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(N) The rapid insertion and integration, if any, 
of developmental but mission-essential equipment dur-
ing all phases of the operation. 
(O) The most critical lessons learned that could 
lead to long-term doctrinal, organizational, and tech-
nological changes, and the probable effects that an im-
plementation of those changes would have on current 
visions, goals, and plans for transformation of the 
Armed Forces. 
(P) The results of a study, carried out by the 
Secretary of Defense, regarding the availability of 
family support services provided to the dependents of 
members of the National Guard and other reserve 
components of the Armed Forces who are called or or-
dered to active duty (hereinafter in this subparagraph 
referred to as ‘‘mobilized members’’), including, at a 
minimum, the following matters: 
(i) A discussion of the extent to which coop-
erative agreements are in place or need to be en-
tered into to ensure that dependents of mobilized 
members receive adequate family support services 
from within existing family readiness groups at 
military installations without regard to the 
members’ armed force or component of an armed 
force.
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(ii) A discussion of what additional family 
support services, and what additional family 
support agreements between and among the 
Armed Forces (including the Coast Guard), are 
necessary to ensure that adequate family support 
services are provided to the families of mobilized 
members. 
(iii) A discussion of what additional re-
sources are necessary to ensure that adequate 
family support services are available to the de-
pendents of each mobilized member at the mili-
tary installation nearest the residence of the de-
pendents. 
(iv) The additional outreach programs that 
should be established between families of mobi-
lized members and the sources of family support 
services at the military installations in their re-
spective regions. 
(v) A discussion of the procedures in place 
for providing information on availability of 
family support services to families of mobilized 
members at the time the members are called or 
ordered to active duty.
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(c) FORMS OF REPORT.—The report shall be submitted 
in unclassified form, but may also be submitted in classified 
form if necessary. 
(d) REPORTING REQUIREMENT RELATING TO NON-
COMPETITIVE CONTRACTING FOR THE RECONSTRUCTION OF 
INFRASTRUCTURE OF IRAQ.—(1) If a contract for the main-
tenance, rehabilitation, construction, or repair of infra-
structure in Iraq is entered into under the oversight and 
direction of the Secretary of Defense or the Office of Recon-
struction and Humanitarian Assistance in the Office of the 
Secretary of Defense without full and open competition, the 
Secretary 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 entered into, the following information: 
(i) The amount of the contract. 
(ii) A brief description of the scope of the con-
tract. 
(iii) A discussion of how the executive agency 
identified, and solicited offers from, potential contrac-
tors to perform the contract, together with a list of the 
potential contractors that were issued solicitations for 
the offers. 
(iv) The justification and approval documents on 
which was based the determination to use procedures
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other than procedures that provide for full and open 
competition. 
(B) Subparagraph (A) does not apply to a contract 
entered into more than one year after date of enactment. 
(2)(A) The head of an executive agency may—
(i) withhold from publication and disclosure 
under paragraph (1) any document that is classified 
for restricted access in accordance with an Executive 
order in the interest of national defense or foreign 
policy; and 
(ii) redact any part so classified that is in a 
document not so classified before publication and dis-
closure of the document under paragraph (1). 
(B) In any case in which the head of an executive 
agency withholds information under subparagraph (A), the 
head of such executive agency shall make available an 
unredacted version of the document containing that infor-
mation to the chairman and ranking member of each of 
the following committees of Congress: 
(i) The Committee on Governmental Affairs of 
the Senate and the Committee on Government Reform 
of the House of Representatives. 
(ii) The Committees on Appropriations of the 
Senate and the House of Representatives.
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(iii) Each committee that the head of the execu-
tive agency determines has legislative jurisdiction for 
the operations of such department or agency to which 
the information relates. 
(3) This subsection 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, paragraph (1) shall be applied as if the contract 
had been entered into on the date of the enactment of this 
Act. 
(4) Nothing in this subsection shall be construed as af-
fecting obligations to disclose United States Government in-
formation under any other provision of law. 
(5) In this subsection, the terms ‘‘executive agency’’ 
and ‘‘full and open competition’’ have the meanings given 
such terms in section 4 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403). 
SEC. 1024. REPORT ON MOBILIZATION OF THE RESERVES. 
(a) REQUIREMENT FOR REPORT.—Not later than 90 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a 
report on the mobilization of reserve component forces dur-
ing fiscal years 2002 and 2003.
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(b) CONTENT.—The report under subsection (a) shall 
include, for the period covered by the report, the following 
information: 
(1) The number of Reserves who were called or 
ordered to active duty under a provision of law re-
ferred to in section 101(a)(13)(B) of title 10, United 
States Code. 
(2) The number of such Reserves who were called 
or ordered to active duty for one year or more, in-
cluding any extensions on active duty. 
(3) The military specialties of the Reserves 
counted under paragraph (2). 
(4) The number of Reserves who were called or 
ordered to active duty more than once under a provi-
sion of law referred to in section 101(a)(13)(B) of 
title 10, United States Code. 
(5) The military specialties of the Reserves 
counted under paragraph (4). 
(6) The known effects on the reserve components, 
including the effects on recruitment and retention of 
personnel for the reserve components, that have re-
sulted from—
(A) the calls and orders of Reserves to active 
duty; and
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(B) the tempo of the service of the Reserves 
on the active duty to which called or ordered. 
(7) The changes in the Armed Forces, including 
any changes in the allocation of roles and missions 
between the active components and the reserve compo-
nents of the Armed Forces, that are envisioned by the 
Secretary of Defense on the basis of—
(A) the effects discussed under paragraph 
(6); or 
(B) the experienced need for calling and or-
dering Reserves to active duty during the period. 
(8) An assessment of how necessary it would be 
to call or order Reserves to active duty in the event 
of a war or contingency operation (as defined in sec-
tion 101(a)(13) of title 10, United States Code) if 
such changes were implemented. 
(9) On the basis of the experience of calling and 
ordering Reserves to active duty during the period, an 
assessment of the process for calling and ordering Re-
serves to active duty, preparing such Reserves for the 
active duty, processing the Reserves into the force 
upon entry onto active duty, and deploying the Re-
serves, including an assessment of the adequacy of the 
alert and notification process from the perspectives of
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the individual Reserves, reserve component units, and 
employers of Reserves. 
SEC. 1025. STUDY OF BERYLLIUM INDUSTRIAL BASE. 
(a) REQUIREMENT FOR STUDY.—The Secretary of De-
fense shall conduct a study of the adequacy of the industrial 
base of the United States to meet defense requirements of 
the United States for beryllium. 
(b) REPORT.—Not later than January 30, 2004, the 
Secretary shall submit a report on the results of the study 
to Congress. The report shall contain, at a minimum, the 
following information: 
(1) A discussion of the issues identified with re-
spect to the long-term supply of beryllium. 
(2) An assessment of the need, if any, for mod-
ernization of the primary sources of production of be-
ryllium. 
(3) A discussion of the advisability of, and con-
cepts for, meeting the future defense requirements of 
the United States for beryllium and maintaining a 
stable domestic industrial base of sources of beryllium 
through—
(A) cooperative arrangements commonly re-
ferred to as public-private partnerships;
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(B) the administration of the National De-
fense Stockpile under the Strategic and Critical 
Materials Stock Piling Act; and 
(C) any other means that the Secretary 
identifies as feasible. 
Subtitle D—Other Matters 
SEC. 1031. BLUE FORCES TRACKING INITIATIVE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) For military commanders, a principal pur-
pose of technology is to enable the commanders to as-
certain the location of the units in their commands 
in near real time. 
(2) Each of the Armed Forces is developing and 
testing a variety of technologies for tracking friendly 
forces (known as ‘‘blue forces’’). 
(3) Situational awareness of blue forces has been 
much improved since the 1991 Persian Gulf War, but 
blue forces tracking remains a complex problem char-
acterized by information that is incomplete, not fully 
accurate, or untimely. 
(4) Casualties in recent warfare have declined, 
but casualties associated with friendly fire incidents 
have remained relatively constant. 
(5) Despite significant investment, a coordi-
nated, interoperable plan for tracking blue forces
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throughout a United States or coalition forces theater 
of operations has not been developed. 
(b) GOAL.—It shall be a goal of the Department of De-
fense to fully coordinate the various efforts of the Joint 
Staff, the commanders of the combatant commands, and the 
military departments to develop an effective blue forces 
tracking system. 
(c) JOINT BLUE FORCES TRACKING EXPERIMENT.—
(1) The Secretary of Defense, through the Commander of 
the United States Joint Forces Command, shall carry out 
a joint experiment in fiscal year 2004 to demonstrate and 
evaluate available joint blue forces tracking technologies. 
(2) The objectives of the experiment are as follows: 
(A) To explore various options for tracking 
United States and other friendly forces during combat 
operations. 
(B) To determine an optimal, achievable, and 
ungradable solution for the development, acquisition, 
and fielding of a system for tracking all United 
States military forces that is coordinated and inter-
operable and also accommodates the participation of 
military forces of allied nations with United States 
forces in combat operations. 
