Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Defense Au-
thorization Act for Fiscal Year 2004’’.
SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF
CONTENTS.
(a) DIVISIONS.—This Act is organized into three divi-
sions as follows:
(1) Division A—Department of Defense Au-
thorizations.
(2) Division B—Military Construction Author-
izations.
(3) Division C—Department of Energy Na-
tional Security Authorizations and Other Authoriza-
tions.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.
DIVISION A—DEPARTMENT OF DEFENSE
AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of Appropriations
Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Subtitle B—Army Programs
Sec. 111. Stryker vehicle program.
Sec. 112. Configuration of Fourth Stryker Brigade Combat Team.
Subtitle C—Navy Programs
Sec. 121. Multiyear procurement authority for F/A–18 aircraft program.
Sec. 122. Multiyear procurement authority for Tactical Tomahawk cruise mis-
sile program.
Sec. 123. Multiyear procurement authority for Virginia class submarine pro-
gram.
Sec. 124. Multiyear procurement authority for E–2C aircraft program.
Sec. 125. LPD–17 class vessel.
Subtitle D—Air Force Programs
Sec. 131. Air Force air refueling transfer account.
Sec. 132. Increase in number of aircraft authorized to be procured under
multiyear procurement authority for Air Force C–130J aircraft
program.
Sec. 133. Limitation on retiring C–5 aircraft.
Sec. 134. Limitation on obligation of funds for procurement of F/A–22 aircraft.
TITLE II—RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION
Subtitle A—Authorization of Appropriations
Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Program increases.
Subtitle B—Program Requirements, Restrictions, and
Limitations
Sec. 211. Collaborative program for development of electromagnetic gun tech-
nology.
Sec. 212. Authority to select civilian employee of Department of Defense as di-
rector of Department of Defense Test Resource Management
Center.
Sec. 213. Development of the Joint Tactical Radio System.
Sec. 214. Future Combat Systems.
Sec. 215. Army program to pursue technologies leading to the enhanced pro-
duction of titanium by the United States.
Sec. 216. Extension of reporting requirement for RAH–66 Comanche aircraft
program.
Sec. 217. Studies of fleet platform architectures for the Navy.
Subtitle C—Ballistic Missile Defense
Sec. 221. Enhanced flexibility for ballistic missile defense systems.
TITLE III—OPERATION AND MAINTENANCE
Subtitle A—Authorization of Appropriations
Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.
Sec. 304. Counterexploitation initiative.
Sec. 305. Reduction in authorization for Air Force operation and maintenance
account.
Subtitle B—Environmental Provisions
Sec. 311. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Authorization for defense participation in wetland mitigation banks.
Sec. 313. Inclusion of environmental response equipment and services in Navy
definitions of salvage facilities and salvage services.
Sec. 314. Clarification of Department of Defense response to environmental
emergencies.
Sec. 315. Requirements for restoration advisory boards and exemption from
Federal Advisory Committee Act.
Sec. 316. Report regarding impact of civilian community encroachment and cer-
tain legal requirements on military installations and ranges.
Sec. 317. Military readiness and conservation of protected species.
Sec. 318. Military readiness and marine mammal protection.
Sec. 319. Limitation on Department of Defense responsibility for civilian water
consumption impacts related to Fort Huachuca, Arizona.
Sec. 320. Construction of wetland crossings, Camp Shelby Combined Arms Ma-
neuver Area, Camp Shelby, Mississippi.
Subtitle C—Workplace and Depot Issues
Sec. 321. Exclusion of certain expenditures from percentage limitation on con-
tracting for performance of depot-level maintenance and repair
workloads.
Sec. 322. High-performing organization business process reengineering pilot
program.
Sec. 323. Delayed implementation of revised Office of Management and Budget
Circular A-76 by Department of Defense pending report.
Sec. 324. Naval Aviation Depots multi-trades demonstration project.
Subtitle D—Information Technology
Sec. 331. Performance-based and results-based management requirements for
Chief Information Officers of Department of Defense.
Subtitle E—Other Matters
Sec. 341. Cataloging and standardization for defense supply management.
Sec. 342. Space-available transportation for dependents of members assigned to
overseas duty locations for continuous period in excess of one
year.
Sec. 343. Preservation of Air Force Reserve weather reconnaissance mission.
Sec. 344. Expansion of Department of Defense excess personal property dis-
posal program to include health agencies in addition to law en-
forcement and firefighting agencies.
Sec. 345. Department of Defense public health assessment of exposure to per-
chlorate.
Sec. 346. Permanent authority for purchase of certain municipal services at in-
stallations in Monterey County, California.
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum levels.
Subtitle B—Reserve Forces
Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2004 limitation on non-dual status technicians.
Sec. 415. Permanent limitations on number of non-dual status technicians.
Subtitle C—Authorizations of Appropriations
Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.
TITLE V—MILITARY PERSONNEL POLICY
Subtitle A—General and Flag Officer Matters
Sec. 501. Standardization of qualifications for appointment as service chief.
Subtitle B—Other Officer Personnel Policy Matters
Sec. 511. Repeal of prohibition on transfer between line of the Navy and Navy
staff corps applicable to regular Navy officers in grades above
lieutenant commander.
Sec. 512. Retention of health professions officers to fulfill active-duty service
commitments following promotion nonselection.
Sec. 513. Increased flexibility for voluntary retirement for military officers.
Sec. 514. Repeal of required grade of defense attache´ in France.
Subtitle C—Reserve Component Matters
Sec. 521. Streamlined process for continuation of officers on the reserve active-
status list.
Sec. 522. Consideration of reserve officers for position vacancy promotions in
time of war or national emergency.
Sec. 523. Simplification of determination of annual participation for purposes
of Ready Reserve training requirements.
Sec. 524. Authority for delegation of required secretarial special finding for
placement of certain retired members in Ready Reserve.
Sec. 525. Authority to provide expenses of Army and Air Staff personnel and
National Guard Bureau personnel attending national conven-
tions of certain military associations.
Subtitle D—Military Education and Training
Sec. 531. Authority for the Marine Corps University to award the degree of
master of operational studies.
Sec. 532. Expanded educational assistance authority for cadets and mid-
shipmen receiving ROTC scholarships.
Sec. 533. Increase in allocation of scholarships under Army Reserve ROTC
scholarship program to students at military junior colleges.
Sec. 534. Inclusion of accrued interest in amounts that may be repaid under
Selected Reserve critical specialties education loan repayment
program.
Sec. 535. Authority for nonscholarship senior ROTC sophomores to voluntarily
contract for and receive subsistence allowance.
Sec. 536. Appointments to military service academies from nominations made
by delegates from Guam, Virgin Islands, and American Samoa.
Sec. 537. Readmission to service academies of certain former cadets and mid-
shipmen.
Sec. 538. Authorization for Naval Postgraduate School to provide instruction to
enlisted members participating in certain programs.
Sec. 539. Defense task force on sexual harassment and violence at the military
service academies.
Subtitle E—Administrative Matters
Sec. 541. Enhancements to high-tempo personnel program.
Sec. 542. Enhanced retention of accumulated leave for high-deployment mem-
bers.
Sec. 543. Standardization of time-in-service requirements for voluntary retire-
ment of members of the Navy and Marine Corps with Army
and Air Force requirements.
Sec. 544. Standardization of statutory authorities for exemptions from require-
ment for access to secondary schools by military recruiters.
Sec. 545. Procedures for consideration of applications for award of the Purple
Heart medal to veterans held as prisoners of war before April
25, 1962.
Sec. 546. Authority for reserve and retired regular officers to hold State and
local elective office notwithstanding call to active duty.
Sec. 547. Clarification of offense under the Uniform Code of Military Justice
relating to drunken or reckless operation of a vehicle, aircraft,
or vessel.
Sec. 548. Public identification of casualties no sooner than 24 hours after noti-
fication of next-of-kin.
Subtitle F—Benefits
Sec. 551. Additional classes of individuals eligible to participate in the Federal
long-term care insurance program.
Sec. 552. Authority to transport remains of retirees and retiree dependents who
die in military treatment facilities outside the United States.
Sec. 553. Eligibility for dependents of certain mobilized reservists stationed
overseas to attend defense dependents schools overseas.
Subtitle G—Other Matters
Sec. 561. Extension of requirement for exemplary conduct by commanding offi-
cers and others in authority to include civilians in authority in
the Department of Defense.
Sec. 562. Recognition of military families.
Sec. 563. Assistance to local educational agencies that benefit dependents of
members of the Armed Forces and Department of Defense ci-
vilian employees.
Sec. 564. Permanent authority for support for certain chaplain-led military
family support programs.
Sec. 565. Department of Defense-Department of Veterans Affairs Joint Execu-
tive Committee.
Sec. 566. Limitation on aviation force structure changes in the Department of
the Navy.
Sec. 567. Impact-aid eligibility for heavily impacted local educational agencies
affected by privitization of military housing.
Sec. 568. Investigation into the 1991 death of Marine Corps Colonel James E.
Sabow.
Subtitle H—Domestic Violence
Sec. 571. Travel and transportation for dependents relocating for reasons of
personal safety.
Sec. 572. Commencement and duration of payment of transitional compensa-
tion.
Sec. 573. Flexibility in eligibility for transitional compensation.
Sec. 574. Types of administrative separations triggering coverage.
Sec. 575. On-going review group.
Sec. 576. Resources for Department of Defense implementation organization.
Sec. 577. Fatality reviews.
Sec. 578. Sense of Congress.
TITLE VI—COMPENSATION AND OTHER PERSONNEL
BENEFITS
Subtitle A—Pay and Allowances
Sec. 601. Increase in basic pay for fiscal year 2004.
Sec. 602. Computation of basic pay rate for commissioned officers with prior
enlisted or warrant officer service.
Sec. 603. Special subsistence allowance authorities for members assigned to
high-cost duty location or under other unique and unusual cir-
cumstances.
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 611. One-year extension of certain bonus and special pay authorities for
reserve forces.
Sec. 612. One-year extension of certain bonus and special pay authorities for
certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for nuclear
officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Computation of hazardous duty incentive pay for demolition duty and
parachute jumping by members of reserve components entitled
to compensation under section 206 of title 37.
Sec. 616. Availability of hostile fire and imminent danger pay for reserve com-
ponent members on inactive duty.
Sec. 617. Expansion of overseas tour extension incentive program to officers.
Sec. 618. Eligibility of appointed warrant officers for accession bonus for new
officers in critical skills.
Sec. 619. Incentive pay for duty on ground in Antarctica or on Arctic icepack.
Sec. 620. Special pay for service as member of Weapons of Mass Destruction
Civil Support Team.
Sec. 621. Incentive bonus for agreement to serve in critically short military oc-
cupational specialty.
Sec. 622. Increase in rate for imminent danger pay and family separation al-
lowance related to service in Operation Iraqi Freedom or Oper-
ation Enduring Freedom.
Sec. 623. Availability of hostile fire and imminent danger pay for reserve com-
ponent members serving in response to certain domestic ter-
rorist attacks.
Subtitle C—Travel and Transportation Allowances
Sec. 631. Shipment of privately owned motor vehicle within continental United
States.
Sec. 632. Payment or reimbursement of student baggage storage costs for de-
pendent children of members stationed overseas.
Sec. 633. Reimbursement for lodging expenses of certain reserve component
and retired members during authorized leave from temporary
duty location.
Subtitle D—Retired Pay and Survivors Benefits
Sec. 641. Funding for special compensation authorities for Department of De-
fense retirees.
Subtitle E—Commissary and Nonappropriated Fund
Instrumentality Benefits
Sec. 651. Expanded commissary access for Selected Reserve members, reserve
retirees under age 60, and their dependents.
Sec. 652. Defense commissary system and exchange stores system.
Sec. 653. Limitations on private operation of defense commissary store func-
tions.
Sec. 654. Use of appropriated funds to operate defense commissary system.
Sec. 655. Recovery of nonappropriated fund instrumentality and commissary
store investments in real property at military installations
closed or realigned.
Sec. 656. Commissary shelf-stocking pilot program.
Subtitle F—Other Matters
Sec. 661. Repeal of congressional notification requirement for designation of
critical military skills for retention bonus.
TITLE VII—HEALTH CARE PROVISIONS
Sec. 701. Revision of Department of Defense medicare-eligible retiree health
care fund to permit more accurate actuarial valuations.
Sec. 702. Transfer of certain members from pharmacy and therapeutics com-
mittee to Uniform Formulary Beneficiary Advisory Panel
under the pharmacy benefits program.
Sec. 703. Permanent extension of authority to enter into personal services con-
tracts for the performance of health care responsibilities at lo-
cations other than military medical treatment facilities.
Sec. 704. Plan for providing health coverage information to members, former
members, and dependents eligible for certain health benefits.
Sec. 705. Working group on military health care for persons reliant on health
care facilities at military installations to be closed or realigned.
Sec. 706. Acceleration of implementation of chiropractic health care for mem-
bers on active duty.
Sec. 707. Medical and dental screening for members of selected reserve units
alerted for mobilization.
TITLE VIII—ACQUISITION POLICY, ACQUISITION
MANAGEMENT, AND RELATED MATTERS
Subtitle A—Amendments to General Contracting Authorities,
Procedures, and Limitations
Sec. 801. Extension of authority to carry out certain prototype projects.
Sec. 802. Elimination of certain subcontract notification requirements.
Sec. 803. Elimination of requirement to furnish written assurances of technical
data conformity.
Sec. 804. Limitation period for task and delivery order contracts.
Sec. 805. Additional authorities relating to obtaining personal services.
Sec. 806. Evaluation of prompt payment provisions.
Subtitle B—United States Defense Industrial Base Provisions
PART I—CRITICAL ITEMS IDENTIFICATION AND DOMESTIC PRODUCTION
CAPABILITIES IMPROVEMENT PROGRAM
Sec. 811. Assessment of United States defense industrial base capabilities.
Sec. 812. Identification of critical items: military system breakout list.
Sec. 813. Procurement of certain critical items from American sources.
Sec. 814. Production capabilities improvement for certain critical items using
Defense Industrial Base Capabilities Fund.
PART II—REQUIREMENTS RELATING TO SPECIFIC ITEMS
Sec. 821. Domestic source limitation for certain additional items.
Sec. 822. Requirements relating to buying commercial items containing spe-
cialty metals from American sources.
Sec. 823. Elimination of unreliable sources of defense items and components.
Sec. 824. Congressional notification required before exercising exception to re-
quirement to buy specialty metals from American sources.
Sec. 825. Repeal of authority for foreign procurement of para-aramid fibers
and yarns.
Sec. 826. Requirement for major defense acquisition programs to use machine
tools entirely produced within the United States.
Sec. 827. Data collection and technical assistance center relating to machine
tools.
Sec. 828. Buy American enhancement.
Sec. 829. Requirement relating to purchases by Department of Defense subject
to Buy American Act.
PART III—GENERAL PROVISIONS
Sec. 831. Definitions.
TITLE IX—DEPARTMENT OF DEFENSE ORGANIZATION
AND MANAGEMENT
Sec. 901. Change in title of Secretary of the Navy to Secretary of the Navy
and Marine Corps.
Sec. 902. Redesignation of National Imagery and Mapping Agency as National
Geospatial-intelligence Agency.
Sec. 903. Pilot program for provision of space surveillance network services to
non-United States governmental entities.
