588 
(c) EXCEPTION.—Subsection (a) shall not apply to 
an Inspector General if no audits described in such sub-
section were issued during the covered period. 
(d) SUBMISSION OF INDIVIDUAL AUDITS.— 
(1) REQUIREMENT.—The head of each Federal 
department or agency shall provide, within 14 days 
after a request in writing by the chairman or rank-
ing member of any committee listed in paragraph 
(2), a full and unredacted copy of any audit de-
scribed in subsection (a). Such copy shall include an 
identification of information in the audit exempt 
from public disclosure under section 552(b) of title 
5, United States Code. 
(2) COMMITTEES.—The committees listed in 
this paragraph are the following: 
(A) The Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives. 
(B) The Committee on Homeland Security 
and Governmental Affairs of the Senate. 
(C) The Committees on Appropriations of 
the House of Representatives and the Senate. 
(D) With respect to the Department of De-
fense and the Department of Energy, the Com-
589 
mittees on Armed Services of the Senate and 
House of Representatives. 
(E) The Committees of primary jurisdic-
tion over the agency or department to which the 
request is made. 
(e) CLASSIFIED INFORMATION.—Nothing in this sec-
tion shall be interpreted to require the handling of classi-
fied information or information relating to intelligence 
sources and methods in a manner inconsistent with any 
law, regulation, executive order, or rule of the House of 
Representatives or of the Senate relating to the handling 
or protection of such information. 
(f) DEFINITIONS.—In this section: 
(1) SIGNIFICANT AUDIT FINDINGS.—The term 
‘‘significant audit findings’’ includes— 
(A) unsupported, questioned, or disallowed 
costs in an amount in excess of $10,000,000; or 
(B) other findings that the Inspector Gen-
eral of the agency or department concerned de-
termines to be significant. 
(2) CONTRACT.—The term ‘‘contract’’ includes 
a contract, an order placed under a task or delivery 
order contract, or a subcontract.
590 
SEC. 846. PROTECTION FOR CONTRACTOR EMPLOYEES 
FROM REPRISAL FOR DISCLOSURE OF CER-
TAIN INFORMATION. 
(a) INCREASED PROTECTION FROM REPRISAL.— 
Subsection (a) of section 2409 of title 10, United States 
Code, is amended— 
(1) by striking ‘‘disclosing to a Member of Con-
gress’’ and inserting ‘‘disclosing to a Member of 
Congress, a representative of a committee of Con-
gress, an Inspector General, the Government Ac-
countability Office, a Department of Defense em-
ployee responsible for contract oversight or manage-
ment,’’; and 
(2) by striking ‘‘information relating to a sub-
stantial violation of law related to a contract (includ-
ing the competition for or negotiation of a con-
tract)’’ and inserting ‘‘information that the employee 
reasonably believes is evidence of gross mismanage-
ment of a Department of Defense contract or grant, 
a gross waste of Department of Defense funds, a 
substantial and specific danger to public health or 
safety, or a violation of law related to a Department 
of Defense contract (including the competition for or 
negotiation of a contract) or grant’’.
591 
(b) CLARIFICATION OF INSPECTOR GENERAL DE-
TERMINATION.—Subsection (b) of such section is amend-
ed— 
(1) by inserting ‘‘(1)’’ after ‘‘INVESTIGATION 
OF COMPLAINTS.—’’; 
(2) by striking ‘‘an agency’’ and inserting ‘‘the 
Department of Defense, or the Inspector General of 
the National Aeronautics and Space Administration 
in the case of a complaint regarding the National 
Aeronautics and Space Administration’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2)(A) Except as provided under subparagraph (B), 
the Inspector General shall make a determination that a 
complaint is frivolous or submit a report under paragraph 
(1) within 180 days after receiving the complaint. 
‘‘(B) If the Inspector General is unable to complete 
an investigation in time to submit a report within the 180- 
day period specified in subparagraph (A) and the person 
submitting the complaint agrees to an extension of time, 
the Inspector General shall submit a report under para-
graph (1) within such additional period of time as shall 
be agreed upon between the Inspector General and the 
person submitting the complaint.’’.
592 
(c) ACCELERATION OF SCHEDULE FOR DENYING RE-
LIEF OR PROVIDING REMEDY.—Subsection (c) of such 
section is amended— 
(1) in paragraph (1), by striking ‘‘If the head 
of the agency determines that a contractor has sub-
jected a person to a reprisal prohibited by subsection 
(a), the head of the agency may’’ and inserting after 
‘‘(1)’’ the following: ‘‘Not later than 30 days after 
receiving an Inspector General report pursuant to 
subsection (b), the head of the agency concerned 
shall determine whether there is sufficient basis to 
conclude that the contractor concerned has subjected 
the complainant to a reprisal prohibited by sub-
section (a) and shall either issue an order denying 
relief or shall’’; 
(2) by redesignating paragraphs (2) and (3) as 
paragraphs (4) and (5), respectively; and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) If the head of an executive agency issues an 
order denying relief under paragraph (1) or has not issued 
an order within 210 days after the submission of a com-
plaint under subsection (b), or in the case of an extension 
of time under paragraph (b)(2)(B), not later than 30 days 
after the expiration of the extension of time, and there
593 
is no showing that such delay is due to the bad faith of 
the complainant, the complainant shall be deemed to have 
exhausted all administrative remedies with respect to the 
complaint, and the complainant may bring a de novo ac-
tion at law or equity against the contractor to seek com-
pensatory damages and other relief available under this 
section in the appropriate district court of the United 
States, which shall have jurisdiction over such an action 
without regard to the amount in controversy. Such an ac-
tion shall, at the request of either party to the action, be 
tried by the court with a jury. 
‘‘(3) An Inspector General determination and an 
agency head order denying relief under paragraph (2) 
shall be admissible in evidence in any de novo action at 
law or equity brought pursuant to this subsection.’’. 
(d) DEFINITIONS.—Subsection (e) of such section is 
amended— 
(1) in paragraph (4), by inserting ‘‘or a grant’’ 
after ‘‘a contract’’; and 
(2) by inserting before the period at the end the 
following: ‘‘and any Inspector General that receives 
funding from, or has oversight over contracts award-
ed for or on behalf of, the Secretary of Defense’’.
594 
SEC. 847. REQUIREMENTS FOR SENIOR DEPARTMENT OF 
DEFENSE OFFICIALS SEEKING EMPLOYMENT 
WITH DEFENSE CONTRACTORS. 
(a) REQUIREMENT TO SEEK AND OBTAIN WRITTEN 
OPINION.— 
(1) REQUEST.—An official or former official of 
the Department of Defense described in subsection 
(c) who, within two years after leaving service in the 
Department of Defense, expects to receive com-
pensation from a Department of Defense contractor, 
shall, prior to accepting such compensation, request 
a written opinion regarding the applicability of post- 
employment restrictions to activities that the official 
or former official may undertake on behalf of a con-
tractor. 
(2) SUBMISSION OF REQUEST.—A request for a 
written opinion under paragraph (1) shall be sub-
mitted in writing to an ethics official of the Depart-
ment of Defense having responsibility for the organi-
zation in which the official or former official serves 
or served and shall set forth all information relevant 
to the request, including information relating to gov-
ernment positions held and major duties in those po-
sitions, actions taken concerning future employment, 
positions sought, and future job descriptions, if ap-
plicable.
598 
(2) section 207 of title 18, United States Code; 
and 
(3) any other statute or regulation restricting 
the employment or activities of individuals who leave 
government service in the Department of Defense. 
SEC. 848. REPORT ON CONTRACTOR ETHICS PROGRAMS OF 
MAJOR DEFENSE CONTRACTORS. 
(a) REPORT REQUIRED.—Not later than one year 
after the date of the enactment of this Act, the Comp-
troller General of the United States shall submit to the 
Committees on Armed Services of the Senate and the 
House of Representatives a report on the internal ethics 
programs of major defense contractors. 
(b) ELEMENTS.—The report required by subsection 
(a) shall address, at a minimum— 
(1) the extent to which major defense contrac-
tors have internal ethics programs in place; 
(2) the extent to which the ethics programs de-
scribed in paragraph (1) include— 
(A) the availability of internal mechanisms, 
such as hotlines, for contractor employees to re-
port conduct that may violate applicable re-
quirements of law or regulation; 
(B) notification to contractor employees of 
the availability of external mechanisms, such as
599 
the hotline of the Inspector General of the De-
partment of Defense, for the reporting of con-
duct that may violate applicable requirements of 
law or regulation; 
(C) notification to contractor employees of 
their right to be free from reprisal for dis-
closing a substantial violation of law related to 
a contract, in accordance with section 2409 of 
title 10, United States Code; 
(D) ethics training programs for con-
tractor officers and employees; 
(E) internal audit or review programs to 
identify and address conduct that may violate 
applicable requirements of law or regulation; 
(F) self-reporting requirements, under 
which contractors report conduct that may vio-
late applicable requirements of law or regula-
tion to appropriate government officials; 
(G) disciplinary action for contractor em-
ployees whose conduct is determined to have 
violated applicable requirements of law or regu-
lation; and 
(H) appropriate management oversight to 
ensure the successful implementation of such 
ethics programs;
600 
(3) the extent to which the Department of De-
fense monitors or approves the ethics programs of 
major defense contractors; and 
(4) the advantages and disadvantages of legisla-
tion requiring that defense contractors develop inter-
nal ethics programs and requiring that specific ele-
ments be included in such ethics programs. 
(c) ACCESS TO INFORMATION.—In accordance with 
the contract clause required pursuant to section 2313(c) 
of title 10, United States Code, each major defense con-
tractor shall provide the Comptroller General access to in-
formation requested by the Comptroller General that is 
within the scope of the report required by this section. 
(d) MAJOR DEFENSE CONTRACTOR DEFINED.—In 
this section, the term ‘‘major defense contractor’’ means 
any company that was awarded contracts by the Depart-
ment of Defense during fiscal year 2006 in amounts total-
ing more than $500,000,000. 
SEC. 849. CONTINGENCY CONTRACTING TRAINING FOR 
PERSONNEL 
OUTSIDE 
THE 
ACQUISITION 
WORKFORCE AND EVALUATIONS OF ARMY 
COMMISSION RECOMMENDATIONS. 
(a) TRAINING REQUIREMENT.—Section 2333 of title 
10, United States Code is amended—
601 
(1) by redesignating subsection (e) as sub-
section (f); and 
(2) by inserting after subsection (d) the fol-
lowing new subsection (e): 
‘‘(e) TRAINING FOR PERSONNEL OUTSIDE ACQUISI-
TION WORKFORCE.—(1) The joint policy for requirements 
definition, contingency program management, and contin-
gency contracting required by subsection (a) shall provide 
for training of military personnel outside the acquisition 
workforce (including operational field commanders and of-
ficers performing key staff functions for operational field 
commanders) who are expected to have acquisition respon-
sibility, including oversight duties associated with con-
tracts or contractors, during combat operations, post-con-
flict operations, and contingency operations. 
‘‘(2) Training under paragraph (1) shall be sufficient 
to ensure that the military personnel referred to in that 
paragraph understand the scope and scale of contractor 
support they will experience in contingency operations and 
are prepared for their roles and responsibilities with re-
gard to requirements definition, program management (in-
cluding contractor oversight), and contingency con-
tracting. 
‘‘(3) The joint policy shall also provide for the incor-
poration of contractors and contract operations in mission
602 
readiness exercises for operations that will include con-
tracting and contractor support.’’. 
(b) ORGANIZATIONAL REQUIREMENTS.— 
(1) EVALUATION BY THE SECRETARY OF DE-
FENSE.—The Secretary of Defense, in consultation 
with the Chairman of the Joint Chiefs of Staff, shall 
evaluate the recommendations included in the report 
of the Commission on Army Acquisition and Pro-
gram Management in Expeditionary Operations and 
shall determine the extent to which such rec-
ommendations are applicable to the other Armed 
Forces. Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense 
shall submit a report to the congressional defense 
committees with the conclusions of this evaluation 
and a description of the Secretary’s plans for imple-
menting the Commission’s recommendations for 
Armed Forces other than the Army. 
(2) EVALUATION BY THE SECRETARY OF THE 
ARMY.—The Secretary of the Army, in consultation 
with the Chief of Staff of the Army, shall evaluate 
the recommendations included in the report of the 
Commission on Army Acquisition and Program 
Management in Expeditionary Operations. Not later 
than 120 days after the date of the enactment of
603 
this Act, the Secretary of the Army shall submit to 
the congressional defense committees a report detail-
ing the Secretary’s plans for implementation of the 
recommendations of the Commission. The report 
shall include the following: 
(A) For each recommendation that has 
been implemented, or that the Secretary plans 
to implement— 
(i) a summary of all actions that have 
been 
taken 
to 
implement 
such 
rec-
ommendation; and 
(ii) a schedule, with specific mile-
stones, for completing the implementation 
of such recommendation. 
(B) For each recommendation that the 
Secretary has not implemented and does not 
plan to implement— 
(i) the reasons for the decision not to 
implement such recommendation; and 
(ii) a summary of any alternative ac-
tions the Secretary plans to take to ad-
dress the purposes underlying such rec-
ommendation.
604 
(C) For each recommendation that would 
require legislation to implement, the Secretary’s 
recommendations regarding such legislation. 
(c) COMPTROLLER
GENERAL
REPORT.—Section 
854(c) of the John Warner National Defense Authoriza-
tion Act for Fiscal Year 2007 (Public Law 109–364; 120 
Stat. 2346) is amended by adding at the end the following 
new paragraph: 
‘‘(3) COMPTROLLER
GENERAL
REPORT.—Not 
later than 180 days after the date on which the Sec-
retary of Defense submits the final report required 
by paragraph (2), the Comptroller General of the 
United States shall— 
‘‘(A) review the joint policies developed by 
the Secretary, including the implementation of 
such policies; and 
‘‘(B) submit to the Committees on Armed 
Services of the Senate and the House of Rep-
resentatives a report on the extent to which 
such policies, and the implementation of such 
policies, comply with the requirements of sec-
tion 2333 of title 10, United States Code (as so 
amended).’’.
