341
level III of the Executive Schedule. The payment of the rates 
shall not be subject to the pay limitation of section 5306(e) 
or 5373. 
‘‘(b) Notwithstanding the provisions of subsection (a), 
the applicable maximum shall be level II of the Executive 
Schedule for any agency that is certified under section 5307 
as having a performance appraisal system which, as de-
signed and applied, makes meaningful distinctions based 
on relative performance. 
‘‘(c) No employee may suffer a reduction in pay by 
reason of transfer from an agency with an applicable max-
imum rate of pay prescribed under subsection (b) to an 
agency with an applicable maximum rate of pay prescribed 
under subsection (a).’’; and 
(3) in section 5383—
(A) in subsection (a) by striking ‘‘which of 
the rates established under section 5382 of this 
title’’ and inserting ‘‘which of the rates within a 
range established under section 5382’’; and 
(B) in subsection (c) by striking ‘‘for any 
pay adjustment under section 5382 of this title’’ 
and inserting ‘‘as provided in regulations pre-
scribed by the Office under section 5385’’.
342
(b) POST-EMPLOYMENT RESTRICTIONS.—(1) Clause 
(ii) of section 207(c)(2)(A) of title 18, United States Code 
is amended to read as follows: 
‘‘(ii) employed in a position which is not 
referred to in clause (i) and for which that per-
son is paid at a rate of basic pay which is equal 
to or greater than 96 percent of the rate of basic 
pay for level II of the Executive Schedule, or, for 
a period of 2 years following the enactment of 
the Federal Employees Pay for Performance Act 
of 2003, a person who, on the day prior to the 
enactment of that Act, was employed in a posi-
tion which is not referred to in clause (i) and for 
which the rate of basic pay, exclusive of any lo-
cality-based pay adjustment under section 5304 
or section 5304a of title 5, was equal to or great-
er than the rate of basic pay payable for level 5 
of the Senior Executive Service on the day prior 
to the enactment of that Act,’’. 
(2) Subchapter I of chapter 73 of title 5, United States 
Code, is amended by inserting at the end the following new 
section: 
‘‘§ 7302. Post-employment notification 
‘‘(a) Not later than the effective date of the amend-
ments made by sections 3 and 4 of the Federal Employees
343
Pay for Performance Act of 2003, or 180 days after the 
date of enactment of that Act, whichever is later, the Office 
of Personnel Management shall, in consultation with the At-
torney General and the Office of Government Ethics, pro-
mulgate regulations requiring that each Executive branch 
agency notify any employee of that agency who is subject 
to the provisions of section 207(c)(1) of title 18, as a result 
of the amendment to section 207(c)(2)(A)(ii) of that title 
by that Act. 
‘‘(b) The regulations shall require that notice be given 
before, or as part of, the action that affects the employee’s 
coverage under section 207(c)(1) of title 18, by virtue of the 
provisions of section 207(c)(2)(A)(ii) of that title, and 
again when employment or service in the covered position 
is terminated.’’. 
(c) The table of sections for chapter 73 of title 5, 
United States Code, is amended by adding after the item 
relating to section 7301 the following:
‘‘7302. Post-employment notification.’’.
(c) EFFECTIVE DATE AND APPLICABILITY.—(1) The 
amendments made by this section shall take effect on the 
first day of the first pay period beginning on or after the 
first January 1 following the date of enactment of this sec-
tion. 
(2) The amendments made by subsection (a) may not 
result in a reduction in the rate of basic pay for any senior
344
executive during the first year after the effective date of 
those amendments. 
(3) For the purposes of subsection (c)(2), the rate of 
basic pay for a senior executive shall be deemed to be the 
rate of basic pay set for the senior executive under section 
5383 of title 5, United States Code, plus applicable locality 
pay paid to that senior executive, as of the date of enact-
ment of this Act.
SEC. 1107. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE 
SYSTEMS IN DEMONSTRATION PROJECTS. 
A pay-for-performance system may not be initiated 
under chapter 47 of title 5, United States Code, after the 
date of enactment of this Act, unless it incorporates the fol-
lowing elements: 
(1) adherence to merit principles set forth in sec-
tion 2301 of such title; 
(2) a fair, credible, and transparent employee 
performance appraisal system; 
(3) a link between elements of the pay-for-per-
formance system, the employee performance appraisal 
system, and the agency’s strategic plan; 
(4) a means for ensuring employee involvement 
in the design and implementation of the system;
345
(5) adequate training and retraining for super-
visors, managers, and employees in the implementa-
tion and operation of the pay-for-performance system; 
(6) a process for ensuring ongoing performance 
feedback and dialogue between supervisors, managers, 
and employees throughout the appraisal period, and 
setting timetables for review; 
(7) effective safeguards to ensure that the man-
agement of the system is fair and equitable and based 
on employee performance; and 
(8) a means for ensuring that adequate agency 
resources are allocated for the design, implementation, 
and administration of the pay-for-performance sys-
tem. 
SEC. 1108. FEDERAL FLEXIBLE BENEFITS PLAN ADMINIS-
TRATIVE COSTS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, an agency or other employing entity of the Gov-
ernment which provides or plans to provide a flexible spend-
ing account option for its employees shall not impose any 
fee with respect to any of its employees in order to defray 
the administrative costs associated therewith. 
(b) OFFSET OF ADMINISTRATIVE COSTS.—Each such 
agency or employing entity that offers a flexible spending 
account option under a program established or adminis-
346
tered by the Office of Personnel Management shall periodi-
cally forward to such Office, or entity designated by such 
Office, the amount necessary to offset the administrative 
costs of such program which are attributable to such agency. 
(c) REPORTS.—(1) The Office shall submit a report 
to the Committee on Government Reform of the House of 
Representatives and the Committee on Governmental Af-
fairs of the Senate no later than March 31, 2004, specifying 
the administrative costs associated with the Government-
wide program (referred to in subsection (b)) for fiscal year 
2003, as well as the projected administrative costs of such 
program for each of the 5 fiscal years thereafter. 
(2) At the end of each of the first 3 calendar years 
in which an agency or other employing entity offers a flexi-
ble spending account option under this section, such agency 
or entity shall submit a report to the Office of Management 
and Budget showing the amount of its employment tax sav-
ings in such year which are attributable to such option, 
net of administrative fees paid under section (b). 
SEC. 1109. CLARIFICATION TO HATCH ACT; LIMITATION ON 
DISCLOSURE OF CERTAIN RECORDS. 
(a) CLARIFICATION TO HATCH ACT.—No Federal em-
ployee or individual who voluntarily separates from the 
civil service (including by transferring to an international 
organization in the circumstances described in section
347
3582(a) of title 5, United States Code) shall be subject to 
enforcement of the provisions of section 7326 of such title 
(including any loss of rights under subchapter IV of chapter 
35 of such title resulting from any proceeding under such 
section 7326), except that this subsection shall not apply 
in the event that such employee or individual subsequently 
becomes reemployed in the civil service. The preceding sen-
tence shall apply to any complaint which is filed with or 
pending before the Merit Systems Protection Board after 
the date of the enactment of this Act. 
(b) 
LIMITATION
ON
DISCLOSURE
OF
CERTAIN 
RECORDS.—Notwithstanding any other provision of law, 
rule, or regulation, nothing described in paragraph (2) or 
(3) of use ‘‘q’’ of the proposed revisions published in the 
Federal Register on July 12, 2001 (66 Fed. Reg. 36613) 
shall be considered to constitute a routine use of records 
maintained by the Office of Special Counsel. 
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘Federal employee or individual’’ 
means any employee or individual, as referred to in 
section 7326 of title 5, United States Code; 
(2) the term ‘‘civil service’’ has the meaning 
given such term by section 2101 of title 5, United 
States Code;
348
(3) the term ‘‘international organization’’ has 
the meaning given such term by section 3581 of title 
5, United States Code; and 
(4) the terms ‘‘routine use’’ and ‘‘record’’ have 
the respective meanings given such terms under sec-
tion 552a(a) of title 5, United States Code. 
SEC. 1110. EMPLOYEE SURVEYS. 
(a) IN GENERAL.—Each agency shall conduct an an-
nual survey of its employees (including survey questions 
unique to the agency and questions prescribed under sub-
section (b)) to assess—
(1) leadership and management practices that 
contribute to agency performance; and 
(2) employee satisfaction with—
(A) leadership policies and practices; 
(B) work environment; 
(C) rewards and recognition for professional 
accomplishment and personal contributions to 
achieving organizational mission; 
(D) opportunity for professional develop-
ment and growth; and 
(E) opportunity to contribute to achieving 
organizational mission. 
(b) REGULATIONS.—The Office of Personnel Manage-
ment shall issue regulations prescribing survey questions
349
that should appear on all agency surveys under subsection 
(a) in order to allow a comparison across agencies. 
(c) AVAILABILITY OF RESULTS.—The results of the 
agency surveys under subsection (a) shall be made available 
to the public and posted on the website of the agency in-
volved, unless the head of such agency determines that doing 
so would jeopardize or negatively impact national security. 
(d) AGENCY DEFINED.—For purposes of this section, 
the term ‘‘agency’’ means an Executive agency (as defined 
by section 105 of title 5, United States Code). 
Subtitle B—Department of Defense 
National Security Personnel System 
SEC. 1111. DEPARTMENT OF DEFENSE NATIONAL SECURITY 
PERSONNEL SYSTEM. 
(a) IN GENERAL.—(1) Subpart I of part III of title 
5, United States Code, is amended by adding at the end 
the following new chapter: 
‘‘CHAPTER 99—DEPARTMENT OF DEFENSE 
NATIONAL SECURITY PERSONNEL SYSTEM
‘‘Sec. 
‘‘9901. Definitions. 
‘‘9902. Establishment of human resources management system. 
‘‘9903. Attracting highly qualified experts. 
‘‘9904. Employment of older Americans. 
‘‘9905. Special pay and benefits for certain employees outside the United States.
‘‘§ 9901. Definitions 
‘‘For purposes of this chapter—
350
‘‘(1) the term ‘Director’ means the Director of the 
Office of Personnel Management; and 
‘‘(2) the term ‘Secretary’ means the Secretary of 
Defense. 
‘‘§ 9902. Establishment of human resources manage-
ment system 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of this part, the Secretary may, in regulations pre-
scribed jointly with the Director, establish, and from time 
to time adjust, a human resources management system for 
some or all of the organizational or functional units of the 
Department of Defense. If the Secretary certifies that 
issuance or adjustment of a regulation, or the inclusion, ex-
clusion, or modification of a particular provision therein, 
is essential to the national security, the Secretary may, sub-
ject to the decision of the President, waive the requirement 
in the preceding sentence that the regulation or adjustment 
be issued jointly with the Director. 
‘‘(b) SYSTEM REQUIREMENTS.—Any system estab-
lished under subsection (a) shall—
‘‘(1) be flexible; 
‘‘(2) be contemporary; 
‘‘(3) not waive, modify, or otherwise affect—
‘‘(A) the public employment principles of 
merit and fitness set forth in section 2301, in-
351
cluding the principles of hiring based on merit, 
fair treatment without regard to political affili-
ation or other nonmerit considerations, equal 
pay for equal work, and protection of employees 
against reprisal for whistleblowing; 
‘‘(B) any provision of section 2302, relating 
to prohibited personnel practices; 
‘‘(C)(i) any provision of law referred to in 
section 2302(b)(1), (8), and (9); or 
‘‘(ii) any provision of law implementing 
any provision of law referred to in section 
2302(b)(1), (8), and (9) by—
‘‘(I) providing for equal employment 
opportunity through affirmative action; or 
‘‘(II) providing any right or remedy 
available to any employee or applicant for 
employment in the public service; 
‘‘(D) any other provision of this part (as 
described in subsection (c)); or 
‘‘(E) any rule or regulation prescribed 
under any provision of law referred to in this 
paragraph; 
‘‘(4) ensure that employees may organize, bar-
gain collectively as provided for in this chapter, and 
participate through labor organizations of their own
352
choosing in decisions which affect them, subject to the 
provisions of this chapter and any exclusion from cov-
erage or limitation on negotiability established pursu-
ant to law; 
‘‘(5) not be limited by any specific law or au-
thority under this title that is waivable under this 
chapter or by any provision of this chapter or any 
rule or regulation prescribed under this title that is 
waivable under this chapter, except as specifically 
provided for in this section; and 
‘‘(6) include a performance management system 
that incorporates the following elements: 
‘‘(A) adherence to merit principles set forth 
in section 2301; 
‘‘(B) a fair, credible, and transparent em-
ployee performance appraisal system; 
‘‘(C) a link between the performance man-
agement system and the agency’s strategic plan; 
‘‘(D) a means for ensuring employee in-
volvement in the design and implementation of 
the system; 
‘‘(E) adequate training and retraining for 
supervisors, managers, and employees in the im-
plementation and operation of the performance 
management system;
353
‘‘(F) a process for ensuring ongoing per-
formance feedback and dialogue between super-
visors, managers, and employees throughout the 
appraisal period, and setting timetables for re-
view; 
‘‘(G) effective safeguards to ensure that the 
management of the system is fair and equitable 
and based on employee performance; and 
‘‘(H) a means for ensuring that adequate 
agency resources are allocated for the design, im-
plementation, and administration of the per-
formance management system. 
‘‘(c) OTHER NONWAIVABLE PROVISIONS.—The other 
provisions of this part referred to in subsection (b)(3)(D) 
are (to the extent not otherwise specified in this title)—
‘‘(1) subparts A, B, E, G, and H of this part; 
and 
‘‘(2) chapters 41, 45, 47, 55 (except subchapter 
V thereof), 57, 59, 72, 73, and 79, and this chapter. 
‘‘(d) LIMITATIONS RELATING TO PAY.—(1) Nothing in 
this section shall constitute authority to modify the pay of 
any employee who serves in an Executive Schedule position 
under subchapter II of chapter 53 of this title. 
‘‘(2) Except as provided for in paragraph (1), the total 
amount in a calendar year of allowances, differentials, bo-
354
nuses, awards, or other similar cash payments paid under 
this title to any employee who is paid under section 5376 
or 5383 of this title or under title 10 or under other com-
parable pay authority established for payment of Depart-
ment of Defense senior executive or equivalent employees 
may not exceed the total annual compensation payable to 
the Vice President under section 104 of title 3. 
‘‘(3) To the maximum extent practicable, the rates of 
compensation for civilian employees at the Department of 
Defense shall be adjusted at the same rate, and in the same 
proportion, as are rates of compensation for members of the 
uniformed services. 
‘‘(e) PROVISIONS TO ENSURE COLLABORATION WITH 
EMPLOYEE REPRESENTATIVES.—(1) In order to ensure 
that the authority of this section is exercised in collabora-
tion with, and in a manner that ensures the participation 
of, employee representatives in the planning, development, 
and implementation of any human resources management 
system or adjustments to such system under this section, 
the Secretary and the Director shall provide for the fol-
lowing: 
‘‘(A) The Secretary and the Director shall, with 
respect to any proposed system or adjustment—
‘‘(i) provide to the employee representatives 
representing any employees who might be af-
355
fected a written description of the proposed sys-
tem or adjustment (including the reasons why it 
is considered necessary); 
‘‘(ii) give such representatives at least 30 
calendar 
days 
(unless 
extraordinary 
cir-
cumstances require earlier action) to review and 
make recommendations with respect to the pro-
posal; and 
‘‘(iii) give any recommendations received 
from such representatives under clause (ii) full 
and fair consideration in deciding whether or 
how to proceed with the proposal. 
‘‘(B) Following receipt of recommendations, if 
any, from such employee representatives with respect 
to a proposal described in subparagraph (A), the Sec-
retary and the Director shall accept such modifica-
tions to the proposal in response to the recommenda-
tions as they determine advisable and shall, with re-
spect to any parts of the proposal as to which they 
have not accepted the recommendations—
‘‘(i) notify Congress of those parts of the 
proposal, together with the recommendations of 
the employee representatives; 
‘‘(ii) meet and confer for not less than 30 
calendar days with the employee representatives,
356
in order to attempt to reach agreement on wheth-
er or how to proceed with those parts of the pro-
posal; and 
‘‘(iii) at the Secretary’s option, or if re-
quested by a majority of the employee represent-
atives participating, use the services of the Fed-
eral Mediation and Conciliation Service during 
such meet and confer period to facilitate the 
process of attempting to reach agreement. 
‘‘(C)(i) Any part of the proposal as to which the 
representatives do not make a recommendation, or as 
to which the recommendations are accepted by the 
Secretary and the Director, may be implemented im-
mediately. 
‘‘(ii) With respect to any parts of the proposal 
as to which recommendations have been made but not 
accepted by the Secretary and the Director, at any 
time after 30 calendar days have elapsed since the 
initiation of the congressional notification, consulta-
tion, and mediation procedures set forth in subpara-
graph (B), if the Secretary, in his discretion, deter-
mines that further consultation and mediation is un-
likely to produce agreement, the Secretary may imple-
ment any or all of such parts (including any modi-
fications made in response to the recommendations as
357
the Secretary determines advisable), but only after 30 
days have elapsed after notifying Congress of the deci-
sion to implement the part or parts involved (as so 
modified, if applicable). 
‘‘(iii) The Secretary shall notify Congress 
promptly of the implementation of any part of the 
proposal and shall furnish with such notice an expla-
nation of the proposal, any changes made to the pro-
posal as a result of recommendations from the em-
ployee representatives, and of the reasons why imple-
mentation is appropriate under this subparagraph. 
‘‘(D) If a proposal described in subparagraph 
(A) is implemented, the Secretary and the Director 
shall—
‘‘(i) develop a method for the employee rep-
resentatives to participate in any further plan-
ning or development which might become nec-
essary; and 
‘‘(ii) give the employee representatives ade-
quate access to information to make that partici-
pation productive. 
‘‘(2) The Secretary may, at the Secretary’s discretion, 
engage in any and all collaboration activities described in 
this subsection at an organizational level above the level of 
exclusive recognition.
358
‘‘(3) In the case of any employees who are not within 
a unit with respect to which a labor organization is ac-
corded exclusive recognition, the Secretary and the Director 
may develop procedures for representation by any appro-
priate organization which represents a substantial percent-
age of those employees or, if none, in such other manner 
as may be appropriate, consistent with the purposes of this 
subsection. 
‘‘(f) PROVISIONS REGARDING NATIONAL LEVEL BAR-
GAINING.—(1) Any human resources management system 
implemented or modified under this chapter may include 
employees of the Department of Defense from any bar-
gaining unit with respect to which a labor organization has 
been accorded exclusive recognition under chapter 71 of this 
title. 
‘‘(2) For any bargaining unit so included under para-
graph (1), the Secretary may bargain at an organizational 
level above the level of exclusive recognition. Any such bar-
gaining shall—
‘‘(A) be binding on all subordinate bargaining 
units at the level of recognition and their exclusive 
representatives, and the Department of Defense and 
its subcomponents, without regard to levels of recogni-
tion;
359
‘‘(B) supersede all other collective bargaining 
agreements, including collective bargaining agree-
ments negotiated with an exclusive representative at 
the level of recognition, except as otherwise deter-
mined by the Secretary; 
‘‘(C) not be subject to further negotiations for 
any purpose, including bargaining at the level of rec-
ognition, except as provided for by the Secretary; and 
‘‘(D) except as otherwise specified in this chap-
ter, not be subject to review or to statutory third-
party dispute resolution procedures outside the De-
partment of Defense. 
‘‘(3) The National Guard Bureau and the Army and 
Air Force National Guard are excluded from coverage under 
this subsection. 
‘‘(4) Any bargaining completed pursuant to this sub-
section with a labor organization not otherwise having na-
tional consultation rights with the Department of Defense 
or its subcomponents shall not create any obligation on the 
Department of Defense or its subcomponents to confer na-
tional consultation rights on such a labor organization. 
‘‘(g) PROVISIONS RELATING TO APPELLATE PROCE-
DURES.—(1) The Secretary shall—
‘‘(A) establish an appeals process that provides 
that employees of the Department of Defense are enti-
360
tled to fair treatment in any appeals that they bring 
in decisions relating to their employment; and 
‘‘(B) in prescribing regulations for any such ap-
peals process—
‘‘(i) ensure that employees of the Depart-
ment of Defense are afforded the protections of 
due process; and 
‘‘(ii) toward that end, be required to consult 
with the Merit Systems Protection Board before 
issuing any such regulations. 
‘‘(2) Any regulations establishing the appeals process 
required by paragraph (1) that relate to any matters within 
the purview of chapter 77 shall—
‘‘(A) provide for an independent review panel, 
appointed by the President, which shall not include 
the Secretary or the Deputy Secretary of Defense or 
any of their subordinates; 
‘‘(B) be issued only after—
‘‘(i) notification to the appropriate commit-
tees of Congress; and 
‘‘(ii) consultation with the Merit Systems 
Protection Board and the Equal Employment 
Opportunity Commission; 
‘‘(C) ensure the availability of procedures that—
361
‘‘(i) are consistent with requirements of due 
process; and 
‘‘(ii) provide, to the maximum extent prac-
ticable, for the expeditious handling of any mat-
ters involving the Department of Defense; and 
‘‘(D) modify procedures under chapter 77 only 
insofar as such modifications are designed to further 
the fair, efficient, and expeditious resolution of mat-
ters involving the employees of the Department of De-
fense. 
‘‘(h) PROVISIONS RELATED TO SEPARATION AND RE-
TIREMENT INCENTIVES.—(1) The Secretary may establish 
a program within the Department of Defense under which 
employees may be eligible for early retirement, offered sepa-
ration incentive pay to separate from service voluntarily, 
or both. This authority may be used to reduce the number 
of personnel employed by the Department of Defense or to 
restructure the workforce to meet mission objectives without 
reducing the overall number of personnel. This authority 
is in addition to, and notwithstanding, any other authori-
ties established by law or regulation for such programs. 
‘‘(2) For purposes of this section, the term ‘employee’ 
means an employee of the Department of Defense, serving 
under an appointment without time limitation, except that 
such term does not include—
362
‘‘(A) a reemployed annuitant under subchapter 
III of chapter 83 or chapter 84 of this title, or an-
other retirement system for employees of the Federal 
Government; 
‘‘(B) an employee having a disability on the 
basis of which such employee is or would be eligible 
for disability retirement under any of the retirement 
systems referred to in paragraph (1); or 
‘‘(C) for purposes of eligibility for separation in-
centives under this section, an employee who is in re-
ceipt of a decision notice of involuntary separation 
for misconduct or unacceptable performance. 
