE OF SECTIONS.—The table of sections at the begin-
ning of chapter 1609 of such title is amended by striking 
the item relating to section 16301 and inserting the following 
new item: 
‘‘16301. Education loan repayment program: members of Selected Reserve.’’. 
SEC. 673. ENSURING ENTRY INTO UNITED STATES AFTER TIME 
ABROAD FOR PERMANENT RESIDENT ALIEN MILITARY 
SPOUSES AND CHILDREN. 
Section 284 of the Immigration and Nationality Act (8 U.S.C. 
1354) is amended— 
(1) by striking ‘‘Nothing’’ and inserting ‘‘(a) Nothing’’; and 
(2) by adding at the end the following new subsection: 
‘‘(b) If a person lawfully admitted for permanent residence 
is the spouse or child of a member of the Armed Forces of the 
United States, is authorized to accompany the member and reside 
abroad with the member pursuant to the member’s official orders, 
and is so accompanying and residing with the member (in marital 
union if a spouse), then the residence and physical presence of 
the person abroad shall not be treated as— 
‘‘(1) an abandonment or relinquishment of lawful perma-
nent resident status for purposes of clause (i) of section 
101(a)(13)(C); or 
‘‘(2) an absence from the United States for purposes of 
clause (ii) of such section.’’. 
SEC. 674. OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND 
CHILDREN. 
(a) SPOUSES.—Section 319 of the Immigration and Nationality 
Act (8 U.S.C. 1430) is amended by adding at the end the following 
new subsection: 
‘‘(e)(1) In the case of a person lawfully admitted for permanent 
residence in the United States who is the spouse of a member 
of the Armed Forces of the United States, is authorized to accom-
pany such member and reside abroad with the member pursuant 
to the member’s official orders, and is so accompanying and residing
H. R. 4986—184 
with the member in marital union, such residence and physical 
presence abroad shall be treated, for purposes of subsection (a) 
and section 316(a), as residence and physical presence in— 
‘‘(A) the United States; and 
‘‘(B) any State or district of the Department of Homeland 
Security in the United States. 
‘‘(2) Notwithstanding any other provision of law, a spouse 
described in paragraph (1) shall be eligible for naturalization pro-
ceedings overseas pursuant to section 1701(d) of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108– 
136; 8 U.S.C. 1443a).’’. 
(b) CHILDREN.—Section 322 of the Immigration and Nationality 
Act (8 U.S.C. 1433) is amended by adding at the end the following 
new subsection: 
‘‘(d) In the case of a child of a member of the Armed Forces 
of the United States who is authorized to accompany such member 
and reside abroad with the member pursuant to the member’s 
official orders, and is so accompanying and residing with the 
member— 
‘‘(1) any period of time during which the member of the 
Armed Forces is residing abroad pursuant to official orders 
shall be treated, for purposes of subsection (a)(2)(A), as physical 
presence in the United States; 
‘‘(2) subsection (a)(5) shall not apply; and 
‘‘(3) the oath of allegiance described in subsection (b) may 
be subscribed to abroad pursuant to section 1701(d) of the 
National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108–136; 8 U.S.C. 1443a).’’. 
(c) OVERSEAS NATURALIZATION AUTHORITY.—Section 1701(d) of 
the National Defense Authorization Act for Fiscal Year 2004 (Public 
Law 108–136; 8 U.S.C. 1443a) is amended— 
(1) in the subsection heading, by inserting ‘‘AND THEIR 
SPOUSES AND CHILDREN’’ after ‘‘FORCES’’; and 
(2) by inserting ‘‘, and persons made eligible for naturaliza-
tion by section 319(e) or 322(d) of such Act,’’ after ‘‘Armed 
Forces’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of enactment of this Act and apply 
to any application for naturalization or issuance of a certificate 
of citizenship pending on or after such date. 
SEC. 675. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS 
OF NAVY AND MARINE CORPS SELECTED FOR PRO-
MOTION WHILE INTERNED AS PRISONERS OF WAR 
DURING WORLD WAR II TO TAKE INTO ACCOUNT 
CHANGES IN CONSUMER PRICE INDEX. 
(a) MODIFICATION.—Section 667(c) 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–170) is amended 
by adding at the end the following new paragraph: 
‘‘(3) The amount determined for a person under paragraph 
(1) shall be increased to reflect increases in cost of living since 
the basic pay referred to in paragraph (1)(B) was paid to or for 
that person, calculated on the basis of the Consumer Price Index 
(all items—United States city average) published monthly by the 
Bureau of Labor Statistics.’’.
H. R. 4986—185 
(b) RECALCULATION OF PREVIOUS PAYMENTS.—In the case of 
any payment of back pay made to or for a person under section 
667 of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 before the date of the enactment of this 
Act, the Secretary of the Navy shall— 
(1) recalculate the amount of back pay to which the person 
is entitled by reason of the amendment made by subsection 
(a); and 
(2) if the amount of back pay, as so recalculated, exceeds 
the amount of back pay so paid, pay the person, or the surviving 
spouse of the person, an amount equal to the excess. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—Improvements to Military Health Benefits 
Sec. 701. One-year extension of prohibition on increases in certain health care costs 
for members of the uniformed services. 
Sec. 702. Temporary prohibition on increase in copayments under retail pharmacy 
system of pharmacy benefits program. 
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal procurement 
of pharmaceuticals. 
Sec. 704. Stipend for members of reserve components for health care for certain de-
pendents. 
Sec. 705. Authority for expansion of persons eligible for continued health benefits 
coverage. 
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for certain 
members of the Selected Reserve. 
Sec. 707. Extension of pilot program for health care delivery. 
Sec. 708. Inclusion of mental health care in definition of health care and report on 
mental health care services. 
Subtitle B—Studies and Reports 
Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE 
Extra. 
Sec. 712. Report on training in preservation of remains under combat or combat- 
related conditions. 
Sec. 713. Report on patient satisfaction surveys. 
Sec. 714. Report on medical physical examinations of members of the Armed Forces 
before their deployment. 
Sec. 715. Report and study on multiple vaccinations of members of the Armed 
Forces. 
Sec. 716. Review of gender- and ethnic group-specific mental health services and 
treatment for members of the Armed Forces. 
Sec. 717. Licensed mental health counselors and the TRICARE program. 
Sec. 718. Report on funding of the Department of Defense for health care. 
Subtitle C—Other Matters 
Sec. 721. Prohibition on conversion of military medical and dental positions to civil-
ian medical and dental positions. 
Sec. 722. Establishment of Joint Pathology Center. 
Subtitle A—Improvements to Military 
Health Benefits 
SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON INCREASES IN 
CERTAIN HEALTH CARE COSTS FOR MEMBERS OF THE 
UNIFORMED SERVICES. 
(a) CHARGES UNDER CONTRACTS FOR MEDICAL CARE.—Section 
1097(e) of title 10, United States Code, is amended by striking 
‘‘September 30, 2007’’ and inserting ‘‘September 30, 2008’’. 
(b) CHARGES FOR INPATIENT CARE.—Section 1086(b)(3) of such 
title is amended by striking ‘‘September 30, 2007.’’ and inserting 
‘‘September 30, 2008’’.
H. R. 4986—186 
(c) PREMIUMS UNDER TRICARE COVERAGE FOR CERTAIN MEM-
BERS IN THE SELECTED RESERVE.—Section 1076d(d)(3) of such title 
is amended by striking ‘‘September 30, 2007’’ and inserting ‘‘Sep-
tember 30, 2008’’. 
SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS 
UNDER RETAIL PHARMACY SYSTEM OF PHARMACY BENE-
FITS PROGRAM. 
During the period beginning on October 1, 2007, and ending 
on September 30, 2008, the cost sharing requirements established 
under paragraph (6) of section 1074g(a) of title 10, United States 
Code, for pharmaceutical agents available through retail phar-
macies covered by paragraph (2)(E)(ii) of such section may not 
exceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
SEC. 703. INCLUSION OF TRICARE RETAIL PHARMACY PROGRAM IN 
FEDERAL PROCUREMENT OF PHARMACEUTICALS. 
(a) IN GENERAL.—Section 1074g of title 10, United States Code, 
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 sub-
section (f): 
‘‘(f) PROCUREMENT OF PHARMACEUTICALS BY TRICARE RETAIL 
PHARMACY PROGRAM.—With respect to any prescription filled on 
or after the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2008, the TRICARE retail phar-
macy program shall be treated as an element of the Department 
of Defense for purposes of the procurement of drugs by Federal 
agencies under section 8126 of title 38 to the extent necessary 
to ensure that pharmaceuticals paid for by the Department of 
Defense that are provided by pharmacies under the program to 
eligible covered beneficiaries under this section are subject to the 
pricing standards in such section 8126.’’. 
(b) REGULATIONS.—The Secretary of Defense shall, after con-
sultation with the other administering Secretaries under chapter 
55 of title 10, United States Code, modify the regulations under 
subsection (h) of section 1074g of title 10, United States Code 
(as redesignated by subsection (a)(1) of this section), to implement 
the requirements of subsection (f) of section 1074g of title 10, 
United States Code (as amended by subsection (a)(2) of this section). 
The Secretary shall so modify such regulations not later than 
December 31, 2007. 
SEC. 704. STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR 
HEALTH CARE FOR CERTAIN DEPENDENTS. 
The Secretary of Defense may, pursuant to regulations pre-
scribed by the Secretary, pay a stipend to a member of a reserve 
component of the Armed Forces who is called or ordered to active 
duty for a period of more than 30 days for purposes of maintaining 
civilian health care coverage for a dependant whom the Secretary 
determines to possess a special health care need that would be 
best met by remaining in the member’s civilian health plan. In 
making such determination, the Secretary shall consider whether—
H. R. 4986—187 
(1) the dependent of the member was receiving treatment 
for the special health care need before the call or order to 
active duty of the member; and 
(2) the call or order to active duty would result in an 
interruption in treatment or a change in health care provider 
for such treatment. 
SEC. 705. AUTHORITY FOR EXPANSION OF PERSONS ELIGIBLE FOR 
CONTINUED HEALTH BENEFITS COVERAGE. 
(a) AUTHORITY TO SPECIFY ADDITIONAL ELIGIBLE PERSONS.— 
Subsection (b) of section 1078a of title 10, United States Code, 
is amended by adding at the end the following new paragraph: 
‘‘(4) Any other person specified in regulations prescribed 
by the Secretary of Defense for purposes of this paragraph 
who loses entitlement to health care services under this chapter 
or section 1145 of this title, subject to such terms and conditions 
as the Secretary shall prescribe in the regulations.’’. 
(b) ELECTION OF COVERAGE.—Subsection (d) of such section 
is amended by adding at the end the following new paragraph: 
‘‘(4) In the case of a person described in subsection (b)(4), 
by such date as the Secretary shall prescribe in the regulations 
required for purposes of that subsection.’’. 
(c) PERIOD
OF COVERAGE.—Subsection (g)(1) of such section 
is amended— 
(1) in subparagraph (B), by striking ‘‘and’’ at the end; 
(2) in subparagraph (C), by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new subparagraph: 
‘‘(D) in the case of a person described in subsection (b)(4), 
the date that is 36 months after the date on which the person 
loses entitlement to health care services as described in that 
subsection.’’. 
SEC. 706. CONTINUATION OF ELIGIBILITY FOR TRICARE STANDARD 
COVERAGE FOR CERTAIN MEMBERS OF THE SELECTED 
RESERVE. 
(a) IN GENERAL.—Section 706(f) of the John Warner National 
Defense Authorization Act for Fiscal Year 2007 (Public Law 109– 
364; 120 Stat. 2282; 10 U.S.C. 1076d note) is amended— 
(1) by striking ‘‘Enrollments’’ and inserting ‘‘(1) Except 
as provided in paragraph (2), enrollments’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) The enrollment of a member in TRICARE Standard that 
is in effect on the day before health care under TRICARE Standard 
is provided pursuant to the effective date in subsection (g) shall 
not be terminated by operation of the exclusion of eligibility under 
subsection (a)(2) of such section 1076d, as so amended, for the 
duration of the eligibility of the member under TRICARE Standard 
as in effect on October 16, 2006.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on October 1, 2007. 
