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qualified nonprofit agency for other severely handi-
capped individuals in accordance with that Act; or 
(C) is planned to be converted to performance by 
a qualified firm under at least 51 percent ownership 
by an Indian tribe, as defined in section 4(e) of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b(e)), or a Native Hawaiian Orga-
nization, as defined in section 8(a)(15) of the Small 
Business Act (15 U.S.C. 637(a)(15)). 
(2) This section shall not apply to depot contracts or 
contracts for depot maintenance as provided in sections 
2469 and 2474 of title 10, United States Code. 
(c) The conversion of any activity or function of the 
Department of Defense under the authority provided by this 
section shall be credited toward any competitive or out-
sourcing goal, target, or measurement that may be estab-
lished by statute, regulation, or policy and is deemed to 
be awarded under the authority of, and in compliance with, 
subsection (h) of section 2304 of title 10, United States 
Code, for the competition or outsourcing of commercial ac-
tivities. 
(RESCISSIONS) 
SEC. 8040. Of the funds appropriated in Department 
of Defense Appropriations Acts, the following funds are 
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hereby rescinded from the following accounts and programs 
in the specified amounts: 
‘‘Shipbuilding and Conversion, Navy, 2007/ 
2018’’: DDG–51 Destroyer, $98,400,000; 
‘‘Shipbuilding and Conversion, Navy, 2007/ 
2018’’: DDG–51 Destroyer Advance Procurement, 
$2,500,000; 
‘‘Shipbuilding and Conversion, Navy, 2007/ 
2018’’: CVN Refueling Overhaul, $14,100,000; 
‘‘Procurement of Ammunition, Army, 2011/ 
2013’’, $14,862,000; 
‘‘Other 
Procurement, 
Army, 
2011/2013’’, 
$108,098,000; 
‘‘Aircraft 
Procurement, 
Navy, 
2011/2013’’, 
$43,860,000; 
‘‘Shipbuilding and Conversion, Navy, 2011/ 
2015’’: DDG–51 Destroyer, $215,300,000; 
‘‘Weapons 
Procurement, 
Navy, 
2011/2013’’, 
$22,000,000; 
‘‘Aircraft Procurement, Air Force, 2011/2013’’, 
$93,400,000; 
‘‘Other Procurement, Air Force, 2011/2013’’, 
$9,500,000; 
‘‘Operation and Maintenance, Defense-Wide, 
2012/XXXX’’, $21,000,000; 
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‘‘Aircraft 
Procurement, 
Army, 
2012/2014’’, 
$47,400,000; 
‘‘Other 
Procurement, 
Army, 
2012/2014’’, 
$179,608,000; 
‘‘Aircraft 
Procurement, 
Navy, 
2012/2014’’, 
$19,040,000; 
‘‘Shipbuilding and Conversion, Navy, 2012/ 
2016’’: Littoral Combat Ship, $28,800,000; 
‘‘Shipbuilding and Conversion, Navy, 2012/ 
2016’’: DDG–51 Destroyer, $83,000,000; 
‘‘Weapons 
Procurement, 
Navy, 
2012/2014’’, 
$36,467,000; 
‘‘Procurement of Ammunition, Navy and Marine 
Corps, 2012/2014’’, $16,300,000; 
‘‘Procurement, 
Marine 
Corps, 
2012/2014’’, 
$132,555,000; 
‘‘Aircraft Procurement, Air Force, 2012/2014’’, 
$394,299,000; 
‘‘Missile Procurement, Air Force, 2012/2014’’, 
$52,898,000; 
‘‘Other Procurement, Air Force, 2012/2014’’, 
$55,800,000; 
‘‘Procurement, 
Defense-Wide, 
2012/2014’’, 
$16,000,000; 
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‘‘Research, Development, Test and Evaluation, 
Army, 2012/2013’’, $41,000,000; 
‘‘Research, Development, Test and Evaluation, 
Navy, 2012/2013’’, $246,800,000; 
‘‘Research, Development, Test and Evaluation, 
Air Force, 2012/2013’’, $149,460,000. 