Sec. 904. Clarification of responsibility of military departments to support com-
batant commands.
Sec. 905. Biennial review of national military strategy by Chairman of the
Joint Chiefs of Staff.
Sec. 906. Authority for acceptance by Asia-Pacific Center for Security Studies
of gifts and donations from nonforeign sources.
Sec. 907. Repeal of rotating chairmanship of Economic Adjustment Committee.
Sec. 908. Pilot program for improved civilian personnel management.
Sec. 909. Extension of certain authorities applicable to the Pentagon Reserva-
tion to include designated Pentagon continuity-of-government
locations.
Sec. 910. Defense acquisition workforce reductions.
Sec. 911. Required force structure.
TITLE X—GENERAL PROVISIONS
Subtitle A—Financial Matters
Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 2003.
Sec. 1003. Authority to transfer procurement funds for a major defense acqui-
sition program for continued development work on that pro-
gram.
Sec. 1004. Restoration of authority to enter into 12-month leases at any time
during the fiscal year.
Sec. 1005. Authority for retention of additional amounts realized from energy
cost savings.
Sec. 1006. Repeal of requirement for two-year budget cycle for the Department
of Defense.
Sec. 1007. Authority to provide reimbursement for use of personal cellular tele-
phones when used for official government business.
Subtitle B—Naval Vessels and Shipyards
Sec. 1011. Repeal of requirement regarding preservation of surge capability for
naval surface combatants.
Sec. 1012. Enhancement of authority relating to use for experimental purposes
of vessels stricken from Naval Vessel Register.
Sec. 1013. Authorization for transfer of vessels stricken from Naval Vessel
Register for use as artificial reefs.
Sec. 1014. Pilot program for sealift ship construction.
Subtitle C—Reports
Sec. 1021. Repeal and modification of various reporting requirements applica-
ble to the Department of Defense.
Sec. 1022. Report on Operation Iraqi Freedom.
Sec. 1023. Report on Department of Defense post-conflict activities in Iraq.
Sec. 1024. Report on development of mechanisms to better connect Department
of Defense space capabilities to the war fighter.
Subtitle D—Procurement of Defense Biomedical
Countermeasures
Sec. 1031. Research and development of defense biomedical countermeasures.
Sec. 1032. Procurement of defense biomedical countermeasures.
Sec. 1033. Authorization for use of medical products in emergencies.
Subtitle E—Other Matters
Sec. 1041. Codification and revision of defense counterintelligence polygraph
program authority.
Sec. 1042. Codification and revision of limitation on modification of major
items of equipment scheduled for retirement or disposal.
Sec. 1043. Additional definitions for purposes of title 10, United States Code.
Sec. 1044. Inclusion of annual military construction authorization request in
annual defense authorization request.
Sec. 1045. Technical and clerical amendments.
Sec. 1046. Authority to provide living quarters for certain students in coopera-
tive and summer education programs of the National Security
Agency.
Sec. 1047. Use of drug interdiction and counter-drug funds to support activities
of the Government of Colombia.
Sec. 1048. Authority for joint task forces to provide support to law enforcement
agencies conducting counter-terrorism activities.
Sec. 1049. Use of National Driver Register for personnel security investigations
and determinations.
Sec. 1050. Protection of operational files of the National Security Agency.
Sec. 1051. Assistance for study of feasibility of biennial international air trade
show in the United States and for initial implementation.
Sec. 1052. Continuation of reasonable access to military installations for per-
sonal commercial solicitation.
Sec. 1053. Commission on Nuclear Strategy of the United States.
Sec. 1054. Extension of Counterproliferation Program Review Committee.
Sec. 1055. Assignment of members to assist Bureau of Border Security and
Bureau of Citizenship and Immigration Services of the Depart-
ment of Homeland Security.
Sec. 1056. Report concerning strategic nuclear warheads dismantled pursuant
to the Treaty Between the United States of America and the
Russian Federation on Strategic Offensive Reductions.
Sec. 1057. Pilot program to improve use of Air Force and Air National Guard
Modular Airborne Fire-Fighting Systems to fight wildfires.
Sec. 1058. Study on feasibility of use of small businesses, minority-owned busi-
nesses, and women-owned businesses in efforts to rebuild Iraq.
Sec. 1059. Sense of Congress regarding continuation of mission and functions
of Army Peacekeeping Institute.
Sec. 1060. Assessment of effects of specified statutory limitations on the grant-
ing of security clearances.
TITLE XI—DEPARTMENT OF DEFENSE CIVILIAN
PERSONNEL
Subtitle A—Department of Defense Civilian Personnel
Generally
Sec. 1101. Modification of the overtime pay cap.
Sec. 1102. Military leave for mobilized Federal civilian employees.
Sec. 1103. Common occupational and health standards for differential pay-
ments as a consequence of exposure to asbestos.
Sec. 1104. Increase in annual student loan repayment authority.
Sec. 1105. Authorization for cabinet secretaries, secretaries of military depart-
ments, and heads of executive agencies to be paid on a bi-
weekly basis.
Sec. 1106. Senior executive service and performance.
Sec. 1107. Design elements of pay-for-performance systems in demonstration
projects.
Sec. 1108. Federal flexible benefits plan administrative costs.
Sec. 1109. Clarification to Hatch Act; limitation on disclosure of certain
records.
Sec. 1110. Employee surveys.
Sec. 1111. Human Capital Performance Fund.
Subtitle B—Department of Defense National Security
Personnel System
Sec. 1121. Department of Defense national security personnel system.
TITLE XII—MATTERS RELATING TO OTHER NATIONS
Sec. 1201. Expansion of authority to provide administrative support and serv-
ices and travel and subsistence expenses for certain foreign liai-
son officers.
Sec. 1202. Recognition of superior noncombat achievements or performance by
members of friendly foreign forces and other foreign nationals.
Sec. 1203. Expansion of authority to waive charges for costs of attendance at
George C. Marshall European Center for Security Studies.
Sec. 1204. Identification of goods and technologies critical for military superi-
ority.
Sec. 1205. Report on acquisition by Iraq of advanced weapons.
Sec. 1206. Authority for check cashing and currency exchange services to be
provided to foreign military members participating in certain
activities with United States forces.
Sec. 1207. Requirements for transfer to foreign countries of certain specified
types of excess aircraft.
Sec. 1208. Limitation on number of United States military personnel in Colom-
bia.
Sec. 1209. Assessment and report concerning the location of NATO head-
quarters.
Sec. 1210. Sense of Congress on redeployment of United States forces in Eu-
rope.
Sec. 1211. Report on actions that could be taken regarding countries that ini-
tiate certain legal actions against United States officials.
Sec. 1212. Sense of Congress concerning Navy port calls in Israel.
Sec. 1213. Assistance to Iraqi children injured during Operation Iraqi Free-
dom.
TITLE XIII—COOPERATIVE THREAT REDUCTION
Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.
Sec. 1302. Funding allocations.
Sec. 1303. Limitation on use of funds until certain permits obtained.
Sec. 1304. Limitation on use of funds for biological research in the former So-
viet Union.
Sec. 1305. Authority and funds for nonproliferation and disarmament.
Sec. 1306. Requirement for on-site managers.
Sec. 1307. Provisions relating to funding for chemical weapons destruction fa-
cility in Russia.
Sec. 1308. Study relating to ex-Soviet uranium and plutonium.
TITLE XIV—SERVICES ACQUISITION REFORM
Sec. 1401. Short title.
Sec. 1402. Executive agency defined.
Subtitle A—Acquisition Workforce and Training
Sec. 1411. Definition of acquisition.
Sec. 1412. Acquisition workforce training fund.
Sec. 1413. Acquisition workforce recruitment program.
Sec. 1414. Architectural and engineering acquisition workforce.
Subtitle B—Adaptation of Business Acquisition Practices
Part I—Adaptation of Business Management Practices
Sec. 1421. Chief Acquisition Officers.
Sec. 1422. Chief Acquisition Officers Council.
Sec. 1423. Statutory and regulatory review.
Part II—Other Acquisition Improvements
Sec. 1426. Extension of authority to carry out franchise fund programs.
Sec. 1427. Agency acquisition protests.
Sec. 1428. Improvements in contracting for architectural and engineering serv-
ices.
Sec. 1429. Authorization of telecommuting for Federal contractors.
Subtitle C—Contract Incentives
Sec. 1431. Incentives for contract efficiency.
Subtitle D—Acquisitions of Commercial Items
Sec. 1441. Preference for performance-based contracting.
Sec. 1442. Authorization of additional commercial contract types.
Sec. 1443. Clarification of commercial services definition.
Sec. 1444. Designation of commercial business entities.
Subtitle E—Other Matters
Sec. 1451. Authority to enter into certain procurement-related transactions and
to carry out certain prototype projects.
Sec. 1452. Authority to make inflation adjustments to simplified acquisition
threshold.
Sec. 1453. Technical corrections related to duplicative amendments.
Sec. 1454. Prohibition on use of quotas.
Sec. 1455. Applicability of certain provisions to sole source contracts for goods
and services treated as commercial items.
Sec. 1456. Public disclosure of noncompetitive contracting for the reconstruc-
tion of infrastructure in Iraq.
TITLE XV—HIGHER EDUCATION RELIEF OPPORTUNITIES
FOR STUDENTS
Sec. 1501. Short title; reference.
Sec. 1502. Waiver authority for response to military contingencies and national
emergencies.
Sec. 1503. Tuition refunds or credits for members of Armed Forces.
Sec. 1504. Use of professional judgment.
Sec. 1505. Definitions.
Sec. 1506. Termination of authority.
DIVISION B—MILITARY CONSTRUCTION AUTHORIZATIONS
Sec. 2001. Short title.
TITLE XXI—ARMY
Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 2002
projects.
TITLE XXII—NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
TITLE XXIII—AIR FORCE
Sec. 2301. Authorized Air Force construction and land acquisition projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
TITLE XXIV—DEFENSE AGENCIES
Sec. 2401. Authorized Defense Agencies construction and land acquisition
projects.
Sec. 2402. Family housing.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
TITLE XXV—NORTH ATLANTIC TREATY ORGANIZATION
SECURITY INVESTMENT PROGRAM
Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.
TITLE XXVI—GUARD AND RESERVE FORCES FACILITIES
Sec. 2601. Authorized Guard and Reserve construction and land acquisition
projects.
TITLE XXVII—EXPIRATION AND EXTENSION OF
AUTHORIZATIONS
Sec. 2701. Expiration of authorizations and amounts required to be specified
by law.
Sec. 2702. Extension of authorization of certain fiscal year 2001 project.
Sec. 2703. Extension of authorizations of certain fiscal year 2000 projects.
Sec. 2704. Effective date.
TITLE XXVIII—GENERAL PROVISIONS
Subtitle A—Military Construction Program and Military
Family Housing Changes
Sec. 2801. Increase in maximum amount of authorized annual emergency con-
struction.
Sec. 2802. Authority to lease military family housing units in Italy.
Sec. 2803. Changes to alternative authority for acquisition and improvement of
military housing.
Sec. 2804. Additional material for annual report on housing privatization pro-
gram.
Sec. 2805. Authority to convey property at military installations closed or to be
closed in exchange for military construction activities.
Sec. 2806. Congressional notification and reporting requirements and limita-
tions regarding use of operation and maintenance funds for
construction.
Sec. 2807. Increase in authorized maximum lease term for family housing and
other facilities in certain foreign countries.
Sec. 2808. Annual report on military construction requirements to support
homeland defense missions of the Armed Forces.
Subtitle B—Real Property and Facilities Administration
Sec. 2811. Real property transactions.
Sec. 2812. Sense of Congress on demolition of Army Tacony Warehouse Depot
site, Philadelphia, Pennsylvania.
Subtitle C—Land Conveyances
Sec. 2821. Termination of lease and conveyance of Army Reserve facility,
Conway, Arkansas.
Sec. 2822. Actions to quiet title, Fallin Waters Subdivision, Eglin Air Force
Base, Florida.
Sec. 2823. Modification of land conveyance, Eglin Air Force Base, Florida.
Sec. 2824. Land conveyance, Fort Campbell, Kentucky and Tennessee.
Sec. 2825. Land conveyance, Army and Air Force Exchange Service Property,
Dallas, Texas.
Sec. 2826. Land conveyance, Naval Reserve Center, Orange, Texas.
Sec. 2827. Land conveyance, Fort Belvoir, Virginia.
Sec. 2828. Land conveyance, Puget Sound Naval Shipyard, Bremerton, Wash-
ington.
Subtitle D—Other Matters
Sec. 2841. Redesignation of Yuma Training Range Complex as Bob Stump
Training Range Complex.
Sec. 2842. Modification of authority to conduct a round of realignments and
closures of military installations in 2005.
Sec. 2843. Use of force-structure plan for the Armed Forces in preparation of
selection criteria for base closure round.
Sec. 2844. Requirement for unanimous vote of Defense Base Closure and Re-
alignment Commission to recommend closure of military instal-
lations not recommended for closure by Secretary of Defense.
Sec. 2845. Consideration of public-access-road issues related to disposal of
property at military installations under base closure process.
DIVISION C—DEPARTMENT OF ENERGY NATIONAL SECU-
RITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS
TITLE XXXI—DEPARTMENT OF ENERGY NATIONAL
SECURITY PROGRAMS
Subtitle A—National Security Programs Authorizations
Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.
Sec. 3105. Energy supply.
Subtitle B—Program Authorizations, Restrictions, and
Limitations
Sec. 3111. Modification of prohibition relating to low-yield nuclear weapons.
Sec. 3112. Termination of requirement for annual updates of long-term plan
for nuclear weapons stockpile life extension program.
Sec. 3113. Extension to all DOE facilities of authority to prohibit dissemina-
tion of certain unclassified information.
Sec. 3114. Department of Energy project review groups not subject to Federal
Advisory Committee Act by reason of inclusion of employees of
Department of Energy management and operating contractors.
Sec. 3115. Availability of funds.
Sec. 3116. Limitation on obligation of funds for Nuclear Test Readiness pro-
gram.
Sec. 3117. Requirement for on-site managers.
Subtitle C—Consolidation of National Security Provisions
Sec. 3121. Transfer and consolidation of recurring and general provisions on
Department of Energy national security programs.
TITLE XXXII—DEFENSE NUCLEAR FACILITIES SAFETY
BOARD
Sec. 3201. Authorization.
TITLE XXXIII—NATIONAL DEFENSE STOCKPILE
Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revisions to objectives for receipts for fiscal year 2000 disposals.
TITLE XXXIV—NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.
TITLE XXXV—MARITIME ADMINISTRATION
Subtitle A—General Provisions
Sec. 3501. Short title.
Sec. 3502. Definitions.
Subtitle B—Maritime Security Fleet
Sec. 3511. Establishment of Maritime Security Fleet.
Sec. 3512. Award of operating agreements.
Sec. 3513. Effectiveness of operating agreements.
Sec. 3514. Obligations and rights under operating agreements.
Sec. 3515. Payments.
Sec. 3516. National security requirements.
Sec. 3517. Regulatory relief.
Sec. 3518. Special rule regarding age of former participating fleet vessel.
Sec. 3519. Authorization of appropriations.
Sec. 3520. Amendment to Shipping Act, 1916.
Sec. 3521. Regulations.
Sec. 3522. Repeals and conforming amendments.
Sec. 3523. Effective dates.