SEC. 707. EXTENSION OF PILOT PROGRAM FOR HEALTH CARE 
DELIVERY. 
(a) EXTENSION
OF DURATION
OF PILOT PROGRAM.—Section 
721(e) of the Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 1988;
H. R. 4986—188 
10 U.S.C. 1092 note) is amended by striking ‘‘and 2007’’ and 
inserting ‘‘, 2007, 2008, 2009, and 2010’’. 
(b) EXTENSION OF REPORT DEADLINE.—Section 721(f) of such 
Act is amended by striking ‘‘July 1, 2007’’ and inserting ‘‘July 
1, 2010’’. 
(c) REVISION IN SELECTION CRITERIA.—Section 721(d)(2) of such 
Act is amended by striking ‘‘expected to increase over the next 
five years’’ and inserting ‘‘has increased over the five years pre-
ceding 2008’’. 
(d) ADDITION TO REQUIREMENTS OF PILOT PROGRAM.—Section 
721(b) of such Act is amended— 
(1) by striking ‘‘and’’ at the end of paragraph (3); 
(2) by striking the period and inserting ‘‘; and’’ at the 
end of paragraph (4); and 
(3) by adding at the end the following: 
‘‘(5) collaborate with State and local authorities to create 
an arrangement to share and exchange, between the Depart-
ment of Defense and non-military health care systems, personal 
health information and data of military personnel and their 
families.’’. 
SEC. 708. INCLUSION OF MENTAL HEALTH CARE IN DEFINITION OF 
HEALTH CARE AND REPORT ON MENTAL HEALTH CARE 
SERVICES. 
(a) INCLUSION
OF MENTAL HEALTH CARE
IN DEFINITION
OF 
HEALTH CARE.—Section 1072 of title 10, United States Code, is 
amended by adding at the end the following new paragraph: 
‘‘(10) The term ‘health care’ includes mental health care.’’. 
(b) REPORT ON ACCESS TO MENTAL HEALTH CARE SERVICES.— 
Not later than one year after the date of the enactment of this 
Act, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives 
a report on the adequacy of access to mental health services under 
the TRICARE program, including in the geographic areas where 
surveys on the continued viability of TRICARE Standard and 
TRICARE Extra are conducted under section 711 of this Act. 
Subtitle B—Studies and Reports 
SEC. 711. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD 
AND TRICARE EXTRA. 
(a) REQUIREMENT FOR SURVEYS.— 
(1) IN GENERAL.—The Secretary of Defense shall conduct 
surveys of health care providers and beneficiaries who use 
TRICARE in the United States to determine, utilizing a rec-
onciliation of the responses of providers and beneficiaries to 
such surveys, each of the following: 
(A) How many health care providers in TRICARE 
Prime service areas selected under paragraph (3)(A) are 
accepting new patients under each of TRICARE Standard 
and TRICARE Extra. 
(B) How many health care providers in geographic 
areas in which TRICARE Prime is not offered are accepting 
patients under each of TRICARE Standard and TRICARE 
Extra.
H. R. 4986—189 
(C) The availability of mental health care providers 
in TRICARE Prime service areas selected under paragraph 
(3)(C) and in geographic areas in which TRICARE Prime 
is not offered. 
(2) BENCHMARKS.—The Secretary shall establish for pur-
poses of the surveys required by paragraph (1) benchmarks 
for primary care and specialty care providers, including mental 
health care providers, to be utilized to determine the adequacy 
of the availability of health care providers to beneficiaries 
eligible for TRICARE. 
(3) SCOPE OF SURVEYS.—The Secretary shall carry out the 
surveys required by paragraph (1) as follows: 
(A) In the case of the surveys required by subparagraph 
(A) of that paragraph, in at least 20 TRICARE Prime 
service areas in the United States in each of fiscal years 
2008 through 2011. 
(B) In the case of the surveys required by subparagraph 
(B) of that paragraph, in 20 geographic areas in which 
TRICARE Prime is not offered and in which significant 
numbers of beneficiaries who are members of the Selected 
Reserve reside. 
(C) In the case of the surveys required by subparagraph 
(C) of that paragraph, in at least 40 geographic areas. 
(4) PRIORITY FOR SURVEYS.—In prioritizing the areas which 
are to be surveyed under paragraph (1), the Secretary shall— 
(A) consult with representatives of TRICARE bene-
ficiaries and health care and mental health care providers 
to identify locations where TRICARE Standard bene-
ficiaries are experiencing significant levels of access-to- 
care problems under TRICARE Standard or TRICARE 
Extra; 
(B) give a high priority to surveying health care and 
mental health care providers in such areas; and 
(C) give a high priority to surveying beneficiaries and 
providers located in geographic areas with high concentra-
tions of members of the Selected Reserve. 
(5) INFORMATION FROM PROVIDERS.—The surveys required 
by paragraph (1) shall include questions seeking to determine 
from health care and mental health care providers the fol-
lowing: 
(A) Whether the provider is aware of the TRICARE 
program. 
(B) What percentage of the provider’s current patient 
population uses any form of TRICARE. 
(C) Whether the provider accepts patients for whom 
payment is made under the medicare program for health 
care and mental health care services. 
(D) If the provider accepts patients referred to in 
subparagraph (C), whether the provider would accept addi-
tional such patients who are not in the provider’s current 
patient population. 
(6) 
INFORMATION
FROM
BENEFICIARIES.—The 
surveys 
required by paragraph (1) shall include questions seeking 
information to determine from TRICARE beneficiaries whether 
they have difficulties in finding health care and mental health 
care providers willing to provide services under TRICARE 
Standard or TRICARE Extra.
H. R. 4986—190 
(b) GAO REVIEW.— 
(1) ONGOING REVIEW.—The Comptroller General shall, on 
an ongoing basis, review— 
(A) the processes, procedures, and analysis used by 
the Department of Defense to determine the adequacy of 
the number of health care and mental health care pro-
viders— 
(i) that currently accept TRICARE Standard or 
TRICARE Extra beneficiaries as patients under 
TRICARE Standard in each TRICARE area as of the 
date of completion of the review; and 
(ii) that would accept TRICARE Standard or 
TRICARE Extra beneficiaries as new patients under 
TRICARE Standard or TRICARE Extra, as applicable, 
within a reasonable time after the date of completion 
of the review; and 
(B) the actions taken by the Department of Defense 
to ensure ready access of TRICARE Standard beneficiaries 
to health care and mental health care under TRICARE 
Standard in each TRICARE area, including any pending 
or resolved requests for waiver of payment limits in order 
to improve access to health care or mental health care 
in a specific geographic area. 
(2) REPORTS.—The Comptroller General shall submit to 
the Committees on Armed Services of the Senate and the 
House of Representatives on a bi-annual basis a report on 
the results of the review under paragraph (1). Each report 
shall include the following: 
(A) An analysis of the adequacy of the surveys under 
subsection (a). 
(B) An identification of any impediments to achieving 
adequacy of availability of health care and mental health 
care under TRICARE Standard or TRICARE Extra. 
(C) An assessment of the adequacy of Department of 
Defense education programs to inform health care and 
mental health care providers about TRICARE Standard 
and TRICARE Extra. 
(D) An assessment of the adequacy of Department 
of Defense initiatives to encourage health care and mental 
health care providers to accept patients under TRICARE 
Standard and TRICARE Extra. 
(E) An assessment of the adequacy of information avail-
able to TRICARE Standard beneficiaries to facilitate access 
by such beneficiaries to health care and mental health 
care under TRICARE Standard and TRICARE Extra. 
(F) An assessment of any need for adjustment of health 
care and mental health care provider payment rates to 
attract participation in TRICARE Standard by appropriate 
numbers of health care and mental health care providers. 
(G) An assessment of the adequacy of Department 
of Defense programs to inform members of the Selected 
Reserve about the TRICARE Reserve Select program. 
(H) An assessment of the ability of TRICARE Reserve 
Select beneficiaries to receive care in their geographic area. 
(c) EFFECTIVE DATE.—This section shall take effect on October 
1, 2007.
H. R. 4986—191 
(d) REPEAL OF SUPERSEDED REQUIREMENTS AND AUTHORITY.— 
Section 723 of the National Defense Authorization Act for Fiscal 
Year 2004 (10 U.S.C. 1073 note) is repealed, effective as of October 
1, 2007. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘TRICARE Extra’’ means the option of the 
TRICARE program under which TRICARE Standard bene-
ficiaries may obtain discounts on cost-sharing as a result of 
using TRICARE network providers. 
(2) The term ‘‘TRICARE Prime’’ means the managed care 
option of the TRICARE program. 
(3) The term ‘‘TRICARE Prime service area’’ means a 
geographic area designated by the Department of Defense in 
which managed care support contractors develop a managed 
care network under TRICARE Prime. 
(4) 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. 
(5) The term ‘‘TRICARE Reserve Select’’ means the option 
of the TRICARE program that allows members of the Selected 
Reserve to enroll in TRICARE Standard, pursuant to section 
1076d of title 10, United States Code. 
(6) The term ‘‘member of the Selected Reserve’’ means 
a member of the Selected Reserve of the Ready Reserve of 
a reserve component of the Armed Forces. 
(7) The term ‘‘United States’’ means the United States 
(as defined in section 101(a) of title 10, United States Code), 
its possessions (as defined in such section), and the Common-
wealth of Puerto Rico. 
SEC. 712. REPORT ON TRAINING IN PRESERVATION OF REMAINS 
UNDER COMBAT OR COMBAT-RELATED CONDITIONS. 
(a) REPORT REQUIRED.—The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the requirements of section 567 
of the John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109–364; 120 Stat. 2224; 10 U.S.C. 1481 
note). 
(b) MATTERS COVERED.—The report shall include a detailed 
description of the implementation of such section, including— 
(1) where the training program is taking place; 
(2) who is providing the training; 
(3) the number of each type of military health care profes-
sional trained to date; and 
(4) what the training covers. 
(c) DEADLINE.—The report required by this section shall be 
submitted not later than 180 days after the date of the enactment 
of this Act. 
SEC. 713. REPORT ON PATIENT SATISFACTION SURVEYS. 
(a) REPORT REQUIRED.—Not later than March 1, 2008, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the ongoing patient satisfaction surveys 
taking place in Department of Defense inpatient and outpatient 
settings at military treatment facilities. 
(b) CONTENT.—The report required under subsection (a) shall 
include the following:
H. R. 4986—192 
(1) The types of survey questions asked. 
(2) How frequently the surveying is conducted. 
(3) How often the results are analyzed and reported back 
to the treatment facilities. 
(4) To whom survey feedback is made available. 
(5) How best practices are incorporated for quality improve-
ment. 
(6) An analysis of the effect of inpatient and outpatient 
surveys on quality improvement and a comparison of patient 
satisfaction survey programs with patient satisfaction survey 
programs used by other public and private health care systems 
and organizations. 
(c) USE
OF REPORT INFORMATION.—The Secretary shall use 
information in the report as the basis for a plan for improvements 
in patient satisfaction surveys used to assess health care at military 
treatment facilities in order to ensure the provision of high quality 
health care and hospital services in such facilities. 
SEC. 714. REPORT ON MEDICAL PHYSICAL EXAMINATIONS OF MEM-
BERS OF THE ARMED FORCES BEFORE THEIR DEPLOY-
MENT. 
Not later than April 1, 2008, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
the House of Representatives a report setting forth the following: 
(1) A comparison of the policies of the military departments 
concerning medical physical examinations of members of the 
Armed Forces before their deployment, including an identifica-
tion of instances in which a member (including a member 
of a reserve component) may be required to undergo multiple 
physical examinations, from the time of notification of an 
upcoming deployment through the period of preparation for 
deployment. 