‘‘(3) An employee who is at least 50 years of age and 
has completed 20 years of service, or has at least 25 years 
of service, may, pursuant to regulations promulgated under 
this section, apply and be retired from the Department of 
Defense and receive benefits in accordance with chapter 83 
or 84 if the employee has been employed continuously with-
in the Department of Defense for more than 30 days before 
the date on which the determination to conduct a reduction 
or restructuring within 1 or more Department of Defense 
components is approved pursuant to the program estab-
lished under subsection (a). 
‘‘(4)(A) Separation pay shall be paid in a lump sum 
or in installments and shall be equal to the lesser of—
363
‘‘(i) an amount equal to the amount the em-
ployee would be entitled to receive under section 
5595(c) of this title, if the employee were entitled to 
payment under such section; or 
‘‘(ii) $25,000. 
‘‘(B) Separation pay shall not be a basis for payment, 
and shall not be included in the computation, of any other 
type of Government benefit. Separation pay shall not be 
taken into account for the purpose of determining the 
amount of any severance pay to which an individual may 
be entitled under section 5595 of this title, based on any 
other separation. 
‘‘(C) Separation pay, if paid in installments, shall 
cease to be paid upon the recipient’s acceptance of employ-
ment by the Federal Government, or commencement of work 
under a personal services contract as described in para-
graph (5). 
‘‘(5)(A) An employee who receives separation pay 
under such program may not be reemployed by the Depart-
ment of Defense for a 12-month period beginning on the 
effective date of the employee’s separation, unless this prohi-
bition is waived by the Secretary on a case-by-case basis. 
‘‘(B) An employee who receives separation pay under 
this section on the basis of a separation occurring on or 
after the date of the enactment of the Federal Workforce Re-
364
structuring Act of 1994 (Public Law 103–236; 108 Stat. 
111) and accepts employment with the Government of the 
United States, or who commences work through a personal 
services contract with the United States within 5 years after 
the date of the separation on which payment of the separa-
tion pay is based, shall be required to repay the entire 
amount of the separation pay to the Department of Defense. 
If the employment is with an Executive agency (as defined 
by section 105 of this title) other than the Department of 
Defense, the Director may, at the request of the head of that 
agency, waive the repayment if the individual involved pos-
sesses unique abilities and is the only qualified applicant 
available for the position. If the employment is within the 
Department of Defense, the Secretary may waive the repay-
ment if the individual involved is the only qualified appli-
cant available for the position. If the employment is with 
an entity in the legislative branch, the head of the entity 
or the appointing official may waive the repayment if the 
individual involved possesses unique abilities and is the 
only qualified applicant available for the position. If the 
employment is with the judicial branch, the Director of the 
Administrative Office of the United States Courts may 
waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant avail-
able for the position.
365
‘‘(6) Under this program, early retirement and separa-
tion pay may be offered only pursuant to regulations estab-
lished by the Secretary, subject to such limitations or condi-
tions as the Secretary may require. 
‘‘(i) PROVISIONS RELATING TO REEMPLOYMENT.—If 
annuitant receiving an annuity from the Civil Service Re-
tirement and Disability Fund becomes employed in a posi-
tion within the Department of Defense, his annuity shall 
continue. An annuitant so reemployed shall not be consid-
ered an employee for purposes of chapter 83 or 84. 
‘‘(j) ADDITIONAL PROVISIONS RELATING
TO PER-
SONNEL MANAGEMENT.—Notwithstanding subsection (c), 
the Secretary may exercise authorities that would otherwise 
be available to the Secretary under paragraphs (1), (3), and 
(8) of section 4703(a) of this title. 
‘‘§ 9903. Attracting highly qualified experts 
‘‘(a) IN GENERAL.—The Secretary may carry out a 
program using the authority provided in subsection (b) in 
order to attract highly qualified experts in needed occupa-
tions, as determined by the Secretary. 
‘‘(b) AUTHORITY.—Under the program, the Secretary 
may—
‘‘(1) appoint personnel from outside the civil 
service and uniformed services (as such terms are de-
fined in section 2101 of this title) to positions in the
366
Department of Defense without regard to any provi-
sion of this title governing the appointment of em-
ployees to positions in the Department of Defense; 
‘‘(2) prescribe the rates of basic pay for positions 
to which employees are appointed under paragraph 
(1) at rates not in excess of the maximum rate of 
basic pay authorized for senior-level positions under 
section 5376 of this title, as increased by locality-
based comparability payments under section 5304 of 
this title, notwithstanding any provision of this title 
governing the rates of pay or classification of employ-
ees in the executive branch; and 
‘‘(3) pay any employee appointed under para-
graph (1) payments in addition to basic pay within 
the limits applicable to the employee under subsection 
(d). 
‘‘(c) LIMITATION ON TERM OF APPOINTMENT.—(1) Ex-
cept as provided in paragraph (2), the service of an em-
ployee under an appointment made pursuant to this section 
may not exceed 5 years. 
‘‘(2) The Secretary may, in the case of a particular 
employee, extend the period to which service is limited 
under paragraph (1) by up to 1 additional year if the Sec-
retary determines that such action is necessary to promote 
the Department of Defense’s national security missions.
367
‘‘(d) LIMITATIONS ON ADDITIONAL PAYMENTS.—(1) 
The total amount of the additional payments paid to an 
employee under this section for any 12-month period may 
not exceed the lesser of the following amounts: 
‘‘(A) $50,000 in fiscal year 2004, which may be 
adjusted annually thereafter by the Secretary, with a 
percentage increase equal to one-half of 1 percentage 
point less than the percentage by which the Employ-
ment Cost Index, published quarterly by the Bureau 
of Labor Statistics, for the base quarter of the year 
before the preceding calendar year exceeds the Em-
ployment Cost Index for the base quarter of the second 
year before the preceding calendar year. 
‘‘(B) The amount equal to 50 percent of the em-
ployee’s annual rate of basic pay. 
For purposes of this paragraph, the term ‘base quarter’ has 
the meaning given such term by section 5302(3). 
‘‘(2) An employee appointed under this section is not 
eligible for any bonus, monetary award, or other monetary 
incentive for service except for payments authorized under 
this section. 
‘‘(3) Notwithstanding any other provision of this sub-
section or of section 5307, no additional payments may be 
paid to an employee under this section in any calendar 
year if, or to the extent that, the employee’s total annual
368
compensation will exceed the maximum amount of total an-
nual compensation payable at the salary set in accordance 
with section 104 of title 3. 
‘‘(e) SAVINGS PROVISIONS.—In the event that the Sec-
retary terminates this program, in the case of an employee 
who, on the day before the termination of the program, is 
serving in a position pursuant to an appointment under 
this section—
‘‘(1) the termination of the program does not ter-
minate the employee’s employment in that position 
before the expiration of the lesser of—
‘‘(A) the period for which the employee was 
appointed; or 
‘‘(B) the period to which the employee’s 
service is limited under subsection (c), including 
any extension made under this section before the 
termination of the program; and 
‘‘(2) the rate of basic pay prescribed for the posi-
tion under this section may not be reduced as long as 
the employee continues to serve in the position with-
out a break in service. 
‘‘§ 9904. Employment of older Americans 
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Secretary may appoint older Americans
369
into positions in the excepted service for a period not to 
exceed 2 years, provided that—
‘‘(1) any such appointment shall not result in—
‘‘(A) the displacement of individuals cur-
rently employed by the Department of Defense 
(including partial displacement through reduc-
tion of nonovertime hours, wages, or employment 
benefits); or 
‘‘(B) the employment of any individual 
when any other person is in a reduction-in-force 
status from the same or substantially equivalent 
job within the Department of Defense; and 
‘‘(2) the individual to be appointed is otherwise 
qualified for the position, as determined by the Sec-
retary. 
‘‘(b) EFFECT ON EXISTING RETIREMENT BENEFITS.—
Notwithstanding any other provision of law, an individual 
appointed pursuant to subsection (a) who otherwise is re-
ceiving an annuity, pension, retired pay, or other similar 
payment shall not have the amount of said annuity, pen-
sion, or other similar payment reduced as a result of such 
employment. 
‘‘(c) EXTENSION OF APPOINTMENT.—Notwithstanding 
subsection (a), the Secretary may extend an appointment 
made pursuant to this section for up to an additional 2
370
years if the individual employee possesses unique knowledge 
or abilities that are not otherwise available to the Depart-
ment of Defense. 
‘‘(d) DEFINITION.—For purposes of this section, the 
term ‘older American’ means any citizen of the United 
States who is at least 55 years of age. 
‘‘§ 9905. Special pay and benefits for certain employ-
ees outside the United States 
‘‘The Secretary may provide to certain civilian em-
ployees of the Department of Defense assigned to activities 
outside the United States as determined by the Secretary 
to be in support of Department of Defense activities abroad 
hazardous to life or health or so specialized because of secu-
rity requirements as to be clearly distinguishable from nor-
mal Government employment—
‘‘(1) allowances and benefits—
‘‘(A) comparable to those provided by the 
Secretary of State to members of the Foreign 
Service under chapter 9 of title I of the Foreign 
Service Act of 1980 (Public Law 96–465, 22 
U.S.C. 4081 et seq.) or any other provision of 
law; or 
‘‘(B) comparable to those provided by the 
Director of Central Intelligence to personnel of 
the Central Intelligence Agency; and
371
‘‘(2) special retirement accrual benefits and dis-
ability in the same manner provided for by the Cen-
tral Intelligence Agency Retirement Act (50 U.S.C. 
2001 et seq.) and in section 18 of the Central Intel-
ligence Agency Act of 1949 (50 U.S.C. 403r).’’. 
(2) The table of chapters for part III of such title is 
amended by adding at the end of subpart I the following 
new item:
‘‘99. Department of Defense National Security Personnel System ............... 9901’’.
(b) IMPACT ON DEPARTMENT OF DEFENSE CIVILIAN 
PERSONNEL.—(1) Any exercise of authority under chapter 
99 of such title (as added by subsection (a)), including 
under any system established under such chapter, shall be 
in conformance with the requirements of this subsection. 
(2) No other provision of this Act or of any amendment 
made by this Act may be construed or applied in a manner 
so as to limit, supersede, or otherwise affect the provisions 
of this section, except to the extent that it does so by specific 
reference to this section.
372
TITLE XII—MATTERS RELATING 
TO OTHER NATIONS
SEC. 1201. EXPANSION OF AUTHORITY TO PROVIDE ADMIN-
ISTRATIVE SUPPORT AND SERVICES AND 
TRAVEL AND SUBSISTENCE EXPENSES FOR 
CERTAIN FOREIGN LIAISON OFFICERS. 
(a) ADMINISTRATIVE SUPPORT AND SERVICES.—Sub-
section (a) of section 1051a of title 10, United States Code, 
is amended—
(1) by striking ‘‘involved in a coalition with the 
United States’’; 
(2) by striking ‘‘temporarily’’; and 
(3) by striking ‘‘ in connection with the plan-
ning for, or conduct of, a coalition operation’’. 
(b) TRAVEL, SUBSISTENCE, AND OTHER EXPENSES.—
Subsection (b) of such section is amended—
(1) by striking ‘‘(1)’’; 
(2) by striking ‘‘expenses specified in paragraph 
(2)’’ and inserting ‘‘travel, subsistence, and similar 
personal expenses’’; 
(3) by striking ‘‘developing country’’ and insert-
ing ‘‘developing nation’’; 
(4) by striking ‘‘in connection with the assign-
ment of that officer to the headquarters of a combat-
ant command as described in subsection (a)’’ and in-
373
serting ‘‘involved in a coalition while the liaison offi-
cer is assigned temporarily to a headquarters de-
scribed in subsection (a) in connection with the plan-
ning for, or conduct of, a coalition operation’’; and 
(5) by striking paragraph (2). 
(c) REIMBURSEMENT.—Subsection (c) of such section 
is amended by striking ‘‘by’’ before ‘‘subsection (a)’’ and 
inserting ‘‘under’’. 
(d) CLERICAL AMENDMENTS.—(1) The heading for sec-
tion 1051a of such title is amended to read as follows: 
‘‘§ 1051a. Foreign officers: administrative services and 
support; travel, subsistence, and other 
personal expenses’’. 
(2) The subsection heading for subsection (a) is amend-
ed by striking ‘‘AUTHORITY’’ and inserting ‘‘ADMINISTRA-
TIVE SERVICES AND SUPPORT’’. 
(3) The item relating to such section in the table of 
sections at the beginning of chapter 53 of each title is 
amended to read as follows:
‘‘1051a. Foreign officers: administrative services and support; travel, subsistence, 
and other personal expenses.’’.
374
SEC. 
1202. 
RECOGNITION 
OF 
SUPERIOR 
NONCOMBAT 
ACHIEVEMENTS OR PERFORMANCE BY MEM-
BERS OF FRIENDLY FOREIGN FORCES AND 
OTHER FOREIGN NATIONALS. 
(a) AUTHORITY.—Chapter 53 of title 10, United States 
Code, is amended by inserting after section 1051a the fol-
lowing new section: 
‘‘§ 1051b. Bilateral or regional cooperation programs: 
awards and mementos funds to recognize 
superior noncombat achievements or per-
formance 
‘‘(a) GENERAL AUTHORITY.—The Secretary of Defense 
may present awards and mementos purchased with funds 
appropriated for operation and maintenance of the armed 
forces to recognize superior noncombat achievements or per-
formance by members of friendly foreign forces and other 
foreign nationals that significantly enhance or support the 
National Security Strategy of the United States. 
‘‘(b) ACTIVITIES THAT MAY BE RECOGNIZED.—Ac-
tivities that may be recognized under subsection (a) include 
superior achievement or performance that—
‘‘(1) plays a crucial role in shaping the inter-
national security environment in ways that protect 
and promote United States interests; 
‘‘(2) supports or enhances United States overseas 
presence and peacetime engagement activities, includ-
375
ing defense cooperation initiatives, security assistance 
training and programs, and training and exercises 
with the armed forces; 
‘‘(3) helps to deter aggression and coercion, build 
coalitions, and promote regional stability; or 
‘‘(4) serves as a role model for appropriate con-
duct by military forces in emerging democracies. 
‘‘(c) LIMITATION.—Expenditures for the purchase or 
production of mementos for award under this section may 
not exceed the ‘minimal value’ established in accordance 
with section 7342(a)(5) of title 5.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by inserting after 
the item relating to section 1051a the following new item:
‘‘1051b. Bilateral or regional cooperation programs: awards and mementos to rec-
ognize superior noncombat achievements or performance.’’.
SEC. 1203. EXPANSION OF AUTHORITY TO WAIVE CHARGES 
FOR COSTS OF ATTENDANCE AT GEORGE C. 
MARSHALL EUROPEAN CENTER FOR SECU-
RITY STUDIES. 
Section 1306(b)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2892) is amended by striking ‘‘of cooperation partner 
states of the North Atlantic Council or the Partnership for 
Peace’’ and inserting ‘‘from states located in Europe or the 
territory of the former Soviet Union’’.
376
SEC. 1204. IDENTIFICATION OF GOODS AND TECHNOLOGIES 
CRITICAL FOR MILITARY SUPERIORITY. 
(a) IN GENERAL.—(1) Subchapter II of chapter 148 
of title 10, United States Code, is amended by adding at 
the end the following new section:
‘‘§ 2508. Goods and technologies critical for military 
superiority: list 
‘‘(a) REQUIREMENT TO MAINTAIN LIST.—(1) The Sec-
retary of Defense shall maintain a list of any goods or tech-
nology that, if obtained by a potential adversary, could un-
dermine the military superiority or qualitative military 
advantage of the United States over potential adversaries. 
‘‘(2) In this section, the term ‘goods or technology’ 
means—
‘‘(A) any article, natural or manmade substance, 
material, supply, or manufactured product, including 
inspection and test equipment; and 
‘‘(B) any information and know-how (whether in 
tangible form, such as models, prototypes, drawings, 
sketches, diagrams, blueprints, or manuals, or in in-
tangible form, such as training or technical services) 
that can be used to design, produce, manufacture, uti-
lize, or reconstruct goods, including computer software 
and technical data. 
‘‘(b) MATTERS TO BE INCLUDED ON LIST.—The Sec-
retary shall include on the list the following:
377
‘‘(1) Any technology or developing critical tech-
nology (including conventional weapons, weapons of 
mass destruction, and delivery systems) that could en-
hance a potential adversary’s military capabilities or 
that is critical to the United States maintaining its 
military superiority and qualitative military advan-
tage. 
‘‘(2) Any dual-use good, material, or know-how 
that could enhance a potential adversary’s military 
capabilities or that is critical to the United States 
maintaining its military superiority and qualitative 
military advantage, including those used to manufac-
ture weapons of mass destruction and their associated 
delivery systems. 
‘‘(c) REQUIREMENTS.—The Secretary shall ensure 
that—
‘‘(1) the list is subject to a systematic, ongoing 
assessment and analysis of dual-use technologies; and 
‘‘(2) the list is updated not less often than every 
two months. 
‘‘(d) AVAILABILITY.—The list shall be made avail-
able—
‘‘(1) in unclassified form on the Department of 
Defense public website, in a usable form; and
378
‘‘(2) in classified form to the Committee on 
Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives.’’.
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following new 
item:
‘‘2508. Goods and technologies critical for military superiority: list.’’.
(b) DEADLINE
FOR ESTABLISHMENT.—The list re-
quired by section 2508 of title 10, United States Code, as 
added by subsection (a), shall be established not later than 
180 days after the enactment of this Act.
SEC. 1205. REPORT ON ACQUISITION BY IRAQ OF AD-
VANCED WEAPONS.
(a) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to the Committees on Armed Services and Foreign 
Relations of the Senate and the Committees on Armed Serv-
ices and International Relations of the House of Represent-
atives a report on the acquisition by Iraq of weapons of 
mass destruction and associated delivery systems and the 
acquisition by Iraq of advanced conventional weapons. 
(b) MATTERS TO BE INCLUDED.—The report shall in-
clude the following: 
(1) A description of how Iraq was able to obtain 
any materials, technology, and know-how for its nu-
clear, chemical, biological, ballistic missile, and un-
379
manned aerial vehicle programs, and advanced con-
ventional weapons programs, from 1979 through 
April 2003 from entities (including Iraqi citizens) 
outside of Iraq. 
(2) An assessment of the degree to which United 
States, foreign, and multilateral export control re-
gimes prevented acquisition by Iraq of weapons of 
mass destruction-related technology and materials 
and advanced conventional weapons and delivery sys-
tems since the commencement of international inspec-
tions in Iraq. 
(3) An assessment of the effectiveness of United 
Nations sanctions at halting the flow of militarily-
useful contraband to Iraq from 1991 until the end of 
Operation Iraqi Freedom. 
(4) An assessment of how Iraq was able to evade 
International Atomic Energy Agency and United Na-
tions inspections regarding chemical, nuclear, biologi-
cal, and missile weapons and related capabilities. 
(5) Identification and a catalogue of the entities 
and countries that transferred militarily useful con-
traband to Iraq between 1991 and the end of Oper-
ation Iraqi Freedom, and the nature of that contra-
band.
380
(c) FORM OF REPORT.—The report shall be submitted 
in unclassified form with a classified annex, if necessary.
SEC. 1206. AUTHORITY FOR CHECK CASHING AND CUR-
RENCY EXCHANGE SERVICES TO BE PRO-
VIDED TO FOREIGN MILITARY MEMBERS PAR-
TICIPATING IN CERTAIN ACTIVITIES WITH 
UNITED STATES FORCES. 
(a) AUTHORITY.—Subsection (b) of section 3342 of 
title 31, United States Code, is amended by adding at the 
end the following new paragraph: 
‘‘(8) A member of the military forces of an allied 
or coalition nation who is participating in a joint 
operation, joint exercise, humanitarian mission, or 
peacekeeping mission with the Armed Forces of the 
United States, but—
‘‘(A) only if—
‘‘(i) such disbursing official action for 
members of the military forces of that na-
tion is approved by the senior United States 
military commander assigned to that oper-
ation or mission; and 
‘‘(ii) that nation has guaranteed pay-
ment for any deficiency resulting from such 
disbursing official action; and
381
‘‘(B) in the case of negotiable instruments, 
only for a negotiable instrument drawn on a fi-
nancial institution located in the United States 
or on a foreign branch of such an institution.’’. 
(b) TECHNICAL AMENDMENTS.—That subsection is 
further amended—
(1) by striking ‘‘only for—’’ in the matter pre-
ceding paragraph (1) and inserting ‘‘only for the fol-
lowing:’’; 
(2) by striking ‘‘an’’ at the beginning of para-
graph (1) and inserting ‘‘An’’; 
(3) by striking ‘‘personnel’’ in paragraphs (2) 
and (6) and inserting ‘‘Personnel’’; 
(4) by striking ‘‘a’’ at the beginning of para-
graphs (3), (4), (5), and (7) and inserting ‘‘A’’; 
(5) by striking the semicolon at the end of para-
graphs (1) through (5) and inserting a period; 
(6) by striking ‘‘; or’’ at the end of paragraph 
(6) and inserting a period; and 
(7) by striking ‘‘1752(1))’’ in paragraph (7) and 
inserting ‘‘1752(1)))’’.
382
SEC. 1207. REQUIREMENTS FOR TRANSFER TO FOREIGN 
COUNTRIES OF CERTAIN SPECIFIED TYPES 
OF EXCESS AIRCRAFT. 
(a) EXPANSION OF TRANSFER REQUIREMENT.—Sec-
tion 2581 of title 10, United States Code, is amended—
(1) in subsection (a)(1), by striking ‘‘UH–1 
Huey helicopter or AH–1 Cobra helicopter’’ and in-
serting ‘‘UH–1 Huey aircraft, AH–1 Cobra aircraft, 
T–2 Buckeye aircraft, or T–37 Tweet aircraft’’; and 
(2) by striking ‘‘helicopter’’ each subsequent 
place it appears in such section and inserting ‘‘air-
craft’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of such 
section is amended to read as follows: 
‘‘§ 2581. Specified excess aircraft: requirements for 
transfer to foreign countries’’. 
(2) The item relating to such section in the table of 
sections at the beginning of chapter 153 of such title is 
amended to read as follows:
‘‘2581. Specified excess aircraft: requirements for transfer to foreign countries.’’.