Subtitle C—National Defense Tank Vessel Construction
Assistance
Sec. 3531. National defense tank vessel construction program.
Sec. 3532. Application procedure.
Sec. 3533. Award of assistance.
Sec. 3534. Priority for title XI assistance.
Sec. 3535. Authorization of appropriations.
Subtitle D—Maritime Administration Authorization
Sec. 3541. Authorization of appropriations for Maritime Administration for fis-
cal year 2004.
Sec. 3542. Authority to convey vessel USS HOIST (ARS–40).
Sec. 3543. Authority to convey NDRF vessels and vessel contents.
TITLE XXXVI—NUCLEAR SECURITY INITIATIVE
Sec. 3601. Short title.
Subtitle A—Nonproliferation Program Enhancements
Sec. 3611. Establishment of International Nuclear Materials Protection and
Cooperation Program in Department of State.
Subtitle B—Administration and Oversight of Threat Reduction
and Nonproliferation Programs
Sec. 3621. Analysis of effect on threat reduction and nonproliferation programs
of congressional oversight measures with respect to such pro-
grams.
Sec. 3622. Annual report on the use of funds appropriated for threat reduction
and nonproliferation in states of the former Soviet Union.
Sec. 3623. Plan for and coordination of chemical and biological weapons non-
proliferation programs with states of the former Soviet Union.
Subtitle C—United States—Russia Relations
Sec. 3631. Comprehensive inventories and data exchanges on nuclear weapons-
grade material and nuclear weapons.
Sec. 3632. Establishment of Duma-Congress nuclear threat reduction working
group.
Sec. 3633. Joint United States/North Atlantic Treaty Organization cooperation
with Russia on theater-level ballistic missile defenses.
Sec. 3634. Encouragement of enhanced collaboration to achieve more reliable
Russian early warning systems.
Sec. 3635. Teller-Kurchatov Alliance for Peace.
Sec. 3636. Nonproliferation fellowships.
Subtitle D—Other Matters
Sec. 3641. Promotion of discussions on nuclear and radiological security and
safety between the International Atomic Energy Agency and
the Organization for Economic Cooperation and Development.
SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
For purposes of this Act, the term ‘‘congressional de-
fense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on Armed Services and the
Committee on Appropriations of the House of Rep-
resentatives.
DIVISION A—DEPARTMENT OF
DEFENSE AUTHORIZATIONS
TITLE I—PROCUREMENT
Subtitle A—Authorization of
Appropriations
SEC. 101. ARMY.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for procurement for the Army as follows:
(1) For aircraft, $2,194,585,000.
(2) For missiles, $1,594,662,000.
(3) For weapons and tracked combat vehicles,
$2,197,404,000.
(4) For ammunition, $1,428,966,000.
(5) For other procurement, $4,321,496,000.
SEC. 102. NAVY AND MARINE CORPS.
(a) NAVY.—Funds are hereby authorized to be appro-
priated for fiscal year 2004 for procurement for the Navy
as follows:
(1) For aircraft, $9,050,048,000.
(2) For weapons, including missiles and tor-
pedoes, $2,529,821,000.
(3) For ammunition, $963,355,000.
(4) 
For 
shipbuilding 
and 
conversion,
$11,472,384,000.
(5) For other procurement, $4,614,892,000.
(b) MARINE CORPS.—Funds are hereby authorized to
be appropriated for fiscal year 2004 for procurement for
the Marine Corps in the amount of $1,154,299,000.
SEC. 103. AIR FORCE.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for procurement for the Air Force as fol-
lows:
(1) For aircraft, $12,604,451,000.
(2) For ammunition, $1,324,725,000.
(3) For missiles, $4,348,039,000.
(4) For other procurement, $11,376,059,000.
SEC. 104. DEFENSE-WIDE ACTIVITIES.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for Defense-wide procurement in the
amount of $3,734,821,000.
Subtitle B—Army Programs
SEC. 111. STRYKER VEHICLE PROGRAM.
(a) LIMITATION.—Of the funds authorized to be ap-
propriated under section 101 for procurement for the
Army for fiscal year 2004 that are available for the
Stryker vehicle program, not more than $655,000,000
may be obligated until—
(1) the Secretary of the Army has submitted to
the Deputy Secretary of Defense the report specified
in subsection (b);
(2) the Secretary of Defense has submitted to
the congressional defense committees the report and
certification referred to in subsection (c); and
(3) a period of 30 days has elapsed after the
date of the receipt by those committees of the report
and certification under paragraph (2).
(b) SECRETARY OF THE ARMY REPORT.—The report
referred to in subsection (a)(1) is the report required to
be submitted by the Secretary of the Army to the Deputy
Secretary of Defense not later than July 8, 2003, that
identifies options for modifications to the equipment and
configuration of the Army brigade designated as ‘‘Stryker
brigades’’ to assure that those brigades, after incor-
porating such modifications, provide—
(1) a higher level of combat capability and sus-
tainability;
(2) a capability across a broader spectrum of
combat operations; and
(3) a capability to be employed independently of
higher-level command formations and support.
(c) SECRETARY OF DEFENSE REPORT AND CERTIFI-
CATION.—The Secretary of Defense shall transmit to the
congressional defense committees not later than 30 days
after the date of the receipt by the Deputy Secretary of
Defense of the report of the Secretary of the Army re-
ferred to in subsection (b), the modification options identi-
fied by the Secretary of the Army for purposes of that
report. The Secretary of Defense shall include any com-
ments that may be applicable to the analysis of the Sec-
retary of the Army’s report and shall certify to the com-
mittees whether in the Secretary’s judgment fielding the
fourth Stryker brigade as planned by the Army in a dif-
ferent configuration from the first three such brigades will
fulfill the three objectives set forth in subsection (b).
(d) AUTHORIZED USE OF REMAINDER OF FUNDS.—
The funds authorized to be appropriated for procurement
for the Army for fiscal year 2004 that are available for
the Stryker vehicle program and that become available for
obligation upon the conditions of subsection (a) being met
shall be obligated either—
(1) to develop, procure, and field equipment
and capabilities for the fourth Stryker brigade com-
bat team that would accelerate the options for modi-
fications to enhance Stryker brigades identified in
subsection (b); or
(2) for the equipment identified in the fiscal
year 2004 budget request to be procured for the
fourth Stryker brigade, if the Secretary of Defense,
after reviewing the Secretary of Army’s report under
subsection (b), determines that the current configu-
ration of the fourth Stryker brigade meets the cri-
teria in paragraphs (1) through (3) of subsection (b)
and certifies to the congressional defense committees
that the equipment identified in the fiscal year 2004
budget request to be procured for the fourth Stryker
brigade provides those capabilities.
(e) LIMITATIONS.—(1) In obligating funds in accord-
ance with either paragraph (1) or paragraph (2) of sub-
section (d), no action may be taken that would delay,
hinder, or otherwise disrupt the current production and
fielding schedule for the fourth Stryker brigade.
(2) Notwithstanding any other provision of this sec-
tion, all funds authorized to be appropriated under section
101 for procurement for the Army for fiscal year 2004
that are available for the Stryker vehicle program shall
be used exclusively to develop, procure, and field Stryker
combat vehicles.
SEC. 112. CONFIGURATION OF FOURTH STRYKER BRIGADE
COMBAT TEAM.
(a) CONFIGURATION, LETHALITY ENHANCEMENTS,
AND SUSTAINABILITY.—The Secretary of the Army shall
configure the fourth Stryker brigade combat team so that
that brigade combat team provides the commanders of
combatant commands with enhanced combat capability
and 
sustainability 
well 
beyond 
the 
combat 
and
sustainment capabilities provided by any one of the first
three fielded Stryker brigade combat teams.
(b) FUNDS.—The amount provided in section 101(3)
is hereby increased by $100,000,000, to be available for
procurement of additional lethality and sustainability en-
hancements for the fourth Stryker brigade combat team.
(c) OPTIONS FOR CONSIDERATION.—In the execution
of the funds provided pursuant to subsection (b)(1), the
Secretary of the Army shall include among the enhance-
ments considered for the configuration of the fourth
Stryker brigade combat team enhancement with heavy ar-
mored vehicles, with additional heavy attack helicopters,
with additional reconnaissance and attack helicopters, and
with indirect fire artillery capabilities, or with any com-
bination thereof.
(d) REPORT REQUIRED.—Not later than 30 days
after the date of the enactment of this Act, the Secretary
of the Army shall submit to the congressional defense com-
mittees a report that details the additional types of
lethality and sustainability enhancements that will be
fielded as part of the new configuration of the fourth
Stryker brigade combat team.
Subtitle C—Navy Programs
SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A–
18 AIRCRAFT PROGRAM.
The Secretary of the Navy may, in accordance with
section 2306b of title 10, United States Code, enter into
a multiyear contract, beginning with the fiscal year 2005
program year, for procurement of aircraft in the F/A–
18E, F/A–18F, and EA–18G configurations. The total
number of aircraft procured through a multiyear contract
under this section may not exceed 234.
SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR
TACTICAL TOMAHAWK CRUISE MISSILE PRO-
GRAM.
The Secretary of the Navy may, in accordance with
section 2306b of title 10, United States Code, enter into
a multiyear contract, beginning with the fiscal year 2004
program year, for procurement of Tactical Tomahawk
cruise missiles. The total number of missiles procured
through a multiyear contract under this section shall be
determined by the Secretary of the Navy, based upon the
funds available, but not to exceed 900 in any year.
SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR VIR-
GINIA CLASS SUBMARINE PROGRAM.
(a) AUTHORITY.—The Secretary of the Navy may, in
accordance with section 2306b of title 10, United States
Code, enter into a multiyear contract, beginning with the
fiscal year 2004 program year, for procurement of seven
Virginia-class submarines.
(b) LIMITATION.—The Secretary of the Navy may
not enter into a contract authorized by subsection (a)
until—
(1) the Secretary submits to the congressional
defense committees a certification that the Secretary
has made each of the findings with respect to such
contract specified in subsection (a) of section 2306b
of title 10, United States Code; and
(2) a period of 30 days has elapsed after the
date of the transmission of such certification.
SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR E–
2C AIRCRAFT PROGRAM.
(a) AIRCRAFT.—The Secretary of the Navy may, in
accordance with section 2306b of title 10, United States
Code, enter into a multiyear contract, beginning with the
fiscal year 2004 program year, for procurement of four
E–2C and four TE–2C aircraft.
(b) ENGINES.—The Secretary of the Navy may, in
accordance with section 2306b of title 10, United States
Code, enter into a multiyear contract, beginning with the
fiscal year 2004 program year, for procurement of 16 en-
gines for aircraft in the E–2C or TE–2C configuration.
(c) LIMITATION ON TERM OF CONTRACTS.—Notwith-
standing subsection (k) of section 2306b of title 10,
United States Code, a contract under this section may not
be for a period in excess of four program years.
SEC. 125. LPD–17 CLASS VESSEL.
If after May 7, 2003, there is enacted an Act making
supplemental appropriations for the Department of De-
fense for fiscal year 2003 that includes appropriation of
an amount for procurement of Tomahawk cruise missiles
for the Navy, then—
(1) the amount provided in section 102 for pro-
curement of weapons for the Navy is reduced by the
amount so appropriated or by $200,000,000, which-
ever is less, with such reduction to be derived from
amounts authorized for procurement of Tomahawk
cruise missiles; and
(2) the amount provided in section 102 for
shipbuilding and conversion is increased by the
amount of the reduction under paragraph (1), with
the amount of such increase to be available for ad-
vance procurement of long-lead items, including the
advance fabrication of components, for one LPD–17
class vessel.
Subtitle D—Air Force Programs
SEC. 131. AIR FORCE AIR REFUELING TRANSFER ACCOUNT.
(a) TRANSFER ACCOUNT.—There is hereby estab-
lished an account for the Department of the Air Force
to be known as the Air Force Air Refueling Transfer Ac-
count. Amounts in such account may be used in accord-
ance with subsection (c).
(b) AUTHORIZATION OF APPROPRIATIONS.—Within
the amount provided in section 103(1), there is authorized
to be appropriated to the Air Force Air Refueling Transfer
Account for fiscal year 2004 the amount of $229,200,000.
(c) AUTHORIZED USE OF FUNDS.—Amounts in the
Air Force Air Refueling Transfer Account may be used
for any of the following purposes, as determined by the
Secretary of the Air Force:
(1) Necessary expenses for fiscal year 2004 to
prepare for leasing of tanker aircraft under section
8159 of the Department of Defense Appropriations
Act, 2002 (division A of Public Law 107–117; 115
Stat. 2284; 10 U.S.C. 2401a note).
(2) Necessary expenses for fiscal year 2004 to
prepare for purchase of tanker aircraft for the Air
Force.
(3) Retaining in active service (rather than re-
tiring) KC–135E aircraft.
(4) Maintenance of equipment for KC–135 air-
craft that was purchased through a depot.
(d) AUTHORIZED
TRANSFERS.—Subject to sub-
sections (e) and (f), the Secretary of the Air Force may
transfer funds in the Air Force Air Refueling Transfer
Account to appropriations of the Air Force available for
purposes set forth in subsection (c), including appropria-
tions available for procurement, for research, development,
test, and evaluation, for operation and maintenance, and
for military personnel (in the case of retaining KC–135E
aircraft in active service), in such amounts as the Sec-
retary determines necessary for such purpose.
(e) LIMITATION.—Amounts appropriated to the Air
Force Air Refueling Transfer Account pursuant to the au-
thorization of appropriations in subsection (b) may not be
used to enter into a lease for tanker aircraft or to enter
into a contract for procurement of tanker aircraft.
(f) NOTICE
TO CONGRESS.—A transfer of funds
under subsection (d) may not be made until—
(1) the Secretary of the Air Force notifies the
congressional defense committees in writing of the
amount and purpose of the proposed transfer, in-
cluding each account to which the transfer is to be
made; and
(2) a period of 30 days has elapsed after the
date on which the notice is received by those com-
mittees.
SEC. 132. INCREASE IN NUMBER OF AIRCRAFT AUTHOR-
IZED TO BE PROCURED UNDER MULTIYEAR
PROCUREMENT AUTHORITY FOR AIR FORCE
C–130J AIRCRAFT PROGRAM.
Section 131(a) of the Bob Stump National Defense
Authorization Act for Fiscal Year 2003 (Public Law 107–
314; 116 Stat. 2475) is amended by striking ‘‘40 C–130J
aircraft’’ and inserting ‘‘42 C–130J aircraft’’.
SEC. 133. LIMITATION ON RETIRING C–5 AIRCRAFT.
(a) LIMITATION.—The Secretary of the Air Force
may not proceed with a decision to retire C–5A aircraft
from the active inventory of the Air Force in any number
C–5A aircraft to the configuration referred to in sub-
section (a)(1) regarding both overall suitability and defi-
ciencies of the program to improve performance of the C–
5A aircraft relative to requirements and specifications for
reliability, maintainability, and availability of that aircraft
as in effect on May 1, 2003.
SEC. 134. LIMITATION ON OBLIGATION OF FUNDS FOR PRO-
CUREMENT OF F/A–22 AIRCRAFT.