(d) REPORT.—Not later than 60 days after the conclu-
sion of the experiment under subsection (c), but not later
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than December 1, 2004, the Secretary shall submit to the 
congressional defense committees a report on the results of 
the experiment, together with a comprehensive plan for the 
development, acquisition, and fielding of a functional, near 
real time blue forces tracking system. 
SEC. 1032. LOAN, DONATION, OR EXCHANGE OF OBSOLETE 
OR SURPLUS PROPERTY. 
During fiscal years 2004 and 2005, the Secretary of 
the military department concerned may exchange for an 
historical artifact any obsolete or surplus property held by 
such military department in accordance with section 2572 
of title 10, United States Code, without regard to whether 
the property is described in subsection (c) of such section. 
SEC. 1033. ACCEPTANCE OF GIFTS AND DONATIONS. 
(a) AUTHORIZED SOURCES
OF GIFTS
AND DONA-
TIONS.—Subsection (a) of section 2611 of title 10, United 
States Code, is amended—
(1) in paragraph (1), by striking ‘‘foreign gifts 
and donations’’ and inserting ‘‘gifts and donations 
from sources described in paragraph (2)’’; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
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‘‘(2) The sources from which gifts and donations may 
be accepted under paragraph (1) are as follows: 
‘‘(A) A department or agency of the Federal Gov-
ernment. 
‘‘(B) The government of a State or of a political 
subdivision of a State. 
‘‘(C) The government of a foreign country. 
‘‘(D) A foundation or other charitable organiza-
tion, including a foundation or charitable organiza-
tion that is organized or operates under the laws of 
a foreign country. 
‘‘(E) Any source in the private sector of the 
United States or a foreign country.’’. 
(b) CONFORMING AMENDMENTS.—(1) The headings for 
subsections (a) and (f) of such section are amended by strik-
ing ‘‘FOREIGN’’. 
(2) Subsection (c) is amended by striking ‘‘foreign’’. 
(3) Subsection (f) is amended—
(A) by striking ‘‘foreign’’; and 
(B) by striking ‘‘faculty services)’’ and all that 
follows and inserting ‘‘faculty services).’’. 
(4)(A) The heading of such section is amended to read 
as follows:
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‘‘§ 2611. Asia-Pacific Center for Security Studies: ac-
ceptance of gifts and donations’’. 
(B) The item relating to such section in the table of 
sections at the beginning of chapter 155 is amended to read 
as follows:
‘‘2611. Asia-Pacific Center for Security Studies: acceptance of gifts and dona-
tions.’’.
(c) ACCEPTANCE OF GUARANTEES WITH GIFTS IN DE-
VELOPMENT OF MARINE CORPS HERITAGE CENTER, MA-
RINE CORPS BASE, QUANTICO, VIRGINIA.—(1) The Sec-
retary of the Navy may utilize the authority in section 6975 
of title 10, United States Code, for purposes of the project 
to develop the Marine Corps Heritage Center at Marine 
Corps Base, Quantico, Virginia, authorized by section 2884 
of the Military Construction Authorization Act for Fiscal 
Year 2001 (division B 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–440). 
(2) The authority in paragraph (1) shall expire on De-
cember 31, 2006. 
(3) The expiration under paragraph (2) of the author-
ity in paragraph (1) shall not effect any qualified guar-
antee accepted pursuant to such authority for purposes of 
the project referred to in paragraph (1) before the date of 
the expiration of such authority under paragraph (2).
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SEC. 1034. PROVISION OF LIVING QUARTERS FOR CERTAIN 
STUDENTS WORKING AT NATIONAL SECURITY 
AGENCY LABORATORY. 
Section 2195 of title 10, United States Code, is amend-
ed by adding at the end the following new subsection: 
‘‘(d)(1) The Director of the National Security Agency 
may provide living quarters to a student in the Student 
Educational Employment Program or similar program (as 
prescribed by the Office of Personnel Management) while 
the student is employed at the laboratory of the Agency. 
‘‘(2) Notwithstanding section 5911(c) of title 5, living 
quarters may be provided under paragraph (1) without 
charge, or at rates or charges specified in regulations pre-
scribed by the Director.’’. 
SEC. 1035. PROTECTION OF OPERATIONAL FILES OF THE 
NATIONAL SECURITY AGENCY. 
(a) CONSOLIDATION
OF CURRENT PROVISIONS
ON 
PROTECTION OF OPERATIONAL FILES.—The National Se-
curity Act of 1947 (50 U.S.C. 401 et seq.) is amended by 
transferring sections 105C and 105D to the end of title VII 
and redesignating such sections, as so transferred, as sec-
tions 703 and 704, respectively. 
(b) PROTECTION OF OPERATIONAL FILES OF NSA.—
Title VII of such Act, as amended by subsection (a), is fur-
ther amended by adding at the end the following new sec-
tion:
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‘‘OPERATIONAL FILES OF THE NATIONAL SECURITY AGENCY 
‘‘SEC. 705. (a) EXEMPTION OF CERTAIN OPERATIONAL 
FILES FROM SEARCH, REVIEW, PUBLICATION, OR DISCLO-
SURE.—(1) Operational files of the National Security Agen-
cy (hereafter in this section referred to as ‘NSA’) may be 
exempted by the Director of NSA, in coordination with the 
Director of Central Intelligence, from the provisions of sec-
tion 552 of title 5, United States Code, which require publi-
cation, disclosure, search, or review in connection therewith. 
‘‘(2)(A) In this section, the term ‘operational files’ 
means—
‘‘(i) files of the Signals Intelligence Directorate, 
and its successor organizations, which document the 
means by which foreign intelligence or counterintel-
ligence is collected through technical systems; and 
‘‘(ii) files of the Research Associate Directorate, 
and its successor organizations, which document the 
means by which foreign intelligence or counterintel-
ligence is collected through scientific and technical 
systems. 
‘‘(B) Files which are the sole repository of dissemi-
nated intelligence, and files that have been accessioned into 
NSA Archives, or its successor organizations, are not oper-
ational files.
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‘‘(3) Notwithstanding paragraph (1), exempted oper-
ational files shall continue to be subject to search and review 
for information concerning—
‘‘(A) United States citizens or aliens lawfully 
admitted for permanent residence who have requested 
information on themselves pursuant to the provisions 
of section 552 or 552a of title 5, United States Code; 
‘‘(B) any special activity the existence of which 
is not exempt from disclosure under the provisions of 
section 552 of title 5, United States Code; or 
‘‘(C) the specific subject matter of an investiga-
tion by any of the following for any impropriety, or 
violation of law, Executive order, or Presidential di-
rective, in the conduct of an intelligence activity: 
‘‘(i) The Committee on Armed Services and 
the Permanent Select Committee on Intelligence 
of the House of Representatives. 
‘‘(ii) The Committee on Armed Services and 
the Select Committee on Intelligence of the Sen-
ate. 
‘‘(iii) The Intelligence Oversight Board. 
‘‘(iv) The Department of Justice. 
‘‘(v) The Office of General Counsel of NSA. 
‘‘(vi) The Office of the Inspector General of 
the Department of Defense.
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‘‘(vii) The Office of the Director of NSA. 
‘‘(4)(A) Files that are not exempted under paragraph 
(1) which contain information derived or disseminated 
from exempted operational files shall be subject to search 
and review. 
‘‘(B) The inclusion of information from exempted oper-
ational files in files that are not exempted under paragraph 
(1) shall not affect the exemption under paragraph (1) of 
the originating operational files from search, review, publi-
cation, or disclosure. 
‘‘(C) The declassification of some of the information 
contained in exempted operational files shall not affect the 
status of the operational file as being exempt from search, 
review, publication, or disclosure. 
‘‘(D) Records from exempted operational files which 
have been disseminated to and referenced in files that are 
not exempted under paragraph (1), and which have been 
returned to exempted operational files for sole retention 
shall be subject to search and review. 
‘‘(5) The provisions of paragraph (1) may not be su-
perseded except by a provision of law which is enacted after 
the date of the enactment of the National Defense Authoriza-
tion Act for Fiscal Year 2004, and which specifically cites 
and repeals or modifies such provisions.
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‘‘(6)(A) Except as provided in subparagraph (B), 
whenever any person who has requested agency records 
under section 552 of title 5, United States Code, alleges that 
NSA has withheld records improperly because of failure to 
comply with any provision of this section, judicial review 
shall be available under the terms set forth in section 
552(a)(4)(B) of title 5, United States Code. 
‘‘(B) Judicial review shall not be available in the man-
ner provided for under subparagraph (A) as follows: 
‘‘(i) In any case in which information specifi-
cally authorized under criteria established by an Ex-
ecutive order to be kept secret in the interests of na-
tional defense or foreign relations is filed with, or 
produced for, the court by NSA, such information 
shall be examined ex parte, in camera by the court. 