SEC. 1208. LIMITATION ON NUMBER OF UNITED STATES 
MILITARY PERSONNEL IN COLOMBIA. 
(a) LIMITATION.—None of the funds available to the 
Department of Defense for any fiscal year may be used to 
support or maintain more than 500 members of the Armed 
Forces on duty in the Republic of Colombia at any time.
383
(b) EXCLUSION OF CERTAIN MEMBERS.—For purposes 
of determining compliance with the limitation in subsection 
(a), the Secretary of Defense may exclude the following mili-
tary personnel: 
(1) A member of the Armed Forces in the Repub-
lic of Colombia for the purpose of rescuing or retriev-
ing United States military or civilian Government 
personnel, except that the period for which such a 
member may be so excluded may not exceed 30 days 
unless expressly authorized by law. 
(2) A member of the Armed Forces assigned to 
the United States Embassy in Colombia as an 
attache´, as a member of the security assistance office, 
or as a member of the Marine Corps security contin-
gent. 
(3) A member of the Armed Forces in Colombia 
to participate in relief efforts in responding to a nat-
ural disaster. 
(4) Nonoperational transient military personnel. 
(5) A member of the Armed Forces making a 
port call from a military vessel in Colombia.
(c) NATIONAL SECURITY WAIVER.—(1) The Secretary 
of Defense may waive the limitation in subsection (a) if 
the Secretary determines that such waiver is in the national 
security interest of the United States.
384
(2) The Secretary shall notify the congressional defense 
committees not later 15 days after the date of the exercise 
of the waiver authority under paragraph (1).
TITLE 
XIII—COOPERATIVE 
THREAT 
REDUCTION 
WITH 
STATES OF THE FORMER SO-
VIET UNION
SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT RE-
DUCTION PROGRAMS AND FUNDS. 
(a) SPECIFICATION OF CTR PROGRAMS.—For pur-
poses of section 301 and other provisions of this Act, Coop-
erative Threat Reduction programs are the programs speci-
fied in section 1501(b) of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110 
Stat. 2731; 50 U.S.C. 2362 note). 
(b) FISCAL YEAR 2004 COOPERATIVE THREAT REDUC-
TION FUNDS DEFINED.—As used in this title, the term ‘‘fis-
cal year 2004 Cooperative Threat Reduction funds’’ means 
the funds appropriated pursuant to the authorization of ap-
propriations in section 301 for Cooperative Threat Reduc-
tion programs. 
(c) AVAILABILITY
OF FUNDS.—Funds appropriated 
pursuant to the authorization of appropriations in section 
301 for Cooperative Threat Reduction programs shall be 
available for obligation for three fiscal years.
385
SEC. 1302. FUNDING ALLOCATIONS. 
(a) FUNDING
FOR
SPECIFIC
PURPOSES.—Of the 
$450,800,000 authorized to be appropriated to the Depart-
ment of Defense for fiscal year 2004 in section 301(19) for 
Cooperative Threat Reduction programs, the following 
amounts may be obligated for the purposes specified: 
(1) For strategic offensive arms elimination in 
Russia, $86,400,000. 
(2) For strategic nuclear arms elimination in 
Ukraine, $3,900,000. 
(3) For nuclear weapons transportation security 
in Russia, $23,200,000. 
(4) For nuclear weapons storage security in Rus-
sia, $48,000,000. 
(5) For activities designated as Other Program 
Support, $13,100,000. 
(6) 
For 
defense 
and 
military 
contacts, 
$11,100,000. 
(7) For chemical weapons destruction in Russia, 
$171,500,000. 
(8) For biological weapons proliferation preven-
tion in the former Soviet Union, $54,200,000. 
(9) For weapons of mass destruction prolifera-
tion prevention in the states of the former Soviet 
Union, $39,400,000.
386
(b) REPORT ON OBLIGATION OR EXPENDITURE OF 
FUNDS FOR OTHER PURPOSES.—No fiscal year 2004 Coop-
erative Threat Reduction funds may be obligated or ex-
pended for a purpose other than a purpose listed in para-
graphs (1) through (9) of subsection (a) until 30 days after 
the date that the Secretary of Defense submits to Congress 
a report on the purpose for which the funds will be obligated 
or expended and the amount of funds to be obligated or ex-
pended. Nothing in the preceding sentence shall be construed 
as authorizing the obligation or expenditure of fiscal year 
2004 Cooperative Threat Reduction funds for a purpose for 
which the obligation or expenditure of such funds is specifi-
cally prohibited under this title or any other provision of 
law. 
(c) LIMITED
AUTHORITY
TO
VARY
INDIVIDUAL 
AMOUNTS.—(1) Subject to paragraphs (2) and (3), in any 
case in which the Secretary of Defense determines that it 
is necessary to do so in the national interest, the Secretary 
may obligate amounts appropriated for fiscal year 2004 for 
a purpose listed in any of the paragraphs in subsection (a) 
in excess of the specific amount authorized for that purpose. 
(2) An obligation of funds for a purpose stated in any 
of the paragraphs in subsection (a) in excess of the specific 
amount authorized for such purpose may be made using 
the authority provided in paragraph (1) only after—
387
(A) the Secretary submits to Congress notifica-
tion of the intent to do so together with a complete 
discussion of the justification for doing so; and 
(B) 15 days have elapsed following the date of 
the notification. 
(3) The Secretary may not, under the authority pro-
vided in paragraph (1), obligate amounts for a purpose 
stated in any of paragraphs (5) through (8) of subsection 
(a) in excess of 125 percent of the specific amount author-
ized for such purpose.
SEC. 1303. LIMITATION ON USE OF FUNDS UNTIL CERTAIN 
PERMITS OBTAINED. 
(a) LIMITATION ON USE OF FUNDS.—With respect to 
a new project or an incomplete project carried out by the 
Department of Defense under Cooperative Threat Reduction 
programs, not more than 35 percent of the total costs of 
the project may be obligated or expended from Cooperative 
Threat Reduction funds for any fiscal year until—
(1) the Secretary of Defense determines—
(A) in the case of a new project, the number 
and type of permits that may be required for the 
lifetime of the project in the proposed location or 
locations of the project; and 
(B) in the case of an incomplete project, the 
number and type of permits that may be re-
388
quired for the remaining lifetime of the project; 
and 
(2) the government of the state of the former So-
viet Union in which the project is being or is pro-
posed to be carried out obtains and transmits copies 
of all such permits to the Department of Defense. 
(b) DEFINITIONS.—In this section, with respect to a 
project under Cooperative Threat Reduction programs: 
(1) NEW
PROJECT.—The term ‘‘new project’’ 
means a project for which no funds have been obli-
gated or expended as of the date of the enactment of 
this Act. 
(2) INCOMPLETE PROJECT.—The term ‘‘incom-
plete project’’ means a project for which funds have 
been obligated or expended before the date of the en-
actment of this Act and which is not completed as of 
such date. 
(3) PERMIT.—The term ‘‘permit’’ means any 
local or national permit for development, general con-
struction, environmental, land use, or other purposes 
that is required in the state of the former Soviet 
Union in which the project is being or is proposed to 
be carried out.
389
SEC. 1304. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL 
RESEARCH IN THE FORMER SOVIET UNION. 
Of the funds authorized to be appropriated for biologi-
cal weapons proliferation prevention pursuant to section 
1302, no funds may be obligated for cooperative biodefense 
research or bioattack early warning and preparedness 
under a Cooperative Threat Reduction program at a site 
in a state of the former Soviet Union until the Secretary 
of Defense notifies Congress that—
(1) the Secretary has determined, through access 
to the site, that no biological weapons research pro-
hibited by international law is being conducted at the 
site; 
(2) the Secretary has assessed the vulnerability of 
the site to external or internal attempts to exploit or 
obtain dangerous pathogens illicitly; and 
(3) the Secretary has begun to implement appro-
priate security measures at the site to reduce that vul-
nerability and to prevent the diversion of dangerous 
pathogens from legitimate research.
SEC. 1305. AUTHORITY AND FUNDS FOR NONPROLIFERA-
TION AND DISARMAMENT. 
The Secretary of Defense is authorized to transfer 
$50,000,000 in prior year Cooperative Threat Reduction 
funds from the Department of Defense to the Department 
of State Nonproliferation and Disarmament Fund for dis-
390
armament and nonproliferation purposes outside the terri-
tory of the former Soviet Union.
SEC. 1306. REQUIREMENT FOR ON-SITE MANAGERS. 
(a) ON-SITE MANAGER REQUIREMENT.—Before obli-
gating any Cooperative Threat Reduction funds for a 
project described in subsection (b), the Secretary of Defense 
shall appoint a United States Federal Government em-
ployee as an on-site manager. 
(b) PROJECTS COVERED.—Subsection (a) applies to a 
project—
(1) to be located in a state of the former Soviet 
Union; 
(2) which involves dismantlement, destruction, or 
storage facilities, or construction of a facility; and 
(3) with respect to which the total contribution 
by the Department of Defense is expected to exceed 
$25,000,000. 
(c) DUTIES OF ON-SITE MANAGER.—The on-site man-
ager appointed under subsection (a) shall—
(1) develop, in cooperation with representatives 
from governments of countries participating in the 
project, a list of those steps or activities critical to 
achieving the project’s disarmament or nonprolifera-
tion goals;
391
(2) establish a schedule for completing those steps 
or activities; 
(3) meet with all participants to seek assurances 
that those steps or activities are being completed on 
schedule; and 
(4) suspend United States participation in a 
project when a non-United States participant fails to 
complete a scheduled step or activity on time, unless 
directed by the Secretary of Defense to resume United 
States participation. 
(d) STEPS OR ACTIVITIES.—Steps or activities referred 
to in subsection (c)(1) are those activities that, if not com-
pleted, will prevent a project from achieving its disar-
mament or nonproliferation goals, including, at a min-
imum, the following: 
(1) Identification and acquisition of permits (as 
defined in section 1303(b)). 
(2) Verification that the items, substances, or ca-
pabilities to be dismantled, secured, or otherwise 
modified are available for dismantlement, securing, or 
modification. 
(3) Timely provision of financial, personnel, 
management, transportation, and other resources. 
(e) NOTIFICATION
TO CONGRESS.—In any case in 
which the Secretary of Defense directs an on-site manager
392
to resume United States participation in a project under 
subsection (c)(4), the Secretary shall concurrently notify 
Congress of such direction. 
(f) EFFECTIVE DATE.—This section shall take effect six 
months after the date of the enactment of this Act.
SEC. 1307. PROVISIONS RELATING TO FUNDING FOR CHEM-
ICAL WEAPONS DESTRUCTION FACILITY IN 
RUSSIA. 
(a) INAPPLICABILITY
OF LIMITATION
ON USE
OF 
FUNDS.—(1) The conditions described in section 1305 of 
the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106–65; 22 U.S.C. 5952 note) shall not 
apply to the obligation and expenditure of funds available 
for obligation during fiscal year 2004 for the planning, de-
sign, or construction of a chemical weapons destruction fa-
cility in Russia if the President submits to Congress a writ-
ten certification that includes—
(A) a statement as to why waiving the condi-
tions is important to the national security interests 
of the United States; 
(B) a full and complete justification for exer-
cising this waiver; and 
(C) a plan to promote a full and accurate disclo-
sure by Russia regarding the size, content, status, and 
location of its chemical weapons stockpile.
393
(2) The authority under paragraph (1) shall expire on 
September 30, 2004. 
(b) AVAILABILITY OF FUNDS.—(1) Except as provided 
in paragraph (2), of the funds that may be obligated for 
a chemical weapons destruction facility in Russia as speci-
fied in section 1302(a)(7), the Secretary of Defense may not 
obligate an amount greater than two times the amount obli-
gated by Russia and any other state for the planning, de-
sign, construction, or operation of a chemical weapons de-
struction facility in Russia. 
(2) Of the funds that may be obligated for a chemical 
weapons destruction facility in Russia as specified in sec-
tion 1302(a)(7), $71,500,000 shall be available for obliga-
tion on and after October 1, 2003.
TITLE XIV—SERVICES 
ACQUISITION REFORM 
SEC. 1401. SHORT TITLE. 
This title may be cited as the ‘‘Services Acquisition 
Reform Act of 2003’’. 
SEC. 1402. EXECUTIVE AGENCY DEFINED. 
In this title, the term ‘‘executive agency’’ has the mean-
ing given that term in section 4(1) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(1)), unless specifi-
cally stated otherwise.
394
Subtitle A—Acquisition Workforce 
and Training 
SEC. 1411. DEFINITION OF ACQUISITION. 
Section 4 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 403) is amended by adding at the end the 
following: 
‘‘(16) The term ‘acquisition’—
‘‘(A) means the process of acquiring, with 
appropriated funds, by contract for purchase or 
lease, property or services (including construc-
tion) that support the missions and goals of an 
executive agency, from the point at which the re-
quirements of the executive agency are estab-
lished in consultation with the chief acquisition 
officer of the executive agency; and 
‘‘(B) includes—
‘‘(i) the process of acquiring property 
or services that are already in existence, or 
that must be created, developed, dem-
onstrated, and evaluated; 
‘‘(ii) the description of requirements to 
satisfy agency needs; 
‘‘(iii) solicitation and selection of 
sources; 
‘‘(iv) award of contracts;
395
‘‘(v) contract performance; 
‘‘(vi) contract financing: 
‘‘(vii) management and measurement 
of contract performance through final deliv-
ery and payment; and 
‘‘(viii) 
technical 
and 
management 
functions directly related to the process of 
fulfilling agency requirements by contract.’’. 
SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND. 
(a) PURPOSES.—The purposes of this section are to en-
sure that the Federal acquisition workforce—
(1) adapts to fundamental changes in the nature 
of Federal Government acquisition of property and 
services associated with the changing roles of the Fed-
eral Government; and 
(2) acquires new skills and a new perspective to 
enable it to contribute effectively in the changing en-
vironment of the 21st century. 
(b) ESTABLISHMENT OF FUND.—Section 37 of the Of-
fice of Federal Procurement Policy Act (41 U.S.C. 433) is 
amended by adding at the end of subsection (h) the fol-
lowing new paragraph: 
‘‘(3) 
ACQUISITION
WORKFORCE
TRAINING 
FUND.—(A) The Administrator of General Services 
shall establish an acquisition workforce training fund.
396
The Administrator shall manage the fund through the 
Federal Acquisition Institute to support the training 
of the acquisition workforce of the executive agencies 
other than the Department of Defense. The Adminis-
trator shall consult with the Administrator for Fed-
eral Procurement Policy in managing the fund. 
‘‘(B) There shall be credited to the acquisition 
workforce training fund 5 percent of the fees collected 
by executive agencies (other than the Department of 
Defense) under the following contracts: 
‘‘(i) Governmentwide task and delivery-
order contracts entered into under sections 303H 
and 303I of the Federal Property and Adminis-
trative Services Act of 1949 (41 U.S.C. 253h and 
253i). 
‘‘(ii) Governmentwide contracts for the ac-
quisition of information technology as defined in 
section 11101 of title 40, United States Code, 
and multiagency acquisition contracts for such 
technology authorized by section 11314 of such 
title. 
‘‘(iii) Multiple-award schedule contracts en-
tered into by the Administrator of General Serv-
ices.
397
‘‘(C) The head of an executive agency that ad-
ministers a contract described in subparagraph (B) 
shall remit to the General Services Administration 
the amount required to be credited to the fund with 
respect to such contract at the end of each quarter of 
the fiscal year. 
‘‘(D) The Administrator of General Services, 
through the Office of Federal Acquisition Policy, shall 
ensure that funds collected for training under this sec-
tion are not used for any purpose other than the pur-
pose specified in subparagraph (A). 
‘‘(E) Amounts credited to the fund shall be in 
addition to funds requested and appropriated for edu-
cation and training referred to in paragraph (1). 
‘‘(F) Amounts credited to the fund shall remain 
available until expended.’’. 
(c) EXCEPTION.—This section and the amendments 
made by this section shall not apply to the acquisition 
workforce of the Department of Defense. 
SEC. 1413. ACQUISITION WORKFORCE RECRUITMENT PRO-
GRAM. 
(a) AUTHORITY TO CARRY OUT PROGRAM.—For pur-
poses of sections 3304, 5333, and 5753 of title 5, United 
States Code, the head of a department or agency of the 
United States (including the Secretary of Defense) may de-
398
termine that certain Federal acquisition positions are 
‘‘shortage category’’ positions in order to recruit and ap-
point directly to positions of employment in the department 
or agency highly qualified persons, such as any person 
who—
(1) holds a bachelor’s degree from an accredited 
institution of higher education; 
(2) holds, from an accredited law school or an 
accredited institution of higher education—
(A) a law degree; or 
(B) a masters or equivalent degree in busi-
ness administration, public administration, or 
systems engineering; or 
(3) has significant experience with commercial 
acquisition practices, terms, and conditions. 
(b) REQUIREMENTS.—The exercise of authority to take 
a personnel action under this section shall be subject to poli-
cies prescribed by the Office of Personnel Management that 
govern direct recruitment, including policies requiring ap-
pointment of a preference eligible who satisfies the quali-
fication requirements. 
(c) TERMINATION OF AUTHORITY.—The head of a de-
partment or agency may not appoint a person to a position 
of employment under this section after September 30, 2007.
399
(d) REPORT.—Not later than March 31, 2007, the Ad-
ministrator for Federal Procurement Policy shall submit to 
Congress a report on the implementation of this section. The 
report shall include—
(1) the Administrator’s assessment of the efficacy 
of the exercise of the authority provided in this sec-
tion in attracting employees with unusually high 
qualifications to the acquisition workforce; and 
(2) any recommendations considered appropriate 
by the Administrator on whether the authority to 
carry out the program should be extended. 
SEC. 1414. ARCHITECTURAL AND ENGINEERING ACQUISI-
TION WORKFORCE. 
The Administrator for Federal Procurement Policy, in 
consultation with the Secretary of Defense, the Adminis-
trator of General Services, and the Director of the Office 
of Personnel Management, shall develop and implement a 
plan to ensure that the Federal Government maintains the 
necessary capability with respect to the acquisition of archi-
tectural and engineering services to—
(1) ensure that Federal Government employees 
have the expertise to determine agency requirements 
for such services; 
(2) establish priorities and programs (including 
acquisition plans);
400
(3) establish professional standards; 
(4) develop scopes of work; and 
(5) award and administer contracts for such 
services. 
Subtitle B—Adaptation of Business 
Acquisition Practices 
PART I—ADAPTATION OF BUSINESS 
MANAGEMENT PRACTICES 
SEC. 1421. CHIEF ACQUISITION OFFICERS. 
(a) APPOINTMENT
OF CHIEF ACQUISITION OFFI-
CERS.—(1) Section 16 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 414) is amended to read as follows:
‘‘SEC. 16. CHIEF ACQUISITION OFFICERS. 
‘‘(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISITION 
OFFICERS.—The head of each executive agency (other than 
the Department of Defense) shall appoint or designate a 
non-career employee as Chief Acquisition Officer for the 
agency, who shall—
‘‘(1) have acquisition management as that offi-
cial’s primary duty; and 
‘‘(2) advise and assist the head of the executive 
agency and other agency officials to ensure that the 
mission of the executive agency is achieved through 
the management of the agency’s acquisition activities.
401
‘‘(b) AUTHORITY AND FUNCTIONS OF AGENCY CHIEF 
ACQUISITION OFFICERS.—The functions of each Chief Ac-
quisition Officer shall include—
‘‘(1) monitoring the performance of acquisition 
activities and acquisition programs of the executive 
agency, evaluating the performance of those programs 
on the basis of applicable performance measurements, 
and advising the head of the executive agency regard-
ing the appropriate business strategy to achieve the 
mission of the executive agency; 
‘‘(2) increasing the use of full and open competi-
tion in the acquisition of property and services by the 
executive agency by establishing policies, procedures, 
and practices that ensure that the executive agency re-
ceives a sufficient number of sealed bids or competi-
tive proposals from responsible sources to fulfill the 
Government’s requirements (including performance 
and delivery schedules) at the best value considering 
the nature of the property or service procured; 
‘‘(3) making acquisition decisions consistent 
with all applicable laws and establishing clear lines 
of authority, accountability, and responsibility for ac-
quisition decisionmaking within the executive agency; 
‘‘(4) managing the direction of acquisition policy 
for the executive agency, including implementation of
402
the unique acquisition policies, regulations, and 
standards of the executive agency; 
‘‘(5) developing and maintaining an acquisition 
career management program in the executive agency 
to ensure that there is an adequate professional work-
force; and 
‘‘(6) as part of the strategic planning and per-
formance evaluation process required under section 
306 of title 5, United States Code, and sections 
1105(a)(28), 1115, 1116, and 9703 of title 31, United 
States Code—
‘‘(A) assessing the requirements established 
for agency personnel regarding knowledge and 
skill in acquisition resources management and 
the adequacy of such requirements for facili-
tating the achievement of the performance goals 
established for acquisition management; 
‘‘(B) in order to rectify any deficiency in 
meeting such requirements, developing strategies 
and specific plans for hiring, training, and pro-
fessional development; and 
‘‘(C) reporting to the head of the executive 
agency on the progress made in improving ac-
quisition management capability.’’.
403
(2) The item relating to section 16 in the table of con-
tents in section 1(b) of such Act is amended to read as fol-
lows:
‘‘Sec. 16. Chief Acquisition Officers.’’.
(b) REFERENCES TO SENIOR PROCUREMENT EXECU-
TIVE.—
(1) AMENDMENT TO THE OFFICE OF FEDERAL 
POLICY ACT.—
(A) Subsections (a)(2)(A) and (b) of section 
20 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 418(a)(2)(A), (b)) are amended 
by striking ‘‘senior procurement executive’’ each 
place it appears and inserting ‘‘Chief Acquisi-
tion Officer’’. 
(B) Subsection (c)(2)(A)(ii) of section 29 of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 425(c)(2)(A)(ii)) is amended by striking 
‘‘senior procurement executive’’ and inserting 
‘‘Chief Acquisition Officer’’. 
(C) Subsection (c) of section 37 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 
433(c)) is amended—
(i) by striking ‘‘SENIOR PROCURE-
MENT EXECUTIVE’’ in the heading and in-
serting ‘‘CHIEF
ACQUISITION
OFFICER’’; 
and
404
(ii) by striking ‘‘senior procurement 
executive’’ each place it appears and insert-
ing ‘‘Chief Acquisition Officer’’. 