(2) An assessment of the current policies related to, as 
well as the feasibility of, each of the following: 
(A) A single predeployment physical examination for 
members of the Armed Forces before their deployment. 
(B) A single system for tracking electronically the 
results of examinations under subparagraph (A) that can 
be shared among the military departments and thereby 
eliminate redundancy of medical physical examinations for 
members of the Armed Forces before their deployment. 
SEC. 715. REPORT AND STUDY ON MULTIPLE VACCINATIONS OF MEM-
BERS OF THE ARMED FORCES. 
(a) REPORT REQUIRED.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the policies of the Department of 
Defense for administering and evaluating the vaccination of mem-
bers of the Armed Forces. 
(b) ELEMENTS.—The report required by subsection (a) shall 
include the following: 
(1) An assessment of the Department’s policies governing 
the administration of multiple vaccinations in a 24-hour period, 
including the procedures providing for a full review of an 
individual’s medical history prior to the administration of mul-
tiple vaccinations, and whether such policies and procedures
H. R. 4986—193 
differ for members of the Armed Forces on active duty and 
members of reserve components. 
(2) An assessment of how the Department’s policies on 
multiple vaccinations in a 24-hour period conform to current 
regulations of the Food and Drug Administration and research 
performed or being performed by the Centers for Disease Con-
trol, other non-military Federal agencies, and non-Federal 
institutions on multiple vaccinations in a 24-hour period. 
(3) An assessment of the Department’s procedures for initi-
ating investigations of deaths of members of the Armed Forces 
in which vaccinations may have played a role, including 
whether such investigations can be requested by family mem-
bers of the deceased individuals. 
(4) The number of deaths of members of the Armed Forces 
since May 18, 1998, that the Department has investigated 
for the potential role of vaccine administration, including both 
the number of deaths investigated that was alleged to have 
involved more than one vaccine administered in a given 24- 
hour period and the number of deaths investigated that was 
determined to have involved more than one vaccine adminis-
tered in a given 24-hour period. 
(5) An assessment of the procedures for providing the Adju-
tants General of the various States and territories with up- 
to-date information on the effectiveness and potential allergic 
reactions and side effects of vaccines required to be taken 
by National Guard members. 
(6) An assessment of whether procedures are in place to 
provide that the Adjutants General of the various States and 
territories retain updated medical records of each National 
Guard member called up for active duty. 
SEC. 716. REVIEW OF GENDER- AND ETHNIC GROUP-SPECIFIC MENTAL 
HEALTH SERVICES AND TREATMENT FOR MEMBERS OF 
THE ARMED FORCES. 
(a) COMPREHENSIVE REVIEW.—The Secretary of Defense shall 
conduct a comprehensive review of— 
(1) the need for gender- and ethnic group-specific mental 
health treatment and services for members of the Armed Forces; 
and 
(2) the efficacy and adequacy of existing gender- and ethnic 
group-specific mental health treatment programs and services 
for members of the Armed Forces, to include availability of 
and access to such programs. 
(b) ELEMENTS.—The review required by subsection (a) shall 
include, but not be limited to, an assessment of the following: 
(1) The need for gender- and ethnic group-specific mental 
health outreach, prevention, and treatment services for mem-
bers of the Armed Forces. 
(2) The access to and efficacy of existing gender- and ethnic 
group-specific mental health outreach, prevention, and treat-
ment services and programs (including substance abuse pro-
grams). 
(3) The availability of gender- and ethnic group-specific 
services and treatment for members of the Armed Forces who 
experienced sexual assault or abuse.
H. R. 4986—194 
(4) The access to and need for treatment facilities focusing 
on the gender- and ethnic group-specific mental health care 
needs of members of the Armed Forces. 
(5) The need for further clinical research on the gender- 
and ethnic group-specific needs of members of the Armed Forces 
who served in a combat zone. 
(c) REPORT.—Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the congressional defense committees a report on the review 
required by subsection (a). 
SEC. 717. LICENSED MENTAL HEALTH COUNSELORS AND THE TRICARE 
PROGRAM. 
(a) REGULATIONS.—The Secretary of Defense shall prescribe 
regulations to establish criteria that licensed or certified mental 
health counselors shall meet in order to be able to independently 
provide care to TRICARE beneficiaries and receive payment under 
the TRICARE program for such services. The criteria shall include 
requirements for education level, licensure, certification, and clinical 
experience as considered appropriate by the Secretary. 
(b) STUDY REQUIRED.—The Secretary of Defense shall enter 
into a contract with the Institute of Medicine of the National 
Academy of Sciences, or another similarly qualified independent 
academic medical organization, for the purpose of— 
(1) conducting an independent study of the credentials, 
preparation, and training of individuals practicing as licensed 
mental health counselors; and 
(2) making recommendations for permitting licensed mental 
health 
counselors 
to 
practice 
independently 
under 
the 
TRICARE program. 
(c) ELEMENTS OF STUDY.— 
(1) EDUCATIONAL REQUIREMENTS.—The study required by 
subsection (b) shall provide for an assessment of the educational 
requirements and curricula relevant to mental health practice 
for licensed mental health counselors, including types of degrees 
recognized, certification standards for graduate programs for 
such profession, and recognition of undergraduate coursework 
for completion of graduate degree requirements. 
(2) LICENSING REQUIREMENTS.—The study required by sub-
section (b) shall provide for an assessment of State licensing 
requirements for licensed mental health counselors, including 
for each level of licensure if a State issues more than one 
type of license for the profession. The assessment shall examine 
requirements in the areas of education, training, examination, 
continuing education, and ethical standards, and shall include 
an evaluation of the extent to which States authorize members 
of the licensed mental health counselor profession to diagnose 
and treat mental illnesses. 
(3) CLINICAL
EXPERIENCE
REQUIREMENTS.—The study 
required by subsection (b) shall provide for an analysis of 
the requirements for clinical experience for a licensed mental 
health counselor to be recognized under regulations for the 
TRICARE program, and recommendations, if any, for standard-
ization or adjustment of such requirements. 
(4) INDEPENDENT
PRACTICE
UNDER
OTHER
FEDERAL
PRO-
GRAMS.—The study required by subsection (b) shall provide 
for an assessment of the extent to which licensed mental health
H. R. 4986—195 
counselors are authorized to practice independently under other 
Federal programs (such as the Medicare program, the Depart-
ment of Veterans Affairs, the Indian Health Service, and Head 
Start), and a review of the relationship, if any, between recogni-
tion of mental health professions under the Medicare program 
and independent practice authority for such profession under 
the TRICARE program. 
(5) INDEPENDENT
PRACTICE
UNDER
FEHBP.—The study 
required by subsection (b) shall provide for an assessment 
of the extent to which licensed mental health counselors are 
authorized to practice independently under the Federal 
Employee Health Benefits Program and private insurance 
plans. The assessment shall identify the States having laws 
requiring private insurers to cover, or offer coverage of, the 
services of members of licensed mental health counselors and 
shall identify the conditions, if any, that are placed on coverage 
of practitioners under the profession by insurance plans and 
how frequently these types of conditions are used by insurers. 
(6) HISTORICAL
REVIEW
OF
REGULATIONS.—The study 
required by subsection (b) shall provide for a review of the 
history of regulations prescribed by the Department of Defense 
regarding which members of the mental health profession are 
recognized as providers under the TRICARE program as inde-
pendent practitioners, and an examination of the recognition 
by the Department of third-party certification for members 
of such profession. 
(7) CLINICAL CAPABILITIES STUDIES.—The study required 
by subsection (b) shall include a review of outcome studies 
and of the literature regarding the comparative quality and 
effectiveness of care provided by licensed mental health coun-
selors and provide an independent review of the findings. 
(d) RECOMMENDATIONS FOR TRICARE INDEPENDENT PRACTICE 
AUTHORITY.—The recommendations provided under subsection 
(b)(2) shall include recommendations regarding modifications of cur-
rent policy for the TRICARE program with respect to allowing 
licensed mental health counselors to practice independently under 
the TRICARE program. 
(e) REPORT.—Not later than March 1, 2009, the Secretary of 
Defense shall submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the review 
required by subsection (b). 
SEC. 718. REPORT ON FUNDING OF THE DEPARTMENT OF DEFENSE 
FOR HEALTH CARE. 
(a) REPORT.—If the President submits to Congress the budget 
for a fiscal year under section 1105 of title 31, United States 
Code, and the aggregate amount included in that budget for the 
Department of Defense for health care for such fiscal year is less 
than the aggregate amount provided by Congress for the Depart-
ment for health care for the preceding fiscal year, and, in the 
case of the Department, the total allocation from the Defense Health 
Program to any military department is less than the total of such 
allocation in the preceding fiscal year, the President shall submit 
to Congress a report on— 
(1) the reasons for the determination that inclusion of 
a lesser aggregate amount or allocation to any military depart-
ment is in the national interest; and
H. R. 4986—196 
(2) the anticipated effects of the inclusion of such lesser 
aggregate amount or allocation to any military department 
on the access to and delivery of medical and support services 
to members of the Armed Forces and their family members. 
(b) TERMINATION.—The section shall not be in effect after 
December 31, 2017. 
Subtitle C—Other Matters 
SEC. 721. PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND 
DENTAL POSITIONS TO CIVILIAN MEDICAL AND DENTAL 
POSITIONS. 
(a) PROHIBITION.—The Secretary of a military department may 
not convert any military medical or dental position to a civilian 
medical or dental position during the period beginning on October 
1, 2007, and ending on September 30, 2012. 
(b) RESTORATION
OF CERTAIN POSITIONS
TO MILITARY POSI-
TIONS.—In the case of any military medical or dental position that 
is converted to a civilian medical or dental position during the 
period beginning on October 1, 2004, and ending on September 
30, 2008, if the position is not filled by a civilian by September 
30, 2008, the Secretary of the military department concerned shall 
restore the position to a military medical or dental position that 
can be filled only by a member of the Armed Forces who is a 
health professional. 
(c) REPORT.— 
(1) REQUIREMENT.—The Secretary of Defense shall submit 
to the congressional defense committees a report on conversions 
made during fiscal year 2007 not later than 180 days after 
the enactment of this Act. 
(2) MATTERS COVERED.—The report shall include the fol-
lowing: 
(A) The number of military medical or dental positions, 
by grade or band and specialty, converted to civilian med-
ical or dental positions. 
(B) The results of a market survey in each affected 
area of the availability of civilian medical and dental care 
providers in such area in order to determine whether there 
were civilian medical and dental care providers available 
in such area adequate to fill the civilian positions created 
by the conversion of military medical and dental positions 
to civilian positions in such area. 
(C) An analysis, by affected area, showing the extent 
to which access to health care and cost of health care 
was affected in both the direct care and purchased care 
systems, including an assessment of the effect of any 
increased shifts in patient load from the direct care to 
the purchased care system, or any delays in receipt of 
care in either the direct or purchased care system because 
of the conversions. 
(D) The extent to which military medical and dental 
positions converted to civilian medical or dental positions 
affected recruiting and retention of uniformed medical and 
dental personnel. 
(E) A comparison of the full costs for the military 
medical and dental positions converted with the full costs
H. R. 4986—197 
for civilian medical and dental positions, including expenses 
such as recruiting, salary, benefits, training, and any other 
costs the Department identifies. 
(F) An assessment showing that the military medical 
or dental positions converted were in excess of the military 
medical and dental positions needed to meet medical and 
dental readiness requirements of the uniformed services, 
as determined jointly by all the uniformed services. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘military medical or dental position’’ means 
a position for the performance of health care functions within 
the Armed Forces held by a member of the Armed Forces. 
(2) The term ‘‘civilian medical or dental position’’ means 
a position for the performance of health care functions within 
the Department of Defense held by an employee of the Depart-
ment or of a contractor of the Department. 
(3) The term ‘‘uniformed services’’ has the meaning given 
that term in section 1072(1) of title 10, United States Code. 
