National Defense Authorization Act for Fiscal Year 1987
PL 99-661 (S.2638), enacted 11/14/1986

100 STAT. 3816 
PUBLIC LAW 99-661—NOV. 14, 1986 
Nov. 14, 1986 
[S. 2638] 
National 
Defense 
Authorization 
Act for Fiscal 
Year 1987. 
Public Law 99-661 
99th Congress 
An Act 
To authorize appropriations for fiscal year 1987 for military activities of the Depart-
ment of Defense, for military construction, and for defense activities of the Depart-
ment of Energy, to prescribe personnel strengths for such fiscal year for the Armed 
Forces, to improve the defense acquisition process, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE 
This Act may be cited as the "National Defense Authorization Act 
for Fiscal Year 1987". 
SEC. 2. ORGANIZATION 
This Act is divided into four divisions as follows: 
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(1) Division A—Department of Defense Authorizations. 
(2) Division B—Military Construction Authorizations. 
(3) Division C—Other National Defense Authorizations. 
(4) Division D—Child Nutrition Programs. 
Department of 
Defense 
Authorization 
Act, 1987. 
DIVISION A—DEPARTMENT OF DEFENSE 
AUTHORIZATIONS 
SEC. 100. SHORT TITLE; TABLE OF CONTENTS 
(a) SHORT TITLE.—This division may be cited as the "Department 
of Defense Authorization Act, 1987". 
(b) TABLE OF CONTENTS OF DIVISION.—The table of contents of this 
division is as follows: 
Sec. 100. Short title; table of contents. 
TITLE I—PROCUREMENT 
PART A—FUNDING AUTHORIZATIONS 
Sec. 101. Army. 
Sec. 102. Navy and Marine Corps. 
Sec. 103. Air Force. 
Sec. 104. Defense Agencies. 
Sec. 105. Reserve components. 
Sec. 106. Extension of authority provided the Secretary of Defense in connection 
with the NATO Airborne Warning and Control System (AWACS) 
program. 
Sec. 107. Multiyear contracts for fiscail year 1987. 
Sec. 108. Air Force fighter competition. 
PART B—ARMY PROGRAM LIMITATIONS 
Sec. 121. Testing of Bradley Fighting Vehicle. 
Sec. 122. Other limitations on Army procurement. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3817 
PART C—NAVY PROGRAM LIMITATIONS 
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Sec. 131. DDG-51 destroyer program. 
Sec. 132. Basic Point Defense Missile System on amphibious vessels. 
Sec. 133. Rolling Airframe Missile Program. 
PART D—AIR FORCE PROGRAM LIMITATIONS 
Sec. 141. Advanced Technology Bomber. 
Sec. 142. Prohibition on using funds authorized for the Advanced Technology 
Bomber and the Advanced Cruise Missile programs for any other pur-
pose and limitation on the B-IB bomber fleet to 100 aircraft. 
Sec. 143. C-17 Aircraft Program. 
Sec. 144. Advanced Medium-Range Air-to-Air Missile Program. 
Sec. 145. T-46 Aircraft Program. 
PART E—CHEMICAL WEAPONS 
Sec. 151. Authorization of appropriations for chemical demilitarization program. 
Sec. 152. Limitation on the expenditure of funds for the BIGEYE binary chemical 
bomb. 
Sec. 153. Chemical weapons, agents, or components at Lexington-Bluegrass Depot. 
Sec. 154. Report on chemical weapons demilitarization program. 
Sec. 155. Technical amendment to Public Law 99-145 relating to binary chemical 
munitions. 
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TITLE II—RESEARCH, DEVELOPMENT. TEST AND EVALUATION 
PART A—AUTHORIZATIONS OF APPROPRIATIONS AND PROGRAM LIMITATIONS 
Sec. 201. Authorization of appropriations. 
Sec. 202. Limitation on Copperhead Guided Projectile, 
Sec. 203. Limitations on funds for the Navy. 
Sec. 204. Limitations on funds for the Air Force. 
Sec. 205. Limitation on funds for Defense Agencies. 
Sec. 206. Other limitations. 
Sec. 207. Advanced Anti-Armor Weapon System. 
Sec. 208. Electronic Warfare Master Plan. 
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Sec. 209. Limitation on testing electromagnetic pulse. 
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PART B—STRATEGIC DEFENSE INITIATIVE 
Sec. 211. Fiscal year 1987 funding level for Strategic Defense Initiative. 
Sec. 212. Tactical ballistic missile defense. 
Sec. 213. Limitation on establishment of a federally funded research and develop-
ment center for the Strategic Defense Initiative Program. 
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Sec. 214. Report on projected costs of SDI program. 
Sec. 215. Report on Strategic Defense Initiative deployment schedule. 
Sec. 216. Effect of Strategic Defense Initiative on compliance with the Anti-Ballistic 
Missile Treaty. 
Sec. 217. Report on the Anti-Ballistic Missile Treaty. 
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PART C—BALANCED TECHNOLOGY INITIATIVE 
Sec. 221. Conventional Defense Initiative. 
Sec. 222. Balanced Technology Initiative. 
PART D—MISCELLANEOUS 
Sec. 231. Limitation on testing of anti-satellite weapons. 
Sec. 232. ICBM modernization. 
Sec. 233. Restriction on use of research and development funds for grants to educa-
tional institutions. 
Sec. 234. Coordination of research activities of Department of Defense. 
Sec. 235. Cooperative medical research with the Veterans' Administration. 
100 STAT. 3818 
PUBLIC LAW 99-661—NOV. 14, 1986 
TITLE III—OPERATION AND MAINTENANCE 
PART A—AUTHORIZATIONS OF APPROPRIATIONS 
Sec. 301. Operation and maintenance funding. 
Sec. 302. Working capital funds. 
Sec. 303. Authorization of appropriations for assistance to Pan American Games. 
Sec. 304. Transportation of livestock feed. 
Sec. 305. Authority for payments to NASA for space shuttle services. 
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PART B—PROGRAM CHANGES AND PERMANENT LAW CHANGES 
Sec. 311. Contract personnel to be included in budget justification. 
Sec. 312. Procurement of certain bakery and dairy products outside the United 
States. 
Sec. 313. Functions of military commissaries; purchase of alcoholic beverages by 
nonappropriated fund instrumentalities. 
Sec. 314. Authority for Secretary of Defense to accept gifts for the defense depend-
ents' education system. 
Sec. 315. Renovation of facilities. 
Sec 316. Prohibition of purcheise of petroleum products from companies producing 
oil in Angola. 
Sec. 317. Prohibition of contracts for the performance of certain Army ammunition 
activities. 
Sec. 318. National Board for the Promotion of Rifle Practice. 
Sec. 319. Prohibition on joint use of Gray Army Airfield with civil aviation. 
Sec. 320. Report on proposed regulations relating to movement of household goods 
and cargo. 
PART C—HUMANITARIAN AND OTHER ASSISTANCE 
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Sec. 331. Extension of authorization for humanitarian assistance. 
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Sec. 332. Extension of authority of Secretary of Defense to transport humanitarian 
relief supplies to certain countries. 
Sec. 333. Humanitarian and civic assistance provided in conjunction with military 
operations. 
TITLE IV—MILITARY PERSONNEL AUTHORIZATIONS AND RELATED 
MATTERS 
PART A—ACTIVE FORCES 
Sec. 401. End strengths for active forces. 
Sec. 402. Extension of quality control on enlistments into the Army. 
Sec. 403. Strength of active duty officer corps. 
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PART B—RESERVE FORCES 
Sec. 411. End strengths for Selected Reserve. 
Sec. 412. End strengths for Reserves on active duty in support of the Reserve 
components. 
Sec. 413. Accounting for certain authorized reserve component members. 
PART C—MIUTARY TRAINING 
Sec. 421. Military training student loads. 
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TITLE V—DEFENSE PERSONNEL POLICY 
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PART A—ACTIVE FORCES 
Sec. 501. Assignment of active-duty members outside the United States. 
Sec. 502. Service of members on State and local juries. 
Sec. 503. Extension of expiring authority for spot promotions of Navy lieutenants. 
Sec. 504. Repeal of requirement regarding enlistment of women in the Air Force 
during fiscal year 1987. 
Sec. 505. Authority to exempt physicians at Uniformed Services University of the 
Health Sciences from reductions in retired pay. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3819 
Sec. 506. Treatment of excess leave upon reenlistment. 
Sec. 507. Termination of gender-based distinctions in promotions of officers of the 
Naval Reserve and Marine Corps Reserve. 
Sec. 508. Senate confirmation of certain general and flag officer positions. 
Sec. 509. Position of Staff Judge Advocate to the Commandant of the Marine Corps. 
Sec. 510. Technical correction relating to personnel administration at Air Force In-
stitute of Technology. 
Sec. 511. Temporary increase in the number of general and flag officers authorized 
to be on active duty in three- and four-star grades. 
Sec. 512. Study on staffing of critical wartime medical specialities. 
Sec. 513. Study of representation of religious faiths in the Armed Forces. 
PART B—RESERVE FORCES 
Sec. 521. Increased Presidential authority to augment active forces with the Select-
ed Reserve. 
Sec. 522. Active duty of National Guard. 
Sec. 523. Treatment of single parents enlisting in Reserve components of the 
Armed Forces. 
Sec. 524. Active-duty status of reserve component members in a captive status. 
PART C—CIVIUAN PERSONNEL 
Sec. 531. Waiver of civilian personnel ceilings for fiscal year 1987. 
Sec. 532. Prohibition on managing civilian personnel by end-strengths during fiscal 
year 1987. 
Sec. 533. Prohibition on controlling personnel not funded by Government. 
Sec. 534. Reduction in number of years person must be off active duty before 
appointment as Service Secretary. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS 
PART A—PAY AND ALLOWANCES 
Sec. 601. Military pay raise for fiscal year 1987. 
Sec. 602. Authority to pay ROTC members in advance for field training. 
Sec. 603. Reimbursement for accommodations in place of quarters. 
Sec. 604. Pay, allowances, and benefits for members of the reserve components. 
PART B—TRAVEL AND TRANSPORTATION 
Sec. 611. Transportation of motor vehicles for members making permanent changes 
of station. 
Sec. 612. Coordination of permanent change of station moves with school year. 
Sec. 613. Authorization limit on funds for PCS travel. 
Sec. 614. Reimbursement for actual lodging expenses plus per diem for members 
entitled to travel allowances. 
Sec. 615. Transportation and travel allowances for escorts for certain dependents. 
Sec. 616. Travel expenses for overseas dependents requiring medical care in certain 
circumstances. 
Sec. 617. Per diem for dependents receiving transportation allowance. 
Sec. 618. Modification of family separation allowance. 
Sec. 619. Improved dislocation allowance. 
Sec. 620. Transportation and storage of household goods. 
PART C—BONUSES AND SPECIAL AND INCENTIVE PAYS 
Sec. 631. Enhanced aviation officer continuation pay. 
Sec. 632. Inclusion of aviation cadets under aviation career incentive pay. 
Sec. 633. Special authority relating to the payment of Selected Reserve enlistment 
bonus. 
Sec. 634. Special pay for members proficient in foreign languages. 
100 STAT. 3820 
PUBLIC LAW 99-661—NOV. 14, 1986 
PART D—BENEFITS F
O
R SURVIVORS AND FORMER SPOUSES 
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Sec. 641. Court-ordered survivor annuities for former spouses. 
Sec. 642. Annuity for a dependent child. 
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Sec. 643. Age at which remarriage terminates spouse survivor benefit. 
Sec. 644. Revision of definition of disposable retired pay for purposes of court 
orders. 
Sec. 645. Revision of open period to elect former spouse and child coverage. 
Sec. 646. Extension of medical benefits for certain former spouses. 
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PART E—MISCELLANEOUS BENEFITS 
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Sec. 651. Tuition assistance for Army reserve component officers. 
Sec. 652. Benefits for dependents of certain sentenced, discharged, or dismissed 
members. 
Sec. 653. Improved employment opportunities for military spouses. 
Sec. 654. Retirement credit for certain former National Guard technicians. 
Sec. 655. Meal reimbursement for nonprofit youth groups residing at military 
installations. 
Sec. 656. Limited use of commissary stores by members of the Selected Reserve. 
PART F—ADMINISTRATION OF PERSONNEL BENEFITS 
Sec. 661. Enhanced method for determining true costs of military retirement. 
Sec. 662. Authority to pay bank charges in the event of Government error in 
mandatory direct deposit of members' pay. 
Sec. 663. Cost reductions for fiscal year 1987. 
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TITLE VII—HEALTH-CARE MANAGEMENT REFORM ' 
Sec. 701. Improvement of military health-care delivery system. 
Sec. 702. CHAMPUS reform initiative. 
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Sec. 703. CHAMPUS catchment areas. 
Sec. 704. Medical information systems acquisition. 
Sec. 705. Confidentiality of medical quality assurance records. 
Sec. 706. Use of Public Health Service hospitals as facilities of the uniformed 
services. 
Sec. 707. Limitation on dental insurance program. 
TITLE VIII—UNIFORM CODE OF MILITARY JUSTICE 
Sec. 801. Short title; references to Uniform Code of Military Justice. 
Sec. 802. Defense of lack of mental responsibility. 
Sec. 803. Application for enlisted members to serve on court-martial. 
Sec. 804. Court-martial jurisdiction over Reserve members. 
Sec. 805. Statute of limitations. 
Sec. 806. Time for defense post-trial submissions. 
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Sec. 807. Detail of judge advocates. 
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Sec. 808. Effective date. 
TITLE IX—PROCUREMENT POLICY REFORM 
Sec. 900. Short title. 
PART A—MANAGEMENT OF THE Act^uisiTioN PROCESS 
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Sec. 901. Duties and precedence of Under Secretary of Defense for Acquisition. 
Sec. 902. Establishment of position of Deputy Under Secretary of Defense for 
Acquisition. 
Sec. 903. Other senior civilian acquisition officials. 
Sec. 904. Enhanced program stability for major defense acquisition programs. 
Sec. 905. Defense enterprise programs. 
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Sec. 906. Milestone authorization of defense enterprise programs. 
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Sec. 907. Preference for nondevelopmental items. 
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Sec. 908. Requirements relating to undefinitized contractual actions. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3821 
Sec. 909. Competitive prototype strategy requirement for major defense acquisition 
programs. 
Sec. 910. Testing of certain weapon systems and munitions. 
Sec. 911. Goals for increased use of multiyear contracting authority in fiscal year 
1988. 
Sec. 912. Federally funded research and development centers. 
PART B—REQUIREMENTS RELATING TO THE ACQUISITION PROCESS 
Sec. 921. Small business set-asides. 
Sec. 922. Thresholds for certain requirements relating to small purchases. 
Sec. 923. Requirements relating to procedures other than competitive procedures. 
Sec. 924. Evaluation factors in award of contracts. 
Sec. 925. (Computation of contract bid prices. 
Sec. 926. Prices for spare or repair parts sold commercially. 
Sec. 927. Allocation of overhead to parts to which contractor has added little value. 
Sec. 928. Clarification of requirements to mark supplies to identify suppliers and 
sources. 
PART C—PROCUREMENT PERSONNEL POUCY 
Sec. 931. Conflict-of-interest in defense procurement. 
Sec. 932. Plan for enhancement of professionalism of acquisition personnel. 
Sec. 933. Educational requirements for acquisition personnel. 
Sec. 934. Plan for coordination of defense acquisition educational programs. 
PART D—REQUIREMENTS'RELATING TO DEFENSE CONTRACTORS 
Sec. 941. Codification and extension of prohibition on persons convicted of defense-
contract related felonies and related criminal penalty on defense 
contractors. 
Sec, 942. Protection of contractor employees from reprisal for disclosure of certain 
information. 
Sec. 943. Revision of work measurement provisions. 
PART E—MISCELLANEOUS 
Sec. 951. Contracting with firms owned or controlled by governments that support 
terrorism. 
Sec. 952. Truth-in-Negotiations Act Amendments. 
Sec. 953. Rights in technical data. 
Sec. 954. Recovery of costs to provide technical data. 
Sec. 955. Comparable budgeting for similar systems. 
Sec. 956. Funding of procurement technical assistance programs serving distressed 
areas. 
Sec. 957. Subcontractor information to be provided to procurement outreach 
centers. 
PART F—MISCELLANEOUS REPORTS 
Sec. 961. Selected Acquisition Reports. 
Sec. 962. Report on efforts to increase defense contract awards to Indian-owned 
businesses. 
Sec. 963. Report on increased geographic distribution on defense contractors. 
TITLE X—MATTERS RELATING TO ARMS CONTROL 
Sec. 1001. Sense of the Congress relating to SALT II compliance. 
Sec, 1002. Sense of the Congress on nuclear testing. 
Sec. 1003. Report by the Chairman of the Joint Chiefs of Staff on United States 
non-compliance with existing strategic offensive arms agreements. 
Sec. 1004. Sense of Congress expressing support for a central role for nuclear risk 
reduction centers. 
100 STAT. 3822 
PUBLIC LAW 99-661—NOV. 14, 1986 
TITLE XI—MATTERS RELATING TO NATO 
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Sec. 1101. Modernization of defense capabilities of countries of NATO's southern 
flank. 
Sec. 1102. NATO cooperative logistic support agreements. 
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Sec. 1103. Cooperative projects. 
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Sec. 1104. Acquisition and cross-servicing agreements. 
Sec. 1105. Cooperative research and development with non-NATO allies and other 
friendly countries. 
TITLE XII—DEPARTMENT OF DEFENSE MANAGEMENT 
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PART A—MANAGEMENT OF CERTAIN PROCUREMENT MATTERS 
Sec. 1201. Contracts for overhaul, repair, and maintenance of naval vessels. 
Sec. 1202. Handling of hazardous waste generated during repair or maintenance of 
naval vessels. 
Sec. 1203. Limitation on transfer of certain technical data packages. 
Sec. 1204. Requirements concerning transportation of members of the Armed 
Forces by chartered aircraft. 
Sec. 1205. Fuel sources for heating systems on military installations. 
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Sec. 1206. Review of the security administration in defense industry of Department 
of Defense special access programs. 
Sec. 1207. Contract goal for minorities. 
Sec. 1208. Manpower estimates for major defense acquisition programs. 
PART B—ECONOMY AND EFFICIENCY 
Sec. 1221. Increase in threshold applicable to statutory contracting-out procedures. 
Sec. 1222. Prohibition on contracts for performance of firefighting and security 
functions. 
Sec. 1223. Contracting out the performance of Department of Defense supply and 
service functions. 
Sec. 1224. Reports on savings or costs from increased use of civilian personnel. 
TITLE XIII—GENERAL PROVISIONS 
PART A—FINANCIAL MATTERS 
Sec. 1301. Transfer authority. 
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Sec. 1302. Authorization of appropriations for civilian pay and contingencies. 
Sec. 1303. Authorization of appropriations for foreign currency purchases. 
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Sec. 1304. Special Defense Acquisition Fund. 
Sec. 1305. Limitation on obligation of fiscal year 1985 and fiscal year 1986 funds. 
Sec. 1306. Applicability of limitations on fiscal year 1987 obligations. 
Sec. 1307. Reports on unobligated balances. 
Sec. 1308. Report on defense budgeting and contract procedures for inflation. 
Sec. 1309. Debt collection. 
Sec. 1310. Contingent reduction of authorization of appropriations. 
PART B—SPECIAL OPERATIONS MATTERS 
Sec. 1311. Special operations forces. 
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Sec. 1312. Special operations airlift. 
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PART C—AUTHORIZATION OF PAYMENT OF CERTAIN EXPENSES WITH RESPECT TO 
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DEVELOPING COUNTRIES 
Sec. 1321. Authority to pay expenses of developing countries for participation in 
combined military exercises. 
Sec. 1322. Authority to pay certain expenses of defense personnel of foreign 
countries. 
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PART D—MISCELLANEOUS REPORTS 
Sec. 1331. Army National Guard reporting. 
Sec. 1332. Submarine overhaul study. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3823 
Sec. 1333. Report on landing area for AV-8B Harrier aircraft on Iowa-class 
battleship. 
Sec. 1334. Report on cleanup of National Presto Industries. 
PART E—TECHNICAL AND CLERICAL AMENDMENTS 
Sec. 1341. Technical correction to Department of Defense Authorization Act, 1985. 
Sec. 1342. Technical corrections to provisions enacted by Department of Defense 
Authorization Act, 1986. 
Sec. 1343. Clerical amendments. 
PART F—MISCELLANEOUS 
Sec. 1351. Limitation on source of funds for Nicaraguan democratic resistance. 
Sec. 1352. Budget accounting for new space shuttle. 
Sec. 1353. Prompt reporting of intelligence on terrorist threats. 
Sec. 1354. Use of marine mammals for national defense purposes. 
Sec. 1355. Reimbursement for incidental expenses incurred while providing volun-
tary services. 
Sec. 1356. Defense of legal malpractice suits. 
Sec. 1357. Off-post rental housing lease indemnity pilot program. 
Sec. 1358. Wage rate for certain Corps of Engineers employees. 
Sec. 1359. Reimbursement for transferred defense industrial reserve equipment. 
Sec. 1360. Extension of exemption for DOD polygraph test. 
Sec. 1361. Identification of facilities for the detention of certain aliens. 
Sec. 1362. Correctional facilities at Fort Riley, Kansas. 
Sec. 1363. Minuteman Education Program. 
Sec. 1364. Foreign espionage activities in the United States. 
Sec. 1365. Civil Air Patrol. 
Sec. 1366. Amendment of Military Selective Service Act to provide eligibility for 
benefits to certain persons who fail to register. 
Sec. 1367. Correction of effects of contamination at Rocky Mountain Arsenal. 
Sec. 1368. Sense of Congress regarding the death of Lieutenant Colonel Arthur 
D. Nicholson, Junior. 
Sec. 1369. Deadline for appointment of members of Commission on Merchant 
Marine and Defense. 
Sec. 1370. Availability of nuclear non-proliferation information to Department of 
Defense. 
Sec. 1371. Nuclear winter study and report. 
Sec. 1372. Sale of two naval vessels. 
Sec. 1373. Drug interdiction. 
Sec. 1374. Grants to the Henry M. Jackson Foundation. 
Sec. 1375. Budget accounting for new space shuttle. 
TITLE XIV—BARRY GOLDWATER SCHOLARSHIP AND EXCELLENCE IN 
EDUCATION PROGRAM 
Sec. 1401. Short title. 
Sec. 1402. Findings. 
Sec. 1403. Definitions. 
Sec. 1404. Establishment of the Barry Goldwater Scholarship and Excellence in 
Education Foundation. 
Sec. 1405. Barry Goldwater Scholarship and Excellence in Education Awards. 
Sec. 1406. Stipends. 
Sec. 1407. Scholarship conditions. 
Sec. 1408. Barry Goldwater Scholarship and Excellence in Education Fund. 
Sec. 1409. Expenditures from the Fund. 
Sec. 1410. Executive secretary. 
Sec. 1411. Administrative provisions. 
Sec. 1412. Authorization of appropriations. 
100 STAT. 3824 
PUBLIC LAW 99-661—NOV. 14, 1986 
TITLE I—PROCUREMENT 
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PART A—FUNDING AUTHORIZATIONS 
SEC. 101. ARMY 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1987 for procurement for 
the Army as follows: 
(1) For aircraft, $2,725,500,000. 
(2) For missiles, $2,150,900,000. 
(3) For weapons and tracked combat vehicles, $3,888,100,000. 
(4) For ammunition, $2,126,100,000. 
(5) For other procurement, $5,112,753,000, of which— 
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(A) $787,200,000 is for tactical and support vehicles; 
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(B) $3,083,953,000 is for communications and electronics 
equipment; and 
(C) $1,355,500,000 is for other support equipment. 
OJ) LIMITATION ON OBLIGATIONS.—The maximum amount that may 
be obligated from a procurement account of the Army for fiscal year 
1987 is the amount authorized to be appropriated for such account 
under subsection (a). 
SEC. 102. NAVY AND MARINE CORPS 
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(a) AIRCRAFT.—(1) Funds are hereby authorized to be appropriated 
for procurement of aircraft for the Navy for fiscal year 1987 in the 
amount of $9,828,069,000. 
(2) The maximum amount that may be obligated for procurement 
of aircraft for the Navy for fiscal year 1987 is the amount authorized 
to be appropriated under paragraph (1). 
Ot)) WEAPONS.—(1) Funds are hereby authorized to be appropriated 
for fiscal year 1987 in the total amount of $5,449,968,000 for procure-
ment of weapons (including missiles and torpedoes) for the Navy. 
(2) Funds appropriated or otherwise made available for procure-
ment of weapons (including missiles and torpedoes) for the Navy for 
fiscal year 1987 may not be obligated in excess of the following 
amounts: 
(A) For missile programs, $4,587,563,000. 
(B) For torpedo programs: 
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For the MK-48 torpedo program, $254,770,000. 
For the MK-46 torpedo program, $97,861,000. 
For the MK-60 CAPTOR mine program, $30,000,000. 
For the MK-50 torpedo program, $94,937,000. 
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For 
the 
antisubmarine 
rocket 
(ASROC) 
program, 
$13,597,000. 
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PQJ. ^j^g vertical Launched ASROC program, $74,289,000. 
For the modification of torpedoes and related equipment, 
$97,705,000. 
For the torpedo support equipment program, $32,496,000. 
For the antisubmarine warfare range support program, 
' $20,114,000. 
(C) For other weapons: 
For the MK-15 close-in weapon system 
program, 
$105,606,000. 
For the MK-75 76-millimeter gun mount program, 
$14,875,000. 
For other weapons programs, $72,721,000. 
(D) For spares and repair parts, $150,734,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3825 
(c) SHIPBUILDING AND CONVERSION.—(1) Funds are hereby au-
thorized to be appropriated for fiscal year 1987 for shipbuilding and 
conversion for the Navy in the total amount of $10,607,100,000. 
(2) Funds appropriated or otherwise made available for shipbuild-
ing and conversion for fiscal year 1987 may not be obligated in 
excess of the following amounts: 
For the Trident submarine program, $1,446,400,000. 
For the SSN-688 nuclear attack submarine 
program, 
$2,250,800,000. 
For 
the 
SSN-21 nuclear 
attack 
submarine 
program, 
$454,300,000. 
For the aircraft carrier service life extension program (SLEP), 
$83,500,000. 
For the CG-47 Aegis cruiser program, $2,725,600,000. 
For 
the 
DDG-51 guided 
missile 
destroyer 
program, 
$2,470,100,000. 
For the LHD-1 amphibious assault ship program, $35,000,000. 
For the TAO-187 fleet oiler program, $259,000,000. 
For 
the 
TAGOS 
ocean 
surveillance 
ship 
program, 
$148,100,000. 
For the AOE fast combat support ship program, $499,000,000. 
For the AO (Jumbo) conversion program, $32,000,000. 
For the oceanographic research ship program, $33,000,000. 
For the strategic sealift and sealift enhancement ready re-
serve program, $48,500,000. 
For the TAGS auxiliary crane ship program, $61,100,000. 
For service craft and landing craft, $58,900,000. 
For ship contract design, $69,400,000. 
For outfitting and post delivery, $393,900,000. 
(d) OTHER PROCUREMENT, NAVY.—(1) Funds are hereby authorized 
to be appropriated for fiscal year 1987 for other procurement for the 
Navy in the amount of $5,826,942,000. 
(2) Funds appropriated or otherwise made available for other 
procurement for the Navy for fiscal year 1987 may not be obligated 
in excess of the following amounts: 
(A) For the ship support equipment program, $1,002,366,000. 
(B) For the communications and electronics equipment pro-
gram, $1,944,630,000. 
(C) For aviation support equipment, $820,692,000. 
(D) 
For 
the 
ordnance 
support 
equipment 
program, 
$1,169,120,000. 
(E) For civil engineering support equipment, supply support 
equipment, and command support equipment, $708,442,000. 
(F) For spares and repair parts, $302,392,000. 
(e) MARINE CORPS.—(1) Funds are hereby authorized to be appro-
priated for fiscal year 1987 for procurement for the Marine Corps in 
the amount of $1,477,408,000. 
(2) Funds appropriated or otherwise made available for procure-
ment for the Marine Corps for fiscal year 1987 may not be obligated 
in excess of the amount authorized to be appropriated in paragraph 
(1). 
(f) P-3 AIRCRAFT.—(1) Of the amount appropriated to the Navy for 
fiscal year 1987 for procurement of P-3C aircraft, not more than 
$120,000,000 is available for modification of existing P-3 aircraft, 
(2) From funds appropriated or otherwise made available to the 
Navy for procurement of aircraft for fiscal year 1987, the Secretary 
of the Navy may not obligate more than a total of $359,400,000 for— 
100 STAT. 3826 
PUBLIC LAW 99-661—NOV. 14, 1986 
(A) procurement of P-3C aircraft; and 
(B) modifications to existing P-3 aircraft. 
(3) Of the P-3 aircraft procured by the Navy with funds appro-
priated to the Navy for procurement of aircraft for fiscal year 1986 
or 1987, the Secretary of the Navy may use two such aircraft to 
carry out obligations of the United States under the classified 
Maritime Surveillance Agreement of 1986. 
SEC. 103. AIR FORCE 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1987 for procurement of 
aircraft and missiles and for other procurement for the Air Force as 
follows: 
(1) For aircraft, $17,018,632,000. 
(2) For missiles, $7,570,472,000. 
(3) For other procurement, $9,180,923,000, of which— 
(A) $1,101,029,000 is for munitions and associated support 
equipment; 
(B) $300,196,000 is for vehicular equipment; 
(C) $2,461,159,000 is for electronics and telecommuni-
' cations equipment; and 
(D) $5,588,539,000 is for other base maintenance and sup-
port equipment. 
(b) LIMITATION ON OBLIGATIONS.—The maximum amount that may 
be obligated from a procurement account of the Air Force for fiscal 
year 1987 is the amount authorized to be appropriated for such 
account under subsection (a) plus, in the case of the appropriation 
account "Other Procurement, Air Force", the amount of $77,900,000. 
SEC. 104. DEFENSE AGENCIES 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1987 for the Defense 
Agencies in the amount of $1,418,660,000. 
(b) LIMITATION OF OBLIGATION.—Funds appropriated or otherwise 
made available for procurement for fiscal year 1987 for the Defense 
Agencies may not be obligated in excess of the amount authorized to 
be appropriated in subsection (a). 
SEC. 105. RESERVE COMPONENTS 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1987 for procurement of 
aircraft, vehicles, communications equipment, and other miscellane-
ous equipment for the reserve components of the Armed Forces as 
follows: 
For the Army National Guard, $147,500,000. 
For the Air National Guard, $50,000,000. 
For the Army Reserve, $90,000,000. 
For the Naval Reserve, $61,000,000. 
For the Air Force Reserve, $150,000,000. 
. -, 
For the Marine Corps Reserve, $65,000,000. 
(b) AUTHORIZATIONS IN ADDITION TO OTHER AMOUNTS.—The 
authorizations of appropriations contained in subsection (a) are in 
addition to any other amounts authorized to be appropriated by this 
or any other Act. 
(c) FY87 LIMITATION ON OBLIGATIONS FOR UNBUDGETED ITEMS.—Of 
the amount appropriated or otherwise made available to the Depart-
ment of Defense for fiscal year 1987 for procurement, not more than 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3827 
$563,500,000 may be obligated or expended for procurement of equip-
ment for the reserve components of the Armed Forces (including the 
National Guard) for items not included in the President's budget for 
fiscal year 1987, as set forth in the budget justification documents 
submitted to Congress in support of the budget request for the 
Department of Defense. 
(d) FUTURE BUDGET REQUESTS FOR GUARD AND RESERVE EQUIP-
MENT.—Section 114 of title 10, United States Code (as redesignated 
by section 101(a) and amended by section 110(b) of the Goldwater-
Nichols Department of Defense Reorganization Act of 1986 (Public 
Law 99-433)), is amended by adding at the end the following new Ante, p. looi. 
subsection: 
"(f) In each budget submitted by the President to Congress under 
section 1105 of title 31, amounts requested for procurement of 
equipment for the reserve components of the armed forces (includ-
ing the National Guard) shall be set forth separately from other 
amounts requested for procurement for the armed forces.". 
SEC. 106. EXTENSION OF CERTAIN AUTHORITY PROVIDED THE SECRE-
TARY OF DEFENSE IN CONNECTION WITH THE NATO AIR-
BORNE WARNING AND CONTROL SYSTEM (AWACS) PROGRAM 
Effective on October 1, 1986, section 103(a) of the Department of 
Defense Authorization Act, 1982 (Public Law 97-86; 95 Stat. 1100), is 
amended by striking out "fiscal year 1986" both places it appears 
and inserting in lieu thereof "fiscal year 1987". 
SEC. 107. MULTIYEAR CONTRACTS FOR FISCAL YEAR 1987 
(a) ARMY.—Subject to subsections (d) and (e), the Secretary of the 
Army may enter into a multiyear contract under section 2306(h) of 
title 10, United States Code, for the following programs: 
(1) UH-60A Blackhawk airframe. 
(2) EH-60A Quick Fix airframe. 
(3) Patriot missile system. 
(4) Stinger air defense missile system. 
O
b
) NAVY.—(1) Subject to subsection (d), the Secretary of the Navy 
may enter into a multiyear contract under section 2306(h) of title 1(), 
United States Code, for the following programs: 
(A) HARM missile system. 
(B) MK-45 gun mounts. 