(2) AMENDMENT TO TITLE III OF THE FEDERAL 
PROPERTY
AND
ADMINISTRATIVE
SERVICES
ACT
OF 
1949.—Sections 302C(b) and 303(f)(1)(B)(iii) of the 
Federal Property and Administrative Services Act of 
1949 (41 U.S.C. 252c, 253) are amended by striking 
‘‘senior procurement executive’’ each place it appears 
and inserting ‘‘Chief Acquisition Officer’’. 
(3) AMENDMENT TO TITLE 10, UNITED STATES 
CODE.—The following sections of title 10, United 
States Code are amended by striking ‘‘senior procure-
ment executive’’ each place it appears and inserting 
‘‘Chief Acquisition Officer’’: 
(A) Section 133(c)(1). 
(B) Subsections (d)(2)(B) and (f)(1) of sec-
tion 2225. 
(C) Section 2302c(b). 
(D) Section 2304(f)(1)(B)(iii). 
(E) Section 2359a(i). 
(4) REFERENCES.—Any reference to a senior 
procurement executive of a department or agency of 
the United States in any other provision of law or 
regulation, document, or record of the United States
405
shall be deemed to be a reference to the Chief Acquisi-
tion Officer of the department or agency. 
(c) TECHNICAL CORRECTION.—Section 1115(a) of title 
31, United States Code, is amended by striking ‘‘section 
1105(a)(29)’’ and inserting ‘‘section 1105(a)(28)’’. 
SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL. 
(a) ESTABLISHMENT OF COUNCIL.—The Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403 et seq.) is 
amended by inserting after section 16 the following new sec-
tion: 
‘‘SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL. 
‘‘(a) ESTABLISHMENT.—There is established in the ex-
ecutive branch a Chief Acquisition Officers Council. 
‘‘(b) MEMBERSHIP.—The members of the Council shall 
be as follows: 
‘‘(1) The Deputy Director for Management of the 
Office of Management and Budget, who shall act as 
Chairman of the Council. 
‘‘(2) The Administrator for Federal Procurement 
Policy. 
‘‘(3) The chief acquisition officer of each execu-
tive agency. 
‘‘(4) The Under Secretary of Defense for Acquisi-
tion, Technology, and Logistics.
406
‘‘(5) Any other officer or employee of the United 
States designated by the Chairman. 
‘‘(c) LEADERSHIP; SUPPORT.—(1) The Administrator 
for Federal Procurement Policy shall lead the activities of 
the Council on behalf of the Deputy Director for Manage-
ment. 
‘‘(2)(A) The Vice Chairman of the Council shall be se-
lected by the Council from among its members. 
‘‘(B) The Vice Chairman shall serve a 1-year term, and 
may serve multiple terms. 
‘‘(3) The Administrator of General Services shall pro-
vide administrative and other support for the Council. 
‘‘(d) PRINCIPAL FORUM.—The Council is designated 
the principal interagency forum for monitoring and im-
proving the Federal acquisition system. 
‘‘(e) FUNCTIONS.—The Council shall perform functions 
that include the following: 
‘‘(1) Develop recommendations for the Director of 
the Office of Management and Budget on Federal ac-
quisition policies and requirements. 
‘‘(2) Share experiences, ideas, best practices, and 
innovative approaches related to Federal acquisition. 
‘‘(3) Assist the Administrator in the identifica-
tion, development, and coordination of multiagency
407
projects and other innovative initiatives to improve 
Federal acquisition. 
‘‘(4) Promote effective business practices that en-
sure the timely delivery of best value products to the 
Federal Government and achieve appropriate public 
policy objectives. 
‘‘(5) Further integrity, fairness, competition, 
openness, and efficiency in the Federal acquisition 
system. 
‘‘(6) Work with the Office of Personnel Manage-
ment to assess and address the hiring, training, and 
professional development needs of the Federal Govern-
ment related to acquisition. 
‘‘(7) Work with the Administrator and the Fed-
eral Acquisition Regulatory Council to promote the 
business practices referred to in paragraph (4) and 
other results of the functions carried out under this 
subsection.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of such Act is amended by inserting after the 
item relating to section 16 the following new item:
‘‘Sec. 16A. Chief Acquisition Officers Council.’’.
SEC. 1423. STATUTORY AND REGULATORY REVIEW. 
(a) ESTABLISHMENT.—Not later than 90 days after 
the date of the enactment of this Act, the Administrator for 
Federal Procurement Policy shall establish an advisory
408
panel to review laws and regulations regarding the use of 
commercial practices, performance-based contracting, the 
performance of acquisition functions across agency lines of 
responsibility, and the use of Governmentwide contracts. 
(b) MEMBERSHIP.—The panel shall be composed of at 
least nine individuals who are recognized experts in acqui-
sition law and Government acquisition policy. In making 
appointments to the panel, the Administrator shall—
(1) consult with the Secretary of Defense, the Ad-
ministrator of General Services, the Committees on 
Armed Services and Government Reform of the House 
of Representatives, and the Committees on Armed 
Services and Governmental Affairs of the Senate, and 
(2) ensure that the members of the panel reflect 
the diverse experiences in the public and private sec-
tors. 
(c) DUTIES.—The panel shall—
(1) review all Federal acquisition laws and regu-
lations with a view toward ensuring effective and ap-
propriate use of commercial practices and perform-
ance-based contracting; and 
(2) make any recommendations for the repeal or 
amendment of such laws or regulations that are con-
sidered necessary as a result of such review—
409
(A) to eliminate any provisions in such 
laws or regulations that are unnecessary for the 
effective, efficient, and fair award and adminis-
tration of contracts for the acquisition by the 
Federal Government of goods and services; 
(B) to ensure the continuing financial and 
ethical integrity of acquisitions by the Federal 
Government; and 
(C) to protect the best interests of the Fed-
eral Government. 
(d) REPORT.—Not later than one year after the estab-
lishment of the panel, the panel shall submit to the Admin-
istrator and to the Committees on Armed Services and Gov-
ernment Reform of the House of Representatives and the 
Committees on Armed Services and Governmental Affairs 
of the Senate a report containing a detailed statement of 
the findings, conclusions, and recommendations of the 
panel. 
PART II—OTHER ACQUISITION IMPROVEMENTS 
SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT 
FRANCHISE FUND PROGRAMS. 
Section 403(f) of the Federal Financial Management 
Act of 1994 (Public Law 103–356; 31 U.S.C. 501 note) is 
amended by striking ‘‘October 1, 2003’’ and inserting ‘‘Oc-
tober 1, 2006’’.
410
SEC. 1427. AGENCY ACQUISITION PROTESTS. 
(a) DEFENSE CONTRACTS.—(1) Chapter 137 of title 
10, United States Code, is amended by inserting after sec-
tion 2305a the following new section:
‘‘§ 2305b. Protests
‘‘(a) IN GENERAL.—An interested party may protest 
an acquisition of supplies or services by an agency based 
on an alleged violation of an acquisition law or regulation, 
and a decision regarding such alleged violation shall be 
made by the agency in accordance with this section. 
‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING 
DECISION.—(1) Except as provided in paragraph (2), a 
contract may not be awarded by an agency after a protest 
concerning the acquisition has been submitted under this 
section and while the protest is pending. 
‘‘(2) The head of the acquisition activity responsible 
for the award of the contract may authorize the award of 
a contract, notwithstanding pending protest under this sec-
tion, upon making a written finding that urgent and com-
pelling circumstances do not allow for waiting for a deci-
sion on the protest. 
‘‘(c) RESTRICTION
ON
CONTRACT
PERFORMANCE 
PENDING DECISION.—(1) Except as provided in paragraph 
(2), performance of a contract may not be authorized (and 
performance of the contract shall cease if performance has 
already begun) in any case in which a protest of the con-
411
tract award is submitted under this section before the later 
of—
‘‘(A) the date that is 10 days after the date of 
contract award; or 
‘‘(B) the date that is five days after an agency 
debriefing date offered to an unsuccessful offeror for 
any debriefing that is requested and, when requested, 
is required, under section 2305(b)(5) of this title. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize performance of 
the contract notwithstanding a pending protest under this 
section upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a de-
cision on the protest. 
‘‘(d) DEADLINE FOR DECISION.—The head of an agen-
cy shall issue a decision on a protest under this section not 
later than the date that is 20 working days after the date 
on which the protest is submitted to such head of an agency. 
‘‘(e) CONSTRUCTION.—Nothing in this section shall af-
fect the right of an interested party to file a protest with 
the Comptroller General under subchapter V of chapter 35 
of title 31 or in the United States Court of Federal Claims. 
‘‘(f) DEFINITIONS.—In this section, the terms ‘protest’ 
and ‘interested party’ have the meanings given such terms 
in section 3551 of title 31.’’.
412
(2) The table of sections at the beginning of such chap-
ter is amended by inserting after the item relating to section 
2305a the following new item:
‘‘2305b. Protests.’’.
(b) OTHER AGENCIES.—Title III of the Federal Prop-
erty and Administrative Services Act of 1949 is amended 
by inserting after section 303M (41 U.S.C. 253m) the fol-
lowing new section: 
‘‘SEC. 303N. PROTESTS.
‘‘(a) IN GENERAL.—An interested party may protest 
an acquisition of supplies or services by an executive agency 
based on an alleged violation of an acquisition law or regu-
lation, and a decision regarding such alleged violation shall 
be made by the agency in accordance with this section. 
‘‘(b) RESTRICTION ON CONTRACT AWARD PENDING 
DECISION.—(1) Except as provided in paragraph (2), a 
contract may not be awarded by an agency after a protest 
concerning the acquisition has been submitted under this 
section and while the protest is pending. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize the award of 
the contract, notwithstanding a pending protest under this 
section, upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a de-
cision on the protest.
413
‘‘(c) RESTRICTION
ON
CONTRACT
PERFORMANCE 
PENDING DECISION.—(1) Except as provided in paragraph 
(2), performance of a contract may not be authorized (and 
performance of the contract shall cease if performance has 
already begun) in any case in which a protest of the con-
tract award is submitted under this section before the later 
of—
‘‘(A) the date that is 10 days after the date of 
contract award; or 
‘‘(B) the date that is five days after an agency 
debriefing date offered to an unsuccessful offeror for 
any debriefing that is requested and, when requested, 
is required, under section 303B(e) of this title. 
‘‘(2) The head of the acquisition activity responsible 
for the award of a contract may authorize performance of 
the contract notwithstanding a pending protest under this 
section upon making a written finding that urgent and 
compelling circumstances do not allow for waiting for a de-
cision on the protest. 
‘‘(d) DEADLINE FOR DECISION.—The head of an execu-
tive agency shall issue a decision on a protest under this 
section not later than the date that is 20 working days after 
the date on which the protest is submitted to the executive 
agency.
414
‘‘(e) CONSTRUCTION.—Nothing in this section shall af-
fect the right of an interested party to file a protest with 
the Comptroller General under subchapter V of chapter 35 
of title 31, United States Code, or in the United States 
Court of Federal Claims. 
‘‘(f) DEFINITIONS.—In this section, the terms ‘protest’ 
and ‘interested party’ have the meanings given such terms 
in section 3551 of title 31, United States Code.’’. 
(c) CONFORMING AMENDMENT.—Section 3553(d)(4) of 
title 31, United States Code, is amended—
(1) in subparagraph (A), by striking ‘‘or’’ at the 
end; 
(2) by striking the period at the end of subpara-
graph (B) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) in the case of a protest of the same matter 
regarding such contract that is submitted under sec-
tion 2305b of title 10 or section 303N of the Federal 
Property and Administrative Services Act of 1949, 
the date that is 5 days after the date on which a deci-
sion on that protest is issued.’’.
415
SEC. 1428. IMPROVEMENTS IN CONTRACTING FOR ARCHI-
TECTURAL AND ENGINEERING SERVICES. 
(a) TITLE 10.—Section 2855(b) of title 10, United 
States Code, is amended—
(1) in paragraph (2), by striking ‘‘$85,000’’ and 
inserting ‘‘$300,000’’; and 
(2) by adding at the end the following new para-
graph:
‘‘(4) The selection and competition requirements de-
scribed in subsection (a) shall apply to any contract for 
architectural and engineering services (including surveying 
and mapping services) that is entered into by the head of 
an agency (as such term is defined in section 2302 of this 
title).’’. 
(b) ARCHITECTURAL AND ENGINEERING SERVICES.—
Architectural and engineering services (as defined in section 
1102 of title 40, United States Code) shall not be offered 
under multiple-award schedule contracts entered into by the 
Administrator of General Services or under Government-
wide task and delivery-order contracts entered into under 
sections 2304a and 2304b of title 10, United States Code, 
or sections 303H and 303I of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 253h and 
253i) unless such services—
(1) are performed under the direct supervision of 
a professional engineer licensed in a State; and
416
(2) are awarded in accordance with the selection 
procedures set forth in chapter 11 of title 40, United 
States Code. 
SEC. 1429. AUTHORIZATION OF TELECOMMUTING FOR FED-
ERAL CONTRACTORS. 
(a) AMENDMENT TO THE FEDERAL ACQUISITION REG-
ULATION.—Not later than 180 days after the date of the 
enactment of this Act, the Federal Acquisition Regulatory 
Council shall amend the Federal Acquisition Regulation 
issued in accordance with sections 6 and 25 of the Office 
of Federal Procurement Policy Act (41 U.S.C. 405 and 421) 
to permit telecommuting by employees of Federal Govern-
ment contractors in the performance of contracts entered 
into with executive agencies. 
(b) CONTENT OF AMENDMENT.—The regulation issued 
pursuant to subsection (a) shall, at a minimum, provide 
that solicitations for the acquisition of property or services 
may not set forth any requirement or evaluation criteria 
that would—
(1) render an offeror ineligible to enter into a 
contract on the basis of the inclusion of a plan of the 
offeror to permit the offeror’s employees to telecom-
mute; or 
(2) reduce the scoring of an offer on the basis of 
the inclusion in the offer of a plan of the offeror to
417
permit the offeror’s employees to telecommute, unless 
the contracting officer concerned first—
(A) determines that the requirements of the 
agency, including the security requirements of 
the agency, cannot be met if the telecommuting 
is permitted; and 
(B) documents in writing the basis for that 
determination. 
(c) GAO REPORT.—Not later than one year after the 
date on which the regulation required by subsection (a) is 
published in the Federal Register, the Comptroller General 
shall submit to Congress—
(1) an evaluation of—
(A) the conformance of the regulations with 
law; and 
(B) the compliance by executive agencies 
with the regulations; and 
(2) any recommendations that the Comptroller 
General considers appropriate. 
(d) DEFINITION.—In this section, the term ‘‘executive 
agency’’ has the meaning given that term in section 4 of 
the Office of Federal Procurement Policy Act (41 U.S.C. 
403).
418
Subtitle C—Contract Incentives 
SEC. 1431. INCENTIVES FOR CONTRACT EFFICIENCY. 
(a) INCENTIVES FOR CONTRACT EFFICIENCY.—The Of-
fice of Federal Procurement Policy Act (41 U.S.C. 403 et 
seq.) is amended by adding at the end the following new 
section: 
‘‘SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF 
SERVICES CONTRACTS. 
‘‘(a) OPTIONS FOR SERVICES CONTRACTS.—An option 
included in a contract for services to extend the contract 
by one or more periods may provide that it be exercised 
on the basis of exceptional performance by the contractor. 
A contract that contains such an option provision shall in-
clude performance standards for measuring performance 
under the contract, and to the maximum extent practicable 
be performance-based. Such option provision shall only be 
exercised in accordance with applicable provisions of law 
or regulation that set forth restrictions on the duration of 
the contract containing the option. 
‘‘(b) DEFINITION OF PERFORMANCE-BASED.—In this 
section, the term ‘performance-based’, with respect to a con-
tract, task order, or contracting, means that the contract, 
task order, or contracting, respectively, includes the use of 
performance work statements that set forth contract require-
419
ments in clear, specific, and objective terms with measur-
able outcomes.’’. 
(b) CLERICAL
AND TECHNICAL AMENDMENTS.—(1) 
The table of contents in section 1(b) of such Act is amended 
by striking the last item and inserting the following:
‘‘Sec. 40. Protection of constitutional rights of contractors. 
‘‘Sec. 41. Incentives for efficient performance of services contracts.’’.
(2) The section before section 41 of such Act (as added 
by subsection (a)) is redesignated as section 40. 
Subtitle D—Acquisitions of 
Commercial Items 
SEC. 1441. ADDITIONAL INCENTIVE FOR USE OF PERFORM-
ANCE-BASED CONTRACTING FOR SERVICES.
(a) OTHER CONTRACTS.—Section 41 of the Office of 
Federal Procurement Policy Act, as added by section 1431, 
is amended—
(1) by redesignating subsection (b) as subsection 
(c); and 
(2) by inserting after subsection (a) the following 
new subsection: 
‘‘(b) INCENTIVE FOR USE OF PERFORMANCE-BASED 
SERVICES CONTRACTS.—(1) A performance-based contract 
for the procurement of services entered into by an executive 
agency or a performance-based task order for services issued 
by an executive agency may be treated as a contract for 
the procurement of commercial items if—
420
‘‘(A) the contract or task order sets forth specifi-
cally each task to be performed and, for each task—
‘‘(i) defines the task in measurable, mission-
related terms; and 
‘‘(ii) identifies the specific end products or 
output to be achieved; and 
‘‘(B) the source of the services provides similar 
services to the general public under terms and condi-
tions similar to those offered to the Federal Govern-
ment. 
‘‘(2) The regulations implementing this subsection 
shall require agencies to collect and maintain reliable data 
sufficient to identify the contracts or task orders treated as 
contracts for commercial items using the authority of this 
subsection. The data may be collected using the Federal Pro-
curement Data System or other reporting mechanism.
‘‘(3) Not later than two years after the date of the en-
actment of this subsection, the Director of the Office of Man-
agement and Budget shall prepare and submit to the Com-
mittees on Governmental Affairs and on Armed Services of 
the Senate and the Committees on Government Reform and 
on Armed Services of the House of Representatives a report 
on the contracts or task orders treated as contracts for com-
mercial items using the authority of this subsection. The
421
report shall include data on the use of such authority both 
government-wide and for each department and agency. 
‘‘(4) The authority under this subsection shall expire 
10 years after the date of the enactment of this subsection.’’. 
(b) CENTER
OF
EXCELLENCE
IN
SERVICE
CON-
TRACTING.—Not later than 180 days after the date of the 
enactment of this Act, the Administrator for Federal Pro-
curement Policy shall establish a center of excellence in con-
tracting for services. The center of excellence shall assist the 
acquisition community by identifying, and serving as a 
clearinghouse for, best practices in contracting for services 
in the public and private sectors. 
(c) REPEAL OF SUPERSEDED PROVISION.—Subsection 
(b) of section 821 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–218) is repealed. 
SEC. 1442. AUTHORIZATION OF ADDITIONAL COMMERCIAL 
CONTRACT TYPES. 
Section 8002(d) of the Federal Acquisition Stream-
lining Act of 1994 (Public Law 103–355; 108 Stat. 3387; 
41 U.S.C. 264 note) is amended—
(1) in paragraph (1), by striking ‘‘and’’; 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; and’’; and
422
(3) by adding at the end the following new para-
graph: 
‘‘(3) authority for use of a time and materials 
contract or a labor-hour contract for the procurement 
of commercial services that are commonly sold to the 
general public through such contracts.’’
SEC. 1443. CLARIFICATION OF COMMERCIAL SERVICES DEF-
INITION. 
Subparagraph (F) of section 4(12) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 403(12)(F)) is 
amended—
(1) by striking ‘‘catalog or’’; and 
(2) by inserting ‘‘or specific outcomes to be 
achieved’’ after ‘‘performed’’.
SEC. 1444. DESIGNATION OF COMMERCIAL BUSINESS ENTI-
TIES. 
(a) IN GENERAL.—Section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403), as amended by 
section 1411, is further amended—
(1) by adding at the end of paragraph (12) the 
following new subparagraph: 
‘‘(I) Items or services produced or provided 
by a commercial entity.’’; and 
(2) by adding at the end the following new para-
graph:
423
‘‘(17) The term ‘commercial entity’ means any 
enterprise whose primary customers are other than 
the Federal Government. In order to qualify as a 
commercial entity, at least 90 percent (in dollars) of 
the sales of the enterprise over the past three business 
years must have been made to private sector enti-
ties.’’. 
(b) COLLECTION
OF
DATA.—Regulations imple-
menting the amendments made by subsection (a) shall re-
quire agencies to collect and maintain reliable data suffi-
cient to identify the contracts entered into or task orders 
awarded for items or services produced or provided by a 
commercial entity. The data may be collected using the Fed-
eral Procurement Data System or other reporting mecha-
nism. 
(c) OMB REPORT.—Not later than two years after the 
date of the enactment of this subsection, the Director of the 
Office of Management and Budget shall prepare and submit 
to the Committees on Governmental Affairs and on Armed 
Services of the Senate and the Committees on Government 
Reform and on Armed Services of the House of Representa-
tives a report on the contracts entered into or task orders 
awarded for items or services produced or provided by a 
commercial entity. The report shall include data on the use
424
of such authority both government-wide and for each de-
partment and agency. 
(d) COMPTROLLER GENERAL REVIEW.—The Comp-
troller General shall review the implementation of the 
amendments made by subsection (a) to evaluate the effec-
tiveness of such implementation in increasing the avail-
ability of items and services to the Federal Government at 
fair and reasonable prices.
Subtitle E—Other Matters 
SEC. 1451. AUTHORITY TO ENTER INTO CERTAIN PROCURE-
MENT-RELATED 
TRANSACTIONS 
AND 
TO 
CARRY OUT CERTAIN PROTOTYPE PROJECTS. 
Title III of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 251 et seq.) is amended 
by adding at the end the following new section:
‘‘SEC. 318. AUTHORITY TO ENTER INTO CERTAIN TRANS-
ACTIONS FOR DEFENSE AGAINST OR RECOV-
ERY FROM TERRORISM OR NUCLEAR, BIO-
LOGICAL, CHEMICAL, OR RADIOLOGICAL AT-
TACK. 