(a) LIMITATION.—Of the amount appropriated for
fiscal year 2004 for procurement of F/A–22 aircraft,
$136,000,000 may not be obligated until the Under Sec-
retary of Defense for Acquisition, Technology, and Logis-
tics submits to the congressional defense committees the
Under Secretary’s certification that—
(1) the four primary aircraft designated to par-
ticipate in the dedicated initial operational test and
evaluation program for the F/A–22 aircraft have
each been equipped with the version of the avionics
software operational flight program that is des-
ignated as version 3.1.2 or a later version; and
(2) before the commencement of that dedicated
initial operational test and evaluation program,
those four aircraft (as so equipped) demonstrate, on
average, an avionics software mean time between in-
stability events of at least 20 hours.
(b) CONTINGENCY
WAIVER
AUTHORITY.—If the
Under Secretary notifies the Secretary of Defense that the
Under Secretary is unable to make the certification de-
scribed in subsection (a), the Secretary may waive the lim-
itation under that subsection. Upon making such a
waiver—
(1) the Secretary of Defense shall notify the
congressional defense committees of the waiver and
of the reasons therefor; and
(2) the funds described in subsection (a) may
then be obligated, by reason of such waiver, after
the end of the 30-day period beginning on the date
on which the Secretary’s notification is received by
those committees.
TITLE II—RESEARCH, DEVELOP-
MENT, TEST, AND EVALUA-
TION
Subtitle A—Authorization of
Appropriations
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for the use of the Department of Defense
for research, development, test, and evaluation as follows:
(1) For the Army, $9,332,382,000.
(2) For the Navy, $14,343,360,000.
(3) For the Air Force, $20,548,867,000.
(4) 
For 
Defense-wide 
activities,
$18,461,046,000, of which $286,661,000 is author-
ized for the Director of Operational Test and Eval-
uation.
SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECH-
NOLOGY.
(a) FISCAL YEAR 2004.—Of the amounts authorized
to be appropriated by section 201, $10,893,077,000 shall
be available for the Defense Science and Technology Pro-
gram, including basic research, applied research, and ad-
vanced technology development projects.
(b) BASIC RESEARCH, APPLIED RESEARCH, AND AD-
VANCED TECHNOLOGY DEVELOPMENT DEFINED.—For
purposes of this section, the term ‘‘basic research, applied
research, and advanced technology development’’ means
work funded in program elements for defense research and
development under Department of Defense category 6.1,
6.2, or 6.3.
SEC. 203. PROGRAM INCREASES.
(a) COMPUTER-ASSISTED
MEDICAL
DIAGNOSTIC
TECHNOLOGY.—The amount provided in section 201(1)
for research, development, test, and evaluation, Army, is
hereby increased by $3,000,000, to be available for Med-
ical Advanced Technology in Program Element 0603002A
for evaluation for potential use by Department of Defense
medical treatment facilities of commercially available med-
ical diagnostic technology that, using a digital chemical
library and decision support software, can be used for di-
agnosis of dermatological diseases.
(b) LIGHTWEIGHT CARTRIDGE CASES FOR AMMUNI-
TION.—The amount provided in section 201(1) for re-
search, development, test, and evaluation, Army, is hereby
increased by $3,000,000, to be available for Weapons and
Munitions Advanced Technology in Program Element
0603004A for advanced technology development for light-
weight cartridge cases for ammunition.
(c) 
AVIATION-SHIPBOARD
INFORMATION
TECH-
NOLOGY.—The amount provided in section 201(2) for re-
search, development, test, and evaluation, Navy, is hereby
increased by $6,500,000, to be available for Shipboard
Aviation Systems in Program Element 0604512N to com-
plete research and development for the Aviation-Shipboard
Information Technology Initiative.
(d) AUTOREAD.—The amount provided in section
201(2) for research, development, test, and evaluation,
Navy, is hereby increased by $1,400,000, to be available
for Shipboard Aviation Systems in Program Element
0604512N to complete research and development for the
AutoREAD system for improving the accuracy and reduc-
ing the workload of collecting preventive maintenance data
on aircraft launch and recovery systems.
(e) SPIKE URBAN WARFARE SYSTEM.—The amount
provided in section 201(2) for research, development, test,
and evaluation, Navy, is hereby increased by $5,000,000,
to be available for the Marine Corps Advanced Technology
Demonstrations in Program Element 0603640M for devel-
opment and demonstration of the SPIKE urban warfare
system.
(f) RESEARCH IN HYDROGRAPHIC SCIENCES.—The
amount provided in section 201(2) for research, develop-
ment, test, and evaluation, Navy, is hereby increased by
$3,250,000, to be available for Air/Ocean Tactical Appli-
cations advanced component development and prototyping
in Program Element 0603207N for hydrographic sciences
research.
(g) SHIPBOARD ELECTRONIC WARFARE IMPROVE-
MENTS.—The amount provided in section 201(2) for re-
search, development, test, and evaluation, Navy, is hereby
increased by $5,000,000, to be available for system devel-
opment and demonstration for Tactical Command Sys-
tems in Program Element 0604231N for an at-sea dem-
onstration for shipboard use of a variant of the F/A-22
digital electronic warfare product improvement program.
(h) AEROSPACE SENSORS.—The amount provided in
section 201(3) for research, development, test, and evalua-
tion, Air Force, is hereby increased by $4,000,000, to be
available for Aerospace Sensors in Program Element
0602204F 
for 
development 
of 
general 
purpose
reconfigurable signal processors suitable for time critical
sensor processing for broad military intelligence, surveil-
lance, and reconnaissance applications.
(i) ELEMENTAL
DETECTOR
TECHNOLOGY
AP-
PRAISAL.—The amount provided in section 201(4) for re-
search, development, test, and evaluation, Defense-Wide,
is hereby increased by $2,000,000, to be available for Pro-
gram Element 0603750D8Z, Advanced Concept Tech-
nology Demonstrations, to evaluate the capability of an
elemental detector to provide directional cueing to con-
centrations of specific elements and compounds.
(j) MUSTARD GAS ANTIDOTE.—The amount provided
in section 201(4) for research, development, test, and eval-
uation, Defense-wide, is hereby increased by $5,000,000,
to be available for Chemical-Biological Defense Applied
Research in Program Element 0603284BP for continuing
applied research on an antidote for mustard gas.
Subtitle 
B—Program 
Require-
ments, Restrictions, and Limita-
tions
SEC. 211. COLLABORATIVE PROGRAM FOR DEVELOPMENT
OF ELECTROMAGNETIC GUN TECHNOLOGY.
(a) PROGRAM REQUIRED.—The Secretary of Defense
shall establish and carry out a collaborative program for
evaluation and demonstration of advanced technologies
and concepts for advanced gun systems that use electro-
magnetic propulsion for direct and indirect fire applica-
tions.
(b) DESCRIPTION
OF
PROGRAM.—The program
under subsection (a) shall be carried out collaboratively
pursuant to a memorandum of agreement to be entered
into among the Secretary of the Army, the Secretary of
the Navy, and the Director of the Defense Advanced Re-
search Projects Agency. The program shall include the fol-
lowing activities:
(1) Identification of technical objectives, quan-
tified technical barriers, and enabling technologies
associated with development of the objective electro-
magnetic gun systems envisioned to meet the needs
of each of the Armed Forces and, in so doing, identi-
fication of opportunities for development of compo-
nents or subsystems common to those envisioned
gun systems.
(2) Preparation of a time-based plan for devel-
opment of electromagnetic gun systems for direct
fire applications, indirect fire applications, or both
direct and indirect fire applications (in the case of
the Army and Marine Corps) and for indirect fire
applications (in the case of the Navy), which—
(A) 
includes 
the 
programs 
currently
planned by the Army and by the Navy and
demonstrates how the enabling technologies
common to such Army and Navy programs are
used; and
(B) provides estimated dates for decision
points, prototype demonstrations, and transi-
tions of successful cases from the collaborative
program under this section to an acquisition
program.
(3) For each of the enabling technologies com-
mon to the Army and Navy programs, identification
of whether lead responsibility for developing that
technology should be assigned to the Secretary of
the Army, the Secretary of the Navy, or the Direc-
tor, with the Director favored in cases in which the
technology is highly challenging or high risk, high
reward, and with each such Secretary favored in
cases in which that Secretary’s military department
possesses superior expertise or experience with the
technology.
(4) Identification of a strategy for the partici-
pation of industry in the program.
(c) MATTERS
INCLUDED.—The advanced tech-
nologies and concepts included under the program may in-
clude, but are not limited to, the following:
(1) Advanced electrical power, energy storage,
and switching systems.
(2) Electromagnetic launcher materials and
construction techniques for long barrel life.
(3) Guidance and control systems for electro-
magnetically launched projectiles.
(4) Advanced projectiles and other munitions
for electromagnetic gun systems.
(5) Hypervelocity terminal effects.
(d) RELATIONSHIP
TO SEPARATE PROGRAMS
OF
MILITARY DEPARTMENTS.—The Secretary of the Army
and the Secretary of the Navy shall carry out separate
programs for the evaluation and demonstration of ad-
vanced technologies and concepts for, and for the further
development and acquisition of, advanced gun systems re-
ferred to in subsection (a). Each such Secretary shall in-
corporate in that Secretary’s program the most promising
of the technology products matured under the program
under subsection (a).
(e) REPORT.—Not later than March 31, 2004, the
Secretary of the Army, the Secretary of the Navy, and
the Director of the Defense Advanced Research Projects
Agency shall jointly submit a report to the congressional
defense committees on the implementation of the program
under subsection (a). The report shall include the fol-
lowing:
(1) A description of the memorandum of agree-
ment entered into under subsection (b).
(2) The time-based plan required by subsection
(b)(2).
(3) A description of the goals and objectives of
the program.
(4) Identification of funding required for fiscal
year 2004 and for the future years defense program
to carry out the program.
(5) A description of a plan for industry partici-
pation in the program.
SEC. 212. AUTHORITY TO SELECT CIVILIAN EMPLOYEE OF
DEPARTMENT OF DEFENSE AS DIRECTOR OF
DEPARTMENT OF DEFENSE TEST RESOURCE
MANAGEMENT CENTER.
Section 196(b)(1) of title 10, United States Code, is
amended—
(1) in the first sentence, by inserting before the
period at the end the following: ‘‘or from among sen-
ior civilian officials or employees of the Department
of Defense who have substantial experience in the
field of test and evaluation’’; and
(2) in the second sentence, by striking ‘‘vice ad-
miral’’ and inserting ‘‘the grade of vice admiral, or,
in the case of a civilian official or employee, an
equivalent level’’.
SEC. 213. DEVELOPMENT OF THE JOINT TACTICAL RADIO
SYSTEM.
(a) JOINT PROGRAM OFFICE.—The Secretary of De-
fense shall designate a single joint program office within
the Department of Defense for management of the Joint
Tactical Radio System development program. The Sec-
retary shall provide for the head of that office to be se-
lected on a rotating basis from among officers of different
Armed Forces.
(b) CONSOLIDATED PROGRAM ELEMENTS.—The Sec-
retary shall provide that all funds for development and
procurement of the Joint Tactical Radio System program
shall be consolidated under and managed by the head of
the joint program office designated under subsection (a).
(c) PROGRAM DEVELOPMENT.—The Secretary shall
provide that, subject to the authority, direction, and con-
trol of the Secretary, the head of the joint program office
designated under subsection (a) shall—
(1) establish and control the performance speci-
fications for the Joint Tactical Radio System;
(2) establish and control the standards for de-
velopment of the software and equipment for that
system;
(3) establish and control the standards for op-
eration of that system; and
(4) develop a single, unified concept of oper-
ations for all users of that system.
SEC. 214. FUTURE COMBAT SYSTEMS.
(a) LIMITATION.—None of the funds authorized to
be appropriated under section 201(1) for development and
demonstration of systems for the Future Combat Systems
program may be obligated or expended until 30 days after
the Secretary of the Army submits to the congressional
defense committees a report on such program. The report
shall include the following:
(1) The findings and conclusions of—
(A) the review of the Future Combat Sys-
tems program carried out by the independent
panel at the direction of the Secretary of De-
fense; and
(B) the milestone B review of the Future
Combat Systems program carried out by the de-
fense acquisition board.
(2) For each of the key performance param-
eters relating to the Future Combat Systems pro-
gram, the threshold value at which the utility of the
individual systems comprising the Future Combat
Systems program become questionable.
(3) For each of the three projects requested
under program element 64645A, Armored Systems
Modernization, a completed analysis of alternatives.
(b) SEPARATE PROGRAM ELEMENTS.—For fiscal
years beginning with 2004, the Secretary of Defense shall
ensure that—
(1) each project under the Army’s Future Com-
bat Systems program (whether in existence before,
on, or after the date of the enactment of this Act)
is assigned a separate, dedicated program element;
and
(2) before such a program element is assigned
to such a project, an analysis of alternatives for such
project is completed.
SEC. 215. ARMY PROGRAM TO PURSUE TECHNOLOGIES
LEADING TO THE ENHANCED PRODUCTION
OF TITANIUM BY THE UNITED STATES.
(a) EFFORTS REQUIRED.—The Secretary of Defense
shall—
(1) assess promising technologies leading to the
enhanced production of titanium by the United
States; and
(2) select, on a competitive basis, the most via-
ble such technologies for research, development, and
production.
(b) EXECUTIVE AGENT.—The Secretary of the Army
shall serve as executive agent in carrying out subsection
(a).
(c) FUNDING.—Of the funds authorized to be appro-
priated by section 201(1) for research, development, test,
and evaluation, Army, for fiscal year 2004, $8,000,000
shall be available in program element 62624A to carry out
this section.
SEC. 216. EXTENSION OF REPORTING REQUIREMENT FOR
RAH–66 COMANCHE AIRCRAFT PROGRAM.
Section 211 of the Bob Stump National Defense Au-
thorization Act for Fiscal Year 2003 (Public Law 107–
314; 116 Stat. 2479) is amended in subsection (a) by in-
serting ‘‘and fiscal year 2004’’ after ‘‘fiscal year 2003’’.
SEC. 217. STUDIES OF FLEET PLATFORM ARCHITECTURES
FOR THE NAVY.
(a) INDEPENDENT STUDIES.—(1) The Secretary of
Defense shall provide for the performance of eight inde-
pendent studies on alternative future fleet platform archi-
tectures for the Navy.
(2) The Secretary shall forward the results of each
study to the congressional defense committees not later
than March 1, 2004.
(3) Each such study shall be submitted both in un-
classified, and to the extent necessary, in classified
versions.
(b) ENTITIES
TO PERFORM STUDIES.—The Sec-
retary of Defense shall provide for the studies under sub-
section (a) to be performed as follows:
(1) One shall be performed by the Secretary of
the Navy, using Department of the Navy personnel.
(2) Four shall be performed by qualified analyt-
ical organizations external to Department of De-
fense.
(3) Three shall be performed by defense firms,
or teams of defense firms, in the private sector.
(c) PERFORMANCE OF STUDIES.—(1) The Secretary
of Defense shall require each entity undertaking one of
the studies under this section to commit to performing the
study independently from the other studies and, in the
case of the entities selected under paragraphs (2) and (3)
of subsection (b), independently from the Navy, so as to
ensure independent analysis.
(2) In performing a study under this section, the enti-
ty performing the study shall consider the following:
(A) The National Security Strategy of the
United States.
(B) Potential future threats to the United
States and to United States naval forces.
(C) The traditional roles and missions of
United States naval forces.
(D) Alternative roles and missions.