‘‘(ii) The court shall determine, to the fullest ex-
tent practicable, the issues of fact based on sworn 
written submissions of the parties. 
‘‘(iii) When a complainant alleges that requested 
records are improperly withheld because of improper 
placement solely in exempted operational files, the 
complainant shall support such allegation with a 
sworn written submission based upon personal knowl-
edge or otherwise admissible evidence.
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‘‘(iv)(I) When a complainant alleges that re-
quested records were improperly withheld because of 
improper exemption of operational files, NSA shall 
meet its burden under section 552(a)(4)(B) of title 5, 
United States Code, by demonstrating to the court by 
sworn written submission that exempted operational 
files likely to contain responsible records currently 
perform the functions set forth in paragraph (2). 
‘‘(II) The court may not order NSA to review the 
content of any exempted operational file or files in 
order to make the demonstration required under sub-
clause (I), unless the complainant disputes NSA’s 
showing with a sworn written submission based on 
personal knowledge or otherwise admissible evidence. 
‘‘(v) In proceedings under clauses (iii) and (iv), 
the parties may not obtain discovery pursuant to 
rules 26 through 36 of the Federal Rules of Civil Pro-
cedure, except that requests for admissions may be 
made pursuant to rules 26 and 36. 
‘‘(vi) If the court finds under this paragraph 
that NSA has improperly withheld requested records 
because of failure to comply with any provision of 
this subsection, the court shall order NSA to search 
and review the appropriate exempted operational file 
or files for the requested records and make such
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records, or portions thereof, available in accordance 
with the provisions of section 552 of title 5, United 
States Code, and such order shall be the exclusive 
remedy for failure to comply with this subsection. 
‘‘(vii) If at any time following the filing of a 
complaint pursuant to this paragraph NSA agrees to 
search the appropriate exempted operational file or 
files for the requested records, the court shall dismiss 
the claim based upon such complaint. 
‘‘(viii) Any information filed with, or produced 
for the court pursuant to clauses (i) and (iv) shall be 
coordinated with the Director of Central Intelligence 
before submission to the court. 
‘‘(b) DECENNIAL
REVIEW
OF
EXEMPTED
OPER-
ATIONAL FILES.—(1) Not less than once every 10 years, the 
Director of the National Security Agency and the Director 
of Central Intelligence shall review the exemptions in force 
under subsection (a)(1) to determine whether such exemp-
tions may be removed from a category of exempted files or 
any portion thereof. The Director of Central Intelligence 
must approve any determination to remove such exemp-
tions. 
‘‘(2) The review required by paragraph (1) shall in-
clude consideration of the historical value or other public 
interest in the subject matter of a particular category of
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files or portions thereof and the potential for declassifying 
a significant part of the information contained therein. 
‘‘(3) A complainant that alleges that NSA has improp-
erly withheld records because of failure to comply with this 
subsection may seek judicial review in the district court of 
the United States of the district in which any of the parties 
reside, or in the District of Columbia. In such a proceeding, 
the court’s review shall be limited to determining the fol-
lowing: 
‘‘(A) Whether NSA has conducted the review re-
quired by paragraph (1) before the expiration of the 
10-year period beginning on the date of the enactment 
of the National Defense Authorization Act for Fiscal 
Year 2004 or before the expiration of the 10-year pe-
riod beginning on the date of the most recent review. 
‘‘(B) Whether NSA, in fact, considered the cri-
teria set forth in paragraph (2) in conducting the re-
quired review.’’. 
(c) CONFORMING AMENDMENTS.—(1) Section 701(b) of 
the National Security Act of 1947 (50 U.S.C. 431(b)) is 
amended by striking ‘‘For purposes of this title’’ and insert-
ing ‘‘In this section and section 702,’’. 
(2) Section 702(c) of such Act (50 U.S.C. 432(c)) is 
amended by striking ‘‘enactment of this title’’ and inserting 
‘‘October 15, 1984,’’.
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(3)(A) The title heading for title VII of such Act is 
amended to read as follows: 
‘‘TITLE VII—PROTECTION OF OPERATIONAL 
FILES’’. 
(B) The section heading for section 701 of such Act 
is amended to read as follows: 
‘‘PROTECTION OF OPERATIONAL FILES OF THE CENTRAL 
INTELLIGENCE AGENCY’’. 
(C) The section heading for section 702 of such Act 
is amended to read as follows: 
‘‘DECENNIAL REVIEW OF EXEMPTED CENTRAL 
INTELLIGENCE AGENCY OPERATIONAL FILES’’. 
(d) CLERICAL AMENDMENTS.—The table of contents 
for the National Security Act of 1947 is amended—
(1) by striking the items relating to sections 
105C and 105D; and 
(2) by striking the items relating to title VII and 
inserting the following new items:
‘‘TITLE VII—PROTECTION OF OPERATIONAL FILES 
‘‘Sec. 701. Protection of operational files of the Central Intelligence Agency. 
‘‘Sec. 702. Decennial review of exempted Central Intelligence Agency operational 
files. 
‘‘Sec. 703. Protection of operational files of the National Imagery and Mapping 
Agency. 
‘‘Sec. 704. Protection of operational files of the National Reconnaissance Office. 
‘‘Sec. 705. Protection of operational files of the National Security Agency.’’.
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SEC. 1036. TRANSFER OF ADMINISTRATION OF NATIONAL 
SECURITY EDUCATION PROGRAM TO DIREC-
TOR OF CENTRAL INTELLIGENCE. 
(a) IN GENERAL.—Section 802 of the David L. Boren 
National Security Education Act of 1991 (title VIII of Pub-
lic Law 102–183; 50 U.S.C. 1902) is amended—
(1) in subsection (a), by striking ‘‘Secretary of 
Defense’’ and inserting ‘‘Director of Central Intel-
ligence’’; and 
(2) by striking ‘‘Secretary’’ each place it appears 
(other than in subsection (h)) and inserting ‘‘Direc-
tor’’. 
(b) AWARDS TO ATTEND FOREIGN LANGUAGE CEN-
TER.—Section 802(h) of such Act (50 U.S.C. 1902(h)) is 
amended by inserting ‘‘of Defense’’ after ‘‘Secretary’’ each 
place it appears. 
(c) NATIONAL SECURITY EDUCATION BOARD.—(1) 
Section 803 of such Act (50 U.S.C. 1903) is amended—
(A) in subsection (a), by striking ‘‘Secretary of 
Defense’’ and inserting ‘‘Director’’; 
(B) in subsection (b)—
(i) in paragraph (1), by striking ‘‘Secretary 
of Defense’’ and inserting ‘‘Director’’; 
(ii) 
by 
redesignating 
paragraphs 
(2) 
through (7) as paragraphs (3) through (8), re-
spectively; and
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(iii) by inserting after paragraph (1), as so 
amended, the following new paragraph (2): 
‘‘(2) The Secretary of Defense.’’; 
(C) in subsection (c), by striking ‘‘subsection 
(b)(6)’’ and inserting ‘‘subsection (b)(8)’’; and 
(D) in subsection (d), by striking ‘‘Secretary’’ 
each place it appears and inserting ‘‘Director’’. 
(2) Section 806(d) of such Act (50 U.S.C. 1906(d)) is 
amended by striking ‘‘paragraphs (1) through (7)’’ and in-
serting ‘‘paragraphs (2) through (8)’’. 
(d) ADMINISTRATIVE PROVISIONS.—Section 805 of 
such Act (50 U.S.C. 1905) is amended by striking ‘‘Sec-
retary’’ each place it appears and inserting ‘‘Director’’. 
(e) ANNUAL REPORT.—Section 806 of such Act (50 
U.S.C. 1906) is amended by striking ‘‘Secretary’’ each place 
it appears and inserting ‘‘Director’’. 
(f) AUDITS.—Section 807 of such Act (50 U.S.C. 1907) 
is amended by striking ‘‘Department of Defense’’ and in-
serting ‘‘Central Intelligence Agency’’. 
(g) DEFINITION.—Section 808 of such Act (50 U.S.C. 
1908) is amended—
(1) by redesignating paragraphs (1) through (4) 
as paragraphs (2) through (5), respectively; and 
(2) by inserting before paragraph (2) the fol-
lowing new paragraph (1):
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‘‘(1) The term ‘Director’ means the Director of 
Central Intelligence.’’. 
(h) MATTERS RELATING TO NATIONAL FLAGSHIP LAN-
GUAGE INITIATIVE.—(1) Effective as if included therein as 
enacted by section 333(a) of the Intelligence Authorization 
Act for Fiscal Year 2003 (Public Law 107–306; 116 Stat. 
2396), section 802(i)(1) of the David L. Boren National Se-
curity Education Act of 1991 is amended by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’. 
(2) Effective as if included therein as enacted by sec-
tion 333(b) of the Intelligence Authorization Act for Fiscal 
Year 2003 (116 Stat. 2397), section 811(a) of the David 
L. Boren National Security Education Act of 1991 is 
amended by striking ‘‘Secretary’’ each place it appears and 
inserting ‘‘Director’’. 