‘‘(a) AUTHORITY.—
‘‘(1) IN
GENERAL.—The head of an executive 
agency who engages in basic research, applied re-
search, advanced research, and development projects 
that—
425
‘‘(A) are necessary to the responsibilities of 
such official’s executive agency in the field of re-
search and development, and 
‘‘(B) have the potential to facilitate defense 
against or recovery from terrorism or nuclear, 
biological, chemical, or radiological attack, 
may exercise the same authority (subject to the same 
restrictions and conditions) with respect to such re-
search and projects as the Secretary of Defense may 
exercise under section 2371 of title 10, United States 
Code, except for subsections (b) and (f) of such section 
2371. 
‘‘(2) PROTOTYPE PROJECTS.—The head of an ex-
ecutive agency may, under the authority of paragraph 
(1), carry out prototype projects that meet the re-
quirements of subparagraphs (A) and (B) of para-
graph (1) in accordance with the requirements and 
conditions provided for carrying out prototype 
projects under section 845 of the National Defense Au-
thorization Act for Fiscal Year 1994 (Public Law 
103–160; 10 U.S.C. 2371 note). In applying the re-
quirements and conditions of that section 845—
‘‘(A) subsection (c) of that section shall 
apply with respect to prototype projects carried 
out under this paragraph; and
426
‘‘(B) the Director of the Office of Manage-
ment and Budget shall perform the functions of 
the Secretary of Defense under subsection (d) of 
that section. 
‘‘(3) APPLICABILITY
TO
SELECTED
EXECUTIVE 
AGENCIES.—
‘‘(A) OMB AUTHORIZATION
REQUIRED.—
The head of an executive agency may exercise 
authority under this subsection only if author-
ized by the Director of the Office of Management 
and Budget to do so. 
‘‘(B) RELATIONSHIP TO AUTHORITY OF DE-
PARTMENT OF HOMELAND SECURITY.—The au-
thority under this subsection shall not apply to 
the Secretary of Homeland Security while sec-
tion 831 of the Homeland Security Act of 2002 
(Public Law 107-296; 116 Stat. 2224) is in ef-
fect. 
‘‘(b) ANNUAL REPORT.—The annual report of the head 
of an executive agency that is required under subsection (h) 
of section 2371 of title 10, United States Code, as applied 
to the head of the executive agency by subsection (a), shall 
be submitted to the Committee on Governmental Affairs of 
the Senate and the Committee on Government Reform of 
the House of Representatives.
427
‘‘(c) REGULATIONS.—The Director of the Office of 
Management and Budget shall prescribe regulations to 
carry out this section.’’. 
SEC. 1452. AUTHORITY TO MAKE INFLATION ADJUSTMENTS 
TO SIMPLIFIED ACQUISITION THRESHOLD. 
Section 4(11) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 403(11)) is amended by inserting before 
the period at the end the following: ‘‘, except that such 
amount may be adjusted by the Administrator every five 
years to the amount equal to $100,000 in constant fiscal 
year 2003 dollars (rounded to the nearest $10,000)’’. 
SEC. 1453. TECHNICAL CORRECTIONS RELATED TO DUPLI-
CATIVE AMENDMENTS. 
(a) REPEAL OF SUPERSEDED SUBCHAPTER AND RE-
LATED CONFORMING AMENDMENTS.—(1) Subchapter II of 
chapter 35 of title 44, United States Code, is repealed. 
(2) Subchapter III of such chapter is redesignated as 
subchapter II. 
(3) Section 3549 of title 44, United States Code, is 
amended by striking the sentence beginning with ‘‘While 
this subchapter’’. 
(4) The table of sections at the beginning of chapter 
35 of title 44, United States Code, is amended—
(A) by striking the items relating to sections 
3531 through 3538; and
428
(B) by striking the heading ‘‘SUBCHAPTER 
III—INFORMATION SECURITY’’. 
(5) Section 2224a of title 10, United States Code, is 
repealed, and the table of sections at the beginning of chap-
ter 131 of such title is amended by striking the item relating 
to such section. 
(b) CONFORMING AMENDMENTS RELATED TO REPEALS 
OF
SHARE-IN-SAVINGS
AND
SOLUTIONS-BASED
CON-
TRACTING PILOT PROGRAMS.—(1) Chapter 115 of title 40, 
United States Code, is repealed. 
(2) The table of chapters at the beginning of subtitle 
III of such title is amended by striking the item relating 
to chapter 115. 
(c) AMENDMENTS MADE
BY E-GOVERNMENT ACT 
MADE APPLICABLE.—The following provisions of law shall 
read as if the amendments made by title X of the Homeland 
Security Act of 2002 (Public Law 107–296) to such provi-
sions did not take effect: 
(1) Section 2224 of title 10, United States Code. 
(2) Sections 20 and 21 of the National Institute 
of Standards and Technology Act (15 U.S.C. 278g-3 
and 278g-4). 
(3) Sections 11331 and 11332 of title 40, United 
States Code.
429
(4) Subtitle G of title X of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 
2001 (Public Law 106–398; 44 U.S.C. 3531 note). 
(5) Sections 3504(g), 3505, and 3506(g) of title 
44, United States Code. 
(d) CORRECTION
OF CROSS REFERENCE.—Section 
2224(c) of title 10, United States Code, as amended by sec-
tion 301(c)(1)(B)(iii) of the E-Government Act of 2002 
(Public Law 107–347; 116 Stat. 2955), is amended by strik-
ing ‘‘subchapter III’’ and inserting ‘‘subchapter II’’.
SEC. 1454. PROHIBITION ON USE OF QUOTAS. 
(a) IN GENERAL.—After the date of enactment of this 
Act, the Office of Management and Budget may not estab-
lish, apply, or enforce any numerical goal, target, or quota 
for subjecting the employees of a department or agency of 
the Government to public-private competitions or con-
verting such employees or the work performed by such em-
ployees to contractor performance under Office of Manage-
ment and Budget Circular A-76 or any other administra-
tive regulation, directive, or policy unless the goal, target, 
or quota is based on considered research and sound analysis 
of past activities and is consistent with the stated mission 
of the department or agency. 
(b) LIMITATIONS.—Subsection (a) shall not—
430
(1) otherwise affect the implementation or en-
forcement of the Government Performance and Results 
Act of 1993 (107 Stat. 285); or 
(2) prevent any agency of the Executive branch 
from subjecting work performed by Federal employees 
or private contractors to public-private competition 
or conversions. 
SEC. 1455. APPLICABILITY OF CERTAIN PROVISIONS TO 
SOLE SOURCE CONTRACTS FOR GOODS AND 
SERVICES TREATED AS COMMERCIAL ITEMS. 
(a) IN GENERAL.—Notwithstanding the amendments 
made by subtitle D of this Act, no contract for the procure-
ment of services or goods awarded on a sole source basis 
shall be exempt from—
(1) cost accounting standards promulgated pur-
suant to section 26 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 422); and 
(2) cost or pricing data requirements (commonly 
referred to as truth in negotiating) under section 
2306a of title 10, United States Code, and section 
304A of title III of the Federal Property and Admin-
istrative Services Act of 1949 (41 U.S.C. 254b). 
(b) LIMITATION.—This section shall not apply to any 
contract in an amount not greater than $15,000,000.
431
SEC. 1456. PUBLIC DISCLOSURE OF NONCOMPETITIVE CON-
TRACTING FOR THE RECONSTRUCTION OF IN-
FRASTRUCTURE IN IRAQ. 
(a) DISCLOSURE REQUIRED.—
(1) PUBLICATION AND PUBLIC AVAILABILITY.—
The head of an executive agency of the United States 
that enters into a contract for the repair, mainte-
nance, or construction of infrastructure in Iraq with-
out full and open competition shall publish in the 
Federal Register or Commerce Business Daily and 
otherwise make available to the public, not later than 
30 days after the date on which the contract is en-
tered into, the following information: 
(A) The amount of the contract. 
(B) A brief description of the scope of the 
contract. 
(C) A discussion of how the executive agen-
cy identified, and solicited offers from, potential 
contractors to perform the contract, together with 
a list of the potential contractors that were 
issued solicitations for the offers. 
(D) The justification and approval docu-
ments on which was based the determination to 
use procedures other than procedures that pro-
vide for full and open competition.
432
(2) INAPPLICABILITY TO CONTRACTS AFTER FIS-
CAL YEAR 2013.—Paragraph (1) does not apply to a 
contract entered into after September 30, 2013. 
(b) CLASSIFIED INFORMATION.—
(1) AUTHORITY TO WITHHOLD.—The head of an 
executive agency may—
(A) withhold from publication and disclo-
sure under subsection (a) any document that is 
classified for restricted access in accordance with 
an Executive order in the interest of national de-
fense or foreign policy; and 
(B) redact any part so classified that is in 
a document not so classified before publication 
and disclosure of the document under subsection 
(a). 
(2) AVAILABILITY TO CONGRESS.—In any case 
in which the head of an executive agency withholds 
information under paragraph (1), the head of such 
executive agency shall make available an unredacted 
version of the document containing that information 
to the chairman and ranking member of each of the 
following committees of Congress: 
(A) The Committee on Governmental Af-
fairs of the Senate and the Committee on Gov-
ernment Reform of the House of Representatives.
433
(B) The Committees on Appropriations of 
the Senate and House of Representatives. 
(C) Each committee that the head of the ex-
ecutive agency determines has legislative juris-
diction for the operations of such department or 
agency to which the information relates. 
(c) FISCAL YEAR 2003 CONTRACTS.—This section shall 
apply to contracts entered into on or after October 1, 2002, 
except that, in the case of a contract entered into before 
the date of the enactment of this Act, subsection (a) shall 
be applied as if the contract had been entered into on the 
date of the enactment of this Act. 
(d) RELATIONSHIP TO OTHER DISCLOSURE LAWS.—
Nothing in this section shall be construed as affecting obli-
gations to disclose United States Government information 
under any other provision of law. 
(e) DEFINITIONS.—In this section, the terms ‘‘executive 
agency’’ and ‘‘full and open competition’’ have the mean-
ings given such terms in section 4 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403).
434
DIVISION 
B—MILITARY 
CON-
STRUCTION 
AUTHORIZA-
TIONS 
SEC. 2001. SHORT TITLE. 
This division may be cited as the ‘‘Military Construc-
tion Authorization Act for Fiscal Year 2004’’.
TITLE XXI—ARMY
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2104(a)(1), the Secretary of the Army may ac-
quire real property and carry out military construction 
projects for the installations and locations inside the United 
States, and in the amounts, set forth in the following table:
Army: Inside the United States 
State 
Installation or location 
Amount 
Alabama .................................
Redstone Arsenal ..............................
$5,500,000
Alaska .....................................
Fort Wainwright ..............................
$138,800,000
California ...............................
Fort Irwin .........................................
$3,350,000
Colorado .................................
Fort Carson .......................................
$2,150,000
Georgia ...................................
Fort Benning ....................................
$34,500,000
Fort Stewart/Hunter Army Air 
Field ..............................................
$138,550,000
Hawaii ...................................
Helemano Military Reservation ......
$1,400,000
Schofield Barracks ...........................
$128,100,000
Kansas ....................................
Fort Leavenworth .............................
$115,000,000
Fort Riley .........................................
$40,000,000
Kentucky ................................
Fort Knox .........................................
$5,500,000
Louisiana ...............................
Fort Polk ...........................................
$72,000,000
Maryland ...............................
Fort Meade ........................................
$9,600,000
Massachusetts .........................
Soldier Systems Center, Natick .......
$5,500,000
Missouri .................................
Fort Leonard Wood ..........................
$5,900,000
New Jersey .............................
Naval 
Air 
Engineering 
Center, 
Lakehurst ......................................
$2,250,000
Picatinny Arsenal ............................
$11,800,000
New York ................................
Fort Drum ........................................
$139,300,000
North Carolina ......................
Fort Bragg ........................................
$163,400,000
Oklahoma ...............................
Fort Sill ............................................
$5,500,000
Texas ......................................
Fort Bliss ..........................................
$5,400,000
435
Army: Inside the United States—Continued
State 
Installation or location 
Amount 
Fort Hood .........................................
$56,700,000
Virginia ..................................
Fort Belvoir ......................................
$7,000,000
Fort Lee .............................................
$3,850,000
Fort Myer ..........................................
$9,000,000
Washington ............................
Fort Lewis .........................................
$3,900,000
Total ..........................................
$1,108,500,000 
(b) OUTSIDE THE UNITED STATES.—Subject to sub-
section (c), using amounts appropriated pursuant to the 
authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry 
out military construction projects for the installations and 
locations outside the United States, and in the amounts, 
set forth in the following table:
Army: Outside the United States 
Country 
Installation or location 
Amount 
Germany ..................................
Grafenwoehr ........................................
$76,000,000
Heidelberg ...........................................
$17,000,000
Hohenfels .............................................
$13,200,000
Vilseck ..................................................
$31,000,000
Italy .........................................
Aviano Air Base .................................
$28,500,000
Livorno ................................................
$22,000,000
Korea ........................................
Camp Humphreys ..............................
$191,150,000
Kwajalein .................................
Kwajalein ............................................
$9,400,000
Total ....................................................
$388,250,000 
(c) CONDITION ON PROJECTS AUTHORIZATION.—The 
authority of the Secretary of the Army to proceed with the 
projects at Camp Humphreys, Korea, referred to in the 
table in subsection (b), and to obligate amounts appro-
priated pursuant to the authorization of appropriations in 
section 2104(a)(2) in connection with such project, is sub-
ject to the condition that the Secretary submit to the con-
gressional defense committees written notice in advance that
436
the United States and the Republic of Korea have entered 
into an agreement to ensure the availability and use of land 
sufficient for such projects. 
SEC. 2102. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2104(a)(5)(A), the Secretary of the 
Army may construct or acquire family housing units (in-
cluding land acquisition and supporting facilities) at the 
installations, for the purposes, and in the amounts set forth 
in the following table:
Army: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
Alaska ..............................
Fort Wainwright ..................
140 Units .....
$64,000,000
Arizona ............................
Fort Huachuca .....................
220 Units .....
$41,000,000
Kansas .............................
Fort Riley .............................
62 Units .......
$16,700,000
Kentucky ..........................
Fort Knox .............................
178 Units .....
$41,000,000
New Mexico ......................
White Sands Missile Range 
58 Units .......
$14,600,000
Oklahoma .........................
Fort Sill ................................
120 Units .....
$25,373,000
Virginia ...........................
Fort Lee ................................
90 Units .......
$18,000,000
Total: ...
$220,673,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may carry 
out architectural and engineering services and construction 
design activities with respect to the construction or im-
provement of family housing units in an amount not to 
exceed $34,488,000.
437
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the author-
ization of appropriations in section 2104(a)(5)(A), the Sec-
retary of the Army may improve existing military family 
housing units in an amount not to exceed $156,030,000. 
SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY. 
(a) IN GENERAL.—Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2003, for military construction, land acquisition, and mili-
tary family housing functions of the Department of the 
Army in the total amount of $3,056,697,000, as follows: 
(1) For military construction projects inside the 
United 
States 
authorized 
by 
section 
2101(a), 
$902,000,000. 
(2) For military construction projects outside the 
United 
States 
authorized 
by 
section 
2101(b), 
$359,350,000. 
(3) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $22,550,000. 
(4) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $128,580,000. 
(5) For military family housing functions:
438
(A) For construction and acquisition, plan-
ning and design, and improvement of military 
family housing and facilities, $409,191,000. 
(B) For support of military family housing 
(including the functions described in section 
2833 
of 
title 
10, 
United 
States 
Code), 
$1,043,026,000. 
(6) For the construction of phase 3 of a barracks 
complex, D Street, at Fort Richardson, Alaska, au-
thorized by section 2101(a) of the Military Construc-
tion Authorization Act for Fiscal Year 2002 (division 
B of Public Law 107–107; 115 Stat. 1280), as 
amended by section 2105 of this Act, $33,000,000. 
(7) For the construction of phase 3 of a barracks 
complex, 17th and B Streets, at Fort Lewis, Wash-
ington, authorized by section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107–107; 115 Stat. 1280), 
$48,000,000. 
(8) For the construction of phase 2 of a barracks 
complex, Capron Road, at Schofield Barracks, Ha-
waii, authorized by section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2003 
(division B of Public Law 107–314; 116 Stat. 2681), 
$49,000,000.
439
(9) For the construction of phase 2 of a barracks 
complex, Range Road, at Fort Campbell, Kentucky, 
authorized by section 2101(a) of the Military Con-
struction Authorization Act for Fiscal Year 2003 (di-
vision B of Public Law 107–314; 116 Stat. 2681), 
$49,000,000. 
(10) For the construction of phase 2 of a consoli-
dated maintenance complex at Fort Sill, Oklahoma, 
authorized by section 2101(a) of the Military Con-
struction Authorization Act for Fiscal Year 2003 (di-
vision B of Public Law 107–314; 116 Stat. 2681), 
$13,000,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and 
any other cost variation authorized by law, the total cost 
of all projects carried out under section 2101 of this Act 
may not exceed the sum of the following: 
(1) The total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection 
(a). 
(2) $32,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
barracks, Fort Stewart/Hunter Army Airfield, Geor-
gia).
440
(3) $87,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of the 
Lewis and Clark Instructional Facility, Fort Leaven-
worth, Kansas). 
(4) $43,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
barracks complex, Wheeler Army Airfield, Fort Drum, 
New York). 
(5) $50,000,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
barracks complex, Bastogne Drive, Fort Bragg, North 
Carolina). 
(6) $18,900,000 (the balance of the amount au-
thorized under section 2101(b) for construction of a 
barracks complex, Vilseck, Germany).
SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT 
CERTAIN FISCAL YEAR 2002 PROJECTS. 
(a) MODIFICATION.—The table in section 2101(a) of 
the Military Construction Authorization Act for Fiscal Year 
2002 (division B of Public Law 107-107; 115 Stat. 1281), 
as amended by section 2105 of the Military Construction 
Authorization Act for Fiscal Year 2003 (division B of Pub-
lic Law 107–314; 116 Stat. 2689), is further amended—
441
(1) in the item relating to Fort Richardson, 
Alaska, by striking ‘‘$115,000,000’’ in the amount 
column and inserting ‘‘$117,000,000’’; and 
(2) by striking the amount identified as the total 
in 
the 
amount 
column 
and 
inserting 
‘‘$1,364,750,000’’. 
(b) CONFORMING AMENDMENT.—Section 2104(b)(2) of 
that Act (115 Stat. 1284) is amended by striking 
‘‘$52,000,000’’ and inserting ‘‘$54,000,000’’.
TITLE XXII—NAVY 
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2204(a)(1), the Secretary of the Navy may ac-
quire real property and carry out military construction 
projects for the installations and locations inside the United 
States, and in the amounts, set forth in the following table:
Navy: Inside the United States 
State 
Installation or location 
Amount 
Arizona .............................
Marine Corps Air Station, Yuma .............
$22,230,000
California .........................
Marine Corps Air-Ground Task Force 
Training Center, Twentynine Palms ....
$42,090,000
Marine Corps Air Station, Miramar ........
$7,640,000
Marine Corps Base, Camp Pendleton .......
$73,580,000
Naval Air Facility, San Clemente Island 
$18,940,000
Naval Air Station, Lemoore ......................
$34,510,000
Naval Air Station, North Island ...............
$49,240,000
Naval Air Warfare Center, China Lake ...
$12,230,000
Naval Air Warfare Center, Point Mugu, 
San Nicholas Island ...............................
$6,150,000
Naval Postgraduate School, Monterey .......
$42,560,000
Naval Station, San Diego ..........................
$49,710,000
Connecticut ......................
Naval Submarine Base, New London .......
$3,120,000
District of Columbia .......
Marine Corps Barracks ..............................
$1,550,000
Florida ..............................
Blount Island (Jacksonville) ......................
$115,711,000
442
Navy: Inside the United States—Continued
State 
Installation or location 
Amount 
Naval Air Station, Jacksonville ................
$9,190,000
Naval Air Station, Whiting Field, Milton 
$4,830,000
Naval Surface Warfare Center, Coastal 
Systems Station, Panama City .............
$9,550,000
Georgia .............................
Strategic 
Weapons 
Facility 
Atlantic, 
Kings Bay ...............................................
$11,510,000
Hawaii .............................
Fleet and Industrial Supply Center, 
Pearl Harbor ...........................................
$32,180,000
Naval Magazine, Lualualei ........................
$6,320,000
Naval Shipyard, Pearl Harbor .................
$7,010,000
Illinois ..............................
Naval Training Center, Great Lakes ........
$137,120,000
Indiana .............................
Naval Surface Warfare Center, Crane ......
$11,400,000
Maryland ..........................
Naval Air Warfare Center, Patuxent 
River ........................................................
$28,270,000
Naval Surface Warfare Center, Indian 
Head ........................................................
$14,850,000
Mississippi .......................
Naval Air Station, Meridian .....................
$4,570,000
Naval Station, Pascagoula .........................
$6,100,000
Nevada ..............................
Naval Air Station, Fallon .........................
$4,700,000
New Jersey .......................
Naval Air Warfare Center, Lakehurst ......
$20,681,000
Naval Weapons Station, Earle ..................
$123,720,000
North Carolina ................
Marine Corps Air Station, New River .....
$6,240,000
Marine Corps Base, Camp Lejeune ...........
$29,450,000
Rhode Island ....................
Naval Station, Newport .............................
$16,140,000
Naval Undersea Warfare Center, Newport 
$10,890,000
South Carolina ................
Naval Weapons Station, Charleston ..........
$2,350,000
Texas .................................
Naval Air Station, Corpus Christi ...........
$5,400,000
Virginia ............................
Henderson Hall, Arlington ........................
$1,970,000
Marine Corps Combat Development Com-
mand, Quantico ......................................
$3,700,000
Naval Air Station, Oceana ........................
$10,000,000
Naval Amphibious Base, Little Creek .......
$3,810,000
Naval Space Command Center, Dahlgren 
$24,020,000
Naval Station, Norfolk ...............................
$182,240,000
Norfolk Naval Shipyard, Portsmouth .......
$17,770,000
Washington ......................
Naval Air Station, Whidbey Island ..........
$4,350,000
Naval Magazine, Indian Island ................
$2,240,000
Naval Shipyard, Puget Sound ..................
$12,120,000
Naval Submarine Base, Bangor ................
$33,820,000
Strategic Weapons Facility Pacific, Ban-
gor ............................................................
$6,530,000
Various Locations ............
Various Locations, CONUS .......................
