H. R. 2401—76
(B) the use of military personnel in the provision of
the goods and services, as computed by calculating, to
the maximum extent practicable, such costs if employees
of the Department of Defense were used in the provision
of the goods and services; and
(2) shall not include amounts necessary to recover the
costs of a military construction project (as such term is defined
in section 2801(b) of title 10, United States Code), other than
a minor construction project financed by the Defense Business
Operations Fund pursuant to section 2805(c)(1) of such title.
(b) DEFENSE FINANCE ACCOUNTING SERVICES.—The full cost
of the operation of the Defense Finance Accounting Service shall
be financed within the Defense Business Operations Fund through
charges for goods and services provided through the Fund.
(c) MODIFICATION OF CAPITAL ASSET SUBACCOUNT.—Section 342
of the National Defense Authorization Act for Fiscal Year 1993
(Public Law 102–484; 10 U.S.C. 2208 note) is amended—
(1) in subsection (a), by striking out the third sentence;
(2) in subsection (b), by striking out ‘‘, to the extent provided
for in appropriations Acts’’; and
(3) in subsection (d), by striking out ‘‘, during fiscal year
1993 and until April 15, 1994,’’.
SEC. 334. LIMITATION ON OBLIGATIONS AGAINST THE DEFENSE BUSI-
NESS OPERATIONS FUND.
(a) LIMITATION.—(1) The Secretary of Defense may not incur
obligations against the supply management divisions of the Defense
Business Operations Fund during fiscal year 1994 in a total amount
in excess of 65 percent of the total amount derived from sales
from such divisions during that fiscal year.
(2) For purposes of determining the amount of obligations
incurred against, and sales from, such divisions during fiscal year
1994, the Secretary shall exclude obligations and sales for fuel,
commissary and subsistence items, retail operations, repair of equip-
ment and spare parts in support of repair, direct vendor deliveries,
foreign military sales, initial outfitting requiring equipment fur-
nished by the Federal Government, and the cost of operations.
(b) EXCEPTION.—The Secretary of Defense may waive the
limitation described in subsection (a) if the Secretary determines
that such waiver is necessary in order to maintain the readiness
and combat effectiveness of the Armed Forces. The Secretary shall
immediately notify Congress of any such waiver and the reasons
for such waiver.
Subtitle D—Depot-Level Activities
SEC. 341. DEPARTMENT OF DEFENSE DEPOT TASK FORCE.
(a) ESTABLISHMENT.—The Secretary of Defense shall establish
a task force to assess the overall performance and management
of depot-level activities of the Department of Defense. The assess-
ment shall include the following:
(1) The identification of the depot-level maintenance work-
loads that were performed during each of fiscal years 1990
through 1993 for the military departments and the Defense
Agencies by employees of the Department of Defense and by
non-Federal Government personnel.
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H. R. 2401—77
(2) An estimate of the current capacity to carry out the
performance of depot-level maintenance workloads by employ-
ees of the Department of Defense and by non-Federal Govern-
ment personnel.
(3) An identification of the rationale used by the Depart-
ment of Defense to support a decision to provide for the perform-
ance of a depot-level maintenance workload by employees of
the Department of Defense or by non-Federal Government
personnel.
(4) An evaluation of the cost, manner, and quality of
performance of the depot-level maintenance workload by
employees of the Department of Defense and by non-Federal
Government personnel.
(5) An evaluation of the manner of determining the core
workload requirements for depot-level maintenance workloads
performed by employees of the Department of Defense.
(6) A comparison of the methods by which the rates and
prices for depot-level maintenance workloads performed by
employees of the Department of Defense are determined with
the methods by which such rates and prices are determined
for depot-level maintenance workloads performed by non-Fed-
eral Government personnel.
(7) A discussion of the issues involved in determining the
balance between the amount of depot-level maintenance work-
loads assigned for performance by employees of the Department
of Defense and the amount of depot-level maintenance work-
loads assigned for performance by non-Federal Government
personnel, including the preservation of surge capabilities and
essential industrial base capabilities needed in the event of
mobilization.
(8) An identification of the depot-level functions and activi-
ties that are suitable for performance by employees of the
Department of Defense and the depot-level functions and activi-
ties that are suitable for performance by non-Federal Govern-
ment personnel.