(i) EFFECT OF TRANSFER OF ADMINISTRATION ON 
SERVICE AGREEMENTS.—(1) The transfer to the Director 
of Central Intelligence of the administration of the National 
Security Education Program as a result of the amendments 
made by this section shall not affect the force, validity, or 
terms of any service agreement entered into under section 
802(b) of the David L. Boren National Security Education 
Act of 1991 (title VIII of Public Law 102–183; 50 U.S.C. 
1902(b)) before the date of the enactment of this Act that 
is in force as of that date, except that the Director shall
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administer such service agreement in lieu of the Secretary 
of Defense. 
(2) Notwithstanding any other provision of law, the 
Director of Central Intelligence may, for purposes of the im-
plementation of any service agreement referred to in para-
graph (1), adopt regulations for the implementation of such 
service agreement that were prescribed by the Secretary of 
Defense under the David L. Boren National Security Edu-
cation Act of 1991 before the date of the enactment of this 
Act. 
(j) REPEAL OF SATISFIED REQUIREMENTS.—Section 
802(g) of the David L. Boren National Security Education 
Act of 1991 (title VIII of Public Law 102–183; 50 U.S.C. 
1902(g)) is amended—
(1) in paragraph (1)—
(A) by striking ‘‘(1)’’; and 
(B) by striking the second sentence; and 
(2) by striking paragraph (2). 
(k) TECHNICAL AMENDMENT.—Paragraph (5)(A) of 
section 808 of such Act, as redesignated by subsection (g)(1) 
of this section, is further amended by striking ‘‘a agency’’ 
and inserting ‘‘an agency’’.
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SEC. 1037. REPORT ON USE OF UNMANNED AERIAL VEHI-
CLES FOR SUPPORT OF HOMELAND SECURITY 
MISSIONS. 
(a) REQUIREMENT
FOR REPORT.—Not later than 
April 1, 2004, the President shall submit to Congress a re-
port on the potential uses of unmanned aerial vehicles for 
support of the performance of homeland security missions. 
(b) CONTENT.—The report shall, at a minimum, in-
clude the following matters: 
(1) An assessment of the potential for using un-
manned aerial vehicles for monitoring activities in 
remote areas along the northern and southern borders 
of the United States. 
(2) An assessment of the potential for using long-
endurance, land-based unmanned aerial vehicles for 
supporting the Coast Guard in the performance of its 
homeland security missions, drug interdiction mis-
sions, and other maritime missions along the ap-
proximately 95,000 miles of inland waterways in the 
United States. 
(3) An assessment of the potential for using un-
manned aerial vehicles for monitoring the safety and 
integrity of critical infrastructure within the territory 
of the United States, including the following: 
(A) Oil and gas pipelines. 
(B) Dams.
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(C) Hydroelectric power plants. 
(D) Nuclear power plants. 
(E) Drinking water utilities. 
(F) Long-distance power transmission lines. 
(4) An assessment of the potential for using un-
manned aerial vehicles for monitoring the transpor-
tation of hazardous cargo. 
(5) A discussion of the safety issues involved 
in—
(A) the use of unmanned aerial vehicles by 
agencies other than the Department of Defense; 
and 
(B) the operation of unmanned aerial vehi-
cles over populated areas of the United States. 
(6) A discussion of—
(A) the effects on privacy and civil liberties 
that could result from the monitoring uses of un-
manned aerial vehicles operated over the terri-
tory of the United States; and 
(B) any restrictions on the domestic use of 
unmanned aerial vehicles that should be im-
posed, or any other actions that should be taken, 
to prevent any adverse effect of such a use of un-
manned aerial vehicles on privacy or civil lib-
erties.
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(7) A discussion of what, if any, legislation and 
organizational changes may be necessary to accommo-
date the use of unmanned aerial vehicles of the De-
partment of Defense in support of the performance of 
homeland security missions, including any amend-
ment of section 1385 of title 18, United States Code 
(popularly referred to as the ‘‘Posse Comitatus Act’’). 
(8) An evaluation of the capabilities of manufac-
turers of unmanned aerial vehicles to produce such 
vehicles at higher rates if necessary to meet any in-
creased requirements for homeland security and home-
land defense missions. 
(c) REFERRAL TO COMMITTEES.—The report under 
subsection (a) shall be referred—
(1) upon receipt in the Senate, to the Committee 
on Armed Services of the Senate; and 
(2) upon receipt in the House of Representatives, 
to the Committee on Armed Services of the House of 
Representatives. 
SEC. 1038. CONVEYANCE OF SURPLUS T–37 AIRCRAFT TO 
AIR FORCE AVIATION HERITAGE FOUNDA-
TION, INCORPORATED. 
(a) AUTHORITY.—The Secretary of the Air Force may 
convey, without consideration, to the Air Force Aviation 
Heritage Foundation, Incorporated, of Georgia (in this sec-
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tion referred to as the ‘‘Foundation’’), all right, title, and 
interest of the United States in and to one surplus T–37 
‘‘Tweet’’ aircraft. The conveyance shall be made by means 
of a conditional deed of gift. 
(b) CONDITION OF AIRCRAFT.—The Secretary may not 
convey ownership of the aircraft under subsection (a) until 
the Secretary determines that the Foundation has altered 
the aircraft in such manner as the Secretary determines 
necessary to ensure that the aircraft does not have any ca-
pability for use as a platform for launching or releasing 
munitions or any other combat capability that it was de-
signed to have. The Secretary is not required to repair or 
alter the condition of the aircraft before conveying owner-
ship of the aircraft. 
(c) CONDITIONS FOR CONVEYANCE.—(1) The convey-
ance of a T–37 aircraft under this section shall be subject 
to the following conditions: 
(A) That the Foundation not convey any owner-
ship interest in, or transfer possession of, the aircraft 
to any other party without the prior approval of the 
Secretary of the Air Force. 
(B) That the operation and maintenance of the 
aircraft comply with all applicable limitations and 
maintenance requirements imposed by the Adminis-
trator of the Federal Aviation Administration.
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(C) That if the Secretary of the Air Force deter-
mines at any time that the Foundation has conveyed 
an ownership interest in, or transferred possession of, 
the aircraft to any other party without the prior ap-
proval of the Secretary, or has failed to comply with 
the condition set forth in subparagraph (B), all right, 
title, and interest in and to the aircraft, including 
any repair or alteration of the aircraft, shall revert 
to the United States, and the United States shall have 
the right of immediate possession of the aircraft. 
(2) The Secretary shall include the conditions under 
paragraph (1) in the instrument of conveyance of the T–
37 aircraft. 
(d) CONVEYANCE
AT NO COST
TO
THE UNITED 
STATES.—Any conveyance of a T–37 aircraft under this 
section shall be made at no cost to the United States. Any 
costs associated with such conveyance, costs of determining 
compliance by the Foundation with the conditions in sub-
section (b), and costs of operation and maintenance of the 
aircraft conveyed shall be borne by the Foundation. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Sec-
retary of the Air Force may require such additional terms 
and conditions in connection with the conveyance under 
this section as the Secretary considers appropriate to pro-
tect the interests of the United States.
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(f) CLARIFICATION OF LIABILITY.—Notwithstanding 
any other provision of law, upon the conveyance of owner-
ship of a T–37 aircraft to the Foundation under subsection 
(a), the United States shall not be liable for any death, in-
jury, loss, or damage that results from any use of that air-
craft by any person other than the United States. 
SEC. 1039. SENSE OF SENATE ON REWARD FOR INFORMA-
TION LEADING TO RESOLUTION OF STATUS 
OF MEMBERS OF THE ARMED FORCES WHO 
REMAIN MISSING IN ACTION. 
(a) FINDINGS.—The Senate makes the following find-
ings: 
(1) The Department of Defense estimates that 
there are more than 10,000 members of the Armed 
Forces and others who as a result of activities during 
the Korean War or the Vietnam War were placed in 
a missing status or a prisoner of war status, or who 
were determined to have been killed in action al-
though the body was not recovered, and who remain 
unaccounted for. 
(2) One member of the Armed Forces, Navy Cap-
tain Michael Scott Speicher, remains missing in ac-
tion from the first Persian Gulf War, and there have 
been credible reports of him being seen alive in Iraq
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in the years since his plane was shot down on Janu-
ary 16, 1991. 
(3) The United States should always pursue 
every lead and leave no stone unturned to completely 
account for the fate of its missing members of the 
Armed Forces. 
(4) The Secretary of Defense has the authority to 
disburse funds as a reward to individuals who pro-
vide information leading to the conclusive resolution 
of cases of missing members of the Armed Forces. 