SEC. 8041. None of the funds available in this Act may 
be used to reduce the authorized positions for military tech-
nicians (dual status) of the Army National Guard, Air Na-
tional Guard, Army Reserve and Air Force Reserve for the 
purpose of applying any administratively imposed civilian 
personnel ceiling, freeze, or reduction on military techni-
cians (dual status), unless such reductions are a direct re-
sult of a reduction in military force structure. 
SEC. 8042. None of the funds appropriated or other-
wise made available in this Act may be obligated or ex-
pended for assistance to the Democratic People’s Republic 
of Korea unless specifically appropriated for that purpose. 
SEC. 8043. Funds appropriated in this Act for oper-
ation and maintenance of the Military Departments, Com-
batant Commands and Defense Agencies shall be available 
for reimbursement of pay, allowances and other expenses 
which would otherwise be incurred against appropriations 
for the National Guard and Reserve when members of the 
National Guard and Reserve provide intelligence or coun-
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terintelligence support to Combatant Commands, Defense 
Agencies and Joint Intelligence Activities, including the ac-
tivities and programs included within the National Intel-
ligence Program and the Military Intelligence Program: 
Provided, That nothing in this section authorizes deviation 
from established Reserve and National Guard personnel and 
training procedures. 
SEC. 8044. During the current fiscal year, none of the 
funds appropriated in this Act may be used to reduce the 
civilian medical and medical support personnel assigned to 
military treatment facilities below the September 30, 2003, 
level: Provided, That the Service Surgeons General may 
waive this section by certifying to the congressional defense 
committees that the beneficiary population is declining in 
some catchment areas and civilian strength reductions may 
be consistent with responsible resource stewardship and 
capitation-based budgeting. 
SEC. 8045. (a) None of the funds available to the De-
partment of Defense for any fiscal year for drug interdic-
tion or counter-drug activities may be transferred to any 
other department or agency of the United States except as 
specifically provided in an appropriations law. 
(b) None of the funds available to the Central Intel-
ligence Agency for any fiscal year for drug interdiction and 
counter-drug activities may be transferred to any other de-
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partment or agency of the United States except as specifi-
cally provided in an appropriations law. 
SEC. 8046. None of the funds appropriated by this Act 
may be used for the procurement of ball and roller bearings 
other than those produced by a domestic source and of do-
mestic origin: Provided, That the Secretary of the military 
department responsible for such procurement may waive 
this restriction on a case-by-case basis by certifying in writ-
ing to the Committees on Appropriations of the House of 
Representatives and the Senate, that adequate domestic 
supplies are not available to meet Department of Defense 
requirements on a timely basis and that such an acquisition 
must be made in order to acquire capability for national 
security purposes: Provided further, That this restriction 
shall not apply to the purchase of ‘‘commercial items’’, as 
defined by section 4(12) of the Office of Federal Procure-
ment Policy Act, except that the restriction shall apply to 
ball or roller bearings purchased as end items. 
SEC. 8047. None of the funds in this Act may be used 
to purchase any supercomputer which is not manufactured 
in the United States, unless the Secretary of Defense cer-
tifies to the congressional defense committees that such an 
acquisition must be made in order to acquire capability for 
national security purposes that is not available from 
United States manufacturers. 
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or chapter VII of the United Nations Charter under 
the authority of a United Nations Security Council 
resolution; and 
(2) any other international peacekeeping, peace- 
enforcement, or humanitarian assistance operation. 
(c) A notice under subsection (a) shall include the fol-
lowing: 
(1) A description of the equipment, supplies, or 
services to be transferred. 
(2) A statement of the value of the equipment, 
supplies, or services to be transferred. 
