(b) The Secretary of Defense or Secretary of a mili-
tary department may waive the limitations in subsection 
(a), on a case-by-case basis, if the Secretary determines, 
and certifies to the Committees on Appropriations of the 
House of Representatives and the Senate that the grant-
ing of the waiver will reduce the personnel requirements 
or the financial requirements of the department. 
(c) This section does not apply to— 
(1) field operating agencies funded within the 
National Intelligence Program; 
(2) an Army field operating agency established 
to eliminate, mitigate, or counter the effects of im-
provised explosive devices, and, as determined by the 
Secretary of the Army, other similar threats; 
(3) an Army field operating agency established 
to improve the effectiveness and efficiencies of bio-
metric activities and to integrate common biometric 
technologies throughout the Department of Defense; 
or 
(4) an Air Force field operating agency estab-
lished to administer the Air Force Mortuary Affairs 
Program and Mortuary Operations for the Depart-
ment of Defense and authorized Federal entities. 
SEC. 8039. (a) None of the funds appropriated by 
this Act shall be available to convert to contractor per-
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formance an activity or function of the Department of De-
fense that, on or after the date of the enactment of this 
Act, is performed by Department of Defense civilian em-
ployees unless— 
(1) the conversion is based on the result of a 
public-private competition that includes a most effi-
cient and cost effective organization plan developed 
by such activity or function; 
(2) the Competitive Sourcing Official deter-
mines that, over all performance periods stated in 
the solicitation of offers for performance of the ac-
tivity or function, the cost of performance of the ac-
tivity or function by a contractor would be less costly 
to the Department of Defense by an amount that 
equals or exceeds the lesser of— 
(A) 10 percent of the most efficient organi-
zation’s personnel-related costs for performance 
of that activity or function by Federal employ-
ees; or 
(B) $10,000,000; and 
(3) the contractor does not receive an advan-
tage for a proposal that would reduce costs for the 
Department of Defense by— 
(A) not making an employer-sponsored 
health insurance plan available to the workers 
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who are to be employed in the performance of 
that activity or function under the contract; or 
(B) offering to such workers an employer- 
sponsored health benefits plan that requires the 
employer to contribute less towards the pre-
mium or subscription share than the amount 
that is paid by the Department of Defense for 
health benefits for civilian employees under 
chapter 89 of title 5, United States Code. 
(b)(1) The Department of Defense, without regard 
to subsection (a) of this section or subsection (a), (b), or 
(c) of section 2461 of title 10, United States Code, and 
notwithstanding any administrative regulation, require-
ment, or policy to the contrary shall have full authority 
to enter into a contract for the performance of any com-
mercial or industrial type function of the Department of 
Defense that— 
(A) is included on the procurement list estab-
lished pursuant to section 2 of the Javits-Wagner- 
O’Day Act (section 8503 of title 41, United States 
Code); 
(B) is planned to be converted to performance 
by a qualified nonprofit agency for the blind or by 
a qualified nonprofit agency for other severely handi-
capped individuals in accordance with that Act; or 
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(C) is planned to be converted to performance 
by a qualified firm under at least 51 percent owner-
ship by an Indian tribe, as defined in section 4(e) 
of the Indian Self-Determination and Education As-
sistance Act (25 U.S.C. 450b(e)), or a Native Ha-
waiian Organization, as defined in section 8(a)(15) 
of the Small Business Act (15 U.S.C. 637(a)(15)). 
(2) This section shall not apply to depot contracts 
or contracts for depot maintenance as provided in sections 
2469 and 2474 of title 10, United States Code. 
(c) The conversion of any activity or function of the 
Department of Defense under the authority provided by 
this section shall be credited toward any competitive or 
outsourcing goal, target, or measurement that may be es-
tablished by statute, regulation, or policy and is deemed 
to be awarded under the authority of, and in compliance 
with, subsection (h) of section 2304 of title 10, United 
States Code, for the competition or outsourcing of com-
mercial activities. 