(E) The role of evolving technology on future
naval forces.
(F) Opportunities for reduced manning and un-
manned ships and vehicles in future naval forces.
(3) Each entity performing a study under this sec-
tion, while cognizant of current overall fleet platform ar-
chitecture, shall not allow the current features of fleet
platform architecture to constrain the analysis for pur-
poses of that study.
(d) NAVAL STUDIES.—Each study under this section
shall present one or two possible overall fleet platform ar-
chitectures. For each such architecture presented, the
study shall include the following:
(1) The numbers, kinds, and sizes of vessels,
the numbers and types of associated manned and
unmanned vehicles, and the basic capabilities of each
of those platforms.
(2) Other information needed to understand
that architecture in basic form and the supporting
analysis.
(e) COSTS.—Within the amount provided in section
201(2), the amount of $1,600,000 is authorized, within
Program Element 65154N, for the purposes of this sec-
tion.
Subtitle C—Ballistic Missile
Defense
SEC. 221. ENHANCED FLEXIBILITY FOR BALLISTIC MISSILE
DEFENSE SYSTEMS.
(a) FLEXIBILITY FOR SPECIFICATION OF PROGRAM
ELEMENTS.—Subsection (a) of section 223 of title 10,
United States Code, is amended—
(1) by inserting ‘‘BY PRESIDENT’’ in the sub-
section heading after ‘‘SPECIFIED’’;
(2) by striking ‘‘program elements governing
functional areas as follows:’’ and inserting ‘‘such
program elements as the President may specify.’’;
and
(3) by striking paragraphs (1) through (6).
(b) CONFORMING AMENDMENTS.—(1) Subsection (c)
of such section is amended by striking ‘‘for each program
element specified in subsection (a)’’ and inserting ‘‘for a
fiscal year for any program element specified for that fis-
cal year pursuant to subsection (a)’’.
(2) Subsection (c)(3) of section 232 of the National
Defense Authorization Act for Fiscal Year 2002 (Public
Law 107–107; 115 Stat. 1037; 10 U.S.C. 2431 note) is
amended by striking ‘‘each functional area’’ and all that
follows through ‘‘subsection (b),’’ and inserting ‘‘each
then-current program element for ballistic missile defense
systems in effect pursuant to subsection (a) or (b)’’.
(c) AMENDMENTS RELATING TO CHANGES IN ACQUI-
SITION TERMINOLOGY.—(1) Section 223(b)(2) of title 10,
United States Code, is amended by striking ‘‘means the
development phase whose’’ and inserting ‘‘means the pe-
riod in the course of an acquisition program during which
the’’.
(2) Subsection (d)(1) of section 232 of the National
Defense Authorization Act for Fiscal Year 2002 (Public
Law 107–107; 115 Stat. 1037; 10 U.S.C. 2431 note) is
amended by striking ‘‘, as added by subsection (b)’’.
TITLE III—OPERATION AND
MAINTENANCE
Subtitle A—Authorization of
Appropriations
SEC. 301. OPERATION AND MAINTENANCE FUNDING.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
expenses, not otherwise provided for, for operation and
maintenance, in amounts as follows:
(1) For the Army, $25,050,587,000.
(2) For the Navy, $27,901,790,000.
(3) For the Marine Corps, $3,517,756,000.
(4) For the Air Force, $25,434,460,000.
(5) 
For 
Defense-wide 
activities,
$16,134,047,000.
(6) For the Army Reserve, $1,954,009,000.
(7) For the Naval Reserve, $1,171,921,000.
(8) 
For 
the 
Marine 
Corps 
Reserve,
$199,452,000.
(9) For the Air Force Reserve, $2,170,188,000.
(10) 
For 
the 
Army 
National 
Guard,
$4,194,331,000.
(11) 
For 
the 
Air 
National 
Guard,
$4,404,646,000.
(12) For the United States Court of Appeals
for the Armed Forces, $10,333,000.
(13) For Environmental Restoration, Army,
$396,018,000.
(14) For Environmental Restoration, Navy,
$256,153,000.
(15) For Environmental Restoration, Air Force,
$384,307,000.
(16) For Environmental Restoration, Defense-
wide, $24,081,000.
(17) For Environmental Restoration, Formerly
Used Defense Sites, $212,619,000.
(18) For Overseas Humanitarian, Disaster, and
Civic Aid programs, $59,000,000.
(19) For Cooperative Threat Reduction pro-
grams, $450,800,000.
(20) United States Industrial Base Capabilities
Fund, $100,000,000.
SEC. 302. WORKING CAPITAL FUNDS.
Funds are hereby authorized to be appropriated for
fiscal year 2004 for the use of the Armed Forces and other
activities and agencies of the Department of Defense for
providing capital for working capital and revolving funds
in amounts as follows:
(1) For the Defense Working Capital Funds,
$632,261,000.
(2) For the National Defense Sealift Fund,
$1,102,762,000.
(3) For the Defense Commissary Agency Work-
ing Capital Fund, $1,089,246,000.
SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.
(a) DEFENSE HEALTH PROGRAM.—Funds are here-
by authorized to be appropriated for the Department of
Defense for fiscal year 2004 for expenses, not otherwise
provided 
for, 
for 
the 
Defense 
Health 
Program,
$15,317,063,000, of which—
(1) $14,923,441,000 is for Operation and
Maintenance;
(2) $65,796,000 is for Research, Development,
Test, and Evaluation; and
(3) $327,826,000 is for Procurement.
(b) CHEMICAL AGENTS AND MUNITIONS DESTRUC-
TION, DEFENSE.—(1) Funds are hereby authorized to be
appropriated for the Department of Defense for fiscal year
2004 for expenses, not otherwise provided for, for Chem-
ical 
Agents 
and 
Munitions 
Destruction, 
Defense,
$1,580,261,000, of which—
(A) $1,249,168,000 is for Operation and Main-
tenance;
(B) $251,881,000 is for Research, Develop-
ment, Test, and Evaluation; and
(C) $79,212,000 is for Procurement.
(2) Amounts authorized to be appropriated under
paragraph (1) are authorized for—
(A) the destruction of lethal chemical agents
and munitions in accordance with section 1412 of
the Department of Defense Authorization Act, 1986
(50 U.S.C. 1521); and
(B) the destruction of chemical warfare mate-
riel of the United States that is not covered by sec-
tion 1412 of such Act.
(c) DRUG INTERDICTION AND COUNTER-DRUG AC-
TIVITIES, DEFENSE-WIDE.—Funds are hereby authorized
to be appropriated for the Department of Defense for fis-
cal year 2004 for expenses, not otherwise provided for, for
Drug Interdiction and Counter-Drug Activities, Defense-
wide, $817,371,000.
(d) DEFENSE INSPECTOR GENERAL.—Funds are
hereby authorized to be appropriated for the Department
of Defense for fiscal year 2004 for expenses, not otherwise
provided for, for the Office of the Inspector General of
the Department of Defense, $162,449,000.
SEC. 304. COUNTEREXPLOITATION INITIATIVE.
Within the amount authorized to be appropriated by
section 301(5) for operations and maintenance, Defense-
wide, the amount for the United States Special Operations
Command is hereby increased by $1,100,000, to be made
available for the initiative for accurately tracing portable,
sensitive items exported beyond the borders of the United
States.
SEC. 305. REDUCTION IN AUTHORIZATION FOR AIR FORCE
OPERATION AND MAINTENANCE ACCOUNT.
The amount authorized to be appropriated in section
301(4) is hereby reduced by $135,500,000.
Subtitle B—Environmental
Provisions
SEC. 311. REAUTHORIZATION AND MODIFICATION OF TITLE
I OF SIKES ACT.
(a) REAUTHORIZATION.—Section 108 of the Sikes
Act (16 U.S.C. 670f) is amended by striking ‘‘fiscal years
1998 through 2003’’ each place it appears and inserting
‘‘fiscal years 2004 through 2008’’.
(b) SENSE
OF CONGRESS REGARDING SECTION
107.—(1) Congress finds the following:
(A) The Department of Defense maintains over
25,000,000 acres of valuable fish and wildlife habi-
tat on approximately 400 military installations na-
tionwide.
(B) These lands contain a wealth of plant and
animal life, vital wetlands for migratory birds, and
nearly 300 federally listed threatened species and
endangered species.
(C) Increasingly, land surrounding military
bases are being developed with residential and com-
mercial infrastructure that fragments fish and wild-
life habitat and decreases its ability to support a di-
versity of species.
(D) Comprehensive conservation plans, such as
integrated natural resource management plans under
the Sikes Act (16 U.S.C. 670 et seq.), can ensure
that these ecosystem values can be protected and en-
hanced while allowing these lands to meet the needs
of military operations.
(E) Section 107 of the Sikes Act (16 U.S.C.
670e–2) requires sufficient numbers of professionally
trained natural resources management personnel
and natural resources law enforcement personnel to
be available and assigned responsibility to perform
tasks necessary to carry out title I of the Sikes Act,
including the preparation and implementation of in-
tegrated natural resource management plans.
(F) Managerial and policymaking functions per-
formed by Department of Defense on-site profes-
sionally trained natural resource management per-
sonnel on military installations are appropriate gov-
ernmental functions.
(G) Professionally trained civilian biologists in
permanent Federal Government career managerial
positions are essential to oversee fish and wildlife
and natural resource conservation programs are es-
sential to the conservation of wildlife species on mili-
tary land.
(2) It is the sense of Congress that the Secretary of
Defense should take whatever steps are necessary to en-
sure that section 107 of the Sikes Act (16 U.S.C. 670e–
2) is fully implemented consistent with the findings made
in paragraph (1).
(c) PILOT PROGRAM FOR INVASIVE SPECIES MAN-
AGEMENT FOR MILITARY INSTALLATIONS.—(1) Section
101(b)(1) of the Sikes Act (16 U.S.C. 670a(b)(1)) is
amended by redesignating subparagraphs (D) through (J)
in order as subparagraphs (E) through (K), and by insert-
ing after subparagraph (C) the following:
‘‘(D) during fiscal years 2004 through
2008, in the case of a plan for a military instal-
lation in Guam, management, control, and
eradication of invasive species that are not na-
tive to the ecosystem of the military installation
and the introduction of which cause or may
cause harm to military readiness, the environ-
ment, the economy, or human health and safe-
ty;’’.
(2) The amendment made by paragraph (1) shall
apply—
(A) to any integrated natural resources man-
agement plan prepared for a military installation in
Guam under section 101(a)(1) of the Sikes Act (16
U.S.C. 670a(a)(1)) on or after the date of the enact-
ment of this Act; and
(B) to any integrated natural resources man-
agement plan prepared for a military installation in
Guam under section 101(a)(1) of the Sikes Act (16
U.S.C. 670a(a)(1)) before the date of the enactment
of this Act, effective March 1, 2004.
SEC. 312. AUTHORIZATION FOR DEFENSE PARTICIPATION
IN WETLAND MITIGATION BANKS.
(a) IN GENERAL.—Chapter 159 of title 10, United
States Code, is amended by inserting after section 2694a
the following new section:
‘‘§ 2694b. Participation in wetland mitigation banks
‘‘(a) AUTHORITY TO PARTICIPATE.—The Secretary
of a military department, and the Secretary of Defense
with respect to matters concerning a Defense Agency,
when engaged in an authorized activity that may or will
result in the destruction of, or an adverse impact to, a
wetland, may make payments to a wetland mitigation
banking program or ‘in-lieu-fee’ mitigation sponsor ap-
proved in accordance with the Federal Guidance for the
Establishment, Use and Operation of Mitigation Banks
(60 Fed. Reg. 58605; November 28, 1995) or the Federal
Guidance on the Use of In-Lieu-Fee Arrangements for
Compensatory Mitigation Under Section 404 of the Clean
Water Act and Section 10 of the Rivers and Harbors Act
(65 Fed. Reg. 66913; November 7, 2000), or any suc-
cessor administrative guidance.
‘‘(b) ALTERNATIVE TO CREATION OF WETLAND.—
Participation in a wetland mitigation banking program or
consolidated user site under subsection (a) shall be in lieu
of mitigating wetland impacts through the creation of a
wetland on Federal property.
‘‘(c) TREATMENT OF PAYMENTS.—Payments made
under subsection (a) to a wetland mitigation banking pro-
gram or consolidated user site may be treated as eligible
project costs for military construction.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 2694a the following new
item:
‘‘2694b. Participation in wetland mitigation banks.’’.
SEC. 313. INCLUSION OF ENVIRONMENTAL RESPONSE
EQUIPMENT AND SERVICES IN NAVY DEFINI-
TIONS OF SALVAGE FACILITIES AND SAL-
VAGE SERVICES.
(a) SALVAGE FACILITIES.—Section 7361 of title 10,
United States Code, is amended by adding at the end the
following new subsection:
‘‘(e) SALVAGE FACILITIES DEFINED.—In this sec-
tion, the term ‘salvage facilities’ includes equipment and
gear utilized to prevent, abate, or minimize damage to the
environment in connection with a marine salvage oper-
ation.’’.
(b) SETTLEMENT OF CLAIMS FOR SALVAGE SERV-
ICES.—Section 7363 of such title is amended—
(1) by inserting ‘‘(a) AUTHORITY TO SETTLE
CLAIM.—’’ before ‘‘The Secretary’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) SALVAGE SERVICES DEFINED.—In this section,
the term ‘salvage services’ includes services performed in
connection with a marine salvage operation that are in-
tended to prevent, abate, or minimize damage to the envi-
ronment.’’.
SEC. 314. CLARIFICATION OF DEPARTMENT OF DEFENSE
RESPONSE 
TO 
ENVIRONMENTAL 
EMER-
GENCIES.
(a) TRANSPORTATION
OF HUMANITARIAN RELIEF
SUPPLIES
TO RESPOND
TO ENVIRONMENTAL EMER-
GENCIES.—Section 402 of title 10, United States Code,
is amended—
(1) by redesignating subsection (d) as sub-
section (e); and
(2) by inserting after subsection (c) the fol-
lowing new subsection (d):
‘‘(d) 
RESPONSE
TO
ENVIRONMENTAL
EMER-
GENCIES.—The authority of the Secretary of Defense to
transport humanitarian relief supplies under this section
includes the authority to transport supplies intended for
use to respond to, or mitigate the effects of, an event or
condition, such as an oil spill, that threatens serious harm
to the environment.’’.
(b) CONDITIONS
ON
PROVISION
OF
TRANSPOR-
TATION.—Subsection (b) of such section is amended—
(1) in paragraph (1)(C), by inserting ‘‘or enti-
ty’’ after ‘‘people’’;
(2) in paragraph (1)(E), by inserting ‘‘or use’’
after ‘‘distribution’’; and
(3) in paragraph (3), by striking ‘‘donor to en-
sure that supplies to be transported under this sec-
tion’’ and inserting ‘‘entity requesting the transport
of supplies under this section to ensure that the sup-
plies’’.
(c) PROVISION OF DISASTER ASSISTANCE.—Section
404 of such title is amended—
(1) in subsection (a), by inserting ‘‘or serious
harm to the environment’’ after ‘‘loss of lives’’; and
(2) in subsection (c)(2), by inserting ‘‘or the en-
vironment’’ after ‘‘human lives’’.