605 
Subtitle E—Acquisition Workforce 
Provisions 
SEC. 851. REQUIREMENT FOR SECTION ON DEFENSE AC-
QUISITION 
WORKFORCE 
IN 
STRATEGIC 
HUMAN CAPITAL PLAN. 
(a) IN GENERAL.—In the update of the strategic 
human capital plan for 2008, and in each subsequent up-
date, the Secretary of Defense shall include a separate sec-
tion focused on the defense acquisition workforce, includ-
ing both military and civilian personnel. 
(b) FUNDING.—The section shall contain— 
(1) an identification of the funding programmed 
for defense acquisition workforce improvements, in-
cluding a specific identification of funding provided 
in the Department of Defense Acquisition Workforce 
Fund established under section 1705 of title 10, 
United States Code (as added by section 852 of this 
Act); 
(2) an identification of the funding programmed 
for defense acquisition workforce training in the fu-
ture-years defense program, including a specific 
identification of funding provided by the acquisition 
workforce training fund established under section 
37(h)(3) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 433(h)(3));
606 
(3) a description of how the funding identified 
pursuant to paragraphs (1) and (2) will be imple-
mented during the fiscal year concerned to address 
the areas of need identified in accordance with sub-
section (c); 
(4) a statement of whether the funding identi-
fied under paragraphs (1) and (2) is being fully 
used; and 
(5) a description of any continuing shortfall in 
funding available for the defense acquisition work-
force. 
(c) AREAS OF NEED.—The section also shall identify 
any areas of need in the defense acquisition workforce, in-
cluding— 
(1) gaps in the skills and competencies of the 
current or projected defense acquisition workforce; 
(2) changes to the types of skills needed in the 
current or projected defense acquisition workforce; 
(3) incentives to retain in the defense acquisi-
tion workforce qualified, experienced defense acquisi-
tion workforce personnel; and 
(4) incentives for attracting new, high-quality 
personnel to the defense acquisition workforce. 
(d) STRATEGIC HUMAN CAPITAL PLAN DEFINED.— 
In this section, the term ‘‘strategic human capital plan’’
607 
means the strategic human capital plan required under 
section 1122 of the National Defense Authorization Act 
for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 
3452; 10 U.S.C. prec. 1580 note). 
SEC. 852. DEPARTMENT OF DEFENSE ACQUISITION WORK-
FORCE DEVELOPMENT FUND. 
(a) IN GENERAL.— 
(1) ESTABLISHMENT OF FUND.—Chapter 87 of 
title 10, United States Code, is amended by insert-
ing after section 1704 the following new section: 
‘‘§ 1705. Department of Defense Acquisition Work-
force Development Fund 
‘‘(a) ESTABLISHMENT.—The Secretary of Defense 
shall establish a fund to be known as the ‘Department of 
Defense Acquisition Workforce Fund’ (in this section re-
ferred to as the ‘Fund’) to provide funds, in addition to 
other funds that may be available, for the recruitment, 
training, and retention of acquisition personnel of the De-
partment of Defense. 
‘‘(b) PURPOSE.—The purpose of the Fund is to en-
sure that the Department of Defense acquisition work-
force has the capacity, in both personnel and skills, needed 
to properly perform its mission, provide appropriate over-
sight of contractor performance, and ensure that the De-
608 
partment receives the best value for the expenditure of 
public resources. 
‘‘(c) MANAGEMENT.—The Fund shall be managed by 
a senior official of the Department of Defense designated 
by the Under Secretary of Defense for Acquisition, Tech-
nology, and Logistics for that purpose, from among per-
sons with an extensive background in management relat-
ing to acquisition and personnel. 
‘‘(d) ELEMENTS.— 
‘‘(1) IN GENERAL.—The Fund shall consist of 
amounts as follows: 
‘‘(A) Amounts credited to the Fund under 
paragraph (2). 
‘‘(B) Any other amounts appropriated to, 
credited to, or deposited into the Fund by law. 
‘‘(2) CREDITS TO THE FUND.—(A) There shall 
be credited to the Fund an amount equal to the ap-
plicable percentage for a fiscal year of all amounts 
expended by the Department of Defense in such fis-
cal year for contract services, other than services re-
lating to research and development and services re-
lating to military construction. 
‘‘(B) Not later than 30 days after the end of 
the third fiscal year quarter of fiscal year 2008, and 
30 days after the end of each fiscal year quarter
609 
thereafter, the head of each military department and 
Defense Agency shall remit to the Secretary of De-
fense an amount equal to the applicable percentage 
for such fiscal year of the amount expended by such 
military department or Defense Agency, as the case 
may be, during such fiscal year quarter for services 
covered by subparagraph (A). Any amount so remit-
ted shall be credited to the Fund under subpara-
graph (A). 
‘‘(C) For purposes of this paragraph, the appli-
cable percentage for a fiscal year is a percentage as 
follows: 
‘‘(i) For fiscal year 2008, 0.5 percent. 
‘‘(ii) For fiscal year 2009, 1 percent. 
‘‘(iii) For fiscal year 2010, 1.5 percent. 
‘‘(iv) For any fiscal year after fiscal year 
2010, 2 percent. 
‘‘(D) The Secretary of Defense may reduce a 
percentage established in subparagraph (C) for any 
fiscal year, if he determines that the application of 
such percentage would result in the crediting of an 
amount greater than is reasonably needed for the 
purpose of the Fund. In no event may the Secretary 
reduce a percentage for any fiscal year below a per-
610 
centage that results in the deposit in a fiscal year 
of an amount equal to the following: 
‘‘(i) For fiscal year 2008, $300,000,000. 
‘‘(ii) For fiscal year 2009, $400,000,000. 
‘‘(iii) For fiscal year 2010, $500,000,000. 
‘‘(iv) For any fiscal year after fiscal year 
2010, $600,000,000. 
‘‘(e) AVAILABILITY OF FUNDS.— 
‘‘(1) IN GENERAL.—Subject to the provisions of 
this subsection, amounts in the Fund shall be avail-
able to the Secretary of Defense for expenditure, or 
for transfer to a military department or Defense 
Agency, for the recruitment, training, and retention 
of acquisition personnel of the Department of De-
fense for the purpose of the Fund, including for the 
provision of training and retention incentives to the 
acquisition workforce of the Department. 
‘‘(2) PROHIBITION.—Amounts in the Fund may 
not be obligated for any purpose other than pur-
poses described in paragraph (1) or otherwise in ac-
cordance with this subsection. 
‘‘(3) GUIDANCE.—The Under Secretary of De-
fense for Acquisition, Technology, and Logistics, act-
ing through the senior official designated to manage 
the Fund, shall issue guidance for the administra-
611 
tion of the Fund. Such guidance shall include provi-
sions— 
‘‘(A) identifying areas of need in the acqui-
sition workforce for which amounts in the Fund 
may be used, including— 
‘‘(i) changes to the types of skills 
needed in the acquisition workforce; 
‘‘(ii) incentives to retain in the acqui-
sition workforce qualified, experienced ac-
quisition workforce personnel; and 
‘‘(iii) incentives for attracting new, 
high-quality personnel to the acquisition 
workforce; 
‘‘(B) describing the manner and timing for 
applications for amounts in the Fund to be sub-
mitted; 
‘‘(C) describing the evaluation criteria to 
be used for approving or prioritizing applica-
tions for amounts in the Fund in any fiscal 
year; and 
‘‘(D) describing measurable objectives of 
performance for determining whether amounts 
in the Fund are being used in compliance with 
this section.
612 
‘‘(4) LIMITATION
ON
PAYMENTS
TO
OR
FOR 
CONTRACTORS.—Amounts in the Fund shall not be 
available for payments to contractors or contractor 
employees, other than for the purpose of providing 
advanced training to Department of Defense employ-
ees. 
‘‘(5) PROHIBITION ON PAYMENT OF BASE SAL-
ARY
OF
CURRENT
EMPLOYEES.—Amounts in the 
Fund may not be used to pay the base salary of any 
person who was an employee of the Department as 
of the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 2008. 
‘‘(6) DURATION
OF
AVAILABILITY.—Amounts 
credited to the Fund under subsection (d)(2) shall 
remain available for expenditure in the fiscal year 
for which credited and the two succeeding fiscal 
years. 
‘‘(f) ANNUAL REPORT.—Not later than 60 days after 
the end of each fiscal year beginning with fiscal year 2008, 
the Secretary of Defense shall submit to the congressional 
defense committees a report on the operation of the Fund 
during such fiscal year. Each report shall include, for the 
fiscal year covered by such report, the following: 
‘‘(1) A statement of the amounts remitted to 
the Secretary for crediting to the Fund for such fis-
613 
cal year by each military department and Defense 
Agency, and a statement of the amounts credited to 
the Fund for such fiscal year. 
‘‘(2) A description of the expenditures made 
from the Fund (including expenditures following a 
transfer of amounts in the Fund to a military de-
partment or Defense Agency) in such fiscal year, in-
cluding the purpose of such expenditures. 
‘‘(3) A description and assessment of improve-
ments in the Department of Defense acquisition 
workforce resulting from such expenditures. 
‘‘(4) Recommendations for additional authori-
ties to fulfill the purpose of the Fund. 
‘‘(5) A statement of the balance remaining in 
the Fund at the end of such fiscal year. 
‘‘(g) ACQUISITION WORKFORCE DEFINED.—In this 
section, the term ‘acquisition workforce’ means personnel 
in positions designated under section 1721 of this title as 
acquisition positions for purposes of this chapter.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of subchapter I of such chap-
ter is amended by inserting after the item relating 
to section 1704 the following new item: 
‘‘1705. Department of Defense Acquisition Workforce Development Fund.’’.
614 
(b) EFFECTIVE DATE.—Section 1705 of title 10, 
United States Code, as added by subsection (a), shall take 
effect on the date of the enactment of this Act. 
SEC. 853. EXTENSION OF AUTHORITY TO FILL SHORTAGE 
CATEGORY POSITIONS FOR CERTAIN FED-
ERAL ACQUISITION POSITIONS. 
Section 1413(b) of the National Defense Authoriza-
tion Act for Fiscal Year 2004 (Public Law 108–136; 117 
Stat. 1665) is amended by striking ‘‘September 30, 2007’’ 
and inserting ‘‘September 30, 2012’’. 
SEC. 854. REPEAL OF SUNSET OF ACQUISITION WORK-
FORCE TRAINING FUND. 
Section 37(h)(3) of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 433(h)(3)) is amended by 
striking subparagraph (H). 
SEC. 855. FEDERAL ACQUISITION WORKFORCE IMPROVE-
MENTS. 
(a) ASSOCIATE ADMINISTRATOR FOR ACQUISITION 
WORKFORCE PROGRAMS.—The Administrator for Federal 
Procurement Policy shall designate a member of the Sen-
ior Executive Service as the Associate Administrator for 
Acquisition Workforce Programs. The Associate Adminis-
trator for Acquisition Workforce Programs shall be lo-
cated in the Federal Acquisition Institute (or its suc-
615 
cessor). The Associate Administrator shall be responsible 
for— 
(1) supervising the acquisition workforce train-
ing fund established under section 37(h)(3) of the 
Office of Federal Procurement Policy Act (41 U. S. 
C. 433(h)(3)); 
(2) developing, in coordination with Chief Ac-
quisition Officers and Chief Human Capital Officers, 
a strategic human capital plan for the acquisition 
workforce of the Federal Government; 
(3) reviewing and providing input to individual 
agency acquisition workforce succession plans; 
(4) recommending to the Administrator and 
other senior government officials appropriate pro-
grams, policies, and practices to increase the quan-
tity and quality of the Federal acquisition workforce; 
and 
(5) carrying out such other functions as the Ad-
ministrator may assign. 
(b) ACQUISITION AND CONTRACTING TRAINING PRO-
GRAMS WITHIN EXECUTIVE AGENCIES.— 
(1) REQUIREMENT.—The head of each execu-
tive agency, after consultation with the Associate 
Administrator for Acquisition Workforce Programs,
616 
shall establish and operate acquisition and con-
tracting training programs. Such programs shall— 
(A) have curricula covering a broad range 
of acquisition and contracting disciplines cor-
responding to the specific acquisition and con-
tracting needs of the agency involved; 
(B) be developed and applied according to 
rigorous standards; and 
(C) be designed to maximize efficiency, 
through the use of self-paced courses, online 
courses, on-the-job training, and the use of re-
mote instructors, wherever such features can be 
applied without reducing the effectiveness of the 
training or negatively affecting academic stand-
ards. 
(2) CHIEF ACQUISITION OFFICER AUTHORITIES 
AND RESPONSIBILITIES.—Subject to the authority, 
direction, and control of the head of an executive 
agency, the Chief Acquisition Officer for such agen-
cy shall carry out all powers, functions, and duties 
of the head of the agency with respect to implemen-
tation of this subsection. The Chief Acquisition Offi-
cer shall ensure that the policies established by the 
head of the agency in accordance with this sub-
section are implemented throughout the agency.
618 
human capital plan for the recruitment, develop-
ment, and retention of the agency’s acquisition 
workforce, with a particular focus on warranted con-
tracting officers and program managers of the agen-
cy. 
(2) CONTENT OF PLAN.—The acquisition work-
force succession plan shall address— 
(A) recruitment goals for personnel from 
procurement intern programs; 
(B) the agency’s acquisition workforce 
training needs; 
(C) actions to retain high performing ac-
quisition professionals who possess critical rel-
evant skills; 
(D) recruitment goals for personnel from 
the Federal Career Intern Program; and 
(E) recruitment goals for personnel from 
the Presidential Management Fellows Program. 
(f) TRAINING IN THE ACQUISITION OF ARCHITECT 
AND ENGINEERING SERVICES.—The Administrator for 
Federal Procurement Policy shall ensure that a sufficient 
number of Federal employees are trained in the acquisi-
tion of architect and engineering services. 