(RESCISSIONS) 
SEC. 8040. Of the funds appropriated in Department 
of Defense Appropriations Acts, the following funds are 
hereby rescinded from the following accounts and pro-
grams in the specified amounts: Provided, That no 
amounts may be rescinded from amounts that were des-
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ignated by the Congress for Overseas Contingency Oper-
ations/Global War on Terrorism or as an emergency re-
quirement pursuant to the Concurrent Resolution on the 
Budget or the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended: 
‘‘Aircraft Procurement, Navy’’, 2016/2018, 
$274,000,000; 
‘‘Aircraft Procurement, Air Force’’, 2016/2018, 
$82,700,000; 
‘‘Missile 
Procurement, 
Army’’, 
2017/2019, 
$19,319,000; 
‘‘Procurement of Weapons and Tracked Combat 
Vehicles, Army’’, 2017/2019, $9,764,000; 
‘‘Other 
Procurement, 
Army’’, 
2017/2019, 
$10,000,000; 
‘‘Aircraft Procurement, Navy’’, 2017/2019, 
$105,600,000; 
‘‘Weapons Procurement, Navy’’, 2017/2019, 
$54,122,000; 
‘‘Shipbuilding and Conversion, Navy’’, 2017/ 
2021, $45,116,000; 
‘‘Aircraft Procurement, Air Force’’, 2017/2019, 
$63,293,000; 
‘‘Missile Procurement, Air Force’’, 2017/2019, 
$31,639,000; 
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‘‘Space Procurement, Air Force’’, 2017/2019, 
$15,000,000; 
‘‘Other Procurement, Air Force’’, 2017/2019, 
$105,000,000; 
‘‘Research, Development, Test and Evaluation, 
Navy’’, 2017/2018, $34,128,000; 
‘‘Research, Development, Test and Evaluation, 
Air Force’’, 2017/2018, $41,700,000; 
SEC. 8041. None of the funds available in this Act 
may be used to reduce the authorized positions for mili-
tary technicians (dual status) of the Army National 
Guard, Air National Guard, Army Reserve and Air Force 
Reserve for the purpose of applying any administratively 
imposed civilian personnel ceiling, freeze, or reduction on 
military technicians (dual status), unless such reductions 
are a direct result of a reduction in military force struc-
ture. 
SEC. 8042. None of the funds appropriated or other-
wise made available in this Act may be obligated or ex-
pended for assistance to the Democratic People’s Republic 
of Korea unless specifically appropriated for that purpose. 
SEC. 8043. Funds appropriated in this Act for oper-
ation and maintenance of the Military Departments, Com-
batant Commands and Defense Agencies shall be available 
for reimbursement of pay, allowances and other expenses 
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may waive this restriction on a case-by-case basis by certi-
fying in writing to the Committees on Appropriations of 
the House of Representatives and the Senate, that ade-
quate domestic supplies are not available to meet Depart-
ment of Defense requirements on a timely basis and that 
such an acquisition must be made in order to acquire ca-
pability for national security purposes: Provided further, 
That this restriction shall not apply to the purchase of 
‘‘commercial items’’, as defined by section 103 of title 41, 
United States Code, except that the restriction shall apply 
to ball or roller bearings purchased as end items. 
SEC. 8046. None of the funds made available by this 
Act for Evolved Expendable Launch Vehicle service com-
petitive procurements may be used unless the competitive 
procurements are open for award to all certified providers 
of Evolved Expendable Launch Vehicle-class systems: Pro-
vided, That the award shall be made to the provider that 
offers the best value to the government. 
SEC. 8047. In addition to the amounts appropriated 
or otherwise made available elsewhere in this Act, 
$44,000,000 is hereby appropriated to the Department of 
Defense: Provided, That upon the determination of the 
Secretary of Defense that it shall serve the national inter-
est, the Secretary shall make grants in the amounts speci-
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fied as follows: $20,000,000 to the United Service Organi-
zations and $24,000,000 to the Red Cross. 
SEC. 8048. None of the funds in this Act may be 
used to purchase any supercomputer which is not manu-
factured in the United States, unless the Secretary of De-
fense certifies to the congressional defense committees 
that such an acquisition must be made in order to acquire 
capability for national security purposes that is not avail-
able from United States manufacturers. 
SEC. 8049. Notwithstanding any other provision in 
this Act, the Small Business Innovation Research program 
and the Small Business Technology Transfer program set- 
asides shall be taken proportionally from all programs, 
projects, or activities to the extent they contribute to the 
extramural budget. 
SEC. 8050. None of the funds available to the De-
partment of Defense under this Act shall be obligated or 
expended to pay a contractor under a contract with the 
Department of Defense for costs of any amount paid by 
the contractor to an employee when— 
(1) such costs are for a bonus or otherwise in 
excess of the normal salary paid by the contractor 
to the employee; and 
(2) such bonus is part of restructuring costs as-
sociated with a business combination. 
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(INCLUDING TRANSFER OF FUNDS) 
SEC. 8051. During the current fiscal year, no more 
than $30,000,000 of appropriations made in this Act 
under the heading ‘‘Operation and Maintenance, Defense- 
Wide’’ may be transferred to appropriations available for 
the pay of military personnel, to be merged with, and to 
be available for the same time period as the appropriations 
to which transferred, to be used in support of such per-
sonnel in connection with support and services for eligible 
organizations and activities outside the Department of De-
fense pursuant to section 2012 of title 10, United States 
Code. 
