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SEC. 842. REPORT TO CONGRESS REQUIRED ON DELAYS IN 
MAJOR PHASES OF ACQUISITION PROCESS 
FOR MAJOR AUTOMATED INFORMATION SYS-
TEM PROGRAMS. 
(a) REPORT REQUIRED FOR CERTAIN DELAYS.—In 
the case of any major automated information system pro-
gram, if there is a delay in meeting any deadline for a 
phase of the acquisition process for the program specified 
in subsection (b), the Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics, shall submit to the congressional 
defense committees a report on the delay. The report shall 
be submitted not later than 30 days after the delay occurs. 
(b) DEADLINES.—The deadlines for a phase of the 
acquisition process referred to in subsection (a) are the 
following: 
(1) With respect to approval of any analysis of 
alternatives, within one year from the date each 
analysis began. 
(2) With respect to achieving Milestone B in ac-
cordance with section 2366a of title 10, United 
States Code, within 18 months after the date of 
Milestone A approval. 
(3) With respect to completion of any capability 
development document, within six months from the 
time of determined need to the time of approval.
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(c) MATTERS COVERED BY REPORT.—The report re-
quired by subsection (a)— 
(1) shall set forth the reason or reasons the De-
partment of Defense was unable to complete the de-
layed process or processes on time; and 
(2) shall include a written certification with a 
supporting explanation stating that— 
(A) the program is necessary for the effi-
cient management of the Department; and 
(B) the most current estimates of the 
costs, schedule, and performance parameters 
with respect to the program and system are 
reasonable; and the management structure for 
the program is adequate to manage and control 
program costs. 
SEC. 843. REQUIREMENT FOR LICENSING OF CERTAIN 
MILITARY DESIGNATIONS AND LIKENESSES 
OF WEAPONS SYSTEMS TO TOY AND HOBBY 
MANUFACTURERS. 
(a) REQUIREMENT TO LICENSE CERTAIN ITEMS.— 
Section 2260 of title 10, United States Code, is amend-
ed— 
(1) by redesignating subsections (c), (d), and 
(e) as subsections (d), (e), and (f), respectively; and
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(2) by adding after subsection (b) the following 
new subsection: 
‘‘(c) REQUIRED LICENSES.—(1) The Secretary con-
cerned shall license trademarks, service marks, certifi-
cation marks, and collective marks relating to military 
designations and likenesses of military weapons systems 
to any qualifying company upon receipt of a request from 
the company. 
‘‘(2) For purposes of paragraph (1), a qualifying 
company is any United States company that is a small 
business concern and that— 
‘‘(A) is a toy or hobby manufacturer, dis-
tributor, or merchant; and 
‘‘(B) is determined by the Secretary concerned 
to be qualified in accordance with such criteria as 
may be prescribed by the Secretary of Defense. 
‘‘(3) The fee for a license under this subsection shall 
be determined under regulations prescribed by the Sec-
retary of Defense. Any such fee shall be nominal and shall 
be an amount not less than an amount needed to recover 
all costs of the Department of Defense in processing the 
request for the license and supplying the license. 
‘‘(4) A license under this subsection shall not be an 
exclusive license.’’.
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(b) EFFECTIVE DATE.—The Secretary of Defense 
shall prescribe regulations to implement the amendment 
made by this section not later than 180 days after the 
date of the enactment of this Act. 
SEC. 844. CHANGE IN GROUNDS FOR WAIVER OF LIMITA-
TION ON SERVICE CONTRACT TO ACQUIRE 
MILITARY FLIGHT SIMULATOR. 
Section 832(b)(1) of the John Warner National De-
fense Authorization Act for Fiscal Year 2007 (Public Law 
109–364; 120 Stat. 2331) is amended by striking ‘‘nec-
essary for national security purposes’’ and inserting ‘‘in 
the national interest’’. 