(b) SENSE OF SENATE.—It is the sense of the Senate—
(1) that the Secretary of Defense should use the 
authority available to the Secretary to disburse funds 
rewarding individuals who provide information lead-
ing to the conclusive resolution of the status of any 
missing member of the Armed Forces; and 
(2) to encourage the Secretary to authorize and 
publicize a reward of $1,000,000 for information re-
solving the fate of those members of the Armed Forces, 
such as Michael Scott Speicher, who the Secretary has 
reason to believe may yet be alive in captivity. 
SEC. 1040. ADVANCED SHIPBUILDING ENTERPRISE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) The President’s budget for fiscal year 2004, 
as submitted to Congress, includes $10,300,000 for the
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Advanced Shipbuilding Enterprise of the National 
Shipbuilding Research Program. 
(2) The Advanced Shipbuilding Enterprise is an 
innovative program to encourage greater efficiency 
among shipyards in the defense industrial base. 
(3) The leaders of the Nation’s shipbuilding in-
dustry have embraced the Advanced Shipbuilding En-
terprise as a method of exploring and collaborating 
on innovation in shipbuilding and ship repair that 
collectively benefits all manufacturers in the industry. 
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that—
(1) the Senate strongly supports the innovative 
Advanced Shipbuilding Enterprise of the National 
Shipbuilding Research Program that has yielded new 
processes and techniques to reduce the cost of building 
and repairing ships in the United States; 
(2) the Senate is concerned that the future-years 
defense program submitted to Congress for fiscal year 
2004 does not reflect any funding for the Advanced 
Shipbuilding Enterprise after fiscal year 2004; and 
(3) the Secretary of Defense and the Secretary of 
the Navy should continue funding the Advanced Ship-
building Enterprise at a sustaining level through the 
future-years defense program to support subsequent
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rounds of research that reduce the cost of designing, 
building, and repairing ships. 
SEC. 1041. AIR FARES FOR MEMBERS OF ARMED FORCES. 
It is the sense of the Senate that each United States 
air carrier should—
(1) make every effort to allow active duty mem-
bers of the armed forces to purchase tickets, on a 
space-available basis, for the lowest fares offered for 
the flights desired, without regard to advance pur-
chase requirements and other restrictions; and 
(2) offer flexible terms that allow members of the 
armed forces on active duty to purchase, modify, or 
cancel tickets without time restrictions, fees, or pen-
alties. 
SEC. 1042. SENSE OF SENATE ON DEPLOYMENT OF AIR-
BORNE CHEMICAL AGENT MONITORING SYS-
TEMS AT CHEMICAL STOCKPILE DISPOSAL 
SITES IN THE UNITED STATES. 
(a) FINDINGS.—The Senate makes the following find-
ings: 
(1) Millions of assembled chemical weapons are 
stockpiled at chemical agent disposal facilities and 
depot sites across the United States.
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(2) Some of these weapons are filled with nerve 
agents, such as GB and VX and blister agents such 
as HD (mustard agent). 
(3) Hundreds of thousands of United States citi-
zens live in the vicinity of these chemical weapons 
stockpile sites and depots. 
(4) The airborne chemical agent monitoring sys-
tems at these sites are inefficient or outdated com-
pared to newer and advanced technologies on the 
market. 
(b) SENSE OF SENATE.—It is the sense of the Senate 
that the Secretary of the Army should develop and deploy 
a program to upgrade the airborne chemical agent moni-
toring systems at all chemical stockpile disposal sites across 
the United States in order to achieve the broadest possible 
protection of the general public, personnel involved in the 
chemical demilitarization program, and the environment. 
SEC. 1043. FEDERAL ASSISTANCE FOR STATE PROGRAMS 
UNDER THE NATIONAL GUARD CHALLENGE 
PROGRAM. 
(a) MAXIMUM FEDERAL SHARE.—Section 509(d) of 
title 32, United States Code, is amended—
(1) by striking paragraphs (1), (2), and (3); 
(2) by redesignating paragraph (4) as para-
graph (1);
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(3) in paragraph (1), as so redesignated, by 
striking the period at the end and inserting ‘‘; and’’; 
and 
(4) by adding at the end the following new para-
graph (2); 
‘‘(2) for fiscal year 2004 (notwithstanding para-
graph (1)), 65 percent of the costs of operating the 
State program during that year.’’. 
(b) STUDY.—(1) The Secretary of Defense shall carry 
out a study to evaluate (A) the adequacy of the requirement 
under section 509(d) of title 32, United States Code, for 
the United States to fund 60 percent of the costs of oper-
ating a State program of the National Guard Challenge 
Program and the State to fund 40 percent of such costs, 
and (B) the value of the Challenge program to the Depart-
ment of Defense. 
(2) In carrying out the study under paragraph (1), 
the Secretary should identify potential alternatives to the 
matching funds structure provided for the National Guard 
Challenge Program under section 509(d) of title 32, United 
States Code, such as a range of Federal-State matching ra-
tios, that would provide flexibility in the management of 
the program to better respond to temporary fiscal condi-
tions.
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(3) The Secretary shall include the results of the study, 
including findings, conclusions, and recommendations, in 
the next annual report to Congress under section 509(k) of 
title 32, United States Code, that is submitted to Congress 
after the date of the enactment of this Act. 
(c) AMOUNT
FOR FEDERAL ASSISTANCE.—(1) The 
amount authorized to be appropriated under section 
301(10) is hereby increased by $3,000,000. 
(2) Of the total amount authorized to be appropriated 
under section 301(10), $68,216,000 shall be available for 
the National Guard Challenge Program under section 509 
of title 32, United States Code. 
(3) The total amount authorized to be appropriated 
under section 301(4) is hereby reduced by $3,000,000. 
SEC. 1044. SENSE OF SENATE ON RECONSIDERATION OF 
DECISION TO TERMINATE BORDER SEAPORT 
INSPECTION DUTIES OF NATIONAL GUARD 
UNDER NATIONAL GUARD DRUG INTERDIC-
TION AND COUNTER-DRUG MISSION. 
(a) FINDINGS.—The Senate makes the following find-
ings: 
(1) The counter-drug inspection mission of the 
National Guard is highly important to preventing the 
infiltration of illegal narcotics across United States 
borders.
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(2) The expertise of members of the National 
Guard in vehicle inspections at United States borders 
have made invaluable contributions to the identifica-
tion and seizure of illegal narcotics being smuggled 
across United States borders. 
(3) The support provided by the National Guard 
to the Customs Service and the Border Patrol has 
greatly enhanced the capability of the Customs Serv-
ice and the Border Patrol to perform counter-ter-
rorism surveillance and other border protection du-
ties. 
(b) SENSE OF SENATE.—It is the sense of the Senate 
that the Secretary of Defense should reconsider the decision 
of the Department of Defense to terminate the border inspec-
tion and seaport inspection duties of the National Guard 
as part of the drug interdiction and counter-drug mission 
of the National Guard. 
TITLE XI—DEPARTMENT OF DE-
FENSE CIVILIAN PERSONNEL 
POLICY 
SEC. 1101. AUTHORITY TO EMPLOY CIVILIAN FACULTY 
MEMBERS AT THE WESTERN HEMISPHERE IN-
STITUTE FOR SECURITY COOPERATION. 
Section 1595(c) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
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‘‘(6) The Western Hemisphere Institute for Secu-
rity Cooperation.’’. 
SEC. 1102. PAY AUTHORITY FOR CRITICAL POSITIONS. 
(a) AUTHORITY.—Chapter 81 of title 10, United States 
Code, is amended by adding at the end the following new 
section: 
‘‘§ 1599e. Pay authority for critical positions 
‘‘(a) AUTHORITY GENERALLY.—(1) When the Sec-
retary of Defense seeks a grant of authority under section 
5377 of title 5 for critical pay for one or more positions 
within the Department of Defense, the Director of the Office 
of Management and Budget may fix the rate of basic pay, 
notwithstanding sections 5377(d)(2) and 5307 of such title, 
at any rate up to the salary set in accordance with section 
104 of title 3. 
‘‘(2) Notwithstanding section 5307 of title 5, no allow-
ance, differential, bonus, award, or similar cash payment 
may be paid to any employee receiving critical pay at a 
rate fixed under paragraph (1), in any calendar year if, 
or to the extent that, the employee’s total annual compensa-
tion will exceed the maximum amount of total annual com-
pensation payable at the salary set in accordance with sec-
tion 104 of title 3. 
‘‘(b) TEMPORARY STREAMLINED CRITICAL PAY AU-
THORITY.—(1) The Secretary of Defense may establish, fix
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the compensation of, and appoint persons to positions des-
ignated as critical administrative, technical, or professional 
positions needed to carry out the functions of the Depart-
ment of Defense, subject to paragraph (2). 
