Department of Defense Authorization Act, 1982
PL 97-86 (S.815), enacted 12/01/1981

PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1099 
Public Law 97-86 
97th Congress 
An Act 
To authorize appropriations for fiscal year 1982 for the Armed Forces for procure- 
Dec. 1, 1981 
ment, for research, development, test, and evaluation, and for operation and 
[S. 815] 
maintenance, to prescribe personnel strengths for such fiscal year for the Armed 
Forces and for civilian employees of the Department of Defense, to authorize 
appropriations for such fiscal year for civil defense, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may Department of 
be cited as the "Department of Defense Authorization Act, 1982". 
A^t^^^ t" 
TITLE I—PROCUREMENT 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 101. Funds are hereby authorized to be appropriated for fiscal 
year 1982 for the use of the Armed Forces of the United States for 
procurement of aircraft, missiles, naval vessels, tracked combat 
vehicles, torpedoes, and other weapons in amounts as follows: 
AIRCRAFT 
For aircraft: for the Army, $1,910,200,000; for the Navy and the 
Marine Corps, $9,302,500,000; for the Air Force, $13,773,698,000, 
of which $1,801,000,000 is available only for procurement of long-
range combat aircraft. 
MISSILES 
For missiles: for the Army, $2,146,900,000; for the Navy, 
$2,567,000,000; for the Marine Corps, $223,024,000; for the Air 
Force, $4,186,846,000. 
NAVAL VESSELS 
For naval vessels: for the Navy, $8,795,900,000. 
TRACKED COMBAT VEHICLES 
For tracked combat vehicles: for the Army, $3,251,200,000; for 
the Marine Corps, $281,739,000. 
TORPEDOES 
For torpedoes and related support equipment: for the Navy, 
$516,600,000. 
OTHER WEAPONS 
For other weapons: for the Army, $655,400,000; for the Navy, 
$200,200,000; for the Marine Corps, $136,344,000; for the Air 
Force, $3,047,000. 
Act, 1982. 
95 STAT. 1100 
PUBLIC LAW 97-86—DEC. 1, 1981 
ARMY NATIONAL GUARD 
For tracked combat vehicles and other weapons: for the Army 
National Guard, $50,000,000, which amount shall be in addition 
to any other funds authorized to be appropriated by this or any 
other Act. 
CONTRIBUTION TO AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) 
FOR NATO 
SEC. 102. Of the funds authorized to be appropriated in this title for 
aircraft for the Air Force, the sum of $344,300,000 is available only for 
contribution by the United States as its share of the cost for fiscal 
year 1982 of acquisition by the North Atlantic Treaty Organization of 
the Airborne Warning and Control System (AWACS). 
Waiver. 
Contract 
authority. 
CERTAIN AUTHORITY PROVIDED SECRETARY OF DEFENSE IN CONNECTION 
WITH THE NATO AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) 
PROGRAM 
SEC 103. (a) During fiscal year 1982, the Secretary of Defense, in 
carrying out the Multilateral Memorandum of Understanding 
Between the North Atlantic Treaty Organization (NATO) Ministers 
of Defence on the NATO E-3A Cooperative Programme, signed by the 
Secretary of Defense on December 6,1978, may— 
(1) waive reimbursement for the cost of the following functions 
performed by personnel other than personnel employed in the 
United States Air Force Airborne Warning and Control System 
(AWACS) program office: 
(A) auditing; 
(B) quality assurance; 
(C) codification; 
(D) inspection; 
(E) contract administration; 
(F) acceptance testing; 
(G) certification services; and 
(H) planning, programing, and management services; 
(2) waive any surcharge for administrative services otherwise 
chargeable; and 
(3) in connection with the NATO E-3A Cooperative Pro-
gramme for fiscal year 1982, assume contingent liability for— 
(A) program losses resulting from the gross negligence of 
any contracting officer of the United States; 
(B) identifiable taxes, customs duties, and other charges 
levied within the United States on the program; and 
(C) the United States share of the unfunded termination 
liability. 
Ot)) Authority under this section to enter into contracts shall be 
effective for any fiscal year only to such extent or in such amounts as 
are provided in appropriation Acts. 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1101 
TITLE n—RESEARCH, DEVELOPMENT, TEST, AND 
EVALUATION 
AUTHORIZATION OP APPROPRIATIONS 
SEC. 201. (a) Funds are hereby authorized to be appropriated for 
fiscal year 1982 for the use of the Armed Forces of the United States 
for research, development, test, and evaluation in amounts as follows: 
For the Army, $3,746,299,000. 
For the Navy (including the Marine Corps), $6,072,167,000. 
For the Air Force, $8,686,800,000. 
For the Defense Agencies, $1,899,847,000, of which $53,000,000 
is authorized for the activities of the Director o
f
f Test and 
Evaluation, Defense. 
0)) In addition to the funds authorized to be appropriated in 
subsection (a), there are authorized to be appropriated for fiscal year 
1982 such additional sums as may be necessary for increases in 
salary, pay, retirement, and other employee benefits authorized by 
law for civilian employees of the Department of Defense whose 
compensation is provided for by funds authorized to be appropriated 
in such subsection. 
LONG-RANGE COMBAT AIRCRAFT 
SEC. 202. (a) None of the funds appropriated pursuant to an 
authorization of appropriations in this Act may be obligated or 
expended for the full-scale engineering development or procurement 
of a long-range combat aircraft before November 18,1981, and none 
of such funds may be obligated or expended for such purposes on or 
after such date if, before such date, the Senate and the House of 
Representatives have agreed to resolutions of their respective Houses 
expressing disapproval of the President's decision announced on 
October 2, 1981, regarding the development of long-range combat 
aircraft. 
(b) For the purposes of this section, the term "resolution" means "Resolution." 
only a resolution of either House of Congress, the matter after the 
resolving clause of which is as follows: "That the 
does not favor the decision of the President announced on October 2, 
1981, regarding the development of long-range combat aircraft", the 
blank space therein being filled with the name of the resolving 
House. 
(c) Subsections (d) through (i) are enacted by the Congress— 
(1) as an exercise of the rulemaking power of the Senate and as 
such they are deemed a part of the rules of the Senate, but 
applicable only with respect to the procedure to be followed in 
the Senate in the case of resolutions described in subsection (b), 
and they supersede other rules of the Senate only to the extent 
that they are inconsistent therewith; and 
(2) with full recognition of the constitutional right of the 
Senate to change such rules at any time, in the same manner and 
to the same extent as in the case of any other rules of the Senate. 
(d) A resolution In the Senate shall be referred to the Committee on 
Armed Services of the Senate. 
(e) If the Committee on Armed Services of the Senate has not 
reported a resolution referred to it at the end of seven calendar days 
after its introduction, it is in order to move either to discharge the 
committee from further consideration of the resolution or to dis-
95 STAT. 1102 
PUBLIC LAW 97-86—DEC. 1, 1981 
Debate. 
Appeals. 
charge the committee from further consideration of any other resolu-
tion which has been referred to the committee. 
(fl A motion to discharge may be made only by a Senator favoring 
the resolution, is highly privileged (except that it may not be made 
after the committee has reported a resolution), and debate thereon 
shall be limited to not more than one hour, to be divided equally 
between those favoring and those opposing the resolution. An amend-
ment to the motion is not in order, and it is not in order to move to 
reconsider the vote by which the motion is agreed to or disagreed to. 
(g) If the motion to discharge is agreed to or disagreed to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution. 
(h) When the Committee on Armed Services of the Senate has 
reported, or has been discharged from further consideration of, a 
resolution, it is at any time thereafter in order (even though a 
previous motion to the same effect has been disagreed to) to move to 
proceed to the consideration of the resolution. The motion is highly 
privileged and is not debatable. The motion is not subject to amend-
ment, or to a motion to postpone, or a motion to proceed to the 
consideration of other business. A motion to reconsider the vote by 
which the motion is a^eed to or disagreed to shall not be in order. 
(i)(l) Debate in the Senate on the resolution shall be limited to not 
more than ten hours, which shall be divided equally between those 
favoring and those opposing the resolution. A motion further to limit 
debate is not debatable. An amendment to, or motion to recommit, 
the resolution is not in order. A motion to reconsider the vote by 
which the resolution is agreed to or disagreed to is not in order. 
(2) Motions in the Senate to postpone, made with respect to the 
discharge from committee or the consideration of a resolution, and 
motions to proceed to the consideration of other business, shall be 
decided without debate. 
(3) Appeals in the Senate from the decisions of the Chair relating to 
the application of the rules of the Senate to the procedure relating to 
a resolution shall be decided without debate. 
'Resolution." 
MX MISSILE AND BASING MODE 
SEC. 203. (a)(1) None of the funds appropriated pursuant to an 
authorization of appropriations in this Act may be obligated or 
expended for development of an operational basing mode for the MX 
missile before November 18, 1981, and none of such funds may be 
obligated or expended for such purpose on or after such date if, before 
such date, the Senate and the House of Representatives have agreed 
to resolutions of their respective Houses expressing disapproval of 
the President's decision announced on October 2,1981, regarding the 
basing mode for the MX missile. 
(2) Development of the MX missile system shall continue so as to 
achieve an initial operational capability (IOC) for the MX missile 
system not later than December 31,1986. 
(b) For the purposes of this section, the term "resolution" means 
only a resolution of either House of Congress, the matter after the 
resolving clause of which is as follows: "That the 
does not favor the decision of the President announced on October 2, 
1981, regarding the basing mode for the MX missile", the blank space 
therein being filled with the name of the resolving House. 
(c) Subsections (d) through (i) are enacted by the Congress— 
(1) as an exercise of the rulemaking power of the Senate and as 
such they are deemed a part of the rules of the Senate, but 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1103 
applicable only with respect to the procedure to be followed in 
the Senate in the case of resolutions described in subsection (b), 
and they supersede other rules of the Senate only to the extent 
that they are inconsistent therewith; and 
(2) with full recognition of the constitutional right of the 
Senate to change such rules at any time, in the same manner and 
to the same extent as in the case of any other rules of the Senate. 
(d) A resolution in the Senate shall be referred to the Committee on 
Armed Services of the Senate. 
(e) If the Committee on Armed Services of the Senate has not 
reported a resolution referred to it at the end of seven calendar days 
after its introduction, it is in order to move either to discharge the 
committee from further consideration of the resolution or to dis-
charge the committee from further consideration of any other resolu-
tion which has been referred to the committee. 
(f) A motion to discharge may be made only by a Senator favoring 
the resolution, is highly privileged (except that it may not be made 
after the committee has reported a resolution), and debate thereon 
shall be limited to not more than one hour, to be divided equally 
between those favoring and those opposing the resolution. An amend-
ment to the motion is not in order, and it is not in order tc move to 
reconsider the vote by which the motion is agreed to or disagreed to. 
(g) If the motion to discharge is agreed to or disagreedf to, the 
motion may not be renewed, nor may another motion to discharge the 
committee be made with respect to any other resolution. 
(h) When the Committee on Armed Services of the Senate has 
reported, or has been discharged from further consideration of, a 
resolution, it is at any time thereafter in order (even though a 
previous motion to the same effect has been disagreed to) to move to 
proceed to the consideration of the resolution. The motion is highly 
privileged and is not debatable. The motion is not subject to amend-
ment, or to a motion to postpone, or a motion to proceed to the 
consideration of other business. A motion to reconsider the vote by 
which the motion is agreed to or disagreed to shall not be in order. 
(i)(l) Debate in the Senate on the resolution shsill be limited to not Debate. 
more than ten hours, which shall be divided equally between those 
favoring and those opposing the resolution. A motion further to limit 
debate is not debatable. An amendment to, or motion to recommit, 
the resolution is not in order. A motion to reconsider the vote by 
which the resolution is agreed to or disagreed to is not in order. 