(C) MK-6 ammunition hoists. 
(2) The Secretary of the Navy may not enter into a multiyear 
contract for the procurement of the F/A-18 aircraft. 
(c) AIR FORCE.—Subject to subsection (d), the Secretary of the Air 
Force may enter into a multiyear contract under section 2306(h) of 
title 10, United States Code, for the Defense Support Program. 
(d) LIMITATIONS ON AUTHORIZED MULTIYEAR PROCUREMENTS.—The 
Secretary concerned may not enter into a multiyear contract au-
thorized by this section for a program unless the total anticipated 
cost for the program over the period of the contract is no more than 
88 percent of the total anticipated cost of carrying out such program 
through annual contracts. In the case of the Defense Support Pro-
gram, the preceding sentence shall be applied by substituting "80 
percent" for "88 percent". 
(e) STINGER MISSILE.—(1) The Secretary of the Army may not 
enter into a contract for the multiyear procurement of the Stinger 
air defense missile until— 
(A) the Secretary— 
100 STAT. 3828 
PUBLIC LAW 99-661—NOV. 14, 1986 
(i) obtains and evaluates bids for a competitive second 
source for such missile; and 
(ii) certifies to the Committees on Armed Services of the 
Senate and the House of Representatives that acquisition of 
'i'i 
such missile from more than one source would be more 
costly than a multiyear procurement program from a single 
source; and 
(B) the Comptroller General of the United States evaluates 
the competitive proposals on the basis of which the Secretary 
made the decision referred to in subparagraph (A)(ii) and sub-
..:] W'.: 
mits his evaluation of the estimates to such committees. 
(2) The Comptroller General shall submit his evaluation under 
paragraph (1)(B) not later than 60 days after the date on which the 
certification of the Secretary under paragraph (1)(A) is received by 
such committees. 
SEC. 108. AIR FORCE FIGHTER COMPETITION 
(a) MULTIYEAR CONTRACTS.—Subject to provisions of appropria-
tions Acts, the Secretary of the Air Force may award a multiyear 
contract, that employs economic order quantity procurement, for 
the purchase of Air Defense Aircraft in accordance with section 
2306(h) of title 10, United States Code, without prior notice to 
Congress if the results of the competitive source selection dem-
onstrate that— 
(1) a multiyear contract will yield significant savings over the 
amount that would have resulted under an annual contract 
with the selected offeror; and 
(2) those savings have a positive present value. 
O
t
>
) CANCELLATION CEILING.—Subject to provisions of appropria-
tions Acts, the cancellation ceiling associated with the first year of a 
multiyear contract under subsection (a) may be carried as an un-
funded contingent liability subject to section 2306(h)(5) of title 10, 
United States Code. 
PART B—ARMY PROGRAM LIMITATIONS 
• 
SEC. 121. TESTING OF BRADLEY FIGHTING VEHICLE 
(a) REQUIRED TESTING.—The Secretary of Defense shall require 
that testing of the Bradley Fighting Vehicle (including live-fire 
testing and testing of the operational combat performance) and 
evaluation of that testing are carried out in accordance with this 
section. 
OJ) TEST PLAN FOR SURVIVABILITY ENHANCEMENTS AND OPER-
ATIONAL COMBAT PERFORMANCE.—(1) The Secretary of Defense shall 
develop a plan for the testing and evaluation of the Bradley Fight-
ing Vehicle required by subsection (a). The plan shall include testing 
of— 
(A) a version of the vehicle configured to include the surviv-
ability enhancements for the vehicle proposed by the Army 
(hereinafter in this section referred to as the "Army vehicle"); 
and 
(B) a version of the vehicle configured to include the concept 
of the so-called "minimum casualty vehicle" (hereinafter in this 
section referred to as the "minimum casualty vehicle"). 
(2) The plan developed under paragraph (1) shall include the 
following: 
(A) A plan 
for— 
c i.,4 #^ 
: 
^ 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3829 
(i) live-fire testing of the survivability of the Army vehicle 
and testing of the operational combat performance of such 
vehicle; and 
(ii) evaluation of such testing. 
(B) A plan for— 
(i) live-fire testing of the survivability of the minimum 
casualty vehicle and testing of the operational combat 
performance of such vehicle; and 
(ii) evaluation of such testing. 
(C) A plan for comparing the testing and evaluation under 
subparagraph (A) with the testing and evaluation under 
subparagraph (B). 
(3) The plan under paragraph (1) shall be developed to ensure that 
the testing of the Bradley Fighting Vehicle is the most realistic and 
suitable testing, at a reasonable cost, for evaluation of both vehicles. 
(4) The aspects of the plan developed under paragraph (1) relating 
to operational combat performance shall be developed in consulta-
tion with the Director of Operational Test and Evaluation of the 
Department of Defense. The aspects of the plan relating to surviv-
ability enhancements shall be developed in consultation the Direc-
tor of Defense Research and Engineering and the National Academy 
of Sciences. 
(c) CERTIFICATION OF PLAN.—(1) After developing the plan required 
by subsection (b), the Secretary shall certify to Congress that the 
plan for the testing of both versions of the Bradley Fighting Vehicle 
(including the conditions for the testing) is the most realistic and 
suitable plan, at a reasonable cost, for evaluation of the surviv-
ability and the likely operational combat performance of the Army 
vehicle and the minimum casualty vehicle. 
(2) The Comptroller General shall— 
(A) review all materials of the Department of Defense used to 
develop the plan with respect to which the certification under 
paragraph (1) is made; and 
(B) submit to the Committees on Armed Services and on Reports. 
Appropriations of the Senate and House of Representatives a 
report giving the assessment of the Comptroller General as to 
<• 
the realism and suitability of the plan (including the conditions 
for the testing set forth in the plan) for evaluation of the 
survivability and the likely operational combat performance of 
the Army vehicle and the minimum casualty vehicle. 
(d) CONDUCT OF TESTING.—The Secretary of the Army shall test 
+
• 
.q?;' 
both versions of the Bradley Fighting Vehicle in accordance with 
the plan (including the conditions for the testing set forth in the 
plan) with respect to which the certification was made. 
(e) REVIEW AND OVERSIGHT.—(1) The Director of Operational Test 
and Evaluation of the Department of Defense shall review the 
results of the operational testing of the vehicle. The Director of 
Defense Research and Engineering shall review the results of the 
survivability testing of the vehicle. 
(2) The Director of Operational Test and Evaluation, the Director 
of Defense Research and Engineering, and the Comptroller General 
(or members of their respective staffs) shall each observe the con-
duct of the testing. 
(f) REPORTS.—(1) The Secretary of Defense shall submit to Con-
gress a report on the results of the testing of the Bradley Fighting 
Vehicle under this section. The report shall include such 
findings 
i 
;. j 
and recommendations as the Secretary considers appropriate. 
100 STAT. 3830 
PUBLIC LAW 99-661—NOV. 14, 1986 
Reports. 
(2) The Comptroller General shall submit to Congress a report on 
the testing of the Bradley Fighting Vehicle. The report shall 
include— 
(A) the opinion of the Comptroller General on the adequacy of 
the testing and on the test results; and 
(B) the opinion of the Comptroller General (to the extent 
appropriate) on the conclusions and recommendations of the 
Secretary set forth in the report under paragraph (1). 
SEC. 122. OTHER LIMITATIONS ON ARMY PROCUREMENT 
(a) 120-MiLLiMETER MoRTAR PROGRAM.—(1) Except as provided in 
paragraph (3), funds appropriated or otherwise available for 
procurement for the Army may not be obligated for procurement of 
120-millimeter mortars manufactured or assembled outside the 
United States or for procurement of ammunition manufactured 
outside the United States for 120-millimeter mortars. 
(2) Funds appropriated or otherwise made available for fiscal year 
1987 for procurement for the Army may not be obligated for 
procurement of 120-millimeter mortars until the Secretary of the 
Army conducts a cost-effectiveness analysis of potential domestic 
sources for the manufacture of such mortars. 
(3) Paragraph (1) does not apply to procurement of mortars 
required— 
(A) for testing, evaluation, or type classification; or 
(B) for equipping the Ninth Infantry Division. 
(b) MOTORCYCLES.—Funds appropriated or otherwise made avail-
able for fiscal year 1987 for procurement for the Army may not be 
obligated for procurement of motorcycles until the Secretary of the 
Army certifies to Congress that the acquisition strategy of the Army 
for procurement of motorcycles includes consideration o
f
— 
(1) life-cycle costs; 
(2)safety; 
, 
v ^ 
(3) maintenance; and 
;
,
< 
(4) durability. 
(c) AIR-TO-AIR STINGER MISSILE.—Funds appropriated or otherwise 
made available for fiscal year 1987 for procurement of aircraft for 
the Army may not be obligated for the modification program for the 
air-to-air Stinger missile until the Secretary of the Army— 
(1) establishes a comprehensive acquisition plan for procure-
ment of air-to-air Stinger missiles for Army aircraft; and 
Reports. 
(2) submits a report on such plan to the Committees on Armed 
Services of the Senate and House of Representatives. 
(d) AQUILA REMOTELY PILOTED VEHICLE.—None of the funds appro-
priated to the Army pursuant to this title may be obligated or 
expended for the procurement of the Aquila Remotely Piloted 
Vehicle until— 
(1) the Director of Operational Test and Evaluation of the 
Department of Defense completes a comprehensive assessment 
of the Aquila system; and 
(2) the Secretary of the Army certifies to the Committees on 
Armed Services of the Senate and House of Representatives 
that— 
(A) the Aquila system has satisfactorily demonstrated 
that it meets or exceeds all performance criteria established 
for the system by the Army; and 
Contracts. 
(B) the Secretary has negotiated a contract that— 
i 
(i) provides for procurement of the entire system, and 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3831 
(ii) limits the overall liability of the United States 
under the contract. 
(e) MOBILE SUBSCRIBER EQUIPMENT PROGRAM.—The total program 
acquisition cost for the communications and electronics equipment 
program of the Army known as the Mobile Subscriber Equipment 
Program (as such program exists on the date of the enactment of 
this Act) may not exceed $4,300,000,000. If the total program acquisi-
tion cost for such program (as it exists on the date of the enactment 
of this Act) is determined at any time to exceed such amount, the 
Secretary of the Army shall cancel the program. 
PART C—NAVY PROGRAM LIMITATIONS 
SEC. 131. REPEAL OF LIMITATION ON DDG-51 DESTROYER PROGRAM 
Section 102(h) of the Department of Defense Authorization Act, 
1985 (Public Law 98-525; 98 Stat. 2501), is repealed. 
« ai. >rSr>&m 
SEC. 132. BASIC POINT DEFENSE MISSILE SYSTEM ON AMPHIBIOUS 
VESSELS 
The Secretary of the Navy shall maintain in an operational status 
the Basic Point Defense Missile System on any amphibious vessel 
equipped on the date of the enactment of this Act with such system 
until a follow-on system, of comparable capability, is available for 
immediate replacement of the system on such vessel. This section 
does not apply to a vessel that is retired. 
SEC. 133. ROLLING AIRFRAME MISSILE PROGRAM 
; n o *5i 
(a) REQUIRED CERTIFICATION.—(1) None of the funds appropriated 
or otherwise made available to the Navy for fiscal year 1987 for 
procurement may be obligated or expended in connection with 
procurement of the Rolling Airframe Missile program until the 
Secretary of Defense certifies in writing to the Committees on 
Armed Services of the Senate and House of Representatives that— 
(A) the total amount expended by the Navy for research, Research and 
development, test, and evaluation for such program will not development. 
exceed $219,700,000; 
(B) the Secretary will terminate the program if at any time he 
b' 
determines that the total Navy research and development cost 
for the program will exceed the amount specified in subpara-
? 
graph (A); 
f: 
(C) the development contractor for the program has offered Contracts. 
the Department of Defense a firm fixed-price contract option 
tf 
with no expiration date for an initial quantity of 500 missiles 
(integrated with the required Government-furnished compo-
nents and tested to the complete missile level) which will result 
in a recurring missile unit flyaway cost that does not exceed 
$145,000 (based on fiscal year 1986 dollars); 
(D) the recurring missile unit flyaway cost for a minimum of 
4,900 missiles will not exceed $100,000 (based on fiscal year 1986 
dollars); 
(E) the design of the Rolling Airframe Missile and its unique 
' 
support equipment are complete and the system performance 
has not been degraded from the original development specifica-
'' 
tions (as contained in Navy Decision Coordinating Paper No. 
SO-167-AA); 
71-194 0 - 89 - 13 : CL. 3 Part5 
100 STAT. 3832 
PUBLIC LAW 99-661—NOV. 14, 1986 
Federal Republic 
of Germany. 
Effective date. 
9* 
(F) the Director of Operational Test and Evaluation of the 
Department of Defense has approved a test and evaluation 
master plan for the Rolling Airframe Missile program; and 
(G) the contractor for the production contract for the program 
has agreed to provide to the United States, at no additional cost 
to the United States or to the Federal Republic of Germany, a 
complete data package containing no manufacturing or propri-
etary data rights of the contractor in conjunction with a license 
to the United States under which rights are granted to enable a 
second source contractor designated by the United States to 
manufacture and sell to the United States or the Federal 
Republic of Germany on a royalty-free basis, and to enable the 
United States and the Federal Republic of Germany to use, on a 
royalty-free basis, the Ex-44 Guided Missile Round Pack consist-
ing of guidance and control section, tail assembly, and 
canister. 
(2) If the Secretary of Defense fails to make the certification 
described in paragraph (1) before April 1, 1987, the Secretary shall 
terminate the program effective on that date. 
(b) REPEAL.—Subsection (d) of section 205 of the Department of 
Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 608), is 
repealed. 
. ^ 
PART D—AIR FORCE PROGRAM LIMITATIONS 
Reports. 
.aiss-iir. 
SEC. 141. ADVANCED TECHNOLOGY BOMBER 
(a) ACQUISITION STRATEGY.—(1) The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a report describing the acquisition strat-
egy of the Secretary for the Advanced Technology Bomber program. 
(2) Except as provided in subsection (b), the acquisition strategy 
described in the report shall include an analysis of alternatives for 
limiting program costs during production, including the following: 
(A) Alternative sources for major systems of the Advanced 
Technology Bomber. 
(B) Alternative sources for major subsystems of the bomber. 
(C) Competition during the integration and assembly of the 
' ' bomber. 
(D) A limitation on the total program cost for 132 Advanced 
Technology Bomber aircraft. 
(8) The report under paragraph (1) shall include the recommenda-
tions of the Secretary with respect to the choice and timing of such 
alternatives. 
(4) The report under paragraph (1) shall be submitted not later 
than the date on which the President submits the budget to Con-
gress for fiscal year 1988. 
(b) EXCEPTION FOR COMPETITIVE ALTERNATIVE SOURCE REQUIRE-
MENT.—(1) The Secretary of Defense need not recommend the 
implementation of any of the alternatives if the Secretary deter-
mines that the application of those alternatives to control program 
costs would— 
(A) increase the total cost of the program; 
(B) result in unacceptable delays in fulfilling the needs of the 
Department of Defense; or 
(C) be adverse to the national security interests of the United 
States. 
;ii-i.#i~iiOi.'-\/.t-' 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3833 
(2) If the Secretary makes a determination under paragraph (1), 
the report of the Secretary under subsection (a) shall include— 
(A) a notice of such determination; and 
(B) documentation in support of such determination, includ-
ing comparative cost and schedule estimates and other back-
ground material. 
(c) LIMITATION ON AMOUNT AVAILABLE FOR FY87.—The Secretary 
of Defense may not obligate funds appropriated for fiscal year 1987 
for the Advanced Technology Bomber in an amount greater than 
the amount appropriated for such program for fiscal year 1986 until 
the Secretary submits the report described in subsection (a). 
(d) REVISIONS TO ACQUISITION STRATEGY.—After the report re-
quired by subsection (a) is submitted, the Secretary of Defense may 
not implement a revision to the acquisition strategy described in the 
report until— 
(1) the Secretary submits to the committees named in that 
subsection a report describing the proposed revision; and 
r 
(2) a period of 60 days passes after the date on which the 
report on the revision is received by the committees. 
(e) FINANCIAL ANALYSIS.—(1) In determining for purposes of 
subsection (a) the appropriate amount for a limitation on the total 
program cost for the development and production of 132 Advanced 
Technology Bomber aircraft, the Secretary of Defense shall conduct 
a detailed financial analysis on the projected cost of such develop-
ment and production. 
(2) Not later than 90 days after the date of the enactment of this 
Act, the Secretary shall submit to Congress a report setting forth 
the results of the analysis required under paragraph (1), including 
the current estimate of the projected total cost for the development 
and production of 132 Advanced Technology Bomber aircraft. 
(3) The Secretary shall submit a copy of the report under para-
graph (2) to the Comptroller General of the United States for review. 
The Secretary shall make available to the Comptroller General such 
additional data and information as the Comptroller General re-
quires for the purposes of such review. A report by the Comptroller 
General concerning data and information provided under this para-
graph may, consistent with the classification of such report, be 
provided to Congress. Any such report shall be prepared with due 
regard to the sensitivity of the information received from the Sec-
retary in such manner as will avoid disclosure of data or informa-
tion which could adversely affect ongoing contract negotiations or 
the national security. 
SEC. 142. PROHIBITION ON USING FUNDS AUTHORIZED FOR THE AD-
V A N C E D TECHNOLOGY BOMBER AND THE ADVANCED CRUISE 
MISSILE PROGRAMS FOR ANY OTHER PURPOSE AND LIMITA-
TION ON THE B-IB BOMBER FLEET TO 100 AIRCRAFT 
L. (a) SENSE OF CONGRESS.—It is the sense of Congress that— 
(1) the capabilities inherent in the technologies associated 
with the Advanced Technology Bomber and the Advanced 
Cruise Missile Program are a critical national security asset for 
I 
maintaining an adequate and credible deterrent posture; 
(2) such technologies and programs should be developed as 
rapidly as feasible in order to produce and deploy advanced 
systems which will complicate the military planning of the 
Soviet Union and as a consequence enhance the deterrent 
posture of the United States; 
Reports. 
Reports. 
Contracts. 
oasil 
Union of Soviet 
Socialist 
Republics. 
100 STAT. 3834 
PUBLIC LAW 99-661—NOV. 14, 1986 
OCjfJW 
':hii!i(>.j 
Reports. 
Reports. 
(3) such technologies and programs should be funded at the 
< levels authorized in this Act; and 
(4) all the funds appropriated for such programs should be 
^
5 fully used for such programs. 
(b) ATB AND ACM PROGRAMS.—Funds appropriated to the Depart-
ment of Defense for fiscal year 1987 to carry out the Advanced 
Technology Bomber Program may not be used for any other pur-
pose. Funds appropriated to the Department of Defense for fiscal 
year 1987 to carry out the Advanced Cruise Missile Program may 
not be used for any other purpose. 
(c) B-IB AIRCRAFT.—Funds appropriated to the Department of 
Defense may not be used for procurement (including procurement of 
long-lead items, materials, systems, or subsystems) of the B-IB 
bomber aircraft beyond the 100 such bombers authorized by law 
before the date of the enactment of this Act. 
SEC. 143. C-17 AIRCRAFT PROGRAM 
Of the funds appropriated to the Air Force for procurement of the 
C-17 aircraft for fiscal year 1987, not more than $64,000,000 may be 
obligated before April 15, 1987. 
SEC. 
144. ADVANCED MEDIUM-RANGE AIR-TO-AIR MISSILE PROGRAM 
(a) CONDITIONS FOR LOW-RATE PRODUCTION.—Funds appropriated 
or otherwise made available for fiscal year 1987 for procurement of 
missiles for the Air Force may not (except as provided under subsec-
tion (c)) be obligated for low-rate production procurement of the 
Advanced Medium-Range Air-to-Air Missile (AMRAAM) until— 
(1) the Secretary of the Air Force evaluates the results of the 
flight tests of the performance of the missile in comparison with 
the Milestone IIIA Low Rate Initial Production Go-Ahead deci-
sion criteria contained in the November 27, 1985, Appendix 1 to 
Annex B of the AMRAAM Decision Coordinating Paper; and 
(2) the Secretary submits to the Committees on Armed Serv-
ices of the Senate and House of Representatives a report 
describing such test results and the Secretary's evaluation of 
such test results under paragraph (1). 
(b) TESTING OF PRODUCIBILITY ENHANCEMENTS.—The Secretary of 
the Air Force shall test producibility enhancements for such missile 
before such enhancements are incorporated 
into 
production 
missiles. 
(c) LIMITATION ON LONG-LEAD PROCUREMENT.—Of the amount 
described in subsection (a), not more than $170,000,000 may be 
obligated for long-lead procurement of such missiles without regard 
to the limitation in such subsection. 
(d) TOTAL PROCUREMENT COST.—The cost of procurement of such 
missile may not exceed $7,000,000,000 (in fiscal year 1984 dollars), 
based upon procurement of 24,0()0 missiles. The amount of the 
limitation in the preceding sentence may be adjusted to reflect the 
effects of congressional funding actions on the established program. 
Notice of any such adjustment shall be provided to Congress in the 
next report submitted with respect to such missile program under 
section 2432 of title 10, United States Code, relating to Selected 
Acquisition Reports. 
SEC. 145. T-46 AIRCRAFT PROGRAM 
(a) COMPETITION FOR TRAINER AIRCRAFT.—(1) No funds may be 
obligated or expended for the procurement of the T-46 trainer 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3835 
aircraft until the Secretary of the Air Force conducts a competition 
evaluating the cost and performance of the following: 
(A) The proposed T-46A trainer aircraft. 
(B) The existing T-37 trainer aircraft. 
(C) An upgraded T-37 trainer aircraft. 
(D) Any other aircraft capable of meeting Air Force training 
requirements. 
(2) The competition described in paragraph (1) shall include a fly-
off between the T-37, T-46, and any other candidate aircraft for 
such competition. 
(3) Any funds appropriated to the Air Force for fiscal year 1986 for 
the T-46 aircraft program and which remain available for obligation 
may be used for the purpose of conducting the competition referred 
to in paragraph (1). 
(b) LIMITATION ON FISCAL YEAR 1987 FUNDS.—Funds appropriated 
to the Air Force for fiscal year 1987 may not be used for procure-
ment of the T-46 aircraft. 
PART E—CHEMICAL WEAPONS 
. VKQiiifJOii 
SEC. 151. AUTHORIZATION OF APPROPRIATIONS FOR CHEMICAL DEMILI-
TARIZATION PROGRAM 
(a) 
AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby 
authorized to be appropriated to the Secretary of Defense for fiscal 
year 1987 for the destruction of lethal chemical agents and muni-
tions in accordance with section 1412 of the Department of Defense 
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 747), in the 
amount of $120,100,000. 
OJ) LIMITATION OF OBLIGATION.—Funds appropriated or otherwise 
made available for procurement for fiscal year 1987 for the program 
described in subsection (a) may not be obligated in excess of the 
amount authorized to be appropriated in that subsection. 
SEC. 152. LIMITATION ON THE EXPENDITURE OF FUNDS FOR THE BIGEYE 
BINARY CHEMICAL BOMB 
(a) LIMITATION ON FISCAL YEAR 1987 FUNDS.—Before October 1, 
1987, funds appropriated for fiscal year 1987 for procurement of the 
BIGEYE binary chemical bomb may not be obligated— 
(1) for procurement (including procurement of components) of 
such bomb; or 
(2) for assembly of such bomb. 
(b) LIMITATION ON FINAL ASSEMBLY.—Before October 1, 1988, 
funds appropriated or otherwise made available to the Department 
of Defense may not be obligated or expended for the final assembly 
of complete BIGEYE binary chemical bombs. 
(c) LIMITATION ON FISCAL YEAR 1986 FUNDS FOR PRODUCTION 
FACILITIES.—(1) Of the funds appropriated for fiscal year 1986 for 
production facilities for the BIGEYE binary chemical bomb, not 
more than $90,000,000 may be obligated or expended. None of such 
amount may be obligated or expended until the President certifies 
to Congress that— 
(1) production of the BIGEYE binary chemical bomb is in the 
national security interests of the United States; and 
(2) the design, planning, and environmental requirements for 
such facilities have been satisfied. 
50 u s e 1521. 
'3felV0« 
President of U.S. 
Defense and 
national 
security. 
100 STAT. 3836 
PUBLIC LAW 99-661—NOV. 14, 1986 
(d) GAO MONITORING AND REPORT.—(1) The Secretary of Defense 
shall provide for the involvement of the Comptroller General in 
monitoring the operational testing of the BIGEYE bomb. 
(2) After any such testing is completed, the Comptroller General 
shall submit to the Committees on Armed Services of the Senate and 
House of Representatives a report on such testing. The report shall 
include an assessment of such testing and any comments the 
Comptroller General considers appropriate. 
(e) REPORT ON LONG-RANGE STANDOFF CHEMICAL MUNITIONS.—(1) 
The Secretary of Defense shall submit to Congress a report on the 
military requirements for long-range standoff chemical weap ns. 
The report shall address the military advantages and disadvantages 
of such weapons and the potential of such weapons to complement 
the currently planned binary chemical weapon systems. 
(2) Such report shall be submitted not later than March 15, 1987. 
SEC. 153. CHEMICAL WEAPONS, AGENTS, OR COMPONENTS AT LEXING-
TON-BLUEGRASS DEPOT 
Kentucky. 
(a) PROHIBITION ON SHIPMENTS TO DEPOT.—No chemical weapons, 
agents, or components used in chemical weapons may be shipped 
into the Lexington-Bluegrsiss Depot in Richmond, Kentucky, for any 
purpose, including disposal. 
(b) PROHIBITION ON FUTURE USE OF DEPOT.—After disposal of the 
chemical weapons stockpile stored at the Lexington-Bluegrass 
Depot, as required by section 1412 of the Department of Defense 
Authorization Act, 1986 (Public Law 99-145), the depot may not be 
used for assembly, construction, testing, storage, or disposal of any 
chemical or biological weapon. 
(c) WAIVER AUTHORITY.—The Secretary of Defense may waive the 
provisions of subsection (a) or (b) if the Secretary determines that 
such a waiver is in the national security interest of the United 
States. 
SEC. 154. REPORT ON CHEMICAL WEAPONS DEMILITARIZATION PROGRAM 
(a) REPORT REQUIREMENT.—The Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and House of 
Representatives a report on the chemical weapons demilitarization 
program required by section 1412 of the Department of Defense 
50 use 1521. 
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 747). The report 
shall describe— 
(1) methods for carrying out such program that would opti-
mize safety considerations; and 
(2) methods for carrying out such program that would opti-
mize cost-effectiveness considerations. 
(b) DEADUNE FOR REPORT.—The report required by subsection (a) 
shall be submitted not later than February 1,1987 
' 
T - ' 
SEC. 155. TECHNICAL AMENDMENT TO PUBLIC LAW 99-145 RELATING TO 
J 
BINARY CHEMICAL MUNITIONS 
' 
' 
Section 1411(bXl) of the Department of Defense Authorization 
Act, 1986 (Public Law 99-145; 99 Stat. 745), is amended by striking 
out "North Atlantic Council" and inserting in lieu thereof "Defense 
Planning Committee of the North Atlantic Treaty Organization 
meeting in permanent session". 
50 use 1521. 
Defense and 
national 
security. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3837 
TITLE II—RESEARCH, DEVELOPMENT, TEST AND 
EVALUATION 
PART A—AUTHORIZATION OF APPROPRIATIONS AND PROGRAM 
^^'^ 
LIMITATIONS 
> i 
SEC. 201. AUTHORIZATION OF APPROPRIATIONS 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal year 1987 for the use of the Armed Forces for research, 
development, test, and evaluation in amounts as follows: 
(1) For the Army, $4,712,729,000. 
(2) For the Navy (including the Marine Corps), $9,294,106,000. 
(3) For the Air Force, $15,019,084,000. 
(4) For the Defense Agencies, $7,189,633,000, of which— 
'^^'^ 
(A) $133,800,000 is authorized for the activities of the 
Deputy Under Secretary of Defense, Test and Evaluation; 
and 
(B) $11,300,000 is authorized for the Director of Oper-
ational Test and Evaluation. 
(h) LIMITATION ON OBLIGATIONS.—The maximum amount that may 
be obligated from an account for which funds are authorized to be 
appropriated in subsection (a) is the amount authorized to be appro-
priated for such account under that subsection plus any amount 
authorized for such account under subsection (b) plus the following: 
(1) For the Army, $5,830,000. 
(2) For the Navy, $72,000. 
:ik: 
(3) For the Air Force, $2,400,000. 
SEC. 202. LIMITATION ON COPPERHEAD GUIDED PROJECTILE 
(a) REQUIREMENT FOR SECOND SOURCE.—The Secretary of the 
Contracts. 
Army may not enter into a contract for any product improvement or 
modification to the Copperhead Guided Projectile until the Sec-
retary of Defense submits to Congress a written certification that— 
(1) a competition for a second source for production of such 
projectile has been conducted; and 
(2) a second source for production of such projectile has been 
selected. 
(h) PRODUCT IMPROVEMENT OR MODIFICATION.—For purposes of 
subsection (a), a product improvement or modification is any change 
to the production configuration of the Copperhead Guided Projectile 
in effect on the date of the enactment of this Act. 
(c) EXPIRATION OF LIMITATION.—The limitation in subsection (a) 
i' 
expires upon the enactment of a law making appropriations for the 
Department of Defense for fiscal year 1988. 
SEC. 203. LIMITATIONS ON FUNDS FOR THE NAVY 
(a) V-22 OSPREY AIRCRAFT.—Of the funds authorized in section 
201 for the Navy, not more than $386,871,000 is available for the 
V-22 Osprey aircraft. Not more than one-half of such amount may 
be obligated or expended until the Secretary of the Navy certifies to 
the Committees on Armed Services of the Senate and the House of 
Representatives in writing that— 
^ 
(1) such aircraft is capable of performing the antisubmarine 
im 
warfare mission currently performed by the S-3A aircraft; and 
(2) such aircraft is the most cost effective aircraft to perform 
that mission. 
100 STAT. 3838 
PUBLIC LAW 99-661—NOV. 14, 1986 
(b) MARINE CORPS PEGASUS ENGINE.—Of the funds appropriated 
pursuant to authorizations in this title, not less than $8,000,000 
shall be used for safety and reliability improvements for the Marine 
Corps AV-8B aircraft Pegasus engine program. 
Reports. 
(c) AviONics RACK FOR S-3 AIRCRAFT.—The Secretary of the Navy 
shall submit to the Committees on Armed Services of the Senate and 
the House of Representatives not later than 30 days after the date of 
the enactment of this Act a report on the manner in which the Navy 
proposes to correct whatever deficiencies exist in the avionics rack 
for the S-3 aircraft. 
(d) RANKINE CYCLE ENERGY RECOVERY (RACER) SYSTEM.—Of the 
funds appropriated to the Navy for research, development, test, and 
evaluation for fiscal year 1987, the sum of $20,000,000 shall be 
available to the Secretary of Defense for evaluation of the Rankine 
Cycle Energy Recovery (RACER) system and such testing as the 
Secretary determines necessary. 
(e) LOW-COST SEEKER MISSILE.—Of the funds authorized in section 
201 for the Navy, $39,704,000 is available only for the Low-Cost 
Seeker Missile program. 
(f) TRIDENT II PROGRAM.—None of the funds appropriated to the 
Department of Defense for fiscal year 1987 for the Trident II missile 
development program or for the procurement of Trident II missiles 
and related support equipment may be used for any other purpose. 
In achieving any undistributed reduction required to be made in 
programs, projects, or activities for which funds have been appro-
priated to the Department of Defense for fiscal year 1987, the 
Secretary of the Navy may not reduce the amount of funds available 
for the program and equipment described in the preceding sentence. 
Reports. 
(g) FUNDS FOR LiBYAN LESSONS-LEARNED EQUIPMENT MODIFICA-
TION.—Of the amount appropriated for research, development, test, 
and evaluation for the Navy for fiscal year 1987, $50,000,000 may be 
obligated or expended for programs directly related to the Libyan 
lessons-learned study, subject to the condition that none of the funds 
may be obligated or expended for such programs until 30 days after 
the date on which the Secretary of the Navy submits to the Commit-
tees on Armed Services of the Senate and House of Representatives 
a report explaining the purposes for which the funds are proposed to 
be used. 
SEC. 204. LIMITATIONS ON FUNDS FOR THE AIR FORCE 
Reports. 
(a) SHORT-RANGE ATTACK MISSILE.—None of the funds appro-
priated to the Department of Defense for fiscal year 1987 for 
research, development, test, and evaluation may be obligated or 
expended for the purpose of full-scale development of a new or 
modified short-range attack missile (SRAM) until the Secretary of 
Defense submits to the Committees on Armed Services of the Senate 
and House of Representatives a report concerning the short-range 
attack missile that includes the following: 
(1) Data and other information sufficient to compare— 
(A) the total program cost, and the effectiveness, of the 
minimum modification of the existing motors for such mis-
• -. > ( 
sile; with 
(B) the total program cost, and the effectiveness, of the 
'.lA'-i 
development of a new short-range attack missile; 
(2) Data and other information sufficient to compare— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3839 
Y r :, . 
(A) the total program cost, and the effectiveness, of the 
modification of an existing warhead for the short-range 
attack missile; with 
(B) the total program cost, and the effectiveness, of the 
j.Y 
development of an all new warhead for the short-range 
attack missile. 