(9) An identification of the management and organizational
structure of the Department of Defense necessary for the
Department to provide the optimal management of depot-level
maintenance and the allocation of related resources.
(b) MEMBERSHIP.—The task force established pursuant to sub-
section (a) shall be composed of individuals from the Department
of Defense and the private sector who—
(1) have expertise in the management of depot-level activi-
ties;
(2) have expertise in acquisition;
(3) have expertise in the management of relevant items
and weapon systems; and
(4) are or have been users of depot-level maintenance prod-
ucts produced by employees of the Department of Defense and
by non-Federal Government personnel.
(c) PAY
AND TRAVEL EXPENSES.—(1) Except as provided in
paragraph (3), each member of the task force shall be paid at
a rate equal to the daily equivalent of the minimum annual rate
of basic pay payable for level IV of the Executive Schedule under
section 5315 of title 5, United States Code, for each day (including
travel time) during which the member is engaged in the actual
performance of the duties of the task force.
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H. R. 2401—78
(2) Each member of the task force shall receive travel expenses,
including per diem in lieu of subsistence, in accordance with sections
5702 and 5703 of title 5, United States Code.
(3) Except as provided in paragraph (2), a member of the
task force who is an employee of the Department of Defense or
a member of the Armed Forces may not receive additional pay,
allowances, or benefits by reason of such individual’s service on
the task force.
(d) ADMINISTRATIVE SUPPORT.—The Secretary of Defense shall
provide the task force with the administrative, professional, and
technical support required by the task force to carry out its duties
under this section.
(e) REPORT.—Not later than April 1, 1994, the task force shall
submit to the Secretary of Defense and the congressional defense
committees a report on the results of the assessment conducted
under subsection (a) and the recommendations of the task force
for any legislative and administrative action the task force considers
to be appropriate.
(f) TERMINATION.—The task force shall terminate not later than
60 days after submitting its report pursuant to subsection (e).
SEC. 342. LIMITATION ON CONSOLIDATION OF MANAGEMENT OF
DEPOT-LEVEL MAINTENANCE WORKLOAD.
The Secretary of Defense may not, during fiscal year 1994,
consolidate the management of the depot-level maintenance work-
load of the Department of Defense under a single Defense-wide
entity.
SEC. 343. CONTINUATION OF CERTAIN PERCENTAGE LIMITATIONS ON
THE PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.
The Secretary of Defense shall ensure that the percentage
limitations applicable to the depot-level maintenance workload per-
formed by non-Federal Government personnel set forth in section
2466 of title 10, United States Code, are adhered to.
SEC. 344. SENSE OF CONGRESS ON THE PERFORMANCE OF CERTAIN
DEPOT-LEVEL WORK BY FOREIGN CONTRACTORS.
(a) SENSE OF CONGRESS.—It is the sense of the Congress that
the Secretary of Defense should not contract for the performance
by a person or organization described in subsection (b) of any
depot-level maintenance work on equipment located in the United
States if the Secretary determines that the work could be performed
in the United States on a cost-effective basis and without significant
adverse effect on the readiness of the Armed Forces.
(b) COVERED
PERSONS
AND
ORGANIZATIONS.—A person or
organization referred to in subsection (a) is a person or organization
which is not part of the national technology and industrial base,
as such term is defined in section 2491(1) of title 10, United States
Code.
SEC. 345. SENSE OF CONGRESS ON THE ROLE OF DEPOT-LEVEL
ACTIVITIES OF THE DEPARTMENT OF DEFENSE.
(a) FINDINGS.—The Congress makes the following findings:
(1) The depot-level maintenance and repair activities of
the Department of Defense provide the Armed Forces with
a critical capacity to respond to the needs of the Armed Forces
for depot-level maintenance and repair of weapon systems and
equipment.
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H. R. 2401—79
(2) The depot-level maintenance and repair activities of
the Department of Defense provide the Department with
capabilities that are uniquely suited to responding to the
increased need for repair and maintenance of weapon systems
and equipment which may arise in times of national crisis.
(3) The skilled employees and equipment of the depot-
level maintenance and repair activities of the Department of
Defense are an essential component of the overall defense
industrial base of the United States.