(2) Motions in the Senate to postpone, made with respect to the 
discharge from committee or the consideration of a resolution, and 
motions to proceed to the consideration of other business, shall be 
decided without debate. 
(3) Appeals in the Senate from the decisions of the Chair relating to Appeals. 
the application of the rules of the Senate to the procedure relating to 
a resolution shall be decided without debate. 
TITLE III—OPERATION AND MAINTENANCE 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 301. (a) Funds are hereby authorized to be appropriated for 
fiscal year 1982 for the use of the Armed Forces of the United States 
and other activities and agencies of the Department of Defense for 
operation and mainteneince in amounts as follows: 
For the Army, $17,024,044,000. 
For the Navy, $20,130,410,000. 
95 STAT. 1104 
PUBLIC LAW 97-86--DEC. 1, 1981 
For the Air Force, $18,898,140,000. 
For the Marine Corps, $1,249,939,000. 
For Defense-wide activities, $4,859,207,000. 
(b) In addition to the funds authorized to be appropriated in 
subsection (a), there are authorized to be appropriated for fiscal year 
1982 such additional sums as may be necessary (1) for increases in 
salary, pay, retirement, and other employee benefits authorized by 
law for civilian emi)loyees of the Department of Defense whose 
compensation is provided for by funds authorized to be appropriated 
in such subsection, and (2) for unbudgeted increases in fuel costs and 
for increases as the result of inflation in the cost of activities 
authorized by subsection (a). 
MODIFICATION OF ANNUAL OPERATION AND MAINTENANCE REPORT 
SEC. 302. Section 138(e) of title 10, United States Code, is amended 
by striking out paragraphs (3) and (4). 
PRESERVATION OF MILITARY NATURE OF VETERINARY SUPPORT TO 
DEFENSE RESEARCH AND DEVELOPMENT ACTIVITIES 
SEC. 303. None of the funds appropriated pursuant to an authoriza-
tion of appropriations contained in this Act may be used for the 
purpose of converting military veterinary positions that are support-
ing research and development activities of the Department of 
Defense or of any of the Armed Forces to civilian positions. 
PROHIBITION OF CONTRACTING OUT ENTIRE MEDICAL FACIUTIES 
SEC. 304. None of the funds appropriated pursuant to an authoriza-
tion of appropriations contained in this Act may be used for the 
purpose of contracting out an entire medical facility. 
LEASED SATELLITE COMMUNICATIONS (LEASAT) SYSTEM 
SEC. 305. Of the amount authorized to be appropriated in section 
301 for operation and maintenance of the Navy, $67,000,000 is 
available for the Leased Satellite Communications (LEASAT) system. 
TITLE IV—ACTIVE FORCES 
AUTHORIZATION OF END STRENGTHS 
SEC. 401. The Armed Forces are authorized strengths for active 
duty personnel as of September 30,1982, as follows: 
(1) The Army, 780,300. 
(2) The Navy, 554,600. 
(3) The Marine Corps, 192,100. 
(4) The Air Force, 580,800. 
QUAUTY CONTROL ON ENUSTMENTS 
SEC. 402. (a) Section 302(a) of the Department of Defense Authoriza-
tion Act, 1981 (Public Law 96-342; 10 U.S.C. 520 note) is amended by 
striking out "October 1,1980" and "September 30,1981" and insert-
ing in lieu thereof "October 1, 1981'^ and "September 30, 1982", 
respectively. 
(DXD Section 520 of title 10, United States (Ilode, is amended— 
(A) by inserting "(a)" before "For" in the first sentence; and 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1105 
(B) by adding at the end thereof the following new subsection: 
"(b) A person who is not a high school graduate may not be accepted 
for enlistment in the armed forces unless the score of that person on 
the Armed Forces Qualification Test is at or above the thirty-first 
percentile.". 
(2) The amendments made by paragraph (1) shall take effect at the 
end of the 30-day period beginning on the date of the enactment of 
this Act. 
Effective date. 
10 u s e 520 note. 
DESIGNATION OF AIR FORCE PHYSICIAN ASSISTANTS AS COMMISSIONED 
OFFICERS 
SEC. 403. Section 8067(f) of title 10, United States Code, is amended 
by inserting ", including physician assistant functions," after 
"functions". 
REPEAL OF LIMITATION ON DEPENDENTS OVERSEAS 
SEC 404. Section 406 of title 37, United States Code, is amended— 
(1) by striking out "and subsection (i) of this section" in 
subsection (a); 
(2) by striking out "Except as provided in subsection (i) of this 
section, in" in subsection (h) and inserting in lieu thereof "In"; 
and 
(3) by striking out subsection (i) and inserting in lieu thereof 
the following: 
"(i) The Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and House of Representatives a report 
at the end of each fiscal year quarter stating— 
"(1) the number of dependents who during the preceding 
quarter were accompanying members of the Army, Navy, Air 
Force, and Marine Corps who were stationed outside the United 
States and were authorized by the Secretary concerned to receive 
allowances or transportation for dependents under subsection (a) 
or (h) of this section; and 
"(2) the number of dependents who during the preceding 
quarter were accompanying members of the Army, Navy, Air 
Force, and Marine Corps who were stationed outside the United 
States and were not authorized to receive such allowances or 
transportation.". 
Report to 
congressional 
committees. 
CHANGE OF TITLE OF NEW PERMANENT FLAG GRADE FOR THE NAVY 
FROM COMMODORE ADMIRAL TO COMMODORE 
SEC. 405. (a) Section 5501 of title 10, United States Code, is amended 
by striking out "admiral" in clause (4) after "Commodore". 
(b)(1) The following sections of title 10, United States Code, are 
amended by striking out "admiral" after "commodore" each place it 
appears: 101(41), 525(a), 601(c)(2), 611(a), 612(aX3), 619(a)(2XB), 
619(c)(2)(A)(ii), 625(a), 625(c), 634, 635, 637(bX2), 638(aX3), 638(b), 638(c), 
645(l)(AXii), 5138(a), 5149(b), 5155(c), 5442, 5444, 5457(a), and 6389(f). 
(2) Section 5444 of such title is amended by striking out "commo-
dore admirals" in subsections (a) and (f) and inserting in lieu thereof 
"commodores". 
(3) The tables in sections 5442(a) and 5444(a) of such title are 
amended by striking out "commodore admirals" and inserting in lieu 
thereof "commodores". 
(4)(A) The heading of section 625 of such title is amended by 
striking out the last word. 
95 STAT. 1106 
PUBLIC LAW 97-86—DEC. 1, 1981 
10 use 619. 
(B) The item relating to such section in the table of sections at the 
beginning of subchapter n of chapter 36 of such title is amended by 
stnking out the last word. 
(5XA) The heading of 
section 635 of 
such title is amended to read as 
follows: 
"§635. Retirement for years of service: regular brigadier generals 
and commodores*'. 
(B) The item relating to such section in the table of sections at the 
beginning of subchapter in of chapter 36 of such title is amended to 
read as follows: 
"685. Retirement for years of service: r^ular brigadier generals and commodores.". 
(6XA) The heading of 
section 5442 of 
such title is amended to read as 
follows: 
''§5442. Navy: line officers on active duty; commodores and rear 
admirals**. 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 533 of such title is amended to read as follows: 
"5442. Navy: line officers on active duty; commodores and rear admirals.". 
(7XA) The heading of 
section 5444 of 
such title is amended to read as 
follows: 
"§5444. Navy: staff corps officers on active duty; commodores and 
rear admirals**. 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 533 of such title is amended to read as follows: 
"5444. Navy: staff corps officers on active duty; commodores and rear admirals.". 
(8) The table in section 741(a) of such title is amended by striking 
out "admiral" after "Commodore". 
(c) The table in section 201(a) of title 37, United States Code, is 
amended by striking out "admiral" after "Commodore" in the third 
colunm. 
1
0 use 611 note. 
(dXD Soctiou 614 of the Defense Officer Personnel Management 
Act is amended by striking out "admiral" after "commodore" each 
place it appears. 
(2XA) The heading of such section is amended to read as follows: 
"TRANSITION PROVISIONS TO NEW COMMODORE GRADE". 
(B) The item relating to such section in the table of contents in 
section 1(b) of 
such Act is amended to read as follows: 
"Sec. 614. Transition provisions to new commodore grade.". 
>
i 
«
^
e p. 134. 
(e) Section 621(b) of 
the Defense Officer Personnel Management Act 
1
0 use 611 note. ^ amended by striking out "admiral" after "commodore". 
Effective date. 
(f) The amendments made by this section shall take effect as of 
10 u s e 101 note 
September 15,1981 
EXTENSION OF PILOT DEPARTMENT OF DEFENSE EDUCATIONAL LOAN 
REPAYMENT PROGRAM 
SEC. 406. Section 902^) of the Department of Defense Authoriza-
1
0 use 2141 
tion 
Act, 1981 (Public Law 96-342; 94 Stat. 1115), is amended by 
note. 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1107 
striking out "October 1, 1981" and inserting in lieu thereof "Octo-
berUSsS". 
TITLE V—RESERVE FORCES 
AUTHORIZATION OF AVERAGE STRENGTHS FOR SELECTED RESERVE 
SEC. 501. (a) For fiscal year 1982, the Selected Reserve of the reserve lo use 26i 
components of the Armed Forces shall be programed to attain "^'^^ 
average strengths of 
not less than the following: 
(1) The Army National Guard of the United States, 392,800. 
(2) The Army Reserve, 235,300. 
(3) The Naval Reserve, 87,600. 
(4) The Marine Corps Reserve, 37,600. 
(5) The Air National Guard of the United States, 98,600. 
(6) The Air Force Reserve, 62,800. 
(7) The Coast Guard Reserve, 12,000. 
db) The average strength prescribed by subsection (a) for the 
Selected Reserve of any reserve component shall be proportionately 
r^uced by (1) the total authorized strength of units organized to 
serve as units of 
the Selected Reserve of 
such component which are on 
active duty (other thsm for training) at any time during the fiscal 
year, and (2) the total number of individual members not in units 
organized to serve as units of the Selected Reserve of such component 
who are on active duty (other than for training or for unsatisfactory 
participation in traimng) without their consent at any time during 
the fiscal year. Whenever such units or such individual members are 
released from active duty during any fiscal year, the average strength 
prescribed for such fiscal year for the Selected Reserve of such 
reserve component shall be proportionately increased by the total 
authorized strength of such units and by the total number of such 
individual members. 
AUTHORIZATION OF END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN 
SUPPORT OF THE RESERVES 
SEC. 502. (a) Within the average strengths prescribed in section 501, 
the reserve components of the Armed Forces are authorized as of 
September 30,1982, the following number of Reserves to be serving 
on full-time active duty for the purpose of organizing, administering, 
recruiting, instructing, or training the reserve components: 
(1) The Army National Guard of the United States, 11,439. 
(2) The Army Reserve, 6,285. 
(3) The Naval Reserve, 208. 
(4) The Marine Corps Reserve, 447. 
(5) The Air National Guard of 
the United States, 3,312. 
(6) The Air Force Reserve, 701. 
(b) Upon a determination by the Secretary of Defense that such 
action is in the national interest, the end strengths prescribed by 
subsection Ta) may be increased by a total of not more than the 
number equal to 2 percent of 
the total of 
the end strengths prescribed. 
INCREASE IN NUMBER OF CERTAIN PERSONNEL AUTHORIZED TO BE ON 
ACTIVE DUTY IN SUPPORT OF THE RESERVE COMPONENTS 
SEC. 503. Section 517 of title 10, United States Ck)de, is amended— 
(1) by striking out the table in subsection (b) and inserting in 
lieu thereof the following: 
95 STAT. 1108 
PUBLIC LAW 97-86—DEC. 1, 1981 
A:_ 
Ma-
"Grade 
Army Navy rC^L 
rine 
Corps 
E-9 
222 
146 
76 
4 
E-8 
908 
319 
307 
12"; 
and 
(2) by adding at the end thereof the following new subsection: 
"(c) Whenever the number of members serving in pay grade E-9 is 
less than the number authorized for that grade under subsection (a), 
or whenever the number of members serving in pay grade E-9 for 
duty described in subsection (b) is less than the number authorized 
for that grade under subsection (b), the difference between the two 
numbers may be appUed to increase the number authorized under 
such subsection for pay grade E-8.". 