‘‘(2) The authority under paragraph (1) may be exer-
cised with respect to a position only if—
‘‘(A) the position—
‘‘(i) requires expertise of an extremely high 
level in an administrative, technical, or profes-
sional field; and 
‘‘(ii) is critical to the successful accomplish-
ment of an important mission by the Depart-
ment of Defense; 
‘‘(B) the exercise of the authority is necessary to 
recruit or retain a person exceptionally well qualified 
for the position; 
‘‘(C) the number of all positions covered by the 
exercise of the authority does not exceed 40 at any one 
time; 
‘‘(D) in the case of a position designated as a 
critical administrative, technical, or professional po-
sition by an official other than the Secretary of De-
fense, the designation is approved by the Secretary; 
‘‘(E) the term of appointment to the position is 
limited to not more than four years;
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‘‘(F) the appointee to the position was not a De-
partment of Defense employee before the date of the 
enactment of the National Defense Authorization Act 
for Fiscal Year 2004; 
‘‘(G) the total annual compensation for the ap-
pointee to the position does not exceed the highest 
total annual compensation payable at the rate deter-
mined under section 104 of title 3; and 
‘‘(H) the position is excluded from collective bar-
gaining units. 
‘‘(3) The authority under this subsection may be exer-
cised without regard to—
‘‘(A) subsection (a); 
‘‘(B) the provisions of title 5 governing appoint-
ments in the competitive service or the Senior Execu-
tive Service; and 
‘‘(C) chapters 51 and 53 of title 5, relating to 
classification and pay rates. 
‘‘(4) The authority under this subsection may not be 
exercised after the date that is 10 years after the date of 
the enactment of the National Defense Authorization Act for 
Fiscal Year 2004. 
‘‘(5) For so long as a person continues to serve without 
a break in service in a position to which appointed under 
this subsection, the expiration of authority under this sub-
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section does not terminate the position, terminate the per-
son’s appointment in the position before the end of the term 
for which appointed under this subsection, or affect the com-
pensation fixed for the person’s service in the position under 
this subsection during such term of appointment. 
‘‘(6) Subchapter II of chapter 75 of title 5 does not 
apply to an employee during a term of service in a critical 
administrative, technical, or professional position to which 
the employee is appointed under this subsection.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item:
‘‘1599e. Pay authority for critical positions.’’.
SEC. 1103. EXTENSION, EXPANSION, AND REVISION OF AU-
THORITY FOR EXPERIMENTAL PERSONNEL 
PROGRAM FOR SCIENTIFIC AND TECHNICAL 
PERSONNEL. 
(a) EXTENSION OF PROGRAM.—Subsection (e)(1) of 
section 1101 of the Strom Thurmond National Defense Au-
thorization Act for Fiscal Year 1999 (Public Law 105–261; 
112 Stat. 2139; 5 U.S.C. 3104 note) is amended by striking 
‘‘October 16, 2005’’ and inserting ‘‘September 30, 2008’’. 
(b) INCREASED LIMITATION ON NUMBER OF APPOINT-
MENTS.—Subsection (b)(1)(A) of such section is amended 
by striking ‘‘40’’ and inserting ‘‘50’’.
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(c) COMMENSURATE EXTENSION
OF REQUIREMENT 
FOR ANNUAL REPORT.—Subsection (g) of such section is 
amended by striking ‘‘2006’’ and inserting ‘‘2009’’. 
SEC. 1104. TRANSFER 
OF 
PERSONNEL 
INVESTIGATIVE 
FUNCTIONS AND RELATED PERSONNEL OF 
THE DEPARTMENT OF DEFENSE. 
(a) TRANSFER OF FUNCTIONS.—(1) With the consent 
of the Director of the Office of Personnel Management, the 
Secretary of Defense may transfer to the Office of Personnel 
Management the personnel security investigations functions 
that, as of the date of the enactment of this Act, are per-
formed by the Defense Security Service of the Department 
of Defense. 
(2) The Director of the Office of Personnel Manage-
ment may accept a transfer of functions under paragraph 
(1). 
(3) Any transfer of a function under this subsection 
is a transfer of function within the meaning of section 3503 
of title 5, United States Code. 
(b) TRANSFER OF PERSONNEL.—(1) If the Director of 
the Office of Personnel Management accepts a transfer of 
functions under subsection (a), the Secretary of Defense 
shall also transfer to the Office of Personnel Management, 
and the Director shall accept—
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(A) the Defense Security Service employees who 
perform those functions immediately before the trans-
fer of functions; and 
(B) the Defense Security Service employees who, 
as of such time, are first level supervisors of employ-
ees transferred under subparagraph (A). 
(2) The Secretary may also transfer to the Office of 
Personnel Management any Defense Security Service em-
ployees (including higher level supervisors) who provide 
support services for the performance of the functions trans-
ferred under subsection (a) or for the personnel (including 
supervisors) transferred under paragraph (1) if the Direc-
tor—
(A) determines that the transfer of such addi-
tional employees and the positions of such employees 
to the Office of Personnel Management is necessary in 
the interest of effective performance of the transferred 
functions; and 
(B) accepts the transfer of the additional em-
ployees. 
(3) In the case of an employee transferred to the Office 
of Personnel Management under paragraph (1) or (2), 
whether a full-time or part-time employee—
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(A) subsections (b) and (c) of section 5362 of 
title 5, United States Code, relating to grade reten-
tion, shall apply to the employee, except that—
(i) the grade retention period shall be the 
one-year period beginning on the date of the 
transfer; and 
(ii) paragraphs (1), (2), and (3) of such 
subsection (c) shall not apply to the employee; 
and 
(B) the employee may not be separated, other 
than pursuant to chapter 75 of title 5, United States 
Code, during such one-year period. 
(c) ACTIONS AFTER TRANSFER.—(1) Not later than 
one year after a transfer of functions to the Office of Per-
sonnel Management under subsection (a), the Secretary of 
Defense shall review all functions performed by personnel 
of the Defense Security Service at the time of the transfer 
and make a written determination regarding whether each 
such function is inherently governmental or is otherwise in-
appropriate for performance by contractor personnel. 
(2) A function performed by Defense Security Service 
employees as of the date of the enactment of this Act may 
not be converted to contractor performance by the Director 
of the Office of Personnel Management until—
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(A) the Secretary of Defense reviews the function 
in accordance with the requirements of paragraph (1) 
and makes a written determination that the function 
is not inherently governmental and is not otherwise 
inappropriate for contractor performance; and 
(B) the Director conducts a public-private com-
petition regarding the performance of that function in 
accordance with the requirements of the Office of 
Management and Budget Circular A–76. 
TITLE XII—MATTERS RELATING 
TO OTHER NATIONS 
SEC. 1201. AUTHORITY TO USE FUNDS FOR PAYMENT OF 
COSTS OF ATTENDANCE OF FOREIGN VISI-
TORS UNDER REGIONAL DEFENSE COUNTER-
TERRORISM FELLOWSHIP PROGRAM. 
(a) AUTHORITY TO USE FUNDS.—(1) Subchapter I of 
chapter 134 of title 10, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 2249c. Authority to use appropriated funds for 
costs of attendance of foreign visitors 
under Regional Defense Counterterrorism 
Fellowship Program 
‘‘(a) AUTHORITY TO USE FUNDS.—Under regulations 
prescribed by the Secretary of Defense, funds appropriated 
to the Department of Defense may be used to pay any costs
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associated with the attendance of foreign military officers, 
ministry of defense officials, or security officials at United 
States military educational institutions, regional centers, 
conferences, seminars, or other training programs con-
ducted under the Regional Defense Counterterrorism Fel-
lowship Program, including costs of transportation and 
travel and subsistence costs. 
‘‘(b) LIMITATION.—The total amount of funds used 
under the authority in subsection (a) in any fiscal year 
may not exceed $20,000,000. 
‘‘(c) ANNUAL REPORT.—Not later than December 1 of 
each year, the Secretary of Defense shall submit to Congress 
a report on the administration of this section during the 
fiscal year ended in such year. The report shall include the 
following matters: 
‘‘(1) A complete accounting of the expenditure of 
appropriated funds for purposes authorized under 
subsection (a), including—
‘‘(A) the countries of the foreign officers and 
officials for whom costs were paid; and 
‘‘(B) for each such country, the total 
amount of the costs paid. 
‘‘(2) The training courses attended by the foreign 
officers and officials, including a specification of
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which, if any, courses were conducted in foreign coun-
tries. 
‘‘(3) An assessment of the effectiveness of the Re-
gional Defense Counterterrorism Fellowship Program 
in increasing the cooperation of the governments of 
foreign countries with the United States in the global 
war on terrorism. 
‘‘(4) A discussion of any actions being taken to 
improve the program.’’. 
(2) The table of sections at the beginning of such sub-
chapter is amended by adding at the end the following new 
item:
‘‘2249c. Authority to use appropriated funds for costs of attendance of foreign 
visitors under Regional Defense Counterterrorism Fellowship 
Program.’’.
(b) NOTIFICATION OF CONGRESS.—Not later than De-
cember 1, 2003, the Secretary of Defense shall—
(1) promulgate the final regulations for carrying 
out section 2249c of title 10, United States Code, as 
added by subsection (a); and 
(2) notify the congressional defense committees of 
the promulgation of such regulations.