(4) The critical role of the depot-level maintenance and
repair activities of the Department of Defense is recognized
in section 2466 of title 10, United States Code, which provides
that the Secretary of a military department and, with respect
to a Defense Agency, the Secretary of Defense, may not contract
for the performance by non-Federal Government personnel of
more than 40 percent of the depot-level maintenance workload
for the military department or the Defense Agency.
(5) Maintenance of this critical industrial capability in the
Department of Defense requires that an appropriate level of
the depot-level maintenance and repair of new weapon systems
be assigned to depot-level maintenance and repair activities
of the Department of Defense.
(b) SENSE OF CONGRESS.—It is the sense of the Congress that,
in order to maintain the critical depot-level maintenance and repair
capability for military weapon systems and equipment, the Sec-
retary of Defense shall, to the maximum extent practicable, ensure
that a sufficient amount of the depot-level maintenance and repair
of new weapon systems and equipment is assigned to depot-level
maintenance and repair activities of the Department of Defense,
consistent with the requirements of section 2466 of title 10, United
States Code.
SEC. 346. CONTRACTS TO PERFORM WORKLOADS PREVIOUSLY PER-
FORMED BY DEPOT-LEVEL ACTIVITIES OF THE DEPART-
MENT OF DEFENSE.
Section 2469 of title 10, United States Code, is amended—
(1) by inserting ‘‘(a) REQUIREMENT FOR COMPETITION.—’’
before ‘‘The Secretary of Defense’’;
(2) by striking out ‘‘threshold’’;
(3) by striking out ‘‘unless’’ and all that follows and insert-
ing in lieu thereof ‘‘to performance by a contractor unless the
Secretary uses competitive procedures for the selection of the
contractor to perform such workload.’’; and
(4) by adding at the end the following new subsection:
‘‘(b) INAPPLICABILITY
OF OMB CIRCULAR A–76.—The use of
Office of Management and Budget Circular A–76 shall not apply
to a performance change under subsection (a).’’.
SEC. 347. AUTHORITY TO WAIVE CERTAIN CLAIMS OF THE UNITED
STATES.
(a) DESCRIPTION OF CLAIMS INVOLVED.—This section applies
with respect to any claim of the United States against an individual
which relates to a bonus or other payment awarded to such individ-
ual under a productivity gainsharing program based on work per-
formed by such individual as an employee of Naval Aviation Depot,
Norfolk, Virginia, or as an employee of Naval Aviation Depot,
Jacksonville, Florida, after September 30, 1988, and before October
1, 1992.
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H. R. 2401—80
(b) WAIVER
AUTHORITY
AVAILABLE
WITHOUT
REGARD
TO
AMOUNT INVOLVED.—Notwithstanding the limitation set forth in
section 2774(a)(2)(A) of title 10, United States Code, any waiver
authority under section 2774(a)(2) of such title may be exercised,
with respect to any claim described in subsection (a) of this section,
without regard to the amount involved.
(c) REPORT.—Not later than March 1, 1994, the Secretary of
the Navy shall submit to the congressional defense committees
a report that specifies—
(1) the circumstances under which each overpayment of
a bonus or other payment referred to in subsection (a) was
made;
(2) the number of individuals to whom such an overpay-
ment was made;
(3) the total amount of such overpayments; and
(4) any action planned or initiated by the Secretary to
prevent the occurrence of similar overpayments in the future.
(d) DEFINITION.—In this section, the term ‘‘productivity
gainsharing program’’ means a productivity gainsharing program
established under chapter 45 or section 5407 of title 5, United
States Code, or Executive Order No. 12637 (31 U.S.C. 501 note).
Subtitle E—Commissaries and Military
Exchanges
SEC. 351. PROHIBITION ON OPERATION OF COMMISSARY STORES BY
ACTIVE DUTY MEMBERS OF THE ARMED FORCES.
(a) IN GENERAL.—Chapter 49 of title 10, United States Code,
is amended by inserting after section 976 the following new section:
‘‘§ 977. Operation of commissary stores: assignment of active
duty members generally prohibited
‘‘(a) GENERAL RULE.—A member of the armed forces on active
duty may not be assigned to the operation of a commissary store.
‘‘(b) EXCEPTION FOR DCA DIRECTOR.—The Secretary of Defense
may assign an officer on the active-duty list to serve as the Director
of the Defense Commissary Agency.