(b) The columns under the headings "Army" and "Air Force" in the 
table contained in section 524(a) of such title are amended to read as 
follows: 
"^""y 
Force 
1,105 
189 
551 
194 
171 
147". 
DEFENSE MOBIUZATION CAPABIUTY STUDIES 
Report to 
SEC 504. (a) The Secretary of Defense shall submit to the Commit-
congressionai 
^gg QJJ Armed Services of the Senate and the House of Representa-
commi ees. 
tives, not later than February 1,1982, a written report containing a 
plan for resolving the existing shortage in pretrained military man-
power required for a mobilization. The Secretary shall include in that 
report— 
(1) a detailed explanation for the total number of pretrained 
personnel estimated to be needed in the event of full military 
mobilization; 
(2) alternatives for eliminating, by September 30, 1984, the 
shortage in pretrained manpower needed for military mobiliza-
tion during a war or other national emergency, including— 
(A) approaches under which persons would be inducted for 
service m the Individual Ready Reserve of the reserve 
components of 
the Armed Forces, and 
(B) approaches which do not provide for involuntary serv-
ice in the Individual Ready Reserve; and 
(3) a detailed assessment of each of the various approaches 
addressed, including an assessment of the extent to which each 
will eliminate the shortages in pretrained military manpower in 
the Individual Ready Reserve. 
(b) The Secretary of Defense shall conduct a study of the potential 
impact on military capability during an emergency or mobilization of 
the use of Department of Defense civilian employees and of employ-
ees of private contractors who are performing work for the Depart-
ment of Defense on a contractual basis who are not subject to the 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1109 
Uniform Code of MUitary Justice. The Secretary of Defense shall 
submit the results of such study to the Congress not later than 
February 1,1982. 
EXTENSION OF AUTHORITY FOR SELECTED RESERVE APFIUATION BONUS 
SEC. 505. Section 308e(e) of title 37, United States Code, is amended 
by striking out "September 30, 1981" and inserting in lieu thereof 
"September 30,1985^'. 
TITLE VI—CIVILIAN PERSONNEL 
Report to 
Congress. 
Report to 
congressional 
committees. 
AUTHORIZATION OF END STRENGTHS 
SEC. 601. (a) The Department of Defense is authorized a strength in 
civilian personnel, as of September 30,1982, of 1,024,500. 
(b)(1) The strength for civilian personnel prescribed in subsection 
(a) shall be apportioned among the Department of the Army, the 
Department of the Navy, the Department of the Air Force, and the 
agencies of the Department of Defense (other than the military 
departments) in such numbers as the Secretary of Defense shall 
prescribe. The Secretary of Defense shall report to the Congress 
within sixty days after the date of the enactment of this Act on the 
manner in which the initial allocation of civilian personnel is made 
among the military departments and the agencies of the Department 
of Defense (other than the military departments) and shall include 
the rationale for such allocation. 
(2XA) Of the number of civilian personnel allocated to the Depart-
ment of the Army pursuant to paragraph (1), the Secretary of the 
Army shall use not less than 16,800 of such number to relieve 
military personnel for the performance of other duties. Not more 
than 5,000 of 
such 16,800 personnel may be indirect hires. 
(B) The Secretary of the Army shall submit a written report to the 
Committees on Armed Services of the Senate and House of Repre-
sentatives not later than February 1,1982, specifying how the 16,800 
civilian personnel referred to in subparagraph (A) are to be utilized. 
The Secretary shall also indicate in such report (i) the extent to which 
such civilian personnel will be used to fill positions currently held by 
noncommissioned officers, and (ii) the number of such noncommis-
sioned officers who will be assigned to combat units by virtue of the 
use of such civilian personnel in such positions. 
(c) In computing the strength for civilian personnel, there shall be Employment. 
included all direct-hire and indirect-hire civilian personnel employed 
to perform military functions administered by the Department of 
Defense (other than those performed by the National Security 
Agency) whether employed on a full-time, part-time, or intermittent 
basis, but excluding special emplo3rment categories for students and 
disadvantaged youth such as the stay-in-school campaign, the tempo-
rary summer aid program and the Federal junior fellowship program 
and personnel participating in the worker-trainee opportunity pro-
gram. Personnel employed under a part-time career employment 
program established by section 3402 of title 5, United States Code, 
shall be counted as prescribed by section 3404 of that title. Whenever 
a function, power, or duty, or activity is transferred or assigned to a 
department or agency of the Department of Defense from a depart-
ment or agency outeide of the Department of Defense, or from 
another department or agency within the Department of Defense, the 
civilian personnel end-strength authorized for such departments or 
Transfer of 
functions. 
95 STAT. 1110 
PUBLIC LAW 97-86—DEC. 1, 1981 
Notification to 
Congress. 
agencies of the Department of Defense affected shall be adjusted to 
reflect any increases or decreases in civilian personnel required as a 
result of 
such transfer or assignment. 
(d) When the Secretaiy of Defense determines that such action is 
necessary in the national interest or if any conversion of commercial-
and industrial-type functions from performance by Department of 
Defense personnel to performance by private contractors which was 
anticipated to be made during flscal year 1982 in the budget of the 
President submitted for such flscal year is not determined to be 
appropriate for such conversion under established administrative 
criteria, the Secretary of Defense may authorize the employment of 
civilian personnel in excess of the number authorized by subsection 
(a), but such additional number may not exceed 2 percent of the total 
number of civilian personnel authorized for the Department of 
Defense by subsection (a). The Secretary of Defense shall promptly 
notify the Congress of any authorization to increase civilian person-
nel strength under this subsection. 
REPEAL OF REQUIREMENT FOR REDUCTION IN NUMBER OF SENIOR-
GRADE CIVIUAN EMPLOYEES 
SEC. 602. Section 811(a) of the Department of Defense Appropri-
ation Authorization Act, 1978 (10 U.S.C. 131 note), is amended— 
(1) by striking out paragraph (2); and 
(2) by redesignating paragraph (3) as paragraph (2) and by 
striking out "paragraphs (1) and (2)" in such paragraph and 
inserting in lieu thereof "paragraph (1)". 
10 u s e 2360. 
5 u s e 8101 et 
seq. 
28 u s e 2671 et 
seq. 
Regulations. 
STUDENTS EMPLOYED IN RESEARCH AND DEVELOPMENT LABORATORIES 
SEC. 603. (a) Chapter 139 of title 10, United States Code, is amended 
by adding at the end thereof the following new section: 
"§2360. Research and development laboratories: contracts for 
services of university students 
"(a) Subject to the availability of appropriations for such purpose, 
the Secretary of Defense may procure by contract under the author-
ity of this section the temporary or intermittent services of students 
at institutions of higher learning for the purpose of providing 
technical support at defense research and development laboratories. 
Such contracts may be made directly with such students or with 
nonproflt organizations employing such students. 
"Ob) Students providing services pursuant to a contract made under 
subsection (a) shall be considered to be employees for the purposes of 
chapter 81 of title 5, relating to compensation for work injuries, and 
to be employees of the government for the purposes of chapter 171 of 
title 28, relating to tort claims. Such students who are not otherwise 
employed by the Federal Government shall not be considered to be 
Federal employees for any other purpose. 
"(c) The Secretary of Defense shall prescribe regulations to carry 
out this section. Such regulations shall include definitions for the 
purposes of this section of the terms 'student', 'institution of higher 
learning', and 'nonprofit organization'.". 
(b) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"2360. Research and development laboratories: contracts for services of university 
students.". 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1111 
TITLE Vn—MILITARY TRAINING STUDENT LOADS 
AUTHORIZATION OP TRAINING STUDENT LOADS 
SEC. 701. (a) For fiscal year 1982, the components of the Armed 
Forces are authorized average military training student loads as 
follows: 
(1) The Army, 57,996. 
(2) The Navy, 65,133. 
(3) The Marine Corps, 18,311. 
(4) The Air Force, 46,389. 
(5) The Army National Guard of the United States, 7,467. 
(6) The Army Reserve, 8,456. 
(7) The Naval Reserve, 1,041. 
(8) The Marine Corps Reserve, 2,835. 
(9) The Air National Guard of the United States, 2,377. 
(10) The Air Force Reserve, 1,405. 
(b) In addition to the number authorized in subsection (a), the 
following components of the Armed Forces are authorized a military 
training student load to be utilized solely for one station unit training 
of 
not less than the following: 
(1) The Army, 17,732. 
(2) The Army National Guard of the United States, 7,070. 
(3) The Army Reserve, 2,374. 
(c) The average militaiy student loads for the Army, the Navy, the 
Marine Corps, and the Air Force and the reserve components author-
ized in subsection (a) for fiscal year 1982 shall be adjusted consistent 
with the manpower strengths authorized in titles IV, V, and VI of 
this Act. Such adjustment shall be apportioned among the Army, the 
Navy, the Marine Corps, and the Air Force and the reserve compo-
nents in such manner as the Secretary of Defense shall prescribe. 
EXTENSION OP REDUCTION IN NUMBER OF STUDENTS REQUIRED TO BE 
IN A UNIT OP THE JUNIOR RESERVE OFFICERS* TRAINING CORPS 
SEC. 702. (a) Section 602 of the Department of Defense Authoriza-
tion Act, 1981 (Public Law 96-342; 94 Stat. 1087), is amended by lo use 2031 
striking out "August 31, 1981" and inserting in lieu thereof '^°^^-
"August 31,1982". 
O
t
>
) The amendment made by subsection (a) shall take effect as of Effective date. 
August 31,1981. 
iote.^^^^^^ 
TITLE Vm—CIVIL DEFENSE 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 801. There is hereby authorized to be appropriated for fiscal 
year 1982 to carry out the provisions of the Federal Civil Defense Act 
of 1950 the sum of $129,000,000. 
5
0 use app. 2251 
note. 
AMOUNT AUTHORIZED FOR CONTRIBUTION FOR STATE PERSONNEL AND 
ADMINISTRATIVE EXPENSES 
SEC. 802. Section 408 of the Federal Civil Defense Act of 1950 (50 
U.S.C. App. 2260) is amended by striking out "$40,000,000" and 
inserting in lieu thereof "$47,000,000". 
-194 0—82 
72:QL3 
95 STAT. 1112 
PUBLIC LAW 97-86—DEC. 1, 1981 
DUAL-USE POLICY 
SEC. 803. (a)(1) Title II of the Federal Civil Defense Act of 1950 is 
amended by adding a t the end thereof the following new section: 
"DUAL-USE FOR ATTACK-RELATED CIVIL DEFENSE AND DISASTER-
RELATED CIVIL DEFENSE 
50 use app. 
"SEC. 207. Funds made available to the States under this Act may 
^^^^- 
be used by the States for the purposes of preparing for, and providing 
emergency assistance in response to, natural disasters to the extent 
that the use of such funds for such purposes is consistent with, 
contributes to, and does not detract from attack-related civil defense 
preparedness. The Administrator shall prescribe regulations to carry 
out the preceding sentence. Such regulations shall authorize the use 
for natural disaster purposes of civil defense personnel, materials, 
and facilities supported in whole or in part through contributions 
under this Act if such personnel, materials, and facilities are utilized, 
as determined by the Administrator, in a manner that is consistent 
with, contributes to, and does not detract from attack-related civil 
defense preparedness. Regulations prescribed under this subsection 
shall provide terms and conditions authorizing such use to the 
greatest extent consistent with the purposes of this Act as expressed 
in section 2.". 