(3) In the case of a proposed transfer of equip-
ment or supplies— 
(A) a statement of whether the inventory re-
quirements of all elements of the Armed Forces 
(including the reserve components) for the type 
of equipment or supplies to be transferred have 
been met; and 
(B) a statement of whether the items pro-
posed to be transferred will have to be replaced 
and, if so, how the President proposes to provide 
funds for such replacement. 
SEC. 8050. None of the funds available to the Depart-
ment of Defense under this Act shall be obligated or ex-
pended to pay a contractor under a contract with the De-
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partment of Defense for costs of any amount paid by the 
contractor to an employee when— 
(1) such costs are for a bonus or otherwise in ex-
cess of the normal salary paid by the contractor to the 
employee; and 
(2) such bonus is part of restructuring costs asso-
ciated with a business combination. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8051. During the current fiscal year, no more 
than $30,000,000 of appropriations made in this Act under 
the heading ‘‘Operation and Maintenance, Defense-Wide’’ 
may be transferred to appropriations available for the pay 
of military personnel, to be merged with, and to be available 
for the same time period as the appropriations to which 
transferred, to be used in support of such personnel in con-
nection with support and services for eligible organizations 
and activities outside the Department of Defense pursuant 
to section 2012 of title 10, United States Code. 
SEC. 8052. During the current fiscal year, in the case 
of an appropriation account of the Department of Defense 
for which the period of availability for obligation has ex-
pired or which has closed under the provisions of section 
1552 of title 31, United States Code, and which has a nega-
tive unliquidated or unexpended balance, an obligation or 
an adjustment of an obligation may be charged to any cur-
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rent appropriation account for the same purpose as the ex-
pired or closed account if— 
(1) the obligation would have been properly 
chargeable (except as to amount) to the expired or 
closed account before the end of the period of avail-
ability or closing of that account; 
(2) the obligation is not otherwise properly 
chargeable to any current appropriation account of 
the Department of Defense; and 
(3) in the case of an expired account, the obliga-
tion is not chargeable to a current appropriation of 
the Department of Defense under the provisions of sec-
tion 1405(b)(8) of the National Defense Authorization 
Act for Fiscal Year 1991, Public Law 101–510, as 
amended (31 U.S.C. 1551 note): Provided, That in 
the case of an expired account, if subsequent review 
or investigation discloses that there was not in fact a 
negative unliquidated or unexpended balance in the 
account, any charge to a current account under the 
authority of this section shall be reversed and re-
corded against the expired account: Provided further, 
That the total amount charged to a current appro-
priation under this section may not exceed an 
amount equal to 1 percent of the total appropriation 
for that account. 
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SEC. 8053. (a) Notwithstanding any other provision 
of law, the Chief of the National Guard Bureau may permit 
the use of equipment of the National Guard Distance Learn-
ing Project by any person or entity on a space-available, 
reimbursable basis. The Chief of the National Guard Bu-
reau shall establish the amount of reimbursement for such 
use on a case-by-case basis. 
(b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Distance 
Learning Project and be available to defray the costs associ-
ated with the use of equipment of the project under that 
subsection. Such funds shall be available for such purposes 
without fiscal year limitation. 
SEC. 8054. Using funds made available by this Act 
or any other Act, the Secretary of the Air Force, pursuant 
to a determination under section 2690 of title 10, United 
States Code, may implement cost-effective agreements for 
required 
heating 
facility 
modernization 
in 
the 
Kaiserslautern Military Community in the Federal Repub-
lic of Germany: Provided, That in the City of 
Kaiserslautern and at the Rhine Ordnance Barracks area, 
such agreements will include the use of United States an-
thracite as the base load energy for municipal district heat 
to the United States Defense installations: Provided further, 
That at Landstuhl Army Regional Medical Center and 
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Ramstein Air Base, furnished heat may be obtained from 
private, regional or municipal services, if provisions are in-
cluded for the consideration of United States coal as an en-
ergy source. 