‘‘(c) EXCEPTION FOR CERTAIN ADDITIONAL MEMBERS.—Beginning
on October 1, 1996, not more than 18 members (in addition to
the officer referred to in subsection (b)) of the armed forces on
active duty may be assigned to the Defense Commissary Agency.
Members who may be assigned under this subsection to regional
headquarters of the agency shall be limited to enlisted members
assigned to duty as advisors in the regional headquarters respon-
sible for overseas commissaries and to veterinary specialists.
‘‘(d) EXCEPTION FOR CERTAIN NAVY PERSONNEL.—(1) The Sec-
retary of the Navy may assign to the Defense Commissary Agency
a member of the Navy on active duty whose assignment afloat
is part of the operation of a ship’s food service or a ship’s store.
Any such assignment shall be on a nonreimbursable basis.
‘‘(2) The number of such members assigned to the Defense
Commissary Agency during any period before October 1, 1996,
may not exceed the number of such members so assigned on October
1, 1993. After September 30, 1996, the number of such members
so assigned may not exceed the lesser of (A) the number of members
so assigned on October 1, 1993, and (B) 400.’’.
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H. R. 2401—81
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating
to section 976 the following new item:
‘‘977. Operation of commissary stores: assignment of active duty members generally
prohibited.’’.
SEC. 352. MODERNIZATION 
OF 
AUTOMATED 
DATA 
PROCESSING
CAPABILITY OF THE DEFENSE COMMISSARY AGENCY.
In order to perform inside the Defense Commissary Agency
all automated data processing functions of the Agency as soon
as possible, the Secretary of Defense shall, consistent with other
applicable law, take any action necessary to expedite the moderniza-
tion of the automated data processing capability of the Agency,
including the adoption of the use of commercial grocery industry
practices and financial management programs with respect to such
processing.
SEC. 353. OPERATION OF STARS AND STRIPES BOOKSTORES OVER-
SEAS BY THE MILITARY EXCHANGES.
(a) REQUIREMENT.—The Secretary of Defense shall provide for
the commencement, not later than October 1, 1994, of the operation
of Stars and Stripes bookstores outside of the United States by
the military exchanges.
(b) REGULATIONS.—The Secretary of Defense shall prescribe
regulations to carry out subsection (a).
SEC. 354. AVAILABILITY OF FUNDS FOR RELOCATION EXPENSES OF
THE NAVY EXCHANGE SERVICE COMMAND.
Of funds authorized to be appropriated under section 301(2),
not more than $10,000,000 shall be available to provide for the
payment of expenses incurred by the Navy Exchange Service Com-
mand to relocate functions and activities from Naval Station, Staten
Island, New York, to Norfolk, Virginia.
Subtitle F—Other Matters
SEC. 361. EMERGENCY AND EXTRAORDINARY EXPENSE AUTHORITY
FOR THE INSPECTOR GENERAL OF THE DEPARTMENT OF
DEFENSE.
Section 127 of title 10, United States Code, is amended—
(1) in subsection (a)—
(A) in the first sentence, by inserting ‘‘, the Inspector
General of the Department of Defense,’’ after ‘‘the Secretary
of Defense’’;
(B) in the second sentence, by inserting ‘‘or the Inspec-
tor General’’ after ‘‘the Secretary concerned’’; and
(C) in the third sentence, by inserting ‘‘or the Inspector
General’’ after ‘‘The Secretary concerned’’;
(2) in subsection (b), by inserting ‘‘, by the Inspector Gen-
eral to any person in the Office of the Inspector General,’’
after ‘‘the Department of Defense’’; and
(3) in subsection (c)—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(B) by adding at the end the following new paragraph:
‘‘(2) The amount of funds expended by the Inspector General
of the Department of Defense under subsections (a) and (b) during
a fiscal year may not exceed $400,000.’’.
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H. R. 2401—82
SEC. 362. AUTHORITY FOR CIVILIAN EMPLOYEES OF THE ARMY TO
ACT ON REPORTS OF SURVEY.