SEC. 8052. During the current fiscal year, in the case 
of an appropriation account of the Department of Defense 
for which the period of availability for obligation has ex-
pired or which has closed under the provisions of section 
1552 of title 31, United States Code, and which has a 
negative unliquidated or unexpended balance, an obliga-
tion or an adjustment of an obligation may be charged 
to any current appropriation account for the same purpose 
as the expired or closed account if— 
(1) the obligation would have been properly 
chargeable (except as to amount) to the expired or 
closed account before the end of the period of avail-
ability or closing of that account; 
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(2) the obligation is not otherwise properly 
chargeable to any current appropriation account of 
the Department of Defense; and 
(3) in the case of an expired account, the obli-
gation is not chargeable to a current appropriation 
of the Department of Defense under the provisions 
of section 1405(b)(8) of the National Defense Au-
thorization Act for Fiscal Year 1991, Public Law 
101–510, as amended (31 U.S.C. 1551 note): Pro-
vided, That in the case of an expired account, if sub-
sequent review or investigation discloses that there 
was not in fact a negative unliquidated or unex-
pended balance in the account, any charge to a cur-
rent account under the authority of this section shall 
be reversed and recorded against the expired ac-
count: Provided further, That the total amount 
charged to a current appropriation under this sec-
tion may not exceed an amount equal to 1 percent 
of the total appropriation for that account. 
SEC. 8053. (a) Notwithstanding any other provision 
of law, the Chief of the National Guard Bureau may per-
mit the use of equipment of the National Guard Distance 
Learning Project by any person or entity on a space-avail-
able, reimbursable basis. The Chief of the National Guard 
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Bureau shall establish the amount of reimbursement for 
such use on a case-by-case basis. 
(b) Amounts collected under subsection (a) shall be 
credited to funds available for the National Guard Dis-
tance Learning Project and be available to defray the costs 
associated with the use of equipment of the project under 
that subsection. Such funds shall be available for such 
purposes without fiscal year limitation. 
SEC. 8054. None of the funds available to the De-
partment of Defense may be obligated to modify command 
and control relationships to give Fleet Forces Command 
operational and administrative control of United States 
Navy forces assigned to the Pacific fleet: Provided, That 
the command and control relationships which existed on 
October 1, 2004, shall remain in force until a written 
modification has been proposed to the House and Senate 
Appropriations Committees: Provided further, That the 
proposed modification may be implemented 30 days after 
the notification unless an objection is received from either 
the House or Senate Appropriations Committees: Provided 
further, That any proposed modification shall not preclude 
the ability of the commander of United States Pacific 
Command to meet operational requirements. 
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(INCLUDING TRANSFER OF FUNDS) 
SEC. 8055. Of the funds appropriated in this Act 
under the heading ‘‘Operation and Maintenance, Defense- 
Wide’’, $25,000,000 shall be for continued implementation 
and expansion of the Sexual Assault Special Victims’ 
Counsel Program: Provided, That the funds are made 
available for transfer to the Department of the Army, the 
Department of the Navy, and the Department of the Air 
Force: Provided further, That funds transferred shall be 
merged with and available for the same purposes and for 
the same time period as the appropriations to which the 
funds are transferred: Provided further, That this transfer 
authority is in addition to any other transfer authority 
provided in this Act. 
SEC. 8056. None of the funds appropriated in title 
IV of this Act may be used to procure end-items for deliv-
ery to military forces for operational training, operational 
use or inventory requirements: Provided, That this restric-
tion does not apply to end-items used in development, 
prototyping, and test activities preceding and leading to 
acceptance for operational use: Provided further, That this 
restriction does not apply to programs funded within the 
National Intelligence Program: Provided further, That the 
Secretary of Defense may waive this restriction on a case- 
by-case basis by certifying in writing to the Committees 
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(c) Subsection (a) does not apply to a limitation re-
garding construction of public vessels, ball and roller bear-
ings, food, and clothing or textile materials as defined by 
section XI (chapters 50–65) of the Harmonized Tariff 
Schedule of the United States and products classified 
under headings 4010, 4202, 4203, 6401 through 6406, 
6505, 7019, 7218 through 7229, 7304.41 through 
7304.49, 7306.40, 7502 through 7508, 8105, 8108, 8109, 
8211, 8215, and 9404. 
SEC. 8058. None of the funds appropriated or other-
wise made available by this or other Department of De-
fense Appropriations Acts may be obligated or expended 
for the purpose of performing repairs or maintenance to 
military family housing units of the Department of De-
fense, including areas in such military family housing 
units that may be used for the purpose of conducting offi-
cial Department of Defense business. 