$56,360,000
Total ....................................................
$1,340,662,000
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2204(a)(2), the Secretary of the Navy may 
acquire real property and carry out military construction 
projects for the locations outside the United States, and in 
the amounts, set forth in the following table:
443
Navy: Outside the United States 
Country 
Installation or location 
Amount 
Bahrain ............................
Naval Support Activity, Bahrain ...............
$18,030,000
Guam ................................
Commander, United States Naval Forces, 
Marianas ...................................................
$1,700,000
Italy ..................................
Naval Air Station, Sigonella .......................
$48,749,000
Naval Support Activity, La Maddalena .....
$39,020,000
United Kingdom ..............
Joint Maritime Facility, St. Mawgan ........
$7,070,000
Total ......................................................
$114,569,000
SEC. 2202. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2204(a)(5)(A), the Secretary of the 
Navy may construct or acquire family housing units (in-
cluding land acquisition and supporting facilities) at the 
installations, for the purposes, and in the amounts set forth 
in the following table:
Navy: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
California ........................
Naval Air Station, Lemoore 
187 Units .....
$41,585,000
Florida .............................
Naval Air Station, Pensa-
cola ....................................
25 Units .......
$4,447,000
North Carolina ................
Marine Corps Air Station, 
Cherry Point ....................
339 Units .....
42,803,000
Marine Corps Base, Camp 
Lejeune .............................
519 Units .....
$68,531,000
Total ....
$157,366,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriation in 
section 2204(a)(5)(A), the Secretary of the Navy may carry 
out architectural and engineering services and construction 
design activities with respect to the construction or im-
provement of military family housing units in an amount 
not to exceed $8,381,000.
444
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the author-
ization of appropriations in section 2204(a)(5)(A), the Sec-
retary of the Navy may improve existing military family 
housing units in an amount not to exceed $20,446,000. 
SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY. 
(a) IN GENERAL.—Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2003, for military construction, land acquisition, and mili-
tary family housing functions of the Department of the 
Navy in the total amount of $2,288,917,000, as follows: 
(1) For military construction projects inside the 
United 
States 
authorized 
by 
section 
2201(a), 
$1,005,882,000. 
(2) For military construction projects outside the 
United 
States 
authorized 
by 
section 
2201(b), 
$114,569,000. 
(3) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $13,624,000. 
(4) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $71,141,000. 
(5) For military family housing functions:
445
(A) For construction and acquisition, plan-
ning and design, and improvement of military 
family housing and facilities, $184,193,000. 
(B) For support of military family housing 
(including functions described in section 2833 of 
title 10, United States Code), $852,778,000. 
(6) For construction of a bachelors enlisted quar-
ters shipboard ashore at Naval Shipyard Norfolk, Vir-
ginia, authorized by section 2201(a) of the Military 
Construction Authorization Act for Fiscal Year 2003 
(division B of Public Law 107-314; 116 Stat. 2687), 
$46,730,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and 
any other cost variation authorized by law, the total cost 
of all projects carried out under section 2201 of this Act 
may not exceed the sum of the following: 
(1) The total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection 
(a). 
(2) $25,690,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
tertiary sewage treatment facility, Marine Corp Base, 
Camp Pendleton, California).
446
(3) $58,190,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
battle station training facility, Naval Training Cen-
ter, Great Lakes, Illinois). 
(4) $96,980,000 (the balance of the amount au-
thorized under section 2101(a) for construction of a 
general purpose berthing pier, Naval Weapons Sta-
tion Earle, New Jersey). 
(5) $118,170,000 (the balance of the amount au-
thorized under section 2101(a) for construction of the 
Pier 11 replacement, Naval Station, Norfolk, Vir-
ginia). 
(6) $28,750,000 (the balance of the amount au-
thorized under section 2101(a) for construction of out-
lying landing field facilities, various locations in the 
continental United States).
TITLE XXIII—AIR FORCE
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND 
LAND ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2304(a)(1), the Secretary of the Air Force may 
acquire real property and carry out military construction 
projects for the installations and locations inside the United 
States, and in the amounts, set forth in the following table:
447
Air Force: Inside the United States 
State 
Installation or location 
Amount 
Alabama ....................................
Maxwell Air Force Base ......................
$26,000,000
Alaska .......................................
Eielson Air Force Base ........................
$33,261,000
Elmendorf Air Force Base ...................
$2,000,000
Arizona .....................................
Davis-Monthan Air Force Base ..........
$10,062,000
Arkansas ...................................
Little Rock Air Force Base ..................
$7,445,000
California .................................
Beale Air Force Base ...........................
$22,750,000
Edwards Air Force Base .....................
$26,744,000
Vandenberg Air Force Base .................
$16,500,000
Colorado ....................................
Buckley Air Force Base .......................
$7,019,000
District of Columbia ................
Bolling Air Force Base ........................
$9,300,000
Florida ......................................
Hurlburt Field ......................................
$27,200,000
Tyndall Air Force Base .......................
$20,720,000
Georgia ......................................
Robins Air Force Base .........................
$37,164,000
Hawaii ......................................
Hickam Air Force Base .......................
$73,296,000
Idaho .........................................
Mountain Home Air Force Base .........
$5,445,000
Illinois .......................................
Scott Air Force Base ............................
$1,900,000
Mississippi ................................
Columbus Air Force Base ....................
$2,200,000
Keesler Air Force Base .........................
$2,900,000
Missouri ....................................
Whiteman Air Force Base ...................
$11,600,000
New Jersey ................................
McGuire Air Force Base ......................
$11,861,000
New Mexico ...............................
Kirtland Air Force Base ......................
$11,247,000
Tularosa Radar Test Site ....................
$3,600,000
North Carolina .........................
Pope Air Force Base ............................
$24,499,000
Seymour Johnson Air Force Base ......
$23,022,000
North Dakota ............................
Minot Air Force Base ..........................
$3,190,000
Ohio ...........................................
Wright-Patterson Air Force Base .......
$21,100,000
Oklahoma ..................................
Altus Air Force Base ............................
$1,167,000
Tinker Air Force Base .........................
$19,444,000
South Carolina .........................
Charleston Air Force Base ...................
$9,042,000
Shaw Air Force Base ...........................
$8,500,000
Texas .........................................
Goodfellow Air Force Base ..................
$20,335,000
Lackland Air Force Base .....................
$57,360,000
Laughlin Air Force Base .....................
$12,400,000
Sheppard Air Force Base ....................
$38,167,000
Utah ..........................................
Hill Air Force Base .............................
$15,848,000
Virginia ....................................
Langley Air Force Base .......................
$25,474,000
Washington ...............................
McChord Air Force Base .....................
$19,000,000
Total ......................................................
$668,762,000 
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2304(a)(2), the Secretary of the Air Force 
may acquire real property and carry out military construc-
tion projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following 
table:
448
Air Force: Outside the United States 
Country 
Installation or location 
Amount 
Germany ...................................
Ramstein Air Base ...............................
$41,866,000
Spangdahlem Air Base ........................
$5,411,000
Italy ..........................................
Aviano Air Base ...................................
$14,025,000
Korea .........................................
Kunsan Air Base ..................................
$7,059,000
Osan Air Base ......................................
$16,638,000
Portugal ....................................
Lajes Field, Azores ...............................
$4,086,000
Turkey .......................................
Incirlik Air Base ..................................
$3,262,000
United Kingdom ......................
Royal Air Force, Lakenheath ..............
$42,487,000
Royal Air Force, Mildenhall ...............
$10,558,000
Wake Island ..............................
Wake Island ..........................................
$24,000,000
Total ..............................................
$169,392,000
(c) UNSPECIFIED WORLDWIDE.—Using amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2304(a)(3), the Secretary of the Air Force may 
acquire real property and carry out military construction 
projects for the installation and location, and in the 
amount, set forth in the following table:
Air Force: Unspecified Worldwide 
Location 
Installation or location 
Amount 
Unspecified Worldwide ............
Classified Location ...............................
$29,501,000
Total ..............................................
$29,501,000
SEC. 2302. FAMILY HOUSING. 
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using 
amounts appropriated pursuant to the authorization of ap-
propriations in section 2304(a)(6)(A), the Secretary of the 
Air Force may construct or acquire family housing units 
(including land acquisition and supporting facilities) at 
the installations, for the purposes, and in the amounts set 
forth in the following table:
449
Air Force: Family Housing 
State or Country 
Installation or location 
Purpose 
Amount 
Arizona ............................
Davis-Monthan Air Force 
Base ..................................
93 Units .......
$19,357,000
California ........................
Travis Air Force Base .........
56 Units .......
$12,723,000
Delaware ..........................
Dover Air Force Base ..........
112 Units .....
$19,601,000
Florida .............................
Eglin Air Force Base ..........
279 Units .....
$32,166,000
Idaho ................................
Mountain Home Air Force 
Base ..................................
186 Units .....
$37,126,000
Maryland .........................
Andrews Air Force Base .....
50 Units .......
$20,233,000
Missouri ...........................
Whiteman Air Force Base ...
100 Units .....
$18,221,000
Montana ...........................
Malmstrom Air Force Base
94 Units .......
$19,368,000
North Carolina ................
Seymour Johnson Air Force 
Base ..................................
138 Units .....
$18,336,000
North Dakota ...................
Grand Forks Air Force Base 
144 Units .....
$29,550,000
Minot Air Force Base ..........
200 Units .....
$41,117,000
South Dakota ..................
Ellsworth Air Force Base ....
75 Units .......
$16,240,000
Texas ................................
Dyess Air Force Base ..........
116 Units .....
$19,973,000
Randolph Air Force Base ...
96 Units .......
$13,754,000
Korea ................................
Osan Air Base ......................
111 Units .....
$44,765,000
Portugal ...........................
Lajes Field, Azores ...............
42 Units .......
$13,428,000
United Kingdom .............
Royal Air Force, 
Lakenheath .......................
89 Units .......
$23,640,000
Total ....
$399,598,000 
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may 
carry out architectural and engineering services and con-
struction design activities with respect to the construction 
or improvement of military family housing units in an 
amount not to exceed $33,488,000. 
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, Unites States Code, 
and using amounts appropriated pursuant to the author-
ization of appropriations in section 2304(a)(6)(A), the Sec-
retary of the Air Force may improve existing military fam-
ily housing units in an amount not to exceed $227,979,000.
450
SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR 
FORCE. 
(a) IN GENERAL.—Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2003, for military construction, land acquisition, and mili-
tary family housing functions of the Department of the Air 
Force in the total amount of $2,477,609,000, as follows: 
(1) For military construction projects inside the 
United 
States 
authorized 
by 
section 
2301(a), 
$660,282,000. 
(2) For military construction projects outside the 
United 
States 
authorized 
by 
section 
2301(b), 
$169,392,000. 
(3) For military construction projects at unspec-
ified worldwide locations authorized by section 
2301(c), $28,981,000. 
(4) For unspecified minor construction projects 
authorized by section 2805 of title 10, United States 
Code, $12,000,000. 
(5) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $115,421,000. 
(6) For military housing functions: 
(A) For construction and acquisition, plan-
ning and design, and improvement of military 
family housing and facilities, $657,065,000.
451
(B) For support of military family housing 
(including functions described in section 2833 of 
title 10, United States Code), $834,468,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and 
any other cost variation authorized by law, the total cost 
of all projects carried out under section 2301 of this Act 
may not exceed the total amount authorized to be appro-
priated under paragraphs (1), (2), and (3) of subsection 
(a).
TITLE XXIV—DEFENSE 
AGENCIES 
SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUC-
TION AND LAND ACQUISITION PROJECTS. 
(a) INSIDE THE UNITED STATES.—Using amounts ap-
propriated pursuant to the authorization of appropriations 
in section 2405(a)(1), the Secretary of Defense may acquire 
real property and carry out military construction projects 
for the installations and locations inside the United States, 
and in the amounts, set forth in the following table:
Defense Agencies: Inside the United States 
Agency 
Installation or location 
Amount 
Defense Education Activity .....
Marine Corps Base, Camp Lejeune, 
North Carolina .................................
$15,259,000
Defense Logistics Agency .........
Defense 
Distribution 
Depot, 
New 
Cumberland, Pennsylvania .............
$27,700,000
Eglin Air Force Base, Florida ............
$4,800,000
Eielson Air Force Base, Alaska ..........
$17,000,000
Hickam Air Force Base, Hawaii ........
$14,100,000
Hurlburt Field, Florida .......................
$4,100,000
452
Defense Agencies: Inside the United States—Continued
Agency 
Installation or location 
Amount 
Offutt Air Force Base, Nebraska .........
$13,400,000
Langley Air Force Base, Virginia ......
$13,000,000
Laughlin Air Force Base, Texas .........
$4,688,000
McChord Air Force Base, Washington 
$8,100,000
Naval Air Station, Kingsville, Texas
$9,200,000
Nellis Air Force Base, Nevada ............
$12,800,000
National Security Agency .......
Fort Meade, Maryland .........................
$1,842,000
Special Operations Command 
Dam Neck, Virginia .............................
$15,281,000
Fort Benning, Georgia .........................
$2,100,000
Fort Bragg, North Carolina ................
$36,300,000
Fort Campbell, Kentucky .....................
$7,800,000
Harrisburg 
International 
Airport, 
Pennsylvania ....................................
$3,000,000
Hurlburt Field, Florida .......................
$6,000,000
MacDill, Air Force Base, Florida .......
$25,500,000
Naval Amphibious Base, Coronado, 
California .........................................
$2,800,000
TRICARE Management Activ-
ity ..........................................
Fort Hood, Texas .................................
$9,400,000
Naval Station, Anacostia, District of 
Columbia ...........................................
$15,714,000
Naval Submarine Base, New London, 
Connecticut .......................................
$6,700,000
United States Air Force Academy, 
Colorado ............................................
$22,100,000
Walter Reed Medical Center, District 
of Columbia ......................................
$9,000,000
Washington Headquarters 
Services .................................
Arlington, Virginia ..............................
$38,086,000
Total ..............................................
$345,770,000
(b) OUTSIDE THE UNITED STATES.—Using amounts 
appropriated pursuant to the authorization of appropria-
tions in section 2405(a)(2), the Secretary of Defense may 
acquire real property and carry out military construction 
projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following 
table:
Defense Agencies: Outside the United States 
Agency 
Installation or location 
Amount 
Defense Education Activity .....
Grafenwoehr, Germany ........................
$36,247,000
Heidelberg, Germany ...........................
$3,086,000
Vilseck, Germany ..................................
$1,773,000
Sigonella, Italy .....................................
$30,234,000
Vicenza, Italy ........................................
$16,374,000
Camp Humphreys, Korea ....................
$31,683,000
Special Operations Command 
Stuttgart, Germany ..............................
$11,400,000
TRICARE Management Activ-
ity ..........................................
Anderson Air Force Base, Guam ........
$26,000,000
453
Defense Agencies: Outside the United States—Continued
Agency 
Installation or location 
Amount 
Grafenwoehr, Germany ........................
$12,585,000
Total ..............................................
$169,382,000
SEC. 2402. FAMILY HOUSING. 
Using amounts appropriated pursuant to the author-
ization of appropriations in section 2405(a)(8)(A), the Sec-
retary of Defense may carry out architectural and engineer-
ing services and construction design activities with respect 
to the construction or improvement of military family hous-
ing units in an amount not to exceed $300,000. 
SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING 
UNITS. 
Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the author-
ization of appropriations in section 2405(a)(8)(A), the Sec-
retary of Defense may improve existing military family 
housing units in an amount not to exceed $50,000. 
SEC. 2404. ENERGY CONSERVATION PROJECTS. 
Using amounts appropriated pursuant to the author-
ization of appropriations in section 2405(a)(6), the Sec-
retary of Defense may carry out energy conservation 
projects under section 2865 of title 10, United States Code, 
in the amount of $69,500,000.
454
SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE 
AGENCIES. 
(a) IN GENERAL.—Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
2003, for military construction, land acquisition, and mili-
tary family housing functions of the Department of Defense 
(other than the military departments) in the total amount 
of $1,223,066,000, as follows: 
(1) For military construction projects inside the 
United 
States 
authorized 
by 
section 
2401(a), 
$343,570,000. 
(2) For military construction projects outside the 
United 
States 
authorized 
by 
section 
2401(b), 
$152,017,000. 
(3) For unspecified minor construction projects 
under section 2805 of title 10, United States Code, 
$16,153,000. 
(4) For contingency construction projects of the 
Secretary of Defense under section 2804 of title 10, 
United States Code, $8,960,000. 
(5) For architectural and engineering services 
and construction design under section 2807 of title 
10, United States Code, $66,834,000. 
(6) For energy conservation projects authorized 
by section 2404, $69,500,000.
455
(7) For base closure and realignment activities 
as authorized by the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of Public 
Law 101–510; 10 U.S.C. 2687 note), $370,427,000. 
(8) For military family housing functions: 
(A) For planning, design, and improvement 
of military family housing and facilities, 
$350,000. 
(B) For support of military family housing 
(including functions described in section 2833 of 
title 10, United States Code), $49,440,000. 
(C) For credit to the Department of Defense 
Family Housing Improvement Fund established 
by section 2883(a)(1) of title 10, United States 
Code, $300,000. 
(9) For construction of the Defense Threat Re-
duction Center at Fort Belvoir, Virginia, authorized 
by section 2401(a) of the Military Construction Au-
thorization Act for Fiscal Year 2003 (division B of 
Public Law 107–314; 116 Stat. 2695), $25,700,000. 
(10) For the construction of phase 5 of an am-
munition demilitarization facility at Pueblo Depot 
Activity, Colorado, authorized by section 2401(a) of 
the Military Construction Authorization Act for Fis-
cal Year 1997 (division B of Public Law 104–201;
456
110 Stat. 2775), as amended by section 2406 of the 
Military Construction Authorization Act for Fiscal 
Year 2000 (division B of Public Law 106–65; 113 
Stat. 839) and section 2407 of the Military Construc-
tion Authorization Act for Fiscal Year 2003 (division 
B of Public Law 107–314; 116 Stat. 2698), 
$88,388,000. 
(11) For the construction of phase 6 of an am-
munition demilitarization facility at Newport Army 
Ammunition Plant, Indiana, authorized by section 
2401(a) of the Military Construction Authorization 
Act for Fiscal Year 1999 (division B of Public Law 
105–261; 112 Stat. 2193), as amended by section 
2406 of the Military Construction Authorization Act 
for Fiscal Year 2003 (division B of Public Law 107–
314; 116 Stat. 2698), $15,207,000. 
(12) For the construction of phase 4 of an am-
munition demilitarization facility at Blue Grass 
Army Depot, Kentucky, authorized by section 2401(a) 
of the Military Construction Authorization Act for 
Fiscal Year 2000 (division B of Public Law 106–65; 
113 Stat. 835), as amended by section 2405 of the 
Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107–107; 115 
Stat. 1298) and section 2405 of the Military Con-
457
struction Authorization Act for Fiscal Year 2003 (di-
vision B of Public Law 107–314; 116 Stat. 2698), 
$16,220,000. 
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and 
any other cost variation authorized by law, the total cost 
of all projects carried out under section 2401 of this Act 
may not exceed the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection (a).
TITLE 
XXV—NORTH 
ATLANTIC 
TREATY ORGANIZATION SE-
CURITY 
INVESTMENT 
PRO-
GRAM
SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND 
ACQUISITION PROJECTS. 
The Secretary of Defense may make contributions for 
the North Atlantic Treaty Organization Security Invest-
ment program as provided in section 2806 of title 10, 
United States Code, in an amount not to exceed the sum 
of the amount authorized to be appropriated for this pur-
pose in section 2502 and the amount collected from the 
North Atlantic Treaty Organization as a result of construc-
tion previously financed by the United States.
458
SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO. 
Funds are hereby authorized to be appropriated for fis-
cal years beginning after September 30, 2003, for contribu-
tions by the Secretary of Defense under section 2806 of title 
10, United States Code, for the share of the United States 
of the cost of projects for the North Atlantic Treaty Organi-
zation Security Investment program authorized by section 
2501, in the amount of $169,300,000.
TITLE XXVI—GUARD AND 
RESERVE FORCES FACILITIES 
SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUC-
TION AND LAND ACQUISITION PROJECTS. 
There are authorized to be appropriated for fiscal 
years beginning after September 30, 2003, for the costs of 
acquisition, architectural and engineering services, and 
construction of facilities for the Guard and Reserve Forces, 
and for contributions therefor, under chapter 1803 of title 
10, United States Code (including the cost of acquisition 
of land for those facilities), the following amounts: 
(1) For the Department of the Army—
(A) for the Army National Guard of the 
United States, $253,788,000; and 
(B) for the Army Reserve, $89,840,000. 
(2) For the Department of the Navy, for the 
Naval and Marine Corps Reserve, $45,762,000. 
(3) For the Department of the Air Force—
459
(A) for the Air National Guard of the 
United States, $123,408,000; and 
(B) for the Air Force Reserve, $61,143,000.
TITLE XXVII—EXPIRATION AND 
EXTENSION OF AUTHORIZA-
TIONS 
SEC. 
2701. 
EXPIRATION 
OF 
AUTHORIZATIONS 
AND 
AMOUNTS REQUIRED TO BE SPECIFIED BY 
LAW. 
(a) EXPIRATION OF AUTHORIZATIONS AFTER THREE 
YEARS.—Except as provided in subsection (b), all author-
izations contained in titles XXI through XXVI for military 
construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North At-
lantic Treaty Organization Security Investment program 
(and authorizations of appropriations therefor) shall expire 
on the later of—
(1) October 1, 2006; or 
(2) the date of the enactment of an Act author-
izing funds for military construction for fiscal year 
2007. 
(b) EXCEPTION.—Subsection (a) shall not apply to au-
thorizations for military construction projects, land acqui-
sition, family housing projects, and facilities, and contribu-
tions to the North Atlantic Treaty Organization Security
460
Investment program (and authorizations of appropriations 
therefor) for which appropriated funds have been obligated 
before the later of—
(1) October 1, 2006; or 
(2) the date of the enactment of an Act author-
izing funds for fiscal year 2007 for military construc-
tion projects, land acquisition, family housing 
projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment 
program. 
SEC. 2702. EXTENSION OF AUTHORIZATION OF CERTAIN 
FISCAL YEAR 2001 PROJECT. 