(g) UTILIZATION OF RECRUITMENT AND RETENTION 
AUTHORITIES.—The Administrator for Federal Procure-
619 
ment Policy, in coordination with the Director of the Of-
fice of Personnel Management, shall encourage executive 
agencies to utilize existing authorities, including direct 
hire authority and tuition assistance programs, to recruit 
and retain acquisition personnel and consider recruiting 
acquisition personnel who may be retiring from the private 
sector, consistent with existing laws and regulations. 
(h) DEFINITIONS.—In this section: 
(1) EXECUTIVE AGENCY.—The term ‘‘executive 
agency’’ has the meaning provided in section 4(1) of 
the Office of Federal Procurement Policy Act (41 
U.S.C. 403(1)). 
(2) CHIEF ACQUISITION OFFICER.—The term 
‘‘Chief Acquisition Officer’’ means a Chief Acquisi-
tion Officer for an executive agency appointed pur-
suant to section 16 of the Office of Federal Procure-
ment Policy Act (41 U.S.C. 414). 
Subtitle F—Contracts in Iraq and 
Afghanistan 
SEC. 861. MEMORANDUM OF UNDERSTANDING ON MAT-
TERS RELATING TO CONTRACTING. 
(a) 
MEMORANDUM
OF
UNDERSTANDING
RE-
QUIRED.—The Secretary of Defense, the Secretary of 
State, and the Administrator of the United States Agency 
for International Development shall, not later than July
620 
1, 2008, enter into a memorandum of understanding re-
garding matters relating to contracting for contracts in 
Iraq or Afghanistan. 
(b) MATTERS COVERED.—The memorandum of un-
derstanding required by subsection (a) shall address, at 
a minimum, the following: 
(1) Identification of the major categories of 
contracts in Iraq or Afghanistan being awarded by 
the Department of Defense, the Department of 
State, or the United States Agency for International 
Development. 
(2) Identification of the roles and responsibil-
ities of each department or agency for matters relat-
ing to contracting for contracts in Iraq or Afghani-
stan. 
(3) Responsibility for establishing procedures 
for, and the coordination of, movement of contractor 
personnel in Iraq or Afghanistan. 
(4) Identification of common databases that will 
serve as repositories of information on contracts in 
Iraq or Afghanistan and contractor personnel in 
Iraq or Afghanistan, including agreement on the ele-
ments to be included in the databases, including, at 
a minimum— 
(A) with respect to each contract—
621 
(i) a brief description of the contract 
(to the extent consistent with security con-
siderations); 
(ii) the total value of the contract; 
and 
(iii) whether the contract was awarded 
competitively; and 
(B) with respect to contractor personnel— 
(i) the total number of personnel em-
ployed on contracts in Iraq or Afghanistan; 
(ii) the total number of personnel per-
forming security functions under contracts 
in Iraq or Afghanistan; and 
(iii) the total number of personnel 
working under contracts in Iraq or Af-
ghanistan who have been killed or wound-
ed. 
(5) Responsibility for maintaining and updating 
information in the common databases identified 
under paragraph (4). 
(6) Responsibility for the collection and referral 
to the appropriate Government agency of any infor-
mation relating to offenses under chapter 47 of title 
10, United States Code (the Uniform Code of Mili-
tary Justice) or chapter 212 of title 18, United
622 
States Code (commonly referred to as the Military 
Extraterritorial Jurisdiction Act), including a clari-
fication of responsibilities under section 802(a)(10) 
of title 10, United States Code (article 2(a) of the 
Uniform Code of Military Justice), as amended by 
section 552 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 
109–364). 
(c) IMPLEMENTATION OF MEMORANDUM OF UNDER-
STANDING.—Not later than 120 days after the memo-
randum of understanding required by subsection (a) is 
signed, the Secretary of Defense, the Secretary of State, 
and the Administrator of the United States Agency for 
International Development shall issue such policies or 
guidance and prescribe such regulations as are necessary 
to implement the memorandum of understanding for the 
relevant matters pertaining to their respective agencies. 
(d) COPIES PROVIDED TO CONGRESS.— 
(1) MEMORANDUM OF UNDERSTANDING.—Cop-
ies of the memorandum of understanding required 
by subsection (a) shall be provided to the relevant 
committees of Congress within 30 days after the 
memorandum is signed. 
(2) REPORT ON IMPLEMENTATION.—Not later 
than 180 days after the memorandum of under-
623 
standing required by subsection (a) is signed, the 
Secretary of Defense, the Secretary of State, and 
the Administrator of the United States Agency for 
International Development shall each provide a re-
port to the relevant committees of Congress on the 
implementation of the memorandum of under-
standing. 
(3) DATABASES.—The Secretary of Defense, 
the Secretary of State, or the Administrator of the 
United States Agency for International Development 
shall provide access to the common databases identi-
fied under subsection (b)(4) to the relevant commit-
tees of Congress. 
(4) CONTRACTS.—Effective on the date of the 
enactment of this Act, copies of any contracts in 
Iraq or Afghanistan awarded after December 1, 
2007, shall be provided to any of the relevant com-
mittees of Congress within 15 days after the submis-
sion of a request for such contract or contracts from 
such committee to the department or agency man-
aging the contract.
625 
performing private security functions in an area 
of combat operations; 
(D) a process under which contractors are 
required to report all incidents, and persons 
other than contractors are permitted to report 
incidents, in which— 
(i) a weapon is discharged by per-
sonnel performing private security func-
tions in an area of combat operations; 
(ii) personnel performing private secu-
rity functions in an area of combat oper-
ations are killed or injured; or 
(iii) persons are killed or injured, or 
property is destroyed, as a result of con-
duct by contractor personnel; 
(E) a process for the independent review 
and, if practicable, investigation of— 
(i) incidents reported pursuant to sub-
paragraph (D); and 
(ii) incidents of alleged misconduct by 
personnel performing private security func-
tions in an area of combat operations; 
(F) requirements for qualification, train-
ing, screening (including, if practicable, through 
background checks), and security for personnel
626 
performing private security functions in an area 
of combat operations; 
(G) guidance to the commanders of the 
combatant commands on the issuance of— 
(i) orders, directives, and instructions 
to contractors performing private security 
functions relating to equipment, force pro-
tection, security, health, safety, or relations 
and interaction with locals; 
(ii) predeployment training require-
ments for personnel performing private se-
curity functions in an area of combat oper-
ations, addressing the requirements of this 
section, resources and assistance available 
to contractor personnel, country informa-
tion and cultural training, and guidance on 
working with host country nationals and 
military; and 
(iii) rules on the use of force for per-
sonnel performing private security func-
tions in an area of combat operations; 
(H) a process by which a commander of a 
combatant command may request an action de-
scribed in subsection (b)(3); and
627 
(I) a process by which the training require-
ments referred to in subparagraph (G)(ii) shall 
be implemented. 
(3) AVAILABILITY
OF
ORDERS, DIRECTIVES, 
AND
INSTRUCTIONS.—The regulations prescribed 
under subsection (a) shall include mechanisms to en-
sure the provision and availability of the orders, di-
rectives, and instructions referred to in paragraph 
(2)(G)(i) to contractors referred to in that para-
graph, including through the maintenance of a single 
location (including an Internet website, to the extent 
consistent with security considerations) at or 
through which such contractors may access such or-
ders, directives, and instructions. 
(b) CONTRACT CLAUSE
ON CONTRACTORS PER-
FORMING PRIVATE SECURITY FUNCTIONS.— 
(1) REQUIREMENT
UNDER
FAR.—Not later 
than 180 days after the date of the enactment of 
this Act, the Federal Acquisition Regulation issued 
in accordance with section 25 of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 421) shall 
be revised to require the insertion into each covered 
contract (or, in the case of a task order, the contract 
under which the task order is issued) of a contract 
clause addressing the selection, training, equipping,
628 
and conduct of personnel performing private security 
functions under such contract. 
(2) 
CLAUSE
REQUIREMENT.—The 
contract 
clause required by paragraph (1) shall require, at a 
minimum, that the contractor concerned shall— 
(A) comply with regulations prescribed 
under subsection (a), including any revisions or 
updates to such regulations, and follow the pro-
cedures established in such regulations for— 
(i) registering, processing, accounting 
for, and keeping appropriate records of 
personnel performing private security func-
tions in an area of combat operations; 
(ii) authorizing and accounting of 
weapons to be carried by, or available to be 
used by, personnel performing private se-
curity functions in an area of combat oper-
ations; 
(iii) registration and identification of 
armored vehicles, helicopters, and other 
military vehicles operated by contractors 
and subcontractors performing private se-
curity functions in an area of combat oper-
ations; and
629 
(iv) the reporting of incidents in 
which— 
(I) a weapon is discharged by 
personnel performing private security 
functions in an area of combat oper-
ations; 
(II) personnel performing private 
security functions in an area of com-
bat operations are killed or injured; or 
(III) persons are killed or in-
jured, or property is destroyed, as a 
result of conduct by contractor per-
sonnel; 
(B) ensure that all personnel performing 
private security functions under such contract 
are briefed on and understand their obligation 
to comply with— 
(i) qualification, training, screening 
(including, if practicable, through back-
ground checks), and security requirements 
established by the Secretary of Defense for 
personnel performing private security func-
tions in an area of combat operations; 
(ii) applicable laws and regulations of 
the United States and the host country,
630 
and applicable treaties and international 
agreements, regarding the performance of 
the functions of the contractor; 
(iii) orders, directives, and instruc-
tions issued by the applicable commander 
of a combatant command relating to equip-
ment, force protection, security, health, 
safety, or relations and interaction with 
locals; and 
(iv) rules on the use of force issued by 
the applicable commander of a combatant 
command for personnel performing private 
security functions in an area of combat op-
erations; and 
(C) cooperate with any investigation con-
ducted by the Department of Defense pursuant 
to subsection (a)(2)(E) by providing access to 
employees of the contractor and relevant infor-
mation in the possession of the contractor re-
garding the incident concerned. 
(3) NONCOMPLIANCE
OF
PERSONNEL
WITH 
CLAUSE.—The contracting officer for a covered con-
tract may direct the contractor, at its own expense, 
to remove or replace any personnel performing pri-
vate security functions in an area of combat oper-
631 
ations who violate or fail to comply with applicable 
requirements of the clause required by this sub-
section. If the violation or failure to comply is a 
gross violation or failure or is repeated, the contract 
may be terminated for default. 
(4) APPLICABILITY.—The contract clause re-
quired by this subsection shall be included in all cov-
ered contracts awarded on or after the date that is 
180 days after the date of the enactment of this Act. 
Federal agencies shall make best efforts to provide 
for the inclusion of the contract clause required by 
this subsection in covered contracts awarded before 
such date. 
(5) INSPECTOR
GENERAL
REPORT
ON
PILOT 
PROGRAM
ON
IMPOSITION
OF
FINES
FOR
NON-
COMPLIANCE
OF
PERSONNEL
WITH
CLAUSE.—Not 
later than March 30, 2008, the Inspector General of 
the Department of Defense shall submit to Congress 
a report assessing the feasibility and advisability of 
carrying out a pilot program for the imposition of 
fines on contractors for personnel who violate or fail 
to comply with applicable requirements of the clause 
required by this section as a mechanism for enhanc-
ing the compliance of such personnel with the clause. 
The report shall include—
632 
(A) an assessment of the feasibility and 
advisability of carrying out the pilot program; 
and 
(B) if the Inspector General determines 
that carrying out the pilot program is feasible 
and advisable— 
(i) recommendations on the range of 
contracts and subcontracts to which the 
pilot program should apply; and 
(ii) a schedule of fines to be imposed 
under the pilot program for various types 
of personnel actions or failures. 
(c) AREAS OF COMBAT OPERATIONS.— 
(1) DESIGNATION.—The Secretary of Defense 
shall designate the areas constituting an area of 
combat operations for purposes of this section by not 
later than 120 days after the date of the enactment 
of this Act. 
(2) PARTICULAR AREAS.—Iraq and Afghanistan 
shall be included in the areas designated as an area 
of combat operations under paragraph (1). 
(3) ADDITIONAL AREAS.—The Secretary may 
designate any additional area as an area constituting 
an area of combat operations for purposes of this 
section if the Secretary determines that the presence
633 
or potential of combat operations in such area war-
rants designation of such area as an area of combat 
operations for purposes of this section. 
(4) MODIFICATION OR ELIMINATION OF DES-
IGNATION.—The Secretary may modify or cease the 
designation of an area under this subsection as an 
area of combat operations if the Secretary deter-
mines that combat operations are no longer ongoing 
in such area. 
(d) EXCEPTION.—The requirements of this section 
shall not apply to contracts entered into by elements of 
the intelligence community in support of intelligence ac-
tivities. 
SEC. 863. COMPTROLLER GENERAL REVIEWS AND RE-
PORTS ON CONTRACTING IN IRAQ AND AF-
GHANISTAN. 
(a) REVIEWS AND REPORTS REQUIRED.— 
(1) IN
GENERAL.—Every 12 months, the 
Comptroller General shall review contracts in Iraq or 
Afghanistan and submit to the relevant committees 
of Congress a report on such review. 
(2) MATTERS COVERED.—A report under this 
subsection shall cover the following with respect to 
the contracts in Iraq or Afghanistan reviewed for the 
report:
634 
(A) Total number of contracts and task or-
ders awarded during the period covered by the 
report. 
(B) Total number of active contracts and 
task orders. 
(C) Total value of all contracts and task 
orders awarded during the reporting period. 
(D) Total value of active contracts and 
task orders. 
(E) The extent to which such contracts 
have used competitive procedures. 
(F) Total number of contractor personnel 
working on contracts during the reporting pe-
riod. 
(G) Total number of contractor personnel, 
on average, who are performing security func-
tions during the reporting period. 
(H) The number of contractor personnel 
killed or wounded during the reporting period. 
(I) Information on any specific contract or 
class of contracts that the Comptroller General 
determines raises issues of significant concern. 
(3) SUBMISSION
OF
REPORTS.—The Comp-
troller General shall submit an initial report under 
this subsection not later than October 1, 2008, and
635 
shall submit an updated report every year thereafter 
until October 1, 2010. 