(d) PROVISION OF HUMANITARIAN ASSISTANCE.—
Section 2561(a) of such title is amended—
(1) by inserting ‘‘(1)’’ before ‘‘To the extent’’;
and
(2) by adding at the end the following new
paragraph:
‘‘(2) The authority of the Department of Defense to
provide humanitarian assistance under this section in-
cludes the authority to transport supplies or provide as-
sistance intended for use to respond to, or mitigate the
effects of, an event or condition, such as an oil spill, that
threatens serious harm to the environment.’’.
SEC. 315. REQUIREMENTS FOR RESTORATION ADVISORY
BOARDS AND EXEMPTION FROM FEDERAL
ADVISORY COMMITTEE ACT.
(a) MEMBERSHIP
AND MEETING REQUIREMENTS
FOR RESTORATION ADVISORY BOARDS.—The Secretary of
Defense shall amend the regulations required by section
2705(d)(2) of title 10, United States Code, relating to the
establishment, characteristics, composition, and funding of
restoration advisory boards to ensure that each restoration
advisory board complies with the following requirements:
(1) Each restoration advisory board shall be
fairly balanced in its membership in terms of the
points of view represented and the functions to be
performed.
(2) Unless a closed or partially closed meeting
is determined to be proper in accordance with one or
more of the exceptions listed in the section 552b(c)
of title 5, United States Code, each meeting of a res-
toration advisory board shall be—
(A) held at a reasonable time and in a
manner or place reasonably accessible to the
public, including individuals with disabilities;
and
(B) open to the public.
(3) Timely notice of each meeting of a restora-
tion advisory board shall be published in a local
newspaper of general circulation.
(4) Interested persons may appear before or file
statements with a restoration advisory board, subject
to such reasonable restrictions as the Secretary may
prescribe.
(5) Subject to section 552 of title 5, United
States Code, the records, reports, minutes, appen-
dixes, working papers, drafts, studies, agenda, or
other documents that were made available to, pre-
pared for, or prepared by each restoration advisory
board shall be available for public inspection and
copying at a single, publicly accessible location, such
as a public library or an appropriate office of the
military installation for which the restoration advi-
sory board is established, at least until the restora-
tion advisory board is terminated.
(6) Detailed minutes of each meeting of each
restoration advisory board shall be kept and shall
contain a record of the persons present, a complete
and accurate description of matters discussed and
conclusions reached, and copies of all reports re-
ceived, issued, or approved by the restoration advi-
sory board. The accuracy of the minutes of a res-
toration advisory board shall be certified by the
chairperson of the board.
(b) FACA EXEMPTION.—Section 2705(d)(2) of title
10, United States Code, is amended by adding at the end
the following new subparagraph:
‘‘(C) The Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to a restoration advisory board es-
tablished under this subsection.’’.
SEC. 316. REPORT REGARDING IMPACT OF CIVILIAN COM-
MUNITY 
ENCROACHMENT 
AND 
CERTAIN
LEGAL REQUIREMENTS ON MILITARY IN-
STALLATIONS AND RANGES.
(a) STUDY REQUIRED.—The Secretary of Defense
shall conduct a study on the impact, if any, of the fol-
lowing types of activities at military installations and oper-
ational ranges:
(1) Civilian community encroachment on those
military installations and ranges whose operational
training activities, research, development, test, and
evaluation activities, or other operational, test and
evaluation, maintenance, storage, disposal, or other
support functions require, or in the future reason-
ably may require, safety or operational buffer areas.
The requirement for such a buffer area may be due
to a variety of factors, including air operations, ord-
nance operations and storage, or other activities that
generate or might generate noise, electro-magnetic
interference, ordnance arcs, or environmental im-
pacts that require or may require safety or oper-
ational buffer areas.
(2) Compliance by the Department of Defense
with State Implementation Plans for Air Quality
under section 110 of the Clean Air Act (42 U.S.C.
7410).
(3) Compliance by the Department of Defense
with the Solid Waste Disposal Act (42 U.S.C. 6901
et seq.) and the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of 1980 (42
U.S.C. 9601 et seq.).
(b) MATTERS TO BE INCLUDED WITH RESPECT TO
CIVILIAN ENCROACHMENTS.—With respect to paragraph
(1) of subsection (a), the study shall include the following:
(1) A list of all military installations described
in subsection (a)(1) at which civilian community en-
croachment is occurring.
(2) A description and analysis of the types and
degree of such civilian community encroachment at
each military installation included on the list.
(3) An analysis, including views and estimates
of the Secretary of Defense, of the current and po-
tential future impact of such civilian community en-
croachment on operational training activities, re-
search, development, test, and evaluation activities,
and other significant operational, test and evalua-
tion, maintenance, storage, disposal, or other sup-
port functions performed by military installations in-
cluded on the list. The analysis shall include the fol-
lowing:
(A) A review of training and test ranges at
military installations, including laboratories and
technical centers of the military departments,
included on the list.
(B) A description and explanation of the
trends of such encroachment, as well as consid-
eration of potential future readiness problems
resulting from unabated encroachment.
(4) An estimate of the costs associated with
current and anticipated partnerships between the
Department of Defense and non-Federal entities to
create buffer zones to preclude further development
around military installations included on the list,
and the costs associated with the conveyance of sur-
plus property around such military installations for
purposes of creating buffer zones.
(5) Options and recommendations for possible
legislative or budgetary changes necessary to miti-
gate current and anticipated future civilian commu-
nity encroachment problems.
(c) MATTERS TO BE INCLUDED WITH RESPECT TO
SPECIFIED LAWS.—With respect to paragraphs (2) and
(3) of subsection (a), the study shall include the following:
(1) A list of all military installations and other
locations at which the Armed Forces are encoun-
tering problems related to compliance with the laws
specified in such paragraphs.
(2) A description and analysis of the types and
degree of compliance problems encountered.
(3) An analysis, including views and estimates
of the Secretary of Defense, of the current and po-
tential future impact of such compliance problems
on the following functions performed at military in-
stallations:
(A) Operational training activities.
(B) Research, development, test, and eval-
uation activities.
(C) Other significant operational, test and
evaluation, maintenance, storage, disposal, or
other support functions.
(4) A description and explanation of the trends
of such compliance problems, as well as consider-
ation of potential future readiness problems result-
ing from such compliance problems.
(d) REPORT.—Not later than January 31, 2004, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on
Armed Services of the House of Representatives a report
containing the results of the study conducted under sub-
section (a), including the specific matters required to be
addressed by paragraphs (1) through (5) of subsection (b)
and paragraphs (1) through (4) of subsection (c).
SEC. 317. MILITARY READINESS AND CONSERVATION OF
PROTECTED SPECIES.
(a) LIMITATION
ON DESIGNATION
OF CRITICAL
HABITAT.—Section 4(a)(3) of the Endangered Species
Act of 1973 (16 U.S.C. 1533(a)(3)) is amended—
(1) by redesignating subparagraphs (A) and
(B) as clauses (i) and (ii), respectively;
(2) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(3) by adding at the end the following:
‘‘(B)(i) The Secretary shall not designate as critical
habitat any lands or other geographical areas owned or
controlled by the Department of Defense, or designated
for its use, that are subject to an integrated natural re-
sources management plan prepared under section 101 of
the Sikes Act (16 U.S.C. 670a), if the Secretary deter-
mines that such plan addresses special management con-
siderations or protection (as those terms are used in sec-
tion 3(5)(A)(i)).
‘‘(ii) Nothing in this paragraph affects the require-
ment to consult under section 7(a)(2) with respect to an
agency action (as that term is defined in that section).
‘‘(iii) Nothing in this paragraph affects the obligation
of the Department of Defense to comply with section 9,
including the prohibition preventing extinction and taking
of endangered species and threatened species.’’.
(b) CONSIDERATION OF EFFECTS OF DESIGNATION
OF CRITICAL HABITAT.—Section 4(b)(2) of the Endan-
gered Species Act of 1973 (16 U.S.C. 1533(b)(2)) is
amended by inserting ‘‘the impact on national security,’’
after ‘‘the economic impact,’’.
SEC. 318. MILITARY READINESS AND MARINE MAMMAL
PROTECTION.
(a) DEFINITION
OF HARASSMENT
FOR MILITARY
READINESS ACTIVITIES.—Section 3(18) of the Marine
Mammal Protection Act of 1972 (16 U.S.C. 1362(18)) is
amended by striking subparagraphs (B) and (C) and in-
serting the following new subparagraphs:
‘‘(B) In the case of a military readiness activity
(as defined in section 315(f) of Public Law 107–
314; 16 U.S.C. 703 note), the term ‘harassment’
means—
‘‘(i) any act that injures or has the signifi-
cant potential to injure a marine mammal or
marine mammal stock in the wild; or
‘‘(ii) any act that disturbs or is likely to
disturb a marine mammal or marine mammal
stock in the wild by causing disruption of nat-
ural behavioral patterns, including, but not lim-
ited to, migration, surfacing, nursing, breeding,
feeding, or sheltering, to a point where such be-
havioral patterns are abandoned or significantly
altered.
‘‘(C) The term ‘Level A harassment’ means
harassment described in subparagraph (A)(i) or, in
the case of a military readiness activity, harassment
described in subparagraph (B)(i).
‘‘(D) The term ‘Level B harassment’ means
harassment described in subparagraph (A)(ii) or, in
the case of a military readiness activity, harassment
described in subparagraph (B)(ii).’’.
(b) EXEMPTION OF ACTIONS NECESSARY FOR NA-
TIONAL DEFENSE.—Section 101 of the Marine Mammal
Protection Act of 1972 (16 U.S.C. 1371) is amended by
inserting after subsection (e) the following:
‘‘(f) EXEMPTION OF ACTIONS NECESSARY FOR NA-
TIONAL DEFENSE.—(1) The Secretary of Defense, after
conferring with the Secretary of Commerce, the Secretary
of the Interior, or both, as appropriate, may exempt any
action or category of actions undertaken by the Depart-
ment of Defense or its components from compliance with
any requirement of this Act, if the Secretary determines
that it is necessary for national defense.
‘‘(2) An exemption granted under this subsection—
‘‘(A) subject to subparagraph (B), shall be ef-
fective for a period specified by the Secretary of De-
fense; and
‘‘(B) shall not be effective for more than 2
years.
‘‘(3)(A) The Secretary of Defense may issue addi-
tional exemptions under this subsection for the same ac-
tion or category of actions, after—
‘‘(i) conferring with the Secretary of Commerce,
the Secretary of the Interior, or both as appropriate;
and
‘‘(ii) making a new determination that the addi-
tional exemption is necessary for national defense.
‘‘(B) Each additional exemption under this para-
graph shall be effective for a period specified by the Sec-
retary of Defense, of not more than 2 years.’’.
(c) INCIDENTAL TAKINGS OF MARINE MAMMALS IN
MILITARY READINESS ACTIVITIES.—Section 101(a)(5) of
the Marine Mammal Protection Act of 1972 (16 U.S.C.
1371(a)(5)) is amended—
(1) in subparagraph (A), by adding at the end
the following:
‘‘Notwithstanding the preceding sentence, the Sec-
retary is not required to publish notice under this
subparagraph with respect to incidental takings
while engaged in a military readiness activity (as de-
fined in section 315(f) of Public Law 107–314; 16
U.S.C. 703 note) authorized by the Secretary of De-
fense, except in the Federal Register.’’;
(2) in subparagraph (D), by adding at the end
the following new clause:
‘‘(vi) Notwithstanding clause (iii), the Secretary
is not required to publish notice under this subpara-
graph with respect to an authorization under clause
(i) of incidental takings while engaged in a military
readiness activity (as defined in section 315(f) of
Public Law 107–314; 16 U.S.C. 703 note) author-
ized by the Secretary of Defense, except in the Fed-
eral Register.’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(F) In determining whether a military readi-
ness activity (as defined in section 315(f) of Public
Law 107–314; 16 U.S.C. 703 note) authorized by
the Secretary of Defense is in compliance with the
requirements of subparagraphs (A), (B), and (D),
the following references shall not apply:
‘‘(i) In subparagraph (A), ‘within a speci-
fied geographical region’ and ‘within that region
of small numbers’.
‘‘(ii) In subparagraph (B), ‘within a speci-
fied geographical region’ and ‘within one or
more regions’.
‘‘(iii) In subparagraph (D), ‘within a spe-
cific geographic region’, ‘of small numbers’, and
‘within that region’.’’.
SEC. 319. LIMITATION ON DEPARTMENT OF DEFENSE RE-
SPONSIBILITY FOR CIVILIAN WATER CON-
SUMPTION 
IMPACTS 
RELATED 
TO 
FORT
HUACHUCA, ARIZONA.
(a) RULE OF CONSTRUCTION.—For purposes of sec-
tion 7 of the Endangered Species Act of 1973 (16 U.S.C.
1536), in the case of Fort Huachuca, Arizona, the Sec-
retary of the Army may be held responsible for water con-
sumption that occurs on that military installation (or out-
side of that installation but under the direct authority and
control of the Secretary). The Secretary of the Army is
not responsible for water consumption that occurs outside
of Fort Huachuca and is beyond the direct authority and
control of the Secretary even though the water is derived
from a watershed basin shared by that military installa-
tion and the water consumption outside of that installation
may impact a critical habitat or endangered species out-
side the installation.
(b) VOLUNTARY EFFORTS.—Nothing in this section
shall prohibit the Secretary of the Army from voluntarily
undertaking efforts to mitigate water consumption related
to Fort Huachuca.
(c) DEFINITION OF WATER CONSUMPTION.—In this
section, the term ‘‘water consumption’’ means the con-
sumption of water, from any source, for human purposes
of any kind, including household or industrial use, irriga-
tion, or landscaping.
(d) EFFECTIVE DATE.—This section applies only to
Department of Defense actions regarding which consulta-
tion or reconsultation under section 7 of the Endangered
Species Act of 1973 (16 U.S.C. 1536) is first required
with regard to Fort Huachuca on or after the date of the
enactment of this Act.
SEC. 320. CONSTRUCTION OF WETLAND CROSSINGS, CAMP
SHELBY COMBINED ARMS MANEUVER AREA,
CAMP SHELBY, MISSISSIPPI.
Amounts authorized to be appropriated by section
301(1) for operation and maintenance for the Army shall
be available to the Secretary of the Army to construct wet-
lands crossings at the Camp Shelby Combined Arms Ma-
neuver Area at Camp Shelby, Mississippi, for the purpose
of ensuring that combat arms training performed at that
area is conducted in conformance with the spirit and in-
tent of applicable environmental laws.
Subtitle C—Workplace and Depot
Issues
SEC. 321. EXCLUSION OF CERTAIN EXPENDITURES FROM
PERCENTAGE LIMITATION ON CONTRACTING
FOR PERFORMANCE OF DEPOT-LEVEL MAIN-
TENANCE AND REPAIR WORKLOADS.
Section 2474(f)(1) of title 10, United States Code,
is amended by striking ‘‘entered into during fiscal years
2003 through 2006’’.
SEC. 322. HIGH-PERFORMING ORGANIZATION BUSINESS
PROCESS REENGINEERING PILOT PROGRAM.
(a) PILOT PROGRAM.—(1) The Secretary of Defense
shall establish a pilot program under which the Secretary
of each military department shall administer, or continue
the implementation of, high-performing organizations at
military installations through the conduct of a Business
Process Reengineering initiative.