(a) EXTENSION
OF CERTAIN PROJECT.—Notwith-
standing section 2701 of the Floyd D. Spence National De-
fense Authorization Act for Fiscal Year 2001 (as enacted 
into law by Public Law 106–398; 114 Stat. 1654A–407), 
the authorization set forth in the table in subsection (b), 
as provided in section 2102 of that Act, shall remain in 
effect until October 1, 2004, or the date of the enactment 
of an Act authorizing funds for military construction for 
fiscal year 2005, whichever is later. 
(b) TABLE.—The table referred to in subsection (a) is 
as follows:
461
Army: Extension of 2001 Project Authorization 
State 
Installation or loca-
tion 
Project 
Amount 
South Carolina ...............
Fort Jackson ..................
New Construc-
tion—GFOQ 
$250,000
SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN 
FISCAL YEAR 2000 PROJECTS. 
(a) EXTENSION.—Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 
2000 (division B of Public Law 106–65; 113 Stat. 841), 
the authorizations set forth in the tables in subsection (b), 
as provided in section 2302 or 2601 of that Act and ex-
tended by section 2702 of the Military Construction Author-
ization Act for Fiscal Year 2003 (division B of Public Law 
107–314; 116 Stat. 2700), shall remain in effect until Octo-
ber 1, 2004, or the date of the enactment of an Act author-
izing funds for military construction for fiscal year 2005, 
whichever is later. 
(b) TABLES.—The tables referred to in subsection (a) 
is as follows:
Air Force: Extension of 2000 Project Authorization 
State 
Installation or loca-
tion 
Project 
Amount 
Oklahoma ........................
Tinker Air Force Base ..
Replace Family 
Housing (41 
Units) ...........
$6,000,000
Army National Guard: Extension of 2000 Project Authorization 
State 
Installation or loca-
tion 
Project 
Amount 
Virginia ...........................
Fort Pickett ....................
Multi-purpose 
Range-Heavy 
$13,500,000
462
SEC. 2704. EFFECTIVE DATE. 
Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of 
this Act shall take effect on the later of—
(1) October 1, 2003; or 
(2) the date of the enactment of this Act.
TITLE XXVIII—GENERAL 
PROVISIONS 
Subtitle A—Military Construction 
Program and Military Family 
Housing Changes
SEC. 2801. INCREASE IN MAXIMUM AMOUNT OF AUTHOR-
IZED ANNUAL EMERGENCY CONSTRUCTION. 
Section 2803(c)(1) of title 10, United States Code, is 
amended 
by 
striking 
‘‘$30,000,000’’ 
and 
inserting 
‘‘$45,000,000’’.
SEC. 2802. AUTHORITY TO LEASE MILITARY FAMILY HOUS-
ING UNITS IN ITALY. 
Section 2828(e)(2) of title 10, United States Code, is 
amended by striking ‘‘2,000 units‘‘ and inserting ‘‘2,800 
units’’.
SEC. 2803. CHANGES TO ALTERNATIVE AUTHORITY FOR AC-
QUISITION AND IMPROVEMENT OF MILITARY 
HOUSING. 
(a) SPACE LIMITATIONS
BY PAY GRADE.—Section 
2880(b)(2) of title 10, United States Code, is amended by
463
striking ‘‘unless the unit is located on a military installa-
tion’’. 
(b) DEPARTMENT OF DEFENSE HOUSING FUND.—(1) 
Section 2883 of such title is amended by striking sub-
sections (a), (b), and (c) and inserting the following new 
subsections (a) and (b): 
‘‘(a) ESTABLISHMENT.—There is hereby established on 
the books of the Treasury an account to be known as the 
Department of Defense Housing Improvement Fund (in this 
section referred to as the ‘Fund’). 
‘‘(b) CREDITS TO FUND.—There shall be credited to the 
Fund the following: 
‘‘(1) Amounts authorized for and appropriated 
to the Fund. 
‘‘(2) Subject to subsection (e), any amounts that 
the Secretary of Defense transfers, in such amounts as 
are provided for in appropriation Acts, to the Fund 
from amounts authorized and appropriated to the De-
partment of Defense for the acquisition or construc-
tion of military family housing or military unaccom-
panied housing. 
‘‘(3) Proceeds from the conveyance or lease of 
property or facilities under section 2878 of this title 
for the purpose of carrying out activities under this
464
subchapter with respect to military family housing or 
military unaccompanied housing. 
‘‘(4) Income derived from any activities under 
this subchapter with respect to military family hous-
ing or military unaccompanied housing, income and 
gains realized from investments under section 2875 of 
this title, and any return of capital invested as part 
of such investments. 
‘‘(5) Any amounts that the Secretary of the Navy 
transfers to the Fund pursuant to section 2814(i)(3) 
of this title, subject to the restrictions on the use of 
the transferred amounts specified in that section.’’. 
(2) Such section is further amended—
(A) by redesignating subsections (d) through (g) 
as (c) through (f), respectively; 
(B) in subsection (c), as so redesignated—
(i) in the subsection heading, by striking 
‘‘FUNDS’’ and inserting ‘‘FUND’’; 
(ii) in paragraph (1)—
(I) by striking ‘‘subsection (e)’’ and in-
serting ‘‘subsection (d)’’; and 
(II) by striking ‘‘Department of De-
fense Family Housing Improvement Fund’’ 
and inserting ‘‘Fund’’; 
(iii) by striking paragraph (2); and
465
(iv) by redesignating paragraph (3) as 
paragraph (2); 
(C) in subsection (e), as so redesignated, by 
striking ‘‘a Fund under paragraph (1)(B) or (2)(B) 
of subsection (c)’’ and inserting ‘‘the Fund under sub-
section (b)(2)’’; and 
(D) in subsection (f), as so redesignated, by 
striking ‘‘$850,000,000’’ in paragraph (1) and insert-
ing ‘‘$900,000,000’’. 
(c) TRANSFER OF UNOBLIGATED AMOUNTS.—(1) The 
Secretary of Defense shall transfer to the Department of De-
fense Housing Improvement Fund established under section 
2883(a) of title 10, United States Code (as amended by sub-
section (b)), any amounts in the Department of Defense 
Family Housing Improvement Fund and the Department 
of Defense Military Unaccompanied Housing Improvement 
that remain available for obligation as of the date of the 
enactment of this Act. 
(2) Amounts transferred to the Department of Defense 
Housing Improvement Fund under paragraph (1) shall be 
merged with amounts in that Fund, and shall be available 
for the same purposes, and subject to the same conditions 
and limitations, as other amounts in that Fund. 
(d) CONFORMING AMENDMENTS.—(1) Paragraph (3) 
of section 2814(i) of such title is amended—
466
(A) by striking subparagraph (A) and inserting 
the following new subparagraph (A): 
‘‘(A) The Secretary may transfer funds from the Ford 
Island Improvement Account to the Department of Defense 
Housing Improvement Fund established by section 2883(a) 
of this title.’’; and 
(B) in subparagraph (B), by striking ‘‘a fund’’ 
and inserting ‘‘the Fund’’. 
(2) Section 2871(6) of such title is amended by striking 
‘‘Department of Defense Family Housing Improvement 
Fund or the Department of Defense Military Unaccom-
panied Housing Improvement Fund’’ and inserting ‘‘De-
partment of Defense Housing Improvement Fund’’. 
(3) Section 2875(e) of such title is amended by striking 
‘‘Department of Defense Family Housing Improvement 
Fund or the Department of Defense Military Unaccom-
panied Housing Improvement Fund’’ and inserting ‘‘De-
partment of Defense Housing Improvement Fund’’. 
(e) CLERICAL AMENDMENTS.—(1) The section heading 
for section 2883 of such title is amended to read as follows: 
‘‘§ 2883. Department of Defense Housing Improvement 
Fund’’. 
(2) The table of sections at the beginning subchapter 
IV of chapter 169 of such title is amended by striking the
467
item relating to section 2883 and inserting the following 
new item:
‘‘2883. Department of Defense Housing Improvement Fund.’’.
SEC. 2804. ADDITIONAL MATERIAL FOR ANNUAL REPORT 
ON HOUSING PRIVATIZATION PROGRAM. 
Section 2884(b) of title 10, United States Code, is 
amended—
(1) in paragraph (2), by inserting before the pe-
riod at the end the following: ‘‘, and such rec-
ommendations as the Secretary considers necessary 
for improving the extent and effectiveness of the use 
of such authorities in the future’’; and 
(2) by striking paragraph (3) and inserting the 
following new paragraphs: 
‘‘(3) A review of activities of the Secretary under 
this subchapter during such preceding fiscal year, 
shown for military family housing, military unac-
companied housing, dual military family housing 
and military unaccompanied housing, and ancillary 
supporting facilities. 
‘‘(4) If a contract for the acquisition or construc-
tion of military family housing, military unaccom-
panied housing, or dual military family housing and 
military unaccompanied housing entered into during 
the preceding fiscal year did not include the acquisi-
tion or construction of the types of ancillary sup-
468
porting facilities specifically referred to in section 
2871(1) of this title, a explanation of the reasons why 
such ancillary supporting facilities were not included. 
‘‘(5) A description of the Secretary’s plans for 
housing privatization activities under this subchapter 
(A) during the fiscal year for which the budget is sub-
mitted, and (B) during the period covered by the 
then-current future-years defense plan under section 
221 of this title.’’.
SEC. 2805. AUTHORITY TO CONVEY PROPERTY AT MILITARY 
INSTALLATIONS CLOSED OR TO BE CLOSED 
IN EXCHANGE FOR MILITARY CONSTRUCTION 
ACTIVITIES. 
(a) IN GENERAL.—(1) Subchapter III of chapter 169 
of title 10, United States Code, is amended by adding at 
the end the following new section: 
‘‘§ 2869. Conveyance of property at military installa-
tions closed or to be closed in exchange 
for military construction activities 
‘‘(a) CONVEYANCE AUTHORIZED; CONSIDERATION.—
The Secretary of Defense may enter into an agreement to 
convey real property, including any improvements thereon, 
located on a military installation that is closed or realigned 
under a base closure law to any person who agrees, in ex-
change for the real property—
469
‘‘(1) to carry out, or provide services in connec-
tion with, an authorized military construction 
project; or 
‘‘(2) to transfer to the Secretary of Defense hous-
ing that is constructed or provided by the person and 
located at or near a military installation at which 
there is a shortage of suitable military family housing 
or military unaccompanied housing (or both). 
‘‘(b) CONDITIONS
ON CONVEYANCE AUTHORITY.—A 
conveyance of real property may be made under subsection 
(a) only if—
‘‘(1) the fair market value of the consideration to 
be received in exchange for the real property conveyed 
under subsection (a) is equal to or greater than the 
fair market value of the property, including any im-
provements thereon, as determined by the Secretary 
concerned; and 
‘‘(2) in the event the fair market value of the 
consideration to be received is equal to at least 90 
percent, but less than 100 percent, of the fair market 
value of the real property to be conveyed, including 
any improvements thereon, the recipient of the prop-
erty agrees to pay to the Secretary of Defense an 
amount equal to the difference in the fair market val-
ues.
470
‘‘(c) USE OF AUTHORITY.—(1) To the maximum ex-
tent practicable, the Secretary of Defense shall use the au-
thority provided by subsection (a) to convey at least 20 per-
cent of the total acreage conveyed each fiscal year at mili-
tary installations closed or realigned under the base closure 
laws. Notice of the proposed use of this authority shall be 
provided in such manner as the Secretary may prescribe, 
including publication in the Federal Register and other-
wise. In determining such total acreage for a fiscal year, 
the Secretary shall exclude real property identified in a re-
development plan as property essential to the reuse or 
redevlopment of a military installation closed or to be closed 
under a base closure law. 
‘‘(2) To the maximum extent practicable, the Secretary 
of Defense shall endeavor to use the authority provided by 
subsection (a) to obtain military construction and military 
housing services having a total value of at least 
$200,000,000 each fiscal year for each of the military de-
partments. 
‘‘(3) The Secretary concerned shall utilize the author-
ity provided in subsection (a) in lieu of obligating and ex-
pending funds appropriated for military construction and 
military housing projects that are authorized by law. 
‘‘(d) DEPOSIT OF FUNDS.—The Secretary of Defense 
may deposit funds received under subsection (b)(2) in the
471
Department of Defense Housing Improvement Fund estab-
lished under section 2883(a) of this title. 
‘‘(e) ANNUAL REPORT.—The Secretary of Defense shall 
include each year in the materials that the Secretary sub-
mits to Congress in support of the budget submitted by the 
President pursuant to section 1105 of title 31 a report de-
tailing the extent to which the Secretary used the authority 
provided by subsection (a) to convey real property in ex-
change for military construction and military housing and 
plans for the use of such authority for the future. The report 
shall include the following: 
‘‘(1) The total value of the real property that was 
actually conveyed during the preceding fiscal year 
using the authority provided by subsection (a). 
‘‘(2) The total value of the military construction 
and military housing services obtained in exchange, 
and, if the dollar goal specified in subsection (c)(2) 
was not achieved for a military department, an ex-
planation regarding the reasons why the goal was not 
achieved. 
‘‘(3) The current inventory of unconveyed lands 
at military installations closed or realigned under a 
base closure law. 
‘‘(4) A description of the results of conveyances 
under subsection (a) during the preceding fiscal year
472
and plans for such conveyances for the current fiscal 
year, the fiscal year covered by the budget, and the 
period covered by the current future-years defense pro-
gram under section 221 of this title. 
‘‘(f) DESCRIPTION OF PROPERTY.—The exact acreage 
and legal description of real property conveyed under sub-
section (a) shall be determined by surveys satisfactory to 
the Secretary of Defense. 
‘‘(g) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary of Defense may require such additional terms and 
conditions in connection with a conveyance under sub-
section (a) as the Secretary considers appropriate to protect 
the interests of the United States.’’. 
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following new 
item:
‘‘2869. Conveyance of property at military installations closed or to be closed in 
exchange for military construction activities.’’.
(b) EXCEPTION TO REQUIREMENT FOR AUTHORIZA-
TION OF NUMBER OF HOUSING UNITS.—Section 2822 of 
such title is amended by adding at the end the following 
new paragraph: 
‘‘(6) Housing units constructed or provided 
under section 2869 of this title.’’. 
(c) CONFORMING AMENDMENT TO DEPARTMENT OF 
DEFENSE
HOUSING
IMPROVEMENT
FUND.—Section
473
2883(b) of such title, as amended by section 2803, is further 
amended by adding at the end the following new paragraph: 
‘‘(6) Any amounts that the Secretary concerned 
transfers to the Fund pursuant to section 2869 of this 
title.’’. 
(d) CONFORMING
REPEALS
TO
BASE
CLOSURE 
LAWS.—(1) Section 204(e) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Pub-
lic Law 100–526; 10 U.S.C. 2687 note) is repealed. 
(2) Section 2905(f) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public 
Law 101–510; 10 U.S.C. 2687 note) is repealed.
SEC. 2806. CONGRESSIONAL NOTIFICATION AND REPORT-
ING REQUIREMENTS AND LIMITATIONS RE-
GARDING USE OF OPERATION AND MAINTE-
NANCE FUNDS FOR CONSTRUCTION. 
(a) IN GENERAL.—Subchapter I of chapter 169 of title 
10, United States Code, is amended by inserting after sec-
tion 2809 the following new section: 
‘‘§ 2810. Use of operation and maintenance funds for 
construction: notification and reporting 
requirements and limitations 
‘‘(a) ADVANCE NOTIFICATION
OF OBLIGATION
OF 
FUNDS.—(1) The Secretary concerned shall submit to the 
appropriate committees of Congress advance written notice
474
before appropriations available for operation and mainte-
nance are obligated for construction described in paragraph 
(2). The notice shall be submitted not later than 14 days 
before the date on which appropriations available for oper-
ation and maintenance are first obligated for that construc-
tion and shall contain the information required by sub-
section (c). 
‘‘(2) Paragraph (1) applies with respect to any con-
struction having an estimated total cost of more than 
$1,500,000, but not more than $5,000,000, which is paid 
for in whole or in part using appropriations available for 
operation and maintenance, if—
‘‘(A) the construction is necessary to meet urgent 
military operational requirements of a temporary na-
ture; 
‘‘(B) the construction was not carried out at a 
military installation where the United States is rea-
sonably expected to have a long-term interest or pres-
ence; 
‘‘(C) the United States has no intention of using 
the construction after the operational requirement has 
been satisfied; and 
‘‘(D) the level of construction is the minimum 
necessary to meet the temporary operational need.
475
‘‘(b) WAIVER AUTHORITY; CONGRESSIONAL NOTIFICA-
TION.—(1) The Secretary concerned may waive the advance 
notice requirement under subsection (a) on a case-by-case 
basis if the Secretary determines that—
‘‘(A) the project is vital to the national security 
or to the protection of health, safety, or the quality of 
the environment; and 
‘‘(B) the requirement for the construction is so 
urgent that deferral of the construction during the pe-
riod specified in subsection (a)(1) would be incon-
sistent with national security or the protection of 
health, safety, or environmental quality, as the case 
may be. 
‘‘(2) Not later than five days after the date on which 
a waiver is granted under paragraph (1), the Secretary 
concerned shall provide to the appropriate committees of 
Congress written notice containing the reasons for the waiv-
er and the information required by subsection (c) with re-
gard to the construction for which the waiver was granted. 
‘‘(c) CONTENT OF NOTICE.—The notice provided under 
subsection (a) or (b) with regard to construction funded 
using appropriations available for operation and mainte-
nance shall include the following: 
‘‘(1) A description of the purpose for which the 
funds are being obligated.
476
‘‘(2) An estimate of the total amount to be obli-
gated for the construction. 
‘‘(3) The reasons appropriations available for 
operation and maintenance are being used. 
‘‘(d) LIMITATIONS ON USE OF OPERATION AND MAIN-
TENANCE FUNDS.—(1) The Secretary concerned shall not 
use appropriations available for operation and mainte-
nance to carry out any construction having an estimated 
total cost of more than $5,000,000. 
‘‘(2) The total cost of construction carried out by the 
Secretaries concerned in whole or in part using appropria-
tions available for operation and maintenance shall not ex-
ceed $200,000,000 in any fiscal year. 
‘‘(e) QUARTERLY REPORT.—The Secretary concerned 
shall submit to the appropriate committees of Congress a 
quarterly report on the worldwide obligation and expendi-
ture of appropriations available for operation and mainte-
nance by the Secretary concerned for construction during 
the preceding quarter.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such subchapter is amended by inserting 
after the item relating to section 2809 the following new 
item:
‘‘2810. Use of operation and maintenance funds for construction: notification and 
reporting requirements and limitations.’’.
477
SEC. 2807. INCREASE IN AUTHORIZED MAXIMUM LEASE 
TERM FOR FAMILY HOUSING AND OTHER FA-
CILITIES IN CERTAIN FOREIGN COUNTRIES. 
(a) LEASE OF MILITARY FAMILY HOUSING.—Section 
2828(d)(1) of title 10, United States Code, is amended by 
striking ‘‘ten years,’’ and inserting ‘‘10 years, or 15 years 
in the case of leases in Korea,’’. 
(b) LEASES OF OTHER FACILITIES.—Section 2675 of 
such title is amended by inserting after ‘‘five years,’’ the 
following: ‘‘or 15 years in the case of a lease in Korea,’’.
Subtitle B—Real Property and 
Facilities Administration
SEC. 2811. REAL PROPERTY TRANSACTIONS. 
(a) INCREASE IN LAND ACQUISITION AUTHORITY COST 
THRESHOLD.—Section 2672 of title 10, United States Code, 
is amended by striking ‘‘$500,000’’ both places it appears 
and inserting ‘‘$1,500,000’’. 
(b) PROMPT NOTIFICATION OF CERTAIN LAND ACQUI-
SITIONS.—Section 2672a of such title is amended—
(1) in subsection (a)(1), by striking ‘‘he or his 
designee’’ and inserting ‘‘the Secretary’’; 
(2) in subsection (b), by striking the last sen-
tence; and 
(3) by adding at the end the following new sub-
section:
478
‘‘(c) Not later than 10 days after the determination 
is made under subsection (a)(1) that acquisition of an in-
terest in land is needed in the interest of the national de-
fense, the Secretary of the military department making that 
determination shall provide to the Committee on Armed 
Services of the Senate and the Committee on Armed Serv-
ices of the House of Representatives written notice con-
taining a description of the property and interest to be ac-
quired and the reasons for the acquisition.’’. 
(c) MODIFICATION OF RELATED NOTIFICATION RE-
QUIREMENTS.—Section 2662 of such title is amended—
(1) in subsection (a)—
(A) by striking ‘‘30 days’’ and all that fol-
lows through ‘‘is submitted’’ and inserting ‘‘14 
days after the beginning of the month with re-
spect to which a single report containing the 
facts concerning such transaction and all other 
such proposed transactions for that month is 
submitted, not later than the first day of that 
month,’’; and 
(B) by striking ‘‘$500,000’’ each place it 
appears and inserting ‘‘$1,500,000’’; 
(2) in subsection (b), by striking ‘‘more than’’ 
and all that follows through ‘‘$500,000’’ and inserting 
‘‘more than $250,000 but not more than $1,500,000’’;
479
(3) in subsection (e)—
(A) by striking ‘‘$500,000’’ and insert-
ing ‘‘$1,000,000’’; and 
(B) by striking ‘‘thirty days’’ and in-
serting ‘‘14 days’’; and 
(4) in subsection (g)(3), by striking ‘‘30 
days’’ and inserting ‘‘14 days’’. 
(d) CLERICAL AMENDMENTS.—(1) The heading of sec-
tion 2672 of such title is amended to read as follows: 
‘‘§ 2672. Authority to acquire low-cost interests in 
land’’. 
(2) The item relating to section 2672 in the table of 
sections at the beginning of chapter 159 of such title is 
amended to read as follows:
‘‘2672. Authority to acquire low-cost interests in land.’’.
Subtitle C—Land Conveyances
SEC. 2821. TERMINATION OF LEASE AND CONVEYANCE OF 
ARMY RESERVE FACILITY, CONWAY, ARKAN-
SAS. 
(a) TERMINATION OF LEASE.—Upon the completion of 
the replacement facility authorized for the Army Reserve 
facility located in Conway, Arkansas, the Secretary of the 
Army may terminate the 99-year lease between the Sec-
retary and the University of Central Arkansas for the prop-
erty on which the old facility is located.