, ; 
(3) The recommendation of the Secretary with respect to the 
^ 
most cost-effective missile and warhead configuration for the 
short-range attack missile. 
Ob) LOW-COST SEEKER MISSILE.—Of the funds authorized in section 
201 for the Air Force, $17,375,000 is available only for the Low-Cost 
Seeker Missile program. 
(c) SPACE DEFENSE SYSTEM.—Of the amount authorized in section 
201 for the Air Force, not more than $200,000,000 is available for the 
Space Defense System. None of such amount may be used for the 
production verification of the Miniature Homing Vehicle. 
(d) PAVE TIGER/SEEK SPINNER SYSTEM.—Of the funds authorized 
in section 201 for the Air Force, $80,000,000 is available only for 
facilitization for production of the Pave Tiger/Seek Spinner System. 
SEC. 205. LIMITATION ON FUNDS FOR DEFENSE AGENCIES 
(a) 
MEDICAL APPLICATION OF FREE ELECTRON LASER.—Of 
the 
amount authorized in section 201 for the Defense Agencies (includ-
ing the Strategic Defense Initiative Organization), $15,000,000 may 
be used only for the application of Free-Electron Lasers for medical 
research and material. 
(b) LASER PANTOGRAPHY.—Of the amount authorized to be appro-
priated in section 201 for the Defense Agencies for Microwave/ 
Millimeter Wave Monolithic Integrated Circuit Technology efforts, 
$4,000,000 is available only for the Laser Pantography project. 
(c) STRATEGIC TECHNOLOGY.—Of the funds authorized in section 
201 for the Defense Agencies, $240,620,000 is available only for the 
Strategic Technology program. Of such amount, $10,000,000 is avail-
able only for independent research in the field of ocean science and 
related fields to provide an assessment of the possibilities of 
nonacoustic detection of submarines. 
SEC. 206. OTHER LIMITATIONS 
(a) ADVANCED FIELD ARTILLERY TACTICAL DATA SYSTEM/MARINE 
INTEGRATED FIRE AND AIR SUPPORT SYSTEMS, 
ARMY/NAVY.—(1) 
Except as provided in paragraph (2), none of the funds appropriated 
or otherwise made available to the Department of Defense for fiscal 
year 1987 for research, development, test, and evaluation may be 
obligated or expended for the development of the Army Advanced 
Artillery Tactical Data System or the Marine Integrated Fire and 
Support System (MIFASS) until— 
(A) a single program is selected for both the Army and the 
Marine Corps; or 
, 
(B) the Secretary of Defense certifies to Congress, before 
: 
December 16, 1986, that continuation of both programs is oper-
ationally sound and less costly to the United States than the 
development of a common system for use by both the Army and 
Marine Corps. 
(2) Of the funds referred to in paragraph (1), not more than 
$3,000,000 may be obligated without regard to the limitation in such 
paragraph for operational testing of the Marine Integrated Fire and 
Support System. 
100 STAT. 3840 
PUBLIC LAW 99-661—NOV. 14, 1986 
(b) ADVANCED TACTICAL AIRCRAFT AND ADVANCED TECHNOLOGY 
FIGHTER.—(1) The Secretary of the Navy may not obligate funds for 
the full-scale development of the Navy Advanced Tactical Aircraft 
program until the Secretary of Defense certifies to Congress that the 
design selected for the aircraft will accommodate essential Air 
Force-peculiar requirements for such aircraft, 
(2) The Secretary of the Air Force may not obligate funds for the 
full-scale development of the Air Force Advanced Technology 
Fighter program until the Secretary of Defense certifies to Congress 
that the design selected for the aircraft will accommodate essential 
Navy-peculiar requirements for such aircraft. 
(3) After September 30, 1987, funds appropriated to the Depart-
ment of Defense may not be obligated for the Advanced Tactical 
Aircraft program of the Navy or the Advanced Technology Fighter 
program of the Air Force unless the Secretary of Defense certifies to 
Congress that— 
(A) the requirements for both such programs have been final-
ized; and 
-Ot 
(B) such requirements, as finalized, have been agreed to by 
the Secretary of the Navy, the Secretary of the Air Force, and 
the Office of the Secretary of Defense. 
SEC. 207. ADVANCED ANTI-ARMOR WEAPON SYSTEM 
jii 
(a) FEASIBILITY DEMONSTRATION OF CANDIDATE SYSTEMS.—Of the 
funds authorized in section 201 for the Army, $48,735,000 is 
authorized to be appropriated for the Advanced Anti-Armor Weapon 
System Medium (AAWS-M) program, but funds may be obligated 
for such program only i
f
— 
(1) the Secretary of the Army begins a prototype feasibility 
demonstration of not more than three candidate systems for 
such program, including a true fire-and-forget candidate; 
(2) the feasibility demonstration for such a system is capable 
y'- of being completed within 27 months after the date of the 
hi-..-- enactment of this Act; 
(3) the official responsible for test planning and evaluation for 
the feasibility demonstration is the Director of Test and Evalua-
tion of the Department of Defense; and 
(4) the actual conduct of the feasibility demonstration is 
carried out jointly by the Army and the Marine Corps. 
(b) 
REQUIREMENT FOR SATISFACTION OF SERVICE ANTI-ARMOR 
REQUIREMENTS.—The Secretary of Defense may not authorize the 
initiation of full-scale engineering development of the winning 
AAWS-M candidate until— 
(1) the Secretary of the Army certifies to the Committees on 
Armed Services and Appropriations of the Senate and House of 
Representatives that the winning system meets the anti-armor 
requirement of the Army; and 
(2) the Secretary of the Navy, upon recommendation of the 
Commandant of the Marine Corps, certifies to such Committees 
that the winning system meets the anti-armor requirement of 
the Marine Corps. 
SEC. 208. ELECTRONIC WARFARE MASTER PLAN 
(a) ELECTRONIC WARFARE CONSOLIDATION.—The Under Secretary 
of Defense for Acquisition shall prepare an Electronic Warfare 
Master Plan providing policy guidance in electronic warfare to the 
Secretaries of the military departments. The master plan shall be 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3841 
coordinated with the policy and fiscal guidance of the Secretary of 
Defense. The Under Secretary shall submit the master plan to the 
Committees on Armed Services of the Senate and House of 
Representatives. 
(b) OBLIGATION LIMITATION.—Not more than 80 percent of the 
amount appropriated to each of the military departments for fiscal 
year 1987 for research, development, test, and evaluation of elec-
tronic warfare systems may be obligated until the Under Secretary 
of Defense for Acquisition transmits to the committees the Elec-
tronic Warfare Master Plan prepared under subsection (a). 
(c) AMOUNTS AUTHORIZED.—Of the amounts appropriated to the 
Department of Defense for research, development, test, and evalua-
tion for fiscal year 1987, not less than $100,000,000 shall be available 
to the Under Secretary of Defense for Acquisition for research, 
development, test, and evaluation of electronic warfare systems. 
SEC. 209. LIMITATION ON TESTING ELECTROMAGNETIC PULSE 
During fiscal year 1987, the Secretary of the Navy may not carry 
out a demonstration test of an electromagnetic pulse in the Chesa-
peake Bay, Maryland and Virginia, in connection with the Electro-
magnetic Pulse Radiation Environment Simulator Program for 
Ships. 
PART B—STRATEGIC DEFENSE INITIATIVE 
Research and 
development. 
SEC. 211. FISCAL YEAR 1987 FUNDING LEVEL FOR STRATEGIC DEFENSE 
INITIATIVE 
Of the amount authorized in section 201 for research, develop-
ment, test, and evaluation for the Defense Agencies, not more than 
$3,213,000,000 is available for the Strategic Defense Initiative (SDI) 
Program. 
SEC. 212. JOINT DEVELOPMENT OF ANTITACTICAL BALLISTIC MISSILE 
SYSTEM 
Of the funds available for the Strategic Defense Initiative under 
section 211, not more than $50,000,000 shall be available for the 
joint development, on a matching fund basis, of an anti-tactical 
ballistic missile system for deployment with NATO allies and other 
countries that the United States has invited to participate in the 
Strategic Defense Initiative Program. 
SEC. 213. LIMITATION ON ESTABLISHMENT OF A FEDERALLY FUNDED 
RESEARCH AND DEVELOPMENT CENTER FOR THE STRATEGIC 
DEFENSE INITIATIVE PROGRAM 
(a) LIMITATION.—The Secretary of Defense may not obligate or 
expend any funds for the purpose of operating a Federally funded 
research and development center that is established for the support 
of the Strategic Defense Initiative Program after the date of the 
enactment of this Act unless— 
(1) the Secretary submits to the Committees on Armed Serv-
ices of the Senate and House of Representatives a report with 
respect to such proposed center that provides the information 
described in subsection Ot)); and 
(2) funds are specifically authorized to be appropriated for 
' / 
such purpose after the date of the enactment of this Act in ar 
'- 
Act other than— 
(A) an appropriations Act; or 
10 u s e 2431 
note. 
Report. 
100 STAT. 3842 
PUBLIC LAW 99-661—NOV. 14, 1986 
(B) a continuing resolution, 
(b) CONTENT OF REPORT.—A report submitted under subsection 
(a)(1) with respect to a proposed center shall include a discussion 
of— 
•.,.; 
-...^•aP- 
(1) the ability of existing Federally funded research and devel-
i,;>r, . vsr 
|£ 
opment centers, Federal research laboratories, and private con-
: 
tractors to perform the objectives of technological integration 
•f 
and evaluation required by the Strategic Defense Initiative 
c 
Organization; 
(2) the comparative cost of having the proposed work per-
•
* 
formed by— 
-fc 
(A) the Strategic Defense Initiative Organization; 
M\ i^ 
(B) Federally funded research and development centers in 
/ -;. 
existence on the date of the enactment of this Act; 
,. 
<
^
C
) by Federal research laboratories; 
50 
tn »rr •! 
>
i 
(D) by private contractors; or 
(E) by such center; 
''' * ^^'-^ • "'• "
^ -
-i.:> (3) whether such center is intended to be— 
r 
-' 
.irs ID 
(A) primarily a study and analysis center; or 
out.e' 
(B) primarily a system engineering/system integration 
iol ft 
center; 
Contracts. 
(4) whether such center will be required or authorized to enter 
into contracts under which research projects would be per-
formed by other Federally funded research and development 
centers. Federal research laboratories, or private contractors; 
S: 
(5) whether the contract to operate such center will be 
awarded on a competitive basis; 
.^. 
(6) whether proposals with respect to the operation of such 
center— 
ix. 
(A) will be considered by the appropriate Defense Agency; 
and 
(B) will be subjected to review by persons to be elected by 
<i-Jlh>v the National Academy of Sciences; 
(7) whether such center will be designed to prevent even the 
possibility of an appearance of a conflict of interest— 
(A) by prohibiting any officer, employee, or member of 
,..-, f, 
the governing body of such center from holding any position 
'^ ',., 
with— 
, ,1 
(i) the Strategic Defense Initiative Organization; or 
(ii) a private contractor that has a substantial in-
terest in the development of the Strategic Defense 
\~\ 
I'l ' 
Initiative; and 
' '" * ' 
(B) by prohibiting more than one-half of the members of 
the governing body of the proposed Federally Funded 
t ) j'p. 
Research Center from simultaneously holding any position 
' •' ,:' 
with the Strategic Defense Initiative Advisory Committee 
• :; 
or any similar body which provides technological, scientific, 
> . i ' 
or strategic advice to the Department of Defense about the 
Strategic Defense Initiative; 
••;;: 
(8^ whether other actions will be taken to avoid possible 
•, 
conflict of interest situations within such center; 
-•' 
(9) the role of the Department of Defense in— 
(A) the selection of the staff of such center; and 
tof f
*
'
' 
(B) the internal organization of such center; and 
(10) whether a prescribed minimum percentage of the annual 
budget of such center will be set aside for research to be 
conducted independently of the Department of Defense. 
:-A) 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3843 
(c) COMPTROLLER GENERAL REPORT.—The Comptroller General of 
the United States shall also submit a report to Congress providing 
an analysis of the items in subsection (b) as appropriate. 
SEC. 
2
1
4
. 
REPORT 
ON 
PROJECTED 
COSTS 
OF 
SDI 
PROGRAM 
Section 223(b) of the Department of Defense Authorization Act, 
1986 (Public Law 99-145; 99 Stat. 613), is amended by adding at the 
end the following: "The Secretary shall include in such report the 
following information: 
"(1) The cost goals or cost objectives for the production and 
deployment of a Strategic Defense Initiative System determined 
on the basis of capabilities expected to be developed in the 
future and the cost goals or cost objectives for the individual 
^ • components of such system (determined on the basis of capabili-
f ties expected to be developed in the future). 
• 
"(2) The estimated cost for the production and deployment of 
'^ the Strategic Defense Initiative System referred to in paragraph 
(1) and determined on the basis of prices in effect and capabili-
• ties in existence at the time of the preparation of the report and 
the estimated cost for the production and deployment of the 
' 
individual components of such system (determined on the basis 
of prices in effect and capabilities in existence at the time of the 
preparation of the report).''. 
SEC. 215. REPORT ON STRATEGIC DEFENSE INITIATIVE DEPLOYMENT 
SCHEDULE 
(a) REPORT REQUIREMENT.—The Secretary of Defense shall submit 
to Congress a report detailing what Strategic Defense Initiative 
technologies can be developed or deployed within the next 5 to 10 
years to defend against significant military threats and help accom-
plish critical military missions. The missions to be considered 
include— 
(1) defending United States Armed Forces abroad and United 
States allies against tactical ballistic missiles, particularly new 
and highly accurate Soviet shorter range ballistic missiles 
^„ armed with conventional, chemical, or nuclear warheads; 
(2) defending against a limited but militarily effective Soviet 
i 
attack aimed at disrupting the National Command Authority 
,. and other valuable military assets; 
(3) providing sufficient warning and tracking information to 
defend or effectively evade possible Soviet attacks against mili-
tary satellites including those in high orbits; and 
(4) providing early warning and attack assessment informa-
tion and the necessary survivable command, control, and 
communication to defend against possible Soviet conventional 
or strategic attacks. 
(b) ADDITIONAL MATERIAL TO BE INCLUDED.—The report shall— 
(1) identify any other significant near-term military mission 
,, 
that the application of Strategic Defense Initiative technologies 
might help accomplish; 
It 
(2) list what specific program elements of the Strategic 
Defense Initiative are pertinent to these applications; 
tj' 
(3) estimate initial operating capability dates for the systems 
needed to accomplish these missions; 
(4) estimate the level of funding necessary for each program 
to reach these operating capability dates; and 
a
< 
100 STAT. 3844 
PUBLIC LAW 99-661—NOV. 14, 1986 
(5) estimate the survivability and cost effectiveness at the 
margin of these systems against current and projected Soviet 
threats, 
(c) DEADLINE FOR REPORT.—The report under subsection (a) shall 
be submitted not later than March 15, 1987. 
SEC. 216. EFFECT OF STRATEGIC DEFENSE INITIATIVE ON COMPLIANCE 
WITH THE ANTI-BALLISTIC MISSILE TREATY 
(a) FINDINGS.—The Congress makes the following findings: 
(1) The President's Commission on Strategic Forces declared 
h in its report to the President, dated March 21, 1984, that "One 
of the most successful arms control agreements is the Anti-
23 UST 3435. 
Ballistic Missile Treaty of 1972". 
(2) The Secretary of State has stated that the "ABM Treaty 
requires consultations, and the President has explicitly recog-
;, nized that any ABM-related deployments arising from research 
,j into ballistic missile defenses would be a matter for consulta-
tions and negotiations between the Parties". 
(3) The Secretary of State declared on October 14, 1985, that 
"our research program has been structured and, as the Presi-
dent has reaffirmed, 
will continue to be conducted in 
accordance with a restrictive interpretation of the treaty's 
obligations". 
(4) The President has determined that the Krasnoyarsk radar 
T is a violation of the ABM Treaty. 
(5) The Krasnoyarsk radar therefore erodes the integrity of 
the ABM Treaty and is a matter of serious concern. 
(b) 
CONGRESSIONAL 
DECLARATIONS.—The 
Congress 
therefore 
declares— 
Union of Soviet 
(1) that it fully supports the declared policy of the President 
Socialist 
that a principal objective of the United States in negotiations 
Republics. 
^j^jj ^Yie Soviet Union on nuclear and space arms is to reverse 
r 
the erosion of the Treaty between the United States of America 
and the Union of Soviet Socialist Republics on the Limitation of 
^^ Anti-Ballistic Missile Systems, signed on May 26, 1972 (com-
'
^ 
monly referred to as the "ABM Treaty"); and 
(2) that action by the Congress in approving funds in this Act 
': for research on the Strategic Defense Initiative— 
• 
(A) does not express or imply an intention on the part of 
Congress that the United States should abrogate, violate, or 
oj rroj otherwise erode such treaty; and 
-Atm 
^g) ^Qgg jjQ^ express or imply any determination or 
commitment on the part of Congress that the United States 
•{ni! 
develop, test, or deploy ballistic missile strategic defense 
weaponry that would contravene such treaty. 
SEC. 217. REPORT ON THE ANTI-BALLISTIC MISSILE TREATY 
(a) REPORT ON LESS RESTRICTIVE INTERPRETATION.—The Secretary 
of Defense shall submit to Congress a report concerning the effect of 
the less restrictive interpretation of the Anti-Ballistic Missile Treaty 
on the Strategic Defense Initiative program. 
(b) MATTERS TO BE INCLUDED.—The report shall include the fol-
lowing: 
(1) An analysis of the ramifications of the less restrictive 
interpretation on the development under the Strategic Defense 
m 
Initiative Program, of strategic defenses, including comprehen-
sive strategic defense systems, and more limited defenses 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3845 
designed to protect vital United States military and command 
and control assets, based on "other physical principles". This 
analysis should compare research and development programs 
pursued under both the restrictive and less restrictive inter-
pretations of such treaty, including a comparative analysis o
f
— 
. 
(A) the overall cost of the research and development 
: 
programs, 
(• 
(B) the schedule of the research and development pro-
grams, and 
L 
(C) the level of confidence attained in the research and 
; 
development programs with respect to supporting a full-
: 
scale engineering development decision in the early 1990's. 
I 
(2) A list of options under the less restrictive interpretation of 
such treaty that meet one or more of the following objectives: 
(A) Reduction of the overall development cost. 
'hij I 
(B) Advancement of the schedule for a full-scale engineer-
ing development decision. 
?.'; ' 
(C) Increase in the level of confidence in the results of the 
research by the original full-scale development date, 
(c) DEADLINE FOR REPORT.—The report under subsection (a) shall 
be submitted not later than February 1, 1987. 
PART C—BALANCED TECHNOLOGY INITIATIVE 
SEC. 221. CONVENTIONAL DEFENSE INITIATIVE 
(a) IN GENERAL.—In this Act, Congress commences a program of 
Conventional Defense Initiatives to provide an emphasis on improv-
ing the conventional weapons of the Armed Forces (and the testing 
of such weapons) and to enhance cooperation with the other member 
nations of the North Atlantic Treaty Organization. The initiative is 
intended to improve the fighting power and survivability of the 
combat forces of the United States and to raise the threshold for 
nuclear war. 
(b) AMOUNT AUTHORIZED.—Of the amount authorized in section 
201 for the Army, Navy, and Air Force, $162,323,000 is available 
only for the Conventional Defense Initiatives program. 
SEC. 222. BALANCED TECHNOLOGY INITIATIVE 
(a) EARMARKING FOR CERTAIN CONVENTIONAL PROGRAMS.—(1) Of 
the amount authorized in section 201 for Defense Agencies, not less 
than $300,000,000 shall be used to expand research on innovative 
concepts and methods of enhancing conventional defense capabili-
ties. Such research and development efforts shall emphasize the 
following: 
(A) Armor/anti-armor initiatives. 
(B) Defenses against armed helicopters. 
(C) Hypervelocity missiles for ground combat use. 
(D) Defense against anti-ship missiles, including those with 
"stealth" characteristics. 
, 
(E) "Smart" mines for both land and ocean warfare. 
(F) Lightweight, air transportable vehicles with anti-armor 
capabilities for rapid transport to remote areas. 
(G) Improved conventional anti-submarine warfare muni-
tions. 
(H) "Smart" standoff munitions and submunitions for aircraft 
delivery outside of lethal air defense ranges. 
100 STAT. 3846 
PUBLIC LAW 99-661—NOV. 14, 1986 
(2) The amount specified in paragraph (1) is in addition to the 
amount specified for the Strategic Defense Initiative in section 211 
and for the Conventional Defense Initiative Program under section 
221 and is made available subject to the following conditions: 
(A) That the Director of Defense Research and Engineering 
^
^
i apportion the funds among the research, development, test, and 
evaluation accounts of the Army, the Navy, the Air Force, and 
-'' - the Defense Agencies on a merit basis, taking into consideration 
ongoing technology research and exploitation opportunities. 
• ' 
(B) That no portion of any undistributed reduction be applied 
against the funds appropriated for purposes of paragraph (1) 
and that no portion of any undistributed reduction be applied 
against any program, project, or activity for which additional 
funds are provided under subparagraph (A). 
(C) That no portion of the funds provided for in paragraph (1) 
be applied to any program, project, or activity in support of the 
Strategic Defense Initiative. 
lb) FUNDS FOR CONVENTIONAL DEFENSE TECHNOLOGY BASE.—Of the 
amount authorized in section 201 for Defense Agencies, not less than 
$153,000,000 shall be applied to restoration of the conventional 
defense technology base. Such amount is in addition to the amounts 
specified in subsection (a) and in sections 211 and 221 and is made 
available subject to the following conditions: 
Research and 
(1) That the Director of Defense Research and Engineering 
development. 
apportion the funds among the research, development, test, and 
evaluation accounts of the Army, the Navy, the Air Force, and 
Defense Agencies on a merit basis, either to augment ongoing 
but underfunded basic and exploratory research or to establish 
new basic or exploratory research programs. 
(2) That no portion of such funds be applied to any program, 
project, or activity in support of the Strategic Defense Initiative. 
(3) That no portion of any undistributed reduction made in 
any research, development, test, and evaluation account be 
applied against the technology base activities of any military 
department or Defense Agency in a greater proportion than the 
share of that department's or Agency's technology base as a 
proportion of the total research, development, test, and evalua-
tion funds made available to that department or Agency for 
fiscal year 1987. 
(4) That no portion of any undistributed reduction be applied 
against any program, project, or activity which has received 
additional funds under this subsection. 
(c) REPORT.—Within 90 days after the date of the enactment of 
this Act, the Director of Defense Research and Engineering shall 
submit to the Committees on Armed Services and on Appropriations 
of the Senate and House of Representatives a report on the 
implementation of this section. Such report shall include— 
(1) the allocation by project of the amounts specified in subsec-
tions (aXD and Ob); 
(2) the identification of other ongoing research and develop-
ment projects that should be included in a balanced defense 
technology effort to improve conventional defenses; 
. 
(3) the identification of specific research projects which were 
funded in fiscal years before fiscal year 1987 by the Strategic 
Defense Initiative Organization which could 
significantly 
enhance the conventional defense capabilities of the United 
States (or command, control, communications, and intelligence 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3847 
capabilities associated with conventional defense capabilities) 
and which will no longer be funded by such office; 
(4) for each program, project, or activity for which funds have 
been allocated under subsection (a)(1), or which is identified 
under clause (2) or (3) of this subsection, a five-year funding 
ii' description sufficient to maintain significant progress in such 
program, project, or activity, including the major milestones 
q 
and projected dates of accomplishment for such program, 
project, or activity; and 
(5) the funding that would be required for each of the next 
five fiscal years to restore by the end of fiscal year 1992 the 
defense technology base to the proportion of total research, 
,-, 
development, test, and evaluation that such base was, on aver-
^'* age, during the period from 1971 through 1980, and the effect of 
implementing that funding on the research, development, test, 
and evaluation defense programs of the United States. 
(d) RESTRICTION ON OBUGATION OF FUNDS.—None of the funds 
provided under subsections (a)(1) and (b) may be obligated until— 
(1) the report required by subsection (c) is submitted; and 
-ii 
(2) a period of 30 days has elapsed following the date on which 
the report is received by the committees. 
'-i 
PART D—MISCELLANEOUS 
SEC. 231. LIMITATION ON TESTING OF ANTI-SATELLITE WEAPONS 
Union of Soviet 
(a) ASAT TESTING MORATORIUM.—The Secretary of Defense may Rep^ubUcs. 
not carry out a test of the Space Defense System (anti-satellite 
lo USC 2431 
weapon) against an object in space until the President certifies to note. 
Congress that the Soviet Union has conducted, after the date of the 
enactment of this Act, a test against an object in space of a dedicated 
anti-satellite weapon. 
(b) EXPIRATION.—The prohibition in subsection (a) expires on Octo-
ber 1,1987. 
SEC. 232. ICBM MODERNIZATION 
(a) REPORT BY THE SECRETARY OF DEFENSE ON ICBM MODERNIZA-
TION.—At the same time the Secretary of Defense submits to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives the report on the intercontinental ballistic missile 
(ICBM) modernization program required by section 1231(c) of the 
Department of Defense Authorization Act, 1984 (Public Law 98-94; 97 Stat. 693. 
97 Stat. 614), the Secretary shall submit to such Committees a 
statement containing the basis of the Secretary's recommendation 
"' '*' 
to the President, and any decisions of the President, regarding the 
following matters: 
(1) The configuration of a small intercontinental ballistic 
missile in terms of weight, number of warheads, and production 
schedule. 
' 
(2) The selected options for more survivable follow-on basing 
modes and basing locations for MX (Peacekeeper) missiles. 
(3) The advisability of going forward with one or more 
selected basing modes to a full scale engineering development 
decision. 
(b) LIMITATION ON DEPLOYMENT OF PEACEKEEPER (MX) 
MISSILE; 
DEVELOPMENT OF SMALL ICBM.—The limitations contained in sec-
tions 206 and 1231 of the Department of Defense Authorization Act, 
1984 (Public Law 98-94; 97 Stat. 614), on the deployment of the MX 97 Stat. 624, 693. 
100 STAT. 3848 
PUBLIC LAW 99-661—NOV. 14, 1986 
missile and the development of a small intercontinental ballistic 
missile shall cease to apply when full-scale engineering development 
of a small mobile intercontinental ballistic missile begins. 
(c) LIMITATIONS ON FUNDING.—Of the amounts appropriated for 
fiscal year 1987 for the ICBM Modernization Program— 
(1) $120,000,000 shall be available for research and develop-
ment on follow-on basing options; 
(2) $290,000,000 shall be available for research and develop-
ment of the Peacekeeper (MX) missile; and 
(3) $1,200,000,000 shall be available for research and develop-
ment of a small mobile intercontinental ballistic missile and 
basing for such missile. 
SEC. 233. RESTRICTION ON USE OF RESEARCH AND DEVELOPMENT 
FUNDS FOR GRANTS TO EDUCATIONAL INSTITUTIONS 
The Secretary of Defense may not make a grant or contribution to 
any educational institution from funds appropriated to the Depart-
ment of Defense for fiscal year 1987 for research, development, test, 
and evaluation unless the Secretary determines— 
(1) that the purpose of the grant or contribution has a poten-
tial relationship to a military function or operation; and 
(2) that the grant or contribution is based on the technical 
merit of the proposed research that best satisfies the require-
ments of the Department of Defense. 
10 u s e 2364 
SEC. 234. COORDINATION OF RESEARCH ACTIVITIES OF DEPARTMENT OF 
note. 
DEFENSE 
,
^ 
(a) PURPOSE.—The purpose of this section is to strengthen 
coordination among Department of Defense research facilities and 
other organizations in the Department of Defense. 
(b) FINDINGS.—The Congress finds that centralized coordination of 
the collection and dissemination of technological data among 
research facilities and other organizations within the Department of 
Defense is necessary— 
(1) to ensure that personnel of the Department are currently 
informed about emerging technology for defense systems; and 
(2) to avoid unnecessary and costly duplication of research 
staffs and projects. 
(c) IMPROVED COORDINATION AND COMMUNICATION OF DEFENSE 
RESEARCH ACTIVITIES.—(1) Chapter 139 of title 10, United States 
Code, is amended by adding at the end the following new section: 
10 use 2364. 
"§ 2364. Coordination and communication of Defense research 
activities 
"(a) COORDINATION OF DEPARTMENT OF DEFENSE TECHNOLOGICAL 
DATA.—The Secretary of Defense shall promote, monitor, and evalu-
ate programs for the communication and exchange of technological 
data— 
"(1) among the Defense research facilities, combatant com-
mands, and other organizations that are involved in developing 
for the Department of Defense the technological requirements 
for new items for use by combat forces; and 
"(2) among Defense research facilities and other offices, agen-
-'• cies, and bureaus in the Department that are engaged in related 
technological matters. 
"(b) FUNCTIONS OF DEFENSE RESEARCH FACILITIES.—The Secretary 
md .'se jr t' ; 
of Defense shall ensure, to the maximum extent practicable— 
. ^k.. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3849 
"(1) that Defense research facilities are assigned broad mis-
sion requirements rather than specific hardware needs; 
"(2) that appropriate personnel of such facilities are assigned 
to serve as consultants on component and support system 
standardization; 
"(3) that the managers of such facilities have broad latitude to 
^ 
choose research and development projects; 
j 
"(4) that technology position papers prepared by Defense Ck)ntracts. 
^ 
research facilities are readily available to all combatant com-
mands and to contractors who submit bids or proposals for 
Department of Defense contracts; and 
"(5) that, in order to promote increased consideration of 
technological issues early in the development process, any posi-
tion paper prepared by a Defense research facility on a 
technological issue relating to a major weapon system, and any 
technological assessment made by such facility in the case of 
such component, is made a part of the records considered for the 
purpose of making milestone O, I, and II decisions. 
"(c) DEFINITIONS.—In this section: 
"(1) The term 'Defense research facility' means a Department 
of Defense facility which performs or contracts for the perform-
ance o
f
— 
"(A) basic research; or 
"(B) applied research known as exploratory development. 
"(2) The term 'milestone O decision' means a decision made 
within the Department of Defense that there is a mission need 
, 
for a new major weapon system and that research and develop-
ment is to begin to meet such need. 
"(3) The term 'milestone I decision' means [a]/[the] selection 
by an appropriate official of the Department of Defense of a new 
major weapon system concept and a program for demonstration 
I 
and validation of such concept. 
"(4) The term 'milestone II decision' means approval by an 
i 
appropriate official of the Department of Defense for the full-
scale development of a new major weapon system.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"2364. Coordination and communication of Defense research activities.". 
SEC. 235. COOPERATIVE MEDICAL RESEARCH WITH VETERANS' ADMINIS-
TRATION 
(a) FUNDING.—Of the amount authorized in section 201 for the 
Defense Agencies, $20,000,000 is available only for cooperative medi-
cal research to be administered by the Secretary of Defense and the 
Administrator of Veterans' Affairs. 
(b) DEADLINE.—Not later than 30 days after the enactment of a 
law making appropriations for the Department of Defense for fiscal 
year 1987, the Secretary of Defense shall make available to the 
Administrator of Veterans' Affairs the amount referred to in subsec-
tion (a). 
100 STAT. 3850 
PUBLIC LAW 99-661—NOV. 14, 1986 
B
i rr in TITLE III—OPERATION AND MAINTENANCE 
•^^ 
PART A—AUTHORIZATIONS OF APPROPRIATIONS 
SEC. 301. OPERATION AND MAINTENANCE FUNDING 
^ 
(a) 
AUTHORIZATION 
OF 
APPROPRIATIONS.—Funds are 
hereby 
authorized to be appropriated for fiscal year 1987 for the use of the 
'''" " '''" Armed Forces and other activities and agencies of the Department 
of Defense for expenses, not otherwise provided for, for operation 
and maintenance in amounts as follows: 
For the Army, $20,025,891,000. 
-
* 
For the Navy, $23,164,784,000. 
For the Marine Corps, $1,794,200,000. 
*' 
For the Air Force, $18,894,186,000. 
For the Defense Agencies, $7,979,380,000. 
"" ' 
For the Army Reserve, $770,300,000. 
For the Naval Reserve, $887,400,000. 
For the Marine Corps Reserve, $64,200,000. . 
For the Air Force Reserve, $922,100,000. 
'*'' 
For the Army National Guard, $1,734,603,000. 
'*''• 
For the Air National Guard, $1,790,400,000. 
For the National Board for the Promotion of Rifle Practice, 
$4,316,000. 
' 
For Defense Claims, $144,400,000. 
For the Court of Military Appeals, $3,200,000. 
For Environmental Restoration, Defense, $385,900,000. 
(b) ADDITIONAL AUTHORIZATION FOR ARMY NATIONAL GUARD.—In 
addition to the amounts authorized in subsection (a), there are 
authorized to be appropriated such sums as may be necessary for the 
Army National Guard for— 
(1) armory operating costs; 
(2) modification or repair of work space for fulltime National 
•" 
Guard personnel; and 
'^ 
(3) partial Federal funding for major repair and renovation of 
National Guard facilities. 
(c) 
AUTHORIZATION UPON APPROPRIATION FOR HIGH PRIORITY 
PROGRAMS.—Any amounts appropriated in excess of the amounts 
authorized in subsection (a) for high priority readiness programs are 
hereby authorized. 
SEC. 302. WORKING CAPITAL FUNDS 
' -^^ I ^. 
^^ fr^^ 
K'.m». 