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SEC. 1202. AVAILABILITY OF FUNDS TO RECOGNIZE SUPE-
RIOR NONCOMBAT ACHIEVEMENTS OR PER-
FORMANCE OF MEMBERS OF FRIENDLY FOR-
EIGN FORCES AND OTHER FOREIGN NATION-
ALS. 
(a) IN GENERAL.—Chapter 53 of title 10, United 
States Code, is amended by inserting the following new sec-
tion: 
‘‘§ 1051a. Bilateral or regional cooperation programs: 
availability of funds to recognize superior 
noncombat achievements or performance 
‘‘(a) IN GENERAL.—The Secretary of Defense may ex-
pend amounts available to the Department of Defense or 
the military departments for operation and maintenance 
for the purpose of recognizing superior noncombat achieve-
ments or performance of members of friendly foreign forces, 
or other foreign nationals, that significantly enhance or 
support the national security strategy of the United States. 
‘‘(b) COVERED ACHIEVEMENTS OR PERFORMANCE.—
The achievements or performance that may be recognized 
under subsection (a) include achievements or performance 
that—
‘‘(1) play a crucial role in shaping the inter-
national security environment in a manner that pro-
tects and promotes the interests of the United States;
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‘‘(2) support or enhance the United States pres-
ence overseas or support or enhance United States 
peacetime engagement activities such as defense co-
operation initiatives, security assistance training and 
programs, or training and exercises with the armed 
forces of the United States; 
‘‘(3) help deter aggression and coercion, build 
coalitions, or promote regional stability; or 
‘‘(4) serve as models for appropriate conduct for 
military forces in emerging democracies. 
‘‘(c) LIMITATION
ON VALUE
OF MEMENTOS.—The 
value of any memento procured or produced under sub-
section (a) may not exceed the minimal value in effect 
under 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 1051 the following new item:
‘‘1051a. Bilateral or regional cooperation programs: availability of funds to recog-
nize superior noncombat achievements or performance.’’.
SEC. 1203. CHECK 
CASHING 
AND 
EXCHANGE 
TRANS-
ACTIONS FOR FOREIGN PERSONNEL IN ALLI-
ANCE OR COALITION FORCES. 
Section 3342(b) of title 31, United States Code, is 
amended—
(1) by striking ‘‘or’’ at the end of paragraph (6);
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(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new para-
graph: 
‘‘(8) a member of the armed forces of a foreign 
nation who is participating in a combined operation, 
combined exercise, or combined humanitarian or 
peacekeeping mission that is carried out with armed 
forces of the United States pursuant to an alliance or 
coalition of the foreign nation with the United States 
if—
‘‘(A) the senior commander of the armed 
forces of the United States participating in the 
operation, exercise, or mission has authorized the 
action under paragraph (1) or (2) of subsection 
(a); 
‘‘(B) the government of the foreign nation 
has guaranteed payment for any deficiency re-
sulting from such action; and 
‘‘(C) in the case of an action on a nego-
tiable instrument, the negotiable instrument is 
drawn on a financial institution located in the 
United States or on a foreign branch of such an 
institution.’’.
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SEC. 1204. CLARIFICATION AND EXTENSION OF AUTHOR-
ITY TO PROVIDE ASSISTANCE FOR INTER-
NATIONAL NONPROLIFERATION ACTIVITIES. 
(a) LIMITATION ON AMOUNT OF ASSISTANCE IN FIS-
CAL YEAR 2004.—The total amount of the assistance for 
fiscal year 2004 that is provided by the Secretary of Defense 
under section 1505 of the Weapons of Mass Destruction 
Control Act of 1992 (22 U.S.C. 5859a), including funds 
used for activities of the Department of Defense in support 
of the United Nations Monitoring, Verification and Inspec-
tion Commission, shall not exceed $15,000,000. 
(b) EXTENSION OF AUTHORITY TO PROVIDE ASSIST-
ANCE.—Subsection (f) of section 1505 of the Weapons of 
Mass Destruction Control Act of 1992 (22 U.S.C. 5859a) 
is amended by striking ‘‘fiscal year 2003’’ and inserting 
‘‘fiscal year 2004’’. 
(c) REFERENCES TO UNITED NATIONS SPECIAL COM-
MISSION ON IRAQ.—Section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) is fur-
ther amended—
(1) in subsection (b)(2), by striking ‘‘United Na-
tions Special Commission on Iraq (or any successor 
organization)’’ and inserting ‘‘United Nations Moni-
toring, Verification and Inspection Commission’’; and 
(2) in subsection (d)(4)(A), by striking ‘‘United 
Nations Special Commission on Iraq (or any suc-
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cessor organization)’’ and inserting ‘‘United Nations 
Monitoring, Verification and Inspection Commis-
sion’’. 
SEC. 1205. REIMBURSABLE COSTS RELATING TO NATIONAL 
SECURITY CONTROLS ON SATELLITE EXPORT 
LICENSING. 
(a) 
DIRECT
COSTS
OF
MONITORING
FOREIGN 
LAUNCHES OF SATELLITES.—Section 1514(a)(1)(A) of the 
Strom Thurmond National Defense Authorization Act for 
Fiscal Year 1999 (Public Law 105–261; 22 U.S.C. 2778 
note) is amended by striking ‘‘The costs of such monitoring 
services’’ in the second sentence and inserting the following: 
‘‘The Department of Defense costs that are directly related 
to monitoring the launch, including transportation and per 
diem costs,’’. 
(b) GAO STUDY.—(1) The Comptroller General shall 
conduct a study of the Department of Defense costs of moni-
toring launches of satellites in a foreign country under sec-
tion 1514 of Public Law 105–261. 
(2) Not later than April 1, 2004, the Comptroller Gen-
eral shall submit a report on the study to the Committees 
on Armed Services of the Senate and the House of Rep-
resentatives. The report shall include the following:
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(A) An assessment of the Department of Defense 
costs of monitoring the satellite launches described in 
paragraph (1). 
(B) A review of the costs reimbursed to the De-
partment of Defense by each person or entity receiv-
ing the satellite launch monitoring services, including 
the extent to which indirect costs have been included. 
SEC. 1206. ANNUAL REPORT ON THE NATO PRAGUE CAPA-
BILITIES COMMITMENT AND THE NATO RE-
SPONSE FORCE. 
(a) FINDINGS.—Congress makes the following findings: 
(1) At the meeting of the North Atlantic Council 
held in Prague in November 2002, the heads of states 
and governments of the North Atlantic Treaty Orga-
nization (NATO) launched a Prague Capabilities 
Commitment and decided to create a NATO Response 
Force. 
(2) The Prague Capabilities Commitment is part 
of the continuing NATO effort to improve and develop 
new military capabilities for modern warfare in a 
high-threat environment. As part of this commitment, 
individual NATO allies have made firm and specific 
political commitments to improve their capabilities 
in the areas of—
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(A) chemical, biological, radiological, and 
nuclear defense; 
(B) intelligence, surveillance, and target ac-
quisition; 
(C) air-to-ground surveillance; 
(D) command, control, and communica-
tions; 
(E) combat effectiveness, including precision 
guided munitions and suppression of enemy air 
defenses; 
(F) strategic air and sea lift; 
(G) air-to-air refueling; and 
(H) deployable combat support and combat 
service support units. 
(3) The NATO Response Force is envisioned to 
be a technologically advanced, flexible, deployable, 
interoperable, and sustainable force that includes 
land, sea, and air elements ready to move quickly to 
wherever needed, as determined by the North Atlantic 
Council. The NATO Response Force is also intended 
to be a catalyst for focusing and promoting improve-
ments in NATO’s military capabilities. It is expected 
to have initial operational capability by October 
2004, and full operational capability by October 
2006.
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(b) ANNUAL REPORT.—(1) Not later than January 31 
of each year, the Secretary of Defense shall submit to the 
Committees on Armed Services and Foreign Relations of 
the Senate and the Committees on Armed Services and 
International Relations of the House of Representatives a 
report, to be prepared in consultation with the Secretary 
of State, on implementation of the Prague Capabilities 
Commitment and development of the NATO Response Force 
by the member nations of NATO. The report shall include 
the following matters: 
(A) A description of the actions taken by NATO 
as a whole and by each member nation of NATO 
other than the United States to further the Prague 
Capabilities Commitment, including any actions 
taken to improve capability shortfalls in the areas 
identified for improvement. 
(B) A description of the actions taken by NATO 
as a whole and by each member nation of NATO, in-
cluding the United States, to create the NATO Re-
sponse Force. 
(C) A discussion of the relationship between 
NATO’s efforts to improve capabilities through the 
Prague Capabilities Commitment and those of the 
European Union to enhance European capabilities 
through the European Capabilities Action Plan, in-
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cluding the extent to which they are mutually rein-
forcing. 