(4) The term ‘‘conversion’’, with respect to a military med-
ical or dental position, means a change of the position to a 
civilian medical or dental position, effective as of the date 
of the manning authorization document of the military depart-
ment making the change (through a change in designation 
from military to civilian in the document, the elimination of 
the listing of the position as a military position in the document, 
or through any other means indicating the change in the docu-
ment or otherwise). 
(e) REPEAL.—Section 742 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 
Stat. 2306) is repealed. 
SEC. 722. ESTABLISHMENT OF JOINT PATHOLOGY CENTER. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The Secretary of Defense proposed to disestablish all 
elements of the Armed Forces Institute of Pathology, except 
the National Medical Museum and the Tissue Repository, as 
part of the recommendations of the Secretary for the closure 
of Walter Reed Army Medical Center in the 2005 round of 
defense base closure and realignment. 
(2) The Defense Base Closure and Realignment Commission 
altered, but did not reject, the proposal of the Secretary of 
Defense to disestablish the Armed Forces Institute of Pathology. 
(3) The Commission’s recommendation that the Armed 
Forces Institute of Pathology’s ‘‘capabilities not specified in 
this recommendation will be absorbed into other DOD, Federal, 
or civilian facilities’’ provides the flexibility to retain a Joint 
Pathology Center as a Department of Defense or Federal entity. 
(b) SENSE
OF CONGRESS.—It is the sense of Congress that 
the Armed Forces Institute of Pathology has provided important 
medical benefits to the Armed Forces and to the United States 
and that the Federal Government should retain a Joint Pathology 
Center. 
(c) ESTABLISHMENT.— 
(1) ESTABLISHMENT REQUIRED.—The President shall estab-
lish and maintain a Joint Pathology Center that shall function 
as the reference center in pathology for the Federal Govern-
ment.
H. R. 4986—198 
(2) ESTABLISHMENT WITHIN DOD.—Except as provided in 
paragraph (3), the Joint Pathology Center shall be established 
in the Department of Defense, consistent with the final rec-
ommendations of the 2005 Defense Base Closure and Realign-
ment Commission, as approved by the President. 
(3) ESTABLISHMENT IN ANOTHER DEPARTMENT.—If the Presi-
dent makes a determination, within 180 days after the date 
of the enactment of this Act, that the Joint Pathology Center 
cannot be established in the Department of Defense, the Joint 
Pathology Center shall be established as an element of a Fed-
eral agency other than the Department of Defense. The Presi-
dent shall incorporate the selection of such agency into the 
determination made under this paragraph. 
(d) SERVICES.—The Joint Pathology Center shall provide, at 
a minimum, the following: 
(1) Diagnostic pathology consultation services in medicine, 
dentistry, and veterinary sciences. 
(2) Pathology education, to include graduate medical edu-
cation, including residency and fellowship programs, and con-
tinuing medical education. 
(3) Diagnostic pathology research. 
(4) Maintenance and continued modernization of the Tissue 
Repository and, as appropriate, utilization of the Repository 
in conducting the activities described in paragraphs (1) through 
(3). 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS 
Sec. 800. Short title. 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Internal controls for procurements on behalf of the Department of De-
fense by certain non-Defense agencies. 
Sec. 802. Lead systems integrators. 
Sec. 803. Reinvestment in domestic sources of strategic materials. 
Sec. 804. Clarification of the protection of strategic materials critical to national se-
curity. 
Sec. 805. Procurement of commercial services. 
Sec. 806. Specification of amounts requested for procurement of contract services. 
Sec. 807. Inventories and reviews of contracts for services. 
Sec. 808. Independent management reviews of contracts for services. 
Sec. 809. Implementation 
and 
enforcement 
of 
requirements 
applicable 
to 
undefinitized contractual actions. 
Sec. 810. Clarification of limited acquisition authority for Special Operations Com-
mand. 
Subtitle B—Provisions Relating to Major Defense Acquisition Programs 
Sec. 811. Requirements applicable to multiyear contracts for the procurement of 
major systems of the Department of Defense. 
Sec. 812. Changes to Milestone B certifications. 
Sec. 813. Comptroller General report on Department of Defense organization and 
structure for major defense acquisition programs. 
Sec. 814. Clarification of submission of cost or pricing data on noncommercial modi-
fications of commercial items. 
Sec. 815. Clarification of rules regarding the procurement of commercial items. 
Sec. 816. Review of systemic deficiencies on major defense acquisition programs. 
Sec. 817. Investment strategy for major defense acquisition programs. 
Sec. 818. Report on implementation of recommendations on total ownership cost for 
major weapon systems.
H. R. 4986—199 
Subtitle C—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 821. Plan for restricting Government-unique contract clauses on commercial 
contracts. 
Sec. 822. Extension of authority for use of simplified acquisition procedures for cer-
tain commercial items. 
Sec. 823. Five-year extension of authority to carry out certain prototype projects. 
Sec. 824. Exemption of Special Operations Command from certain requirements for 
certain contracts relating to vessels, aircraft, and combat vehicles. 
Sec. 825. Provision of authority to maintain equipment to unified combatant com-
mand for joint warfighting. 
Sec. 826. Market research. 
Sec. 827. Modification of competition requirements for purchases from Federal Pris-
on Industries. 
Sec. 828. Multiyear contract authority for electricity from renewable energy 
sources. 
Sec. 829. Procurement of fire resistant rayon fiber for the production of uniforms 
from foreign sources. 
Sec. 830. Comptroller General review of noncompetitive awards of congressional 
and executive branch interest items. 
Subtitle D—Accountability in Contracting 
Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan. 
Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts and con-
tracting processes in Iraq and Afghanistan. 
Sec. 843. Enhanced competition requirements for task and delivery order contracts. 
Sec. 844. Public disclosure of justification and approval documents for noncompeti-
tive contracts. 
Sec. 845. Disclosure of government contractor audit findings. 
Sec. 846. Protection for contractor employees from reprisal for disclosure of certain 
information. 
Sec. 847. Requirements for senior Department of Defense officials seeking employ-
ment with defense contractors. 
Sec. 848. Report on contractor ethics programs of Major Defense contractors. 
Sec. 849. Contingency contracting training for personnel outside the acquisition 
workforce and evaluations of Army Commission recommendations. 
Subtitle E—Acquisition Workforce Provisions 
Sec. 851. Requirement for section on defense acquisition workforce in strategic 
human capital plan. 
Sec. 852. Department of Defense Acquisition Workforce Development Fund. 
Sec. 853. Extension of authority to fill shortage category positions for certain Fed-
eral acquisition positions. 
Sec. 854. Repeal of sunset of acquisition workforce training fund. 
Sec. 855. Federal acquisition workforce improvements. 
Subtitle F—Contracts in Iraq and Afghanistan 
Sec. 861. Memorandum of understanding on matters relating to contracting. 
Sec. 862. Contractors performing private security functions in areas of combat oper-
ations. 
Sec. 863. Comptroller General reviews and reports on contracting in Iraq and Af-
ghanistan. 
Sec. 864. Definitions and other general provisions. 
Subtitle G—Defense Materiel Readiness Board 
Sec. 871. Establishment of Defense Materiel Readiness Board. 
Sec. 872. Critical materiel readiness shortfalls. 
Subtitle H—Other Matters 
Sec. 881. Clearinghouse for rapid identification and dissemination of commercial 
information technologies. 
Sec. 882. Authority to license certain military designations and likenesses of weap-
ons systems to toy and hobby manufacturers. 
Sec. 883. Modifications to limitation on contracts to acquire military flight simu-
lator. 
Sec. 884. Requirements relating to waivers of certain domestic source limitations 
relating to specialty metals. 
Sec. 885. Telephone services for military personnel serving in combat zones. 
Sec. 886. Enhanced authority to acquire products and services produced in Iraq and 
Afghanistan.
H. R. 4986—200 
Sec. 887. Defense Science Board review of Department of Defense policies and pro-
cedures for the acquisition of information technology. 
Sec. 888. Green procurement policy. 
Sec. 889. Comptroller General review of use of authority under the Defense Produc-
tion Act of 1950. 
Sec. 890. Prevention of export control violations. 
Sec. 891. Procurement goal for Native Hawaiian-serving institutions and Alaska 
Native-serving institutions. 
Sec. 892. Competition for procurement of small arms supplied to Iraq and Afghani-
stan. 
SEC. 800. SHORT TITLE. 
This title may be cited as the ‘‘Acquisition Improvement and 
Accountability Act of 2007’’. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF 
THE DEPARTMENT OF DEFENSE BY CERTAIN NON- 
DEFENSE AGENCIES. 
(a) INSPECTORS GENERAL REVIEWS AND DETERMINATIONS.— 
(1) IN
GENERAL.—For each covered non-defense agency, 
the Inspector General of the Department of Defense and the 
Inspector General of such covered non-defense agency shall, 
not later than the date specified in paragraph (2), jointly— 
(A) review— 
(i) the procurement policies, procedures, and 
internal controls of such covered non-defense agency 
that are applicable to the procurement of property 
and services on behalf of the Department by such 
covered non-defense agency; and 
(ii) the administration of such policies, procedures, 
and internal controls; and 
(B) determine in writing whether such covered non- 
defense agency is or is not compliant with defense procure-
ment requirements. 
(2) DEADLINE
FOR
REVIEWS
AND
DETERMINATIONS.—The 
reviews and determinations required by paragraph (1) shall 
take place as follows: 
(A) In the case of the General Services Administration, 
by not later than March 15, 2010. 
(B) In the case of each of the Department of the 
Treasury, the Department of the Interior, and the National 
Aeronautics and Space Administration, by not later than 
March 15, 2011. 
(C) In the case of each of the Department of Veterans 
Affairs and the National Institutes of Health, by not later 
than March 15, 2012. 
(3) 
SEPARATE
REVIEWS
AND
DETERMINATIONS.—The 
Inspector General of the Department of Defense and the 
Inspector General of a covered non-defense agency may by 
joint agreement conduct separate reviews of the procurement 
of property and services on behalf of the Department of Defense 
that are conducted by separate business units, or under sepa-
rate government-wide acquisition contracts, of the covered non- 
defense agency. If such separate reviews are conducted, the
H. R. 4986—201 
Inspectors General shall make a separate determination under 
paragraph (1)(B) with respect to each such separate review. 
(4) MEMORANDA
OF
UNDERSTANDING
FOR
REVIEWS
AND 
DETERMINATIONS.—Not later than one year before a review 
and determination is required under this subsection with 
respect to a covered non-defense agency, the Inspector General 
of the Department of Defense and the Inspector General of 
the covered non-defense agency shall enter into a memorandum 
of understanding with each other to carry out such review 
and determination. 
(5) TERMINATION
OF
NON-COMPLIANCE
DETERMINATION.— 
If the Inspector General of the Department of Defense and 
the Inspector General of a covered non-defense agency deter-
mine, pursuant to paragraph (1)(B), that a covered non-defense 
agency is not compliant with defense procurement require-
ments, the Inspectors General shall terminate such a deter-
mination effective on the date on which the Inspectors General 
jointly— 
(A) determine that the non-defense agency is compliant 
with defense procurement requirements; and 
(B) notify the Secretary of Defense of that determina-
tion. 
(6) RESOLUTION OF DISAGREEMENTS.—If the Inspector Gen-
eral of the Department of Defense and the Inspector General 
of a covered non-defense agency are unable to agree on a 
joint determination under this subsection, a determination by 
the Inspector General of the Department of Defense under 
this subsection shall be conclusive for the purposes of this 
section. 