SEC. 8055. None of the funds appropriated in title IV 
of this Act may be used to procure end-items for delivery 
to military forces for operational training, operational use 
or inventory requirements: Provided, That this restriction 
does not apply to end-items used in development, proto-
typing, and test activities preceding and leading to accept-
ance for operational use: Provided further, That this restric-
tion does not apply to programs funded within the National 
Intelligence Program: Provided further, That the Secretary 
of Defense may waive this restriction on a case-by-case basis 
by certifying in writing to the Committees on Appropria-
tions of the House of Representatives and the Senate that 
it is in the national security interest to do so. 
SEC. 8056. (a) The Secretary of Defense may, on a 
case-by-case basis, waive with respect to a foreign country 
each limitation on the procurement of defense items from 
foreign sources provided in law if the Secretary determines 
that the application of the limitation with respect to that 
country would invalidate cooperative programs entered into 
between the Department of Defense and the foreign country, 
or would invalidate reciprocal trade agreements for the pro-
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curement of defense items entered into under section 2531 
of title 10, United States Code, and the country does not 
discriminate against the same or similar defense items pro-
duced in the United States for that country. 
(b) Subsection (a) applies with respect to— 
(1) contracts and subcontracts entered into on or 
after the date of the enactment of this Act; and 
(2) options for the procurement of items that are 
exercised after such date under contracts that are en-
tered into before such date if the option prices are ad-
justed for any reason other than the application of a 
waiver granted under subsection (a). 
(c) Subsection (a) does not apply to a limitation re-
garding construction of public vessels, ball and roller bear-
ings, food, and clothing or textile materials as defined by 
section 11 (chapters 50–65) of the Harmonized Tariff 
Schedule and products classified under headings 4010, 
4202, 4203, 6401 through 6406, 6505, 7019, 7218 through 
7229, 7304.41 through 7304.49, 7306.40, 7502 through 
7508, 8105, 8108, 8109, 8211, 8215, and 9404. 
SEC. 8057. (a) None of the funds made available by 
this Act may be used to support any training program in-
volving a unit of the security forces or police of a foreign 
country if the Secretary of Defense has received credible in-
formation from the Department of State that the unit has 
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committed a gross violation of human rights, unless all nec-
essary corrective steps have been taken. 
(b) The Secretary of Defense, in consultation with the 
Secretary of State, shall ensure that prior to a decision to 
conduct any training program referred to in subsection (a), 
full consideration is given to all credible information avail-
able to the Department of State relating to human rights 
violations by foreign security forces. 
(c) The Secretary of Defense, after consultation with 
the Secretary of State, may waive the prohibition in sub-
section (a) if he determines that such waiver is required 
by extraordinary circumstances. 
(d) Not more than 15 days after the exercise of any 
waiver under subsection (c), the Secretary of Defense shall 
submit a report to the congressional defense committees de-
scribing the extraordinary circumstances, the purpose and 
duration of the training program, the United States forces 
and the foreign security forces involved in the training pro-
gram, and the information relating to human rights viola-
tions that necessitates the waiver. 
SEC. 8058. None of the funds appropriated or other-
wise made available by this or other Department of Defense 
Appropriations Acts may be obligated or expended for the 
purpose of performing repairs or maintenance to military 
family housing units of the Department of Defense, includ-
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ing areas in such military family housing units that may 
be used for the purpose of conducting official Department 
of Defense business. 
SEC. 8059. Notwithstanding any other provision of 
law, funds appropriated in this Act under the heading ‘‘Re-
search, Development, Test and Evaluation, Defense-Wide’’ 
for any new start advanced concept technology demonstra-
tion project or joint capability demonstration project may 
only be obligated 45 days after a report, including a de-
scription of the project, the planned acquisition and transi-
tion strategy and its estimated annual and total cost, has 
been provided in writing to the congressional defense com-
mittees: Provided, That the Secretary of Defense may waive 
this restriction on a case-by-case basis by certifying to the 
congressional defense committees that it is in the national 
interest to do so. 