SEC. 845. EVALUATION OF COST OF COMPLIANCE WITH RE-
QUIREMENT 
TO 
BUY 
CERTAIN 
ARTICLES 
FROM AMERICAN SOURCES. 
(a) EXCLUSION FROM PRICE OR COST COMPARI-
SON.—For all Department of Defense prime contract 
awards and subcontract awards at any tier, in the event 
that a price or cost comparison is made as part of an eval-
uation of offers for goods or services provided by a United 
States firm and by a foreign source benefitting from the 
exception 
provided 
in 
section 
2533a(e)(1)(B) 
or 
2533b(d)(1)(B) of title 10, United States Code, the cost 
of compliance described in subsection (c) shall not be con-
sidered in such an evaluation.
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(b) INCLUSION IN EVALUATION OF OFFERS.—The 
cost of compliance shall be considered in the evaluation 
of offers provided by United States firms and by foreign 
sources submitting compliant offers. 
(c) COST OF COMPLIANCE.—The cost of compliance 
described in this subsection is the cost of compliance for 
a United States firm to procure items grown, reprocessed, 
reused, or produced in the United States, in accordance 
with section 2533a of title 10, United States Code, or to 
procure specialty metals melted or produced in the United 
States, in accordance with section 2533b of such title 10. 
SEC. 846. REQUIREMENTS RELATING TO WAIVERS OF CER-
TAIN DOMESTIC SOURCE LIMITATIONS. 
(a) MULTI-CONTRACT AND CLASS WAIVERS.—A do-
mestic non-availability determination pursuant to section 
2533b(b) of title 10, United States Code, that would apply 
to more than one prime contract of the Department of 
Defense shall be made only if the determination— 
(1) has been proposed and finalized under a 
formal rulemaking; 
(2) specifies that the determination will expire 
30 days after the Secretary concerned finds that the 
determination is no longer justified; and 
(3) requires an accounting of all end items, 
components, or specialty metals that do not comply
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with the requirement in section 2533b(a) of such 
title. 
(b) SINGLE CONTRACT WAIVERS.—In making a do-
mestic 
non-availability 
determination 
pursuant 
to 
2533b(b) of such title that applies to a single prime con-
tract of the Department of Defense, the Secretary con-
cerned shall ensure, after making the determination, 
that— 
(1) the information used as justification in 
making the determination is made publicly available 
to the maximum extent practicable; and 
(2) the contracting officer for the contract con-
cerned receives an accounting of all end items, com-
ponents, or specialty metals that do not comply with 
the requirement in section 2533b (a) of such title. 
(c) SPECIALTY METAL DEFINED.—In this section, 
the term ‘‘specialty metal’’ has the meaning provided in 
section 2533b(I) of title 10, United States Code. 
(d) EFFECTIVE DATE.—This section shall be effec-
tive as of February 1, 2007. 
SEC. 847. MULTIPLE COST THRESHOLD BREACHES. 
(a) 
EVALUATION
OF
COST
THRESHOLD 
BREACHES.—Within 30 days following the end of a fiscal 
year, each component of the Department of Defense shall 
evaluate, for the preceding fiscal year—
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•HR 1585 EH1S 
(1) the number of acquisition programs within 
the component that experienced significant and crit-
ical cost threshold breaches, as defined in section 
2433 of title 10, United States Code; and 
(2) the number of technology development pro-
grams within the component that, prior to a Mile-
stone B decision, required recertification by the 
Joint Requirements Oversight Council. 
(b) IDENTIFICATION AND REPORT ON SYSTEMIC DE-
FICIENCIES.—Within 90 days following the end of a fiscal 
year, each component of the Department of Defense that 
has identified more than two such programs under sub-
section (a), shall identify systemic deficiencies in its acqui-
sition policies or practices that may have contributed to 
the cost growth in such programs and provide a report 
to the Secretary of Defense outlining corrective actions to 
be taken. 