(b) LIMITATION ON PROCUREMENTS ON BEHALF OF DEPARTMENT 
OF DEFENSE.— 
(1) Except as provided in paragraph (2), an acquisition 
official of the Department of Defense may place an order, 
make a purchase, or otherwise procure property or services 
for the Department of Defense in excess of the simplified 
acquisition threshold through a non-defense agency only if— 
(A) in the case of a procurement by any non-defense 
agency in any fiscal year, the head of the non-defense 
agency has certified that the non-defense agency will 
comply with defense procurement requirements for the 
fiscal year; 
(B) in the case of— 
(i) a procurement by a covered non-defense agency 
in a fiscal year for which a memorandum of under-
standing is required by subsection (a)(4), the Inspector 
General of the Department of Defense and the 
Inspector General of the covered non-defense agency 
have entered into such a memorandum of under-
standing; or 
(ii) a procurement by a covered non-defense agency 
in a fiscal year following the Inspectors General review 
and determination required by subsection (a), the 
Inspectors General have determined that a covered 
non-defense agency is compliant with defense procure-
ment requirements or have terminated a prior deter-
mination of non-compliance in accordance with sub-
section (a)(5); and
H. R. 4986—202 
(C) the procurement is not otherwise prohibited by 
section 817 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109– 
364) or section 811 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109–163). 
(2) EXCEPTION FOR PROCUREMENTS OF NECESSARY PROPERTY 
AND SERVICES.— 
(A) IN GENERAL.—The limitation in paragraph (1) shall 
not apply to the procurement of property and services 
on behalf of the Department of Defense by a non-defense 
agency during any fiscal year for which there is in effect 
a written determination of the Under Secretary of Defense 
for Acquisition, Technology, and Logistics that it is nec-
essary in the interest of the Department of Defense to 
procure property and services through the non-defense 
agency during such fiscal year. 
(B) SCOPE OF PARTICULAR EXCEPTION.—A written deter-
mination with respect to a non-defense agency under 
subparagraph (A) shall apply to any category of procure-
ments through the non-defense agency that is specified 
in the determination. 
(c) GUIDANCE ON INTERAGENCY CONTRACTING.— 
(1) REQUIREMENT.—Not later than 180 days after the date 
of enactment of this Act, the Secretary of Defense shall issue 
guidance on the use of interagency contracting by the Depart-
ment of Defense. 
(2) MATTERS COVERED.—The guidance required by para-
graph (1) shall address the circumstances in which it is appro-
priate for Department of Defense acquisition officials to procure 
goods or services through a contract entered into by an agency 
outside the Department of Defense. At a minimum, the guid-
ance shall address— 
(A) the circumstances in which it is appropriate for 
such acquisition officials to use direct acquisitions; 
(B) the circumstances in which it is appropriate for 
such acquisition officials to use assisted acquisitions; 
(C) the circumstances in which it is appropriate for 
such acquisition officials to use interagency contracting 
to acquire items unique to the Department of Defense 
and the procedures for approving such interagency con-
tracting; 
(D) the circumstances in which it is appropriate for 
such acquisition officials to use interagency contracting 
to acquire items that are already being provided under 
a contract awarded by the Department of Defense; 
(E) tools that should be used by such acquisition offi-
cials to determine whether items are already being provided 
under a contract awarded by the Department of Defense; 
and 
(F) procedures for ensuring that defense procurement 
requirements are identified and communicated to outside 
agencies involved in interagency contracting. 
(d) COMPLIANCE
WITH
DEFENSE
PROCUREMENT
REQUIRE-
MENTS.—For the purposes of this section, a non-defense agency 
is compliant with defense procurement requirements if the procure-
ment policies, procedures, and internal controls of the non-defense 
agency applicable to the procurement of products and services on
H. R. 4986—203 
behalf of the Department of Defense, and the manner in which 
they are administered, are adequate to ensure the compliance of 
the non-defense agency with the requirements of laws and regula-
tions (including applicable Department of Defense financial manage-
ment regulations) that apply to procurements of property and serv-
ices made directly by the Department of Defense. 
(e) TREATMENT
OF PROCUREMENTS
FOR FISCAL YEAR PUR-
POSES.—For the purposes of this section, a procurement shall be 
treated as being made during a particular fiscal year to the extent 
that funds are obligated by the Department of Defense for the 
procurement in that fiscal year. 
(f) DEFINITIONS.—In this section: 
(1) NON-DEFENSE AGENCY.—The term ‘‘non-defense agency’’ 
means any department or agency of the Federal Government 
other than the Department of Defense. Such term includes 
a covered non-defense agency. 
(2) COVERED
NON-DEFENSE
AGENCY.—The term ‘‘covered 
non-defense agency’’ means each of the following: 
(A) The General Services Administration. 
(B) The Department of the Treasury. 
(C) The Department of the Interior. 
(D) The National Aeronautics and Space Administra-
tion. 
(E) The Department of Veterans Affairs. 
(F) The National Institutes of Health. 
(3) GOVERNMENT-WIDE ACQUISITION CONTRACT.—The term 
‘‘government-wide acquisition contract’’ means a task or 
delivery order contract that— 
(A) is entered into by a non-defense agency; and 
(B) may be used as the contract under which property 
or services are procured for one or more other departments 
or agencies of the Federal Government. 
(4) SIMPLIFIED ACQUISITION THRESHOLD.—The term ‘‘sim-
plified acquisition threshold’’ has the meaning provided by sec-
tion 2302(7) of title 10, United States Code. 
(5) INTERAGENCY
CONTRACTING.—The term ‘‘interagency 
contracting’’ means the exercise of the authority under section 
1535 of title 31, United States Code, or other statutory 
authority, for Federal agencies to purchase goods and services 
under contracts entered into or administered by other agencies. 
(6) ACQUISITION OFFICIAL.—The term ‘‘acquisition official’’, 
with respect to the Department of Defense, means— 
(A) a contracting officer of the Department of Defense; 
or 
(B) any other Department of Defense official authorized 
to approve a direct acquisition or an assisted acquisition 
on behalf of the Department of Defense. 
(7) DIRECT
ACQUISITION.—The term ‘‘direct acquisition’’, 
with respect to the Department of Defense, means the type 
of interagency contracting through which the Department of 
Defense orders an item or service from a government-wide 
acquisition contract maintained by a non-defense agency. 
(8) ASSISTED ACQUISITION.—The term ‘‘assisted acquisition’’, 
with respect to the Department of Defense, means the type 
of interagency contracting through which acquisition officials 
of a non-defense agency award a contract or task or delivery
H. R. 4986—204 
order for the procurement of goods or services on behalf of 
the Department of Defense. 
SEC. 802. LEAD SYSTEMS INTEGRATORS. 
(a) PROHIBITIONS
ON
THE USE
OF LEAD SYSTEMS INTEGRA-
TORS.— 
(1) PROHIBITION
ON
NEW
LEAD
SYSTEMS
INTEGRATORS.— 
Effective October 1, 2010, the Department of Defense may 
not award a new contract for lead systems integrator functions 
in the acquisition of a major system to any entity that was 
not performing lead systems integrator functions in the acquisi-
tion of the major system prior to the date of the enactment 
of this Act. 
(2) PROHIBITION ON LEAD SYSTEMS INTEGRATORS BEYOND 
LOW-RATE INITIAL PRODUCTION.—Effective on the date of the 
enactment of this Act, the Department of Defense may award 
a new contract for lead systems integrator functions in the 
acquisition of a major system only if— 
(A) the major system has not yet proceeded beyond 
low-rate initial production; or 
(B) the Secretary of Defense determines in writing 
that it would not be practicable to carry out the acquisition 
without continuing to use a contractor to perform lead 
systems integrator functions and that doing so is in the 
best interest of the Department. 
(3) REQUIREMENTS
RELATING
TO
DETERMINATIONS.—A 
determination under paragraph (2)(B)— 
(A) shall specify the reasons why it would not be prac-
ticable to carry out the acquisition without continuing to 
use a contractor to perform lead systems integrator func-
tions (including a discussion of alternatives, such as the 
use of the Department of Defense workforce, or a system 
engineering and technical assistance contractor); 
(B) shall include a plan for phasing out the use of 
contracted lead systems integrator functions over the 
shortest period of time consistent with the interest of the 
national defense; 
(C) may not be delegated below the level of the Under 
Secretary of Defense for Acquisition, Technology, and Logis-
tics; and 
(D) shall be provided to the Committees on Armed 
Services of the Senate and the House of Representatives 
at least 45 days before the award of a contract pursuant 
to the determination. 
(b) ACQUISITION WORKFORCE.— 
(1) REQUIREMENT.—The Secretary of Defense shall ensure 
that the acquisition workforce is of the appropriate size and 
skill level necessary— 
(A) to accomplish inherently governmental functions 
related to acquisition of major systems; and 
(B) to effectuate the purpose of subsection (a) to mini-
mize and eventually eliminate the use of contractors to 
perform lead systems integrator functions. 
(2) REPORT.—The Secretary shall include an update on 
the progress made in complying with paragraph (1) in the 
annual report required by section 820 of the John Warner
H. R. 4986—205 
National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109–364; 120 Stat. 2330). 
(c) EXCEPTION FOR CONTRACTS FOR OTHER MANAGEMENT SERV-
ICES.—The Department of Defense may continue to award contracts 
for the procurement of services the primary purpose of which is 
to perform acquisition support functions with respect to the develop-
ment or production of a major system, if the following conditions 
are met with respect to each such contract: 
(1) The contract prohibits the contractor from performing 
inherently governmental functions. 
(2) The Department of Defense organization responsible 
for the development or production of the major system ensures 
that Federal employees are responsible for— 
(A) determining courses of action to be taken in the 
best interest of the government; and 
(B) determining best technical performance for the 
warfighter. 
(3) The contract requires that the prime contractor for 
the contract may not advise or recommend the award of a 
contract or subcontract for the development or production of 
the major system to an entity owned in whole or in part 
by the prime contractor. 
(d) DEFINITIONS.—In this section: 
(1) LEAD SYSTEMS INTEGRATOR.—The term ‘‘lead systems 
integrator’’ means— 
(A) a prime contractor for the development or produc-
tion of a major system, if the prime contractor is not 
expected at the time of award to perform a substantial 
portion of the work on the system and the major sub-
systems; or 
(B) a prime contractor under a contract for the procure-
ment of services the primary purpose of which is to perform 
acquisition functions closely associated with inherently 
governmental functions with respect to the development 
or production of a major system. 
(2) MAJOR
SYSTEM.—The term ‘‘major system’’ has the 
meaning given such term in section 2302d of title 10, United 
States Code. 
(3) LOW-RATE INITIAL PRODUCTION.—The term ‘‘low-rate ini-
tial production’’ has the meaning given such term in section 
2400 of title 10, United States Code. 
SEC. 803. REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC 
MATERIALS. 
(a) ASSESSMENT REQUIRED.—Not later than 180 days after the 
date of the enactment of this Act, the Strategic Materials Protection 
Board established pursuant to section 187 of title 10, United States 
Code, shall perform an assessment of the extent to which domestic 
producers of strategic materials are investing and planning to invest 
on a sustained basis in the processes, infrastructure, workforce 
training, and facilities required for the continued domestic produc-
tion of such materials to meet national defense requirements. 
(b) COOPERATION OF DOMESTIC PRODUCERS.—The Department 
of Defense may take into consideration the degree of cooperation 
of any domestic producer of strategic materials with the assessment 
conducted under subsection (a) when determining how much weight 
to accord any comments provided by such domestic producer
H. R. 4986—206 
regarding a proposed waiver of domestic source limitations pursuant 
to section 2533b of title 10, United States Code. 
(c) REPORT
TO CONGRESSIONAL DEFENSE COMMITTEES.—The 
Board shall include the findings and recommendations of the assess-
ment required by subsection (a) in the first report submitted to 
Congress pursuant to section 187(d) of title 10, United States Code, 
after the completion of such assessment. 
(d) DEFINITION.—The term ‘‘strategic material’’ means— 
(1) a material designated as critical to national security 
by the Strategic Materials Protection Board in accordance with 
section 187 of title 10, United States Code; or 
(2) a specialty metal as defined by section 2533b of title 
10, United States Code. 
SEC. 804. CLARIFICATION OF THE PROTECTION OF STRATEGIC MATE-
RIALS CRITICAL TO NATIONAL SECURITY. 