SEC. 8060. The Secretary of Defense shall provide a 
classified quarterly report beginning 30 days after enact-
ment of this Act, to the House and Senate Appropriations 
Committees, Subcommittees on Defense on certain matters 
as directed in the classified annex accompanying this Act. 
SEC. 8061. During the current fiscal year, none of the 
funds available to the Department of Defense may be used 
to provide support to another department or agency of the 
United States if such department or agency is more than 
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90 days in arrears in making payment to the Department 
of Defense for goods or services previously provided to such 
department or agency on a reimbursable basis: Provided, 
That this restriction shall not apply if the department is 
authorized by law to provide support to such department 
or agency on a nonreimbursable basis, and is providing the 
requested support pursuant to such authority: Provided fur-
ther, That the Secretary of Defense may waive this restric-
tion on a case-by-case basis by certifying in writing to the 
Committees on Appropriations of the House of Representa-
tives and the Senate that it is in the national security inter-
est to do so. 
SEC. 8062. Notwithstanding section 12310(b) of title 
10, United States Code, a Reserve who is a member of the 
National Guard serving on full-time National Guard duty 
under section 502(f) of title 32, United States Code, may 
perform duties in support of the ground-based elements of 
the National Ballistic Missile Defense System. 
SEC. 8063. None of the funds provided in this Act may 
be used to transfer to any nongovernmental entity ammuni-
tion held by the Department of Defense that has a center- 
fire cartridge and a United States military nomenclature 
designation of ‘‘armor penetrator’’, ‘‘armor piercing (AP)’’, 
‘‘armor piercing incendiary (API)’’, or ‘‘armor-piercing in-
cendiary tracer (API–T)’’, except to an entity performing 
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demilitarization services for the Department of Defense 
under a contract that requires the entity to demonstrate to 
the satisfaction of the Department of Defense that armor 
piercing projectiles are either: (1) rendered incapable of 
reuse by the demilitarization process; or (2) used to manu-
facture ammunition pursuant to a contract with the De-
partment of Defense or the manufacture of ammunition for 
export pursuant to a License for Permanent Export of Un-
classified Military Articles issued by the Department of 
State. 
SEC. 8064. Notwithstanding any other provision of 
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under section 2667 
of title 10, United States Code, in the case of a lease of 
personal property for a period not in excess of 1 year to 
any organization specified in section 508(d) of title 32, 
United States Code, or any other youth, social, or fraternal 
nonprofit organization as may be approved by the Chief 
of the National Guard Bureau, or his designee, on a case- 
by-case basis. 
SEC. 8065. None of the funds appropriated by this Act 
shall be used for the support of any nonappropriated funds 
activity of the Department of Defense that procures malt 
beverages and wine with nonappropriated funds for resale 
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(including such alcoholic beverages sold by the drink) on 
a military installation located in the United States unless 
such malt beverages and wine are procured within that 
State, or in the case of the District of Columbia, within 
the District of Columbia, in which the military installation 
is located: Provided, That in a case in which the military 
installation is located in more than one State, purchases 
may be made in any State in which the installation is lo-
cated: Provided further, That such local procurement re-
quirements for malt beverages and wine shall apply to all 
alcoholic beverages only for military installations in States 
which are not contiguous with another State: Provided fur-
ther, That alcoholic beverages other than wine and malt bev-
erages, in contiguous States and the District of Columbia 
shall be procured from the most competitive source, price 
and other factors considered. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8066. Of the amounts appropriated in this Act 
under the heading ‘‘Operation and Maintenance, Army’’, 
$133,381,000 shall remain available until expended: Pro-
vided, That notwithstanding any other provision of law, the 
Secretary of Defense is authorized to transfer such funds 
to other activities of the Federal Government: Provided fur-
ther, That the Secretary of Defense is authorized to enter 
into and carry out contracts for the acquisition of real 
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