(b) ACCESS TO DATABASES ON CONTRACTS.—The 
Secretary of Defense and the Secretary of State shall pro-
vide full access to the databases described in section 
861(b)(4) to the Comptroller General for purposes of the 
reviews carried out under this section. 
SEC. 864. DEFINITIONS AND OTHER GENERAL PROVISIONS. 
(a) DEFINITIONS.—In this subtitle: 
(1) MATTERS
RELATING
TO
CONTRACTING.— 
The term ‘‘matters relating to contracting’’, with re-
spect to contracts in Iraq and Afghanistan, means 
all matters relating to awarding, funding, managing, 
tracking, monitoring, and providing oversight to con-
tracts and contractor personnel. 
(2) CONTRACT IN IRAQ OR AFGHANISTAN.—The 
term ‘‘contract in Iraq or Afghanistan’’ means a 
contract with the Department of Defense, the De-
partment of State, or the United States Agency for 
International Development, a subcontract at any tier 
issued under such a contract, or a task order or de-
livery order at any tier issued under such a contract 
(including a contract, subcontract, or task order or 
delivery order issued by another Government agency 
for the Department of Defense, the Department of
636 
State, or the United States Agency for International 
Development), if the contract, subcontract, or task 
order or delivery order involves worked performed in 
Iraq or Afghanistan for a period longer than 14 
days. 
(3) COVERED CONTRACT.—The term ‘‘covered 
contract’’ means— 
(A) a contract of a Federal agency for the 
performance of services in an area of combat 
operations, as designated by the Secretary of 
Defense under subsection (c) of section 862; 
(B) a subcontract at any tier under such 
a contract; or 
(C) a task order or delivery order issued 
under such a contract or subcontract. 
(4) CONTRACTOR.—The term ‘‘contractor’’, 
with respect to a covered contract, means the con-
tractor or subcontractor carrying out the covered 
contract. 
(5) PRIVATE SECURITY FUNCTIONS.—The term 
‘‘private security functions’’ means activities en-
gaged in by a contractor under a covered contract as 
follows:
637 
(A) Guarding of personnel, facilities, or 
property of a Federal agency, the contractor or 
subcontractor, or a third party. 
(B) Any other activity for which personnel 
are required to carry weapons in the perform-
ance of their duties. 
(6) RELEVANT COMMITTEES OF CONGRESS.— 
The term ‘‘relevant committees of Congress’’ means 
each of the following committees: 
(A) The Committees on Armed Services of 
the Senate and the House of Representatives. 
(B) The Committee on Homeland Security 
and Governmental Affairs of the Senate and the 
Committee on Oversight and Government Re-
form of the House of Representatives. 
(C) The Committee on Foreign Relations 
of the Senate and the Committee on Foreign 
Affairs of the House of Representatives. 
(D) For purposes of contracts relating to 
the National Foreign Intelligence Program, the 
Select Committee on Intelligence of the Senate 
and the Permanent Select Committee on Intel-
ligence of the House of Representatives. 
(b) CLASSIFIED INFORMATION.—Nothing in this sub-
title shall be interpreted to require the handling of classi-
638 
fied information or information relating to intelligence 
sources and methods in a manner inconsistent with any 
law, regulation, executive order, or rule of the House of 
Representatives or of the Senate relating to the handling 
or protection of such information. 
Subtitle G—Defense Materiel 
Readiness Board 
SEC. 871. ESTABLISHMENT OF DEFENSE MATERIEL READI-
NESS BOARD. 
(a) ESTABLISHMENT.—Not later than 6 months after 
the date of the enactment of this Act, the Secretary of 
Defense shall establish a Defense Materiel Readiness 
Board (in this subtitle referred to as the ‘‘Board’’) within 
the Office of the Secretary of Defense. 
(b) MEMBERSHIP.—The Secretary shall appoint the 
chairman and the members of the Board from among offi-
cers of the Armed Forces with expertise in matters rel-
evant to the function of the Board to assess materiel readi-
ness and evaluate plans and policies relating to materiel 
readiness. At a minimum, the Board shall include rep-
resentatives of the Joint Chiefs of Staff, each of the 
Armed Forces, and each of the reserve components of the 
Armed Forces. 
(c) STAFF.—The Secretary of Defense shall assign 
staff, and request the Secretaries of the military depart-
639 
ments to assign staff, as necessary to assist the Board 
in carrying out its duties. 
(d) FUNCTIONS.—The Board shall provide inde-
pendent assessments of materiel readiness, materiel readi-
ness shortfalls, and materiel readiness plans to the Sec-
retary of Defense and the Congress. To carry out such 
functions, the Board shall— 
(1) monitor and assess the materiel readiness of 
the Armed Forces; 
(2) assist the Secretary of Defense in the iden-
tification of deficiencies in the materiel readiness of 
the Armed Forces caused by shortfalls in weapons 
systems, equipment, and supplies; 
(3) identify shortfalls in materiel readiness, in-
cluding critical materiel readiness shortfalls, for pur-
poses of the Secretary’s designations under section 
872 and the funding needed to address such short-
falls; 
(4) assess the adequacy of current Department 
of Defense plans, policies, and programs to address 
shortfalls in materiel readiness, including critical 
materiel readiness shortfalls (as designated by the 
Secretary under section 872), and to sustain and im-
prove materiel readiness;
640 
(5) assist the Secretary of Defense in deter-
mining whether the industrial capacity of the De-
partment of Defense and of the defense industrial 
base is being best utilized to support the materiel 
readiness needs of the Armed Forces; 
(6) review and assess Department of Defense 
systems for measuring the status of current materiel 
readiness of the Armed Forces; and 
(7) make recommendations with respect to ma-
teriel readiness funding, measurement techniques, 
plans, policies, and programs. 
(e) REPORTS.—The Board shall submit to the Sec-
retary of Defense a report summarizing its findings and 
recommendations not less than once every six months. 
Within 30 days after receiving a report from the Board, 
the Secretary shall forward the report in its entirety, to-
gether with his comments, to the congressional defense 
committees. The report shall be submitted in unclassified 
form. To the extent necessary, the report may be accom-
panied by a classified annex. 
SEC. 872. CRITICAL MATERIEL READINESS SHORTFALLS. 
(a) DESIGNATION OF CRITICAL MATERIEL READI-
NESS SHORTFALLS.— 
(1) DESIGNATION.—The Secretary of Defense 
may designate any requirement of the Armed Forces
641 
for equipment or supplies as a critical materiel read-
iness shortfall if there is a shortfall in the required 
equipment or supplies that materially reduces readi-
ness of the Armed Forces and that— 
(A) cannot be adequately addressed by 
identifying acceptable substitute capabilities or 
cross leveling of equipment that does not unac-
ceptably reduce the readiness of other Armed 
Forces; and 
(B) that is likely to persist for more than 
two years based on currently projected budgets 
and schedules for deliveries of equipment and 
supplies. 
(2) CONSIDERATION OF BOARD FINDINGS AND 
RECOMMENDATIONS.—In making any such designa-
tion, the Secretary shall take into consideration the 
findings and recommendations of the Defense Mate-
riel Readiness Board. 
(b) MEASURES TO ADDRESS CRITICAL MATERIEL 
READINESS SHORTFALLS.—The Secretary of Defense 
shall ensure that critical materiel readiness shortfalls des-
ignated pursuant to subsection (a)(1) are transmitted to 
the relevant officials of the Department of Defense respon-
sible for requirements, budgets, and acquisition, and that
642 
such officials prioritize and address such shortfalls in the 
shortest time frame practicable. 
(c) TRANSFER AUTHORITY.— 
(1) IN GENERAL.—The amounts of authoriza-
tions that the Secretary may transfer under the au-
thority of section 1001 of this Act is hereby in-
creased by $2,000,000,000. 
(2) LIMITATIONS.—The additional transfer au-
thority provided by this section— 
(A) may be made only from authorizations 
to the Department of Defense for fiscal year 
2008; 
(B) may be exercised solely for the purpose 
of addressing critical materiel readiness short-
falls as designated by the Secretary of Defense 
under subsection (a); and 
(C) is subject to the same terms, condi-
tions, and procedures as other transfer author-
ity under section 1001 of this Act. 
(d) STRATEGIC READINESS FUND.— 
(1) ESTABLISHMENT.—There is established on 
the books of the Treasury a fund to be known as the 
Department of Defense Strategic Readiness Fund 
(in this subsection referred to as the ‘‘Fund’’), which
643 
shall be administered by the Secretary of the Treas-
ury. 
(2) PURPOSES.—The Fund shall be used to ad-
dress critical materiel readiness shortfalls as des-
ignated by the Secretary of Defense under sub-
section (a). 
(3) ASSETS OF FUND.—There shall be depos-
ited into the Fund any amount appropriated to the 
Fund, which shall constitute the assets of the Fund. 
(4) LIMITATION.—The procurement unit cost 
(as defined in section 2432(a) of title 10, United 
States Code) of any item purchased using assets of 
the Fund, whether such assets are in the Fund or 
after such assets have been transferred from the 
Fund using the authority provided in subsection (c), 
shall not exceed $30,000,000. 
(e) MULTIYEAR CONTRACT NOTIFICATION.— 
(1) NOTIFICATION.—If the Secretary of a mili-
tary department makes the determination described 
in paragraph (2) with respect to the use of a 
multiyear contract, the Secretary shall notify the 
congressional defense committees within 30 days of 
the determination and provide a detailed description 
of the proposed multiyear contract.
644 
(2) DETERMINATION.—The determination re-
ferred to in paragraph (1) is a determination by the 
Secretary of a military department that the use of 
a multiyear contract to procure an item to address 
a critical materiel readiness shortfall— 
(A) will significantly accelerate efforts to 
address a critical materiel readiness shortfall; 
(B) will provide savings compared to the 
total anticipated costs of carrying out the con-
tract through annual contracts; and 
(C) will serve the interest of national secu-
rity. 
(f) DEFINITION.—In this section, the term ‘‘critical 
materiel readiness shortfall’’ means a critical materiel 
readiness shortfall designated by the Secretary of Defense 
under this section. 
Subtitle H—Other Matters 
SEC. 881. CLEARINGHOUSE FOR RAPID IDENTIFICATION 
AND DISSEMINATION OF COMMERCIAL IN-
FORMATION TECHNOLOGIES. 
(a) 
REQUIREMENT
TO
ESTABLISH
CLEARING-
HOUSE.—Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense, acting 
through the Assistant Secretary of Defense for Networks 
and Information Integration, shall establish a clearing-
645 
house for identifying, assessing, and disseminating knowl-
edge about readily available information technologies (with 
an emphasis on commercial off-the-shelf information tech-
nologies) that could support the warfighting mission of the 
Department of Defense. 
(b) RESPONSIBILITIES.—The clearinghouse estab-
lished pursuant to subsection (a) shall be responsible for 
the following: 
(1) Developing a process to rapidly assess and 
set priorities and needs for significant information 
technology needs of the Department of Defense that 
could be met by commercial technologies, including 
a process for— 
(A) aligning priorities and needs with the 
requirements of the commanders of the combat-
ant command; and 
(B) proposing recommendations to the 
commanders of the combatant command of fea-
sible technical solutions for further evaluation. 
(2) Identifying and assessing emerging commer-
cial technologies (including commercial off-the-shelf 
technologies) that could support the warfighting mis-
sion of the Department of Defense, including the 
priorities and needs identified pursuant to para-
graph (1).
646 
(3) Disseminating information about commer-
cial technologies identified pursuant to paragraph 
(2) to commanders of combatant commands and 
other potential users of such technologies. 
(4) Identifying gaps in commercial technologies 
and working to stimulate investment in research and 
development in the public and private sectors to ad-
dress those gaps. 
(5) Enhancing internal data and communica-
tions systems of the Department of Defense for 
sharing and retaining information regarding com-
mercial technology priorities and needs, technologies 
available to meet such priorities and needs, and on-
going research and development directed toward 
gaps in such technologies. 
(6) Developing mechanisms, including web- 
based mechanisms, to facilitate communications with 
industry regarding the priorities and needs of the 
Department of Defense identified pursuant to para-
graph (1) and commercial technologies available to 
address such priorities and needs. 
(7) Assisting in the development of guides to 
help small information technology companies with 
promising technologies to understand and navigate
647 
the funding and acquisition processes of the Depart-
ment of Defense. 
(8) Developing methods to measure how well 
processes developed by the clearinghouse are being 
utilized and to collect data on an ongoing basis to 
assess the benefits of commercial technologies that 
are procured on the recommendation of the clearing-
house. 
(c) PERSONNEL.—The Secretary of Defense, acting 
through the Assistant Secretary of Defense for Networks 
and Information Integration, shall provide for the hiring 
and support of employees (including detailees from other 
components of the Department of Defense and from other 
Federal departments or agencies) to assist in identifying, 
assessing, and disseminating information regarding com-
mercial technologies under this section. 
(d) REPORT TO CONGRESS.—Not later than one year 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense com-
mittees a report on the implementation of this section.
648 
SEC. 882. AUTHORITY TO LICENSE CERTAIN MILITARY DES-
IGNATIONS AND LIKENESSES OF WEAPONS 
SYSTEMS TO TOY AND HOBBY MANUFACTUR-
ERS. 
(a) AUTHORITY TO LICENSE CERTAIN ITEMS.—Sec-
tion 2260 of title 10, United States Code, is amended— 
(1) by redesignating subsections (c), (d), and 
(e) as subsections (d), (e), and (f), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) LICENSES FOR QUALIFYING COMPANIES.—(1) 
The Secretary concerned may license trademarks, service 
marks, certification marks, and collective marks owned or 
controlled by the Secretary relating to military designa-
tions 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— 
‘‘(A) is a toy or hobby manufacturer; and 
‘‘(B) is determined by the Secretary concerned 
to be qualified in accordance with such criteria as 
determined appropriate by the Secretary of Defense. 
‘‘(3) The fee for a license under this subsection shall 
not exceed by more than a nominal amount the amount 
needed to recover all costs of the Department of Defense
649 
in processing the request for the license and supplying the 
license. 
‘‘(4) A license to a qualifying company under this 
subsection shall provide that the license may not be trans-
ferred, sold, or relicensed by the qualifying company. 