(a) PROHIBITION.—Subsection (a) of section 2533b of title 10, 
United States Code, is amended— 
(1) by striking ‘‘Except as provided in subsections (b) 
through (j), funds appropriated or otherwise available to the 
Department of Defense may not be used for the procurement 
of—’’ and inserting ‘‘Except as provided in subsections (b) 
through (m), the acquisition by the Department of Defense 
of the following items is prohibited:’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘the following’’ and inserting ‘‘The fol-
lowing’’; and 
(B) by striking ‘‘; or’’ and inserting a period; and 
(3) in paragraph (2), by striking ‘‘a speciality’’ and inserting 
‘‘A specialty’’. 
(b) APPLICABILITY TO ACQUISITION OF COMMERCIAL ITEMS.— 
Subsection (h) of such section is amended to read as follows: 
‘‘(h) APPLICABILITY TO ACQUISITIONS OF COMMERCIAL ITEMS.— 
(1) Except as provided in paragraphs (2) and (3), this section applies 
to acquisitions of commercial items, notwithstanding sections 34 
and 35 of the Office of Federal Procurement Policy Act (41 U.S.C. 
430 and 431). 
‘‘(2) This section does not apply to contracts or subcontracts 
for the acquisition of commercially available off-the-shelf items, 
as defined in section 35(c) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 431(c)), other than— 
‘‘(A) contracts or subcontracts for the acquisition of spe-
cialty metals, including mill products, such as bar, billet, slab, 
wire, plate and sheet, that have not been incorporated into 
end items, subsystems, assemblies, or components; 
‘‘(B) contracts or subcontracts for the acquisition of forgings 
or castings of specialty metals, unless such forgings or castings 
are incorporated into commercially available off-the-shelf end 
items, subsystems, or assemblies; 
‘‘(C) contracts or subcontracts for commercially available 
high performance magnets unless such high performance 
magnets are incorporated into commercially available off-the- 
shelf-end items or subsystems; and 
‘‘(D) contracts or subcontracts for commercially available 
off-the-shelf fasteners, unless such fasteners are—
H. R. 4986—207 
‘‘(i) incorporated into commercially available off-the- 
shelf end items, subsystems, assemblies, or components; 
or 
‘‘(ii) purchased as provided in paragraph (3). 
‘‘(3) This section does not apply to fasteners that are commercial 
items that are purchased under a contract or subcontract with 
a manufacturer of such fasteners, if the manufacturer has certified 
that it will purchase, during the relevant calendar year, an amount 
of domestically melted specialty metal, in the required form, for 
use in the production of such fasteners for sale to the Department 
of Defense and other customers, that is not less than 50 percent 
of the total amount of the specialty metal that it will purchase 
to carry out the production of such fasteners.’’. 
(c) ELECTRONIC COMPONENTS.—Subsection (g) of such section 
is amended by striking ‘‘commercially available’’ and all that follows 
through the end of the subsection and inserting ‘‘electronic compo-
nents, unless the Secretary of Defense, upon the recommendation 
of the Strategic Materials Protection Board pursuant to section 
187 of this title, determines that the domestic availability of a 
particular electronic component is critical to national security.’’. 
(d) ADDITIONAL EXCEPTIONS.—Section 2533b of title 10, United 
States Code, as amended by subsections (a), (b), and (c), is further 
amended— 
(1) by redesignating subsections (i) and (j) as subsections 
(l) and (m), respectively; and 
(2) by inserting after subsection (h) the following new sub-
sections: 
‘‘(i) EXCEPTIONS FOR PURCHASES OF SPECIALTY METALS BELOW 
MINIMUM THRESHOLD.—(1) Notwithstanding subsection (a), the Sec-
retary of Defense or the Secretary of a military department may 
accept delivery of an item containing specialty metals that were 
not melted in the United States if the total amount of noncompliant 
specialty metals in the item does not exceed 2 percent of the 
total weight of specialty metals in the item. 
‘‘(2) This subsection does not apply to high performance 
magnets. 
‘‘(j) STREAMLINED COMPLIANCE FOR COMMERCIAL DERIVATIVE 
MILITARY ARTICLES.—(1) Subsection (a) shall not apply to an item 
acquired under a prime contract if the Secretary of Defense or 
the Secretary of a military department determines that— 
‘‘(A) the item is a commercial derivative military article; 
and 
‘‘(B) the contractor certifies that the contractor and its 
subcontractors have entered into a contractual agreement, or 
agreements, to purchase an amount of domestically melted 
specialty metal in the required form, for use during the period 
of contract performance in the production of the commercial 
derivative military article and the related commercial article, 
that is not less than the greater of— 
‘‘(i) an amount equivalent to 120 percent of the amount 
of specialty metal that is required to carry out the produc-
tion of the commercial derivative military article (including 
the work performed under each subcontract); or 
‘‘(ii) an amount equivalent to 50 percent of the amount 
of specialty metal that is purchased by the contractor and
H. R. 4986—208 
its subcontractors for use during such period in the produc-
tion of the commercial derivative military article and the 
related commercial article. 
‘‘(2) For the purposes of this subsection, the amount of specialty 
metal that is required to carry out the production of the commercial 
derivative military article includes specialty metal contained in 
any item, including commercially available off-the-shelf items, incor-
porated into such commercial derivative military article. 
‘‘(k) NATIONAL SECURITY WAIVER.—(1) Notwithstanding sub-
section (a), the Secretary of Defense may accept the delivery of 
an end item containing noncompliant materials if the Secretary 
determines in writing that acceptance of such end item is necessary 
to the national security interests of the United States. 
‘‘(2) A written determination under paragraph (1)— 
‘‘(A) may not be delegated below the level of the Deputy 
Secretary of Defense or the Under Secretary of Defense for 
Acquisition, Technology, and Logistics; 
‘‘(B) shall specify the quantity of end items to which the 
waiver applies and the time period over which the waiver 
applies; and 
‘‘(C) shall be provided to the congressional defense commit-
tees prior to making such a determination (except that in 
the case of an urgent national security requirement, such cer-
tification may be provided to the defense committees up to 
7 days after it is made). 
‘‘(3)(A) In any case in which the Secretary makes a determina-
tion under paragraph (1), the Secretary shall determine whether 
or not the noncompliance was knowing and willful. 
‘‘(B) If the Secretary determines that the noncompliance was 
not knowing or willful, the Secretary shall ensure that the con-
tractor or subcontractor responsible for the noncompliance develops 
and implements an effective plan to ensure future compliance. 
‘‘(C) If the Secretary determines that the noncompliance was 
knowing or willful, the Secretary shall— 
‘‘(i) require the development and implementation of a plan 
to ensure future compliance; and 
‘‘(ii) consider suspending or debarring the contractor or 
subcontractor until such time as the contractor or subcontractor 
has effectively addressed the issues that lead to such noncompli-
ance.’’. 
(e) ADDITIONAL DEFINITIONS.—Subsection (m) of section 2533b 
of title 10, United States Code, as redesignated by subsection (c), 
is further amended by adding at the end the following: 
‘‘(3) The term ‘acquisition’ has the meaning provided in 
section 4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403). 
‘‘(4) The term ‘required form’ shall not apply to end items 
or to their components at any tier. The term ‘required form’ 
means in the form of mill product, such as bar, billet, wire, 
slab, plate or sheet, and in the grade appropriate for the produc-
tion of— 
‘‘(A) a finished end item delivered to the Department 
of Defense; or 
‘‘(B) a finished component assembled into an end item 
delivered to the Department of Defense.
H. R. 4986—209 
‘‘(5) The term ‘commercially available off-the-shelf’, has 
the meaning provided in section 35(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 431(c)). 
‘‘(6) The term ‘assemblies’ means items forming a portion 
of a system or subsystem that can be provisioned and replaced 
as an entity and which incorporates multiple, replaceable parts. 
‘‘(7) The term ‘commercial derivative military article’ means 
an item procured by the Department of Defense that is or 
will be produced using the same production facilities, a common 
supply chain, and the same or similar production processes 
that are used for the production of articles predominantly used 
by the general public or by nongovernmental entities for pur-
poses other than governmental purposes. 
‘‘(8) The term ‘subsystem’ means a functional grouping 
of items that combine to perform a major function within an 
end item, such as electrical power, attitude control, and propul-
sion. 
‘‘(9) The term ‘end item’ means the final production product 
when assembled or completed, and ready for issue, delivery, 
or deployment. 
‘‘(10) The term ‘subcontract’ includes a subcontract at any 
tier.’’. 
(f) CONFORMING AMENDMENTS.—Section 2533b of title 10, 
United States Code, is further amended— 
(1) in subsection (c)— 
(A) in the heading, by striking ‘‘PROCUREMENTS’’ and 
inserting ‘‘ACQUISITIONS’’; and 
(B) in paragraphs (1) and (2), by striking ‘‘Procure-
ments’’ and inserting ‘‘Acquisitions’’; 
(2) in subsection (d), by striking ‘‘procurement’’ each place 
it appears and inserting ‘‘acquisition’’; and 
(3) in subsections (f) and (g), by striking ‘‘procurements’’ 
each place it appears and inserting ‘‘acquisitions’’. 
(g) IMPLEMENTATION.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary of Defense shall prescribe 
regulations on the implementation of this section and the amend-
ments made by this section, including specific guidance on how 
thresholds established in subsections (h)(3), (i) and (j) of section 
2533b of title 10, United States Code, as amended by this section, 
should be implemented. 
(h) REVISION OF DOMESTIC NONAVAILABILITY DETERMINATIONS 
AND RULES.—No later than 180 days after the date of the enactment 
of this Act, any domestic nonavailability determination under sec-
tion 2533b of title 10, United States Code, including a class devi-
ation, or rules made by the Department of Defense between 
December 6, 2006, and the date of the enactment of this Act, 
shall be reviewed and amended, as necessary, to comply with the 
amendments made by this section. This requirement shall not apply 
to a domestic nonavailability determination that applies to— 
(1) an individual contract that was entered into before 
the date of the enactment of this Act; or 
(2) an individual Department of Defense program, except 
to the extent that such domestic nonavailability determination 
applies to contracts entered into after the date of the enactment 
of this Act. 
(i) TRANSPARENCY REQUIREMENT
FOR COMMERCIALLY AVAIL-
ABLE OFF-THE-SHELF ITEM EXCEPTION.—The Secretary of Defense
H. R. 4986—210 
shall submit to the Committees on Armed Services of the Senate 
and House of Representatives, not later than December 30, 2008, 
a report on the use of authority provided under subsection (h) 
of section 2533b of title 10, United States Code, as amended by 
this section. Such report shall include, at a minimum, a description 
of types of items being procured as commercially available off- 
the-shelf items under such subsection and incorporated into non-
commercial items. The Secretary shall submit an update of such 
report to such committees not later than December 30, 2009. 
SEC. 805. PROCUREMENT OF COMMERCIAL SERVICES. 
(a) REGULATIONS REQUIRED.—Not later than 180 days after 
the date of the enactment of this Act , the Secretary of Defense 
shall modify the regulations of the Department of Defense for 
the procurement of commercial services for or on behalf of the 
Department of Defense. 
(b) APPLICABILITY OF COMMERCIAL PROCEDURES.— 
(1) SERVICES OF A TYPE SOLD IN MARKETPLACE.—The regula-
tions modified pursuant to subsection (a) shall ensure that 
services that are not offered and sold competitively in substan-
tial quantities in the commercial marketplace, but are of a 
type offered and sold competitively in substantial quantities 
in the commercial marketplace, may be treated as commercial 
items for purposes of section 2306a of title 10, United States 
Code (relating to truth in negotiations), only if the contracting 
officer determines in writing that the offeror has submitted 
sufficient information to evaluate, through price analysis, the 
reasonableness of the price for such services. 
(2) INFORMATION SUBMITTED.—To the extent necessary to 
make a determination under paragraph (1), the contracting 
officer may request the offeror to submit— 
(A) prices paid for the same or similar commercial 
items under comparable terms and conditions by both 
government and commercial customers; and 
(B) if the contracting officer determines that the 
information described in subparagraph (A) is not sufficient 
to determine the reasonableness of price, other relevant 
information regarding the basis for price or cost, including 
information on labor costs, material costs, and overhead 
rates. 