SEC. 8059. Notwithstanding any other provision of 
law, funds appropriated in this Act under the heading 
‘‘Research, Development, Test and Evaluation, Defense- 
Wide’’ for any new start advanced concept technology 
demonstration project or joint capability demonstration 
project may only be obligated 45 days after a report, in-
cluding a description of the project, the planned acquisi-
tion and transition strategy and its estimated annual and 
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total cost, has been provided in writing to the congres-
sional defense committees: Provided, That the Secretary 
of Defense may waive this restriction on a case-by-case 
basis by certifying to the congressional defense committees 
that it is in the national interest to do so. 
SEC. 8060. The Secretary of Defense shall continue 
to provide a classified quarterly report to the House and 
Senate Appropriations Committees, Subcommittees on 
Defense on certain matters as directed in the classified 
annex accompanying this Act. 
SEC. 8061. Notwithstanding section 12310(b) of title 
10, United States Code, a Reserve who is a member of 
the National Guard serving on full-time National Guard 
duty under section 502(f) of title 32, United States Code, 
may perform duties in support of the ground-based ele-
ments of the National Ballistic Missile Defense System. 
SEC. 8062. None of the funds provided in this Act 
may be used to transfer to any nongovernmental entity 
ammunition held by the Department of Defense that has 
a center-fire cartridge and a United States military no-
menclature designation of ‘‘armor penetrator’’, ‘‘armor 
piercing (AP)’’, ‘‘armor piercing incendiary (API)’’, or 
‘‘armor-piercing incendiary tracer (API–T)’’, except to an 
entity performing demilitarization services for the Depart-
ment of Defense under a contract that requires the entity 
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to demonstrate to the satisfaction of the Department of 
Defense that armor piercing projectiles are either: 
(1) rendered incapable of reuse by the demili-
tarization process; or 
(2) used to manufacture ammunition pursuant 
to a contract with the Department of Defense or the 
manufacture of ammunition for export pursuant to 
a License for Permanent Export of Unclassified 
Military Articles issued by the Department of State. 
SEC. 8063. Notwithstanding any other provision of 
law, the Chief of the National Guard Bureau, or his des-
ignee, may waive payment of all or part of the consider-
ation that otherwise would be required under section 2667 
of title 10, United States Code, in the case of a lease of 
personal property for a period not in excess of 1 year to 
any organization specified in section 508(d) of title 32, 
United States Code, or any other youth, social, or fra-
ternal nonprofit organization as may be approved by the 
Chief of the National Guard Bureau, or his designee, on 
a case-by-case basis. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 8064. Of the amounts appropriated in this Act 
under the heading ‘‘Operation and Maintenance, Army’’, 
$66,881,780 shall remain available until expended: Pro-
vided, That, notwithstanding any other provision of law, 
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the Secretary of Defense is authorized to transfer such 
funds to other activities of the Federal Government: Pro-
vided further, That the Secretary of Defense is authorized 
to enter into and carry out contracts for the acquisition 
of real property, construction, personal services, and oper-
ations related to projects carrying out the purposes of this 
section: Provided further, That contracts entered into 
under the authority of this section may provide for such 
indemnification as the Secretary determines to be nec-
essary: Provided further, That projects authorized by this 
section shall comply with applicable Federal, State, and 
local law to the maximum extent consistent with the na-
tional security, as determined by the Secretary of Defense. 
SEC. 8065. (a) None of the funds appropriated in this 
or any other Act may be used to take any action to mod-
ify— 
(1) the appropriations account structure for the 
National Intelligence Program budget, including 
through the creation of a new appropriation or new 
appropriation account; 
(2) how the National Intelligence Program 
budget request is presented in the unclassified P–1, 
R–1, and O–1 documents supporting the Depart-
ment of Defense budget request; 
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(3) the process by which the National Intel-
ligence Program appropriations are apportioned to 
the executing agencies; or 
(4) the process by which the National Intel-
ligence Program appropriations are allotted, obli-
gated and disbursed. 
(b) Nothing in section (a) shall be construed to pro-
hibit the merger of programs or changes to the National 
Intelligence Program budget at or below the Expenditure 
Center level, provided such change is otherwise in accord-
ance with paragraphs (a)(1)–(3). 
(c) The Director of National Intelligence and the Sec-
retary of Defense may jointly, only for the purposes of 
achieving auditable financial statements and improving 
fiscal reporting, study and develop detailed proposals for 
alternative financial management processes. Such study 
shall include a comprehensive counterintelligence risk as-
sessment to ensure that none of the alternative processes 
will adversely affect counterintelligence. 
(d) Upon development of the detailed proposals de-
fined under subsection (c), the Director of National Intel-
ligence and the Secretary of Defense shall— 
(1) provide the proposed alternatives to all af-
fected agencies; 
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