(2) The implementation and management of a Busi-
ness Process Reengineering initiative under the pilot pro-
gram shall be the responsibility of the commander of the
military installation at which the Business Process Re-
engineering initiative is carried out.
(b) ELIGIBLE ORGANIZATIONS.—Two types of orga-
nizations are eligible for selection to participate in the
pilot program:
(1) Organizations that underwent a Business
Process Reengineering initiative within the preceding
five years, achieved major performance enhance-
ments under the initiative, and will be able to sus-
tain previous or achieve new performance goals
through the continuation of its existing or completed
Business Process Reengineering plan.
(2) Organizations that have not undergone or
have not successfully completed a Business Process
Reengineering initiative, but which propose to
achieve, and reasonably could reach, enhanced per-
formance goals through implementation of a Busi-
ness Process Reengineering initiative.
(c) ADDITIONAL ELIGIBILITY REQUIREMENTS.—(1)
To be eligible for selection to participate in the pilot pro-
gram under subsection (b)(1), an organization described
in such subsection must be able to demonstrate the com-
pletion of a total organizational assessment that resulted
in enhanced performance measures at least comparable to
those that might be achieved through competitive
sourcing.
(2) To be eligible for selection to participate in the
pilot program under subsection (b)(2), an organization de-
scribed in such subsection must be able to identify—
(A) functions, processes, and measures to be
studied under the Business Process Reengineering
initiative;
(B) adequate resources for assignment to carry
out the Business Process Reengineering initiative;
and
(C) labor/management agreements in place to
ensure effective implementation of the Business
Process Reengineering initiative.
(d) PILOT PROGRAM LIMITATIONS.—The pilot pro-
gram shall be subject to the following limitations:
(1) Total participants is limited to 15 military
installations, with some participants to be drawn
from organizations described in subsection (b)(1)
and some participants drawn from organizations de-
scribed in subsection (b)(2).
(2) During the implementation period for the
Business Process Reengineering initiative, but not to
exceed one year, a participating organization shall
not be subject to any Office of Management and
Budget Circular A–76 competition or other public-
private competition involving any function covered
by the Business Process Reengineering initiative.
(e) EFFECT OF SUCCESSFUL IMPLEMENTATION.—
An organization designated as a high-performing organi-
zation as a result of successful implementation of a Busi-
ness Process Reengineering initiative under the pilot pro-
gram shall be exempt, during the five-year period following
such designation, from any Office of Management and
Budget Circular A–76 competition or other public-private
competition involving any function that was studied under
the Business Process Reengineering initiative.
(f) REVIEWS AND REPORTS.—The Secretaries of the
military departments shall conduct annual performance
reviews of the participating organizations or functions
within their respective departments. Reviews and reports
shall evaluate organizational performance measures or
functional performance measures and determine whether
organizations are performing satisfactorily for purposes of
continuing participation in the pilot program.
(g) PERFORMANCE MEASURES.—Performance meas-
ures should include the following, which shall be measured
against organizational baselines determined before partici-
pation in the pilot program:
(1) Costs, savings, and overall financial per-
formance of the organization.
(2) Organic knowledge, skills or expertise.
(3) Efficiency and effectiveness of key functions
or processes.
(4) Efficiency and effectiveness of the overall
organization.
(5) General customer satisfaction.
(h) DEFINITIONS.—In this section
(1) The term ‘‘high-performing organization’’
means an organization whose performance exceeds
that of comparable providers, whether public or pri-
vate.
(2) 
The 
term 
‘‘Business 
Process 
Re-
engineering’’ refers to an organization’s complete
and thorough analysis and reengineering of mission
and support functions and processes to achieve im-
provements in performance, including a fundamental
reshaping of the way work is done to better support
an organization’s mission and reduce costs.
SEC. 323. DELAYED IMPLEMENTATION OF REVISED OFFICE
OF MANAGEMENT AND BUDGET CIRCULAR A-
76 BY DEPARTMENT OF DEFENSE PENDING
REPORT.
(a) LIMITATION PENDING REPORT.—No studies or
competitions may be conducted under the policies and pro-
cedures contained in any revisions to Office of Manage-
ment and Budget Circular A–76, as the circular exists as
of May 1, 2003, for possible contracting out of work being
performed, as of such date, by employees of the Depart-
ment of Defense, until the end of the 45-day period begin-
ning on the date on which the Secretary of Defense sub-
mits to Congress a report on the impacts and effects of
the revisions.
(b) CONTENT OF REPORT.—The report required by
subsection (a) shall contain, at a minimum, specific infor-
mation regarding the following:
(1) The extent to which the revisions will en-
sure that employees of the Department of Defense
have the opportunity to compete to retain their jobs.
(2) The extent to which the revisions will pro-
vide appeal and protest rights to employees of the
Department of Defense that are equivalent to those
available to contractors.
(3) Identify safeguards in the revisions to en-
sure that all public-private competitions are fair, ap-
propriate, and comply with requirements of full and
open competition.
(4) The plans and strategies of the Department
to ensure an appropriate phase-in period for the re-
visions, as recommended by the Commercial Activi-
ties Panel of the Government Accounting Office in
its April 2002 report to Congress, including rec-
ommendations for any legislative changes that may
be required to ensure a smooth and efficient phase-
in period.
(5) The plans and strategies of the Department
to collect and analyze data on the costs and quality
of work contracted out or retained in-house as a re-
sult of a sourcing process conducted under the re-
vised Office of Management and Budget circular A–
76.
SEC. 324. NAVAL AVIATION DEPOTS MULTI-TRADES DEM-
ONSTRATION PROJECT.
(a) DEMONSTRATION PROJECT REQUIRED.—In ac-
cordance with section 4703 of title 5, United States Code,
the Secretary of the Navy shall establish a demonstration
project under which three Naval Aviation Depots are given
the flexibility to promote by one grade level workers who
are certified at the journey level as able to perform mul-
tiple trades.
(b) SELECTION REQUIREMENTS.—As a condition on
eligibility for selection to participate in the demonstration
project, a Naval Aviation Depot shall submit to the Sec-
retary a business case analysis and concept plan—
(1) that, on the basis of the results of analysis
of work processes, demonstrate that process im-
provements would result from the trade combina-
tions proposed to be implemented under the dem-
onstration project; and
(2) that describes the resulting improvements in
cost, quality, or schedule.
(c) PARTICIPATING WORKERS.—(1) Actual worker
participation in the demonstration project shall be deter-
mined through competitive selection. Not more than 15
percent of the wage grade journeyman at a demonstration
project location may be selected to participate.
(2) Job descriptions and competency-based training
plans must be developed for each worker while in training
under the demonstration project and once certified as a
multi-trade worker. A certified multi-trade worker who re-
ceives a pay grade promotion under the demonstration
project must use each new skill during at least 25 percent
of the worker’s work week.
(d) FUNDING SOURCE.—Amounts appropriated for
operation and maintenance of the Naval Aviation Depots
selected to participate in the demonstration project shall
be used as the source of funds to carry out the demonstra-
tion project, including the source of funds for pay in-
creases made under the project.
(e) DURATION.—The demonstration project shall be
conducted during fiscal years 2004 through 2006.
(f) REPORT.—Not later than January 15, 2007, the
Secretary shall submit a report to Congress describing the
results of the demonstration project.
(g) GAO EVALUATION.—The Secretary shall trans-
mit a copy the report to the Comptroller General. Within
90 days after receiving a report, the Comptroller General
shall submit to Congress an evaluation of the report.
Subtitle D—Information
Technology
SEC. 
331. 
PERFORMANCE-BASED 
AND 
RESULTS-BASED
MANAGEMENT REQUIREMENTS FOR CHIEF
INFORMATION OFFICERS OF DEPARTMENT
OF DEFENSE.
(a) ACCOUNTABILITY.—Section 2223 of title 10,
United States Code, is amended—
(1) by redesignating subsection (c) as sub-
section (e); and
(2) by inserting after subsection (b) the fol-
lowing new subsection:
‘‘(c) PERFORMANCE-BASED
AND
RESULTS-BASED
MANAGEMENT.—In addition to the responsibilities pro-
vided for in subsections (a) and (b), the Chief Information
Officer of the Department of Defense and the Chief Infor-
mation Officer of a military department shall—
‘‘(1) encourage the use of performance-based
and results-based management in fulfilling the re-
sponsibilities provided for in subsections (a) and (b),
as applicable;
‘‘(2) evaluate the information resources man-
agement practices of the department concerned with
respect to the performance and results of the invest-
ments made by the department in information tech-
nology;
‘‘(3) establish effective and efficient capital
planning processes for selecting, managing, and eval-
uating the results of all of the department’s major
investments in information systems;
‘‘(4) ensure that any analysis of the missions of
the department is adequate and make recommenda-
tions, as appropriate, on the department’s mission-
related processes, administrative processes, and any
significant investments in information technology to
be used in support of those missions; and
‘‘(5) ensure that information security policies,
procedures, and practices are adequate.’’.
(b) DEFENSE AGENCY RESPONSIBILITIES.—Section
2223 of title 10, United States Code, is further amended
by inserting after subsection (c), as added by subsection
(a), the following new subsection:
‘‘(d) DEFENSE AGENCIES AND FIELD ACTIVITIES.—
The Secretary of Defense shall require the Director of
each Defense Agency and Department of Defense Field
Activity to ensure that the responsibilities set forth in sub-
sections (b) and (c) for Chief Information Officers of mili-
tary departments are carried out within the Agency or
Field Activity by any officer or employee acting as a chief
information officer or carrying out duties similar to a chief
information officer.’’.
Subtitle E—Other Matters
SEC. 341. CATALOGING AND STANDARDIZATION FOR DE-
FENSE SUPPLY MANAGEMENT.
(a) STANDARDIZATION METHODS.—Section 2451 of
title 10, United States Code, is amended to read as fol-
lows:
‘‘§ 2451. Defense supply management
‘‘(a) SINGLE CATALOG SYSTEM.—The Secretary of
Defense shall adopt, implement and maintain a single
catalog system for standardizing supplies for the Depart-
ment of Defense. The single catalog system shall be used
for each supply the Department uses, buys, stocks, or dis-
tributes.
‘‘(b) STANDARDIZATION REQUIREMENTS.—To the
highest degree practicable, the Secretary of Defense
shall—
‘‘(1) adopt and use single commercial standards
or voluntary standards, in consultation with industry
advisory groups, in order to eliminate overlapping
and duplicate specifications for supplies for the De-
partment of Defense and to reduce the number of
sizes and kind of supplies that are generally similar;
‘‘(2) standardize the methods of packing, pack-
aging, and preserving supplies; and
‘‘(3) make efficient use of the services and fa-
cilities for inspecting, testing, and accepting sup-
plies.
‘‘(c) CONSULTATION AND COOPERATION.—The Sec-
retary of Defense shall maintain liaison with industry ad-
visory groups to coordinate the development of the supply
catalog and the standardization program with the best
practices of industry and to obtain the fullest practicable
cooperation and participation of industry in developing the
supply catalog and the standardization program.’’.
(b) EQUIPMENT STANDARDIZATION
WITH NATO
MEMBERS.—Section 2457 of such title is amended by
striking subsection (d).
(c) CONFORMING REPEALS.—(1) Chapter 145 of
such title is amended by striking sections 2452, 2453, and
2454.
(2) The table of sections at the beginning of such
chapter is amended by striking the items related to sec-
tions 2452, 2453, and 2454.
SEC. 342. SPACE-AVAILABLE TRANSPORTATION FOR DE-
PENDENTS OF MEMBERS ASSIGNED TO OVER-
SEAS DUTY LOCATIONS FOR CONTINUOUS
PERIOD IN EXCESS OF ONE YEAR.
(a) IN GENERAL.—Chapter 157 of title 10, United
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 2648. Dependents of members assigned to overseas
duty locations for continuous period in
excess of one year: space-available trans-
portation
‘‘(a) AUTHORITY.—The Secretary of Defense shall
authorize travel on Government aircraft on a space-avail-
able basis for dependents of members on active duty as-
signed to duty at an overseas location as described in sub-
section (b) to the same extent as such travel is authorized
for a dependent of a member assigned to that duty loca-
tion in a permanent change of station status.
‘‘(b) DUTY STATUS COVERED.—Duty at an overseas
location described in this subsection is duty for a contin-
uous period in excess of one year that is in a temporary
duty status or that is in a permanent duty status without
change of station.
‘‘(c) TYPES OF TRANSPORTATION AUTHORIZED.—If
authorized for other members at that duty location, travel
provided under this section may include (1) travel between
the overseas duty location and the United States and re-
turn, and (2) travel between the overseas duty location
and another overseas location and return.
‘‘(d) ALASKA AND HAWAII.—For purposes of this
section, duty in Alaska or Hawaii shall be considered to
be duty at an overseas location.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2648. Dependents of members assigned to overseas duty locations for contin-
uous period in excess of one year: space-available transpor-
tation.’’.
SEC. 343. PRESERVATION OF AIR FORCE RESERVE WEATH-
ER RECONNAISSANCE MISSION.
The Secretary of Defense shall not disestablish, dis-
continue, or transfer the weather reconnaissance mission
of the Air Force Reserve unless the Secretary determines
that another organization or entity can demonstrate that
it has the capability to perform the same mission with the
same capability as the Air Force Reserve.
SEC. 344. EXPANSION OF DEPARTMENT OF DEFENSE EX-
CESS PERSONAL PROPERTY DISPOSAL PRO-
GRAM TO INCLUDE HEALTH AGENCIES IN AD-
DITION TO LAW ENFORCEMENT AND FIRE-
FIGHTING AGENCIES.
(a) INCLUSION
OF HEALTH AGENCIES.—Section
2576b of title 10, United States Code, is amended—
(1) by striking subsection (a) and inserting the
following new subsection (a):
‘‘(a) TRANSFER
AUTHORIZED.—Subject to sub-
section (b), the Secretary of Defense may transfer to a
firefighting agency or health agency in a State any per-
sonal property of the Department of Defense that the Sec-
retary determines is—
‘‘(1) excess to the needs of the Department of
Defense; and
‘‘(2) suitable for use in providing fire and emer-
gency medical services or responding to health or en-
vironmental emergencies, including personal protec-
tive equipment and equipment for communication
and monitoring.’’; and
(2) in subsection (b)(2) and (c), by striking
‘‘firefighting’’ both places it appears.
(b) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 2576b. Excess personal property: sale or donation
to assist firefighting agencies and health
agencies
(2) The table of sections at the beginning of chapter
153 of such title is amended by striking the item relating
to section 2576b and inserting the following new item:
‘‘2576b. Excess personal property: sale or donation to assist firefighting agen-
cies and health agencies.’’.
SEC. 345. DEPARTMENT OF DEFENSE PUBLIC HEALTH AS-
SESSMENT OF EXPOSURE TO PERCHLORATE.
(a) EPIDEMIOLOGICAL STUDY
OF EXPOSURE
TO
PERCHLORATE.—
(1) IN
GENERAL.—The Secretary of Defense
shall provide for an independent epidemiological
study of exposure to perchlorate in drinking water.
(2) PERFORMANCE OF STUDY.—The Secretary
shall provide for the performance of the study under
this subsection through the Centers for Disease Con-
trol, the National Institutes of Health, or another
Federal entity with experience in environmental toxi-
cology selected by the Secretary for purposes of the
study.