480
(b) CONVEYANCE OF FACILITY.—As part of the termi-
nation of the lease under subsection (a), the Secretary may 
convey, without consideration, to the University of Central 
Arkansas all right, title, and interest of the United States 
in and to the Army Reserve facility located on the leased 
property. 
(c) ASSUMPTION OF LIABILITY.—The University of 
Central Arkansas shall expressly accept any and all liabil-
ity pertaining to the physical condition of the Army Re-
serve facility conveyed under subsection (b) and shall hold 
the United States harmless from any and all liability aris-
ing from the facility’s physical condition. 
SEC. 2822. ACTIONS TO QUIET TITLE, FALLIN WATERS SUB-
DIVISION, EGLIN AIR FORCE BASE, FLORIDA. 
(a) AUTHORITY TO QUIET TITLE.—Notwithstanding 
the restoration provisions under the heading ‘‘QUARTER-
MASTER CORPS’’ in the Second Deficiency Appropriation 
Act, 1940 (Act of June 27, 1940; chapter 437; 54 Stat. 655), 
the Secretary of the Air Force may take appropriate action 
to quiet title to tracts of land referred to in paragraph (2) 
on, at, adjacent, adjoining, or near Eglin Air Force Base, 
Florida. The Secretary may take such action in order to 
resolve encroachments upon private property by the United 
States and upon property of the United States by private 
parties, which resulted from reliance on inaccurate surveys.
481
(2) The tracts of land referred to in paragraph (1) are 
generally described as south of United States Highway 98 
and bisecting the north/south section line of sections 13 and 
14, township 2 south, range 25 west, located in the platted 
subdivision of Fallin Waters, Okaloosa County, Florida. 
The exact acreage and legal description of such tracts of 
land shall be determined by a survey satisfactory to the Sec-
retary. 
(b) AUTHORIZED ACTIONS.—In carrying out sub-
section (a), appropriate action by the Secretary may in-
clude any of the following: 
(1) Disclaiming, on behalf of the United States, 
any intent by the United States to acquire by pre-
scription any property at or in the vicinity of Eglin 
Air Force Base. 
(2) Disposing of tracts of land owned by the 
United States. 
(3) Acquiring tracts of land by purchase, by do-
nation, or by exchange for tracts of land owned by the 
United States at or adjacent to Eglin Air Force Base. 
(c) ACREAGE LIMITATIONS.—Individual tracts of land 
acquired or conveyed by the Secretary under paragraph (2) 
or (3) of subsection (a) may not exceed .10 acres. The total 
acreage so acquired may not exceed two acres.
482
(d) CONSIDERATION.—Any conveyance by the Sec-
retary under this section may be made, at the discretion 
of the Secretary, without consideration, or by exchange for 
tracts of land adjoining Eglin Air Force Base in possession 
of private parties who mistakenly believed that they had 
acquired title to such tracts. 
SEC. 2823. MODIFICATION OF LAND CONVEYANCE, EGLIN 
AIR FORCE BASE, FLORIDA. 
(a) MODIFICATION.—Public Law 91-347 (84 Stat. 
447) is amended—
(1) in the first section, by inserting ‘‘or for other 
public purposes’’ before the period at the end; and 
(2) in section 3(1)—
(A) by inserting ‘‘or for other public pur-
poses’’ after ‘‘schools’’; and 
(B) by striking ‘‘such purpose’’ and insert-
ing ‘‘such a purpose’’. 
(b) ALTERATION OF LEGAL INSTRUMENT.—The Sec-
retary of the Air Force shall execute and file in the appro-
priate office an amended deed or other appropriate instru-
ment effectuating the modification of the reversionary inter-
est retained by the United States in connection with the 
conveyance made pursuant to Public Law 91-347.
483
SEC. 2824. LAND CONVEYANCE, FORT CAMPBELL, KEN-
TUCKY AND TENNESSEE. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the 
Army may convey to the department of transportation of 
the State of Tennessee (in this section referred to as the ‘‘de-
partment’’) all right, title, and interest of the United States 
in and to a parcel of real property (right-of-way), including 
any improvements thereon, located at Fort Campbell, Ken-
tucky and Tennessee, for the purpose of realigning and up-
grading United States Highway 79 from a two-lane high-
way to a four-lane highway. 
(b) CONSIDERATION.—(1) As consideration for the con-
veyance under subsection (a), the department shall pay 
from any source (including Federal funds made available 
to the State from the Highway Trust Fund) all of the costs 
of the Secretary incurred—
(A) to convey the property, including costs re-
lated to the preparation of documents under the Na-
tional Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.), surveys (including all surveys required 
under subsection (c)), cultural reviews, and adminis-
trative oversight; 
(B) to relocate a cemetery to permit the highway 
realignment and upgrading;
484
(C) to acquire approximately 200 acres of mis-
sion-essential replacement property required to sup-
port the training mission at Fort Campbell; and 
(D) to dispose of residual Federal property lo-
cated south of the realigned highway. 
(2) The Secretary may accept funds under this sub-
section from the Federal Highway Administration or the 
State of Tennessee to pay costs described in paragraph (1) 
and credit them to the appropriate Department of the Army 
accounts for the purpose of paying such costs. 
(3) All funds accepted by the Secretary under this sub-
section shall remain available until expended. 
(c) DESCRIPTION OF PROPERTY.—The exact acreage 
and legal description of the property to be conveyed under 
subsection (a) or acquired and disposed of under section (b) 
shall be determined by surveys satisfactory to the Secretary. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with the conveyance under subsection (a) as 
the Secretary considers appropriate to protect the interests 
of the United States.
SEC. 2825. LAND CONVEYANCE, ARMY AND AIR FORCE EX-
CHANGE SERVICE PROPERTY, DALLAS, TEXAS. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of De-
fense may authorize the Army and Air Force Exchange
485
Service, a nonappropriated fund instrumentality of the 
United States, to convey, by sale, all right, title, and inter-
est of the United States in and to a parcel of real property, 
including any improvements thereon, located at 1515 
Roundtable Drive in Dallas, Texas. 
(b) CONSIDERATION.—As consideration for conveyance 
under subsection (a), the purchaser shall pay to the Sec-
retary, in a single lump sum payment, an amount equal 
to the fair market value of the real property conveyed, as 
determined by the Secretary. Section 574(a) of title 40, 
United States Code, shall apply with respect to the amounts 
received by the Secretary under this subsection. 
(c) DESCRIPTION OF PROPERTY.—The exact acreage 
and legal description of the real property to be conveyed 
under subsection (a) shall be determined by a survey satis-
factory to the Secretary. The cost of the survey shall be borne 
by the purchaser. 
(d) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with the conveyance under subsection (a) as 
the Secretary considers appropriate to protect the interests 
of the United States.
486
SEC. 2826. LAND CONVEYANCE, NAVAL RESERVE CENTER, 
ORANGE, TEXAS. 
(a) CONVEYANCE AUTHORIZED.—The Secretary of the 
Navy may convey to the City of Orange, Texas (in this sec-
tion referred to as the ‘‘City’’), all right, title, and interest 
of the United States in and to a parcel of unimproved real 
property consisting of approximately 2.5 acres at Naval Re-
serve Center, Orange, Texas for the purpose of permitting 
the City to use the property for road construction, economic 
development, and other public purposes. 
(b) CONSIDERATION.—As consideration for the convey-
ance under subsection (a), the City shall provide the United 
States, whether by cash payment, in-kind contribution, or 
a combination thereof, an amount that is not less than the 
fair market value, as determined by the Secretary, of the 
property conveyed under such subsection. 
(c) PAYMENT OF COSTS OF CONVEYANCE.—(1) The 
Secretary may require the City to cover costs to be incurred 
by the Secretary, or to reimburse the Secretary for costs 
incurred by the Secretary, to carry out the conveyance 
under subsection (a), including survey costs, costs related 
to environmental documentation, and other administrative 
costs related to the conveyance. If amounts are collected 
from the City in advance of the Secretary incurring the 
actual costs, and the amount collected exceeds the costs actu-
487
ally incurred by the Secretary to carry out the conveyance, 
the Secretary shall refund the excess amount to the City. 
(2) Amounts received as reimbursement under para-
graph (1) shall be credited to the fund or account that was 
used to cover the costs incurred by the Secretary in carrying 
out the conveyance. Amounts so credited shall be merged 
with amounts in such fund or account, and shall be avail-
able for the same purposes, and subject to the same condi-
tions and limitations, as amounts in such fund or account. 
(d) EXEMPTION FROM FEDERAL SCREENING.—The 
conveyance authorized by subsection (a) is exempt from the 
requirement to screen the property for other Federal use 
pursuant to sections 2693 and 2696 of title 10, United 
States Code. 
(e) DESCRIPTION OF PROPERTY.—The exact acreage 
and legal description of the real property to be conveyed 
under subsection (a) shall be determined by a survey satis-
factory to the Secretary. 
(f) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary may require such additional terms and conditions 
in connection with the conveyance under subsection (a) as 
the Secretary considers appropriate to protect the interests 
of the United States.
488
Subtitle D—Other Matters
SEC. 2841. REDESIGNATION OF YUMA TRAINING RANGE 
COMPLEX AS BOB STUMP TRAINING RANGE 
COMPLEX. 
The military aviation training facility located in 
southwestern Arizona and southeastern California and 
known as the Yuma Training Range Complex shall be 
known and designated as the ‘‘Bob Stump Training Range 
Complex’’. Any reference to such training range complex 
in any law, regulation, map, document, record, or other 
paper of the United States shall be considered to be a ref-
erence to the Bob Stump Training Range Complex.
SEC. 2842. MODIFICATION OF AUTHORITY TO CONDUCT A 
ROUND OF REALIGNMENTS AND CLOSURES 
OF MILITARY INSTALLATIONS IN 2005. 
(a) REVISION TO FORCE STRUCTURE PLAN FOR 2005 
ROUND.—Section 2912(a) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public 
Law 101–510; 10 U.S.C. 2687 note), as added by section 
3001 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107–107; 115 Stat. 1342), is 
amended—
(1) by striking subparagraph (A) of paragraph 
(1) and inserting the following:
489
‘‘(A) A force-structure plan for the Armed 
Forces that—
‘‘(i) at a minimum, assumes the force 
structure under the 1991 Base Force force 
structure (as defined in paragraph (5)) that 
is also known as the ‘Cheney-Powell force 
structure’; and 
‘‘(ii) includes such consideration as the 
Secretary considers appropriate of an as-
sessment by the Secretary of—
‘‘(I) the probable threats to the 
national security during the 20-year 
period beginning with fiscal year 2005; 
‘‘(II) the probable end-strength 
levels and major military force units 
(including land force divisions, carrier 
and other major combatant vessels, air 
wings, and other comparable units) 
needed to meet those threats; and 
‘‘(III) the anticipated levels of 
funding that will be available for na-
tional defense purposes during such pe-
riod.’’; 
(2) in paragraph (2)(A), by inserting before the 
period at the end the following: ‘‘, based upon an as-
490
sumption that there are no installations available 
outside the United States for the permanent basing of 
elements of the Armed Forces’’; 
(3) in paragraph (4), by inserting after the first 
sentence the following new sentence: ‘‘Any such revi-
sion shall be consistent with this subsection.’’; and 
(4) by adding at the end the following new para-
graph: 
‘‘(5) BASE FORCE.—In this subsection, the term 
‘1991 Base Force force structure’ means the force 
structure plan for the Armed Forces, known as the 
‘Base Force’, that was adopted by the Secretary of 
Defense in November 1990 based upon recommenda-
tions of the Chairman of the Joint Chiefs of Staff and 
as incorporated in the President’s budget for fiscal 
year 1992, as submitted to Congress in February 
1991 and that assumed the following force structure: 
‘‘(A) For the Department of Defense, 
1,600,000 members of the Armed Forces on active 
duty and 900,000 members in an active status 
in the reserve components. 
‘‘(B) For the Army, 12 active divisions, six 
National Guard divisions, and two cadre divi-
sions or their equivalents.
491
‘‘(C) For the Navy, 12 aircraft carrier bat-
tle groups or their equivalents and 451 naval 
vessels, including 85 attack submarines. 
‘‘(D) For the Marine Corps, three active 
and one Reserve divisions and three active and 
one Reserve air wings. 
‘‘(E) For the Air Force, 15 active fighter 
wings and 11 National Guard fighter wings or 
their equivalents.’’.
(b) PREPARATION OF LIST OF MILITARY INSTALLA-
TIONS
EXCLUDED
FROM
CONSIDERATION
IN
2005 
ROUND.—Section 2913 of the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of Public Law 
101–510; 10 U.S.C. 2687 note), as added by section 3002 
of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107–107; 115 Stat. 1344), is amended 
by adding at the end the following new subsections: 
‘‘(g) BASE EXCLUSION CRITERIA.—In preparing the 
selection criteria required by this section that will be used 
in making recommendations for the closure or realignment 
of military installations inside the United States, the Sec-
retary shall ensure that the final criteria reflect the require-
ment to develop a list of those military installations to be 
excluded from the base closure and realignment process, as 
provided in subsection (h).
492
‘‘(h) LIST OF INSTALLATIONS EXCLUDED FROM CON-
SIDERATION FOR CLOSURE OR REALIGNMENT.—(1) Before 
preparing the list required by section 2914(a) of the mili-
tary installations inside the United States that the Sec-
retary recommends for closure or realignment, the Secretary 
shall prepare a list of core military installations that the 
Secretary considers absolutely essential to the national de-
fense and that should not be considered for closure. 
‘‘(2) Not later than April 1, 2005, the Secretary shall 
submit to the congressional defense committees, publish in 
the Federal Register, and send to the Commission the list 
required by paragraph (1). The list shall contain at least 
50 percent of the total number of military installations lo-
cated inside the United States as of the date of the enact-
ment of the National Defense Authorization Act for Fiscal 
Year 2004. 
‘‘(3) The Commission shall consider the list based on 
the final criteria developed under subsection (e). The Com-
mission may modify this list, in the manner provided in 
section 2903(d) and section 2914(d), if the Commission 
finds that the inclusion of a military installation on the 
list substantially violates the criteria. The Commission shall 
forward to the President, not later than April 30, 2005, 
a report containing its recommendations regarding the list, 
which must comply with the percentages specified in para-
493
graph (2). The Comptroller General shall also comply with 
section 2903(d)(5) by that date. 
‘‘(4) If the Commission submits a report to the Presi-
dent under paragraph (3), the President shall notify Con-
gress, not later than May 10, 2005, regarding whether the 
President approves or disapproves the report. If the Presi-
dent disapproves the report, the Commission shall be dis-
solved, and the process by which military installations may 
be selected for closure or realignment under this part in 
2005 shall be terminated. 
‘‘(5) A military installation included on the exclusion 
list approved under this subsection may not be included on 
the closure and realignment list prepared under section 
2914(a) or otherwise considered for closure or realignment 
as part of the base closure process in 2005.’’.
SEC. 2843. USE OF FORCE-STRUCTURE PLAN FOR THE 
ARMED FORCES IN PREPARATION OF SELEC-
TION CRITERIA FOR BASE CLOSURE ROUND. 
Section 2913(a) of the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of Public Law 
101–510; 10 U.S.C. 2687 note), as added by section 3002 
of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107–107; 115 Stat. 1344), is amended 
by adding at the end the following new paragraph:
494
‘‘(3) USE OF FORCE-STRUCTURE PLAN.—In pre-
paring the proposed and final criteria to be used by 
the Secretary in making recommendations under sec-
tion 2914 for the closure or realignment of military 
installations inside the United States, the Secretary 
shall use the force-structure plan for the Armed Forces 
prepared under section 2912(a).’’
SEC. 2844. REQUIREMENT FOR UNANIMOUS VOTE OF DE-
FENSE BASE CLOSURE AND REALIGNMENT 
COMMISSION TO RECOMMEND CLOSURE OF 
MILITARY 
INSTALLATION 
NOT 
REC-
OMMENDED FOR CLOSURE BY SECRETARY OF 
DEFENSE. 
Section 2914(d) of the Defense Base Closure and Re-
alignment Act of 1990 (part A of title XXIX of Public Law 
101–510; 10 U.S.C. 2687 note), as added by section 3003 
of the Military Construction Authorization Act for Fiscal 
Year 2002 (division B of Public Law 107–107; 155 Stat, 
1346) and amended by section 2854 of the Bob Stump Na-
tional Defense Authorization Act for Fiscal Year 2003 (Pub-
lic Law 107–314; 116 Stat. 2728), is amended—
(1) in paragraph (3), by striking ‘‘TO ADD’’ and 
inserting ‘‘TO CONSIDER ADDITIONS’’; and 
(2) in paragraph (5)—
495
(A) by inserting ‘‘AND UNANIMOUS VOTE’’ 
after ‘‘SITE VISIT’’; and 
(B) by inserting before the period at the end 
the following: ‘‘and the decision of the Commis-
sion to recommend the closure of the installation 
is unanimous’’.
DIVISION 
C—DEPARTMENT 
OF 
ENERGY NATIONAL SECURITY 
AUTHORIZATIONS 
AND 
OTHER AUTHORIZATIONS 
TITLE 
XXXI—DEPARTMENT 
OF 
ENERGY NATIONAL SECURITY 
PROGRAMS
Subtitle A—National Security 
Programs Authorizations
SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRA-
TION. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are 
hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2004 for the activities of the National 
Nuclear Security Administration in carrying out programs 
necessary for national security in the amount of 
$8,822,075,000, to be allocated as follows: 
(1) For weapons activities, $6,393,000,000.
496
(2) For defense nuclear nonproliferation activi-
ties, $1,312,695,000. 
(3) For naval reactors, $768,400,000. 
(4) For the Office of the Administrator for Nu-
clear Security, $347,980,000. 
(b) AUTHORIZATION
OF NEW PLANT PROJECTS.—
From funds referred to in subsection (a) that are available 
for carrying out plant projects, the Secretary of Energy 
may carry out, for weapons activities, the following new 
plant projects: 
Project 04–D–101, test capabilities revitaliza-
tion, Sandia National Laboratories, Albuquerque, 
New Mexico, $36,450,000. 
Project 04–D–102, exterior communications in-
frastructure modernization, Sandia National Labora-
tories, Albuquerque, New Mexico, $20,000,000. 
Project 04–D–103, project engineering and de-
sign, various locations, $2,000,000. 
Project 04–D–104, national security sciences 
building, Los Alamos National Laboratory, Los Ala-
mos, New Mexico, $38,000,000. 
Project 04–D–125, chemistry and metallurgy fa-
cility replacement project, Los Alamos National Lab-
oratory, Los Alamos, New Mexico, $20,500,000.
497
Project 04–D–126, Building 12-44 production 
cells 
upgrade, 
Pantex 
plant, 
Amarillo, 
Texas, 
$8,780,000. 
Project 04–D–127, cleaning and loading modi-
fications, Savannah River Site, Aiken, South Caro-
lina, $2,750,000. 
Project 04–D–128, TA–18 Mission relocation 
project, Los Alamos National Laboratory, Los Ala-
mos, New Mexico, $8,820,000. 
Project 04–D–203, facilities and infrastructure 
recapitalization program, project engineering and de-
sign, various locations, $3,719,000.
SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are 
hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2004 for environmental management 
activities in carrying out programs necessary for national 
security in the amount of $6,819,314,000, to be allocated 
as follows: 
(1) For defense site acceleration completion, 
$5,824,135,000. 
(2) 
For 
defense 
environmental 
services, 
$995,179,000. 
(b) AUTHORIZATION
OF NEW PLANT PROJECTS.—
From funds referred to in subsection (a) that are available
498
for carrying out plant projects, the Secretary of Energy 
may carry out, for defense site acceleration completion, the 
following new plant projects: 
Project 04–D–408, glass waste storage building 
#2, Savannah River Site, Aiken, South Carolina, 
$20,259,000. 
Project 04–D–414, project engineering and de-
sign, various locations, $23,500,000. 
Project 04–D–423, 3013 container surveillance 
capability in 235-F, Savannah River Site, Aiken, 
South Carolina, $1,134,000.
SEC. 3103. OTHER DEFENSE ACTIVITIES. 
Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2004 for other defense 
activities in carrying out programs necessary for national 
security in the amount of $497,331,000.
SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL. 
Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2004 for defense nu-
clear waste disposal for payment to the Nuclear Waste Fund 
established in section 302(c) of the Nuclear Waste Policy 
Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$430,000,000.
499
SEC. 3105. ENERGY SUPPLY. 
Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 2004 for energy sup-
ply activities in carrying out programs necessary for na-
tional security in the amount of $110,473,000.
Subtitle 
B—Program 
Authoriza-
tions, Restrictions, and Limita-
tions
SEC. 3111. MODIFICATION OF PROHIBITION RELATING TO 
LOW-YIELD NUCLEAR WEAPONS. 
Section 3136 of the National Defense Authorization 
Act for Fiscal Year 1994 (42 U.S.C. 2121 note) is amend-
ed—
(1) in the section heading, by striking ‘‘RE-
SEARCH AND DEVELOPMENT’’ and inserting ‘‘DE-
VELOPMENT AND PRODUCTION’’; 
(2) in subsection (a), by striking ‘‘conduct re-
search and development which could lead to the pro-
duction by the United States of’’ and insert ‘‘develop 
or produce’’; 
(3) in subsection (b)—
(A) by striking ‘‘conduct, or provide for the 
conduct of, research and development which 
could lead to the production by the United States 
of’’ and insert ‘‘develop, produce, or provide for 
the development or production of,’’; and
500
(B) by striking ‘‘the date of the enactment 
of this Act,’’ and inserting ‘‘November 30, 
1993,’’; 
(4) in subsection (c)—
(A) by striking ‘‘RESEARCH AND’’ in the 
subsection heading; 
(B) by striking ‘‘research and’’ in the mat-
ter preceding paragraph (1); and 
(C) by inserting ‘‘, including assessment of 
low-yield nuclear weapons development by other 
nations that may pose a national security risk 
to the United States’’ before the period at the end 
of paragraph (3); 
(5) by redesignating subsection (d) as subsection 
(e); and 
(6) by inserting after subsection (c) the following 
new subsection (d): 
‘‘(d) EFFECT ON STUDIES AND DESIGN WORK.—Noth-
ing in this section shall prohibit the Secretary of Energy 
from conducting, or providing for the conduct of, concept 
definition studies, feasibility studies, or detailed engineer-
ing design work.’’.