(c) ASSESSMENT OF CORRECTIVE ACTIONS.—Within 
120 days following the end of a fiscal year, the Secretary 
of Defense shall provide an assessment of the adequacy 
of such corrective actions, along with the details of the 
deficiencies leading to such cost growth, to the congres-
sional defense committees. 
(d) DEFINITION OF COMPONENT.—In this section, 
the term ‘‘component’’ means a military department, a
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combatant command, a Defense Agency, and any part of 
the Office of the Secretary of Defense that manages a 
major defense acquisition program. 
SEC. 848. PHONE CARDS. 
(a) COMPETITIVE PROCEDURES REQUIRED.—When 
the Secretary of Defense considers it necessary to provide 
morale, welfare, and recreation telephone services for mili-
tary personnel serving in combat zones, he shall use com-
petitive procedures when entering into a contract to pro-
vide those services. In evaluating contract proposals for 
such services, the Secretary shall require bid proposals to 
include options that minimize the cost of the phone serv-
ices to individual users while providing individual users the 
flexibility of using phone cards from other than the bid-
ding entity. 
(b) EFFECTIVE DATE.—This section shall apply to 
any new contract to provide morale welfare and recreation 
phone services in a combat theater that is entered into 
after the date of enactment of this Act. With regard to 
the extension of any contract to provide such services that 
is in existence on such date of enactment, the Secretary 
shall examine with the contractor whether it is possible 
to further reduce the cost of the services to the soldier 
by allowing the use of phone cards other than the contrac-
tor’s. The Secretary shall submit the results of his review
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to the Committees on Armed Services of the Senate and 
the House of Representatives. 
SEC. 849. JURISDICTION UNDER CONTRACT DISPUTES ACT 
OF 1978 OVER CLAIMS, DISPUTES, AND AP-
PEALS ARISING OUT OF MARITIME CON-
TRACTS. 
Section 4 of the Contract Disputes Act of 1978 (41 
U.S.C. 603) is amended by striking ‘‘of maritime con-
tracts,’’ and all that follows through the end of the section 
and inserting ‘‘of maritime contracts, shall be governed 
exclusively by this Act.’’. 
SEC. 850. CLARIFICATION OF JURISDICTION OF THE 
UNITED STATES DISTRICT COURTS TO HEAR 
BID PROTEST DISPUTES INVOLVING MARI-
TIME CONTRACTS. 
Section 1491 of title 28, United States Code, is 
amended by adding at the end the following: 
‘‘(d) Jurisdiction over any actions described under 
subsection (b)(1) of this section arising out of a maritime 
contract (as that term is used in the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.)) or a proposed mari-
time contract shall be governed by this section, and shall 
not be subject to the jurisdiction of the district courts of 
the United States under chapter 309 of title 46, popularly
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known as the Suits in Admiralty Act, or chapter 311 of 
title 46, popularly known as the Public Vessels Act.’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Additional requirements relating to limitation on major Department 
of Defense headquarters activities personnel. 
Sec. 902. Flexibility to adjust the number of deputy chiefs and assistant chiefs. 
Sec. 903. Change in eligibility requirements for appointment to Department of 
Defense leadership positions. 
Sec. 904. Revisions in functions and activities of special operations command. 
Sec. 905. Redesignation of the Department of the Navy as the Department of 
the Navy and Marine Corps. 
Sec. 906. Management system of the Department of Defense. 
Sec. 907. Acquisition parity for Special Operations Command. 
Sec. 908. Department of Defense Board of Actuaries. 
Subtitle B—Space Activities 
Sec. 911. Space protection policy and strategy. 
Sec. 912. Biennial report on management of space cadre within the Depart-
ment of Defense. 
Subtitle C—Chemical Demilitarization Program 
Sec. 921. Chemical demilitarization citizens advisory commissions. 
Sec. 922. Sense of Congress on completion of destruction of United States 
chemical weapons stockpile. 
Subtitle D—Intelligence-Related Matters 
Sec. 931. Reports on foreign language proficiency. 