(a) AUTHORIZATION OF APPROPRIATIONS.—Funds are hereby au-
thorized to be appropriated for fiscal year 1987 for the use of the 
Armed Forces and other activities and agencies of the Department 
of Defense for providing capital for working-capital funds in 
amounts as follows: 
For the Army Stock Fund, $230,138,000. 
For the Navy Stock Fund, $379,570,000. 
For the Marine Corps Stock Fund, $31,233,000. 
For the Air Force Stock Fund, $200,410,000. 
For the Defense Stock Fund, $66,949,000. 
O
t
)
) AUTHORIZATION UPON APPROPRIATION FOR HIGH PRIORITY 
PROGRAMS.—Any amounts appropriated in excess of the amounts 
authorized in subsection (a) for high priority readiness programs are 
hereby authorized. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3851 
SEC. 303. AUTHORIZATION OF APPROPRIATIONS FOR ASSISTANCE TO PAN 
, v 
AMERICAN GAMES 
Funds are hereby authorized to be appropriated for fiscal year 
1987 for assistance to the Tenth International Pan American Games 
in accordance with section 304 of the Department of Defense 
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 583), in the 
99 Stat. 616. 
amount of $15,000,000. 
SEC. 304. TRANSPORTATION OF LIVESTOCK FEED 
The Secretary of Defense may authorize the use during 1986 of 
National Guard equipment and personnel for transportation (includ-
ing airlift) of livestock feed to drought-stricken areas of the United 
States. 
SEC. 305. 
AUTHORITY FOR PAYMENTS TO NASA FOR SPACE SHUTTLE 
SERVICES 
(a) AUTHORITY.—The Secretary of Defense may make payments 
during fiscal year 1987 to the National Aeronautics and Space 
Administration for space shuttle services in advance of the receipt of 
such services. Any such payments— 
(1) may be made only from funds appropriated to the Air 
Force for operation and maintenance for fiscal year 1987 and 
only to the extent provided in appropriations Acts; 
.=?'f 
J 
(2) may not be made until 30 days after the date on which the 
report required in subsection (b) is received by the Congress; 
and 
(3) may not exceed $268,800,000. 
(b) REPORT.—Not later than December 31, 1986, the Secretary of 
Defense shall submit to the appropriate committees of the Congress 
a report containing a ten-year plan setting forth the schedule for 
planned payments by the Department of Defense to the National 
Aeronautics and Space Administration for space shuttle services 
and the schedule for the provision of such services. 
PART 
B—PROGRAM CHANGES 
AND 
PERMANENT 
L A W 
CHANGES 
SEC. 311. CONTRACT PERSONNEL TO BE INCLUDED IN BUDGET JUS-
TIFICATION 
Section 2203 of title 10, United States Code, is amended by adding 
at the end the following new sentences: "The Secretary of Defense 
shall provide that the budget justification documents for such 
budget include information on the number of employees of contrac-
tors estimated to be working on contracts of the Department of 
Defense during the fiscal year for which the budget is submitted. 
Such information shall be set forth in terms of employee-years or 
such other measure as will be uniform and readily comparable with 
civilian personnel of the Department of Defense.". 
' " 
SEC. 312. PROCUREMENT OF CERTAIN BAKERY AND DAIRY PRODUCTS 
OUTSIDE THE UNITED STATES 
(a) PROCUREMENT OF BAKERY AND DAIRY PRODUCTS.—Chapter 143 
of title 10, United States Code, is amended by adding at the end the 
following new section: 
100 STAT. 3852 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 use 2422. 
"§ 2422. Bakery and dairy products: procurement outside the 
United States 
"(a) The Secretary of Defense may authorize any element of the 
Department of Defense that procures bakery and dairy products for 
use by the armed forces outside the United States to procure any 
jui 
.»i -' 
products described in subsection (b) through the use of procedures 
other than competitive procedures. 
"(b) The products referred to in subsection (a) are bakery or dairy 
products produced by the Army and Air Force Exchange Service in 
a facility outside the United States that began operating before 
July 1, 1986.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
IE. 
"2422. Bakery and dairy products: procurement outside the United States.". 
SEC. 313. FUNrTIONS OF MILITARY COMMISSARIES: PURCHASE OF ALCO-
HOLIC 
BEVERAGES 
BY 
NONAPPROPRIATED 
FUND 
INSTRUMENTALITIES 
(a) IN GENERAL.—Chapter 147 of title 10, United States Code, is 
amended by adding at the end the following new sections: 
10 use 2486. 
"§ 2486. Commissary stores: merchandise that may be sold; uni-
form surcharges 
"(a) Commissary stores are similar to commercial grocery stores 
and may sell merchandise similar to that sold in commercial grocery 
stores. 
"(b) Merchandise sold in commissary stores may include items in 
the following categories: 
"(1) Health and beauty aids. 
, 
. 
"(2) Meat and poultry. 
,- 
< . 
"(3) Fish and seafood. 
.. ' 
.. 
"(4) Produce. 
^ 
-, 
- ,,,.- 
L •
• 
"IK 
"(5) Food and non-food grocery items. 
"'6) Bakery goods. 
,,.- ^/^ - - 
- ,
^ .»' .. u'.. ' 
r -•:> 
"(7) Dairy products. 
^^|.j 
"(8) Tobacco products. 
. i •=/•. 
: 
;;^f. ^ 
-J 
"(9) Delicatessen items. 
"(10) Frozen foods. 
-"'* 
"(11) Other categories designated in regulations prescribed by 
the Secretary of a military department and approved by the 
Secretary of Defense. 
"(c) An adjustment of or surcharge on sales prices in commissary 
stores under section 2484(b) or 2685(a) of this title or for any other 
purpose shall be applied as a uniform percentage of the sales price 
of all merchandise sold in commissary stores. 
10 use 2487. 
"§ 2487. Commissary stores: limitations on release of sales 
information 
"(a) In order to protect commercially valuable information, the 
Secretary of a military department, except as provided in subsection 
OD), may not release to the public those portions of computer data 
generated by electronic scanners used in military commissaries, and 
those portions of reports generated by such scanners, that contain 
the following information: 
"(1) The unit prices of items sold. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3853 
"(2) The number of units of items sold. 
"(b) Information subject to subsection (a) may be released under a 
written agreement. Any such agreement shall require payment for 
such information and shall specify the amount of such payment. 
"(c) Amounts received by the United States under an agreement 
described in subsection (b) with respect to a commissary shall be 
deposited in the Commissary Trust Revolving Fund of the military 
department under which the commissary is operated. 
"§ 2488. Nonappropriated fund instrumentalities: purchase of alco- 
10 USC 2488. 
holic beverages 
"(a) The Secretary of Defense shall provide that— 
"(1) covered alcoholic beverage purchases made for resale on a 
-. 
military installation located in the United States shall be made 
from the most competitive source, price and other factors 
considered, except that 
p^j 
"(2) in the case of malt beverages and wine purchased for 
State and local 
resale on a military installation located in the contiguous 
governments. 
States, such purchases shall be made from, and delivery shall be 
accepted from, a source within the State in which the military 
installation concerned is located. 
"(b) If a military installation located in the contiguous States is 
located in more than one State, a source of supply in any State in 
which the installation is located shall be considered for the purposes 
of subsection (a)(2) to be a source within the State in which the 
installation is located. 
"(c) In this section: 
"(1) The term 'covered alcoholic beverage purchases' means 
purchases of alcoholic beverages by a nonappropriated fund 
instrumentality 
of 
the 
Department 
of 
Defense 
with 
nonappropriated funds. 
"(2) The term 'State' includes the District of Columbia.". 
(b) EXEMPTION FROM WRITTEN NOTICE REQUIREMENTS.—Section 
2305(b) of title 10, United States Code, is amended by adding at the 
end of paragraph (4) the following new subparagraph: 
"(E) Subparagraph (D) does not apply with respect to the award of 
a contract for the acquisition of perishable subsistence items.". 
(c) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
items: 
"2486. Commissary stores: merchandise that may be sold; uniform surcharges. 
'''" 
' 
"2487. Commissary stores: limitation on release of sales information. 
"2488. Nonappropriated fund instrumentalities: purchase of alcoholic beverages.". 
SEC. 
3
1
4
. 
AUTHORITY 
FOR 
SECRETARY 
OF 
DEFENSE 
TO 
ACCEPT 
GIFTS 
FOR 
THE 
DEFENSE 
DEPENDENTS' 
EDUCATION 
SYSTEM 
(a) IN GENERAL.—Chapter 155 of title 10, United States Code, is 
amended by adding at the end the following new section: 
"§ 2605. Acceptance of gifts for defense dependents' education 
10 USC 2605. 
system 
"(a) The Secretary of Defense may accept, hold, administer, and 
spend any gift (including any gift of an interest in real property) 
made on the condition that it be used in connection with the 
operation or administration of the defense dependents' education 
system provided for under the Defense Dependents' Education Act 
of 1978 (20 U.S.C. 921 et seq.). The Secretary may pay all necessary 
:j§-! 
100 STAT. 3854 
PUBLIC LAW 99-661—NOV. 14, 1986 
expenses in connection with the acceptance of a gift under this 
subsection. 
"(b) There is estabHshed in the Treasury a fund to be known as 
the 'Department of Defense Dependents' Education Gift Fund'. Gifts 
of money, and the proceeds of the sale of property, received under 
subsection (a) shall be deposited in the fund. The Secretary may 
disburse funds deposited under this subsection for the benefit or use 
of the defense dependent's education system, subject to the terms of 
the gift. 
^
^ ' "''-' 
"(c) Subsection (c) of section 2601 of this title applies to property 
that is accepted under subsection (a) in the same manner that such 
subsection applies to property that is accepted under subsection (a) 
of that section. 
"(d)(1) Upon request of the Secretary of Defense, the Secretary of 
the Treasury may— 
Securities. 
"(A) retain money, securities, and the proceeds of the sale of 
- - 
securities, in the Department of Defense Dependents' Education 
' " 
' 
Gift Fund; and 
"(B) invest money and reinvest the proceeds of the sale of 
< 
securities in that fund in securities of the United States or in 
securities guaranteed as to principal and interest by the United 
States. 
" "(2) The interest and profits accruing from those securities shall 
be deposited to the credit of the fund and may be disbursed as 
provided in subsection (b). 
"(e) In this section, the term 'gift' includes a devise of real 
property or a bequest of personal property. 
Regulations. 
"(f) The Secretary of Defense shall prescribe regulations to carry 
out this section.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
10 u s e 2810. 
•J**? 03T 
"2605. Acceptance of gifts for defense dependents' education system.". 
, 
SEC. 315. RENOVATION OF FACILITIES 
(a) IN GENERAL.—Chapter 169 of title 10, United States Code, is 
amended by adding at the end of subchapter I the following new 
section: 
^ 
.^^^ .,_*; 
"§ 2810. Renovation of facilities 
"(a) The Secretary concerned may carry out renovation projects 
that combine maintenance, repair, and minor construction projects 
for an entire single-purpose facility, or one or more functional areas 
of a multipurpose facility, using funds available for operations and 
maintenance. 
"(b) The amount obligated on such a renovation project may not 
exceed the maximum amount specified by law for a minor construc-
tion project under section 2805 of this title. 
"(c) Construction of new facilities or additions to existing facilities 
may not be carried out under the authority of this section.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such subchapter is amended by adding at the end the following 
new item: 
"2810. Renovation of facilities.". 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3855 
Indiana. 
Oklahoma. 
SEC. 316. PROHIBITION OF PURCHASE OF ANGOLAN PETROLEUM PROD- 
10 USC 2304 
UCTS FROM COMPANIES PRODUCING OIL IN ANGOLA 
no^. 
(a) GENERAL RULE.—The Secretary of Defense may not enter into Contracts, 
a contract with a company for the purchase of petroleum products 
which originated in Angola if the company (or a subsidiary or 
partnership of the company) is engaged in the production of petro-
leum products in Angola. 
(b) WAIVER AUTHORITY.—The Secretary of Defense may waive the 
limitation in subsection (a) if the Secretary determines that such 
action is in the best interest of the United States. 
(c) PETROLEUM PRODUCT DEFINED.—For purposes of this section, 
the term "petroleum product" means— 
"(1) natural or synthetic crude; 
r
>
i :; "(2) blends of natural or synthetic crude; and 
"(3) products refined or derived from natural or synthetic 
crude or from such blends. 
(d) EFFECTIVE DATE.—This section shall take effect six months 
after the date of the enactment of this Act. 
SEC. 317. PROHIBITION OF CONTRACTS FOR THE PERFORMANCE OF CER-
TAIN ARMY AMMUNITION ACTIVITIES 
(a) PROHIBITION OF CONTRACTING.—The Secretary of Defense and 
the Secretary of the Army may not enter into a contract for the 
performance by contractor personnel of functions performed by 
employees of the Department of Defense at the Crane Army 
Ammunition Activity, Crane, Indiana, or the McAlester Army 
Ammunition Plant, McAlester, Oklahoma. 
(b) EXCEPTION.—The prohibition in subsection (a) does not apply to 
a contract (or the renewal of a contract) for the performance of a 
function that on the date of the enactment of this Act is under 
contract for performance by contractor personnel. 
SEC. 318. NATIONAL BOARD FOR THE PROMOTION OF RIFLE PRACTICE 
(a) PERSONNEL SERVICES.—Section 4308 of title 10, United States 
Code, is amended by adding at the end the following new subsection: 
"(c) The Secretary may provide personnel services (in addition to 
pay and non-travel related allowances for members of the armed 
forces) in carrying out the authority of the Secretary under this 
section and sections 4310 through 4312 of this title.". 
(b) ALLOWANCES FOR COMPETITORS AT NATIONAL MATCHES.—Sec-
tion 4313 of such title is amended— 
(1) by striking out "draw not more than" in subsection (a) and 
all that follows through the end of the subsection and inserting 
in lieu thereof "be paid a subsistence allowance in such amount 
as the Secretary of the Army shall prescribe."; and 
(2) by striking out "of five cents a mile" in subsection (b) and 
inserting in lieu thereof "in such amount as the Secretary of the 
Army shall prescribe". 
SEC. 319. PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD WITH 
CIVIL AVIATION 
The Secretary of the Army may not enter into an agreement to Texas, 
allow joint use of the Robert Gray Army Airfield at Fort Hood, 
Texas, with civil aviation. 
100 STAT. 3856 
PUBLIC LAW 99-661—NOV. 14, 1986 
SEC. 320. REPORT ON PROPOSED REGULATIONS RELATING TO MOVE-
*^®" 
MENT OF HOUSEHOLD GOODS AND CARGO 
iLKifToO 
(a) REPORT REQUIREMENT.—The regulations of the Military Traffic 
Management Command described in subsection (b) may not become 
effective until— 
(1) the Secretary of the Army submits to Congress a report 
with respect to such regulations that incjudes a discussion of— 
*>dl 
(A) the cost savings expected as a result of implementa-
ibo 
i tion of such regulations; and 
(B) the increased quality of services expected as a result 
s 3; 
of such implementation; and 
(2) 90 days of continuous session of Congress elapse after the 
report is received. 
(b) DESCRIPTION OF REGULATIONS.—The regulations referred to in 
subsection (a) are the regulations contained in the International 
Through Government Bill of Lading Rate Solicitation, volume 54, 
that concern— 
(1) elimination of the so-called "me-too" rate filing cycle; 
(2) elimination of the rate cancellation cycles; 
4l?i 
(3) mandatory use of Government-owned containers; and 
(4) changes in storage-in-transit charges. 
(c) COMPUTATION OF TIME PERIOD,—For purposes of subsection 
:<,., 
(a)(2)-
(1) the continuity of a session of Congress is broken only by an 
adjournment of the Congress sine die; and 
(2) days on which either House is not in session because of an 
adjournment of more than three days to a day certain are 
excluded in the computation of such 90-day period. 
PART C—HUMANITARIAN AND OTHER ASSISTANCE 
SEC. 331. EXTENSION OF AUTHORIZATION FOR HUMANITARIAN ASSIST-
ANCE 
(a) TRANSPORTATION, 
ADMINISTRATION, AND DISTRIBUTION OF 
HUMANITARIAN RELIEF SUPPLIES TO AFGHAN REFUGEES.—Section 305 
of the Department of Defense Authorization Act, 1986 (Public Law 
99-145; 99 Stat. 617), is amended— 
(1) by inserting "(1)" before "There" in subsection (a); 
(2) by inserting "and for fiscal year 1987 the sum of 
$10,000,000" after "sum of $10,000,000" in subsection (a); 
(3) by adding at the end of subsection (a) the following new 
paragraph: 
"(2) Of the funds appropriated by the Department of Defense 
Appropriations Act, 1986 (as contained in section 101(b) of Public 
Law 99-190; 99 Stat. 1189), for operation and maintenance for the 
Air Force, $7,000,000 shall remain available for obligation until 
September 30, 1987, for the purpose described in paragraph (1) 
(including providing transportation of excess nonlethal supplies of 
the Department of Defense made available for humanitarian relief 
purposes under section 2547 of title 10, United States Code). Such 
funds shall be in addition to funds appropriated pursuant to the 
authorization in paragraph (1)."; and 
i 
' • 
(4) by adding at the end the following new subsections: 
"(d) AUTHORITY TO TRANSFER FUNDS.—The Secretary of Defense is 
authorized to transfer to the Secretary of State not more than 
$3,000,000 of the funds appropriated pursuant to the authorization 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3857 
in this section for fiscal year 1987 to provide for (1) paying adminis-
trative costs of providing the transportation described in subsection 
(a), and (2) providing for the acquisition of transportation assets for 
the distribution of supplies outside the United States to accomplish 
the purposes of this section. 
"(e) AVAILABILITY OF FUNDS.—Amounts appropriated pursuant to 
the authorization in subsection (a) shall remain available until 
expended, to the extent provided in appropriation Acts.". 
(b) REPORTS.—The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives two reports, one of which shall be submitted not later 
than 60 days after the date of the enactment of this Act and the 
other not later than June 1, 1987. Each such report shall contain (as 
of the date on which the report is submitted) the following 
information: 
(1) The total amount of funds obligated for humanitarian 
relief under section 305 of the Department of Defense 
*
«
» ^ • •
> 
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 617) (as 
amended by subsection (a)). 
(2) The number of scheduled and completed flights for pur-
poses of providing humanitarian relief under section 305 of such 
Act. 
--'.-'ff'^m 
(3) A description of any transfer (including to whom the 
transfer is made) of excess nonlethal supplies of the Department 
of Defense made available for humanitarian relief purposes 
under section 2547 of title 10, United States Code. 
SEC. 332. EXTENSION OF AUTHORITY OF SECRETARY OF DEFENSE TO 
TRANSPORT HUMANITARIAN RELIEF SUPPLIES TO CERTAIN 
COUNTRIES 
Section 1540(a) of the Department of Defense Authorization Act, 
1985 (Public Law 98-525; 98 Stat. 2637), is amended by striking out 
"fiscal years 1985 and 1986" and inserting in lieu thereof "fiscal 
year 1987". 
SEC. 333. HUMANITARIAN 
AND 
CIVIC 
ASSISTANCE 
PROVIDED 
IN 
CONJUNCTION WITH A MILITARY OPERATION 
(a) IN GENERAL.—(1) Part I of subtitle A of title 10, United States 
Code, is amended by adding at the end the following new chapter: 
"CHAPTER 20—HUMANITARIAN AND CIVIC AS-
SISTANCE PROVIDED IN CONJUNCTION WITH 
MILITARY OPERATIONS 
"Sec. 
"401. Armed forces participation in humanitarian and civic assistance activities. 
"402. Approval of the Secretary of State. 
"403. Payment of expenses. 
"404. Annual report to Congress. 
"405. Definition of humanitarian and civic assistance. 
"406. Expenditure limitation. 
"§ 401. Armed forces participation in humanitarian and civic lo USC 401. 
assistance activities 
"(a) Under regulations prescribed by the Secretary of Defense, the 
Secretary of a military department may carry out humanitarian 
and civic assistance activities in conjunction with authorized mili-
-y* 'Jc 
100 STAT. 3858 
PUBLIC LAW 99-661—NOV. 14, 1986 
Defense and 
national 
security. 
10 use 402. 
10 use 403. 
10 use 404. 
10 use 405. 
JMom or 
tary operations of the armed forces in a country if the Secretary 
concerned determines that the activities will promote— 
"(1) the security interests of both the United States and the 
country in which the activities are to be carried out; and 
"(2) the specific operational readiness skills of the members of 
the armed forces who participate in the activities. 
"(b) Humanitarian and civic assistance activities carried out 
under this chapter shall complement, and may not duplicate, any 
other form of social or economic assistance which may be provided 
to the country concerned by any other department or agency of the 
United States. Such activities shall serve the basic economic and 
social needs of the people of the country concerned. 
"(c) Humanitarian and civic assistance may not be provided under 
this chapter (directly or indirectly) to any individual, group, or 
organization engaged in military or paramilitary activity. 
, ji u 
"§ 402. Approval of the Secretary of State 
"Humanitarian and civic assistance may not be provided under 
this chapter to any foreign country unless the Secretary of State 
specifically approves the provision of such assistance. 
"§ 403. Payment of expenses 
"(a) Expenses incurred as a direct result of providing humani-
tarian and civic assistance under this chapter to a foreign country 
shall be paid for out of funds specifically appropriated for such 
purpose. 
"(b) Nothing in this chapter may be interpreted to preclude the 
incurring of minimal expenditures by the Department of Defense for 
purposes of humanitarian and civic assistance out of funds other 
than funds appropriated pursuant to subsection (a). 
- 
-, 
"§ 404. Annual report to Congress 
"The Secretary of Defense shall submit to the Committees on 
Armed Services and Foreign Relations of the Senate and to the 
Committees on Armed Services and Foreign Affairs of the House of 
Representatives a report, not later than March 1 of each year, on 
activities carried out under this chapter during the preceding fiscal 
year. The Secretary shall include in each such report— 
"(1) a list of the countries in which humanitarian and civic 
c 
assistance activities were carried out during the preceding fiscal 
I 
year; 
"(2) the type and description of such activities carried out in 
each country during the preceding fiscal year; and 
"(3) the amount expended in carrying out each such activity 
in each such country during the preceding fiscal year. 
"§ 405. Definition of humanitarian and civic assistance 
"In this chapter, the term 'humanitarian and civic assistance' 
means— 
"(1) medical, dental, and veterinary care provided in rural 
J 
areas of a country; 
"(2) construction of rudimentary surface 
transportation 
systems; 
"(3) well drilling and construction of basic sanitation facili-
ties; and 
"(4) rudimentary construction and repair of public facilities. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3859 
"§ 406. Expenditure limitation 
10 USC 406. 
"Not more than $16,400,000 may be obligated or expended for the 
purposes of this chapter during fiscal years 1987 through 1991.". 
(2) The tables of chapters at the beginning of subtitle A of such 
title and at the beginning of part I of such subtitle are each 
amended by adding at the end the following new item: 
"20. Humanitarian and Civic Assistance Provided in Conjunction With 
Military Operations 
401". 
(b) EXPENDITURE LIMITATION FOR FISCAL YEAR 1987.—Not more 
than $3,000,000 may be obligated or expended for the purposes of 
chapter 20 of title 10, United States Code (as added by subsection 
(a)), during fiscal year 1987. 
TITLE IV—PERSONNEL AUTHORIZATIONS AND RELATED 
MATTERS 
PART A—ACTIVE FORCES 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES 
The Armed Forces are authorized strengths for active-duty 
personnel as of September 30, 1987, as follows: 
(1) The Army, 780,800. 
(2) The Navy, 587,000. 
(3) The Marine Corps, 199,600. 
(4) The Air Force, 606,850. 
SEC. 402. QUALITY CONTROL ON ENLISTMENTS INTO THE ARMY 
(a) 
PERMANENT REQUIREMENT FOR MINIMUM PERCENTAGE OF 
HIGH-SCHOOL GRADUATES.—Chapter 333 of title 10, United States 
Code, is amended by adding at the end the following new section: 
"§ 3262. Army: percentage of high-school graduates 
10 USC 3262. 
"Of the males with no prior military service who are enlisted or 
inducted into the Army during any fiscal year, the number who are 
not high-school graduates may not exceed, as of the end of the fiscal 
year, 35 percent of all such persons.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
"3262. Army: percentage of high-school graduates.". 
SEC. 403. STRENGTH OF ACTIVE DUTY OFFICER CORPS 
10 USC 521 note. 
(a) REDUCTION IN SIZE OF OFFICER CORPS.—On and after each of 
* 
the dates set forth in column 1 of the following table, the total 
number of commissioned officers serving on active duty in the 
Army, Navy, Air Force, and Marine Corps (excluding officers in 
categories specified in subsection (b)) may not exceed the percentage, 
set forth in column 2 opposite such date, of the total number of 
commissioned officers serving on active duty as of September 30, 
1986 (excluding officers in categories specified in subsection (b)): 
100 STAT. 3860 
PUBLIC LAW 99-661—NOV. 14, 1986 
Column 1 
Column 2 
•I 
Percentage of total 
n 
tyr^A aftr^ 
'i 
»5 
commissioned officers 
un ana alter. 
serving on active duty as 
ofSeptember30, 1986: 
September 30, 1987 
99 
September 30, 1988 
97 
? . »i" 
September 30, 1989 
94 
(b) EXCLUSIONS.—In computing the authorized strength of commis-
sioned officers under subsection (a), officers in the following cat-
egories shall be excluded: 
(1) Reserve officers— 
(A) on active duty for training; 
(B) on active duty under section 265, 270(b), 672a, 3033, 
3496, 5251, 5252, 8033, or 8496 of title 10, United States 
Code, or under section 708 of title 32, United States Code; 
(C) on active duty under section 672(d) of title 10, United 
States Code, in connection with organizing, administering, 
. ,^. 
recruiting, instructing, or training the reserve components 
or the National Guard; 
(D) on active duty to pursue special work; 
(E) ordered to active duty under section 673b of title 10, 
United States Code; or 
(F) on full-time National Guard duty. 
(2) Retired officers on active duty under a call or order to 
active duty for 180 days or less. 
(3) Reserve or retired officers on active duty under section 
10(b)(2) of the Military Selective Service Act (50 U.S.C. App. 
460(b)(2)) for the administration of the Selective Service System, 
(c) APPORTIONMENT OF REDUCTIONS BY SECRETARY OF DEFENSE.— 
vj _ . 
The Secretary of Defense shall apportion the reductions in the 
number of commissioned officers serving on active duty required by 
subsection (a) among the Army, Navy, Air Force, and Marine Corps. 
Not later than February 1 of each fiscal year in which reductions 
are required under subsection (a), the Secretary shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives a report on the manner in which the reductions have 
been or are to be apportioned for that fiscal year and for the next 
fiscal year for which such reductions are required. 
PART B—RESERVE FORCES 
,"' * -
. 
10 u s e 261 note. 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE 
(a) IN GENERAL.—The Armed Forces are authorized strengths for 
selected reserve personnel of the reserve components as of Septem-
ber 30,1987, as follows: 
(1) The Army National Guard of the United States, 452,681. 
(2) The Army Reserve, 318,011. 
(3) The Naval Reserve, 149,486. 
• o 
(4) The Marine Corps Reserve, 43,470. 
'* 
(5) The Air National Guard of the United States, 113,767. 
(6) The Air Force Reserve, 79,562. 
(7) The Coast Guard Reserve, 12,850. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3861 
(b) WAIVER AUTHORITY.—The Secretary of Defense may vary an 
end strength prescribed by subsection (a) by not more than 2 per-
cent. 
(c) ADJUSTMENTS.—The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be propor-
tionately reduced 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 than for training) at the end of 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 training) without their con-
sent at the end of the fiscal year. 
--n .q s&si^. 
Whenever such units or such individual members are released from 
active duty during any fiscal year, the end 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. 
(c) AMENDMENT TO SECTION 115 OF TITLE 10.—Paragraph (1) of 
section 115(a) of title 10, United States Code (as designated by 
section 110 of the Goldwater-Nichols Department of Defense Reorga-
nization Act of 1986 (Public Law 99-433)), is amended to read as Ante, p. 1001. 
follows: 
"(1) Congress shall authorize the end strength as of the end of 
each fiscal year for the Selected Reserve of each reserve component 
of the armed forces. No funds may be appropriated for any fiscal 
year to or for the use of the Selected Reserve of any reserve 
component of the armed forces unless the end strength for the 
Selected Reserve of that component for that fiscal year has been 
authorized by law.". 
SEC. 
4
1
2
. 
END 
STRENGTHS 
FOR 
RESERVES 
ON 
ACTIVE 
DUTY 
IN 
SUPPORT 
OF 
THE 
RESERVE 
COMPONENTS 
(a) IN GENERAL.—Within the end strengths prescribed in section 
411, the reserve components of the Armed Forces are authorized, as 
of September 30, 1987, the following number of Reserves to be 
serving on full-time active duty or, in the case of members of the 
National Guard, on full-time National Guard duty for the purpose of 
organizing, administering, recruiting, instructing, or training the 
reserve components or the National Guard: 
(1) The Army National Guard of the United States, 24,731. 
i 
(2) The Army Reserve, 12,407. 
(3) The Naval Reserve, 21,476. 
,. 
(4) The Marine Corps Reserve, 1,745. 
(5) The Air National Guard of the United States, 8,169. 
(6) The Air Force Reserve, 665. 
(b) COUNTING OF PERSONNEL IN CERTAIN RESERVE CALL-UP SITUA-
TIONS.—(1) Chapter 39 of title 10, United States Code, is amended by 
inserting after section 685 the following new section: 
"§ 686. Reserves on active duty: duties; funding 
lO USC 686. 
"(a) During a period that members of a reserve component are 
serving on active duty pursuant to an order under section 673 or 
673b of this title, members of reserve components serving on active 
duty may perform duties in connection with either such section. 
100 STAT. 3862 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(b) Funds available for the pay and allowances of Reserves 
referred to section 678 of this title shall be available for the pay and 
allowances of such Reserves who perform duties in connection with 
section 673 or 673b of this title under the authority of subsection 
(a).". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"686. Reserves on active duty: duties; funding.". ' 
SEC. 413. ACCOUNTING FOR CERTAIN AUTHORIZED RESERVE COMPO-
NENT MEMBERS 
Section 115(b) of title 10, United States Code (as designated by 
section 110(b) of the Gold 
water-Nichols Department of Defense 
Ante, p. 1001. 
Reorganization Act of 1986 (Public Law 99-433)), is amended— 
(1) by striking out the text of paragraph (1)(A) and inserting in 
lieu thereof the following: "Congress shall authorize the end 
strength as of the end of each fiscal year for each component of 
the armed forces for (i) active-duty personnel who are to be paid 
from funds appropriated for active-duty personnel, and (ii) 
active-duty personnel and full-time National Guard duty 
personnel who are to be paid from funds appropriated for 
reserve personnel. Upon determination by the Secretary of 
*^' i 
Defense that such action is in the national interest, the end 
strength authorized pursuant to clause (i) of the preceding 
sentence for a fiscal year may be increased by a number equal 
to not more than 0.5 percent of the end strength authorized for 
such component for that fiscal year and the end strength au-
thorized pursuant to clause (ii) of that sentence for a fiscal year 
may be increased by a number equal to not more than 2 percent 
of such end strength authorized for such component for that 
fiscal year. No funds may be appropriated to or for the use of 
£^ active-duty personnel or full-time National Guard duty person-
nel of any component of the armed forces unless the end 
strength for such personnel of that component for that fiscal 
year has been authorized by law."; 
(2) in paragraph (1)(B)— 
(A) by striking out "for 180 days or less" in clause (v); and 
(B) by adding at the end the following new clause: 
"(vii) members on full-time National Guard duty for 180 days 
or less."; and 
P 
(3) in paragraph (3)(D)— 
(A) by striking out "and" at the end of clause (iii); 
(B) by striking out the period at the end of clause (iv) and 
inserting in lieu thereof "; and"; and 
(C) by adding at the end the following new clause: 
"(v) an analysis of the number of officers and enlisted mem-
bers serving on active duty for training as of the last day of the 
J preceding fiscal year under orders specifying an aggregate 
' ' period in excess of 180 days and an estimate for the current 
fiscal year of the number that will be ordered to such duty, 
. ,,, -.,. ,., 
tabulated by the following categories: 
"(I) Recruit and specialized training. 
mif 
"(II) Flight training. 
• 
"(III) Professional training in military and civilian 
institutions. 
j;o.;^^i 
"(IV) Officer acquisition training.". 
— ^
- -^ 
..>. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3863 
*' 
PART C—MILITARY TRAINING 
SEC. 421. MILITARY TRAINING STUDENT LOADS 
(a) IN GENERAL.—For fiscal year 1987, the components of the 
Armed Forces are authorized average military training student 
loads as follows: 
(1) The Army, 76,758. 
(2) The Navy, 72,483. 
" ' 
(3) The Marine Corps, 19,433. 
i„. 
(4) The Air Force, 43,911. 
(5) The Army National Guard of the United States, 18,262. 
(6) The Army Reserve, 15,858. 
(7) The Naval Reserve, 3,493. 
(8) The Marine Corps Reserve, 3,944. 
(9) The Air National Guard of the United States, 3,566. 
(10) The Air Force Reserve, 2,127. 
, 
= 0 
(b) ADJUSTMENTS.—The average military student loads for the 
,:t. 