‘‘(5) A license under this subsection shall not be an 
exclusive license.’’. 
(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. 883. MODIFICATIONS TO LIMITATION ON CONTRACTS 
TO ACQUIRE MILITARY FLIGHT SIMULATOR. 
(a) EFFECT ON EXISTING CONTRACTS.—Section 832 
of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 
2331) is amended by adding at the end the following new 
subsection: 
‘‘(e) EFFECT ON EXISTING CONTRACTS.—The limi-
tation in subsection (a) does not apply to any service con-
tract of a military department to acquire a military flight 
simulator, or to any renewal or extension of, or follow- 
on contract to, such a contract, if— 
‘‘(1) the contract was in effect as of October 
17, 2006;
650 
‘‘(2) the number of flight simulators to be ac-
quired under the contract (or renewal, extension, or 
follow-on) will not result in the total number of 
flight simulators acquired by the military depart-
ment concerned through service contracts to exceed 
the total number of flight simulators to be acquired 
under all service contracts of such department for 
such simulators in effect as of October 17, 2006; 
and 
‘‘(3) in the case of a renewal or extension of, 
or follow-on contract to, the contract, the Secretary 
of the military department concerned provides to the 
congressional defense committees a written notice of 
the decision to exercise an option to renew or extend 
the contract, or to issue a solicitation for bids or 
proposals using competitive procedures for a follow- 
on contract, and an economic analysis as described 
in subsection (c) supporting the decision, at least 30 
days before carrying out such decision.’’. 
(b) CHANGE IN GROUNDS FOR WAIVER.—Section 
832(c)(1) of such Act, as redesignated by subsection (a), 
is amend by striking ‘‘necessary for national security pur-
poses’’ and inserting ‘‘in the national interest’’.
651 
SEC. 884. REQUIREMENTS RELATING TO WAIVERS OF CER-
TAIN DOMESTIC SOURCE LIMITATIONS RE-
LATING TO SPECIALTY METALS. 
(a) NOTICE REQUIREMENT.—At least 30 days prior 
to making a domestic nonavailability determination pursu-
ant to section 2533b(b) of title 10, United States Code, 
that would apply to more than one contract of the Depart-
ment of Defense, the Secretary of Defense shall, to the 
maximum extent practicable and in a manner consistent 
with the protection of national security information and 
confidential business information— 
(1) publish a notice on the website maintained 
by the General Services Administration known as 
FedBizOpps.gov (or any successor site) of the Sec-
retary’s intent to make the domestic nonavailability 
determination; and 
(2) solicit information relevant to such notice 
from interested parties, including producers of spe-
cialty metal mill products. 
(b) DETERMINATION.—(1) The Secretary shall take 
into consideration all information submitted pursuant to 
subsection (a) in making a domestic nonavailability deter-
mination pursuant to section 2533b(b) of title 10, United 
States Code, that would apply to more than one contract 
of the Department of Defense, and may also consider 
other relevant information that cannot be made part of
652 
the public record consistent with the protection of national 
security information and confidential business informa-
tion. 
(2) The Secretary shall ensure that any such deter-
mination and the rationale for such determination is made 
publicly available to the maximum extent consistent with 
the protection of national security information and con-
fidential business information. 
SEC. 885. TELEPHONE SERVICES FOR MILITARY PER-
SONNEL SERVING IN COMBAT ZONES. 
(a) COMPETITIVE PROCEDURES REQUIRED.— 
(1) REQUIREMENT.—When the Secretary of 
Defense considers it necessary to provide morale, 
welfare, and recreation telephone services for mili-
tary personnel serving in combat zones, the Sec-
retary shall use competitive procedures when enter-
ing into a contract to provide those services. 
(2) REVIEW AND DETERMINATION.—Before so-
liciting bids or proposals for new contracts, or con-
sidering extensions to existing contracts, to provide 
morale, welfare, and recreation telephone services for 
military personnel serving in combat zones, the Sec-
retary shall review and determine whether it is in 
the best interest of the Department to require bids 
or proposals, or adjustments for the purpose of ex-
653 
tending a contract, to include options that minimize 
the cost of the telephone services to individual users 
while providing individual users the flexibility of 
using phone cards from other than the prospective 
contractor. The Secretary shall submit the results of 
this review and determination to the Committees on 
Armed Services of the Senate and the House of Rep-
resentatives. 
(b) EFFECTIVE DATE.— 
(1) REQUIREMENT.—Subsection (a)(1) shall 
apply to any new contract to provide morale, wel-
fare, and recreation telephone services for military 
personnel serving in combat zones that is entered 
into after the date of the enactment of this Act. 
(2) REVIEW AND DETERMINATION.—Subsection 
(a)(2) shall apply to any new contract or extension 
to an existing contract to provide morale, welfare, 
and recreation telephone services for military per-
sonnel serving in combat zones that is entered into 
or agreed upon after the date of the enactment of 
this Act.
655 
(A) such limitation, procedure, or pref-
erence is necessary to provide a stable source of 
jobs in Iraq or Afghanistan; and 
(B) such limitation, procedure, or pref-
erence will not adversely affect— 
(i) military operations or stability op-
erations in Iraq or Afghanistan; or 
(ii) the United States industrial base. 
(c) PRODUCTS, SERVICES, AND SOURCES FROM IRAQ 
OR AFGHANISTAN.—For the purposes of this section: 
(1) A product is from Iraq or Afghanistan if it 
is mined, produced, or manufactured in Iraq or Af-
ghanistan. 
(2) A service is from Iraq or Afghanistan if it 
is performed in Iraq or Afghanistan by citizens or 
permanent resident aliens of Iraq or Afghanistan. 
(3) A source is from Iraq or Afghanistan if it— 
(A) is located in Iraq or Afghanistan; and 
(B) offers products or services that are 
from Iraq or Afghanistan.
656 
SEC. 887. DEFENSE SCIENCE BOARD REVIEW OF DEPART-
MENT OF DEFENSE POLICIES AND PROCE-
DURES FOR THE ACQUISITION OF INFORMA-
TION TECHNOLOGY. 
(a) REVIEW REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall direct the Defense Science Board to carry 
out a review of Department of Defense policies and proce-
dures for the acquisition of information technology. 
(b) MATTERS TO BE ADDRESSED.—The matters ad-
dressed by the review required by subsection (a) shall in-
clude the following: 
(1) Department of Defense policies and proce-
dures for acquiring national security systems, busi-
ness information systems, and other information 
technology. 
(2) The roles and responsibilities in imple-
menting such policies and procedures of— 
(A) the Under Secretary of Defense for 
Acquisition, Technology, and Logistics; 
(B) the Chief Information Officer of the 
Department of Defense; 
(C) the Director of the Business Trans-
formation Agency; 
(D) the service acquisition executives;
657 
(E) the chief information officers of the 
military departments; 
(F) Defense Agency acquisition officials; 
(G) the information officers of the Defense 
Agencies; and 
(H) the Director of Operational Test and 
Evaluation and the heads of the operational 
test organizations of the military departments 
and the Defense Agencies. 
(3) The application of such policies and proce-
dures to information technologies that are an inte-
gral part of weapons or weapon systems. 
(4) The requirements of subtitle III of title 40, 
United States Code, and chapter 35 of title 44, 
United States Code, regarding performance-based 
and results-based management, capital planning, 
and investment control in the acquisition of informa-
tion technology. 
(5) Department of Defense policies and proce-
dures for maximizing the usage of commercial infor-
mation technology while ensuring the security of the 
microelectronics, software, and networks of the De-
partment. 
(6) The suitability of Department of Defense 
acquisition regulations, including Department of De-
658 
fense Directive 5000.1 and the accompanying mile-
stones, to the acquisition of information technology 
systems. 
(7) The adequacy and transparency of metrics 
used by the Department of Defense for the acquisi-
tion of information technology systems. 
(8) The effectiveness of existing statutory and 
regulatory reporting requirements for the acquisition 
of information technology systems. 
(9) The adequacy of operational and develop-
ment test resources (including infrastructure and 
personnel), policies, and procedures to ensure appro-
priate testing of information technology systems 
both during development and before operational use. 
(10) The appropriate policies and procedures 
for technology assessment, development, and oper-
ational testing for purposes of the adoption of com-
mercial technologies into information technology sys-
tems. 
(c) REPORT REQUIRED.—Not later than one year 
after the date of enactment of this Act, the Secretary shall 
submit to the congressional defense committees a report 
on the results of the review required by subsection (a). 
The report shall include the findings and recommenda-
tions of the Defense Science Board pursuant to the review,
659 
including such recommendations for legislative or adminis-
trative action as the Board considers appropriate, together 
with any comments the Secretary considers appropriate. 
SEC. 888. GREEN PROCUREMENT POLICY. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Department of Defense should establish a 
system to document and track the use of environmentally 
preferable products and services. 
(b) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on a plan to increase 
the usage of environmentally friendly products that mini-
mize potential impacts to human health and the environ-
ment at all Department of Defense facilities inside and 
outside the United States, including through the direct 
purchase of products and the purchase of products by fa-
cility maintenance contractors. The report shall also cover 
consideration of the budgetary impact of implementation 
of the plan. 
SEC. 889. COMPTROLLER GENERAL REVIEW OF USE OF AU-
THORITY UNDER THE DEFENSE PRODUCTION 
ACT OF 1950. 
(a) THOROUGH REVIEW REQUIRED.—The Comp-
troller General of the United States (in this section re-
ferred to as the ‘‘Comptroller’’) shall conduct a thorough
660 
review of the application of the Defense Production Act 
of 1950, covering the period beginning on the date of the 
enactment of the Defense Production Act Reauthorization 
of 2003 (Public Law 108–195) and ending on the date 
of the enactment of this Act. 
(b) CONSIDERATIONS.—In conducting the review re-
quired by this section, the Comptroller shall examine— 
(1) the relevance and utility of the authorities 
provided under the Defense Production Act of 1950 
to meet the security challenges of the 21st Century; 
(2) the manner in which the authorities pro-
vided under such Act have been used by the Federal 
Government— 
(A) to meet security challenges; 
(B) to meet current and future defense re-
quirements; 
(C) to meet current and future energy re-
quirements; 
(D) to meet current and future domestic 
emergency and disaster response and recovery 
requirements; 
(E) to reduce the interruption of critical 
infrastructure operations during a terrorist at-
tack, natural catastrophe, or other similar na-
tional emergency; and
661 
(F) to safeguard critical components of the 
United States industrial base, including Amer-
ican aerospace and shipbuilding industries; 
(3) the economic impact of foreign offset con-
tracts; 
(4) the relative merit of developing rapid and 
standardized systems for use of the authorities pro-
vided under the Defense Production Act of 1950, by 
any Federal agency; and 
(5) such other issues as the Comptroller deter-
mines relevant. 
(c) REPORT TO CONGRESS.—Not later than 150 days 
after the date of the enactment of this Act, the Comp-
troller shall submit to the Committees on Armed Services 
and on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committees on Armed Services and on Finan-
cial Services of the House of Representatives a report on 
the review conducted under this section. 
(d) RULES OF CONSTRUCTION ON PROTECTION OF 
INFORMATION.—Notwithstanding any other provision of 
law— 
(1) the provisions of section 705(d) of the De-
fense Production Act of 1950 (50 U.S.C. App. 
2155(d)) shall not apply to information sought or
662 
obtained by the Comptroller for purposes of the re-
view required by this section; and 
(2) provisions of law pertaining to the protec-
tion of classified information or proprietary informa-
tion otherwise applicable to information sought or 
obtained by the Comptroller in carrying out this sec-
tion shall not be affected by any provision of this 
section. 
SEC. 890. PREVENTION OF EXPORT CONTROL VIOLATIONS. 
(a) PREVENTION
OF
EXPORT
CONTROL
VIOLA-
TIONS.—Not later than 180 days after the date of the en-
actment of this Act, the Secretary of Defense shall pre-
scribe regulations requiring any contractor under a con-
tract with the Department of Defense to provide goods 
or technology that is subject to export controls under the 
Arms Export Control Act or the Export Administration 
of 1979 (as continued in effect under the International 
Emergency Economic Powers Act) to comply with those 
Acts and applicable regulations with respect to such goods 
and technology, including the International Traffic in 
Arms Regulations and the Export Administration Regula-
tions. Regulations prescribed under this subsection shall 
include a contract clause enforcing such requirement. 
(b) TRAINING
ON EXPORT CONTROLS.—The Sec-
retary of Defense shall ensure that any contractor under
663 
a contract with the Department of Defense to provide 
goods or technology that is subject to export controls 
under the Arms Export Control Act or the Export Admin-
istration of 1979 (as continued in effect under the Inter-
national Emergency Economic Powers Act) is made aware 
of any relevant resources made available by the Depart-
ment of State and the Department of Commerce to assist 
in compliance with the requirement established by sub-
section (a) and the need for a corporate compliance plan 
and periodic internal audits of corporate performance 
under such plan. 
(c) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, 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 assessing the utility 
of— 
(1) requiring defense contractors (or sub-
contractors at any tier) to periodically report on 
measures taken to ensure compliance with the Inter-
national Traffic in Arms Regulations and the Export 
Administration Regulations; 
(2) requiring periodic audits of defense contrac-
tors (or subcontractors at any tier) to ensure compli-
ance with all provisions of the International Traffic
664 
in Arms Regulations and the Export Administration 
Regulations; 
(3) requiring defense contractors to maintain a 
corporate training plan to disseminate information 
to appropriate contractor personnel regarding the 
applicability of the Arms Export Control Act and the 
Export Administration Act of 1979; and 
(4) requiring a designated corporate liaison, 
available for training provided by the United States 
Government, whose primary responsibility would be 
contractor compliance with the Arms Export Control 
Act and the Export Administration Act of 1979. 
(d) DEFINITIONS.—In this section: 
(1) EXPORT ADMINISTRATION REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means those regulations contained in sections 730 
through 774 of title 15, Code of Federal Regulations 
(or successor regulations). 