50 use app. 
(2) Subsection (h) of section 205 of such Act (50 U.S.C. App. 2287) is 
2286. 
repealed. 
50 use app. 2289 
(3) Regulations shall be prescribed under section 207 of the Federal 
"°^® 
Civil Defense Act of 1950, as added by paragraph (1), not later than 
the end of the 90-day period beginning on the date of the enactment of 
this Act. 
(4) The table of contents of such Act is amended by inserting after 
the item relating to section 206 the following new item: 
"Sec. 207. Dual-use for attack-related civil defense and disaster-related civil 
defense.". 
(b) Section 2 of such Act (50 U.S.C. App. 2251) is amended— 
(1) by striking out ", in this thermonuclear age," in the first 
sentence; 
(2) bv inserting "and from natural disasters" after "from 
attack in the second sentence; and 
(3) by striking out "basic" in the fourth sentence and inserting 
in lieu thereof attack-related". 
(c) Section 3 of such Act (50 U.S.C. App. 2252) is amended— 
(1) by redesignating paragraphs (b), (c), (d), (e), (f), and (g) as 
paragraphs (c), (d), (e), if), (g), and (h), respectively; 
(2) by inserting after paragraph (a) the following new para-
graph (b): 
"Natural 
"Ob) The term 'natural disaster* means any hurricane, tornado, 
disaster." 
storm, flood, high water, wind-driven water, tidal wave, tsunami, 
earthquake, volcanic eruption, landslide, mudslide, snowstorm, 
drought, fire, or other catastrophe in any part of the United States 
which causes, or which may cause, substantial damage or injury to 
civilian property or persons and, for the purposes of this Act, any 
explosion, civil disturbance, or any other manmade catastrophe shall 
be deemed to be a natural disaster;"; 
(3) by inserting "or by a natural disaster" in clause (1) of 
P
aragraph (c) (as so redesignated) after "attack upon the United 
tates"; and 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1113 
(4) by inserting "or natural disaster" after "attack" each place 
it appears in such paragraph after clause (1). 
(d)(1) Paragraph (c) of section 201 of the such Act (50 U.S.C. App. 
2281(c)) is amended by striking out "of enemy attacks to the civilian 
population" and inserting in lieu thereof "to the civilian population 
of an attack or natural disaster". 
(2) Paragraph (d) of such section is amended by inserting "and 
natural disasters" after "effects of attacks". 
(3) Paragraph (g) of such section is amended by inserting "or 
natural disaster" after "attack" each place it appears in such 
paragraph. 
(e) Section 205(d)(1) of such Act (50 U.S.C. App. 2286(d)(1)) is 
amended by inserting "and the areas which may be affected by 
natural disasters" after "target and support areas". 
TITLE IX—GENERAL PROVISIONS 
REQUIREMENT OF ANNUAL AUTHORIZATION OF APPROPRIATIONS FOR 
AMMUNITION AND FOR OTHER PROCUREMENT NOT CURRENTLY SUB-
JECT TO ANNUAL AUTHORIZATION 
SEC 901. (a) Section 138(a) of title 10, United States Code, is 
amended— 
(1) by striking out "or" at the end of clause (6); and 
(2) by inserting after clause (7) the following new clauses: 
"(8) procurement of ammunition; or 
"(9) other procurement by any armed force or by the activities 
and agencies of the Department of Defense (other than the 
military departments);", 
(b) The amendments made by subsection (a) shall apply with 10 USC 138 note. 
respect to funds appropriated for fiscal years beginning after Septem-
ber 30,1982. 
REQUIREMENT FOR ANNUAL REPORT ON NATIONAL GUARD AND 
RESERVE COMPONENT EQUIPMENT 
SEC. 902. Section 138(b) of title 10, United States Code, is 
amended— 
(1) by inserting "(1)" after "(b)"; 
(2) by inserting "average" after "authorize the"; and 
(3) by adding at the end thereof the following new paragraph: 
"(2) The Secretary of Defense shall submit to the Congress each Report to 
year, not later than February 15, a written report concerning the ^o^s^ess. 
equipment of the National Guard and the reserve components of the 
armed forces for each of the three succeeding fiscal years. Each such 
report shall include— 
"(A) recommendations as to the type and quantity of each 
major item of equipment which should be in the inventory of the 
Selected Reserve of the Ready Reserve of each reserve compo-
nent of the armed forces; 
"(B) the quantity and average age of each type of major item of 
equipment which is expected to be physically available in the 
inventory of the Selected Reserve of the Ready Reserve of each 
reserve component as of the beginning of each fiscal year covered 
by the report; 
"(C) the quantity and cost of each type of major item of 
equipment which is expected to be procured for the Selective 
Reserve of the Ready Reserve of each reserve component from 
95 STAT. 1114 
PUBLIC LAW 97-86—DEC. 1, 1981 
commercial sources or to be transferred to each such Selected 
Reserve from the active-duty components of the armed forces; 
and 
"(D) the quantity of each type of major item of equipment 
which is expected to be retired, decommissioned, transferred, or 
otherwise removed from the physical inventory of the Selected 
Reserve of the Ready Reserve of each reserve component and the 
plans for replacement of that equipment. 
The report required by this paragraph shall be prepared and 
expressed in the same format and with the same level of detail as the 
information presented in the annual Five Year Defense Program 
Procurement Annex prepared by the Department of Defense.". 
DEFERRAL OF PERSONNEL END-STRENGTH LIMITATIONS DURING A 
NATIONAL EMERGENCY 
SEC. 903. Section 138(c) of title 10, United States Code, is amended 
by adding at the end thereof the following new paragraph: 
"(4) If at the end of any fiscal year there is in effect a war or 
national emergency, the President may defer the effectiveness of any 
end-strength limitation with respect to that fiscal year prescribed by 
law for any military or civilian component of the armed forces or of 
the Department of Defense. Any such deferral may not extend 
Notification to 
beyond November 30 of the following fiscal year. The President shall 
Congress. 
promptly notify Congress of any deferral of an end-strength limita-
tion under this paragraph.". 
PROHIBITION OF CERTAIN CIVIUAN PERSONNEL MANAGEMENT 
CONSTRAINTS 
SEC. 904. (a) Chapter 4 of title 10, United States Code, is amended by 
adding at the end thereof the following new section: 
10 use 140b. 
"§140b. Prohibition of certain civilian personnel management 
constraints 
"The civilian personnel of the Department of Defense shall be 
managed each fiscal year solely on the basis of and consistent with (1) 
the workload required to carry out the functions and activities of the 
department, (2) the funds made available to the department for such 
fiscal year, and (3) the authorized end strength for the civilian 
personnel of the department for such fiscal year. The management of 
such personnel in any fiscal year shall not be subject to any man-year 
constraint or limitation.". 
(b) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"140b. Prohibition of certain civilian personnel management constraints.". 
AUTHORIZATION OF MILITARY COOPERATION WITH CIVIUAN LAW 
ENFORCEMENT OFFICIALS 
SEC. 905. (a)(1) Part I of subtitle A of title 10, United States Code, is 
amended by adding after chapter 17 the following new chapter: 
"CHAPTER 18—MILITARY COOPERATION WITH CIVILIAN 
LAW ENFORCEMENT OFFICIALS 
"Sec. 
"371. Use of information collected during military operations. 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1115 
"372. Use of military equipment and facilities. 
"373. Training and advising civilian law enforcement officials. 
"374. Assistance by Department of Defense personnel. 
"375. Restriction on direct participation by military personnel. 
"376. Assistance not to affect adversely military preparedness. 
"377. Reimbursement. 
"378. Nonpreemption of other law. 
"§371. Use of information collected during military operations 
l
O use 37i. 
"The Secretary of Defense may, in accordance with other applica-
ble law, provide to Federal, State, or local civilian law enforcement 
officials any information collected during the normal course of 
military operations that may be relevant to a violation of any Federal 
or State law within the jurisdiction of 
such officials. 
"§ 372. Use of military equipment and facilities 
lo use 3
7
2 
"The Secretary of Defense may, in accordance with other applica-
ble law, make available any equipment, base facility, or research 
facility of the Army, Navy, Air Force, or Marine Corps to any 
Federal, State, or local civilian law enforcement official for law 
enforcement purposes. 
"§373. Training and advising civilian law enforcement officials 
lo use 373. 
"The Secretary of Defense may assign members of the Army, Navy, 
Air Force, and Marine Corps to train Federal, State, and local civilian 
law enforcement officials in the operation and maintenance of 
equipment made available under section 372 of this title and to 
provide expert advice relevant to the purposes of this chapter. 
"§ 374. Assistance by Department of Defense personnel 
"(a) Subject to subsection (b), the Secretary of Defense, upon 
request from the head of an agency with jurisdiction to enforce— 
"(1) the Controlled Substances Act (21 U.S.C. 801 et seq.) or the 
Controlled Substances Import and Export Act (21 U.S.C. 951 et 
seq.); 
"(2) any of sections 274 through 278 of the Immigration and 
Nationality Act (8 U.S.C. 1324-1328); or 
"(3) a law relating to the arrival or departure of merchandise 
(as defined in section 401 of the Tariff Act of 1930 (19 U.S.C. 1401)) 
into or out of the customs territory of the United States (as 
defined in general headnote 2 of the Tariff Schedules of the 
United States (19 U.S.C. 1202)) or any other territory or posses-
sion of the United States, 
may assign personnel of the Department of Defense to operate and 
maintain or assist in operating and maintaining equipment made 
available under section 372 of this title with respect to any criminal 
violation of any such provision of law. 
"(b) Except as provided in subsection (c), equipment made available 
under section 372 of this title may be operated by or with the 
assistance of personnel assigned under subsection (a) only to the 
extent the equipment is used for monitoring and communicating the 
movement of 
air and sea traffic. 
"(c)(1) In an emergency circumstance, equipment operated by or 
with the assistance of personnel assigned under subsection (a) may be 
used outside the land area of the United States (or any territory or 
possession of the United States) as a base of operations by Federal law 
enforcement officials to facilitate the enforcement of a law listed in 
subsection (a) and to transport such law enforcement officials in 
connection with such operations, i
f
— 
10 use 374. 
95 STAT. 1116 
PUBLIC LAW 97-86—DEC. 1, 1981 
Emergency 
circumstance. 
10 use 375. 
10 use 376. 
10 use 377. 
10 use 878. 
Report to 
eongress. 
"(A) equipment operated by or with the assistance of personnel 
assigned under subsection (a) is not used to interdict or to 
interrupt the passage of vessels or aircraft; and 
"(B) the Secretary of Defense and the Attorney General jointly 
determine that an emergency circumstance exists. 
"(2) For purposes of this subsection, an emergency circumstance 
may be determined to exist only when— 
"(A) the size or scope of the suspected criminal activity in a 
given situation poses a serious threat to the interests of the 
United States; and 
"(B) enforcement of a law listed in subsection (a) would be 
seriously impaired if the assistance described in this subsection 
were not provided. 
"§ 375. Restriction on direct participation by military personnel 
"The Secretary of Defense shall issue such regulations as may be 
necessary to insure that the provision of any assistance (including the 
provision of any equipment or facility or the assignment of any 
personnel) to any civilian law enforcement official under this chapter 
does not include or permit direct participation by a member of the 
Army, Navy, Air Force, or Marine Corps in an interdiction of a vessel 
or aircraft, a search and seizure, arrest, or other similar activity 
unless participation in such activity by such member is otherwise 
authorized by law. 
"§ 376. Assistance not to affect adversely military preparedness 
"Assistance (including the provision of any equipment or facility or 
the assignment of any personnel) may not be provided to any civilian 
law enforcement official under this chapter if the provision of such 
assistance will adversely affect the military preparedness of the 
United States. The Secretary of Defense shall issue such regulations 
as may be necessary to insure that the provision of any such 
assistance does not adversely affect the military preparedness of the 
United States. 