(c) TIME-AND-MATERIALS CONTRACTS.— 
(1) COMMERCIAL
ITEM
ACQUISITIONS.—The regulations 
modified pursuant to subsection (a) shall ensure that procedures 
applicable to time-and-materials contracts and labor-hour con-
tracts for commercial item acquisitions may be used only for 
the following: 
(A) Services procured for support of a commercial item, 
as described in section 4(12)(E) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(12)(E)). 
(B) Emergency repair services. 
(C) Any other commercial services only to the extent 
that the head of the agency concerned approves a deter-
mination in writing by the contracting officer that— 
(i) the services to be acquired are commercial serv-
ices as defined in section 4(12)(F) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(12)(F));
H. R. 4986—211 
(ii) if the services to be acquired are subject to 
subsection (b), the offeror of the services has submitted 
sufficient information in accordance with that sub-
section; 
(iii) such services are commonly sold to the general 
public through use of time-and-materials or labor-hour 
contracts; and 
(iv) the use of a time-and-materials or labor-hour 
contract type is in the best interest of the Government. 
(2) NON-COMMERCIAL ITEM ACQUISITIONS.—Nothing in this 
subsection shall be construed to preclude the use of procedures 
applicable to time-and-materials contracts and labor-hour con-
tracts for non-commercial item acquisitions for the acquisition 
of any category of services. 
SEC. 806. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCURE-
MENT OF CONTRACT SERVICES. 
(a) SPECIFICATION OF AMOUNTS REQUESTED.—The budget jus-
tification materials submitted to Congress in support of the budget 
of the Department of Defense for any fiscal year after fiscal year 
2009 shall identify clearly and separately the amounts requested 
in each budget account for the procurement of contract services. 
(b) INFORMATION PROVIDED.—For each budget account, the 
materials submitted shall clearly identify— 
(1) the amount requested for each Department of Defense 
component, installation, or activity; and 
(2) the amount requested for each type of service to be 
provided. 
(c) CONTRACT SERVICES DEFINED.—In this section, the term 
‘‘contract services’’— 
(1) means services from contractors; but 
(2) excludes services relating to research and development 
and services relating to military construction. 
SEC. 807. INVENTORIES AND REVIEWS OF CONTRACTS FOR SERVICES. 
(a) INVENTORY REQUIREMENT.—Section 2330a of title 10, United 
States Code, is amended— 
(1) by redesignating subsection (d) as subsection (g); 
(2) by striking subsection (c) and inserting the following: 
‘‘(c) INVENTORY.—(1) Not later than the end of the third quarter 
of each fiscal year, the Secretary of Defense shall submit to Congress 
an annual inventory of the activities performed during the preceding 
fiscal year pursuant to contracts for services for or on behalf of 
the Department of Defense. The entry for an activity on an inven-
tory under this subsection shall include, for the fiscal year covered 
by such entry, the following: 
‘‘(A) The functions and missions performed by the con-
tractor. 
‘‘(B) The contracting organization, the component of the 
Department of Defense administering the contract, and the 
organization whose requirements are being met through con-
tractor performance of the function. 
‘‘(C) The funding source for the contract under which the 
function is performed by appropriation and operating agency. 
‘‘(D) The fiscal year for which the activity first appeared 
on an inventory under this section. 
‘‘(E) The number of full-time contractor employees (or its 
equivalent) paid for the performance of the activity.
H. R. 4986—212 
‘‘(F) A determination whether the contract pursuant to 
which the activity is performed is a personal services contract. 
‘‘(G) A summary of the data required to be collected for 
the activity under subsection (a). 
‘‘(2) The inventory required under this subsection shall be sub-
mitted in unclassified form, but may include a classified annex. 
‘‘(d) PUBLIC AVAILABILITY OF INVENTORIES.—Not later than 30 
days after the date on which an inventory under subsection (c) 
is required to be submitted to Congress, the Secretary shall— 
‘‘(1) make the inventory available to the public; and 
‘‘(2) publish in the Federal Register a notice that the inven-
tory is available to the public. 
‘‘(e) REVIEW AND PLANNING REQUIREMENTS.—Within 90 days 
after the date on which an inventory is submitted under subsection 
(c), the Secretary of the military department or head of the Defense 
Agency responsible for activities in the inventory shall— 
‘‘(1) review the contracts and activities in the inventory 
for which such Secretary or agency head is responsible; 
‘‘(2) ensure that— 
‘‘(A) each contract on the list that is a personal services 
contract has been entered into, and is being performed, 
in accordance with applicable statutory and regulatory 
requirements; 
‘‘(B) the activities on the list do not include any inher-
ently governmental functions; and 
‘‘(C) to the maximum extent practicable, the activities 
on the list do not include any functions closely associated 
with inherently governmental functions; 
‘‘(3) identify activities that should be considered for conver-
sion— 
‘‘(A) to performance by civilian employees of the 
Department of Defense pursuant to section 2463 of this 
title; or 
‘‘(B) to an acquisition approach that would be more 
advantageous to the Department of Defense; and 
‘‘(4) develop a plan to provide for appropriate consideration 
of the conversion of activities identified under paragraph (3) 
within a reasonable period of time. 
‘‘(f) RULE
OF CONSTRUCTION.—Nothing in this section shall 
be construed to authorize the performance of personal services 
by a contractor except where expressly authorized by a provision 
of law other than this section.’’; and 
(3) by adding at the end of subsection (g) (as so redesig-
nated) the following new paragraphs: 
‘‘(3) FUNCTION
CLOSELY
ASSOCIATED
WITH
INHERENTLY 
GOVERNMENTAL FUNCTIONS.—The term ‘function closely associ-
ated with inherently governmental functions’ has the meaning 
given that term in section 2383(b)(3) of this title. 
‘‘(4) INHERENTLY
GOVERNMENTAL
FUNCTIONS.—The term 
‘inherently governmental functions’ has the meaning given that 
term in section 2383(b)(2) of this title. 
‘‘(5) PERSONAL
SERVICES
CONTRACT.—The term ‘personal 
services contract’ means a contract under which, as a result 
of its terms or conditions or the manner of its administration 
during performance, contractor personnel are subject to the 
relatively continuous supervision and control of one or more 
Government officers or employees, except that the giving of
H. R. 4986—213 
an order for a specific article or service, with the right to 
reject the finished product or result, is not the type of super-
vision or control that makes a contract a personal services 
contract.’’. 
(b) EFFECTIVE DATE.— 
(1) The amendments made by subsection (a) shall be effec-
tive upon the date of the enactment of this Act. 
(2) The first inventory required by section 2330a(c) of title 
10, United States Code, as added by subsection (a), shall be 
submitted not later than the end of the third quarter of fiscal 
year 2008. 
SEC. 808. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR 
SERVICES. 
(a) GUIDANCE AND INSTRUCTIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall issue guidance, with detailed implementation instructions, 
for the Department of Defense to provide for periodic independent 
management reviews of contracts for services. The independent 
management review guidance and instructions issued pursuant to 
this subsection shall be designed to evaluate, at a minimum— 
(1) contract performance in terms of cost, schedule, and 
requirements; 
(2) the use of contracting mechanisms, including the use 
of competition, the contract structure and type, the definition 
of contract requirements, cost or pricing methods, the award 
and negotiation of task orders, and management and oversight 
mechanisms; 
(3) the contractor’s use, management, and oversight of sub-
contractors; 
(4) the staffing of contract management and oversight func-
tions; and 
(5) the extent of any pass-throughs, and excessive pass- 
through charges (as defined in section 852 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007), by 
the contractor. 
(b) ADDITIONAL SUBJECT OF REVIEW.—In addition to the mat-
ters required by subsection (a), the guidance and instructions issued 
pursuant to subsection (a) shall provide for procedures for the 
periodic review of contracts under which one contractor provides 
oversight for services performed by other contractors. In particular, 
the procedures shall be designed to evaluate, at a minimum— 
(1) the extent of the agency’s reliance on the contractor 
to perform acquisition functions closely associated with inher-
ently governmental functions as defined in section 2383(b)(3) 
of title 10, United States Code; and 
(2) the financial interest of any prime contractor performing 
acquisition functions described in paragraph (1) in any contract 
or subcontract with regard to which the contractor provided 
advice or recommendations to the agency. 
(c) ELEMENTS.—The guidance and instructions issued pursuant 
to subsection (a) shall address, at a minimum— 
(1) the contracts subject to independent management 
reviews, including any applicable thresholds and exceptions; 
(2) the frequency with which independent management 
reviews shall be conducted;
H. R. 4986—214 
(3) the composition of teams designated to perform inde-
pendent management reviews; 
(4) any phase-in requirements needed to ensure that quali-
fied staff are available to perform independent management 
reviews; 
(5) procedures for tracking the implementation of rec-
ommendations made by independent management review 
teams; and 
(6) procedures for developing and disseminating lessons 
learned from independent management reviews. 
(c) REPORTS.— 
(1) REPORT ON GUIDANCE AND INSTRUCTION.—Not later than 
270 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the congressional defense 
committees a report setting forth the guidance and instructions 
issued pursuant to subsection (a). 
(2) GAO REPORT ON IMPLEMENTATION.—Not later than two 
years after the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to the congres-
sional defense committees a report on the implementation of 
the guidance and instructions issued pursuant to subsection 
(a). 
SEC. 809. IMPLEMENTATION AND ENFORCEMENT OF REQUIREMENTS 
APPLICABLE 
TO 
UNDEFINITIZED 
CONTRACTUAL 
ACTIONS. 
(a) GUIDANCE AND INSTRUCTIONS.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall issue guidance, with detailed implementation instructions, 
for the Department of Defense to ensure the implementation and 
enforcement of requirements applicable to undefinitized contractual 
actions. 
(b) ELEMENTS.—The guidance and instructions issued pursuant 
to subsection (a) shall address, at a minimum— 
(1) the circumstances in which it is, and is not, appropriate 
for Department of Defense officials to use undefinitized contrac-
tual actions; 
(2) approval requirements (including thresholds) for the 
use of undefinitized contractual actions; 
(3) procedures for ensuring that timelines for the 
definitization of undefinitized contractual actions are met; 
(4) procedures for ensuring compliance with regulatory 
limitations on the obligation of funds pursuant to undefinitized 
contractual actions; 
(5) procedures for ensuring compliance with regulatory 
limitations on profit or fee with respect to costs incurred before 
the definitization of an undefinitized contractual action; and 
(6) reporting requirements for undefinitized contractual 
actions that fail to meet required timelines for definitization 
or fail to comply with regulatory limitations on the obligation 
of funds or on profit or fee. 
(c) REPORTS.— 
(1) REPORT ON GUIDANCE AND INSTRUCTIONS.—Not later 
than 210 days after the date of the enactment of this Act, 
the Secretary of Defense shall submit to the congressional 
defense committees a report setting forth the guidance and 
instructions issued pursuant to subsection (a).
H. R. 4986—215 
(2) GAO REPORT.—Not later than two years after the date 
of the enactment of this Act, the Comptroller General of the 
United States shall submit to the congressional defense commit-
tees a report on the extent to which the guidance and instruc-
tions issued pursuant to subsection (a) have resulted in 
improvements to— 
(A) the level of insight that senior Department of 
Defense officials have into the use of undefinitized contrac-
tual actions; 
(B) the appropriate use of undefinitized contractual 
actions; 
(C) the timely definitization of undefinitized contrac-
tual actions; and 
(D) the negotiation of appropriate profits and fees for 
undefinitized contractual actions. 
SEC. 810. CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR 
SPECIAL OPERATIONS COMMAND. 
Section 167(e)(4) of title 10, United States Code, is amended— 
(1) by redesignating subparagraph (C) as subparagraph 
(D); and 
(2) by inserting after subparagraph (B) the following new 
subparagraph: 
‘‘(C)(i) The staff of the commander shall include a command 
acquisition executive, who shall be responsible for the overall super-
vision of acquisition matters for the special operations command. 