(2) INTERNATIONAL TRAFFIC IN ARMS REGULA-
TIONS.—The term ‘‘International Traffic in Arms 
Regulations’’ means those regulations contained in 
sections 120 through 130 of title 22, Code of Fed-
eral Regulations (or successor regulations).
665 
SEC. 891. PROCUREMENT GOAL FOR NATIVE HAWAIIAN- 
SERVING INSTITUTIONS AND ALASKA NA-
TIVE-SERVING INSTITUTIONS. 
Section 2323 of title 10, United States Code, is 
amended— 
(1) in subsection (a)(1)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C); 
(B) by striking the period at the end of 
subparagraph (D) and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) Native Hawaiian-serving institutions 
and Alaska Native-serving institutions (as de-
fined in section 317 of the Higher Education 
Act of 1965).’’; 
(2) in subsection (a)(2), by inserting after 
‘‘Hispanic-serving institutions,’’ the following: ‘‘Na-
tive Hawaiian-serving institutions and Alaska Na-
tive-serving institutions,’’; 
(3) in subsection (c)(1), by inserting after ‘‘His-
panic-serving institutions,’’ the following: ‘‘Native 
Hawaiian-serving institutions and Alaska Native- 
serving institutions,’’; and 
(4) in subsection (c)(3), by inserting after ‘‘His-
panic-serving institutions,’’ the following: ‘‘to Native
666 
Hawaiian-serving institutions and Alaska Native- 
serving institutions,’’. 
SEC. 892. COMPETITION FOR PROCUREMENT OF SMALL 
ARMS SUPPLIED TO IRAQ AND AFGHANISTAN. 
(a) COMPETITION REQUIREMENT.—For the procure-
ment of pistols and other weapons described in subsection 
(b), the Secretary of Defense shall ensure, consistent with 
the provisions of section 2304 of title 10, United States 
Code, that— 
(1) full and open competition is obtained to the 
maximum extent practicable; 
(2) no responsible United States manufacturer 
is excluded from competing for such procurements; 
and 
(3) products manufactured in the United States 
are not excluded from the competition. 
(b) PROCUREMENTS COVERED.—This section applies 
to the procurement of the following: 
(1) Pistols and other weapons less than 0.50 
caliber for assistance to the Army of Iraq, the Iraqi 
Police Forces, and other Iraqi security organiza-
tions. 
(2) Pistols and other weapons less than 0.50 
caliber for assistance to the Army of Afghanistan,
667 
the Afghani Police Forces, and other Afghani secu-
rity organizations. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
Subtitle A—Department of Defense Management 
Sec. 901. Repeal of limitation on major Department of Defense headquarters 
activities personnel and related report. 
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. Management of the Department of Defense. 
Sec. 905. Revision in guidance relating to combatant command acquisition au-
thority. 
Sec. 906. Department of Defense Board of Actuaries. 
Sec. 907. Modification of background requirement of individuals appointed as 
Under Secretary of Defense for Acquisition, Technology, and 
Logistics. 
Sec. 908. Assistant Secretaries of the military departments for acquisition mat-
ters; principal military deputies. 
Sec. 909. Sense of Congress on term of Office of the Director of Operational 
Test and Evaluation. 
Subtitle B—Space Activities 
Sec. 911. Space protection strategy. 
Sec. 912. Biennial report on management of space cadre within the Depart-
ment of Defense. 
Sec. 913. Additional report on oversight of acquisition for defense space pro-
grams. 
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. 
Sec. 923. Repeal of certain qualifications requirement for director of chemical 
demilitarization management organization. 
Sec. 924. Modification of termination of assistance to State and local govern-
ments after completion of the destruction of the United States 
chemical weapons stockpile. 
Subtitle D—Intelligence-Related Matters 
Sec. 931. 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
668 
Sec. 941. Requirement for quadrennial roles and missions review. 
Sec. 942. Joint Requirements Oversight Council additional duties relating to 
core mission areas. 
Sec. 943. Requirement for certification of major systems prior to technology de-
velopment. 
Sec. 944. Presentation of future-years mission budget by core mission area. 
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. Board of Regents for the Uniformed Services University of the 
Health Sciences. 
Sec. 955. Establishment of Department of Defense School of Nursing. 
Sec. 956. Inclusion of commanders of Western Hemisphere combatant com-
mands in Board of Visitors of Western Hemisphere Institute 
for Security Cooperation. 
Sec. 957. Comptroller General assessment of reorganization of the Office of the 
Under Secretary of Defense for Policy. 
Sec. 958. Report on foreign language proficiency. 
Subtitle A—Department of Defense 
Management 
SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT 
OF DEFENSE HEADQUARTERS ACTIVITIES 
PERSONNEL AND RELATED REPORT. 
(a) REPEAL OF LIMITATION.— 
(1) REPEAL.—Section 130a of title 10, United 
States Code, is repealed. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 3 of such title is 
amended by striking the item relating to section 
130a. 
(b) REPORT REQUIRED.—The Secretary of Defense 
shall include a report with the defense budget materials
669 
for each fiscal year that includes the following informa-
tion: 
(1) The average number of military personnel 
and civilian employees of the Department of Defense 
assigned to major Department of Defense head-
quarters activities for each component of the De-
partment of Defense during the preceding fiscal 
year. 
(2) The total increase in personnel assigned to 
major headquarters activities, if any, during the pre-
ceding fiscal year— 
(A) attributable to the replacement of con-
tract personnel with military personnel or civil-
ian employees of the Department of Defense, 
including the number of positions associated 
with the replacement of contract personnel per-
forming inherently governmental functions; and 
(B) attributable to reasons other than the 
replacement of contract personnel with military 
personnel or civilian employees of the Depart-
ment, such as workload or operational demand 
increases. 
(3) An estimate of the cost savings, if any, as-
sociated with the elimination of contracts for the 
performance of major headquarters activities.
670 
(4) The number of military personnel and civil-
ian employees of the Department of Defense as-
signed to major headquarters activities for each 
component of the Department of Defense as of Octo-
ber 1 of the preceding fiscal year. 
(c) DEFINITIONS.—In this section: 
(1) DEFENSE BUDGET MATERIALS.—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 that fiscal year that is submitted to Congress by 
the President under section 1105 of title 31, United 
States Code. 
(2) CONTRACT PERSONNEL.—The term ‘‘con-
tract personnel’’ means persons hired under a con-
tract with the Department of Defense for the per-
formance of major Department of Defense head-
quarters activities. 
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.’’.
671 
(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 
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
672 
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.’’. 
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 ‘‘seven’’. 
(b) DEPUTY SECRETARY
OF DEFENSE.—Section 
132(a) of such title is amended by striking ‘‘ten’’ and in-
serting ‘‘seven’’. 
(c) UNDER SECRETARY OF DEFENSE FOR POLICY.— 
Section 134(a) of such title is amended by striking ‘‘10’’ 
and inserting ‘‘seven’’.
673 
SEC. 904. MANAGEMENT OF THE DEPARTMENT OF DE-
FENSE. 
(a) ASSIGNMENT
OF MANAGEMENT DUTIES
AND 
DESIGNATION OF A CHIEF MANAGEMENT OFFICER AND 
DEPUTY CHIEF MANAGEMENT OFFICER OF THE DEPART-
MENT OF DEFENSE.— 
(1) ESTABLISHMENT
OF
POSITION.—Section 
132 of title 10, United States Code is amended— 
(A) by redesignating subsection (c) as sub-
section (d); and 
(B) by inserting after subsection (b) the 
following new subsection (c): 
‘‘(c) The Deputy Secretary serves as the Chief Man-
agement Officer of the Department of Defense. The Dep-
uty Secretary shall be assisted in this capacity by a Dep-
uty Chief Management Officer, who shall be appointed 
from civilian life by the President, by and with the advice 
and consent of the Senate.’’. 
(2) ASSIGNMENT OF DUTIES.— 
(A) The Secretary of Defense shall assign 
duties and authorities relating to the manage-
ment of the business operations of the Depart-
ment of Defense. 
(B) The Secretary shall assign such duties 
and authorities to the Chief Management Offi-
cer as are necessary for that official to effec-
674 
tively and efficiently organize the business oper-
ations of the Department of Defense. 
(C) The Secretary shall assign such duties 
and authorities to the Deputy Chief Manage-
ment Officer as are necessary for that official 
to assist the Chief Management Officer to effec-
tively and efficiently organize the business oper-
ations of the Department of Defense. 
(D) The Deputy Chief Management Officer 
shall perform the duties and have the authori-
ties assigned by the Secretary under subpara-
graph (C) and perform such duties and have 
such authorities as are delegated by the Chief 
Management Officer. 
(3) EXECUTIVE SCHEDULE LEVEL III.—Section 
5314 of title 5, United States Code, is amended by 
inserting after the item relating to the Under Sec-
retary of Defense for Intelligence the following new 
item: 
‘‘Deputy Chief Management Officer of the De-
partment of Defense.’’. 
(4) PLACEMENT IN OSD.—Section 131(b)(2) of 
title 10, United States Code, is amended—
675 
(A) 
by 
redesignating 
paragraphs 
(3) 
through (8) as paragraphs (4) through (9), re-
spectively; and 
(B) by inserting after paragraph (2) the 
following new paragraph (3): 
‘‘(3) The Deputy Chief Management Officer of 
the Department of Defense.’’. 
(b) ASSIGNMENT
OF MANAGEMENT DUTIES
AND 
DESIGNATION OF THE CHIEF MANAGEMENT OFFICERS 
OF THE MILITARY DEPARTMENTS.— 
(1) The Secretary of a military department 
shall assign duties and authorities relating to the 
management of the business operations of such mili-
tary department. 
(2) The Secretary of a military department, in 
assigning duties and authorities under paragraph 
(1) shall designate the Under Secretary of such mili-
tary department to have the primary management 
responsibility for business operations, to be known in 
the performance of such duties as the Chief Manage-
ment Officer. 
(3) The Secretary shall assign such duties and 
authorities to the Chief Management Officer as are 
necessary for that official to effectively and effi-
676 
ciently organize the business operations of the mili-
tary department concerned. 
(4) The Chief Management Officer of each mili-
tary department shall promptly provide such infor-
mation relating to the business operations of such 
department to the Chief Management Officer and 
Deputy Chief Management Officer of the Depart-
ment of Defense as is necessary to assist those offi-
cials in the performance of their duties. 
(c) MANAGEMENT OF DEFENSE BUSINESS TRANS-
FORMATION AGENCY.—Section 192(e)(2) of title 10, 
United States Code, is amended by striking ‘‘that the 
Agency’’ and all that follows and inserting ‘‘that the Di-
rector of the Agency shall report directly to the Deputy 
Chief Management Officer of the Department of De-
fense.’’. 
(d) STRATEGIC MANAGEMENT PLAN REQUIRED.— 
(1) REQUIREMENT.—The Secretary of Defense, 
acting through the Chief Management Officer of the 
Department of Defense, shall develop a strategic 
management plan for the Department of Defense. 
(2) MATTERS COVERED.—Such plan shall in-
clude, at a minimum, detailed descriptions of— 
(A) performance goals and measures for 
improving and evaluating the overall efficiency
677 
and effectiveness of the business operations of 
the Department of Defense and achieving an in-
tegrated management system for business sup-
port areas within the Department of Defense; 
(B) key initiatives to be undertaken by the 
Department of Defense to achieve the perform-
ance goals under subparagraph (A), together 
with related resource needs; 
(C) procedures to monitor the progress of 
the Department of Defense in meeting perform-
ance goals and measures under subparagraph 
(A); 
(D) procedures to review and approve 
plans and budgets for changes in business oper-
ations, including any proposed changes to poli-
cies, procedures, processes, and systems, to en-
sure the compatibility of such plans and budg-
ets with the strategic management plan of the 
Department of Defense; and 
(E) procedures to oversee the development 
of, and review and approve, all budget requests 
for defense business systems. 
(3) UPDATES.—The Secretary of Defense, act-
ing through the Chief Management Officer, shall up-
date the strategic management plan no later than
678 
July 1, 2009, and every two years thereafter and 
provide a copy to the Committees on Armed Services 
of the Senate and the House of Representatives. 
(e) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall provide to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the 
implementation of this section and a copy of the strategic 
management plan required by subsection (d). 
SEC. 905. REVISION IN GUIDANCE RELATING TO COMBAT-
ANT COMMAND ACQUISITION AUTHORITY. 
Subparagraph (B) of section 905(b)(1) of the John 
Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109–364; 120 Stat. 2353) is 
amended by striking ‘‘and mutually supportive of’’. 
SEC. 906. DEPARTMENT OF DEFENSE BOARD OF ACTU-
ARIES. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Chapter 7 of title 10, United 
States Code, is amended by inserting after section 
182 the following new section: 
‘‘§ 183. Department of Defense Board of Actuaries 
‘‘(a) IN GENERAL.—There shall be in the Depart-
ment of Defense a Department of Defense Board of Actu-
679 
aries (hereinafter in this section referred to as the 
‘Board’). 
‘‘(b) MEMBERS.—(1) The Board shall consist of 
three members who shall be appointed by the Secretary 
of Defense from among qualified professional actuaries 
who are members of the Society of Actuaries. 
‘‘(2) The members of the Board shall serve for a term 
of 15 years, except that a member of the Board appointed 
to fill a vacancy occurring before the end of the term for 
which the member’s predecessor was appointed shall only 
serve until the end of such term. A member may serve 
after the end of the member’s term until the member’s 
successor takes office. 
‘‘(3) A member of the Board may be removed by the 
Secretary of Defense only for misconduct or failure to per-
form functions vested in the Board. 
‘‘(4) A member of the Board who is not an employee 
of the United States is entitled to receive pay at the daily 
equivalent of the annual rate of basic pay of the highest 
rate of basic pay then currently being paid under the Gen-
eral Schedule of subchapter III of chapter 53 of title 5 
for each day the member is engaged in the performance 
of the duties of the Board and is entitled to travel ex-
penses, including a per diem allowance, in accordance with 
section 5703 of that title in connection with such duties.