"§377. Reimbursement 
"The Secretary of Defense shall issue regulations providing that 
reimbursement may be a condition of assistance to a civilian law 
enforcement official under this chapter. 
"§ 378. Nonpreemption of other law 
"Nothing in this chapter shall be construed to limit the authority 
of the executive branch in the use of military personnel or equipment 
for civilian law enforcement purposes beyond that provided by law 
prior to the enactment of this chapter.". 
(2) The tables of chapters at the beginning of subtitle A of such title 
and at the beginning of part I of subtitle A of such title are amended 
by adding after the item relating to chapter 17 the following new 
item: 
"18. Military Cooperation With Civilian Law Enforcement Officials 
371". 
(b) Not later than 30 days after the end of the 180-day period 
beginning on the date of the enactment of this Act, the Secretary of 
Defense shall submit a comprehensive report to Congress on the 
operation through the end of such period of chapter 18 of title 10, 
United States Code (as added by subsection (a)). Such report shall 
include findings of the Secretary concerning the effect of assistance 
provided under such chapter. 
10 u s e 1079 
note. 
PUBLIC LAW 97-86-DEC. 1, 1981 
95 STAT. 1117 
DETERMINATION OF CHARGES FOR CHAMPUS PAYMENTS 
SEC. 906. (aXl) Subsection (h) of section 1079 of title 10, United 
States Code, is amended to read as follows: 
"(hXD Payment for a charge for services by an individual health-
care professional (or other noninstitutional health-care provider) for 
which a claim is submitted under a plan contracted for under 
subsection (a) may be denied only to the extent that the charge 
exceeds the amount equivalent to the 90th percentile of billed 
charges made for similar services in the same locality during the base 
period. 
"(2) For the purposes of paragraph (1), the 90th percentile of 
charges shall be determined by the Secretary of Defense, in consulta-
tion with the Secretary of Health and Human Services, and the base 
period shall be a period of twelve calendar months. The base period 
shall be adjusted at least once a year.". 
(2) Section 1086(f) of such title is amended by striking out "physi-
cian services" and inserting in lieu thereof "services by an individual 
health-care professional (or other noninstitutional health-care 
provider)". 
(b) The amendments made by subsection (a) shall apply with Effective date. 
respect to claims submitted for payment for services provided after '" ^'''^ '""" 
the end of the 30-day period beginning on the date of the enactment of 
this Act. 
INCREASES IN DOLLAR THRESHOLDS FOR CERTAIN DEFENSE CONTRACT 
REGULATIONS 
SEC. 907. (a) Sections 2304(a)(3) and 2304(g) of title 10, United States 
Code, are amended by striking out "$10,000" and inserting in lieu 
thereof "$25,000". 
(b) Section 2306(f)(1) of such title is amended by striking out 
"$100,000" each place it appears and inserting in lieu thereof 
"$500,000". 
(c) Section 2311 of such title is amended by striking out "$100,000" 
and inserting in lieu thereof "$5,000,000". 
PROCUREMENT OF AUTOMATIC DATA PROCESSING EQUIPMENT 
SEC. 908. (a)(1) Chapter 137 of title 10, United States Code, is 
amended by adding at the end thereof the following new section: 
"§2315. Law inapplicable to the procurement of automatic data l
O use 2315. 
processing equipment and services for certain defense 
purposes 
"(a) Section 111 of the Federal Property and Administrative Serv-
ices Act of 1949 (40 U.S.C. 795) is not applicable to the procurement by 40 use 759. 
the Department of Defense of automatic data processing equipment 
or services if the function, operation, or use of the equipment or 
services— 
"(1) involves intelligence activities; 
"(2) involves cryptologic activities related to national security; 
"(3) involves the command and control of military forces; 
"(4) involves equipment that is an integral part of a weapon or 
weapons system; or 
"(5) subject to subsection (b), is critical to the direct fulfillment 
of military or intelligence missions. 
95 STAT. 1118 
PUBLIC LAW 97-86—DEC. 1, 1981 
Restriction. 
10 u s e 2315 
note. 
"(b) Subsection (aK5) does not include procurement of automatic 
data processing equipment or services to be used for routine adminis-
trative and business applications (including payroll, finance, logis-
tics, and personnel management applications).'. 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"2315. Law inapplicable to the procurement of automatic data processing equipment 
and services for certain defense purposes.". 
(b) Section 2315 of title 10, United States Code, as added by 
subsection (a), does not apply to a contract made before the date of the 
enactment of this Act. 
MULTIYEAR PROCUREMENT 
SEC. 909. (a) Section 2301 of title 10, United States Code, is 
amended— 
(1) by striking out "It is" and inserting in lieu thereof "(b) It is 
also"- and 
(2) Dv inserting after the section heading the following: 
Contracts. 
"(a)(1) The Congress finds that in order to ensure national defense 
preparedness, to conserve fiscal resources, and to enhance defense 
production capability, it is in the interest of the United States to 
acquire property and services for the Department of Defense in the 
most timely, economic, and efficient manner. It is therefore the policy 
of the Congress that services and property (including weapon systems 
and associated items) for the Department of Defense be acquired by 
any kind of contract, other than cost-plus-a-percentage-of-cost con-
tracts, but including multiyear contracts, that will promote the 
interest of the United States. Further, it is the policy of the Congress 
that such contracts, when practicable, provide for the purchase of 
property at times and in quantities that will result in reduced costs to 
the Government and provide incentives to contractors to improve 
productivity through investment in capital facilities, equipment, and 
advanced technology. 
"(2) It is also the policy of the 0)ngress that contracts for advance 
procurement of components, parts, and materials necessary for 
manufacture or for logistics support of a weapon system should, if 
feasible and practicable, be entered into in a manner to achieve 
economic-lot purchases and more efficient production rates.". 
(b) Section 2306 of such title is amended— 
(1) by striking out "to be performed outside the forty-eight 
contiguous States and the District of Columbia" in subsection (g); 
and 
(2) by adding at the end thereof the following new subsection: 
"(h)(1) To the extent that funds are otherwise available for obliga-
tion, the head of an agency may make multiyear contracts (other 
than contracts described m paragraph (6)) for the purchase of 
property, including weapon systems and items and services associ-
ated with weapon systems (or the logistics support thereof), whenever 
he finds— 
"(A) that the use of such a contract will promote the national 
security of the United States and will result in reduced total costs 
under the contract; 
"(B) that the minimum need for the property to be purchased is 
expected to remain substantially unchanged during the contem-
plated contract period in terms of production rate, procurement 
rate, and total quantities; 
PUBLIC LAW 97-86-DEC. 1, 1981 
95 STAT. 1119 
"(C) that there is a reasonable expectation that throughout the 
contemplated contract period the Department of Defense will 
request funding for the contract at the level required to avoid 
contract cancellation; 
"(D) that there is a stable design for the property to be acquired 
and that the technical risks associated with such property are 
not excessive; and 
"(E) that the estimates of both the cost of the contract and the 
anticipated cost avoidance through the use of a multiyear con-
tract are realistic. 
"(2)(A) The Secretary of Defense shall prescribe defense acquisition 
regulations to promote the use of multiyear contracting as authorized 
by paragraph (1) in a manner that will allow the most efficient use of 
multiyear contracting. 
"(B) Such regulations may provide for cancellation provisions in 
such multiyear contracts to the extent that such provisions are 
necessary and in the best interests of the United States. Such 
cancellation provisions may include consideration of both recurring 
and nonrecurring costs of the contractor associated with the produc-
tion of the items to be delivered under the contract. 
"(C) In order to broaden the defense industrial base, such regula-
tions shall provide that, to the extent practicable— 
"(i) multiyear contracting under paragraph (1) shall be used in 
such a manner as to seek, retain, and promote the use under such 
contracts of companies that are subcontractors, vendors, or 
suppliers; and 
"(ii) upon accrual of any payment or other benefit under such a 
multiyear contract to any subcontractor, vendor, or supplier 
company participating in such contract, such payment or benefit 
shall be delivered to such company in the most expeditious 
manner practicable. 
"(D) Such regulations shall also provide that, to the extent practica-
ble, the administration of this subsection, and of the regulations 
prescribed under this subsection, shall not be carried out in a manner 
to preclude or curtail the existing ability of agencies in the Depart-
ment of Defense to— 
"(i) provide for competition in the production of items to be 
delivered under such a contract; or 
"(ii) provide for termination of a prime contract the perform-
ance of which is deficient with respect to cost, quality, or 
schedule. 
"(3) Before any contract described in paragraph (1) that contains a 
clause setting forth a cancellation ceiling in excess of $100,000,000 
may be awarded, the head of the agency concerned shall give written 
notification of the proposed contract and of the proposed cancellation 
ceiling for that contract to the Committees on Armed Services and on 
Appropriations of the Senate and House of Representatives, and such 
contract may not then be awarded until the end of a period of 30 days 
beginning on the date of such notification, 
"(4) Contracts made under this subsection may be used for the 
advance procurement of components, parts, and materials necessary 
to the manufacture of a weapon system, and contracts may be made 
under this subsection for such advance procurement, if feasible and 
practical, in order to achieve economic-lot purchases and more 
efficient production rates. 
"(5) In the event funds are not made available for the continuation 
of a contract made under this subsection into a subsequent fiscal 
Regulations. 
Cancellation 
notification to 
congressional 
committees. 
95 STAT. 1120 
PUBLIC LAW 97-86—DEC. 1, 1981 
Restrictions. 
Multiyear 
contract. 
Regulation and 
directive 
modifications. 
10 u s e 2301 
note. 
Repeal. 
year, the contract shall be canceled or terminated, and the costs of 
cancellation or termination may be paid from— 
"(A) appropriations originally available for the performance of 
the contract concerned; 
"(B) appropriations currently available for procurement of the 
type of property concerned, and not otherwise obligated; or 
"(C) funds appropriated for those payments. 
"(6) This subsection does not apply to contracts for the construc-
tion, alteration, or major repair of improvements to real property or 
contracts for the purchase of property to which section 111 of the 
Federal Property and Administrative Services Act of 1949 (40 U.S.C. 
759) applies. 
"(7) This subsection does not apply to the Coast Guard or the 
National Aeronautics and Space Administration. 
"(8) For the purposes of this subsection, a multiyear contract is a 
contract for the purchase of property or services for more than one, 
but not more than five, program years. Such a contract may provide 
that performance under the contract during the second and subse-
quent years of the contract is contingent upon the appropriation of 
funds and (if it does so provide) may provide for a cancellation 
pajTnent to be made to the contractor if such appropriations are not 
made.". 
(c) Section 139(c) of 
such title is amended— 
(1) by striking out "and" at the end of 
clause (2); 
(2) by striking out the period at the end of clause (3) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following: 
"(4) the most efficient production rate and the most efficient 
acquisition rate consistent with the program prioritv established 
for such weapon system by the Secretary concerned.'. 
(d) Not later than the end of the 90-day period beginning on the 
date of the enactment of 
this Act— 
(1) the Secretary of Defense shall issue such modifications to 
existing regulations governing defense acquisitions as may be 
necessary to implement the amendments made by subsections 
(a), (b), and (c); and 
(2) the Director of the Office of Management and Budget shall 
issue such modifications to existing Office of Management and 
Budget directives as may be necessary to take into account the 
amendments made by subsections (a) and (b). 
(e) Section 810 of the Department of Defense Appropriation 
Authorization Act, 1976 (Public Law 94-106; 89 Stat. 539), is repealed. 
(f) Section 2311 of title 10, United States Code, is amended— 
(1) by striking out "(1)"; and 
(2) by striking out ", and (2) authorizing contracts in excess of 
three years under section 2306(g) of this title". 
RESEARCH GRANTS 
SEC. 910. Section 2358(1) of title 10, United States Code, is amended 
by inserting ", or by grant to," after "by contract with". 