(3) MATTERS TO BE INCLUDED IN STUDY.—In
providing for the study under this subsection, the
Secretary shall require the Federal entity conducting
the study—
(A) to assess the incidence of thyroid dis-
ease and measurable effects of thyroid function
in relation to exposure to perchlorate;
(B) to ensure that the study is of sufficient
scope and scale to permit the making of mean-
ingful conclusions of the measurable public
health threat associated with exposure to per-
chlorate, especially the threat to sensitive sub-
populations; and
(C) to study thyroid function, including
measurements of urinary iodine and thyroid
hormone levels, in a sufficient number of preg-
nant women, neonates, and infants exposed to
perchlorate in drinking water and match meas-
urements of perchlorate levels in the drinking
water of each study participant in order to per-
mit the development of meaningful conclusions
on the public health threat to individuals ex-
posed to perchlorate.
(4) REPORT ON STUDY.—The Secretary shall
require the Federal entity conducting the study
under this subsection to submit to the Secretary a
report on the study not later than June 1, 2005.
(b) REVIEW OF EFFECTS OF PERCHLORATE ON EN-
DOCRINE SYSTEM.—
(1) IN GENERAL.—The Secretary shall provide
for an independent review of the effects of per-
chlorate on the human endocrine system.
(2) PERFORMANCE OF REVIEW.—The Secretary
shall provide for the performance of the review
under this subsection through the Centers for Dis-
ease Control, the National Institutes of Health, or
another appropriate Federal research entity with ex-
perience in human endocrinology selected by the Sec-
retary for purposes of the review. The Secretary
shall ensure that the panel conducting the review is
composed of individuals with expertise in human en-
docrinology.
(3) MATTERS TO BE INCLUDED IN REVIEW.—
In providing for the review under this subsection,
the Secretary shall require the Federal entity con-
ducting the review to assess—
(A) available data on human exposure to
perchlorate, including clinical data and data on
exposure of sensitive subpopulations, and the
levels at which health effects were observed; and
(B) available data on other substances that
have endocrine effects similar to perchlorate to
which the public is frequently exposed.
(4) REPORT ON REVIEW.—The Secretary shall
require the Federal entity conducting the review
under this subsection to submit to the Secretary a
report on the review not later than June 1, 2005.
SEC. 346. PERMANENT AUTHORITY FOR PURCHASE OF CER-
TAIN MUNICIPAL SERVICES AT INSTALLA-
TIONS IN MONTEREY COUNTY, CALIFORNIA.
(a) AUTHORITY.—Subject to subsection (b), public
works, utility, and other municipal services needed for the
operation of any Department of Defense asset in Monterey
County, California, may be purchased from government
agencies located in that county.
(b) PROHIBITION ON PURCHASE OF CERTAIN SERV-
ICES.—Section 2465 of title 10, United States Code, relat-
ing to the purchase of firefighting or security-guard serv-
ices at a military installation, applies with respect to the
authority provided by subsection (a).
(c) CONFORMING AMENDMENT.—Section 816 of the
National Defense Authorization Act for Fiscal Year 1995
(Public Law 103–337; 108 Stat. 2820) is repealed.
TITLE IV—MILITARY
PERSONNEL AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 2004, as follows:
(1) The Army, 482,375.
(2) The Navy, 375,700.
(3) The Marine Corps, 175,000.
(4) The Air Force, 361,268.
SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END
STRENGTH MINIMUM LEVELS.
Effective October 1, 2003, section 691(b) of title 10,
United States Code, is amended as follows:
(1) ARMY.—Paragraph (1) is amended by strik-
ing ‘‘480,000’’ and inserting ‘‘482,375’’.
(2) AIR FORCE.—Paragraph (4) is amended by
striking ‘‘359,000’’ and inserting ‘‘361,268’’.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve
components as of September 30, 2004, as follows:
(1) The Army National Guard of the United
States, 350,000.
(2) The Army Reserve, 205,000.
(3) The Naval Reserve, 85,900.
(4) The Marine Corps Reserve, 39,600.
(5) The Air National Guard of the United
States, 107,000.
(6) The Air Force Reserve, 75,800.
(7) The Coast Guard Reserve, 10,000.
(b) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve com-
ponent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of
such component which are on active duty (other
than for training) at the end of the fiscal year; and
(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected
Reserve of such reserve component shall be proportion-
ately increased by the total authorized strengths of such
units and by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
Within the end strengths prescribed in section
411(a), the reserve components of the Armed Forces are
authorized, as of September 30, 2004, the following num-
ber of Reserves to be serving on full-time active duty or
full-time duty, in the case of members of the National
Guard, for the purpose of organizing, administering, re-
cruiting, instructing, or training the reserve components:
(1) The Army National Guard of the United
States, 25,386.
(2) The Army Reserve, 14,374.
(3) The Naval Reserve, 14,384.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United
States, 12,140.
(6) The Air Force Reserve, 1,660.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS
(DUAL STATUS).
The minimum number of military technicians (dual
status) as of the last day of fiscal year 2004 for the re-
serve components of the Army and the Air Force (notwith-
standing section 129 of title 10, United States Code) shall
be the following:
(1) For the Army National Guard of the
United States, 24,589.
(2) For the Army Reserve, 7,844.
(3) For the Air National Guard of the
United States, 22,806.
(4) For the Air Force Reserve, 9,991.
SEC. 414. FISCAL YEAR 2004 LIMITATION ON NON-DUAL STA-
TUS TECHNICIANS.
The number of non-dual status technicians of a re-
serve component of the Army or the Air Force as of Sep-
tember 30, 2004, may not exceed the following:
(1) For the Army Reserve, 910.
(2) For the Army National Guard of the United
States, 1,600.
(3) For the Air Force Reserve, 90.
(4) For the Air National Guard of the United
States, 350.
SEC. 415. PERMANENT LIMITATIONS ON NUMBER OF NON-
DUAL STATUS TECHNICIANS.
Section 10217(c) of title 10, United States Code, is
amended by striking ‘‘and Air Force Reserve may not ex-
ceed 175’’ and inserting ‘‘may not exceed 595 and by the
Air Force Reserve may not exceed 90’’.
Subtitle C—Authorizations of
Appropriations
SEC. 421. MILITARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal
year 2004 a total of $98,634,511,000. The authorization
in the preceding sentence supersedes any other authoriza-
tion of appropriations (definite or indefinite) for such pur-
pose for fiscal year 2004.
SEC. 422. ARMED FORCES RETIREMENT HOME.
There is hereby authorized to be appropriated for fis-
cal year 2004 from the Armed Forces Retirement Home
Trust Fund the sum of $65,279,000 for the operation of
the Armed Forces Retirement Home.
TITLE V—MILITARY PERSONNEL
POLICY
Subtitle A—General and Flag
Officer Matters
SEC. 501. STANDARDIZATION OF QUALIFICATIONS FOR AP-
POINTMENT AS SERVICE CHIEF.
(a) 
CHIEF
OF
NAVAL
OPERATIONS.—Section
5033(a)(1) of title 10, United States Code, is amended
by striking ‘‘from officers on the active-duty list in the
line of the Navy who are eligible to command at sea and
who hold the grade of rear admiral or above’’ and insert-
ing ‘‘flag officers of the Navy’’.
(b) COMMANDANT OF THE MARINE CORPS.—Section
5043(a)(1) of title 10, United States Code, is amended
by striking ‘‘from officers on the active-duty list of the
Marine Corps not below the grade of colonel’’ and insert-
ing ‘‘general officers of the Marine Corps’’.
Subtitle B—Other Officer
Personnel Policy Matters
SEC. 511. REPEAL OF PROHIBITION ON TRANSFER BE-
TWEEN LINE OF THE NAVY AND NAVY STAFF
CORPS APPLICABLE TO REGULAR NAVY OFFI-
CERS IN GRADES ABOVE LIEUTENANT COM-
MANDER.
(a) REPEAL.—Section 5582 of title 10, United States
Code, is repealed.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 539 of such title is amended
by striking the item relating to section 5582.
SEC. 512. RETENTION OF HEALTH PROFESSIONS OFFICERS
TO FULFILL ACTIVE-DUTY SERVICE COMMIT-
MENTS FOLLOWING PROMOTION NONSELEC-
TION.
(a) IN GENERAL.—Section 632 of title 10, United
States Code, is amended—
100
(1) in subsection (a)(1), by inserting ‘‘except as
provided in paragraph (3) and in subsection (c),’’
before ‘‘be discharged’’; and
(2) by adding at the end the following new sub-
section:
‘‘(c)(1) If a health professions officer described in
paragraph (2) is subject to discharge under subsection
(a)(1) and, as of the date on which the officer is to be
discharged under that paragraph, the officer has not com-
pleted a period of active duty service obligation that the
officer incurred under section 2005, 2114, 2123, or 2603
of this title, the officer shall be retained on active duty
until completion of such active duty service obligation, and
then be discharged under that subsection, unless sooner
retired or discharged under another provision of law.
‘‘(2) The Secretary concerned may waive the applica-
bility of paragraph (1) to any officer if the Secretary de-
termines that completion of the active duty service obliga-
tion of that officer is not in the best interest of the service.
‘‘(3) This subsection applies to a medical officer or
dental officer or an officer appointed in a medical skill
other than as a medical officer or dental officer (as defined
in regulations prescribed by the Secretary of Defense).’’.
101
(b) TECHNICAL AMENDMENTS.—Sections 630(2),
631(a)(3), and 632(a)(3) of such title are amended by
striking ‘‘clause’’ and inserting ‘‘paragraph’’.
(c) EFFECTIVE DATE.—The amendments made by
subsection (a) shall not apply in the case of an officer who
as of the date of the enactment of this Act is required
to be discharged under section 632(a)(1) of title 10,
United States Code, by reason of having failed of selection
for promotion to the next higher regular grade a second
time.
SEC. 513. INCREASED FLEXIBILITY FOR VOLUNTARY RE-
TIREMENT FOR MILITARY OFFICERS.
(a) IN GENERAL.—Section 1370 of title 10, United
States Code, is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘except as provided in
paragraph (2)’’ and inserting ‘‘subject to
paragraphs (2) and (3)’’; and
(ii) by striking ‘‘, for not less than six
months’’;
(B) by redesignating paragraph (3) as
paragraph (4); and
(C) by striking paragraph (2) and insert-
ing the following:
102
‘‘(2) In order to be eligible for voluntary retirement
under this title in a grade below the grade of lieutenant
colonel or commander, a commissioned officer of the
Army, Navy, Air Force, or Marine Corps covered by para-
graph (1) must have served on active duty in that grade
for not less than six months.
‘‘(3)(A) In order to be eligible for voluntary retire-
ment in a grade above major or lieutenant commander and
below brigadier general or rear admiral (lower half), a
commissioned officer of the Army, Navy, Air Force, or
Marine Corps covered by paragraph (1) must have served
on active duty in that grade for not less than three years,
except that the Secretary of Defense may authorize the
Secretary of the military department concerned to reduce
such period to a period not less than two years.
‘‘(B) In order to be eligible for voluntary retirement
in a grade above colonel or captain, in the case of the
Navy, a commissioned officer of the Army, Navy, Air
Force, or Marine Corps covered by paragraph (1) must
have served on active duty in that grade for not less than
one year.
‘‘(C) An officer in a grade above major general or
rear admiral may be retired in the highest grade in which
the officer served on active duty satisfactorily for not less
than one year, upon approval by the Secretary of the mili-
103
tary department concerned and concurrence by the Sec-
retary of Defense. The function of the Secretary of De-
fense under the preceding sentence may only be delegated
to a civilian official in the Office of the Secretary of De-
fense appointed by the President, by and with the advice
and consent of the Senate.
‘‘(D) The President may waive subparagraph (A),
(B) or (C) in individual cases involving extreme hardship
or exceptional or unusual circumstances. The authority of
the President under the preceding sentence may not be
delegated.’’;
(2) in subsection (b), by inserting ‘‘or whose
service on active duty in that grade was not deter-
mined to be satisfactory by the Secretary of the mili-
tary department concerned’’ after ‘‘specified in sub-
section (a)’’;
(3) by striking subsection (c); and
(4) by redesignating subsection (d) as sub-
section (c) and in that subsection—
(A) in paragraph (3)—
(i) in subparagraph (A)—
(I) 
by 
inserting 
‘‘(i)’’ 
after
‘‘(3)(A)’’;
104
(II) by inserting ‘‘and below brig-
adier general or rear admiral (lower
half)’’ after ‘‘lieutenant commander’’;
(III) by inserting ‘‘, except that
the Secretary of Defense may author-
ize the Secretary of the military de-
partment concerned to reduce such
period to a period not less than two
years’’ after ‘‘three years’’; and
(IV) by adding at the end the fol-
lowing new clauses:
‘‘(ii) In order to be credited with satisfactory service
in a grade above colonel or captain, in the case of the
Navy, a person covered by paragraph (1) must have served
satisfactorily in that grade (as determined by the Sec-
retary of the military department concerned) as a reserve
commissioned officer in active status, or in a retired status
on active duty, for not less than one year.
‘‘(iii) An officer covered by paragraph (1) who is in
a grade above the grade of major general or rear admiral
may be retired in the highest grade in which the officer
served satisfactorily for not less than one year, upon ap-
proval by the Secretary of the military department con-
cerned and concurrence by the Secretary of Defense. The
function of the Secretary of Defense under the preceding
111
SEC. 525. AUTHORITY TO PROVIDE EXPENSES OF ARMY
AND AIR STAFF PERSONNEL AND NATIONAL
GUARD BUREAU PERSONNEL ATTENDING NA-
TIONAL CONVENTIONS OF CERTAIN MILI-
TARY ASSOCIATIONS.
(a) AUTHORITY.—Section 107(a)(2) of title 32,
United States Code, is amended—
(1) by striking ‘‘officers’’ and inserting ‘‘mem-
bers’’;
(2) by striking ‘‘Army General Staff’’ and in-
serting ‘‘Army Staff’’; and
(3) by striking ‘‘National Guard Association of
the United States’’ and inserting ‘‘, Enlisted Asso-
ciation of the National Guard of the United States,
National Guard Association of the United States,’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall not apply with respect to funds appro-
priated for a fiscal year before fiscal year 2004.
Subtitle D—Military Education and
Training
SEC. 531. AUTHORITY FOR THE MARINE CORPS UNIVER-
SITY TO AWARD THE DEGREE OF MASTER OF
OPERATIONAL STUDIES.
(a) AUTHORITY.—Section 7102 of title 10, United
States Code, is amended—
452
panel to review laws and regulations regarding the use of
commercial practices, performance-based contracting, the
performance of acquisition functions across agency lines
of responsibility, and the use of Governmentwide con-
tracts.
(b) MEMBERSHIP.—The panel shall be composed of
at least nine individuals who are recognized experts in ac-
quisition law and Government acquisition policy. In mak-
ing appointments to the panel, the Administrator shall—
(1) consult with the Secretary of Defense, the
Administrator of General Services, the Committees
on Armed Services and Government Reform of the
House of Representatives, and the Committees on
Armed Services and Governmental Affairs of the
Senate, and
(2) ensure that the members of the panel reflect
the diverse experiences in the public and private sec-
tors.
(c) DUTIES.—The panel shall—
(1) review all Federal acquisition laws and reg-
ulations with a view toward ensuring effective and
appropriate use of commercial practices and per-
formance-based contracting; and