680 
‘‘(c) DUTIES.—The Board shall have the following 
duties: 
‘‘(1) To review valuations of the Department of 
Defense Military Retirement Fund in accordance 
with section 1465(c) of this title and submit to the 
President and Congress, not less often than once 
every four years, a report on the status of that 
Fund, including such recommendations for modifica-
tions to the funding or amortization of that Fund as 
the Board considers appropriate and necessary to 
maintain that Fund on a sound actuarial basis. 
‘‘(2) To review valuations of the Department of 
Defense Education Benefits Fund in accordance 
with section 2006(e) of this title and make rec-
ommendations to the President and Congress on 
such modifications to the funding or amortization of 
that Fund as the Board considers appropriate to 
maintain that Fund on a sound actuarial basis. 
‘‘(3) To review valuations of such other funds 
as the Secretary of Defense shall specify for pur-
poses of this section and make recommendations to 
the President and Congress on such modifications to 
the funding or amortization of such funds as the 
Board considers appropriate to maintain such funds 
on a sound actuarial basis.
681 
‘‘(d) RECORDS.—The Secretary of Defense shall en-
sure that the Board has access to such records regarding 
the funds referred to in subsection (c) as the Board shall 
require to determine the actuarial status of such funds. 
‘‘(e) REPORTS.—(1) The Board shall submit to the 
Secretary of Defense on an annual basis a report on the 
actuarial status of each of the following: 
‘‘(A) The Department of Defense Military Re-
tirement Fund. 
‘‘(B) The Department of Defense Education 
Benefits Fund. 
‘‘(C) Each other fund specified by Secretary 
under subsection (c)(3). 
‘‘(2) The Board shall also furnish its advice and opin-
ion on matters referred to it by the Secretary.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 7 of such title is 
amended by inserting after the item relating to sec-
tion 182 the following new item: 
‘‘183. Department of Defense Board of Actuaries’’. 
(3) INITIAL SERVICE AS BOARD MEMBERS.— 
Each member of the Department of Defense Retire-
ment Board of Actuaries or the Department of De-
fense Education Benefits Board of Actuaries as of 
the date of the enactment of this Act shall serve as 
an initial member of the Department of Defense
682 
Board of Actuaries under section 183 of title 10, 
United States Code (as added by paragraph (1)), 
from that date until the date otherwise provided for 
the completion of such individual’s term as a mem-
ber of the Department of Defense Retirement Board 
of Actuaries or the Department of Defense Edu-
cation Benefits Board of Actuaries, as the case may 
be, unless earlier removed by the Secretary of De-
fense. 
(b) TERMINATION OF EXISTING BOARDS OF ACTU-
ARIES.— 
(1) DEPARTMENT
OF
DEFENSE
RETIREMENT 
BOARD OF ACTUARIES.—(A) Section 1464 of title 
10, United States Code, is repealed. 
(B) The table of sections at the beginning of 
chapter 74 of such title is amended by striking the 
item relating to section 1464. 
(2) DEPARTMENT
OF
DEFENSE
EDUCATION 
BENEFITS BOARD OF ACTUARIES.—Section 2006 of 
such title is amended— 
(A) in subsection (c)(1), by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’; 
(B) by striking subsection (e);
683 
(C) by redesignating subsections (f), (g), 
and (h) as subsections (e), (f), and (g), respec-
tively; 
(D) in subsection (e), as redesignated by 
subparagraph (C), by striking ‘‘subsection (g)’’ 
in paragraph (5) and inserting ‘‘subsection (f)’’; 
and 
(E) in subsection (f), as so redesignated— 
(i) in paragraph (2)(A), by striking 
‘‘subsection (f)(3)’’ and inserting ‘‘sub-
section (e)(3)’’; and 
(ii) in paragraph (2)(B), by striking 
‘‘subsection (f)(4)’’ and inserting ‘‘sub-
section (e)(4)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1175(h)(4) of title 10, United 
States Code, is amended by striking ‘‘Retirement’’ 
the first place it appears. 
(2) Section 1460(b) of such title is amended by 
striking ‘‘Retirement’’. 
(3) Section 1466(c)(3) of such title is amended 
by striking ‘‘Retirement’’. 
(4) Section 12521(6) of such title is amended 
by striking ‘‘Department of Defense Education Ben-
efits Board of Actuaries referred to in section
684 
2006(e)(1) of this title’’ and inserting ‘‘Department 
of Defense Board of Actuaries under section 183 of 
this title’’. 
SEC. 907. MODIFICATION OF BACKGROUND REQUIREMENT 
OF INDIVIDUALS APPOINTED AS UNDER SEC-
RETARY OF DEFENSE FOR ACQUISITION, 
TECHNOLOGY, AND LOGISTICS. 
Section 133(a) of title 10, United States Code, is 
amended by striking ‘‘in the private sector’’. 
SEC. 908. ASSISTANT SECRETARIES OF THE MILITARY DE-
PARTMENTS 
FOR 
ACQUISITION 
MATTERS; 
PRINCIPAL MILITARY DEPUTIES. 
(a) DEPARTMENT OF THE ARMY.—Section 3016(b) 
of title 10, United States Code, is amended by adding at 
the end the following new paragraph: 
‘‘(5)(A) One of the Assistant Secretaries shall be the 
Assistant Secretary of the Army for Acquisition, Tech-
nology, and Logistics. The principal duty of the Assistant 
Secretary shall be the overall supervision of acquisition, 
technology, and logistics matters of the Department of the 
Army. 
‘‘(B) The Assistant Secretary shall have a Principal 
Military Deputy, who shall be a lieutenant general of the 
Army on active duty. The Principal Military Deputy shall 
be appointed from among officers who have significant ex-
685 
perience in the areas of acquisition and program manage-
ment. The position of Principal Military Deputy shall be 
designated as a critical acquisition position under section 
1733 of this title.’’. 
(b) DEPARTMENT OF THE NAVY.—Section 5016(b) 
of such title is amended by adding at the end the following 
new paragraph: 
‘‘(4)(A) One of the Assistant Secretaries shall be the 
Assistant Secretary of the Navy for Research, Develop-
ment, and Acquisition. The principal duty of the Assistant 
Secretary shall be the overall supervision of research, de-
velopment, and acquisition matters of the Department of 
the Navy. 
‘‘(B) The Assistant Secretary shall have a Principal 
Military Deputy, who shall be a vice admiral of the Navy 
or a lieutenant general of the Marine Corps on active duty. 
The Principal Military Deputy shall be appointed from 
among officers who have significant experience in the 
areas of acquisition and program management. The posi-
tion of Principal Military Deputy shall be designated as 
a critical acquisition position under section 1733 of this 
title.’’. 
(c) DEPARTMENT
OF
THE AIR FORCE.—Section 
8016(b) of such title is amended by adding at the end 
the following new paragraph:
686 
‘‘(4)(A) One of the Assistant Secretaries shall be the 
Assistant Secretary of the Air Force for Acquisition. The 
principal duty of the Assistant Secretary shall be the over-
all supervision of acquisition matters of the Department 
of the Air Force. 
‘‘(B) The Assistant Secretary shall have a Principal 
Military Deputy, who shall be a lieutenant general of the 
Air Force on active duty. The Principal Military Deputy 
shall be appointed from among officers who have signifi-
cant experience in the areas of acquisition and program 
management. The position of Principal Military Deputy 
shall be designated as a critical acquisition position under 
section 1733 of this title.’’. 
(d) DUTY OF PRINCIPAL MILITARY DEPUTIES TO IN-
FORM SERVICE CHIEFS ON MAJOR DEFENSE ACQUISI-
TION PROGRAMS.—Each Principal Military Deputy to a 
service acquisition executive shall be responsible for keep-
ing the Chief of Staff of the Armed Forces concerned in-
formed of the progress of major defense acquisition pro-
grams.
687 
SEC. 909. SENSE OF CONGRESS ON TERM OF OFFICE OF 
THE DIRECTOR OF OPERATIONAL TEST AND 
EVALUATION. 
It is the sense of Congress that the term of office 
of the Director of Operational Test and Evaluation of the 
Department of Defense should be not less than five years. 
Subtitle B—Space Activities 
SEC. 911. SPACE PROTECTION STRATEGY. 
(a) SENSE OF CONGRESS.—It is the Sense of Con-
gress that the United States should place greater priority 
on the protection of national security space systems. 
(b) STRATEGY.—The Secretary of Defense, in con-
junction with the Director of National Intelligence, shall 
develop a strategy, to be known as the Space Protection 
Strategy, for the development and fielding by the United 
States of the capabilities that are necessary to ensure free-
dom of action in space for the United States. 
(c) MATTERS INCLUDED.—The strategy required by 
subsection (b) shall include each of the following: 
(1) An identification of the threats to, and the 
vulnerabilities of, the national security space systems 
of the United States. 
(2) A description of the capabilities currently 
contained in the program of record of the Depart-
ment of Defense and the intelligence community that 
ensure freedom of action in space.
688 
(3) For each period covered by the strategy, a 
description of the capabilities that are needed for the 
period, including— 
(A) the hardware, software, and other ma-
terials or services to be developed or procured; 
(B) the management and organizational 
changes to be achieved; and 
(C) concepts of operations, tactics, tech-
niques, and procedures to be employed. 
(4) For each period covered by the strategy, an 
assessment of the gaps and shortfalls between the 
capabilities that are needed for the period and the 
capabilities currently contained in the program of 
record. 
(5) For each period covered by the strategy, a 
comprehensive plan for investment in capabilities 
that identifies specific program and technology in-
vestments to be made in that period. 
(6) A description of the current processes by 
which the systems protection requirements of the 
Department of Defense and the intelligence commu-
nity are addressed in space acquisition programs 
and during key milestone decisions, an assessment of 
the adequacy of those processes, and an identifica-
tion of the actions of the Department and the intel-
689 
ligence community for addressing any inadequacies 
in those processes. 
(7) A description of the current processes by 
which the Department of Defense and the intel-
ligence community program and budget for capabili-
ties (including capabilities that are incorporated into 
single programs and capabilities that span multiple 
programs), an assessment of the adequacy of those 
processes, and an identification of the actions of the 
Department and the intelligence community for ad-
dressing any inadequacies in those processes. 
(8) A description of the organizational and 
management structure of the Department of De-
fense and the intelligence community for addressing 
policy, planning, acquisition, and operations with re-
spect to capabilities, a description of the roles and 
responsibilities of each organization, and an identi-
fication of the actions of the Department and the in-
telligence community for addressing any inadequa-
cies in that structure. 
(d) PERIODS COVERED.—The strategy required by 
subsection (b) shall cover the following periods: 
(1) Fiscal years 2008 through 2013. 
(2) Fiscal years 2014 through 2019. 
(3) Fiscal years 2020 through 2025.
691 
(g) CONFORMING REPEAL.—Section 911 of the Na-
tional Defense Authorization Act for Fiscal Year 2006 
(Public Law 109–163; 119 Stat. 3405; 10 U.S.C. 2271 
note) is repealed. 
SEC. 912. BIENNIAL REPORT ON MANAGEMENT OF SPACE 
CADRE WITHIN THE DEPARTMENT OF DE-
FENSE. 
(a) IN GENERAL.—Chapter 23 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 490. Space cadre management: biennial report 
‘‘(a) REQUIREMENT.—The Secretary of Defense and 
each Secretary of a military department shall develop 
metrics and use these metrics to identify, track, and man-
age space cadre personnel within the Department of De-
fense to ensure the Department has sufficient numbers of 
personnel with the expertise, training, and experience to 
meet current and future national security space needs. 
‘‘(b) BIENNIAL REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of the enactment of this section, and 
every even-numbered year thereafter, the Secretary 
of Defense shall submit to the congressional defense 
committees a report on the management of the space 
cadre.
692 
‘‘(2) MATTERS
INCLUDED.—The report re-
quired by paragraph (1) shall include— 
‘‘(A) the number of active duty, reserve 
duty, and government civilian space-coded bil-
lets that— 
‘‘(i) are authorized or permitted to be 
maintained for each military department 
and defense agency; 
‘‘(ii) are needed or required for each 
military department and defense agency 
for the year in which the submission of the 
report is required; and 
‘‘(iii) are needed or required for each 
military department and defense agency 
for each of the five years following the date 
of the submission of the report; 
‘‘(B) the actual number of active duty, re-
serve duty, and government civilian personnel 
that are coded or classified as space cadre per-
sonnel within the Department of Defense, in-
cluding the military departments and defense 
agencies; 
‘‘(C) the number of personnel recruited or 
hired as accessions to serve in billets coded or
693 
classified as space cadre personnel for each 
military department and defense agency; 
‘‘(D) the number of personnel serving in 
billets coded or classified as space cadre per-
sonnel that discontinued serving each military 
department and defense agency during the pre-
ceding calendar year; 
‘‘(E) for each of the reporting require-
ments in subparagraphs (A) through (D), fur-
ther classification of the number of personnel 
by— 
‘‘(i) space operators, acquisition per-
sonnel, engineers, scientists, program man-
agers, and other space-related areas identi-
fied by the Department; 
‘‘(ii) expertise or technical specializa-
tion area— 
‘‘(I) such as communications, 
missile warning, spacelift, and any 
other space-related specialties identi-
fied by the Department or classifica-
tions used by the Department; and 
‘‘(II) 
consistent 
with 
section 
1721 of this title for acquisition per-
sonnel;
694 
‘‘(iii) rank for active duty and reserve 
duty personnel and grade for government 
civilian personnel; 
‘‘(iv) qualification, expertise, or pro-
ficiency level consistent with service and 
agency-defined qualification, expertise, or 
proficiency levels; and 
‘‘(v) any other such space-related clas-
sification categories used by the Depart-
ment or military departments; and 
‘‘(F) any other metrics identified by the 
Department to improve the identification, 
tracking, training, and management of space 
cadre personnel. 
‘‘(3) ASSESSMENTS.—The report required by 
paragraph (1) shall also include the Secretary’s as-
sessment of the state of the Department’s space 
cadre, the Secretary’s assessment of the space cad-
res of the military departments, and a description of 
efforts to ensure the Department has a space cadre 
sufficient to meet current and future national secu-
rity space needs.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘490. Space cadre management: biennial report.’’.