Army, the Navy, the Marine Corps, and the Air Force and the 
reserve components authorized in subsection (a) for fiscal year 1987 
shall be adjusted consistent with the personnel strengths authorized 
in parts A and B. Such adjustment shall be apportioned among the 
Army, the Navy, the Marine Corps, and the Air Force and the 
reserve components in such manner as the Secretary of Defense 
shall prescribe. 
TITLE V—DEFENSE PERSONNEL POLICY 
PART A—ACTIVE FORCES 
SEC. 501. ASSIGNMENT OF ACTIVE-DUTY MEMBERS OUTSIDE THE UNITED 
STATES 
The text of section 671 of title 10, United States Code, is amended 
to read as follows: 
"(a) A member of the armed forces may not be assigned to active 
duty on land outside the United States and its territories and 
possessions until the member has completed the basic training 
requirements of the armed force of which he is a member. 
"(b) In time of war or a national emergency declared by Congress 
or the President, the period of required basic training (or its equiva-
lent) may not be less than 12 weeks.". 
SEC. 502. SERVICE OF MEMBERS ON STATE AND LOCAL JURIES 
(a) IN GENERAL.—Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section: 
"§ 982. Members: service on State and local juries 
10 USC 982. 
"(a) A member of the armed forces on active duty may not be 
required to serve on a State or local jury if the Secretary concerned 
determines that such service— 
"(1) would unreasonably interfere with the performance of 
the member's military duties; or 
"(2) would adversely affect the readiness of the unit, com-
mand, or activity to which the member is assigned. 
"\b) A determination by the Secretary concerned under this sec-
tion is conclusive. 
71-19A 0 - 89 - 14 : QL. 3 Part5 
100 STAT. 3864 
PUBLIC LAW 99-661—NOV. 14, 1986 
Regulations. 
"(c) The Secretary concerned shall prescribe regulations for the 
administration of this section. 
"(d) In this section, the term 'State' includes the District of 
Columbia, the Commonwealth of Puerto Rico, and each territory of 
the United States.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
^ 
"982. Members: service on State and local juries.". 
• • 
. 
SEC. 503. EXTENSION OF EXPIRING AUTHORITY FOR SPOT PROMOTIONS 
OF NAVY LIEUTENANTS 
Section 5721(f) of title 10, United States Code, is amended by 
striking out "September 30, 1986" and inserting in lieu thereof 
"September 30, 1987". 
10 u s e 8251 
SEC. 504. REPEAL OF REQUIREMENT REGARDING 
ENLISTMENT OF 
note 
WOMEN IN THE AIR FORCE DURING FISCAL YEAR 1987 
Section 551(a) of the Department of Defense Authorization Act, 
1985 (Public Law 98-525; 98 Stat. 2530), is amended by striking out 
"the period beginning on October 1, 1986" and all that follows 
through the end of the subsection and inserting in lieu thereof 
"fiscal year 1988, not less than 22 percent shall be women.". 
SEC. 505. AUTHORITY TO EXEMPT PHYSICIANS AT UNIFORMED SERVICES 
UNIVERSITY OF THE HEALTH SCIENCES FROM REDUCTIONS 
IN RETIRED PAY 
Section 2113(f) of title 10, United States Code, is amended— 
(1) by inserting "(1)" after "(0"; and 
(2) by adding at the end the following: 
r. «^2) The Board may exempt, at any time, a physician who is a 
member of the faculty from the restrictions in subsections (a), (b), 
and (c) of section 5532 of title 5, if the Board determines that such 
exemption is necessary to recruit or retain well-qualified physicians 
for the faculty of the University. An exemption granted under this 
paragraph shall terminate upon any break in employment with the 
University by a physician of three days or more. An exemption 
granted under this paragraph to a person shall apply to the retired 
pay of such person beginning with the first month after the month 
in which the exemption is granted. Not more than two exemptions 
may be in effect under this paragraph at any time.". 
SEC. 
5
0
6
. 
TREATMENT 
OF 
EXCESS 
LEAVE 
UPON 
REENLISTMENT 
(a) AUTHORITY TO CARRY OVER EXCESS LEAVE.—Section 701 of title 
10, United States Code, is amended by adding at the end the 
following new subsection: 
4 J, v,, - 
"(h) A member who has taken leave in excess of that authorized 
by this section and who is being discharged or released from active 
duty for the purpose of accepting an appointment or a warrant in an 
armed force, or of entering into an enlistment or an extension of an 
enlistment in an armed force, may elect to have excess leave of up to 
30 days or the maximum number of days of leave that could be 
earned in the new term of service, whichever is less, carried over to 
that new term of service to count against leave that will accrue on 
the new term of service. A member shall be required, at the time of 
his discharge or release from active duty, to pay for excess leave not 
carried over under this subsection.". 
.;.), , 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3865 
(b) AUTHORIZATION FOR PAY AND ALLOWANCES FOR CARRIED OVER 
EXCESS LEAVE.—Section 502(b) of title 37, United States Code, is 
amended by inserting "and section 701(h) of title 10" after "subsec-
tion (a) of this section". 
SEC. 507. TERMINATION 
OF GENDER-BASED 
DISTINCTIONS 
IN PRO-
MOTIONS OF OFFICERS OF THE NAVAL RESERVE AND MARINE 
CORPS RESERVE 
(a) IN GENERAL.—Chapter 549 of title 10, United States Code, is 
amended by striking out sections 5896 through 5899 and inserting in 
lieu thereof the following: 
"§ 5896. Recommendations for promotion by selection boards 
10 USC 5896. 
"(a) A selection board convened under this chapter shall rec-
ommend for promotion to the next higher grade those officers 
considered by the board whom the board, giving due consideration to 
the needs of the Navy or Marine Corps for officers with particular 
skills, considers best qualified for promotion within each competi-
tive category considered by the board. 
,. . , ., 
"(b) A selection board convened under this chapter may not 
recommend an officer for promotion unless— 
"(1) the officer receives the recommendation of a majority of 
the members of the board; and 
"(2) a majority of the members of the board finds that the 
officer is fully qualified for promotion. 
-.u i: 
"(c) Except as otherwise provided by law, an officer of the Naval 
Reserve or the Marine Corps Reserve may not be promoted to a 
higher grade under this chapter unless the officer is considered and 
recommended for promotion to that grade by a selection board 
convened under this chapter. 
"§ 5897. Reports of selection boards 
10 USC 5897. 
"Each selection board convened under this chapter shall submit to 
the Secretary of the Navy a written report, signed by each member 
of the board, containing a list of the names of the officers rec-
ommended for promotion and certifying (1) that the board has 
carefully considered the record of each officer whose name was 
furnished to the board under section 5895 of this title, and (2) that, 
in the opinion of a majority of the members of the board, the officers 
recommended for promotion by the board are best qualified for 
promotion to meet the needs of the Navy or the Marine Corps from 
among those officers whose names were furnished to the selection 
board. 
"§ 5898. Action on reports of selection boards 
10 USC 5898. 
"(a) If, after reviewing the report of a selection board submitted 
under section 5897 of this title, the Secretary of the Navy deter-
mines that the board has acted contrary to law or regulation, the 
Secretary shall return the report to the board for further proceed-
ings. Upon receipt of a report returned by the Secretary under this 
subsection, the selection board (or a subsequent selection board 
convened under this chapter for the same grade and competitive 
category) shall conduct such proceedings as may be necessary in 
order to revise the report and shall resubmit the report, as revised, 
to the Secretary in accordance with section 5897 of this title. 
"(b) The Secretary of the Navy shall, after final review of the 
report, submit it, together with the Secretary's recommendations, to 
100 STAT. 3866 
PUBLIC LAW 99-661—NOV. 14, 1986 
the Secretary of Defense for transmittal to the President for 
approval, modification, or disapproval. 
President of U.S. 
"(c) The name of an officer recommended for promotion by a 
selection board may be removed from the report of the selection 
board only by the President. Such action may be taken at any time 
before the promotion of the officer. 
"(d) Upon approval by the President of the report of a selection 
board, the names of the officers recommended for promotion by the 
selection board (other than any name removed by the President) 
may be disseminated to the armed force concerned. If those names 
have not been sooner disseminated, those names (other than the 
.liftf; 'W: 
name of any officer whose promotion the Senate failed to confirm) 
shall be promptly disseminated to the armed force concerned upon 
confirmation by the Senate. 
"(e) Except as authorized or required by this section, proceedings 
of a selection board convened under this chapter may not be dis-
closed to any person not a member of the board. 
10 use 5899. 
"§ 5899. Eligibility for consideration for promotion: running mates 
"An officer is in the promotion zone and is eligible for consider-
ation for promotion to the next higher grade by a selection board 
convened under this chapter when that officer's running mate is in 
or above the promotion zone established for that officer's present 
10 use 611 et 
grade under chapter 36 of this title.". 
««9- 
(b) CLERICAL AND CONFORMING AMENDMENTS.—(1) The table of 
sections at the beginning of chapter 549 of title 10, United States 
Code, is amended by striking out the items relating to sections 5896 
through 5899 and inserting in lieu thereof the following: 
"5896. Recommendations for promotion by selection boards. 
.''f*-\ Oc'j 
"5897. Reports of selection boards. 
"5898. Actions on reports of selection boards. 
"5899. Eligibility for consideration for promotion: running mates.". 
f+ 
(2) Section 5903 of such title is amended— 
(A) by striking out "(a)" at the beginning of such section; and 
(B) by striking out subsection (b). 
(3) Subsection (a) of section 5905 of such title is amended to read as 
follows: 
"(a) The name of an officer recommended for promotion by a 
selection board may be removed from the report of the selection 
board only by the President. Such action may be taken at any time 
before the promotion of the officer.". 
10 use 5896 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
note. 
apply to selection boards convened on or after the date of the 
enactment of this Act. 
SEC. 508. SENATE CONFIRMATION 
OF CERTAIN GENERAL AND FLAG 
OFFICER POSITIONS 
(a) DEAN OF ACADEMIC BOARD OF UNITED STATES MILITARY ACAD-
EMY.—Section 4335 of title 10, United States Code, is amended— 
(1) by striking out the last sentence of subsection (b); and 
(2) by adding at the end the following new subsection: 
"(c) The Dean of the Academic Board has the grade of brigadier 
general while serving in such position, with the benefits authorized 
for regular brigadier generals of the Army, if appointed to that 
grade by the President, by and with the advice and consent of the 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3867 
Senate. However, the retirement age of an officer so appointed is 
that of a permanent professor of the Academy.". 
(b) DEPUTY JUDGE ADVOCATE GENERAL AND ASSISTANT JUDGE 
ADVOCATES GENERAL OF THE NAVY.—Section 5149 of such title is 
amended— 
(1) in subsection (a)— 
(A) by striking out the first sentence and inserting in lieu 
thereof the following: "There is a Deputy Judge Advocate 
General of the Navy who is appointed by the President, by 
j^^, . 
.' 
iti ? 
and with the advice and consent of the Senate, from among 
«
.
i
^ 
judge advocates of the Navy and Marine Corps who have 
the qualifications prescribed for the Judge Advocate Gen-
*^^ 
eral."; and 
(B) by striking out in the second sentence "rank and" and 
"rank or"; 
(2) by striking out the second sentence of subsection (b) and 
inserting in lieu thereof the following: "While so serving, a 
., 
judge advocate who holds a grade lower than rear admiral 
(lower half) shall hold the grade of rear admiral (lower half), if 
he is appointed to that grade by the President, by and with the 
'
> 
advice and consent of the Senate."; and 
(3) by striking out the second sentence of subsection (c) and 
inserting in lieu thereof the following: "While so serving, a 
judge advocate who holds a grade lower than brigadier general 
shall hold the grade of brigadier general, if he is appointed to 
that grade by the President, by and with the advice and consent 
of the Senate.". 
(c) DEAN OF THE FACULTY OF THE UNITED STATES AIR FORCE 
ACADEMY.—Section 9335(b) of such title is amended to read as 
follows: 
"(b) The Dean has the grade of brigadier general while serving in 
such position, with the benefits authorized for regular brigadier 
generals of the Air Force, if appointed to that grade by the Presi-
dent, by and with the advice and consent of the Senate. However, 
the retirement age of an officer so appointed is that of a permanent 
professor of the Academy.". 
(d) ATTENDING PHYSICIAN TO THE CONGRESS.—(1)(A) Chapter 34 of 
such title is amended by adding at the end the following new 
section: 
"§ 600a. Attending Physician to the Congress 
10 USC 600a. 
"While serving as Attending Physician to the Congress, a Reserve 
who holds a reserve grade lower than major general or rear admiral 
shall hold the reserve grade of major general or rear admiral, as 
appropriate, if appointed to that grade by the President, by and with 
the advice and consent of the Senate.". 
(B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"600a. Attending Physician to the Congress.". 
(2) Section 1374 of such title is amended— 
(A) by redesignating subsection (e) as subsection (f); and 
(B) by inserting after subsection (d) the following new subsec-
tion (e): 
"(e) Unless entitled to a higher grade under another provision of 
law, a reserve commissioned officer who is transferred to the Retired 
100 STAT. 3868 
PUBLIC LAW 99-661—NOV. 14, 1986 
Reserve after having served in the position of Attending Physician 
to the Congress is entitled to be placed on the retired list established 
by section 1376(a) of this title in the grade held by such officer while 
serving in such position.". 
(e) CONFORMING AMENDMENT.—The second undesignated para-
graph relating to the Office of the Attending Physician under the 
heading "JOINT ITEMS" in chapter V of^the Supplemental Appro-
priations Act, 1973 (Public Law 92-607; 86 Stat. 1509), is repealed. 
10 use 600a 
(f) EFFECTIVE DATE.—The amendments made by this section shall 
"°^- 
apply only with respect to appointments or details made on or after 
the date of the enactment of this Act. 
SEC. 509. POSITION OF STAFF JUDGE ADVOCATE TO THE COMMANDANT 
OF THE MARINE CORPS 
(a) IN GENERAL.—(1) Chapter 506 of title 10, United States Code (as 
enacted by section 513 of the Goldwater-Nichols Department of 
Ante, p. 1051. 
Defense Reorganization Act of 1986 (Public Law 99-433)), is amend-
ed by adding at the end the following new section: 
10 use 5046. 
"§ 5046. Staff Judge Advocate to the Commandant of the Marine 
Corps 
"(a) An officer of the Marine Corps who is a judge advocate and a 
member of the bar of a Federal court or the highest court of a State 
or territory and who has had at least eight years of experience in 
legal duties as a commissioned officer may be detailed as Staff Judge 
Advocate to the Commandant of the Marine Corps. While so serving, 
a judge advocate who holds a grade lower than brigadier general 
shall hold the grade of brigadier general if appointed to that grade 
by the President, by and with the advice and consent of the Senate. 
"(b) An officer retiring from the position of Staff Judge Advocate 
to the Commandant of the Marine Corps, after serving at least three 
years in that position, shall be retired in the highest grade in which 
that officer served on active duty satisfactorily, as determined by 
the Secretary of the Navy.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"5046. Staff Judge Advocate to the Commandant of the Marine Corps.". 
; ' 
10 use 5046 
(b) EFFECTIVE DATE.—Section 5046 of title 10, United States Code, 
»o*®- 
as added by subsection (a), shall apply only with respect to appoint-
ments as Staff Judge Advocate to the Commandant of the Marine 
Corps made on or after the date of the enactment of this Act. 
Retirement. 
(d) TRANSITION PROVISION.—Notwithstanding section 1370(a)(2) of 
10 use 5046 
title 10, United States Code, an officer serving in the position of 
^ 
Staff Judge Advocate to the Commandant of the Marine Corps, or 
an equivalent position, on the day before the date of the enactment 
of this Act, if retired after having served in such position (or 
equivalent position) at least three years, including any service in 
such position (or its equivalent) before such date, shall be retired in 
the highest grade in which the officer served on active duty satisfac-
torily, as determined by the Secretary of the Navy. 
SEC. 510. TECHNICAL CORRECTION RELATING TO PERSONNEL ADMINIS-
TRATION AT AIR FORCE INSTITUTE OF TECHNOLOGY 
Section 9314(b)(2)(B) of title 10, United States Code, is amended by 
striking out "rates of basic". 
.„.,.- 
., .^ 
.^ 
v ... , 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3869 
SEC. 511. TEMPORARY INCREASE IN THE NUMBER OF GENERAL AND 
10 USC 525 note. 
FLAG OFFICERS AUTHORIZED TO BE ON ACTIVE DUTY IN 
THREE- AND FOUR-STAR GRADES 
During fiscal year 1987, the numbers of officers authorized under 
section 525(b) of title 10, United States Code, to be on active duty in 
grades above major general and rear admiral are increased as 
follows: 
(1) AIR FORCE GENERALS.—The number of officers of the Air 
Force authorized to be serving on active duty in the grade of 
general is increased by one. 
(2) NAVY VICE ADMIRALS.—The number of officers of the Navy 
authorized to be serving on active duty in a grade above rear 
admiral is increased by three. None of the additional officers in 
grades above rear admiral by reason of this paragraph may be 
in the grade of admiral. 
(3) MARINE CORPS GENERAL OFFICERS.—The number of officers 
of the Marine Corps authorized to be serving on active duty in 
grades above major general is increased by two. Only one 
additional officer in a grade above major general by reason of 
this paragraph may be in the grade of general. 
SEC. 512. STUDY ON STAFFING OF CRITICAL WARTIME MEDICAL 
SPECIALITIES 
(a) STUDY.—The Secretary of Defense shall conduct a study of 
possible actions which could be taken by the Department of Defense 
or by law to improve staffing of critical wartime medical specialities 
(including physician, nurse, and enlisted specialities) in both the 
active and reserve components. The study shall address the desir-
ability of at least the following actions: 
(1) Extending the mandatory retirement age of medical 
personnel in the active and reserve components. 
(2) Extending the age limitations on enlistments and on offi-
cer accessions for medical personnel into the active and reserve 
components. 
(3) Improving Department of Defense marketing techniques 
5 y for attracting medical personnel in critical wartime medical 
specialities in the active and reserve components. 
(4) Establishing alternative participation requirements for 
medical personnel in the reserve components. 
(b) REPORT.—Not later than March 1, 1987, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the findings of the study 
conducted under subsection (a). The report shall include specific 
recommendations for legislative and administrative action with 
respect to the best methods for improving the staffing of criti-
cal wartime medical specialities in both the active and reserve 
components. 
SEC. 513. STUDY OF REPRESENTATION OF RELIGIOUS FAITHS IN THE 
ARMED FORCES 
(a) STUDY.—The Secretary of Defense shall carry out a study of the 
faith composition of the chaplains of the Armed Forces. Such study 
shall include the following: 
(1) A statistical listing of the faith composition of the Armed 
Forces and of the Corps of Chaplains, to include an analysis of 
how the number of adherents to faith groups is determined. 
100 STAT. 3870 
PUBLIC LAW 99-661—NOV. 14, 1986 
[2) An analysis of the benefits and detriments to the Armed 
'i>' Forces of using the demographic distribution of faiths among 
members of the Armed Forces as a guide to the faith distribu-
tion within the Corps of Chaplains. 
(3) An analysis of the time devoted by chaplains to such 
responsibilities as administrative tasks, conduct of religious 
services, and counseling, with particular emphasis on the time 
devoted to faith-specific tasks and to non-faith-specific tasks. 
j 
(4) An analysis of the personnel policies for managing the 
Corps of Chaplains (including the separation of chaplains for 
J 
failure to achieve promotion), and the effect of these policies 
upon the faith composition of the Corps of Chaplains, to include 
I 
a statistical analysis of the effect on the current faith distribu-
^
; 
tion within the Armed Forces today if all those chaplains 
involuntarily released from duty during fiscal years 1980 
through 1985 had been retained on active duty until fiscal year 
; 
1986. 
^ 
(5) An analysis of the benefits and detriments of using grade 
retentions, continuation boards, and standby tours of duty for 
reserve chaplains for the purpose of altering the faith composi-
tion of the Corps of Chaplains. 
(6) An explanation of the manner by which chaplains are 
recruited and the role of organized faith groups in assisting or 
retarding the recruitment or retention of chaplains. 
(b) VIEWS OF FAITH GROUP OFFICES.—To the maximum extent 
possible, the Secretary shall seek the views of faith group offices 
that deal with chaplains. Any written comment received from any 
such office shall be appended to the report under subsection (c). 
(c) REPORT.—The Secretary of Defense shall submit to the Commit-
tees on Armed Services of the Senate and House of Representatives 
a report on the study under subsection (a). The report shall include 
each of the matters described in paragraphs (1) through (6) of such 
subsection and shall be submitted no later than January 9, 1987. 
PART B—RESERVE FORCES 
SEC. 521. INCREASED PRESIDENTIAL AUTHORITY TO AUGMENT ACTIVE 
FORCES WITH THE SELECTED RESERVE 
(a) NUMBER OF MEMBERS THAT MAY BE ORDERED TO ACTIVE DUTY 
INVOLUNTARILY.—Subsection (c) of section 
673b of title 10, 
U.nited States Code, is amended by striking out "100,000" and 
inserting in lieu thereof "200,000". 
(b) AUTHORITY TO EXTEND PERIOD OF CALL-UP.—Such section is 
further amended by adding at the end the following new subsection: 
"(i) When a unit of the Selected Reserve, or a member of the 
Selected Reserve not assigned to a unit organized to serve as a unit 
of the Selected Reserve, is ordered to active duty under this section 
and the President determines that an extension of the service of 
such unit or member on active duty is necessary in the interests of 
national security, he may authorize the Secretary of Defense and 
the Secretary of Transportation with respect to the Coast Guard 
when it is not operating as a service in the Navy to extend the 
period of such order to active duty for a period of not more than 90 
additional days. Whenever the President exercises his authority 
under this subsection, he shall immediately notify Congress of such 
action and shall include in the notification a statement of reasons 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3871 
for the action. Nothing in this subsection shall be construed as 
limiting the authorities to terminate the service of units or members 
ordered to active duty under this section under subsection (g).". 
(c) TECHNICAL AMENDMENTS.—Such section is further amended— 
. -r 
(1) by striking out "Reserve component" in subsection (b) and 
inserting in lieu thereof "reserve component"; 
(2) by striking out "Armed Forces" in subsection (e) and 
inserting in lieu thereof "armed forces"; 
(3) by striking out "the Speaker" in subsection (f) and all that 
follows through "Senate" and inserting in lieu thereof "Con-
gress"; and 
(4) by striking out "a concurrent resolution of the Congress" 
in subsection (g)(2) and inserting in lieu thereof "law". 
SEC. 522. CONSENT OF GOVERNOR FOR CERTAIN ACTIVE DUTY OF 
NATIONAL GUARD 
Section 672 of title 10, United States Code, is amended by adding Infra. 
at the end the following new subsection: 
"(f) The consent of a Governor described in subsections (b) and (d) 
may not be withheld (in whole or in part) with regard to active duty 
outside the United States, its territories, and its possessions, because 
of any objection to the location, purpose, type, or schedule of such 
active duty.". 
SEC. 523. TREATMENT OF SINGLE PARENTS ENLISTING IN RESERVE 
10 USC 510 note. 
COMPONENTS OF THE ARMED FORCES 
(a) IN GENERAL.—In determining under section 510 of title 10, 
United States Code, whether a person who is applying to enlist in a 
reserve component of the Armed Forces upon discharge or release 
from active duty is qualified for enlistment as a Reserve of an 
Armed Force, the Secretary concerned may not disqualify the 
person because the person is a single parent i
f
— 
(1) the person is otherwise qualified for enlistment; 
(2) the person became a single parent while serving on active 
duty; and 
(3) the person's status as a single parent was not a factor in 
the person's discharge or release from active duty. 
(b) REQUIREMENTS NOT TO BE MORE STRINGENT.—The Secretary 
concerned shall provide that requirements imposed on a person 
described in subsection (a) with respect to parenthood shall not be 
more stringent than those imposed on a member who becomes a 
single parent during the term of the member's enlistment. The 
Secretary concerned may include a requirement for an acceptable 
written agreement with respect to child care as a prerequisite to 
enlistment. 
(c) SINGLE PARENT DEFINED.—In this section, the term "single 
parent" means a person who is not married and who has custody of 
a child under the age of 18 pursuant to a court order. 
(d) EXPIRATION.—This section shall expire on September 30, 1988. 
SEC. 524. ACTIVE-DUTY STATUS OF RESERVE COMPONENT MEMBERS IN A 
CAPTIVE STATUS 
(a) AUTHORITY FOR INVOLUNTARY CALL TO ACTIVE DUTY.—Section 
672 of title 10, United States Code (as amended by section 522), is 
amended by adding at the end the following new subsection: 
"(gXl) A member of a reserve component may be ordered to active 
duty without his consent if the Secretary concerned determines that 
100 STAT. 3872 
PUBLIC LAW 99-661—NOV. 14, 1986 
the member is in a captive status. A member ordered to active duty 
under this section may not be retained on active duty, without his 
consent, for more than 30 days after his captive status is terminated. 
Regulations. 
"(2) The Secretary of Defense shall prescribe regulations to carry 
out this section. Such regulations shall apply uniformly among the 
armed forces under the jurisdiction of the Secretary. A determina-
tion for the purposes of this subsection that a member is in a captive 
status shall be made pursuant to such regulations. 
"(3) In this section, the term 'captive status' means the status of a 
member of the armed forces who is in a missing status (as defined in 
section 551(2) of title 37) which occurs as the result of a hostile 
action and is related to the member's military status.". 
10 use 672 note. 
(b) EFFECTIVE DATE.—Section 672(g) of title 10, United States Code, 
as added by subsection (a), does not authorize a member of a reserve 
component to be ordered to active duty for a period before the date 
of the enactment of this Act. 
PART C—CIVILIAN PERSONNEL 
SEC. 531. WAIVER OF CIVILIAN PERSONNEL CEILINGS FOR FISCAL YEAR 
1987 
10 use 115 note. 
The provisions of section 115(b)(2) of title 10, United States Code 
(as designated and amended by section 110(b) of the Goldwater-
Nichols Department of Defense Reorganization Act of 1986 (Public 
Ante, p. 1001. 
Law 99-433)), shall not apply with respect to fiscal year 1987 or with 
respect to the appropriation of funds for that year. 
SEC. .532. PROHIBITION ON MANAGING CIVILIAN PERSONNEL BY END-
STRENGTHS DURING FISCAL YEAR 1987 
(a) PROHIBITION.—During fiscal year 1987, the civilian personnel 
of the Department of Defense may not be managed on the basis of 
any end-strength, and the management of such personnel during 
that fiscal year shall not be subject to any constraint or limitation 
(known as an "end-strength") on the number of such personnel who 
may be employed on the last day of such fiscal year. 
(b) FY87 REPORTS.—Not later than February 1, 1987, the Secretary 
of Defense shall submit to the Committees on Armed Services of the 
Senate and House of Representatives a report on the experience of 
the Department of Defense during fiscal years 1986 and 1987 (to the 
date of the report) concerning the management of civilian personnel 
of the Department without a congressionally imposed civilian end 
strength and with a statutory prohibition on the management 
during those fiscal years of such civilian personnel by end strength. 
Each such report shall include the views of the Secretary with 
respect to the desirability of managing such personnel in such a 
manner. 
(c) REPORTS.—(1) The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and House of Rep-
resentatives quarterly reports on the obligation of funds appro-
priated for civilian personnel of the Department of Defense for fiscal 
year 1987. Each report shall include— 
(A) for each appropriation account, the amounts authorized 
and appropriated for such personnel for fiscal year 1987; 
(B) for each appropriation account and for the entire Depart-
ment— 
(i) the actual number of such personnel employed, and 
;ij 
the amount of funds obligated for such personnel, as of the 
JOV 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3873 
end of each month of the fiscal year quarter described in 
the report; and 
(ii) the projected number of such personnel to be 
employed, and the amount of funds that will be obligated 
• 
for such personnel, as of the end of fiscal year 1987. 
SEC. 533. PROHIBITION ON CONTROLLING PERSONNEL NOT FUNDED BY 
GOVERNMENT 
Section 129 of title 10, United States Code (as redesignated by 
section 101(a) of the Goldwater-Nichols Department of Defense 
Reorganization Act of 1986 (Public Law 99-433)), is amended— 
Ante, p. 994. 
(1) by inserting "(a)" at the beginning of the text of such 
section; and 
(2) by adding at the end the following: 
"(b) The number of, and the amount of funds available to be paid 
' 
to, indirectly funded Government employees of the Department of 
Defense may not be— 
"(1) subject to any constraint or limitation on the number of 
such personnel who may be employed on the last day of a fiscal 
year; 
U
H
.
;
^
^
H
V
. lottS 
.^, 
"(2) managed on the basis of any end-strength; or 
"(3) controlled under any policy of the Secretary of a military 
department for control of civilian manpower resources. 
"(c) In this section, the term 'indirectly funded Government 
employees' means civilian employees of the Department of 
Defense— 
"(1) who are employed by industrial-type activities or 
" - •" '"'-
commercial-type activities described in section 2208 of this title; 
and 
"(2) whose salaries and benefits are funded from sources other 
than appropriated funds.". 
SEC. 5
3
4
. 
REDUCTION I
N 
NUMBER OF YEARS PERSON MUST BE OFF 
ACTIVE DUTY BEFORE APPOINTMENT AS SERVICE SEC-
RETARY 
' 
Sections 3013(a)(2), 5013(a)(2), and 8013(a)(2) of title 10, United 
^ ,., ^
^ 
, 
States Code (as added by sections 501, 511, and 521, respectively of 
the Goldwater-Nichols Department of Defense Reorganization Act of 
1986 (Public Law 99-433)), are amended by striking out "10 years" 
Ante, pp. 1034, 
and inserting in lieu thereof "five years". 
1042,1055. 
TITLE VI—COMPENSATION AND OTHER PERSONNEL 
BENEFITS 
PART A—PAY AND ALLOWANCES 
SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1987 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any adjustment 
37 USC1009 
required by section 1009 of title 37, United States Code, in elements 
^o^-
of compensation of members of the uniformed services to become 
effective during fiscal year 1987 shall not be made. 
(b) THREE PERCENT INCREASE IN BASIC PAY, BASIC ALLOWANCE FOR 
QUARTERS, AND BASIC ALLOWANCE FOR SUBSISTENCE.—The rates of 
basic pay, basic allowance for subsistence, and basic allowance for 
quarters of members of the uniformed services are increased by 3 
percent effective on January 1, 1987. 
100 STAT. 3874 
PUBLIC LAW 99-661—NOV. 14, 1986 
ii"^t? 
37 u s e 1006 
note. 
Effective date. 
Effective date. 
(c) THREE PERCENT INCREASE IN C A D E T AND MIDSHIPMAN 
P A Y . — 
Effective January 1, 1987, section 203(c)<,l) of title 37, United States 
Code, is amended by striking out "$461.40" and inserting in lieu 
thereof "$494.40". 
SEC. 602. AUTHORITY TO PAY ROTC MEMBERS IN ADVANCE FOR FIELD 
TRAINING 
(a) AUTHORITY.—Section 1006 of title 37, United States Code, is 
amended by adding at the end the following new subsection: 
"(j) Under regulations prescribed by the Secretary concerned, not 
more than one month's pay may be paid in advance to a member of 
the Senior Reserve Officers' Training Corps who is ordered to field 
training or a practice required under section 2109 of title 10.". 
(b) EFFECTIVE DATE.—Subsection (j) of title 37, United States Code, 
as added by subsection (a), shall apply with respect to pay payable 
for months beginning after the date of the enactment of this Act. 
SEC. 603. REIMBURSEMENT 
FOR ACCOMMODATIONS 
IN 
PLACE 
OF 
QUARTERS 
(a) LIMITATION ON AMOUNT 
AVAILABLE FOR REIMBURSEMENTS 
DURING FISCAL YEARS 1987 THROUGH 1991.—Effective as of October 
1, 1986, section 7572(b)(3) of title 10, United States Code, is amended 
to read as follows: 
"(3) The total amount of reimbursement under this subsection 
may not exceed $1,421,000 for fiscal year 1986 and $1,657,000 for 
each of the fiscal years 1987 through 1991.". 
Effective date. 
(b) EXTENSION OF AUTHORITY.—Effective as of October 1, 1986, 
section 3 of Public Law 96-357 (10 U.S.C. 7572 note) is amended by 
striking out "September 30, 1986" and inserting in lieu thereof 
"September 30, 1991". 
SEC. 604. PAY. ALLOWANCES, AND BENEFITS FOR MEMBERS OF THE 
RESERVE COMPONENTS 
(a) MEDICAL AND DENTAL CARE.—(1) Section 1074a of title 10, 
United States Code, is amended to read as follows: 
10USC1074a. 
"§ 1074a. Medical and dental care: members on duty other than 
active duty for a period of more than 30 days 
r>\ . . >,- h 
"(a) Under joint regulations prescribed by the administering Sec-
:.i' I 
retaries, the following persons are entitled to the benefits described 
in subsection (b): 
"(1) Each member of a uniformed service who incurs or 
aggravates an injury, illness, or disease in the line of duty while 
performing— 
"(A) active duty for a period of 30 days or less; or 
"(B) inactive-duty training. 
"(2) Each member of a uniformed service who incurs or 
aggravates an injury, illness, or disease while traveling directly 
'
-
> 
to or from the place at which that member is to perform or has 
performed— 
"(A) active duty for a period of 30 days or less; or 
"(B) inactive-duty training. 
K
> "(b) A person described in subsection (a) is entitled to— 
>> 
"(1) the medical and dental care appropriate for the treat-
xi 
ment of the injury, illness, or disease of that person until the 
K V 
resulting disability cannot be materially improved by further 
hospitalization or treatment; and 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3875 
"(2) subsistence during hospitalization. 