MODIFICATION OF DEFENSE CONTRACT PROFIT UMITATION PROVISIONS 
SEC. 911. (a)(1) Section 2382 of title 10, United States Code, is 
amended to read as follows: 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1121 
"§2382. Contract proHt controls during emergency periods 
"(aXD Upon a declaration of war by Congress or a declaration of 
nationsd emergency by the President or by Congress, the President is 
authorized to prescribe such regulations to control excessive profits 
on defense contracts as he determines, are necessary during the 
period of such war or national emergency. Such regulations shall be 
prescribed only after consultation with the Secretary of Defense, the 
Secretary of the Treasury, and the Secretary of Commerce and shall 
apply to appropriate defense contracts and subcontracts (as deter-
mined by the President), and to appropriate major modifications of 
defense contracts and subcontracts (as determined by the President), 
that are entered into during such war or national emergency. Such 
regulations, if prescribed by the President, shall be transmitted to 
Congress within sixty days after the declaration of such war or 
nationsd emergency. Any material amendment to such regulations 
shall be prescribed in the same manner and shall promptly be 
submitted to Congress. 
"(2) Such regulations, if prescribed by the President, shall set forth 
standards and procedures for determining what constitutes excessive 
profits and shall establish thresholds for coverage of contracts and 
exemptions (including contracts awarded under competition and 
contracts for standard commercial articles and services) that will 
minimize administrative expenses and not impose unfair burdens on 
contractors. 
"(3) In this subsection, 'excessive profits' means profits that are 
unconscionable or amoimt to an unjust enrichment of contractors or 
subcontractors, as determined under such regulations as may be 
prescribed by the President under subsection (a), taking into consid-
eration all relevant circumstances, including the character of the 
business, complexity of the work or services performed under the 
contract or subcontract, the amount of assets and capital required to 
perform the contract or subcontract, and the extent to which profit 
limitations are imposed on nondefense contractors. 
"(b) Regulations transmitted by the President under subsection (a) 
(including any material amendment to such regulations) shall take 
effect unless both Houses of Congress, within sixty legislative days 
after the date upon which the President transmits the regulations, 
adopt a concurrent resolution stating in substance that the Congress 
disapproves the regulations. For the purposes of the preceding 
sentence, a legislative day is a day on which either House of Congress 
is in session. 
"(c) Regulations not disapproved by both Houses of Congress shall 
remain in effect for a period of not more than five years after the date 
on which they take effect unless they are extended by a concurrent 
resolution adopted by both Houses of the Congress before the date on 
which they would expire. Any such extension may not be for a period 
in excess of 
one year. 
"(d) The United States Court of Claims shall have exclusive 
jurisdiction over claims arising from actions taken under this section 
and under regulations prescribed under this section. 
"(e) The President shall transmit a report to Congress on the 
operation of this section at the end of each one-year period during 
which regulations issued under this section are in effect and at the 
end of any war or national emergency during which such regulations 
are in effect.". 
Regulations. 
10 u s e 2382. 
Transmittal to 
Congress. 
"Excessive 
profits." 
Report to 
Congress. 
95 STAT. 1122 
PUBLIC LAW 97-86—DEC. 1, 1981 
(2) The item relating to section 2382 in the table of sections at the 
beginning of chapter 141 of title 10, United States Code, is amended to 
read as follows: 
"2382. Contract profit controls during emergency periods.". 
Repeal. 
(b)(1) Section 7300 of title 10, United States Code, is repealed. 
(2) The table of sections at the beginning of chapter 633 of such title 
is amended by striking out the item relating to section 7300. 
10 use 2382 
(c) No regulation may be issued or other action taken for the 
^°^- 
purpose of enforcing any provision of section 2382 or section 7300 of 
title 10, United States Code, with respect to any contract entered into 
during the period beginning on October 1, 1976, and ending on the 
date of the enactment of this Act. 
MILITARY BASE REUSE STUDIES AND COMMUNITY PLANNING ASSISTANCE 
SEC. 912. (aXD Chapter 141 of title 10, United States Code, is 
amended by adding at the end thereof the following new section: 
10 use 2391. 
"§2391. Military base reuse studies and community planning 
assistance 
"(a) Whenever the Secretary of Defense or the Secretary of the 
military department concerned publicly announces that a military 
installation is a candidate for closure or that a final decision has been 
made to close a military installation and the Secretary of Defense 
determines, because of the location, facilities, or other particular 
characteristics of the installation, that the installation may be 
suitable for some specific Federal, State, or local use potentially 
beneficial to the Nation, the Secretary of Defense may conduct such 
studies, including the preparation of an environmental impact state-
ment in accordance with the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.), in connection with such installation and 
such potential use as may be necessary to provide information 
sufficient to make sound conclusions and recommendations regard-
ing the possible use of the installation. 
"(b)(1) The Secretary of Defense may make grants, conclude cooper-
ative agreements, and supplement funds made available under Fed-
eral programs administered by agencies other than the Department 
of Defense in order to assist State and local governments, and 
regional organizations composed of State and local governments, in 
planning community adjustments required (A) by the proposed or 
actual establishment, realignment, or closure of a military installa-
tion, or (B) by the cancellation or termination of a Department of 
Defense contract or the failure to proceed with an approved major 
weapon system program, if the Secretary of Defense determines that 
the action is likely to impose a significant impact on the affected 
community. 
"(2) In the case of the establishment or expansion of a military 
installation, assistance may be made under paragraph (1) only if (A) 
community impact assistance or special impact assistance is not 
otherwise available, and (B) the establishment or expansion involves 
the assignment to the installation of (i) more than 2,500 military, 
civilian, and contractor Department of Defense personnel, or (ii) more 
military, civilian, and contractor Department of Defense personnel 
than the number equal to 10 percent of the number of persons 
employed in counties or independent municipalities within fifteen 
miles of the installation, whichever is lesser. 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1123 
"(3) In the case of the cancellation or termination of a Department 
of Defense contract or the failure to proceed with an approved major 
weapon system program, assistance may be made under paragraph 
(1) only if the cancellation, termination, or failure to proceed involves 
the loss of 2,500 or more full-time Department of Defense and con-
tractor employee positions in the locality of the affected community. 
"(4) Funds provided to State and local governments and regional 
organizations under this section may be used as part or all of any 
required non-Federal contribution to a Federal grant-in-aid program 
for the purposes stated in paragraph (1). 
"(5) Not more than $2,000,000 in assistance may be provided under 
this subsection in any fiscal year. 
"(c) The Secretary of Defense shall submit a report not later than 
December 1 of each year to the Committees on Armed Services of the 
Senate and House of Representatives concerning the operation of this 
section during the preceding fiscal year. Each such report shall 
identify each State, unit of local government, and regional organiza-
tion that received a grant under this section during such fiscal year 
and the total amount granted under this section during such year to 
each such State, unit of local government, and regional organization. 
"(d) In this section, 'military installation' means any camp, post, 
station, base, yard, or other installation under the jurisdiction of a 
military department that is located within any of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, or 
Guam. 
"(e) The authority of the Secretary of Defense to make grants under 
this section in any fiscal year is subject to the availability of 
appropriations for that purpose.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following new item: 
"2391. Military base reuse studies and community planning assistance.". 
(b) Section 610 of the Military Construction Authorization Act, 1977 
(Public Law 94-431; 90 Stat. 1365), is repealed. 
(c) The first report under subsection (c) of section 2391 of title 10, 
United States Code, as added by subsection (a), shall be submitted not 
later than December 1,1982. 
Report to 
congressional 
committees. 
"Military 
installation." 
Repeal. 
10 u s e 133 note. 
10 u s e 2391 
note. 
PROHIBITION ON USE OF FUNDS TO REUEVE ECONOMIC DISLOCATIONS 
SEC. 913. (a)(1) Chapter 141 of title 10, United States Code, is 
amended by adding after section 2391 (as added by section 912) the 
following new section: 
"§2392. Prohibition on use of funds to relieve economic 
dislocations 
"(a) In order to help avoid the uneconomic use of Department of 
Defense funds in the procurement of goods and services, the Congress 
finds that it is necessary to prohibit the use of such funds for certain 
purposes. 
"(b) No funds appropriated to or for the use of the Department of 
Defense may be used to pay, in connection with any contract awarded 
by the Department of Defense, a price differential for the purpose of 
relieving economic dislocations.". 
(2) The table of sections at the beginning of chapter 141 of such title 
is amended by adding after the item relating to section 2391 (as added 
by section 912) the following new item: 
10 u s e 2392. 
95 STAT. 1124 
PUBLIC LAW 97-86—DEC. 1, 1981 
10 use 2392 
note. 
Report to 
Congress. 
"2892. Prohibition on use of funds to relieve economic dislocations.". 
(b) The Secretary of Defense may conduct a test program during 
fiscal year 1982 in accordance with this subsection to test the effect of 
exemptting certain contracts of the Department of Defense from the 
provisions of section 2392 of title 10, United States Code (as added by 
the amendments made by subsection (a)), and paying a price differen-
tial under such contracts for the purpose of relieving economic 
dislocations. Under such test program, the Secretary of Defense may 
exempt from the provisions of such section any contract (other than a 
contract for the purchase of fuel) made by the Defense Logistics 
Agency during fiscal year 1982 if the Secretary determines— 
(1) that the payment of a price differential under such contract 
will not adversely affect the national security of the United 
States; 
(2) that there is a reasonable expectation that bids will be 
received from a sufficient number of responsible bidders so that 
the award of such contract will be made at reasonable cost to the 
United States; 
(3) that the price differential to be paid under such contract 
will not exceed 5 percent; and 
(4) the value of such contract, when added to the cumulative 
value of all other contracts awarded under the test program, will 
not exceed $3,400,000,000. 
(c) Not later than April 15,1982, the President shall submit a report 
to Congress on the implementation and results to that date of the test 
program authorized by subsection (b). The report shall include an 
assessment of the costs and benefits of the test program. 
PROHIBITION AGAINST DOING BUSINESS WFFH CERTAIN OFFERORS O
R 
CONTRACTORS 
SEC. 914. (a) Chapter 141 of title 10, United States Code, is amended 
by adding after section 2392 (as added by section 913) the following 
new section: 
1
0 use 2393 
"§2393. Prohibition against doing business with certain offerors 
or contractors 
"(aXD Except as provided in paragraph (2), the Secretary of a 
military department may not solicit an offer from, award a contract 
to, extend an existing contract with, or, when approval by the 
Secretary of the award of a subcontract is required, approve the 
award of a subcontract to, an offeror or contractor which to the 
Secretary's knowledge has been debarred or suspended by another 
Federal agency unless— 
"(A) in the case of a debarment, the debarment of the offeror or 
contractor by all other ^encies has been terminated or the 
period of time specified for such debarment has expired; and 
"(B) in the case of a suspension, the period of time specified by 
all other agencies for the suspension of the offeror or contractor 
has expired. 
"(2) Paragraph (1) does not appljr in any case in which the Secretary 
concerned determines that there is a compelling reason to solicit an 
offer from, award a contract to, extend a contract with, or approve a 
subcontract with such offeror or contractor. 
Public 
"(b) Whenever the Secretary concerned makes a determination 
inspection. 
described in subsection (a)(2), he shall, at the time of the determina-
tion, transmit a notice to the Administrator of General Services 
describing the determination. The Administrator of General Services 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1125 
shall maintain each such notice in a file available for public 
inspection. 
"(C) In this section: 
Definitions. 
"(1) 'Debar* means to exclude, pursuant to established adminis-
trative procedures, from Government contracting and subcon-
tracting for a specified period of time commensurate with 
the seriousness of the failure or offense or the inadequacy of 
performance. 
"(2) 'Suspend' means to disqualify, pursuant to established 
administrative procedures, from Government contracting and 
subcontracting for a temporary period of time because a concern 
or individual is suspected of engaging in criminal, fraudulent, or 
seriously improper conduct.". 