695 
SEC. 913. ADDITIONAL REPORT ON OVERSIGHT OF ACQUI-
SITION FOR DEFENSE SPACE PROGRAMS. 
Section 911(b)(1) of the Bob Stump National De-
fense Authorization Act for Fiscal Year 2003 (Public Law 
107–314; 116 Stat. 2621) is amended by inserting ‘‘, and 
March 15, 2008,’’ after ‘‘March 15, 2003,’’. 
Subtitle C—Chemical 
Demilitarization Program 
SEC. 921. CHEMICAL DEMILITARIZATION CITIZENS ADVI-
SORY COMMISSIONS. 
(a) FUNCTIONS.—Section 172 of the National De-
fense Authorization Act for Fiscal Year 1993 (50 U.S.C. 
1521 note) is amended— 
(1) in each of subsections (b) and (f), by strik-
ing ‘‘Assistant Secretary of the Army (Research, De-
velopment and Acquisition)’’ and inserting ‘‘Assist-
ant Secretary of the Army (Acquisition, Logistics, 
and Technology)’’; and 
(2) in subsection (g), by striking ‘‘Assistant 
Secretary of the Army (Research, Development, and 
Acquisition)’’ and inserting ‘‘Assistant Secretary of 
the Army (Acquisition, Logistics, and Technology)’’. 
(b) TERMINATION.—Such section is further amended 
in subsection (h) by striking ‘‘after the stockpile located 
in that commission’s State has been destroyed’’ and in-
serting ‘‘after the closure activities required pursuant to
696 
regulations promulgated by the Administrator of the Envi-
ronmental Protection Agency pursuant to the Solid Waste 
Disposal Act (42 U.S.C. 6901 et seq.) have been com-
pleted for the chemical agent destruction facility in the 
commission’s State, or upon the request of the Governor 
of the commission’s State, whichever occurs first’’. 
SEC. 922. SENSE OF CONGRESS ON COMPLETION OF DE-
STRUCTION OF UNITED STATES CHEMICAL 
WEAPONS STOCKPILE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) The Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction, done 
at Paris on January 13, 1993 (commonly referred to 
as the ‘‘Chemical Weapons Convention’’), requires 
that destruction of the entire United States chemical 
weapons stockpile be completed by not later than 
April 29, 2007. 
(2) In 2006, under the terms of the Chemical 
Weapons Convention, the United States requested 
and received a one-time, 5-year extension of its 
chemical weapons destruction deadline to April 29, 
2012.
697 
(3) On April 10, 2006, the Secretary of De-
fense notified Congress that the United States would 
not meet even the extended deadline under the 
Chemical Weapons Convention for destruction of the 
United States chemical weapons stockpile, but would 
‘‘continue working diligently to minimize the time to 
complete destruction without sacrificing safety and 
security’’ and would also ‘‘continue requesting re-
sources needed to complete destruction as close to 
April 2012 as practicable’’. 
(4) The United States chemical demilitarization 
program has met its one percent, 20 percent, and 
extended 45 percent destruction deadlines under the 
Chemical Weapons Convention. 
(5) Destroying the remaining stockpile of 
United States chemical weapons is imperative for 
public safety and homeland security, and doing so by 
April 2012, in accordance with the current destruc-
tion deadline provided under the Chemical Weapons 
Convention, is required by United States law. 
(6) The elimination of chemical weapons any-
where they exist in the world, and the prevention of 
their proliferation, is of utmost importance to the 
national security of the United States.
698 
(7) Section 921(b)(3) of the John Warner Na-
tional Defense Authorization Act for Fiscal Year 
2007 (Public Law 109–364; 120 Stat. 2359) con-
tained a sense of Congress urging the Secretary of 
Defense to ensure the elimination of the United 
States chemical weapons stockpile in the shortest 
time possible, consistent with the requirement to 
protect public health, safety, and the environment. 
(8) Section 921(b)(4) of that Act contained a 
sense of Congress urging the Secretary of Defense 
to propose a credible treatment and disposal process 
with the support of affected communities. In this re-
gard, any such process should provide for sufficient 
communication and consultation between representa-
tives of the Department of Defense and representa-
tives of affected States and communities. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) the United States is, and must remain, 
committed to making every effort to safely dispose 
of its entire chemical weapons stockpile by April 
2012, the current destruction deadline provided 
under the Chemical Weapons Convention, or as soon 
thereafter as possible, and must carry out all of its 
other obligations under the Convention; and
699 
(2) the Secretary of Defense should make every 
effort to plan for, and to request in the annual 
budget of the President submitted to Congress ade-
quate funding to complete, the elimination of the 
United States chemical weapons stockpile in accord-
ance with United States obligations under the Chem-
ical Weapons Convention and in a manner that will 
protect public health, safety, and the environment, 
as required by law. 
(c) REPORTS REQUIRED.— 
(1) IN GENERAL.—Not later than March 15, 
2008, and every 180 days thereafter until the year 
in which the United States completes the destruction 
of its entire stockpile of chemical weapons under the 
terms of the Chemical Weapons Convention, the Sec-
retary of Defense shall submit to the members and 
committees of Congress referred to in paragraph (3) 
a report on the implementation by the United States 
of its chemical weapons destruction obligations 
under the Chemical Weapons Convention. 
(2) ELEMENTS.—Each report under paragraph 
(1) shall include the following: 
(A) The anticipated schedule at the time of 
such report for the completion of destruction of 
chemical agents, munitions, and materiel at
700 
each chemical weapons demilitarization facility 
in the United States. 
(B) A description of the options and alter-
natives for accelerating the completion of chem-
ical weapons destruction at each such facility, 
particularly in time to meet the destruction 
deadline of April 29, 2012, currently provided 
by the Chemical Weapons Convention, and by 
December 31, 2017. 
(C) A description of the funding required 
to achieve each of the options for destruction 
described under subparagraph (B), and a de-
tailed life-cycle cost estimate for each of the af-
fected facilities included in each such funding 
profile. 
(D) A description of all actions being 
taken by the United States to accelerate the de-
struction of its entire stockpile of chemical 
weapons, agents, and materiel in order to meet 
the current destruction deadline under the 
Chemical Weapons Convention of April 29, 
2012, or as soon thereafter as possible. 
(3) MEMBERS
AND
COMMITTEES
OF
CON-
GRESS.—The members and committees of Congress 
referred to in this paragraph are—
701 
(A) the majority leader of the Senate, the 
minority leader of the Senate, and the Commit-
tees on Armed Services and Appropriations of 
the Senate; and 
(B) the Speaker of the House of Rep-
resentatives, the majority leader of the House 
of Representatives, the minority leader of the 
House of Representatives, and the Committees 
on Armed Services and Appropriations of the 
House of Representatives. 
SEC. 923. REPEAL OF CERTAIN QUALIFICATIONS REQUIRE-
MENT FOR DIRECTOR OF CHEMICAL DEMILI-
TARIZATION MANAGEMENT ORGANIZATION. 
Section 1412(e)(3) of the Department of Defense Au-
thorization Act, 1986 (50 U.S.C. 1521(e)(3)) is amend-
ed— 
(1) in subparagraph (A), by adding ‘‘and’’ at 
the end; 
(2) by striking subparagraph (B); and 
(3) by redesignating subparagraph (C) as sub-
paragraph (B).
702 
SEC. 924. MODIFICATION OF TERMINATION OF ASSISTANCE 
TO STATE AND LOCAL GOVERNMENTS AFTER 
COMPLETION OF THE DESTRUCTION OF THE 
UNITED STATES CHEMICAL WEAPONS STOCK-
PILE. 
Subparagraph (B) of section 1412(c)(5) of the De-
partment of Defense Authorization Act, 1986 (50 U.S.C. 
1521(c)(5)) is amended to read as follows: 
‘‘(B) Assistance may be provided under this para-
graph for capabilities to respond to emergencies involving 
an installation or facility as described in subparagraph (A) 
until the earlier of the following: 
‘‘(i) The date of the completion of all grants 
and cooperative agreements with respect to the in-
stallation or facility for purposes of this paragraph 
between the Federal Emergency Management Agen-
cy and the State and local governments concerned. 
‘‘(ii) The date that is 180 days after the date 
of the completion of the destruction of lethal chem-
ical agents and munitions at the installation or facil-
ity.’’.
703 
Subtitle D—Intelligence-Related 
Matters 
SEC. 931. TECHNICAL AMENDMENTS TO TITLE 10, UNITED 
STATES CODE, ARISING FROM ENACTMENT 
OF THE INTELLIGENCE REFORM AND TER-
RORISM PREVENTION ACT OF 2004. 
(a) REFERENCES TO HEAD OF INTELLIGENCE COM-
MUNITY.—Title 10, United States Code, is amended by 
striking ‘‘Director of Central Intelligence’’ each place it 
appears in the following provisions and inserting ‘‘Director 
of National Intelligence’’: 
(1) Section 192(c)(2). 
(2) Section 193(d)(2). 
(3) Section 193(e). 
(4) Section 201(a). 
(5) Section 201(c)(1). 
(6) Section 425(a). 
(7) Section 426(a)(3). 
(8) Section 426(b)(2). 
(9) Section 441(c). 
(10) Section 441(d). 
(11) Section 443(d). 
(12) Section 2273(b)(1). 
(13) Section 2723(a).
704 
(b) REFERENCES TO HEAD OF CENTRAL INTEL-
LIGENCE AGENCY.—Such title is further amended by 
striking ‘‘Director of Central Intelligence’’ each place it 
appears in the following provisions and inserting ‘‘Director 
of the Central Intelligence Agency’’: 
(1) Section 431(b)(1). 
(2) Section 444. 
(3) Section 1089(g). 
(c) OTHER AMENDMENTS.— 
(1) SUBSECTION HEADINGS.— 
(A) SECTION 441(c).—The heading of sub-
section (c) of section 441 of such title is amend-
ed by striking ‘‘DIRECTOR OF CENTRAL INTEL-
LIGENCE’’ and inserting ‘‘DIRECTOR
OF NA-
TIONAL INTELLIGENCE’’. 
(B) SECTION
443(d).—The heading of 
subsection (d) of section 443 of such title is 
amended by striking ‘‘DIRECTOR OF CENTRAL 
INTELLIGENCE’’ and inserting ‘‘DIRECTOR OF 
NATIONAL INTELLIGENCE’’. 
(2) SECTION 201.—Section 201 of such title is 
further amended— 
(A) in subsection (b)(1), to read as follows: 
‘‘(1) In the event of a vacancy in a position re-
ferred to in paragraph (2), before appointing an in-
705 
dividual to fill the vacancy or recommending to the 
President an individual to be nominated to fill the 
vacancy, the Secretary of Defense shall obtain the 
concurrence of the Director of National Intelligence 
as provided in section 106(b) of the National Secu-
rity Act of 1947 (50 U.S.C. 403–6(b)).’’; and 
(B) in subsection (c)(1), by striking ‘‘Na-
tional Foreign Intelligence Program’’ and in-
serting ‘‘National Intelligence Program’’. 
Subtitle E—Roles and Missions 
Analysis 
SEC. 941. REQUIREMENT FOR QUADRENNIAL ROLES AND 
MISSIONS REVIEW. 
(a) REQUIREMENT FOR REVIEW.— 
(1) IN GENERAL.—Chapter 2 of title 10, United 
States Code, is amended by inserting after section 
118a the following new section: 
‘‘§ 118b. Quadrennial roles and missions review 
‘‘(a) REVIEW REQUIRED.—The Secretary of Defense 
shall every four years conduct a comprehensive assessment 
(to be known as the ‘quadrennial roles and missions re-
view’) of the roles and missions of the armed forces and 
the core competencies and capabilities of the Department 
of Defense to perform and support such roles and mis-
sions.
706 
‘‘(b) INDEPENDENT
MILITARY
ASSESSMENT
OF 
ROLES AND MISSIONS.—(1) In each year in which the 
Secretary of Defense is required to conduct a comprehen-
sive assessment pursuant to subsection (a), the Chairman 
of the Joint Chiefs of Staff shall prepare and submit to 
the Secretary the Chairman’s assessment of the roles and 
missions of the armed forces and the assignment of func-
tions to the armed forces, together with any recommenda-
tions for changes in assignment that the Chairman con-
siders necessary to achieve maximum efficiency and effec-
tiveness of the armed forces. 
‘‘(2) The Chairman’s assessment shall be conducted 
so as to— 
‘‘(A) organize the significant missions of the 
armed forces into core mission areas that cover 
broad areas of military activity; 
‘‘(B) ensure that core mission areas are defined 
and functions are assigned so as to avoid unneces-
sary duplication of effort among the armed forces; 
and 
‘‘(C) provide the Chairman’s recommendations 
with regard to issues to be addressed by the Sec-
retary of Defense under subsection (c). 
‘‘(c) IDENTIFICATION OF CORE MISSION AREAS AND 
CORE COMPETENCIES AND CAPABILITIES.—Upon receipt
713 
‘‘(3) if the system duplicates a capability al-
ready provided by an existing system, the duplica-
tion provided by such system is necessary and ap-
propriate; and 
‘‘(4) that a cost estimate for the system has 
been submitted and that the level of resources re-
quired to develop and procure the system is con-
sistent with the priority level assigned by the Joint 
Requirements Oversight Council. 
‘‘(b) NOTIFICATION.—With respect to a major sys-
tem certified by the Milestone Decision Authority under 
subsection (a), if the projected cost of the system, at any 
time prior to Milestone B approval, exceeds the cost esti-
mate for the system submitted at the time of the certifi-
cation by at least 25 percent, the program manager for 
the system concerned shall notify the Milestone Decision 
Authority. The Milestone Decision Authority, in consulta-
tion with the Joint Requirements Oversight Council on 
matters related to program requirements and military 
needs, shall determine whether the level of resources re-
quired to develop and procure the system remains con-
sistent with the priority level assigned by the Joint Re-
quirements Oversight Council. The Milestone Decision Au-
thority may withdraw the certification concerned or re-
scind Milestone A approval (or Key Decision Point A ap-