' 
^ 
"(c) A member is not entitled to benefits under this section if the 
injury, illness, or disease, or aggravation of an injury, illness, or 
disease described in subsection (a)(2), is the result of the gross 
negligence or misconduct of thie member.", 
(2) The item relating to section 1074a in the table of sections at the 
beginning of chapter 55 of such title is amended to read as follows: 
"1074a. Medical and dental care: members on duty other than active duty for a 
period of more than 30 days.". 
(b) PAY AND ALLOWANCES FOR DISABLED MEMBERS.—Section 204 of 
title 37, United States Code, is amended as follows: 
(1) Subsections (g) and (h) are amended to read as follows: 
"(g) A member of a reserve component of a uniformed service is 
entitled to the pay and allowances provided by law or regulation for 
a member of a regular component of a uniformed service of cor-
responding grade and length of service whenever such member— 
"(1) is called or ordered to active duty for a period of more 
than 30 days; and 
"(2) is physically disabled in line of duty from injury, illness, 
or disease. 
"(h)(1) A member of a reserve component of a uniformed service is 
entitled, upon request, to a portion of the monthly pay and allow-
ances provided by law or regulation for a member of a regular 
component of a uniformed service of corresponding grade and length 
of service for each month for which the member demonstrates a loss 
of income from non-military compensation as a result of an injury, 
illness, or disease incurred or aggravated— 
"(A) in line of duty while performing active duty for a period 
of 30 days or less; 
"(B) in line of duty while performing inactive-duty training 
'* 
(other than work or study in connection with a correspondence 
course of an armed force or attendance in an inactive status at 
an educational institution under the sponsorship of an armed 
force or the Public Health Service); or 
"(C) while traveling directly to or from that duty or training. 
"(2)(A) Subject to subparagraphs (B) and (C), pay and allowances 
paid under paragraph (1) shall be in an amount which offsets the 
loss of income from non-military compensation. 
"(B) Pay and allowances may not be paid under paragraph (1) to a 
member who is enrolled in any other income protection insurance 
plan to the extent that such payment would result in total benefits 
to the member of more than the demonstrated loss of income from 
non-military compensation. 
"(C) The total amount of pay and allowances paid under para-
graph (1) and compensation paid under section 206(a) of this title for 
any period may not exceed the amount of pay and allowances 
provided by law or regulation for a member of a regular component 
of a uniformed service of corresponding grade and length of service 
for that period. 
"(3) Pay and allowances may be paid under paragraph (1)— 
"(A) for a period of not more than six months; or 
"(B) for a longer period, if the Secretary concerned deter-
mines that it is in the interests of fairness and equity to do so. 
"(4) A member is not entitled to benefits under this subsection if 
the injury, illness, disease, or aggravation of an injury, illness, or 
100 STAT. 3876 
PUBLIC LAW 99-661—NOV. 14, 1986 
disease described in paragraph (1)(C) is the result of the gross 
misconduct of the member. 
"(5) Regulations with respect to procedures for paying pay and 
allowances under paragraph (1) shall be prescribed— 
"(A) by the Secretary of Defense for the armed forces under 
the jurisdiction of the Secretary; and 
"(B) by the Secretary of Transportation for the Coast Guard 
when the Coast Guard is not operating as a service in the 
"^ 
Navy.". 
(2) Subsection (i) is repealed. 
(3) Subsection (j) is redesignated as subsection (i). 
(c) INACTIVE-DUTY TRAINING PAY FOR DISABLED MEMBERS.—Sec-
tion 206(a) of title 37, United States Code, is amended by striking out 
"entitled to basic pay" the second place it appears and all that 
follows and inserting in lieu thereof the following: "entitled to basic 
pay— 
"(1) for each regular period of instruction, or period of appro-
priate duty, at which the member is engaged for at least two 
hours, including that performed on a Sunday or holiday; 
i 
"(2) for the performance of such other equivalent training, 
instruction, duty, or appropriate duties, as the Secretary may 
e: 
prescribe; or 
"(3) for a regular period of instruction that the member is 
scheduled to perform but is unable to perform because of phys-
,• 
ical disability resulting from an injury, illness, or disease 
incurred or aggravated— 
1, ., 
, , "(A) in line of duty while performing— 
"(i) active duty for a period of 30 days or less; or 
boh »
e 
"(ii) inactive-duty training; or 
"(B) while traveling directly to or from that duty or 
training (unless such injury, illness, disease, or aggravation 
of an injury, illness, or disease is the result of the gross 
negligence or misconduct of the member).". 
(d) RETIREMENT FOR DISABILITY.—(1) Sections 1204 and 1206 of title 
10, United States Code, are amended by striking out "resulting from 
an injury". 
(2)(A) The heading of section 1204 of such title is amended to read 
as follows: 
"§ 1204. Members on active duty for 30 days or less: retirement". 
(2) The heading of section 1205 of such title is amended to read as 
follows: 
; 
"§ 1205. Members on active duty for 30 days or less: temporary 
disability retired list". 
(3) The heading of section 1206 of such title is amended to read as 
follows: 
"§ 1206. Members on active duty for 30 days or less: separation". 
(4) The items relating to sections 1204, 1205, and 1206 in the table 
of sections at the beginning of chapter 61 of such title are amended 
to read as follows: 
"1204, Members on active duty for 30 days or less: retirement. 
"120.5. Members on active duty for 30 days or less: temporary disability retired list. 
"1206. Members on active duty for 30 days or less: separation.". 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3877 
(e) DifiATH BENEFITS.—(1) Section 1475(a) of title 10, United States 
Code, is amended by striking out "from an injury incurred by him 
after December 31, 1956," in paragraph (3). 
(2) Section 1476 of such title is amended— 
(A) by striking out subsection (a) and inserting in lieu thereof 
the following: 
"(a)(1) Except as provided in section 1480 of this title, the Sec-
retary concerned shall pay a death gratuity to or for the survivors 
prescribed in section 1477 of this title of each person who dies within 
- 
,,. 
120 days after discharge or release from— 
_,,,. 
"(A) active duty; or 
"(B) inactive-duty training (other than work or study in 
connection with a correspondence course of an armed force or 
attendance, in an inactive status, at an educational institution 
under the sponsorship of an armed force or the Public Health 
Service). 
"(2) A death gratuity may be paid under paragraph (1) only if the 
Administrator of Veterans' Affairs determines that the death 
resulted from an injury or disease incurred or aggravated during— 
"(A) the active duty or inactive-duty training described in 
I 
paragraph (1); or 
"(B) travel directly to or from such duty."; 
J 
(B) by striking out subsection (b); and 
(C) by redesignating subsections (c) and (d) as subsections (b) 
and (c), respectively. 
(3) Section 1481(a) of such title is amended— 
(A) by striking out paragraph (2) and inserting in lieu thereof 
. 
, , 
the following: 
"(2) a member of a reserve component of an armed force who 
dies while— 
"(A) on active duty; 
"(B) performing inactive-duty training; 
"(C) performing authorized travel directly to or from 
active duty or inactive-duty training; or 
"(D) hospitalized or undergoing treatment for an injury, 
^ 
illness, or disease incurred or aggravated while on active 
' ' 
duty or performing inactive-duty training;"; and 
(B) by striking out paragraph (3). 
(D TECHNICAL AND CONFORMING AMENDMENTS.—(1) Title 10, 
United States Code, is amended as follows: 
(A) Sections 3687, 3721, 3722, 6148, 8687, 8721, and 8722 are 
.... , ..r.. 
repealed. 
* 
" '"'' 
(B)(i) The table of sections at the beginning of chapter 353 is 
amended by striking out the item relating to section 3687. 
(ii) The table of sections at the beginning of chapter 355 is 
amended by striking out the items relating to sections 3721 and 
3722. 
(iii) The table of sections at the beginning of chapter 561 is 
amended by striking out the item relating to section 6148. 
(iv) The table of sections at the beginning of chapter 853 is 
amended by striking out the item relating to section 8687. 
"
* 
(v) The table of sections at the beginning of chapter 855 is 
amended by striking out the items relating to sections 8721 and 
8722 
(C) Sections 1076(aX2)(B) and 1086(c)(2)(B) are amended by 
striking out "injury or illness" and inserting in lieu thereof 
"injury, illness, or disease". 
100 STAT. 3878 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 u s e 3723, 
8723. 
10 u s e 1074a 
note. 
(D) Sections 3723 and 8723 are amended by striking out "was 
injured, or contracted a disease," and inserting in lieu thereof 
"incurred an injury, illness, or disease,". 
(2)(A) Sections 318, 319, 320, and 321 of title 32, United States 
Code, are repealed. 
(B) The table of sections at the beginning of chapter 3 of such title 
is amended by striking out the items relating to sections 318, 319, 
320, and 321. 
(g) EFFECTIVE DATE.—The amendments made by this section shall 
apply with respect to persons who, after the date of enactment of 
this Act, incur or aggravate an injury, illness, or disease or die. 
PART B—TRAVEL AND TRANSPORTATION 
SEC. 611. TRANSPORTATION 
OF 
MOTOR 
VEHICLES 
FOR 
MEMBERS 
MAKING PERMANENT CHANGES OF STATION 
(a) IN GENERAL.—Subsection (a) of section 2634 of title 10, United 
States Code, is amended— 
(1) by striking out "in the case o f and all that follows 
through "debarkation" in paragraph (4) and inserting in lieu 
thereof "by other surface transportation"; and 
(2) by striking out ", or his designee," in the second sentence. 
(b) REVISION TO DEFINITION OF CHANGE OF PERMANENT STATION.— 
Subsection 0^) of such section is amended to read as follows: 
"(b) In this section: 
Armed Forces. 
"(1) The term 'change of permanent station' means the trans-
fer or assignment of a member of the armed forces from a 
permanent station inside the continental United States to a 
permanent station outside the continental United States or 
from a permanent station outside the continental United States 
to another permanent station. It also includes an authorized 
change in home port of a vessel, or a transfer or assignment 
between two permanent stations in the continental United 
States when the member cannot, because of injury or the 
conditions of the order, drive the motor vehicle between the 
permanent duty stations. 
'• 
"(2) The term 'continental United States' does not include 
Alaska.". 
10 u s e 113 note. 
SEC. 612. COORDINATION OF PERMANENT CHANGE OF STATION MOVES 
WITH SCHOOL YEAR 
' 
The Secretary of each military department shall establish proce-
dures to ensure that, to the maximum extent practicable within 
operational and other military requirements, permanent change of 
station moves for members of the Armed Forces under the jurisdic-
tion of the Secretary who have dependents in elementary or second-
ary school occur at times that avoid disruption of the school 
schedules of such dependents. 
SEC. 613. LIMITATION ON AMOUNT FOR PCS MOVES DURING FISCAL YEAR 
Ur 
1987 
The total amount authorized to be appropriated to the Depart-
ment of Defense for fiscal year 1987 for permanent change of station 
moves may not exceed $2,533,760,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3879 
SEC. 614. REIMBURSEMENT FOR ACTUAL LODGING EXPENSES PLUS PER 
DIEM FOR MEMBERS ENTITLED TO TRAVEL ALLOWANCES 
(a) IN GENERAL.—Section 404(d) of title 37, United States Code, is 
amended— 
(1) by striking out "per diem in place of subsistence in an 
amount not more than $50 determined by the Secretaries con-
cerned to be sufficient" in paragraph (1)(B) and inserting in lieu 
thereof "payment in lieu of subsistence as provided in para- 
»!? tlJo Vu 
graph (2) of this subsection in an amount sufficient"; 
(2) by striking out "to be" in paragraph (1)(B) after "travel is"; 
i;-- and 
(3) by striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) Under regulations prescribed by the Secretaries concerned, a 
member of a uniformed service entitled to travel and transportation 
allowances under subsection (a) of this section is entitled to any of 
the following: 
"(A) A per diem allowance at a rate not to exceed that 
established by the Secretaries concerned. 
"(B) Reimbursement for the actual and necessary expenses of 
official travel not to exceed an amount established by the 
Secretaries concerned. 
"(C) A combination of payments described in subparagraphs 
(A) and (B) of this paragraph. 
"(3) A per diem allowance or maximum amount of reimbursement 
established for purposes of paragraph (2) of this subsection shall be 
established, to the extent feasible, by locality. 
"(4) For travel consuming less than a full day, the payment 
prescribed by regulation under paragraph (2) of this subsection 
shall be allocated in such manner as the Secretaries concerned 
prescribe.". 
(b) EFFECTIVE DATE.—(1) The amendments made by subsection (a) 37 USC 404 note, 
shall become effective on such date as the President makes a 
certification that payment of lodging expenses and per diem pro-
vided under such amendments would result in overall savings to the 
United States. If such amendments become effective, they shall 
apply with respect to travel performed on and after the date of the 
certification by the President. 
(2) The President shall cause to be published in the Federal 
Federal 
Register a certification made by him under paragraph (1). 
Register, 
publication. 
SEC. 615. TRANSPORTATION AND TRAVEL ALLOWANCES FOR ESCORTS 
FOR CERTAIN DEPENDENTS 
(a) IN GENERAL.—(1) Chapter 7 of title 37, United States Code, is 
amended by adding at the end the following new section: 
"§ 431. Travel and transportation: members escorting certain 
37 USC 431. 
dependents 
"(a) Under regulations prescribed by the Secretary concerned, a 
member of a uniformed service may be provided round trip 
transportation and travel allowances for travel performed or to be 
performed under competent orders as an escort for the member's 
dependent when travel by the dependent is authorized by competent 
authority and the dependent is incapable of traveling alone because 
of age, mental or physical incapacity, or other extraordinary 
circumstances. 
100 STAT. 3880 
PUBLIC LAW 99-661—NOV. 14, 1986 
' 
"(b) Whenever possible, the Military Airlift Command or Military 
Sealift Command shall be used, on a space-required basis, for the 
travel authorized by this section.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
vd ' ,
1
, -
"431. Travel and transportation: members escorting certain dependents.'". 
37 use 431 note. 
(b) EFFECTIVE DATE.—Section 431 of title 37, United States Code, 
as added by subsection (a), shall apply with respect to travel per-
formed after September 30, 1986. 
SP:C. 616. TRAVEL EXPENSES FOR OVERSEAS DEPENDENTS REQIIRINCJ 
MEDICAL CARE IN CERTAIN CIRCUMSTANCES 
(a) IN GENERAL.—Section 1040(a) of title 10, United States Code, is 
amended by striking out the comma after "attendants" and all that 
follows in the third sentence and inserting in lieu thereof a period 
and the following: "In addition to transportation of a dependent at 
the expense of the United States authorized under this subsection, 
reasonable 
travel 
expenses 
incurred 
in 
connection 
with 
the 
transportation of the dependent may be paid at the expense of the 
United States. Travel expenses authorized by this section 
may 
include reimbursement for necessary local travel in the vicinity of 
the 
medical 
facility 
involved. 
The 
transportation 
and 
travel 
expenses authorized by this section may be paid in advance.". 
10USC1040 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
"ote- 
shall apply only to travel performed on or after the date of the 
enactment of this Act. 
SEC. 617. PER DIEM FOR DEPENDENTS RECEIVLNd TRANSPORTATION 
ALLOWANCE 
(a) IN GENERAL.—Section 406 of title 37, United States Code, is 
amended as follows: 
-sv.i ? .1 >' .' , 
(2) 'pj^g fjpg^ sentence of subsection (e) is amended by striking 
• 
out ", as the case may be," and inserting in lieu thereof the 
following: "(as the case may be), plus a per diem,". 
(2) Subsection (f) is amended by inserting after "member" the 
following: ", plus a per diem for the member's dependents,". 
(3) Subsection (g)(1) is amended by inserting after "404(c) of 
this title" the following: ", and to a per diem for his depend-
, ; ' 
ents". 
; 
. 
(4) Subsection (j) is amended by inserting after "household 
effects," the following: "plus a per diem for the member's 
dependents,". 
37 use 406 note. 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply to travel performed after the date of the enactment of 
this Act. 
• 'M:'!^ I
K 
SEC. 618. MODIFICATION OF FAMILY SEPARATION ALLOWANCE 
t?-, 
(a) 
DENIAL 
OF ALLOWANCE 
TO CERTAIN 
MEMBERS.—(1) Section 
427(b) of title 37, United States Code, is amended— 
(1) by inserting "(1)" after "(b)"; 
(2) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C), respectively; 
(3) by designating the second sentence as paragraph (2) and 
striking out "clause (2) or (3)" in that sentence and inserting in 
lieu thereof "subparagraph (B) or (C) of paragraph (1)"; and 
(4) by adding at the end the following: 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3881 
"(3) A member who elects to serve a tour of duty unaccompanied 
by his dependents at a permanent station to which the movement of 
, - v .; • 
his dependents is authorized at the expense of the United States 
under section 406 of this title is not entitled to an allowance under 
Ante, p. 3880; 
this subsection. The Secretary concerned may waive the preceding po^t, p. 3882. 
sentence in situations in which it would be inequitable to deny the 
allowance to the member because of unusual family or operational 
circumstances." 
(b) SAVINGS PROVISION.—Notwithstanding the amendments made 
37 USC 427 note, 
by subsection (a), a member who on September 30, 1986, was 
assigned to a permanent station to which the movement of his 
dependents was authorized at the expense of the United States 
under section 406 of title 37, United States Code, and who elected to 
serve a tour of duty at that station unaccompanied by his depend-
ents, shall, until he departs that station as a result of a change of 
permanent station, be entitled to receive the allowance authorized 
by section 427(b) of such title without regard to paragraph (3) of such 
section, as added by subsection (a). 
SEC. 619, IMPROVED DISLOCATION ALLOWANCE 
(a) IN GENERAL.—Section 407 of title 37, United States Code, is 
amended to read as follows: 
"§ 407. Travel and transportation allowances: dislocation allow-
ance 
"(a) Except as provided in subsections Go), (c), and (d) of this section 
and under regulations prescribed by the Secretary concerned, a 
member of a uniformed service is entitled to a dislocation allowance 
equal to the basic allowance for quarters for two months as provided 
for the member's pay grade and dependency status in section 403 of 
this title i
f
— 
--
"(1) the member's dependents actually make an authorized 
move in connection with the member's change of permanent 
station, including— 
"(A) a move to join the member at the member's duty 
station after an unaccompanied tour of duty when the 
member's next tour of duty is an accompanied tour at the 
same station; and 
"(B) a move to a location designated by the member after 
an accompanied tour of duty when the member's next tour 
of duty is an unaccompanied tour at the same duty station; 
"(2) the member's dependents actually move pursuant to 
section 405a(a), 406(e), 406(h), or 554 of this title; 
Ante, p. 3880. 
"(3) the member's dependents actually move from their place 
of residence under circumstances described in section 406a of 
this title; or 
"(4) the member is without dependents and— 
"(A) actually moves to a new permanent station where 
not assigned to quarters of the United States; or 
"(B) actually moves from a place of residence under 
circumstances described in section 406a of this title. 
If a dislocation allowance is paid under clause (3) or (4)(B), the 
member is not entitled to a dislocation allowance under clause (1). 
"(b) Under regulations prescribed by the Secretary concerned, 
whenever a member is entitled to a dislocation allowance under 
subsection (aX3) or (aX4XB) of this section, the member is also 
entitled to a second dislocation allowance equal to the basic allow-
100 STAT. 3882 
PUBLIC LAW 99-661—NOV. 14, 1986 
ance for quarters for two months as provided for a member's pay 
37 use 403. 
grade and dependency status in section 403 of this title if, subse-
quent to the member or member's dependents actually moving from 
'*' 
their place of residence under circumstances described in section 
406a of this title, the member or member's dependents complete 
that move to a new location and then actually move from that new 
location to another location also under circumstances described in 
section 406a of this title. If a second dislocation allowance is paid 
3=#.i Ti,'i i
^ 
under this subsection, the member is not entitled to a dislocation 
allowance under subsection (aXD of this section in connection with 
those moves. 
"(c) A member is not entitled to more than one dislocation allow-
ance during a fiscal year unless— 
"(1) the Secretary concerned finds that the exigencies of the 
service require the member to make more than one change of 
permanent station during the fiscal year; 
"(2) the member is ordered to a service school as a change of 
permanent station; 
"(3) the member's dependents are covered by section 405a(a), 
Ante, p. 3880. 
406(e), 406(h), or 554 of this title; or 
"(4) the member or the member's dependents are covered by 
subsection (a)(3), (a)(4)(B), or (b) of this section. 
This subsection does not apply in time of national emergency 
declared after April 1, 1975, or in time of war. 
"(d) A member is not entitled to payment of a dislocation allow-
ance when ordered from his home to the first duty station or from 
the last duty station to his home. 
"(e) For purposes of this section, a member whose dependents may 
not make an authorized move in connection with a change of 
permanent station is considered a member without dependents." 
37 use 407 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect on the date of the enactment of this Act and shall 
apply only to moves which commence on or after that date. 
SEC. 620. TRANSPORTATION A
N
D STORAGE OF HOUSEHOLD GOODS 
(a) ADMINISTRATION OF STORAGE OF EXCESS HOUSEHOLD GOODS.— 
Section 406(d) of title 37, United States Code, is amended by insert-
ing after the second sentence the following new sentence: "In the 
event a member's baggage and household effects exceed such maxi-
mum weight limitation, the Secretary concerned, if requested to do 
so by the member, may pay the costs for the nontemporary storage 
of that excess weight and collect the amount paid from the mem-
i «i: 0 >
j
« 
ber's pay and allowances, or collect the amount in such other 
manner as the Secretary concerned determines appropriate.". 
(b) EARLY RETURN SHIPMENT OF HOUSEHOLD GOODS AND PRIVATELY 
OWNED MOTOR VEHICLES FROM OVERSEAS,—(1) Section 406 of such 
title is amended— 
(1) by redesignating subsection (1) as subsection (m); and 
(2) by inserting after subsection (k) the following new subsec-
tion (1): 
"(1) Under uniform regulations prescribed by the Secretaries con-
cerned, a member with dependents who is ordered to make an 
overseas permanent change of station and who, in anticipation of his 
dependents accompanying him overseas, ships baggage and house-
hold effects to that overseas station, may be authorized a return 
shipment of the baggage and household effects if, after the ship-
ment, the member's dependents are unable to accompany him over-
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3883 
seas and the Secretary concerned determines that such inability was 
unexpected and uncontrollable.". 
(2) Section 2634 of title 10, United States Code, as amended by 
section 611, is further amended by adding at the end the following 
new subsection: 
"(f) When the Secretary concerned makes a determination under 
section 406(1) of title 37 that the dependents of a member on a 
Ante, p. 3882. 
permanent change of station are unable to accompany the member 
to an overseas duty station because of unexpected and uncontrol-
lable circumstances, and the member shipped a motor vehicle pursu-
ant to this section in anticipation of a dependent accompanying the 
member to the new duty station, the member may reship or trans-
ship such motor vehicle in accordance with this section.". 
(c) EFFECTIVE DATES.—(1) The amendment made by subsection (a) 37 USC 406 note, 
shall apply to members whose baggage and household goods enter 
nontemporary storage on or after the date of the enactment of this 
Act. 
(2) The amendments made by subsection (b) shall apply only with 
respect to members whose dependents are unable to accompany 
them to an overseas permanent duty station because of cir-
cumstances arising on or after the date of the enactment of this Act. 
PART C—BONUSES AND SPECIAL AND INCENTIVE PAYS 
SEC. 631. ENHANCED AVIATION OFFICER CONTINUATION PAY 
(a) SERVICE FOR QUAUFYING.—Section 301b(e) of title 37, United 
States Code, is amended— 
(1) by striking out "less than seven years" in the third 
.. j^ sentence of paragraph (3), and inserting in lieu thereof "less 
than eight years"; and 
(2) by striking out paragraph (4). 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
37 USC 30lb 
shall apply to payments made for periods beginning after the date of note. 
the enactment of this Act under agreements entered into under 
section 301b of title 37, United States Code. 
SEC. 632. INCLUSION OF AVIATION CADETS UNDER AVIATION CAREER 
INCENTIVE PAY 
(a) IN GENERAL.—(1) Section 301a(a)(6) of title 37, United States 
Code, is amended— 
(A) by striking out "and" at the end of clause (A); 
^,j,_ 
(B) by striking out the period at the end of clause (B) and 
inserting in lieu thereof a semicolon and "and"; and 
(C) by inserting after clause (B) the following new clause: 
"(C) 'officer' includes an individual enlisted, and designated, 
as an aviation cadet under section 6911 of title 10.". 
(2) Section 301a(bXl) of such title is amended by striking out "an 
officer in pay grades 0-1 through O-IO" and inserting in lieu 
thereof "a member". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
37 USC 301a 
shall apply only with respect to those members of the Armed Forces 
^°^-
who are aviation cadets on or after the date of the enactment of this 
Act. Service as an aviation cadet before that date shall not be 
counted for any purpose under section 301a of title 37, United States 
Code. 
100 STAT. 3884 
PUBLIC LAW 99-661—NOV. 14, 1986 
SEC. 633. SPECIAL AUTHORITY RELATING TO THE PAYMENT OF SE-
LECTED RESERVE ENLISTMENT BONUS 
(a) IN GENERAL.—The Secretary concerned may pay an enlistment 
bonus under section 308c of title 37, United States Code, to any 
person who enlisted in the Selected Reserve of the Ready Reserve of 
an Armed Force during the period beginning on October 1,1985, and 
"
^ 
ending on November 8,1985, if such person— 
(1) has not been paid an enlistment or reenlistment bonus 
under section 308c or 308b of title 37, United States Code, since 
that period; and 
(2) enlisted in the good faith belief (as determined by the 
Secretary concerned) that he would be paid an enlistment bonus 
under section 308c of title 37, United States Code. 
116: 
(b) DEFINITION.—As used in subsection (a), the term "Secretary 
concerned" has the meaning provided in section 101(5) of title 37, 
United States Code. 
SEC. 634. SPECIAL PAY 
FOR 
MEMBERS PROFICIENT IN FOREIGN 
LANGUAGES 
(a) AUTHORITY FOR SPECIAL PAY.—(1) Chapter 5 of title 37, United 
States Code, is amended by adding at the end the following new 
section: 
37 use 316. 
"§ 316. Special pay: foreign language proficiency pay 
"(a) A member of the armed forces— 
Ante, p. 3875. 
"(1) who is entitled to basic pay under section 204 of this title; 
"(2) who has been certified by the Secretary concerned within 
t 
the past 12 months to be proficient in a foreign language 
[ 
identified by the Secretary of Defense as being a language in 
which it is necessary to have personnel proficient because of 
national defense considerations; and 
"(3) who— 
" 
"(A) is qualified in a military specialty requiring such 
;
^ .
^ ^ 
proficiency; 
* ^ 
"(B) received training, under regulations prescribed by 
the Secretary concerned, designed to develop such pro-
WAW 
ficiency; 
"(C) is assigned to military duties requiring such a pro-
ficiency; or 
''^' 
"(D) is proficient in a foreign language for which the 
Department of Defense may have a critical need (as deter-
mined by the Secretary of Defense), 
may be paid special pay under this section in addition to any other 
pay or allowance to which the member is entitled. 
"(b) The monthly rate for special pay under subsection (a) shall be 
determined by the Secretary concerned and may not exceed $100. 
"(cXD Under regulations prescribed by the Secretary concerned, 
when a member of a reserve component who is entitled to compensa-
Ante, p. 3876. 
tion under section 206 of this title meets the requirements for 
special pay authorized in subsection (a), except the requirement 
prescribed in subsection (aXD, the member may be paid an increase 
'' 
in compensation equal to one-thirtieth of the monthly special pay 
authorized under subsection (b) for a member who is entitled to 
basic pay under section 204 of this title. 
"(2) A member eligible for increased compensation under para-
graph (1) shall be paid such increase— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3885 
. >, 
««(^) fQj. g^jjjj regular period of instruction, or period of appro-
priate duty, in which he is engaged for at least two hours, 
including instruction received or duty performed on a Sunday 
or holiday; and 
"(B) for each period of performance of such other equivalent 
training, instruction, duty, or appropriate duties, as the Sec-
retary concerned may prescribe. 
"(3) This subsection does not apply to a member who is entitled to 
basic pay under section 204 of this title. 
Ante, p. 3875. 
"(d) This section shall be administered under regulations pre-
scribed by the Secretary of Defense for the armed forces under his 
jurisdiction and by the Secretary of Transportation for the Coast 
Guard when the Coast Guard is not operating as a service in the 
Navy.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"316. Special pay: foreign language proficiency pay.". 
(b) EFFECTIVE DATE.—Section 316 of title 37, United States Code, 37 use 316 note, 
as added by subsection (a), shall take effect on the date of the 
enactment of this Act, and shall apply with respect to pay periods 
beginning on or after that date. 
(c) LIMITATIONS ON OBLIGATIONS.—Not more than $7,300,000 may 
be obligated or expended for the payment of the special pay au-
thorized by section 316 of title 37, United States Code (as added by 
this section), during fiscal year 1987, and not more than $9,000,000 
may be obligated or expended for such purpose during fiscal year 
1988. 
PART D—BENEFITS FOR SURVIVORS AND FORMER SPOUSES 
SEC. 641. COURT-ORDERED SURVIVOR ANNUITIES FOR FORMER SPOUSES 
(a) GENERAL RULE.—Paragraph (4) of section 1450(f) of title 10, 
United States Code, is amended to read as follows: 
"(4) A court order may require a person to elect (or to enter into 
an agreement to elect) under section 1448(b) of this title to provide 
an annuity to a former spouse (or to both a former spouse and 
child).". 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1448(b)(5) of such title is amended by inserting "(A) 
whether the election is being made pursuant to the require-
ments of a court order, or (B)" after "setting forth". 
- t. 
(2) Paragraph (2) of section 1450(f) of such title is amended— 
,« 
(A) by striking out "enters into" and all that follows 
through "pursuant to such agreement" and inserting in 
lieu thereof "is required by a court order to elect under 
'*** * 
section 1448(b) of this title to provide an annuity to a 
former spouse (or to both a former spouse and child), or who 
• .'•"'' 
enters into a written agreement (whether voluntary or 
j'jii >
-
i 
required by a court order) to make such an election, and 
who makes an election pursuant to such order or agree-
i ; 
ment,"; 
> 
• 
(B) by striking out "in a case in which such agreement" 
-
at the beginning of subparagraph (A) and inserting in lieu 
thereof "in a case in which the election is required by a 
100 STAT. 3886 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 use 1450 
note. 
10 use 1448 
note. 
10 use 1450. 
10 use 1450 
note. 
court order, or in which an agreement to make the elec-
tion"; 
v%, -, 
(C) by striking out "relating to the agreement to make 
such election" and inserting in lieu thereof "relating to 
,'s, 
such election, or the agreement to make such election,"; 
, , 
and 
(D) by striking out "in which such agreement" at the 
beginning of subparagraph (B) and inserting in lieu thereof 
"of a written agreement that". 
(3) Paragraph (3)(A) of such section is amended— 
(A) by striking out "voluntary" both places it appears; 
(B) by inserting "or if such person is required by a court 
order to make such an election," after "applicable State 
law" the first place it appears; and 
(C) by inserting "requires such election or" after "on its 
face, which". 
(c) EFFECTIVE DATE.—The amendments made by this section apply 
to court orders issued on or after the date of the enactment of this 
Act. 
SEC. 642. ANNUITY FOR A DEPENDENT CHILD 
(a) REPEAL OF COMMON-ACCIDENT LIMITATION.—(1) Subsection 
(d)(2) of section 1448 of title 10, United States Code, is amended by 
striking out "if the member and the member's spouse die as a result 
of a common accident" and inserting in lieu thereof "if there is no 
surviving spouse or if the member's surviving spouse subsequently 
dies". 
(2) Subsection (f)(2) of such section is amended by striking out "if 
the person and the person's spouse die as a result of a common 
accident" and inserting in lieu thereof "if there is no surviving 
spouse or if the person's surviving spouse subsequently dies". 
(b) AMOUNT OF ANNUITY FOR DISABLED CHILD OVER AGE 62.—(1) 
Subsection (a) of section 1451 of such title is amended— 
(A) by inserting "or is a dependent child" in paragraphs (IXA) 
and (2)(A) after "under 62 years of age"; and 
(B) by inserting "(other than a dependent child)" in para-
graphs (1)(B) and (2XB) after "beneficiary". 
(2) Subsection (c)(1) of such section is amended— 
(A) by inserting "or is a dependent child" in subparagraph (A) 
after "under 62 years of age"; and 
^' 
(B) by inserting "(other than a dependent child)" in subpara-
graph (B) after "receiving the annuity". 
(c) EFFECTIVE DATES.—The amendments made by subsection (a) 
shall apply only to claims arising on or after March 1, 1986. The 
amendments made by subsection (b) shall apply to payments for 
periods after February 28,1986. 