(b) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2392 (as added 
by section 913) the following new item: 
"2393. Prohibition against doing business with certain offerors or contractors.". 
CIVIL RESERVE AIR FLEET 
SEC. 915. Chapter 931 of title 10, United States Code, is amended— 
(1) by inserting after the chapter heading the following: 
"Subchapter 
Sec. 
"I. General 
9501 
"II. Civil Reserve Air Fleet 
9511 
"SUBCHAPTER I-GENERAL"; and 
(2) by adding at the end thereof the following new subchapter: 
"SUBCHAPTER II-CIVIL RESERVE AIR FLEET 
"Sec. 
"9511. Definitions. 
"9512. Contracts to modify aircraft: cargoKionvertible features. 
"9513. Contracts to modify aircraft: commitment of aircraft to Civil Reserve Air 
Fleet. 
"§ 9511. Definitions 
lo use 95ii 
"In this subchapter: 
"(1) 'Aircraft*, 'citizen of the United States*, 'person', and 
'public aircraft* have the meaning given those terms by section 
101 of 
the Federal Aviation Act of 1958 (49 U.S.C. 1301). 
"(2) 'Cargo air service' means the carriage of property or mail 
on the main deck of a civil aircraft. 
"(3) 'Cargo-capable aircraft' means a civil aircraft equipped so 
that all or substantially all of the aircraft's capacity can be used 
for the carriage of i)roperty or mail. 
"(4) 'Passenger aircraft' means a civil aircraft equipped so that 
its main deck can be used for the carriage of individuals and 
cannot be used principally, without major modification, for the 
carriage of 
property or mail. 
"(5) 'Cargo-convertible feature' means equipment or design 
features included or incorporated in a passenger aircraft that 
can readily enable all or substantially all of that aircraft's main 
deck to be used for the carriage of 
property or mail. 
95 STAT. 1126 
PUBLIC LAW 97-86—DEC. 1, 1981 
"(6) 'Civil aircraft' means an aircraft other than a public 
aircraft. 
"(7) 'Civil Reserve Air Fleet' means those aircraft allocated, or 
identified for allocation, to the Department of Defense under 
section 101 of the Defense Production Act of 1950 (50 U.S.C. App. 
2071), or made available (or agreed to be made available) for use 
by the Department of Defense under a contract made under this 
title, as part of the program developed by the Department of 
Defense through which the Department of Defense augments its 
airlift capability by use of civil aircraft. 
"(8) 'Contractor* means a citizen of the United States (A) who 
owns or controls, or who will own or control, a civil aircraft and 
who contracts with the Secretary of the Air Force to modify that 
aircraft by including or incorporating cargo-convertible features 
suitable for defense purposes in that aircraft and to commit that 
aircraft to the Civil Reserve Air Fleet, or (B) who subsequently 
obtains ownership or control of a civil aircraft covered by such a 
contract and assumes all existing obligations under that 
contract. 
"(9) 'Existing aircraft' means a civil aircraft other than a new 
aircraft. 
"(10) 'New aircraft' means a civil aircraft that a manufacturer 
heis not begun to assemble before the aircraft is covered by a 
contract under section 9512 of this title. 
"(11) 'Secretary' means the Secretary of the Air Force. 
1
0 use 9512. 
"§ 9512. Contracts to modify aircraft: cargo-convertible features 
1
0 use 2301 et 
"(a) Subject to chapter 137 of this title, and to the extent that funds 
«^9- 
are otherwise available for obligation, the Secretary may contract 
with any citizen of the United States (1) for the modification of any 
new aircraft to be owned or controlled by that citizen by the inclusion 
of cargo-convertible features suitable for defense purposes in that 
aircraft, or (2) for the modification of any existing passenger aircraft 
owned or controlled by that citizen by the incorporation of cargo-
convertible features suitable for defense purposes in that aircraft. 
"(b) Each contract made under subsection (a) shall include the 
terms required by section 9513 of this title and the following terms: 
"(1) The contractor shall agree that each aircraft covered by 
the contract that is not already registered under section 501 of 
the Federal Aviation Act of 1958 (49 U.S.C. 1401) shall be 
registered under that section not later than the completion of the 
manufacture of the aircraft or the completion of the modification 
of the aircraft under the contract. 
Repayment to 
"(2) The Contractor shall agree to repay to the United States a 
US. 
percentage (to be established in the contract) of any amount paid 
by the United States to the contractor under the contract with 
respect to any aircraft i
f
— 
"(A) the aircraft is destroyed or becomes unusable, as 
defined in the contract; 
"(B) the cargo-convertible features specified in the con-
tract are rendered unusable or removed from the aircraft; 
"(C) control over the aircraft is transferred to any person 
that is unable or unwilling to assume the contractor's 
obligations under the contract; 
"CD) the registration of the aircraft under section 501 of 
the Federal Aviation Act of 1958 is terminated for any 
reason not beyond the control of the contractor; or 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1127 
"(E) having g^eed in the contract that the main deck of 
the aircraft will not be used for cargo air service, the 
contractor uses, or permits the use of, the main deck of the 
aircraft for cargo air service. 
"(c) A contract made under subsection (a) with respect to any 
aircraft may include the following terms: 
"(1) If the contractor agrees that the main deck of the aircraft 
will not be used in cargo air service, the Secretary may agree to 
pay the contractor— 
"(A) an amount not to exceed 100 percent of the cost of 
modifying the aircraft to include or incorporate cargo-
convertible features suitable for defense purposes in that 
aircraft, as described in subsection (a); 
"(B) an amount to compensate the contractor for the loss 
of use of the aircraft during the time required to make such 
modification, such amount to be determined by taking into 
consideration the fair market rental cost of a similar aircraft 
(not including crews, ground facilities, or other support 
costs) for that time, the estimated loss of revenue by the 
.contractor attributable to the aircraft being out of service 
during that time, and such other factors as the Secretary 
considers appropriate; and 
"(C) in the case of an existing aircraft, 100 percent of the 
cost of positioning the aircraft for modification, recertifica-
tion of that aircraft after modification, returning that air-
craft to service, and other costs directly associated with the 
modification. 
"(2) If the contractor does not agree that the main deck of the 
aircraft will not be used for cargo air service, the Secretary may 
agree to pay the contractor an amount not to exceed 50 percent of 
the cost of modifying the aircraft to include or incorporate cargo-
convertible features suitable for defense purposes. 
"(3) The Secretary may under the contract be authorized to 
contract directly with a person chosen by the contractor to 
perform the modification of the aircraft to include or incorporate 
cargo-convertible features suitable for defense purposes in that 
aircraft and to pay to that person chosen by the contractor— 
"(A) if the contractor agrees that the main deck of that 
aircraft will not be used for cargo air service, an amount less 
than or equal to the amount to which the contractor would 
otherwise be entitled under paragraph (IXA); or 
"(B) if the contractor does not agree that the main deck of 
that aircraft will not be used for cargo air service, an amount 
less than or equal to the amount to which the contractor 
would otherwise be entitled to under paragraph (2). 
"(d) In addition to any amount the Secretary may agree under 
subsection (cXD or (c)(3XA) to pay under a contract made under 
subsection (a), the Secretary may agree under such a contract that, if 
the contractor agrees that the main deck of the aircraft will not be 
used in cargo air service, the Secretary shall make a lump sum or 
annual payments (or a combination thereof) to the contractor to cover 
any increased costs of operation or any loss of revenue attributable to 
the inclusion or incorporation of cargo-convertible features suitable 
for defense purposes in the aircraft. 
"(eXl) Subject to paragraph (2), the Secretary may agree, in any 
contract made under subsection (a), to pay the contractor an amount 
for any loss resulting from the subsequent sale of an aircraft modified 
under that contract if the sale of that aircraft is for a price less than 
-194 O—82 
73:QL3 
95 STAT. 1128 
PUBLIC LAW 97-86-DEC. 1, 1981 
the fair market value, at the time of the sale, of an aircraft 
substantially similar to the aircraft being sold but without the cargo-
convertible features. 
Payment. 
"(2) The Secretary may not agree to make a payment under this 
subsection with respect to the sale of a modified aircraft unless— 
"(A) the sale is within 16 years and 6 months after the 
modified aircraft was initially delivered by the manufacturer to 
its original owner, in the C£ise of an aircraft that was modified 
during manufacture, or by the modifier to the owner at the time 
of modification, in the case of an aircraft that was modified after 
manufacture; 
"(B) the Secretary received written notice of the proposed sale 
at least 60 days before the sale; 
"(C) the contractor used its best efforts to obtain bids for the 
purchase of 
the aircraft; 
"(D) the sale is a bona fide, arm's-length transaction made to 
the highest bidder for a price that is less than the fair market 
value of an aircraft substantially similar to the modified aircraft 
but without the cargo-convertible features; and 
"(E) before the sale the Secretary was given an opportunity to 
and refused to purchase the modified aircraft for a price equal to 
the fair market value, at the time of the sale, of an aircraft 
substantially similar to the modified aircraft but without the 
cargo-convertible features. 
"(3) Any amount that may be payable under a contract provision 
made under this subsection may not exceed the difference between 
(A) the S£des price of the modified aircraft, and (B) the fair market 
value, at the time of the sale, of an aircraft substantially similar to 
the modified aircraft but without the cargo-convertible features 
included or incorporated into the modified aircraft under the 
contract. 
"(4) The Secretary may use any funds appropriated for Air Force 
procurement for fiscal year 1982 or thereafter to pay any obligation 
under a contract provision made under this subsection, 
10 use 9513. 
"§ 9513. Contracts to modify aircraft: commitment of aircraft to 
Civil Reserve Air Fleet 
"(a) Each contract under section 9512 of this title shall provide— 
"(1) that any aircraft covered by the contract shall be commit-
ted to the Civil Reserve Air Fleet; 
"(2) that, so long as the aircraft is owned or controlled by a 
contractor, the contractor shall operate the aircraft for the 
Department of Defense as needed during any activation of the 
full Civil Reserve Air Fleet, notwithstanding any other contract 
or commitment of that contractor; and 
"(3) that the contractor operating the aircraft for the Depart-
ment of Defense shall be paid for that operation at fair and 
reasonable rates. 
"(b) Notwithstanding section 101 of the Defense Production Act of 
1950 (50 U.S.C. App. 2071), each aircraft covered by a contract under 
section 9512 of this title shall be committed exclusively to the Civil 
Reserve Air Fleet for use by the Department of Defense as needed 
during any activation of the full Civil Reserve Air Fleet unless the 
aircr^t is released from that use by the Secretary of Defense.". 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1129 
FACILITATION OF SELECTIVE SERVICE REGISTRATION AND OF MILITARY 
RECRUITING 
SEC. 916. (a) Section 3 of the Military Selective Service Act (50 
U.S.C. App. 453) is amended— 
(1) by inserting "(a)" after "SEC. 3."; and 
(2) by adding at the end thereof the following new subsection: 
"(b) Regulations prescribed pursuant to subsection (a) may require 
that persons presenting themselves for and submitting to registration 
under this section provide, as part of such registration, such identify-
ing information (including date of birth, address, and social security 
account number) as such regulations may prescribe.". 
(b) Section 12 of 
such Act (50 U.S.C. App. 462) is amended by adding 
at the end thereof the following new subsection: 
"(e) The President may require the Secretary of Health and Human 
Services to furnish to the Director, from records available to the 
Secretary, the following information with respect to individuals who 
are members of any group of individuals required by a proclamation 
of 
the President under section 3 to present themselves for and submit 
to registration under such section: name, date of birth, social security 
account number, and address. Information furnished to the Director 
by the Secretary under this subsection shall be used only for the 
purpose of 
the enforcement of this Act.". 