(D) A discussion of NATO decisionmaking on 
the implementation of the Prague Capabilities Com-
mitment and the development of the NATO Response 
Force, including—
(i) an assessment of whether the Prague Ca-
pabilities Commitment and the NATO Response 
Force are the sole jurisdiction of the Defense 
Planning Committee, the North Atlantic Council, 
or the Military Committee; 
(ii) a description of the circumstances 
which led to the defense, military, security, and 
nuclear decisions of NATO on matters such as 
the Prague Capabilities Commitment and the 
NATO Response Force being made in bodies 
other than the Defense Planning Committee; 
(iii) a description of the extent to which 
any member that does not participate in the in-
tegrated military structure of NATO contributes 
to each of the component committees of NATO, 
including any and all committees relevant to the 
Prague Capabilities Commitment and the NATO 
Response Force;
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(iv) a description of the extent to which any 
member that does not participate in the inte-
grated military structure of NATO participates 
in deliberations and decisions of NATO on re-
source policy, contribution ceilings, infrastruc-
ture, force structure, modernization, threat as-
sessments, training, exercises, deployments, and 
other issues related to the Prague Capabilities 
Commitment or the NATO Response Force; 
(v) a description and assessment of the im-
pediments, if any, that would preclude or limit 
NATO from conducting deliberations and mak-
ing decisions on matters such as the Prague Ca-
pabilities Commitment or the NATO Response 
Force solely in the Defense Planning Committee; 
(vi) the recommendations of the Secretary of 
Defense on streamlining defense, military, and 
security decisionmaking within NATO relating 
to the Prague Capabilities Commitment, and 
NATO Response Force, and other matters, in-
cluding an assessment of the feasibility and ad-
visability of the greater utilization of the Defense 
Planning Committee for such purposes; and 
(vii) if a report under this subparagraph is 
a report other than the first report under this
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subparagraph, the information submitted in such 
report under any of clauses (i) through (vi) may 
consist solely of an update of any information 
previously submitted under the applicable clause 
in a preceding report under this subparagraph. 
(2) The report shall be submitted in unclassified form, 
but may also be submitted in classified form if necessary. 
SEC. 1207. EXPANSION AND EXTENSION OF AUTHORITY TO 
PROVIDE 
ADDITIONAL 
SUPPORT 
FOR 
COUNTER-DRUG ACTIVITIES. 
(a) GENERAL EXTENSION OF AUTHORITY.—Section 
1033 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105–85; 111 Stat. 1881), as amend-
ed by section 1021 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–255), is further 
amended—
(1) in subsection (a)—
(A) by inserting after ‘‘subsection (f),’’ the 
following: ‘‘during fiscal years 1998 through 
2006 in the case of the foreign governments 
named in paragraphs (1) and (2) of subsection 
(b), and fiscal years 2004 through 2006 in the 
case of the foreign governments named in para-
graphs (3) through (9) of subsection (b),’’; and
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(B) by striking ‘‘either or both’’ and insert-
ing ‘‘any’’; and 
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘, for fis-
cal years 1998 through 2002’’; and 
(B) in paragraph (2), by striking ‘‘, for fis-
cal years 1998 through 2006’’. 
(b) ADDITIONAL GOVERNMENTS ELIGIBLE TO RE-
CEIVE SUPPORT.—Subsection (b) of such section 1033 is 
further amended by adding at the end the following new 
paragraphs: 
‘‘(3) The Government of Afghanistan. 
‘‘(4) The Government of Bolivia. 
‘‘(5) The Government of Ecuador. 
‘‘(6) The Government of Pakistan. 
‘‘(7) The Government of Tajikistan. 
‘‘(8) The Government of Turkmenistan. 
‘‘(9) The Government of Uzbekistan.’’. 
(c) TYPES OF SUPPORT.—Subsection (c) of such sec-
tion 1033 is amended—
(1) in paragraph (2), by striking ‘‘riverine’’; and 
(2) in paragraph (3), by inserting ‘‘or upgrade’’ 
after ‘‘maintenance and repair’’. 
(d) MAXIMUM ANNUAL AMOUNT OF SUPPORT.—Sub-
section (e)(2) of such section 1033, as amended by such sec-
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tion 1021, is further amended by striking ‘‘$20,000,000 
during any of the fiscal years 1999 through 2006’’ and in-
serting ‘‘$20,000,000 during any of fiscal years 1999 
through 2003, or $40,000,000 during any of fiscal years 
2004 through 2006’’. 
(e) COUNTER-DRUG PLAN.—(1) Subsection (h) of such 
section 1033 is amended—
(A) in the subsection caption, by striking 
‘‘RIVERINE’’; 
(B) in the matter preceding paragraph (1)—
(i) by inserting ‘‘in the case of the govern-
ments named in paragraphs (1) and (2) of sub-
section (b) and for fiscal year 2004 in the case 
of the governments named in paragraphs (3) 
through (9) of subsection (b)’’; and 
(ii) by striking ‘‘riverine’’; and 
(C) by striking ‘‘riverine’’ each place it appears 
in paragraphs (2), (7), (8), and (9). 
(2) Subsection (f)(2)(A) of such section 1033 is amend-
ed by striking ‘‘riverine’’. 
(f) CLERICAL AMENDMENT.—The heading for such sec-
tion 1033 is amended by striking ‘‘PERU AND COLOM-
BIA’’ and inserting ‘‘OTHER COUNTRIES’’.
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SEC. 1208. USE OF FUNDS FOR UNIFIED COUNTERDRUG 
AND COUNTERTERRORISM CAMPAIGN IN CO-
LOMBIA. 
(a) AUTHORITY.—(1) In fiscal years 2004 and 2005, 
the Secretary of Defense may use funds available for assist-
ance to the Government of Colombia to support a unified 
campaign against narcotics trafficking and against activi-
ties by organizations designated as terrorist organizations 
such as the Revolutionary Armed Forces of Colombia 
(FARC), the National Liberation Army (ELN), and the 
United Self-Defense Forces of Colombia (AUC). 
(2) The authority to provide assistance for a campaign 
under this subsection includes authority to take actions to 
protect human health and welfare in emergency cir-
cumstances, including the undertaking of rescue operations. 
(b) APPLICABILITY OF CERTAIN LAWS AND LIMITA-
TIONS.—The use of funds pursuant to the authority in sub-
section (a) shall be subject to the following: 
(1) Sections 556, 567, and 568 of the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 2002 (Public Law 107–115; 115 
Stat. 2160, 2165, and 2166). 
(2) Section 8093 of the Department of Defense 
Appropriations Act, 2002 (division A of Public Law 
107–117; 115 Stat. 2267).
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(3) The numerical limitations on the number of 
United States military personnel and United States 
individual civilian contractors in section 3204(b)(1) 
of the Emergency Supplemental Act, 2000 (division B 
of Public Law 106–246; 114 Stat. 575). 
(c) LIMITATION
ON
PARTICIPATION
OF
UNITED 
STATES PERSONNEL.—No United States Armed Forces per-
sonnel or United States civilian contractor personnel em-
ployed by the United States may participate in any combat 
operation in connection with assistance using funds pursu-
ant to the authority in subsection (a), except for the purpose 
of acting in self defense or of rescuing any United States 
citizen (including any United States Armed Forces per-
sonnel, United States civilian employee, or civilian con-
tractor employed by the United States). 
(d) CONSTRUCTION WITH OTHER AUTHORITY.—The 
authority in subsection (a) to use funds to provide assist-
ance to the Government of Colombia is in addition to any 
other authority in law to provide assistance to the Govern-
ment of Colombia. 
SEC. 1209. COMPETITIVE AWARD OF CONTRACTS FOR IRAQI 
RECONSTRUCTION. 
(a) REQUIREMENT.—The Department of Defense shall 
fully comply with the Competition in Contracting Act (10 
U.S.C. 2304 et seq.) for any contract awarded for recon-
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(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, $59,884,000. 
(6) For energy conservation projects authorized 
by section 2404, $69,500,000. 
(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
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(C) amended—
(i) by striking the section heading and 
inserting the following new section heading: 
‘‘SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PEN-
ALTIES UNDER CLEAN AIR ACT.’’; 
(ii) by striking SEC. 211.’’; and 
(iii) by striking ‘‘this or any other 
Act’’ and inserting ‘‘the Department of En-
ergy National Security and Military Appli-
cations of Nuclear Energy Authorization 
Act of 1981 (Public Law 96–540) or any 
other Act’’. 
(6) SUBTITLE HEADING ON OTHER MATTERS.—
Title XLVII of division D of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003, as 
amended by this subsection, is further amended by 
adding at the end the following new subtitle heading: 
‘‘Subtitle C—Other Matters’’. 
(7) SINGLE REQUEST FOR AUTHORIZATION OF 
APPROPRIATIONS FOR COMMON DEFENSE AND SECU-
RITY PROGRAMS.—Section 208 of the Department of 
Energy National Security and Military Applications 
of Nuclear Energy Authorization Act of 1979 (Public 
Law 95–509; 92 Stat. 1779) is—