The command acquisition executive shall have the authority to— 
‘‘(I) negotiate memoranda of agreement with the military 
departments to carry out the acquisition of equipment, material, 
supplies, and services described in subparagraph (A) on behalf 
of the command; 
‘‘(II) supervise the acquisition of equipment, material, sup-
plies, and services described in subparagraph (A), regardless 
of whether such acquisition is carried out by the command, 
or by a military department pursuant to a delegation of 
authority by the command; 
‘‘(III) represent the command in discussions with the mili-
tary departments regarding acquisition programs for which 
the command is a customer; and 
‘‘(IV) work with the military departments to ensure that 
the command is appropriately represented in any joint working 
group or integrated product team regarding acquisition pro-
grams for which the command is a customer. 
‘‘(ii) The command acquisition executive of the special oper-
ations command shall be included on the distribution list for acquisi-
tion directives and instructions of the Department of Defense.’’. 
Subtitle B—Provisions Relating to Major 
Defense Acquisition Programs 
SEC. 811. REQUIREMENTS APPLICABLE TO MULTIYEAR CONTRACTS 
FOR THE PROCUREMENT OF MAJOR SYSTEMS OF THE 
DEPARTMENT OF DEFENSE. 
(a) ADDITIONAL REQUIREMENTS APPLICABLE TO MULTIYEAR CON-
TRACTS.—Section 2306b of title 10, United States Code, is amended 
as follows:
H. R. 4986—216 
(1) Subsection (a) of such section is amended by adding 
at the end the following new paragraph: 
‘‘(7) In the case of a contract in an amount equal to or 
greater than $500,000,000, that the conditions required by sub-
paragraphs (C) through (F) of paragraph (1) of subsection (i) 
will be met, in accordance with the Secretary’s certification 
and determination under such subsection, by such contract.’’. 
(2) Subsection (i)(1) of such section is amended by inserting 
after ‘‘unless’’ the following: ‘‘the Secretary of Defense certifies 
in writing by no later than March 1 of the year in which 
the Secretary requests legislative authority to enter into such 
contract that’’. 
(3) Subsection (i)(1) of such section is further amended— 
(A) by redesignating subparagraph (B) as subpara-
graph (G); and 
(B) by striking subparagraph (A) and inserting the 
following: 
‘‘(A) The Secretary has determined that each of the require-
ments in paragraphs (1) through (6) of subsection (a) will 
be met by such contract and has provided the basis for such 
determination to the congressional defense committees. 
‘‘(B) The Secretary’s determination under subparagraph (A) 
was made after the completion of a cost analysis performed 
by the Cost Analysis Improvement Group of the Department 
of Defense and such analysis supports the findings. 
‘‘(C) The system being acquired pursuant to such contract 
has not been determined to have experienced cost growth in 
excess of the critical cost growth threshold pursuant to section 
2433(d) of this title within 5 years prior to the date the Sec-
retary anticipates such contract (or a contract for advance 
procurement entered into consistent with the authorization for 
such contract) will be awarded. 
‘‘(D) A sufficient number of end items of the system being 
acquired under such contract have been delivered at or within 
the most current estimates of the program acquisition unit 
cost or procurement unit cost for such system to determine 
that current estimates of such unit costs are realistic. 
‘‘(E) During the fiscal year in which such contract is to 
be awarded, sufficient funds will be available to perform the 
contract in such fiscal year, and the future-years defense pro-
gram for such fiscal year will include the funding required 
to execute the program without cancellation. 
‘‘(F) The contract is a fixed price type contract.’’. 
(4) Subsection (i) of such section is further amended by 
adding at the end the following new paragraphs: 
‘‘(5) The Secretary may make the certification under paragraph 
(1) notwithstanding the fact that one or more of the conditions 
of such certification are not met if the Secretary determines that, 
due to exceptional circumstances, proceeding with a multiyear con-
tract under this section is in the best interest of the Department 
of Defense and the Secretary provides the basis for such determina-
tion with the certification. 
‘‘(6) The Secretary of Defense may not delegate the authority 
to make the certification under paragraph (1) or the determination 
under paragraph (5) to an official below the level of Under Secretary 
of Defense for Acquisition, Technology, and Logistics.
H. R. 4986—217 
‘‘(7) The Secretary of Defense shall send a notification con-
taining the findings of the agency head under subsection (a), and 
the basis for such findings, 30 days prior to the award of a multiyear 
contract for a defense acquisition program that has been specifically 
authorized by law.’’. 
(5) Such section is further amended by adding at the end 
the following new subsection: 
‘‘(m) INCREASED FUNDING AND REPROGRAMMING REQUESTS.— 
Any request for increased funding for the procurement of a major 
system under a multiyear contract authorized under this section 
shall be accompanied by an explanation of how the request for 
increased funding affects the determinations made by the Secretary 
under subsection (i).’’. 
(b) APPLICABILITY.—The amendments made by this section shall 
take effect on the date of the enactment of this Act and shall 
apply with respect to multiyear contracts for the purchase of major 
systems for which legislative authority is requested on or after 
that date. 
SEC. 812. CHANGES TO MILESTONE B CERTIFICATIONS. 
Section 2366a of title 10, United States Code, is amended— 
(1) by amending subsection (a) to read as follows: 
‘‘(a) CERTIFICATION.—A major defense acquisition program may 
not receive Milestone B approval, or Key Decision Point B approval 
in the case of a space program, until the milestone decision 
authority— 
‘‘(1) has received a business case analysis and certifies 
on the basis of the analysis that— 
‘‘(A) the program is affordable when considering the 
ability of the Department of Defense to accomplish the 
program’s mission using alternative systems; 
‘‘(B) the program is affordable when considering the 
per unit cost and the total acquisition cost in the context 
of the total resources available during the period covered 
by the future-years defense program submitted during the 
fiscal year in which the certification is made; 
‘‘(C) reasonable cost and schedule estimates have been 
developed to execute the product development and produc-
tion plan under the program; and 
‘‘(D) funding is available to execute the product 
development and production plan under the program, 
through the period covered by the future-years defense 
program submitted during the fiscal year in which the 
certification is made, consistent with the estimates 
described in subparagraph (C) for the program; and 
‘‘(2) further certifies that— 
‘‘(A) appropriate market research has been conducted 
prior to technology development to reduce duplication of 
existing technology and products; 
‘‘(B) the Department of Defense has completed an anal-
ysis of alternatives with respect to the program; 
‘‘(C) the Joint Requirements Oversight Council has 
accomplished its duties with respect to the program pursu-
ant to section 181(b) of this title, including an analysis 
of the operational requirements for the program; 
‘‘(D) the technology in the program has been dem-
onstrated in a relevant environment;
H. R. 4986—218 
‘‘(E) the program demonstrates a high likelihood of 
accomplishing its intended mission; and 
‘‘(F) the program complies with all relevant policies, 
regulations, and directives of the Department of Defense.’’; 
(2) by redesignating subsections (b), (c), (d), and (e) as 
subsections (c), (d), (e), and (f), respectively; 
(3) by inserting after subsection (a) the following new sub-
section (b): 
‘‘(b) CHANGES TO CERTIFICATION.—(1) The program manager 
for a major defense acquisition program that has received certifi-
cation under subsection (a) shall immediately notify the milestone 
decision authority of any changes to the program that— 
‘‘(A) alter the substantive basis for the certification of the 
milestone decision authority relating to any component of such 
certification specified in paragraph (1) or (2) of subsection (a); 
or 
‘‘(B) otherwise cause the program to deviate significantly 
from the material provided to the milestone decision authority 
in support of such certification. 
‘‘(2) Upon receipt of information under paragraph (1), the mile-
stone decision authority may withdraw the certification concerned 
or rescind Milestone B approval (or Key Decision Point B approval 
in the case of a space program) if the milestone decision authority 
determines that such certification or approval is no longer valid.’’; 
(4) in subsection (c), as redesignated by paragraph (1)— 
(A) by inserting ‘‘(1)’’ before ‘‘The certification’’; and 
(B) by adding at the end the following new paragraph 
(2): 
‘‘(2) A summary of any information provided to the milestone 
decision authority pursuant to subsection (b) and a description 
of the actions taken as a result of such information shall be sub-
mitted with the first Selected Acquisition Report submitted under 
section 2432 of this title after receipt of such information by the 
milestone decision authority.’’; 
(5) in subsection (d), as so redesignated— 
(A) by striking ‘‘authority may waive’’ and inserting 
the following: ‘‘authority may, at the time of Milestone 
B approval (or Key Decision Point B approval in the case 
of a space program) or at the time that such milestone 
decision authority withdraws a certification or rescinds 
Milestone B approval (or Key Decision Point B approval 
in the case of a space program) pursuant to subsection 
(b)(2), waive’’; and 
(B) by striking ‘‘paragraph (1), (2), (3), (4), (5), (6), 
(7), (8), or (9)’’ and inserting ‘‘paragraph (1) or (2)’’; and 
(6) in subsection (e), as so redesignated, by striking ‘‘sub-
section (c)’’ and inserting ‘‘subsection (d)’’. 
SEC. 813. COMPTROLLER GENERAL REPORT ON DEPARTMENT OF 
DEFENSE ORGANIZATION AND STRUCTURE FOR MAJOR 
DEFENSE ACQUISITION PROGRAMS. 
(a) REPORT REQUIRED.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General of the United 
States shall submit to the congressional defense committees a report 
on potential modifications of the organization and structure of the 
Department of Defense for major defense acquisition programs.
H. R. 4986—219 
(b) ELEMENTS.—The report required by subsection (a) shall 
include the results of a review, conducted by the Comptroller Gen-
eral for purposes of the report, regarding the feasibility and advis-
ability of, at a minimum, the following: 
(1) Revising the acquisition process for major defense 
acquisition programs by establishing shorter, more frequent 
acquisition program milestones. 
(2) Requiring certifications of program status to the defense 
acquisition executive and Congress prior to milestone approval 
for major defense acquisition programs. 
(3) Establishing a new office (to be known as the ‘‘Office 
of Independent Assessment’’) to provide independent cost esti-
mates and performance estimates for major defense acquisition 
programs. 
(4) Requiring the milestone decision authority for a major 
defense acquisition program to specify, at the time of Milestone 
B approval, or Key Decision Point B approval, as applicable, 
the period of time that will be required to deliver an initial 
operational capability to the relevant combatant commanders. 
(5) Establishing a materiel solutions process for addressing 
identified gaps in critical warfighting capabilities, under which 
process the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics circulates among the military departments 
and appropriate Defense Agencies a request for proposals for 
technologies and systems to address such gaps. 
(6) Modifying the role played by chiefs of staff of the Armed 
Forces in the requirements, resource allocation, and acquisition 
processes. 
(7) Establishing a process in which the commanders of 
combatant commands assess, and provide input on, the capabili-
ties needed to successfully accomplish the missions in the oper-
ational and contingency plans of their commands over a long- 
term planning horizon of 15 years or more, taking into account 
expected changes in threats, the geo-political environment, and 
doctrine, training, and operational concepts. 
(c) CONSULTATION.—In conducting the review required under 
subsection (b) for the report required by subsection (a), the Comp-
troller General shall obtain the views of the following: 
(1) Senior acquisition officials currently serving in the 
Department of Defense. 
(2) Senior military officers involved in setting requirements 
for the joint staff, the Armed Forces, and the combatant com-
mands currently serving in the Department of Defense. 
(3) Individuals who formerly served as senior acquisition 
officials in the Department of Defense. 
(4) Participants in previous reviews of the organization 
and structure of the Department of Defense for the acquisition 
of major weapon systems, including the President’s Blue Ribbon 
Commission on Defense Management in 1986. 
(5) Other experts on the acquisition of major weapon sys-
tems. 
(6) Appropriate experts in the Government Accountability 
Office.