Section 4835 of title 10, United States Code, is amended—
(1) in subsection (a), by inserting ‘‘or any civilian employee
of the Department of the Army’’ after ‘‘any officer of the Army’’;
and
(2) in subsection (b), by striking out ‘‘an officer of the
Army designated by him.’’ and inserting in lieu thereof ‘‘the
Secretary’s designee. The Secretary may designate officers of
the Army or civilian employees of the Department of the Army
to approve such action.’’.
SEC. 363. EXTENSION OF GUIDELINES FOR REDUCTIONS IN CIVILIAN
POSITIONS.
(a) EXTENSION OF GUIDELINES.—Section 1597 of title 10, United
States Code, is amended—
(1) in subsection (a), by striking out ‘‘during fiscal year
1993’’ and inserting in lieu thereof ‘‘during a fiscal year’’; and
(2) in subsection (b), by striking out ‘‘for fiscal year 1993’’.
(b) UPDATE OF MASTER PLAN.—Section 1597(c) of such title
is amended—
(1) in paragraph (1), by striking out ‘‘for fiscal year 1994’’
and inserting in lieu thereof ‘‘for each fiscal year’’;
(2) in subparagraph (A) of paragraph (3), by adding at
the end the following new clause:
‘‘(vii) The total number of individuals employed by
contractors and subcontractors of the Department of
Defense under a contract or subcontract entered into pursu-
ant to Office of Management and Budget Circular A–76
to perform commercial activities for the Department of
Defense, a military department, a defense agency, or other
component.’’; and
(3) by adding at the end the following new paragraph:
‘‘(4) The Secretary of Defense shall include in the materials
referred to in paragraph (1) a report on the implementation of
the master plan for the fiscal year immediately preceding the fiscal
year for which such materials are submitted.’’.
SEC. 364. AUTHORITY TO EXTEND MAILING PRIVILEGES.
Paragraph (1) of section 3401(a) of title 39, United States
Code, is amended—
(1) in the matter before subparagraph (A)—
(A) by inserting ‘‘an individual who is’’ before ‘‘a mem-
ber’’; and
(B) by inserting ‘‘or a civilian, otherwise authorized
to use postal services at Armed Forces installations, who
holds a position or performs one or more functions in
support of military operations, as designated by the mili-
tary theater commander,’’ after ‘‘section 101 of title 10,’’;
and
(2) in subparagraphs (A) and (B), by striking ‘‘the member’’
and inserting ‘‘such individual’’.
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H. R. 2401—83
SEC. 365. EXTENSION AND MODIFICATION OF PILOT PROGRAM TO
USE 
NATIONAL 
GUARD 
PERSONNEL 
IN 
MEDICALLY
UNDERSERVED COMMUNITIES.
(a) PILOT PROGRAM.—Subsection (a) of section 376 of the
National Defense Authorization Act for Fiscal Year 1993 (Public
Law 102–484; 10 U.S.C. 501 note) is amended—
(1) by striking out ‘‘Under regulations prescribed by the
Secretary of Defense, the’’ and inserting in lieu thereof ‘‘The’’;
(2) by inserting ‘‘, approved by the Secretary of Defense,’’
after ‘‘enter into an agreement’’; and
(3) by striking out ‘‘fiscal years 1993 and 1994’’ and insert-
ing in lieu thereof ‘‘fiscal years 1993, 1994, and 1995’’.
(b) FUNDING ASSISTANCE.—Subsection (b) of such section is
amended to read as follows:
‘‘(b) FUNDING
ASSISTANCE.—Amounts made available from
Department of Defense accounts for operation and maintenance
and for pay and allowances to carry out the pilot program shall
be apportioned by the Chief of the National Guard Bureau among
those States with which the Chief has entered into approved agree-
ments. In addition to such amounts, the Chief of the National
Guard Bureau may authorize any such State, in order to carry
out the pilot program during a fiscal year, to use funds received
as part of the operation and maintenance allotments and the pay
and allowances allotments for the National Guard of the State
for that fiscal year.’’.
(c) SUPPLIES
AND
EQUIPMENT.—Such section is further
amended—
(1) by redesignating subsections (c), (d), (e), and (f) as
subsections (d), (e), (f), and (g), respectively; and
(2) by inserting after subsection (b) the following new sub-
section (c):
‘‘(c) SUPPLIES AND EQUIPMENT.—(1) Funds made available from
Department of Defense operation and maintenance accounts to carry
out the pilot program may be used for the purchase of supplies
and equipment necessary for the provision of health care under
the pilot program.