Sec. 932. Technical amendments to title 10, United States Code, arising from 
enactment of the Intelligence Reform and Terrorism Preven-
tion Act of 2004. 
Subtitle E—Roles and Missions Analysis 
Sec. 941. Analysis and organization of roles and missions of Department of De-
fense. 
Sec. 942. Identification of core competencies of the military departments and 
other entities within the Department of Defense. 
Sec. 943. Review of capabilities of the military departments and other entities. 
Sec. 944. Joint Requirements Oversight Council additional duties relating to 
core mission areas. 
Sec. 945. Requirement for certification of major systems prior to technology de-
velopment. 
Sec. 946. Presentation of future-years mission budget by core mission area. 
Sec. 947. Future capability planning by Joint Requirements Oversight Council.
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Subtitle F—Other Matters 
Sec. 951. Department of Defense consideration of effect of climate change on 
Department facilities, capabilities, and missions. 
Sec. 952. Interagency policy coordination. 
Sec. 953. Expansion of employment creditable under service agreements under 
National Security Education Program. 
Sec. 954. Study of national security interagency system. 
Subtitle A—Department of Defense 
Management 
SEC. 901. ADDITIONAL REQUIREMENTS RELATING TO LIMI-
TATION ON MAJOR DEPARTMENT OF DE-
FENSE 
HEADQUARTERS 
ACTIVITIES 
PER-
SONNEL. 
Section 130a of title 10, United States Code, is 
amended— 
(1) in subsection (c)(2), by striking ‘‘may not 
be changed except as provided by law.’’ and insert-
ing ‘‘may be changed only if the Secretary of De-
fense submits proposed changes to Congress with 
the defense budget materials. Any such submitted 
changes shall take effect on the January 1 following 
the submission.’’; and 
(2) by adding at the end the following new sub-
sections: 
‘‘(e) FLEXIBILITY IN ORDER TO ACHIEVE COST SAV-
INGS OR ELIMINATE CONTRACTS ASSOCIATED WITH IN-
HERENTLY GOVERNMENTAL FUNCTIONS.—(1) If the Sec-
retary of a military department or the commander of a 
combatant command certifies to the Secretary of Defense
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•HR 1585 EH1S 
that a waiver of the limitation in subsection (a) or a re-
allocation among the military departments or combatant 
commands of the number of personnel permissible under 
subsection (a) either is expected to result in a cost savings 
or is necessary to eliminate a contract associated with an 
inherently governmental function (including cost savings 
or the elimination of a contract resulting from guidelines 
and procedures prescribed pursuant to section 343 of the 
National Defense Authorization Act for Fiscal Year 2006 
(Public Law 109–163)), the Secretary of Defense shall 
waive such limitation or make such reallocation to the ex-
tent necessary to achieve the cost savings or to eliminate 
the contract. 
‘‘(2) The Secretary of Defense shall include a report, 
with the defense budget materials for a fiscal year, out-
lining the uses of the waiver or reallocation authority pro-
vided in paragraph (1) during the preceding fiscal year, 
including the number of times the waiver or reallocation 
authority was used, the purposes for which it was used, 
expected cost savings, if any, and the number of personnel 
affected. 
‘‘(f) DEFENSE BUDGET MATERIALS.—In this sec-
tion, the term ‘defense budget materials’, with respect to 
a fiscal year, means the materials submitted to Congress 
by the Secretary of Defense in support of the budget for
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•HR 1585 EH1S 
that fiscal year that is submitted to Congress by the Presi-
dent under section 1105(a) of title 31.’’. 
SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEP-
UTY CHIEFS AND ASSISTANT CHIEFS. 
(a) ARMY.—Section 3035(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(b) The Secretary of the Army shall prescribe the 
number of Deputy Chiefs of Staff and Assistant Chiefs 
of Staff, for a total of not more than eight positions.’’. 