SEC. 643. AGE AT WHICH REMARRIAGE TERMINATES SPOUSE SURVIVOR 
BENEFIT 
(a) REDUCTION FROM AGE 60 TO AGE 55.—Section 1450(b) of such 
title is amended by striking out "age 60" both places it appears and 
inserting in lieu thereof "age 55". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply with respect to remarriages that occur on or after the 
date of the enactment of this Act, but only with respect to payments 
for periods after the date of the enactment of this Act. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3887 
SEC. 644. REVISION OF DEFINITION OF DISPOSABLE RETIRED PAY FOR 
PURPOSES OF COURT ORDERS 
(a) IN GENERAL.—Section 1408(a)(4) of such title is amended— 
10 USC 1408. 
(1) by striking out "(other than" and all that follows through 
"title) in the matter preceding subparagraph (A); and 
(2) by striking out subparagraph (E) and inserting in lieu 
thereof the following: 
"(E) in the case of a member entitled to retired pay under 
chapter 61 of this title, are equal to the amount of retired pay of 
10 USC 1201 et 
the member under that chapter computed using the percentage ««9-
of the member's disability on the date when the member was 
retired (or the date on which the member's name was placed on 
the temporary disability retired list); or". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
10 USC 1408 
shall apply with respect to court orders issued after the date of the 
note, 
enactment of this Act. 
SEC. 645. REVISION OF OPEN PERIOD TO ELECT FORMER SPOUSE A
N
D 10 USC 1448 
CHILD COVERAGE 
note. 
Section 716(b) of the Survivor Benefit Plan Amendments of 1985 
(title VII of Public Law 99-145; 99 Stat. 674) is amended— 
(1) by striking out "the date of the enactment of this Act" and 
inserting in lieu thereof "March 1,1986,"; 
(2) by striking out ", within the one-year period beginning on 
that date of enactment,"; and 
(3) by adding at the end the following new sentence: "Such an 
election must be made— 
"(1) not later than March 1, 1987, in the case of a person who 
made the election to provide an annuity for a former spouse 
before November 8,1985; and 
"(2) not later than the end of the one-year period beginning on 
the date of the enactment of the Department of Defense 
Authorization Act, 1987, in the case of a person who made the 
election to provide an annuity for a former spouse during the 
period beginning on November 8, 1985, and ending on February 
28,1986.". 
SEC. 646. EXTENSION OF MEDICAL BENEFITS FOR CERTAIN FORMER 
10 USC 1072 
SPOUSES 
note. 
Section 645(c) of the Department of Defense Authorization Act, 
1985 (Public Law 98-525; 98 Stat. 2549), is amended by striking out 
"during the two-year period" and inserting in lieu thereof "until the 
later of (1) April 1, 1988, and (2) the last day of the two-year period". 
PART E—MISCELLANEOUS BENEFITS 
SEC. 651. TUITION ASSISTANCE FOR A
R
M
Y RESERVE COMPONENT 
OFFICERS 
(a) IN GENERAL.—Section 2007 of title 10, United States Code, is 
amended— 
(1) by inserting "on active duty" in subsection (a)(3) after "a 
commissioned officer"; and 
(2) by adding at the end of the following new subsection: 
"(c)(1) Subject to paragraphs (2) and (3), the Secretary of the Army 
may pay not more than 75 percent of the charges of an educational 
institution for the tuition or expenses of an officer in the Selected 
Reserve of the Army National Guard or the Army Reserve for 
100 STAT. 3888 
PUBLIC LAW 99-661—NOV. 14, 1986 
education or training of such officer in a program leading to a 
baccalaureate degree. 
• 
5ij 
|'(2) The Secretary may not pay charges under paragraph (1) for 
tuition or expenses of an officer unless the officer agrees to remain a 
member of the Selected Reserve for at least four years after comple-
tion of the education or training for which the charges are paid. 
"(3) The Secretary may not pay charges under paragraph (1)— 
"(A) for a warrant officer; or 
*: .; 
r 
"(B) for an officer on active duty or full-time National Guard 
duty.", 
(b) LIMITATION ON AMOUNT FOR FISCAL YEAR 1987.—The total 
amount obligated by the Secretary of the Army under subsection (c) 
of section 2007 of title 10, United States Code, as added by subsection 
(a), during fiscal year 1987 may not exceed $3,000,000. 
10 use 2007 
(c) EFFECTIVE DATE.—Subsection (c) of section 2007 of title 10, 
»o*«. 
United States Code, as added by subsection (a), shall take effect on 
, 
the date of the enactment of this Act. 
SEC. 652. BENEFITS FOR DEPENDENTS OF CERTAIN SENTENCED, DIS-
CHARGED, OR DISMISSED MEMBERS 
(a) TRAVEL AND TRANSPORTATION OF DEPENDENTS.—Paragraph 
(2)(A) of section 406(a) of title 37, United States Code, is amended to 
read as follows: 
"(2)(A) Except as provided in subparagraph (B) of this paragraph, 
a member who— 
"(i) is separated from the service or released from active duty; 
and 
"(ii) on the date of his separation from the service or release 
from active duty, has not served on active duty for a period of 
time equal to at least 90 percent of the period of time for which 
he initially enlisted or otherwise initially agreed to serve, 
may be provided transportation under this subsection for his 
dependents only by transportation in kind by the least expensive 
mode of transportation available or by a monetary allowance that 
does not exceed the cost to the Government of such transportation 
in kind.". 
(b) TRANSPORTATION OF HOUSEHOLD EFFECTS.—Section 406(h) of 
such title is amended— 
(1) by striking out the first sentence and inserting in lieu 
thereof the following: 
"(1) If the Secretary concerned determines that it is in the best 
interests of a member described in paragraph (2) or the member's 
dependents and the United States, the Secretary may, when orders 
directing a change of permanent station for the member concerned 
have not been issued, or when they have been issued but cannot be 
used as authority for the transportation of the member's depend-
ents, baggage, and household effects— 
"(A) authorize the movement of the member's dependents, 
••>, baggage, and household effects at the station to an appropriate 
location in the United States or its possessions or, if the depend-
ents are foreign nationals, to the country of the dependents' 
origin and prescribe transportation in kind, reimbursement 
therefor, or a monetary allowance in place thereof, as the case 
may be, plus a per diem, as authorized under subsection (a) or 
(b); and 
"(B) in the case of a member described in paragraph (2XA), 
1 
authorize the transportation of one motor vehicle that is owned 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3889 
'-'v by the member (or a dependent of the member) and is for his 
dependents' personal use to that location by means of transpor-
tation authorized under section 2634 of title 10."; and 
(2) by adding at the end the following new paragraph: 
"(2) A member referred to in paragraph (1) is a member who— 
"(A) is serving at a station outside the United States or in 
Hawaii or Alaska; 
"(B) receives an administrative discharge under other than 
honorable conditions; or 
"(C) is sentenced by a court-martial— 
"(i) to be confined for a period of more than 30 days, 
"(ii) to receive a dishonorable or bad-conduct discharge, 
or 
"(iii) to be dismissed from a uniformed service, 
if the sentence is approved under section 860(c)(2) of title 10.". 
(c) MEDICAL CARE AT D O D FACILITIES.—Section 1076 of title 10, 
United States Code, is amended by adding at the end the following 
new subsection: 
"(e)(1) Subject to paragraph (3), if— 
"(A) a member of a uniformed service receives a dishonorable 
or bad-conduct discharge or is dismissed from a uniformed 
service as a result of a court-martial conviction for an offense 
involving abuse of a dependent of the member, as determined in 
accordance with regulations prescribed by the administering 
Secretary for such uniformed service; and 
"(B) the abused dependent needs medical or dental care for an 
injury or illness resulting from the abuse, 
the administering Secretary may, upon request of the abused 
dependent, furnish medical or dental care to the dependent for the 
treatment of such injury or illness in facilities of the uniformed 
services. 
"(2) Subject to paragraph (3), upon request of any dependent of a 
member of a uniformed service punished for an abuse described in 
paragraph (1)(A), the administering Secretary for such uniformed 
service may furnish medical care in facilities of the uniformed 
services to the dependent for the treatment of any adverse health 
condition resulting from such dependent's knowledge of (A) the 
abuse, or (B) any injury or illness suffered by the abused person as a 
result of such abuse. 
"(3) Medical and dental care furnished to a dependent of a 
member of the uniformed services in facilities of the uniformed 
services under paragraph (1) or (2)— 
"(A) shall be limited to the health care prescribed by section 
1077 of this title; 
"(B) shall be subject to the availability of space and facilities 
and the capabilities of the medical and dental staff; and 
"(C) shall terminate 1 year after the date on which the 
member is discharged or dismissed from a uniformed service as 
described in paragraph (1)(A).". 
(d) CHAMPUS.—Section 1079 of such title is amended by adding 
at the end the following new subsection: 
"(1)(1) Contracts entered into under subsection (a) shall also pro-
vide for medical care for dependents of former members of the 
uniformed services who are authorized to receive medical and dental 
care under section 1076(e) of this title in facilities of the uniformed 
services. 
Hawaii. 
Alaska. 
Contracts. 
100 STAT. 3890 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(2) Except as provided in paragraph (3), medical care in the case 
Ante, p. 3889. 
of a dependent described in section 1076(e) shall be furnished under 
the same conditions and subject to the same limitations as medical 
care furnished under this section to spouses and children of mem-
bers of the uniformed services described in the first sentence of 
5 i; ^ 
subsection (a). 
ny.. 
«^g^ Medical care may be furnished to a dependent pursuant to 
paragraph (1) only for an injury, illness, or other condition described 
in section 1076(e) of this title.". 
37 use 406 note. 
(e) EFFECTIVE DATES.—(1) The amendment made by subsection (a) 
shall apply only with respect to members discharged or released 
from active duty on or after the date of the enactment of this Act. 
(2)(A) The amendments made by subsection (b) shall apply with 
respect to dependents about whom a determination by the Secretary 
concerned is made on or after the date of the enactment of this Act. 
(B) In the case of a member described in section 406(h)(2)(c) of such 
title 37 (as added by subsection (b)), the benefits provided for the 
dependents of the member shall accrue on the date that the sen-
tence is approved under section 860 of title 10, United States Code. 
10 use 1076 
(3) The amendment made by subsection (c) shall apply only with 
note. 
respect to dependents who request medical or dental care on or after 
the date of the enactment of this Act. 
10 use 1079 
(4) The amendment made by subsection (d) shall apply only with 
note. 
respect to care furnished under section 1079 of title 10, United 
States Code, on or after the date of the enactment of this Act. 
SEC. 653. IMPROVED EMPLOYMENT OPPORTUNITIES FOR MILITARY 
SPOUSES 
10 use 113 note. 
Section 80603)(2) of the Military Family Act of 1985 (title VIII of 
Public Law 99-145; 99 Stat. 680) is amended by striking out "GS-7" 
and inserting in lieu thereof "GS-4". 
SEC. 654. RETIREMENT CREDIT FOR CERTAIN FORMER NATIONAL GUARD 
TECHNICIANS 
32 use 709 note. 
(a) CiviL SERVICE RETIREMENT CREDIT.—A period of service per-
formed under section 709 of title 32, United States Code (or under a 
prior corresponding provision of law), before January 1, 1969, which 
would not otherwise be creditable under subchapter III of chapter 83 
5 use 8331 et 
of title 5, United States Code, because of the antepenultimate 
seQ- 
sentence of section 8332(b) of such title, shall be considered cred-
itable service under such subchapter, notwithstanding such sen-
tence, in the case of an individual described in subsection (b). 
(b) COVERED INDIVIDUALS.—Subsection (a) applies in the case of an 
individual who— 
(1) before the end of the 14-month period beginning on the 
' 
date of the enactment of this Act, files appropriate written 
application with the Office of Personnel Management in accord-
ance with regulations under subsection (c); 
* 
(2) at the time of filing application under paragraph (1), is 
employed by the United States and is subject to subchapter III 
^
^
' 
of chapter 83 of title 5, United States Code (other than under 
section 8344 of such title); and 
' ' ' 
* 
(3) before the date of the separation on which entitlement to 
:
* 
an annuity under subchapter III of chapter 83 of title 5, United 
j' 
States Code, is based, makes an appropriate deposit under 
^
^ 
section 8334(c) of such title with respect to the period of service 
involved, based on the percentage of basic pay for such service 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3891 
which would be required under such section if such service had 
been performed as an employee under such subchapter. 
(c) REGULATIONS.—The Office of Personnel Management shall 
prescribe regulations to carry out subsection (a). Such regulations 
shall be prescribed not later than 60 days after the date of the 
enactment of this Act. 
SEC. 655. MEAL REIMBURSEMENT FOR NONPROFIT YOUTH GROUPS 
RESIDING AT MILITARY INSTALLATIONS 
Section 1011(b) of title 37, United States Code, is amended by 
inserting after "military installation" in the second sentence the 
following: "or when residing at a military installation pursuant to 
an agreement in effect on June 30, 1986,". 
SEC. 656. PERIOD FOR USE OF COMMISSARIES BY MEMBERS OF SE- 
* 
"'^''^ 
LECTED RESERVE 
(a) IN GENERAL.—(1) Chapter 53 of title 10, United States Code, is 
amended by adding at the end the following new section: 
"§1052. Period for use of commissary stores: eligibility attrib- 10USC1052. 
utable to active duty for training 
"(a) PERIOD FOR USE OF ELIGIBILITY.—If, under regulations 
establishing eligibility for use of commissary stores, a member of the 
armed forces accrues eligibility to use commissary stores of the 
-.• -
Department of Defense by reason of the performance of active duty 
for training, the Secretary concerned shall authorize the member to 
have one year from the date on which the member performs active 
duty for training to use a day of eligibility for using commissary 
stores attributable to the performance of that duty. 
"(b) LIMITATION.—A member may not use commissary stores by 
reason of this section for more than 14 days in any period of 365 
days. 
"(c) REGULATIONS.—The Secretary concerned shall prescribe regu-
lations, subject to the approval of the Secretary of Defense, to carry 
out this section.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"1052. Period for use of commissary stores: eligibility attributable to active duty for 
training.". 
(b) REPEAL OF TEST PROGRAM.—Section 1013 of the Department of 
Defense Authorization Act, 1984 (Public Law 98-94; 97 Stat. 665), is 
repealed. 
(c) EFFECTIVE DATE.—Section 1052 of title 10, United States Code, 
10 USC 1052 
as added by the amendments made by subsection (a), and the repeal 
^°^-
made by subsection (b), shall apply only with respect to active duty 
for training performed on or after the date of the enactment of this 
Act. 
PART F—ADMINISTRATION OF PERSONNEL BENEFITS 
SEC. 661. ENHANCED METHOD FOR DETERMINING TRUE COSTS OF MILI-
TARY RETIREMENT 
(a) USE OF DUAL PERCENTAGE DETERMINATIONS.—Section 1465(b)(1) 
of title 10, United States Code, is amended by striking out the second 
sentence and inserting in lieu thereof the following: "That amount 
shall be the sum of the following: 
"(A) The product of— 
100 STAT. 3892 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(i) the current estimate of the value of the single level 
percentage of basic pay to be determined under subsection 
-fs 
(cXlXA) at the time of the next actuarial valuation under 
. r ' 
subsection (c); and 
1 
"(ii) the total amount of basic pay expected to be paid 
during that fiscal year to members of the armed forces 
(other than the Coast Guard) on active duty (other than 
active duty for training) or full-time National Guard duty 
(other than full-time National. Guard duty for training 
• ' ' 
only). 
-"- ' "(B) The product of— 
"(i) the current estimate of the value of the single level 
percentage of basic pay and of compensation (paid pursuant 
Ante, p. 3876. 
. 
to section 206 of title 37) to be determined under subsection 
(c)(1)(B) at the time of the next actuarial valuation under 
subsection (c); and 
'' 
"(ii) the total amount of basic pay and of compensation 
(paid pursuant to section 206 of title 37) expected to be paid 
; J 
during that fiscal year to members of the Ready Reserve of 
the armed forces (other than the Coast Guard and other 
than members on full-time National Guard duty other than 
for training) who are not otherwise described in subpara-
graph (A)(ii).". 
10 use 1465. 
(2) Section 1465(c)(1) of such title is amended by striking out the 
second sentence and inserting in lieu thereof the following: "Each 
actuarial valuation of such programs shall include— 
"(A) a determination (using the aggregate entry-age normal 
cost method) of a single level percentage of basic pay for mem-
bers of the armed forces (other than the Coast Guard) on active 
duty (other than active duty for training) or full-time National 
Guard duty (other than full-time National Guard duty for train-
ing only); and 
"(B) a determination (using the aggregate entry-age normal 
"
? 
cost method) of a single level percentage of basic pay and of 
compensation (paid pursuant to section 206 of title 37) for 
•
^ 
members of the Ready Reserve of the armed forces (other than 
the Coast Guard and other than members on full-time National 
Guard duty other than for training) who are not otherwise 
described by subparagraph (A). 
Such single level percentages shall be used for the purposes of 
subsection (b) and section 1466(a) of this title.". 
(b) PAYMENTS INTO MILITARY RETIREMENT FUND BASED ON DUAL 
DETERMINATIONS.—The first sentence of section 1466(a) of such title 
"' 
, .
* 
is amended by striking out "the amount that is" and all that follows 
in such sentence and inserting in lieu thereof "the amount that is 
the sum of the following: 
"(1) The product of— 
"(A) the level percentage of basic pay determined using 
all the methods and assumptions approved for the most 
recent (as of the first day of the current fiscal year) actuar-
ial valuation under section 1465(c)(1)(A) of this title (except 
that any statutory change in the military retirement and 
survivor benefit systems that is effective after the date of 
n» 
that valuation and on or before the first day of the current 
j i 
fiscal year shall be used in such determination); and 
"(B) the total amount of basic pay paid that month to 
members of the armed forces (other than the Coast Guard) 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3893 
on active duty (other than active duty for training) or full-
time National Guard duty (other than full-time National 
Guard duty for training only). 
"(2) The product of— 
"(A) the level percentage of basic pay and of compensa-
tion (paid pursuant to section 206 of title 37) determined 
Ante, p. 3876. 
using all the methods and assumptions approved for the 
d 
most recent (as of the first day of the current fiscal year) 
actuarial valuation under section 1465(c)(1)(B) of this title 
f t ; 
(except that any statutory change in the military retire-
ment and survivor benefit systems that is effective after the 
Ai jij. 
date of that valuation and on or before the first day of the 
current fiscal year shall be used in such determination); 
and 
"(B) the total amount of basic pay and of compensation 
(paid pursuant to section 206 of title 37) paid that month to 
members of the Ready Reserve of the armed forces (other 
'
^
^ "'' '-' 
'"'" 
than the Coast Guard and other than members on full-time 
National Guard duty other than for training) who are not 
otherwise described in paragraph (1)(B).". 
(c) DEVELOPMENT AND SUBMISSION OF DATA ON RESERVE COMPO- 
J
K S; >
* 
NENTS.—Not later than September 30, 1987, the Secretary of each 
military department shall develop the data required pursuant to 
Department of Defense Instruction Number 7730.54 (dated May 7, 
1986) and submit such data to the Secretary of Defense. In accord-
ance with such instruction, such data shall include the following 
with respect to each member of a reserve component: 
(1) Date of initial entry into military service. 
(2) Total days of active Federal military service. 
(3) Years creditable for Reserve retirement under chapter 67 
of title 10, United States Code. 
10 USC 1331 et 
(4) Reserve component accumulated total creditable retire- ^eq. 
* 
ment points earned during the member's most recently com-
3 
pleted retirement year. 
(5) Reserve component accumulated paid points earned 
during the member's most recently completed retirement year. 
(6) Reserve component total accumulated creditable points 
. ^ 
toward retirement earned during the member's career. 
(d) EFFECTIVE DATE.—The amendments made by subsections (a) 
10 USC 1465 
and (b) shall apply to payments required to be made under section note. 
1466(a) of title 10, United States Code, as amended by subsection Ot)), 
for months beginning on or after the date of the enactment of this 
Act. 
SEC. 662. AUTHORITY TO PAY BANK CHARGES IN THE EVENT OF GOVERN-
MENT ERROR IN MANDATORY DIRECT DEPOSIT OF MEMBERS' 
PAY 
(a) IN GENERAL.—(1) Chapter 53 of title 10, United States Code (as 
amended by section 656), is amended by adding at the end the 
following new section: 
"§ 1053. Relief for expenses because of error in mandatory direct 
10 USC 1053. 
deposit of pay 
"(a) A member of the armed forces who, by law or regulation, is 
required to participate in a program for the automatic deposit of pay 
to a financial institution may be reimbursed for overdraft charges 
levied by the financial institution when such charges result from an 
100 STAT. 3894 
PUBLIC LAW 99-661—NOV. 14, 1986 
administrative or mechanical error on the part of the Government 
that causes such member's pay to be deposited late or in an incor-
rect amount or manner. 
"(b) Reimbursements under this section shall be made from appro-
priations available for the pay and allowances of members of the 
r% (j :::i<r^K 
armed force concerned. 
"(c) The Secretaries concerned shall prescribe regulations to carry 
out this section, including regulations for the manner in which 
reimbursement under this section is to be made. 
"(d) In this section, the term 'financial institution* has the mean-
ing given that term in section 3332 of title 31.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"1053. Relief for expenses because of error in mandatory direct deposit of pay.". 
10 use 1053 
^c) EFFECTIVE DATE.—Section 1053 of title 10, United States Code, 
Jiote. 
as added by subsection (a), shall apply only with respect to charges 
levied as a result of errors occurring on or after the date of the 
enactment of this Act. 
37 u s e 308 note. 
SEC. 663. COST REDUCTIONS FOR FISCAL YEAR 1987 
(a) SELECTIVE REENLISTMENT BONUS.—During fiscal year 1987, the 
Secretary concerned may not pay more than 50 percent of an 
amount paid to any person under section 308 of title 37, United 
States Code, in a lump sum. 
(b) RESERVE UNIT AND INDIVIDUAL TRAINING.—During fiscal year 
1987, the amount spent for reserve unit and individual training may 
not exceed $5,084,500,000. 
, a 
i 
TITLE VII—HEALTH-CARE MANAGEMENT REFORM 
SEC. 701. IMPROVEMENT OF MILITARY HEALTH-CARE DELIVERY SYSTEM 
(a) IN GENERAL.—(1) Chapter 55 of title 10, United States Code, is 
amended by adding at the end the following new sections: 
10 use 1096. 
"§ 1096. Military-civilian health services partnership program 
"(a) RESOURCES SHARING AGREEMENTS.—The Secretary of Defense 
may enter into an agreement providing for the sharing of resources 
'" 
between facilities of the uniformed services and facilities of a 
civilian health care provider or providers that the Secretary con-
10 use 1079, 
tracts with under section 1079, 1086, or 1097 of this title if the 
1086,1097. 
Secretary determines that such an agreement would result in the 
delivery of health care to which covered beneficiaries are entitled 
under this chapter in a more effective, efficient, or economical 
manner. 
"(b) ELIGIBLE RESOURCES.—An agreement entered into under 
subsection (a) may provide for the sharing o
f
— 
"(1) personnel (including support personnel); 
"(2) equipment; 
«v.. 
"(3) supplies; and 
"(4) any other items or facilities necessary for the provision of 
health care services. 
"(c) COMPUTATION OF CHARGES.—A covered beneficiary, with 
respect to care provided to such beneficiary in facilities of the 
uniformed services under a sharing agreement entered into under 
subsection (a), shall pay— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3895 
"(1) in the case of a dependent, the charges prescribed by 
section 1078 of this title; and 
10 USC 1078. 
"(2) in the case of a member or former member entitled to 
retired or retainer pay, the charges prescribed by section 1075 of 
this title. 
10 USC 1075. 
"§ 1097. Contracts for medical care for retirees, dependents, and 10 USC 1097. 
survivors: alternative delivery of health care 
"(a) IN GENERAL.—The Secretary of Defense, after consulting with 
the other administering Secretaries, may contract for the delivery of 
health care to which covered beneficiaries are entitled under this 
chapter. The Secretary may enter into a contract under this section 
with any of the following: 
"(1) Health maintenance organizations. 
"(2) Preferred provider organizations. 
"(3) Individual providers, individual medical facilities, or 
insurers. 
"(4) Consortiums of such providers, facilities, or insurers. 
"(b) SCOPE OF COVERAGE UNDER HEALTH CARE PLANS.—A contract 
entered into under this section may provide for the delivery o
f
— 
"(1) selected health care services; 
"(2) total health care services for selected covered bene-
ficiaries; or 
"(3) total health care services for all covered beneficiaries who 
reside in a geographical area designated by the Secretary. 
' 
'' 
"(c) CHARGES FOR HEALTH CARE.—The Secretary of Defense may 
prescribe by regulation a premium, deductible, copayment, or other 
charge for health care provided under this section. 
"§ 1098. Incentives for participation in cost-effective health care 
10 USC 1098. 
plans 
"(a) WAIVER OF LIMITATIONS AND COPAYMENTS.—Subject to subsec- 
Contracts. 
tions (b) and (c), the Secretary of Defense, with respect to any plan 
''^ 
contracted for under the authority of section 1079 or 1086 of this 
title, may waive, in whole or in part— 
10 USC 1079, 
"(1) any limitation set out in the second sentence of section 1086. 
1079(a) ofthis title; or 
"(2) any requirement for payment by the patient under sec-
tion 1079(b) or 1086(b) of this title. 
"(b) DETERMINATION AND REPORT.—(1) Subject to paragraph (3), 
the Secretary may waive a limitation or requirement as authorized 
by subsection (a) if the Secretary determines that during the period 
tsst 
of the waiver such a plan will— 
"(A) be less costly to the Government than a plan subject to 
w 
such limitations or payment requirements; or 
"(B) provide better services than those provided by a plan 
subject to such limitations or payment requirements at no 
additional cost to the Government. 
"(2) The Secretary shall submit to the Committees on Armed 
Reports. 
Services of the Senate and House of Representatives a report with 
respect to a waiver under paragraph (1), including a comparison of 
costs of and benefits available under— 
"(A) a plan with respect to which the limitations and payment 
requirements are waived; and 
"(B) a plan with respect to which there is no such waiver 
"(3) A waiver under paragraph (1) may not take effect until the 
end of the 180-day period beginning on the date on which the 
^^-•\qt^ 0 - 89 - 15 : QL. 3 Part5 
100 STAT. 3896 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 u s e 1099. 
Contracts. 
'Wl 
10 use 1100. 
Contracts. 
10 u s e 1079, 
1086, 1092; ante, 
p. 3895. 
Secretary submits the report required by paragraph (2) with respect 
to such waiver. 
"§ 1099. Health care enrollment system 
^ c* 
"(a) ESTABLISHMENT OF SYSTEM.—The Secretary of Defense, after 
consultation with the other administering Secretaries, shall estab-
lish a system of health care enrollment for covered beneficiaries 
who reside in the United States. 
"(b) DESCRIPTION OF SYSTEM.—Such system shall— 
"(1) allow covered beneficiaries to elect a health care plan 
from eligible health care plans designated by the Secretary of 
Defense; or 
"(2) if necessary in order to ensure full use of facilities of the 
uniformed services in a geographical area, assign covered bene-
ficiaries who reside in such area to such facilities. 
"(c) HEALTH CARE PLANS AVAILABLE UNDER SYSTEM.—A health 
care plan designated by the Secretary of Defense under the system 
described in subsection (a) shall provide all health care to which a 
covered beneficiary is entitled under this chapter. Such a plan may 
consist of any of the following: 
"(1) Use of facilities of the uniformed services. 
"(2) The Civilian Health and Medical Program of the Uni-
formed Services. 
"(3) Any other health care plan contracted for by the Sec-
retary of Defense. 
"(4) Any combination of the plans described in paragraphs (1), 
(2), and (3). 
"(d) REGULATIONS.—The Secretary of Defense, after consultation 
with the other administering Secretaries, shall prescribe regulations 
to carry out this section. 
"§ 1100. Military Health Care Account 
"(a) ESTABLISHMENT OF ACCOUNT.—(1) There is hereby established 
in the Department of Defense an account to be known as the 
'Military Health Care Account'. All sums appropriated to carry out 
the functions of the Secretary of Defense with respect to the Civilian 
Health and Medical Program of the Uniformed Services shall be 
appropriated to the account. 
"(2) Amounts appropriated to the account shall remain available 
until obligated or expended under subsection (b) or (c). 
"(b) OBUGATION OF AMOUNTS FROM ACCOUNT BY SECRETARY OF 
DEFENSE.—The Secretary of Defense may obligate or expend funds 
from the account for purposes of entering into a contract under 
section 1079, 1086, 1092, or 1097 of this title to the extent amounts 
are available in the account. 
"(c) ALLOCATION OF AMOUNTS IN ACCOUNT FOR PROVISION OF MEDI-
CAL CARE BY SERVICE SECRETARIES.—(1) The Secretary of a military 
department shall, before the beginning of a fiscal year quarter, 
provide to the Secretary of Defense an estimate of the amounts 
necessary to pay for charges for benefits under the program for 
covered beneficiaries under the jurisdiction of the Secretary for that 
quarter. 
"(2) The Secretary of Defense shall, subject to amounts provided in 
advance in appropriation Acts, make available to each Secretary of 
a military department the amount from the account that the Sec-
retary of Defense determines is necessary to pay for charges for 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3897 
benefits under the program for covered beneficiaries under the 
jurisdiction of such Secretary for that quarter. 
"(d) EXPENDITURE OF AMOUNTS FROM ACCOUNT BY SERVICE SEC-
RETARIES.—The Secretary of a military department shall provide 
medical and dental care to covered beneficiaries under the jurisdic-
tion of the Secretary for a fiscal year quarter from amounts appro-
priated to the Secretary and from amounts from the account made 
available for that quarter to the Secretary by the Secretary of 
Defense. If the Secretary of a military department exhausts the 
amounts from the account made available to the Secretary for a 
fiscal year quarter, the Secretary shall transfer to the account from 
amounts appropriated to the Secretary an amount sufficient to 
provide medical and dental care to covered beneficiaries under the 
jurisdiction of the Secretary for the remainder of the fiscal year 
quarter. 
• ;> * 
"(e) REGULATIONS.—The Secretary of Defense shall prescribe regu-
lations to carry out this section. 
- ''^^ 
"(f) DEFINITIONS.—In this section: 
,. 
^'i/ft. 
"(1) The term 'account' means the Military Health Care 
Account established in subsection (a). 
"(2) The term 'program' means the Civilian Health and Medi-
cal Program of the Uniformed Services. 
"§ 1101. Diagnosis-related groups 
10 USC 1101. 
"(a) ESTABLISHMENT OF DRGS.—The Secretary of Defense, after 
consultation with the other administering Secretaries, shall estab-
lish by regulation the use of diagnosis-related groups as the primary 
criteria for allocation of resources to facilities of the uniformed 
services. 
V-. 
'• >: 
"(b) EXCEPTION FOR MOBILIZATION MISSIONS.—Diagnosis-related 
groups shall not be used to allocate resources to the facilities of the 
uniformed services to the extent that such resources are required by 
such facilities for mobilization missions. 
"(c) CONTENT OF REGULATIONS.—(1) Such regulations shall estab-
lish a system of diagnosis-related groups similar to the system 
established under section 1886(d)(4) of the Social Security Act (42 
U.S.C. 1395ww(d)(4)). Such regulations shall include the following: 
( 
•?. 
j 
"(1) A classification of inpatient treatments by diagnosis-
related groups and a similar classification of outpatient 
treatment. 
"(2) A methodology for classifying specific treatments within 
such groups. 
"(3) An appropriate weighting factor for each such diagnosis-
related group which reflects the relative resources used by a 
facility of a uniformed service with respect to treatments classi-
fied within that group compared to treatments classified within 
other gi'oups.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new items: 
"1096. Military-civilian health services partnership program. 
"1097. Contracts for medical care for retirees, dependents, and survivors: alternative 
delivery of health care. 
, . „ . 
"1098. Incentives for participation in cost-effective health care plans. 
"1099. Health care enrollment system. 
"1100. Military Health Care Account. 
r 
"1101. Diagnosis-related groups.". 
-«^g 
100 STAT. 3898 
PUBLIC LAW 99-661—NOV. 14, 1986 
(b) DEFINITIONS.—Section 1072 of title 10, United States Code, is 
amended— 
(1) by striking out " 'Uniformed services' means" in para-
graph (1) and inserting in lieu thereof "The term 'uniformed 
services' means"; 
(2) by striking out " 'Dependent', with respect to" in para-
• 
graph (2) and inserting in lieu thereof "The term 'dependent', 
with respect to"; 
(3) by striking out " 'Administering Secretaries' means" in 
paragraph (3) and inserting in lieu thereof "The term 'admin-
istering Secretaries' means"; and 
(4) by adding at the end the following new paragraphs: 
"(4) The term 'Civilian Health and Medical Program of the 
Uniformed Services' means the program authorized under sec-
10 use 1079, 
tions 1079 and 1086 of this title and includes contracts entered 
1086. 
into under section 1091 or 1097 of this title and demonstration 
10 use 1091, 
projects under section 1092 of this title. 
10 use 1092. 
'^^^ '^^^ term 'covered beneficiary' means a beneficiary under 
this chapter other than a beneficiary under section 1074(a) of 
10 use 1074. 
this title.". 
10 use 1099 
(c) REPORTS TO CONGRESS.—(1) Not later than July 1, 1987, the 
note. 
Secretary of Defense shall submit to Congress a report detailing— 
(A) any plans to establish or implement a system of health 
' 
' 
care enrollment 
(other than 
as required 
under 
section 
702(a)(2)(C)) under section 1099(a) of title 10, United States Code 
(as added by subsection (a)(1)); and 
(B) the plan of the Secretary for completing the implementa-
tion of such system. 
10 use 1100 
(2) The Secretary shall submit to Congress— 
note. 