‘‘(2) In addition to supplies and equipment provided through
the use of funds under paragraph (1), supplies and equipment
described in such paragraph that are furnished by a State, a Federal
agency, a private agency, or an individual may be used to carry
out the pilot program.’’.
(d) SERVICE OF PARTICIPANTS.—Subsection (f) of such section,
as redesignated by subsection (c)(1), is amended to read as follows:
‘‘(f) SERVICE OF PARTICIPANTS.—Service in the pilot program
by a member of the National Guard shall be considered training
in the member’s Federal status as a member of the National Guard
of a State under section 270 of title 10, United States Code, and
section 502 of title 32, United States Code.’’.
(e) REPORT.—Subsection (g) of such section, as redesignated
by subsection (c)(1), is amended by striking out ‘‘January 1, 1994’’
and inserting in lieu thereof ‘‘January 1, 1995’’.
(f) DEFINITIONS.—Such section is further amended by adding
at the end the following new subsection:
‘‘(h) DEFINITIONS.—In this section:
‘‘(1) The term ‘health care’ includes medical care services
and dental care services.
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H. R. 2401—84
‘‘(2) The term ‘Governor’, with respect to the District of
Columbia, means the commanding general of the District of
Columbia National Guard.
‘‘(3) The term ‘State’ includes the District of Columbia,
the Commonwealth of Puerto Rico, Guam, and the Virgin
Islands.’’.
SEC. 366. AMENDMENTS TO THE ARMED FORCES RETIREMENT HOME
ACT OF 1991.
(a) SUPPORT FOR HOME BY DEPARTMENT OF DEFENSE.—Section
1511 of the Armed Forces Retirement Home Act of 1991 (title
XV of Public Law 101–510; 24 U.S.C. 411) is amended—
(1) by redesignating subsection (e) as subsection (f); and
(2) by inserting after subsection (d) the following new sub-
section (e):
‘‘(e) DEPARTMENT
OF DEFENSE SUPPORT.—The Secretary of
Defense may make available to the Retirement Home, on a
nonreimbursable basis, administrative support and office services,
legal and policy planning assistance, access to investigative facilities
of the Inspector General of the Department of Defense and of
the military departments, and any other support necessary to enable
the Retirement Home to carry out its functions under this Act.’’.
(b) AUTHORITY OF RETIREMENT HOME CHAIRMAN.—Paragraph
(1) of section 1515(d) of such Act (24 U.S.C. 415(d)) is amended
to read as follows:
‘‘(1)(A) The Secretary of Defense shall select one of the members
of the Retirement Home Board to serve as chairman. The term
of office of the chairman shall be five years. At the discretion
of the Secretary a chairman may serve a second five-year term
of office as chairman.
‘‘(B) The chairman shall act as the chief executive officer of
the Armed Forces Retirement Home and while so acting shall
not be responsible to the Secretary of Defense or to the Secretaries
of the military departments for direction and management of the
Retirement Home or each facility maintained as a separate facility
of the Retirement Home.
‘‘(C) The chairman may appoint, in addition to such ad hoc
committees as the chairman determines to be appropriate, a stand-
ing executive committee to act for, and in the name of, the Retire-
ment Home Board at such times and on such matters as the
chairman considers necessary to expedite the efficient and timely
management of each facility maintained as a separate facility of
the Retirement Home.
‘‘(D) The chairman may appoint an administrative staff to
assist the chairman in the performance of the duties of the chair-
man. The chairman shall determine the rates of pay applicable
to such staff, except that a staff member who is a member of
the Armed Forces on active duty or who is a full-time officer
or employee of the United States shall receive no additional pay
by reason of service on the administrative staff.’’.
(c) HOSPITAL CARE FOR HOME RESIDENTS.—Section 1513(b) of
such Act (24 U.S.C. 413(b)) is amended by striking out the second
sentence and inserting in lieu thereof the following: ‘‘Secondary
and tertiary hospital care for residents that is not available at
a facility maintained as a separate establishment of the Retirement
Home shall, to the extent available, be obtained by agreement
with the Secretary of Veterans Affairs or the Secretary of Defense
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