(b) NAVY.— 
(1) DEPUTY CHIEFS OF NAVAL OPERATIONS.— 
Section 5036(a) of title 10, United States Code, is 
amended— 
(A) by striking ‘‘There are in the Office of 
the Chief of Naval Operations not more than 
five Deputy Chiefs of Naval Operations,’’ and 
inserting ‘‘There are Deputy Chiefs of Naval 
Operations in the Office of the Chief of Naval 
Operations,’’; and 
(B) by adding at the end the following: 
‘‘The Secretary of the Navy shall prescribe the 
number of Deputy Chiefs of Naval Operations 
under this section and Assistant Chiefs of 
Naval Operations under section 5037 of this
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•HR 1585 EH1S 
title, for a total of not more than eight posi-
tions.’’. 
(2) ASSISTANT
CHIEFS
OF
NAVAL
OPER-
ATIONS.—Section 5037(a) of such title is amend-
ed— 
(A) by striking ‘‘There are in the Office of 
the Chief of Naval Operations not more than 
three Assistant Chiefs of Naval Operations,’’ 
and inserting ‘‘There are Assistant Chiefs of 
Naval Operations in the Office of the Chief of 
Naval Operations,’’; and 
(B) by adding at the end the following: 
‘‘The Secretary of the Navy shall prescribe the 
number of Assistant Chiefs of Naval Operations 
in accordance with section 5036(a) of this 
title.’’. 
(c) AIR FORCE.—Section 8035(b) of title 10, United 
States Code, is amended to read as follows: 
‘‘(b) The Secretary of the Air Force shall prescribe 
the number of Deputy Chiefs of Staff and Assistant Chiefs 
of Staff, for a total of not more than eight positions.’’.
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•HR 1585 EH1S 
SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR AP-
POINTMENT TO DEPARTMENT OF DEFENSE 
LEADERSHIP POSITIONS. 
(a) SECRETARY OF DEFENSE.—Section 113(a) of 
title 10, United States Code, is amended by striking ‘‘10’’ 
and inserting ‘‘five’’. 
(b) DEPUTY SECRETARY
OF DEFENSE.—Section 
132(a) of such title is amended by striking ‘‘ten’’ and in-
serting ‘‘five’’. 
(c) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(a) of such title is amended by striking ‘‘10’’ 
and inserting ‘‘five’’. 
SEC. 904. REVISIONS IN FUNCTIONS AND ACTIVITIES OF 
SPECIAL OPERATIONS COMMAND. 
(a) ADDITIONAL
PRINCIPAL
FUNCTION.—Section 
167(a) of title 10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ before ‘‘With the advice’’; 
and 
(2) by striking the sentence beginning with 
‘‘The principal function’’ and inserting the following 
new paragraph: 
‘‘(2) The principal functions of the command are— 
‘‘(A) to prepare special operations forces to 
carry out assigned missions; and
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•HR 1585 EH1S 
‘‘(B) if directed by the President or the Sec-
retary of Defense, to plan, synchronize, and carry 
out global missions against terrorists.’’. 
(b) REPORT REQUIREMENTS.— 
(1) REPORT ON UNCONVENTIONAL WARFARE.— 
Not later than March 1, 2008, the Secretary of De-
fense shall submit to the congressional defense com-
mittees a report containing a plan to meet the fu-
ture requirements of unconventional warfare. 
(2) ANNUAL REPORT ON PERSONNEL MANAGE-
MENT.—Not later than March 1, 2008, and not 
later than September 1 each year thereafter, the 
Secretary of Defense shall submit to the congres-
sional defense committees a report on the adequacy 
of Department of Defense personnel management 
programs to meet the needs of the special operations 
command. 
(c) ADDITIONAL
SPECIAL
OPERATIONS
ACTIVI-
TIES.—Subsection (j) of section 167 of such title is 
amended to read as follows: 
‘‘(j) SPECIAL OPERATIONS ACTIVITIES.—For pur-
poses of this section, special operations activities include 
each of the following insofar as it relates to special oper-
ations: 
‘‘(1) Unconventional warfare.