(c) Section 15 of such Act (50 U.S.C. App. 465) is amended by adding 
at the end thereof the following new subsection: 
"(e) In order to assist the Armed Forces in recruiting individuals 
for voluntary service in the Armed Forces, the Director shall, upon 
the request of the Secretary of Defense or the Secretary of Transpor-
tation, furnish to the Secretary the names and addresses of individ-
uals registered under this Act. Names and addresses furnished 
pursuant to the preceding sentence may be used by the Secretary 
of Defense or Secretary of Transportation only for recruiting 
purposes.". 
REPORTS ON UNIT COSTS OF MAJOR DEFENSE SYSTEMS 
SEC. 917. (aXD The program manager (as designated by the Secre-
tary concerned) for each m^'or defense system included in the 
Selected Acquisition Report dated March 31,1981, and submitted to 
the Congress pursuant to section 811 of the Department of Defense 
Appropriation Authorization Act, 1976 (Public Law 94-106; 10 U.S.C. 
139 note), shall submit to the Secretary concerned, within seven days 
after the end of each quarter of fiscal year 1982, a written report on 
the major defense system included in such selected acquisition report 
for which such manager has responsibility. The program manager 
shall include in each such report— 
(A) the total program acquisition unit cost for such major 
defense system as of the last day of 
such quarter; and 
(B) in the case of a m^'or defense system for which procure-
ment funds are authorized to be appropriated by this Act, the 
current procurement unit cost for such major defense system as 
of 
the last day of 
such quarter. 
(2) If at any time during any quarter of fiscal year 1982, the 
program manager of a megor defense system referred to in paragraph 
(1) has reasonable cause to believe that (A) the total program 
acquisition unit cost, or (B) in the case of a major defense system for 
wmch procurement funds are authorized to be appropriated by this 
Act, the current procurement unit cost has exceeded the applicable 
percentage increase specified in subsection (b), such mangier shall 
95 STAT. 1130 
PUBLIC LAW 97-86—DEC. 1, 1981 
Notification to 
Congress. 
Notification to 
Congress. 
immediately submit to the Secretary concerned a report containing 
the information, as of the date of such report, required by 
paragraph (1). 
(3) The program manager shall also include in each report submit-
ted pursuant to paragraph (1) or (2) any change from the Selected 
Acquisition Report of March 31, 1981, in schedule milestones or 
system performances with respect to such system that are known, 
expected, or anticipated by such manager. 
(b)(1) If the Secretary concerned determines, on the basis of any 
report submitted to him pursuant to subsection (a), that the total 
program acquisition unit cost (including any increase for expected 
inflation) for any major defense system for which no procurement 
funds are authorized to be appropriated by this Act has increased by 
more than 15 percent over the total program acquisition unit cost for 
such system reflected in the Selected Acquisition Report of March 31, 
1981, then (except as provided in paragraph (3)) no additional funds 
may be obligated in connection with such system after the end of the 
30-day period beginning on the day on which the Secretary makes 
such determination. The Secretary shall notify the Congress prompt-
ly in writing of such increase upon making such a determination with 
respect to any such major defense system and shall include in such 
notice the date on which such determination was made. 
(2) If the Secretary concerned determines, on the basis of a report 
submitted to him pursuant to subsection (a), that— 
(A) the procurement unit cost of a major defense system for 
which procurement funds are authorized to be appropriated by 
this Act has increased by more than 15 percent over the procure-
ment unit cost derived from the Selected Acquisition Report of 
March 31,1981, or 
(B) the total program acquisition unit cost (including any 
increase for expected inflation) of such system has increased by 
more than 15 percent over the total program acquisition unit cost 
for such system as reflected in the Selected Acquisition Report of 
March 31,1981, 
then (except as provided in paragraph (3)) no additional funds may be 
obligated in connection with such system after the end of the 30-day 
period beginning on the day on which the Secretary makes such 
determination. The Secretary shall notify the Congress promptly in 
writing of such increase upon making such a determination with 
respect to any such major defense system and shall include in such 
notice the date on which such determination was made. 
(3) The prohibition contained in paragraphs (1) and (2) on the 
obligation of funds shall not apply in the case of any major defense 
system to which such prohibition would otherwise apply if the 
Secretary concerned submits to the Congress, before the end of the 
30-day period referred to in paragraph (1) or (2), a written report 
which includes— 
(A) a statement of the reasons for such increase in total 
program acquisition unit cost or procurement unit cost; 
(B) the identities of the military and civilian officers responsi-
ble for program management and cost control of the major 
defense system; 
(C) the action taken and proposed to be taken to control future 
cost growth of such system; 
(D) any changes made in the performance or schedule mile-
stones of such system and the degree to which such changes have 
contributed to the increase in total program acquisition unit cost 
or procurement unit cost; 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1131 
(E) the identities of the principal contractors for the major 
defense system; and 
(F) an index of all testimony and documents formally provided 
to the Congress on the estimated cost of such system. 
(cXD If the Secretary concerned— 
(A) on the basis of a report submitted to him pursuant to 
subsection (a), determines (i) that the total program acquisition 
unit cost (including any increase for expected inflation) for a 
major defense system has increased by more than 25 percent over 
the total program acquisition unit cost for such system reflected 
in the Selected Acquisition Report of March 31,1981, or (ii) in the 
case of any such system for which procurement funds are 
authorized to be appropriated by this Act, that the current 
procurement unit cost of such system has increased by more than 
25 percent over the procurement unit cost derived from the 
Selected Acquisition Report of March 31,1981, and 
(B) has submitted a report to the Congress with respect to such 
system pursuant to subsection O
t
>
X
3
)
, 
then (except as provided in paragraph (2)) no additional funds may be 
obligated in connection with such system after the end of the 60-day 
period beginning on the day on which the Secretary makes such 
determination. 
(2) The prohibition contained in paragraph (1) on the obligation of 
funds shall not apply in the case of a major defense system to which 
such prohibition would otherwise apply if the Secretary of Defense 
submits to the Congress, before the end of the 60-day period referred 
to in such paragraph, a written certification stating that— 
(A) such system is essential to the national security; 
(B) there are no alternatives to such system which will provide 
equal or greater military capability at less cost; 
(C) the new estimates of the total program acquisition unit cost 
or procurement unit cost are reasonable; and 
(D) the management structure for such major defense system is 
adequate to manage and control total program acquisition unit 
cost or procurement unit cost. 
(d) As used in this section: 
Definitions. 
(1) The term "total program acquisition unit cost" means, in 
the case of a major defense system, the amount equal to (A) the 
total cost for development and procurement of, and system-
specific military construction for, such system, divided by (B) the 
number of fully-configured end items to be produced for such 
system. 
(2) The term "procurement unit cost" means, in the case of a 
major defense system, the amount equal to (A) the total of all 
procurement funds available for such system in any fiscal year, 
divided by (B) the number of fully-configured end items to be 
procured with such funds during such fiscal year. 
(3) The term "Secretary concerned" has the same meaning as 
provided in section 101(8) of title 10, United States Code. 
(e) Section 811 of the Department of Defense Appropriation 
Authorization Act, 1976 (Public Law 94-106; 10 U.S.C. 139 note), is 
amended by adding at the end thereof the following new subsection: 
"(cXD Each report required to be submitted under subsection (a) 
shall include the history of the total program acquisition unit cost of 
each major defense system from the date on which funds were first 
authorized to be appropriated for such system. 
"(2) As used in this subsection, the term 'total program acquisition 
unit cost* means the amount equal to (A) the total cost for develop-
95 STAT. 1132 
PUBLIC LAW 97-86—DEC. 1, 1981 
Report to 
Congress. 
10 u s e 133 note. 
Report to 
Congress. 
ment and procurement of, and system-specific military construction 
for, a major defense system, divided by (B) the number of fully-
conHgured end items to be produced for such system.". 
RECOMMENDATIONS WriH RESPECT TO THE EUMINATION OF WASTE, 
FRAUD, ABUSE, AND MISMANAGEMENT IN THE DEPARTMENT OF 
DEFENSE 
SEC. 918. (a) Not later than January 15, 1982, the Secretary of 
Defense shall submit to Congress a report containing such recommen-
dations as he considers necessary or appropriate to improve the 
efficiency and management of, and to eliminate waste, fraud, abuse, 
and mismanagement in, the operation of the Department of Defense. 
(b) In the report required by subsection (a), the Secretary of Defense 
shall— 
(1) set forth each recommendation by the Comptroller General 
since October 1,1980, for the elimination of waste, fraud, abuse, 
or mismanagement in the Department of Defense; and 
(2) provide a statement o
f
— 
(A) which recommendations set forth pursusmt to para-
graph (1) have been adopted and, to the extent practicable, 
the actual and projected cost savings from each; and 
(B) which recommendations set forth pursuant to para-
graph (1) have not been adopted and, to the extent practica-
ble, the projected cost savings from each and an explanation 
of why each such recommendation has not been adopted. 
(c) Not later than January 15,1983, the Secretary of Defense shall 
submit to Congress a report— 
(1) that sets forth each recommendation by the Comptroller 
General since January 1, 1979, for the elimination of waste, 
fraud, abuse, or mismanagement in the Department of Defense; 
and 
(2) that provides a statement o
f
— 
(A) which recommendations set forth pursuant to para-
graph (1) have been adopted and, to the extent practicable, 
the actual and projected cost savings from each; and 
(B) which recommendations set forth pursuant to para-
graph (1) have not been adopted and, to the extent practica-
ble, the projected cost savings from each and an explanation 
of why each such recommendation has not been adopted. 
22 u s e 1928 
note. 
REPORT ON CONTRIBUTIONS TO THE COMMON DEFENSE 
SEC. 919. Section 1006(c) of the Department of Defense Authoriza-
tion Act, 1981 (Public Law 96-342; 94 Stat. 1120), is amended— 
(1) by striking out "March 1,1981" and inserting in lieu thereof 
"March 1,1982^'; and 
(2) by striking out "fiscal year 1981" both places it appears and 
inserting in lieu thereof "fiscal year 1982". 
ASSISTANCE TO YORKTOWN BICENTENNIAL CELEBRATION 
SEC. 920. (a) Notwithstanding any other provision of law, the 
Secretary of Defense is authorized, in connection with the observance 
on October 19,1981, of the two-hundredth anniversary of the surren-
der of Lord Cornwallis to General George Washington at Yorktown, 
Virginia, which date has been proclaimed by Public Law 96-414 (94 
Stat. 1724) as a National Day of Observance of that historic event— 
PUBLIC LAW 97-86—DEC. 1, 1981 
95 STAT. 1133 
(1) to provide logistical support and personnel services for the 
national observance of 
such event; 
(2) to lend and provide equipment to ofiHicials of the Yorktown 
Bicentennial Committee as requested by the Secretary of the 
Interior; and 
(8) to provide such other services as the Secretary of the 
Ulterior may consider necessary and the Secretary of Defense 
niav consider advisable. 
(b) Tnere is authorized to be appropriated to the Secretary of Appropriation 
Defense an amount not to exceed $750,000 for the purpose of carrying authorization. 
out subsection (a). 
(c) No funds may be obligated or expended for carrying out the 
purp(»es of subsection (a) unless such funds have been specifically 
appropriated for such purposes. 
Approved December 1, 1981. 
LEGISLATIVE HISTORY—S. 815 (H.R. 3519): 
HOUSE REPORTS: No. 97-71, Pt. I (Comm. on Armed Services), Pt. 2 (Comm. on the 
Judiciary), Pt. 3 (Comm. on Government Operations) accompany-
ing H.R. 3519 and No. 97-311 (Comm. of Conference). 
SENATE REPORT No. 97-58 (Comm. on Armed Services). 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
May 12-14, considered and passed Senate. 
June 24, July 8-10, 14-16, H.R. 3519 considered and passed House; proceedings 
vacated and S. 815, amended, passed in lieu. 
Nov. 5, Senate agreed to conference report. 
Nov. 17, House agreed to conference report.