(1) not later than May 1, 1987, a report on plans of the 
Secretary for establishing diagnosis-related groups for inpatient 
services under section 1100(a) of title 10, United States Code (as 
added by subsection (a)(1)); and 
(2) not later than May 1, 1988, a report on plans of the 
Secretary for establishing diagnosis-related groups for out-
patient services under such section. 
10 use 1099 
(d) EFFECTIVE DATES.—(1) Except as provided in paragraph (2), the 
note. 
Secretary of Defense shall prescribe regulations as required by 
section 1099(d) of title 10, United States Code (as added by subsec-
tion (a)(1)) to implement the system of health care enrollment for 
covered beneficiaries— 
(A) on October 1, 1987, with respect to— 
(i) covered beneficiaries included in the demonstration 
project required under section 702; and 
; 
(ii) facilities of the uniformed services located in the 
PC 
geographical area covered by the demonstration project; 
and 
•
r 
(B) not later than September 30, 1990, for all other covered 
beneficiaries and facilities of the uniformed services. 
(2) The Secretary may not assign covered beneficiaries to facilities 
of the uniformed services, as authorized by section 1099(b)(2) of such 
title (as added by subsection (a)(1)), before October 1,1990. 
Effective date. 
(3) Section 1100 of such title (as added by subsection (a)(1)) shall 
10 use 1100 
take effect on October 1, 1987. 
^°*?- 
(4) The Secretary of Defense shall prescribe regulations as 
note 
required by section 1101(a) of such title (as added by subsection 
(a)(1)) to take effect— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3899 
(A) in the case of inpatient treatments, after September 30, 
1987; and 
(B) in the case of outpatient treatments, after September 30, 
1988. 
10 use 1073 
note. 
Contracts. 
SEC. 702. CHAMPUS REFORM INITIATIVE 
(a) DEMONSTRATION PROJECT.—(1) The Secretary of Defense shall 
conduct a project designed to demonstrate the feasibility of improv-
ing the effectiveness of the Civilian Health and Medical Program of 
the Uniformed Services (CHAMPUS) through the competitive selec-
tion of contractors to financially underwrite the delivery of health 
care services under the program. 
(2) The demonstration project required by paragraph (1)— 
(A) shall begin not later than September 30, 1988, and con-
tinue for not less than one year; 
(B) shall include not more than one-third of covered bene-
ficiaries; and 
(C) shall include a health care enrollment system that meets 
the requirements specified in section 1099 of title 10, United 
States Code (as added by section 701(a)(1)). 
(3)(A) The Secretary shall submit to the Committees on Armed Reports 
Services of the Senate and House of Representatives a report on the 
development of the demonstration project required by paragraph (1). 
Such report shall include— 
(i) a description of the scope and structure of the project; 
(ii) an estimate of the costs of the care to be provided under 
the project; and 
(iii) a description of the health care enrollment system 
included in the project. 
(B) The report required by subparagraph (A) shall be submitted— 
(i) not later than 60 days before the initiation of the project, if 
the project is to be restricted to a contiguous area of the United 
States; or 
(ii) not later than 60 days before a solicitation for bids or 
proposals with respect to such project is issued, if the project 
will not be restricted to a contiguous area of the United States. 
(b) STUDY OF HEALTH CARE ALTERNATIVES.—(1) The demonstration 
project required by subsection (a)(1) shall include a study o
f
— 
(A) methods to guarantee the maintenance of competition 
among providers of health care to persons under the jurisdiction 
of the Secretary; 
(B) the merits of the use of a voucher system or a fee schedule 
for provision of health care to such persons; and 
(C) methods to guarantee that community hospitals are given 
equal consideration with other health care providers for provi-
sion of health care services under contracts with the Depart-
ment of Defense. 
(2) The Secretary shall submit to Congress a report discussing the 
matters evaluated in the study required by paragraph (1) before the 
end of the 90-day period beginning on the date of the enactment of 
this Act. 
(c) PHASED IMPLEMENTATION OF CHAMPUS REFORM INITIATIVE.— 
(1) The Secretary of Defense may proceed with implementation of 
the CHAMPUS reform initiative, to be carried out in two phases 
during a period of not less than two years, i
f
— 
Hospitals. 
Contracts. 
Reports. 
'Ji'jif 
100 STAT. 3900 
PUBLIC LAW 99-661—NOV. 14, 1986 
« » 
(A) the Secretary determines, based on the results of the 
demonstration project required by subsection (a)(1), that such 
I' initiative should be implemented; 
(B) not less than one year elapses after the date on which the 
,, J , , 
demonstration project required by subsection (a)(1) is initiated; 
Reports. 
' « 
(C) 90 days elapse after the date on which the Secretary 
submits to the Committees on Armed Services of the Senate and 
House of Representatives a report that includes— 
(i) a description of the results of the demonstration 
V . 
project; 
(ii) a description of any changes the Secretary intends to 
make in the initiative during the proposed implementation; 
h-t and 
(iii) a comparison of the costs of providing health care 
.,,. 
f
. under CHAMPUS with the costs of providing health care 
under the demonstration project and the estimated costs of 
providing health care under the CHAMPUS reform initia-
tive if fully implemented, 
(d) DEFINITIONS.—In this section: 
(1) The term "CHAMPUS reform initiative" means the 
competitive selection of contractors to financially underwrite 
the delivery of health care services under the Civilian Health 
and Medical Program of the Uniformed Services. 
(2) The term "Civilian Health and Medical Program of the 
Uniformed Services" has the meaning given such term in sec-
tion 1072(4) of title 10, United States Code (as added by section 
701(b)). 
It; 
(3) The term "covered beneficiary" has the meaning given 
such term in section 1072(5) of title 10, United States Code (as 
added by section 701(b)). 
SEC. 703. CHAMPUS CATCHMENT AREAS 
Section 1079(a)(7) of title 10, United States Code, is amended by 
striking out "pays for at least 75 percent of the services" and 
inserting in lieu thereof "provides primary coverage for the 
services". 
SEC. 704. MEDICAL INFORMATION SYSTEMS ACQUISITION 
U> 
(a) 
LiMiTATipN 
ON 
ACQUISITION 
OF 
MEDICAL 
INFORMATION 
SYSTEM,—(1) The Secretary of Defense may not acquire a medical 
information system for use in all military medical treatment facili-
ties until— 
(A) the testing required by subsection (b) is completed; 
(B) the report required by subsection (d)(2) is submitted; and 
(C) 30 days elapse after the Secretary submits to the Commit-
tees on Armed Services of the Senate and House of Representa-
tives the report described in paragraph (2). 
(2) The report required by paragraph (1)(B) shall be submitted 
after the completion of the testing required by subsection (b) and 
shall include— 
(A) an evaluation of the competing medical information sys-
tems, based on the extended benchmark test, operational test, 
^ and incremental price and delivery schedules described in 
subsection (b); 
(B) an evaluation of the hospital management computer 
system of the Veterans' Administration known as the Veterans' 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3901 
Administration Decentralized Hospital Computer Program 
based on the demonstration project described in subsection (c); 
and 
(C) the decision of the Secretary with respect to acquiring a 
medical information system for use in all military medical 
treatment facilities. 
(b) TESTING OF MEDICAL INFORMATION SYSTEMS.—(1) The Secretary 
shall carry out an extended benchmark test of competing medical 
information systems using the testing specifications described in 
Solicitation No. DAHC 26-85-R-0009 (relating to acquisition of the 
cf,, , ; 
Composite Health Care System). 
(2) The Secretary shall carry out an operational test of competing 
medical information systems. Such test shall— 
(A) be conducted in medium-to-large military medical treat-
ment facilities; and 
(B) shall be not less than nine months and not more than one 
year in duration. 
(3) Each vendor that submits a medical information system for 
testing under paragraphs (1) and (2) shall provide to the Secretary 
incremental price and delivery schedules for each function described 
in I, II, IID, and III of Solicitation No. DAHC26-85-R-0009. Such 
schedules shall be provided before the end of the one-year period 
beginning on the date on which the operational test described in 
paragraph (2) is initiated. 
(c) VETERANS' ADMINISTRATION DECENTRALIZED HOSPITAL COM-
PUTER PROGRAM.—(1) The Secretary shall continue to carry out the 
demonstration project required by section 1203 of the Department of 
Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 718), 
with respect to the Veterans' Administration Decentralized Hospital 
Computer Program. Such project shall be completed not later than 
October 1,1987. 
(2) Section 1203(c) of the Department of Defense Authorization 
Act, 1986, is amended— 
(A) by striking out "available"; and 
(B) by inserting "that are available at least three months 
before the date on which the demonstration project is expected 
to be completed" after "software)". 
(d) EVALUATION AND REPORT BY COMPTROLLER GENERAL.—The 
Comptroller General shall— 
(1) monitor the testing required by subsection O
t
>
)
; and 
(2) submit to the Committees on Armed Services of the Senate 
and House of Representatives a report evaluating such testing 
before the end of the 30-day period beginning on the date that 
such testing is completed. 
(e) DEFINITIONS.—In this section: 
(1) The term "medical information system" means a com-
puter-based information system that— 
(A) receives data normally recorded concerning patients; 
(B) creates and maintains from such data a computerized 
medical record for each patient; and 
(C) provides access to data for patient care, hospi-
tal administration, research, and medical care resource 
planning. 
(2) The term "military medical treatment facility" means a 
hospital, medical center, or clinic under the jurisdiction of the 
Secretary of a military department or the Secretary of Defense. 
100 STAT. 3902 
PUBLIC LAW 99-661—NOV. 14, 1986 
^ c 
(3) The term "medium-to-large military medical treatment 
( 
facility" means a military medical treatment facility with 150 
or more beds. 
., .^. 
(4) The term "Secretary" means the Secretary of Defense. 
SEC. 705. CONFIDENTIALITY OF MEDICAL QUALITY ASSURANCE RECORDS 
(a) IN GENERAL.—Chapter 55 of title 10, United States Code (as 
amended by section 701), is further amended by adding at the end 
the following new section: 
10 use 1102. 
"§1102. Confidentiality of medical quality assurance records: 
qualified immunity for participants 
"(a) CONFIDENTIALITY OF RECORDS.—Medical quality assurance 
records created by or for the Department of Defense as part of a 
medical quality assurance program are confidential and privileged. 
Such records may not be disclosed to any person or entity, except as 
provided in subsection (c). 
"(b) PROHIBITION ON DISCLOSURE AND TESTIMONY.—(1) No part of 
any medical quality assurance record described in subsection (a) 
may be subject to discovery or admitted into evidence in any judicial 
or administrative proceeding, except as provided in subsection (c). 
"(2) A person who reviews or creates medical quality assurance 
records for the Department of Defense or who participates in any 
proceeding that reviews or creates such records may not be per-
mitted or required to testify in any judicial or administrative 
proceeding with respect to such records or with respect to any 
finding, recommendation, evaluation, opinion, or action taken by 
such person or body in connection with such records except as 
provided in this section. 
"(c) AUTHORIZED DISCLOSURE AND TESTIMONY.—(1) Subject to para-
graph (2), a medical quality assurance record described in subsection 
(a) may be disclosed, and a person referred to in subsection (b) may 
give testimony in connection with such a record, only as follows: 
"(A) To a Federal executive agency or private organization, if 
such medical quality assurance record or testimony is needed by 
p 
such agency or organization to perform licensing or accredita-
tion functions related to Department of Defense health care 
facilities or to perform monitoring, required by law, of Depart-
stil ment of Defense health care facilities. 
"(B) To an administrative or judicial proceeding commenced 
by a present or former Department of Defense health care 
provider concerning the termination, suspension, or limitation 
I 
of clinical privileges of such health care provider. 
i. 
"(C) To a governmental board or agency or to a professional 
health care society or organization, if such medical quality 
assurance record or testimony is needed by such board, agency, 
ni'^: society, or organization to perform licensing, credentialing, or 
the monitoring of professional standards with respect to any 
health care provider who is or was a member or an employee of 
the Department of Defense. 
"(D) To a hospital, medical center, or other institution that 
provides health care services, if such medical quality assurance 
-. 
record or testimony is needed by such institution to assess the 
professional qualifications of any health care provider who is or 
was a member or employee of the Department of Defense and 
who has applied for or been granted authority or employment to 
provide health care services in or on behalf of such institution. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3903 
"(E) To an officer, employee, or contractor of the Department 
of Defense who has a need for such record or testimony to 
perform official duties. 
"(F) To a criminal or civil law enforcement agency or 
instrumentality charged under applicable law with the protec-
tion of the public health or safety, if a qualified representative 
of such agency or instrumentality makes a written request that 
such record or testimony be provided for a purpose authorized 
by law. 
"(G) In an administrative or judicial proceeding commenced 
by a criminal or civil law enforcement agency or instrumental-
ity referred to in subparagraph (F), but only with respect to the 
subject of such proceeding, 
"(2) With the exception of the subject of a quality assurance 
action, the identity of any person receiving health care services from 
the Department of Defense or the identity of any other person 
associated with such department for purposes of a medical quality 
assurance program that is disclosed in a medical quality assurance 
record described in subsection (a) shall be deleted from that record 
or document before any disclosure of such record is made outside the 
Department of Defense. Such requirement does not apply to the 
release of information pursuant to section 552a of title 5, United 
States Code. 
"(d) DISCLOSURE FOR CERTAIN PURPOSES.—(1) Nothing in this sec-
tion shall be construed as authorizing or requiring the withholding 
from any person or entity aggregate statistical information regard-
ing the results of Department of Defense medical quality assurance 
programs. 
"(2) Nothing in this section shall be construed as authority to 
withhold any medical quality assurance record from a committee of 
either House of Congress, any joint committee of Congress, or the 
General Accounting Office if such record pertains to any matter 
within their respective jurisdictions. 
"(e) PROHIBITION ON DISCLOSURE OF RECORD OR TESTIMONY.—A 
person or entity having possession of or access to a record or 
j . ' 
testimony described by this section may not disclose the contents of 
such record or testimony in any manner or for any purpose except 
as provided in this section. 
"(f) EXEMPTION FROM FREEDOM OF INFORMATION ACT.—Medical 
quality assurance records described in subsection (a) may not be 
a 
made available to any person under section 552 of title 5. 
"(g) LIMITATION ON CIVIL LIABILITY.—A person who participates in 
or provides information to a person or body that reviews or creates 
medical quality assurance records described in subsection (a) shall 
not be civilly liable for such participation or for providing such 
information if the participation or provision of information was in 
good faith based on prevailing professional standards at the time the 
medical quality assurance program activity took place. 
"(h) APPLICATION TO INFORMATION IN CERTAIN OTHER RECORDS.— 
Nothing in this section shall be construed as limiting access to the 
information in a record created and maintained outside a medical 
quality assurance program, including a patient's medical records, on 
the grounds that the information was presented during meetings of 
a review body that are part of a medical quality assurance program. 
"(i) REGULATIONS.—The Secretary of Defense shall prescribe regu-
lations to implement this section. 
"(j) DEFINITIONS.—In this section: 
100 STAT. 3904 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(1) The term 'medical quality assurance program' means any 
activity carried out before, on, or after the date of the enact-
ment of this section by or for the Department of Defense to 
assess the quality of medical care, including activities conducted 
by individuals, military medical or dental treatment facility 
committees, or other review bodies responsible for quality assur-
ance, credentials, infection control, patient care assessment 
(including treatment procedures, blood, drugs, and thera-
peutics), medical records, health resources management review 
and identification and prevention of medical or dental incidents 
and risks. 
"(2) The term 'medical quality assurance record' means the 
proceedings, records, minutes, and reports that emanate from 
quality assurance program activities described in paragraph (1) 
and are produced or compiled by the Department of Defense as 
part of a medical quality assurance program. 
"(3) The term 'health care provider' means any military or 
civilian health care professional who, under regulations of a 
military department, is granted clinical practice privileges to 
provide health care services in a military medical or dental 
treatment facility or who is licensed or certified to perform 
health care services by a governmental board or agency or 
professional health care society or organization. 
"(k) PENALTY.—Any person who willfully discloses a medical qual-
ity assurance record other than as provided in this section, knowing 
that such record is a medical quality assurance record, shall be fined 
not more than $3,000 in the case of a first offense and not more than 
$20,000 in the case of a subsequent offense.". 
(2) The table of sections at the beginning of such chapter (as 
amended by sections 701 and 702) is amended by adding at the end 
the following new item: 
"1102. Confidentiality of medical quality assurance records: qualified immunity for 
participants.". 
10 use 1102 
(b) EFFECTIVE DATE.—Section 1102 of title 10, United States Code, 
note. 
as added by subsection (a), shall apply to all records created before, 
on, or after the date of the enactment of this Act by or for the 
Department of Defense as part of a medical quality assurance 
program. 
10 use 1074 
(c) RESTRICTION ON USE OF INFORMATION OBTAINED DURING CER-
'^ote. 
-p^jjj 
EPIDEMIOLOGIC-ASSESSMENT 
INTERVIEWS.—(1) 
Information 
obtained by the Department of Defense during or as a result of an 
epidemiologic-assessment interview with a serum-positive member 
of the Armed Forces may not be used to support any adverse 
personnel action against the member. 
(2) For purposes of paragraph (1): 
(A) The term "epidemiologic-assessment interview" means 
questioning of a serum-positive member of the Armed Forces for 
purposes of medical treatment or counseling or for epidemio-
logic or statistical purposes. 
(B) The term "serum-positive member of the Armed Forces" 
means a member of the Armed Forces who has been identified 
^ 
as having been exposed to a virus associated with the acquired 
•'<• immune deficiency syndrome. 
*i - 
(C) The term "adverse personnel action" includes— 
(i) a court-martial; 
(ii) non-judicial punishment; 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3905 
t 
iK i 
(iii) involuntary separation (other than for medical rea-
sons); 
(iv) administrative or punitive reduction in grade; 
(v) denial of promotion; 
(vi) an unfavorable entry in a personnel record; 
(vii) a bar to reenlistment; and 
(viii) any other action considered by the Secretary con-
cerned to be an adverse personnel action. 
SEC. 706. USE OF PUBLIC HEALTH SERVICE HOSPITALS AS FACILITIES OF 
THE UNIFORMED SERVICES 
Section 1252(e) of the Department of Defense Authorization Act, 
1984 (42 U.S.C. 248d(e)), is amended by striking out "December 31, 
1987" in the first sentence and inserting in lieu thereof "Decem-
ber 31, 1988". 
SEC. 707. LIMITATION ON DENTAL INSURANCE PROGRAM 
(a) AMOUNT OF PREMIUM.—Subsection (b)(2) of section 1076a of 
title 10, United States Code, is amended to read as follows: 
"(2) A member enrolled in a plan under this section shall pay a 
v:: 
: T» » 
premium of not more than $10 per month for the member and the 
family of the member.". 
(b) ANNUAL COST OF PROGRAM.—Such section is further amended 
by adding at the end the following new subsection; 
"(h) The Secretary of Defense may not spend more than 
$105,000,000 (in fiscal year 1986 dollars) for a plan under this section 
during any fiscal year.". 
(c) AUTHORIZATION OF APPROPRIATIONS.—Of amounts authorized to 
be appropriated for fiscal year 1987 for Operations and Mainte-
nance, Defense Agencies, not more than $18,000,000 may be used for 
the purpose of providing a dental insurance program under section 
1076a of title 10, United States Code (as amended by this section). 
TITLE VIII—UNIFORM CODE OF MILITARY JUSTICE 
Military Justice 
Amendments of 
SEC. 801. SHORT TITLE; REFERENCES TO UNIFORM CODE OF MILITARY 
JUSTICE 
1986. 
10 u s e 801 note. 
(a) SHORT TITLE.—This title may be cited as the "Military Justice 
Amendments of 1986". 
(b) REFERENCES TO UCMJ.—Except as otherwise expressly pro-
vided, whenever in this title an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of chapter 47 of title 10, United States Code (the Uniform 
10 USC 801 et 
Code of Military Justice). 
seq. 
SEC. 802. DEFENSE OF LACK OF MENTAL RESPONSIBILITY 
10 USC 850a. 
(a) IN GENERAL.—(1) Subchapter VII is amended by inserting after 
section 850 (article 50) the following new section (article): 
"§ 850a. Art. 50a. Defense of lack of mental responsibility 
"(a) It is an affirmative defense in a trial by court-martial that, at 
the time of the commission of the acts constituting the offense, the 
accused, as a result of a severe mental disease or defect, was unable 
to appreciate the nature and quality or the wrongfulness of the acts. 
Mental disease or defect does not otherwise constitute a defense. 
100 STAT. 3906 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(b) The accused has the burden of proving the defense of lack of 
mental responsibility by clear and convincing evidence. 
"(c) Whenever lack of mental responsibility of the accused with 
respect to an offense is properly at issue, the military judge, or the 
president of a court-martial without a military judge, shall instruct 
the members of the court as to the defense of lack of mental 
responsibility under this section and charge them to find the 
accused— 
"(1) guilty; 
"(2) not guilty; or 
'-
"(3) not guilty only by reason of lack of mental responsibility. 
"(d) Subsection (c) does not apply to a court-martial composed of a 
military judge only. In the case of a court-martial composed of a 
military judge only, whenever lack of mental responsibility of the 
accused with respect to an offense is properly at issue, the military 
judge shall find the accused— 
"(Dguilty; 
"(2) not guilty; or 
"(3) not guilty only by reason of lack of mental responsibility. 
10 use 852. 
"(e) Notwithstanding the provisions of section 852 of this title 
(article 52), the accused shall be found not guilty only by reason of 
lack of mental responsibility if— 
"(1) a majority of the members of the court-martial present at 
the time the vote is taken determines that the defense of lack of 
mental responsibility has been established; or 
"(2) in the case of a court-martial composed of a military 
judge only, the military judge determines that the defense of 
lack of mental responsibility has been established.". 
(2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 850 (article 
50) the following new item: 
"850a. 50a. Defense of lack of mental responsibility.". 
10 use 850a 
(b) EFFECTIVE DATE.—Section 850a of title 10, United States Code, 
"ote. 
as added by subsection (a)(1), shall apply only to offenses committed 
on or after the date of the enactment of this Act. 
SEC. 803. APPLICATION FOR ENLISTED MEMBERS TO SERVE ON COURT-
MARTIAL 
(a) IN GENERAL.—Section 825(c)(1) (article 25(c)(1)) is amended by 
striking out "has requested in writing" and inserting in lieu thereof 
"has requested orally on the record or in writing". 
10 use 825 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply only to a case in which arraignment is completed on or 
after the effective date of this title. 
SEC. 804. COURT-MARTIAL JURISDICTION OVER RESERVE MEMBERS 
(a) JURISDICTION OVER RESERVE MEMBERS UNDER CERTAIN CIR-
CUMSTANCES.—(1) Paragraph (3) of section 802(a) (article 2(a)) is 
amended to read as follows: 
"(3) Members of a reserve component while on inactive-duty 
training, but in the case of members of the Army National 
Guard of the United States or the Air National Guard of the 
United States only when in Federal service.". 
(2) Section 802 (article 2) is further amended by adding at the end 
the following new subsection: K 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3907 
"(dXD A member of a reserve component who is not on active duty 
and who is made the subject of proceedings under section 815 
(article 15) or section 830 (article 30) with respect to an offense 
against this chapter may be ordered to active duty involuntarily for 
the purpose o
f
— 
"(A) investigation under section 832 of this title (article 32); 
^
j 
"(B) trial by court-martial; or 
"(C) nonjudicial punishment under section 815 of this title 
(article 15). 
"(2) A member of a reserve component may not be ordered to 
active duty under paragraph (1) except with respect to an offense 
committed while the member was— 
"(A) on active duty; or 
"(B) on inactive-duty training, but in the case of members of 
the Army National Guard of the United States or the Air 
National Guard of the United States only when in Federal 
service. 
"(3) Authority to order a member to active duty under paragraph 
(1) shall be exercised under regulations prescribed by the President. 
"(4) A member may be ordered to active duty under paragraph (1) 
only by a person empowered to convene general courts-martial in a 
regular component of the armed forces. 
"(5) A member ordered to active duty under paragraph (1), unless 
the order to active duty was approved by the Secretary concerned, 
may not— 
"(A) be sentenced to confinement; or 
"(B) be required to serve a punishment consisting of any 
restriction on liberty during a period other than a period of 
inactive-duty training or active duty (other than active duty 
ordered under paragraph (1)).". 
(b) CONTINUED AMENABILITY TO JURISDICTION.—Section 803 (article 
3) is amended by adding at the end the following new subsection: 
"(d) A member of a reserve component who is subject to this 
chapter is not, by virtue of the termination of a period of active duty 
or inactive-duty training, relieved from amenability to the jurisdic-
tion of this chapter for an offense against this chapter committed 
during such period of active duty or inactive-duty training,". 
(c) AUTHORITY TO ADMINISTER OATHS.—Section 936 (article 136) is 
amended by inserting "or performing inactive-duty training" in 
subsections (a) and (b) after "active duty". 
(d) ARTICLES TO BE EXPLAINED.—The text of section 937 (article 
137) is amended to read as follows: 
"(a)(1) The sections of this title (articles of the Uniform Code of 
Military Justice) specified in paragraph (3) shall be carefully 
explained to each enlisted member at the time of (or within six days 
after)— 
"(A) the member's initial entrance on active duty; or 
"(B) the member's initial entrance into a duty status with a 
reserve component. 
"(2) Such sections (articles) shall be explained again— 
"(A) after the member has completed six months of active 
duty or, in the case of a member of a reserve component, after 
the member has completed basic or recruit training; and 
"(B) at the time when the member reenlists. 
"(3) This subsection applies with respect to sections 802, 803, 807-
815, 825, 827, 831, 837, 838, 855, 877-934, and 937-939 of this title 
(articles 2, 3, 7-15, 25, 27, 31, 37, 38, 55, 77-134, and 137-139). 
100 STAT. 3908 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(b) The text of the Uniform Code of Military Justice and of the 
regulations prescribed by the President under such Code shall be 
made available to a member on active duty or to a member of a 
reserve component, upon request by the member, for the member's 
personal examination.". 
10 use 802 note. 
(e) EFFECTIVE DATE,—The amendments made by subsections (a) 
and (b) shall apply only to an offense committed on or after the 
effective date of this title. 
SEC. 805. STATUTE OF LIMITATIONS 
; 
i 
;
U 
(a) REVISION OF STATUTES OF LIMITATION.—Subsections (a), (b), and 
(c) of section 843 (article 43) are amended to read as follows: 
"(a) A person charged with absence without leave or missing 
movement in time of war, or with any offense punishable by death, 
may be tried and punished at any time without limitation. 
"(b)(1) Except as otherwise provided in this section (article), a 
person charged with an offense is not liable to be tried by court-
martial if the offense was committed more than five years before the 
receipt of sworn charges and specifications by an officer exercising 
summary court-martial jurisdiction over the command. 
"(2) A person charged with an offense is not liable to be punished 
under section 815 of this title (article 15) if the offense was commit-
ted more than two years before the imposition of punishment. 
"(c) Periods in which the accused is absent without authority or 
fleeing from justice shall be excluded in computing the period of 
limitation prescribed in this section (article).". 
(b) TIME FOR REINSTATEMENT OF CHARGES.—Such section is further 
amended by adding at the end the following new subsection: 
"(g)(1) If charges or specifications are dismissed as defective or 
insufficient for any cause and the period prescribed by the 
applicable statute of limitations— 
"(A) has expired; or 
"(B) will expire within 180 days after the date of dismissal of 
the charges and specifications, 
trial and punishment under new charges and specifications are not 
barred by the statute of limitations if the conditions specified in 
paragraph (2) are met. 
"(2) The conditions referred to in paragraph (1) are that the new 
charges and specifications must— 
"(A) be received by an officer exercising summary court-
martial jurisdiction over the command within 180 days after the 
dismissal of the charges or specifications; and 
"(B) allege the same acts or omissions that were alleged in the 
dismissed charges or specifications (or allege acts or omissions 
that were included in the dismissed charges or specifications)." 
10 use 843 note. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to an offense committed on or after the date of the enactment 
of this Act. 
SEC. 806. TIME FOR DEFENSE POST-TRIAL SUBMISSIONS 
(a) SIMPLIFICATION OF TIME FOR SUBMISSION.—Subsection (b) of 
section 860 (article 60) is amended— 
(1) by striking out paragraph (3); 
(2) by redesignating paragraph (2) as paragraph (3) and insert-
ing a comma in that paragraph after "case"; and 
(3) by striking out paragraph (1) and inserting in lieu thereof 
the following: 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3909 
"(1) The accused may submit to the convening authority matters 
for consideration by the convening authority with respect to the 
findings and the sentence. Except in a summary court-martial case, 
. 
such a submission shall be made within 10 days after the accused 
has been given an authenticated record of trial and, if applicable, 
the recommendation of the staff judge advocate or legal officer 
under subsection (d). In a summary court-martial case, such a 
submission shall be made within seven days after the sentence is 
announced. 
"(2) If the accused shows that additional time is required for the 
accused to submit such matters, the convening authority or other 
person taking action under this section, for good cause, may extend 
the applicable period under paragraph (1) for not more than an 
additional 20 days.". 
(b) RECOMMENDATIONS OF STAFF JUDGE ADVOCATE.—Subsection 
(cX2) of such section is amended by striking out "and, if applicable, 
under subsection (d),". 
(c) CONFORMING AMENDMENTS.—Subsection (d) of such section is 
amended— 
(1) in the third sentence, by striking out "who shall have five 
days from the date of receipt in which to submit any matter in 
response" and inserting in lieu thereof "who may submit any 
matter in response under subsection (b)"; and 
(2) by striking out the fourth sentence. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
10 USC 860 note, 
apply in cases in which the sentence is adjudged on or after the 
effective date of this title. 
SEC. 807. DETAIL OF JUDGE ADVOCATES 
(a) REPRESENTATION OF UNITED STATES INTERESTS.—Section 806 
(article 6) is amended by adding at the end the following new 
subsection: 
"{d)(l) A judge advocate who is assigned or detailed to perform the 
functions of a civil office in the Government of the United States 
under section 973(b)(2)(B) of this title may perform such duties as 10 USC 973. 
may be requested by the agency concerned, including representation 
of the United States in civil and criminal cases. 
"(2) The Secretary of Defense, and the Secretary of Transportation 
Regulations, 
with respect to the Coast Guard when it is not operating as a service 
in the Navy, shall prescribe regulations providing that reimburse-
ment may be a condition of assistance by judge advocates assigned 
or detailed under section 973(b)(2)(B) of this title.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a)— 10 USC 806 note. 
(1) shall take effect on the date of the enactment of this Act; 
and 
(2) may not be construed to invalidate an action taken by a 
judge advocate, pursuant to an assignment or detail under 
section 973(b)(2)(B) of title 10, United States Code, before the 
date of the enactment of this Act. 
SEC. 808. EFFECTIVE DATE 
10 USC 802 note. 
Except as provided in sections 802(b), 805(c), and 807(b), this title 
10 USC 802, 805, 
and the amendments made by this title shall take effect on the 807. 
earlier o
f
— 
(1) the last day of the 120-day period beginning on the date of 
the enactment of this Act; or 
100 STAT. 3910 
PUBLIC LAW 99-661—NOV. 14, 1986 
(2) the date specified in an Executive order for such amend-
ments to take effect. 
TITLE IV—PROCUREMENT POLICY REFORM 
SEC. 900. SHORT TITLE 
Defense 
Acquisition 
Improvement 
Act of 1986. 
„ , , . . , 
, 
. 
, 
, 
<.T^ ^ 
/ 
. . . 
^ 
10 use 101 note. 
This title may be cited as the Defense Acquisition Improvement 
Act of 1986". 
:]»8i 
•jeH 
Contracts. 
PART A—MANAGEMENT OF THE ACQUISITION PROCESS 
SEC. 9
0
1
. 
DUTIES 
AND 
PRECEDENCE 
OF 
UNDER 
SECRETARY 
OF 
DEFENSE 
FOR 
ACQUISITION 
Section 133 of title 10, United States Code (as redesignated by 
section 101(a) of the Gold 
water-Nichols Department of Defense 
Reorganization Act of 1986 (Public Law 99-433)), is amended to read 
as follows: 
"§ 133. Under Secretary of Defense for Acquisition 
"(a) There is an Under Secretary of Defense for Acquisition, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate. The Under Secretary shall be appointed 
from among persons who have an extensive management back-
ground in the private sector. 
"(b) Subject to the authority, direction, and control of the Sec-
retary of Defense, the Under Secretary of Defense for Acquisition 
shall perform such duties and exercise such powers relating to 
acquisition as the Secretary of Defense may prescribe, including— 
"(1) supervising Department of Defense acquisition; 
^ 
"(2) establishing policies for acquisition (including procure-
ment, research and development, logistics, developmental test-
ing, and contract administration) for all elements of the Depart-
ment of Defense; 
' 
"(3) establishing policies of the Department of Defense for 
maintenance of the defense industrial base of the United States; 
t and 
"(4) the authority to direct the Secretaries of the military 
departments and the heads of all other elements of the Depart-
ment of Defense with regard to matters for which the Under 
Secretary has responsibility. 
, "(c) The Under Secretary— 
"(1) is the senior procurement executive for the Department 
of Defense for the purposes of section 16(3) of the Office of 
; 
Federal Procurement Policy Act (41 U.S.C. 414(3)); 
'^ 
"(2) is the Defense Acquisition Executive for purposes of 
regulations and procedures of the Department providing for a 
^ 
Defense Acquisition Executive; and 
"(3) to the extent directed by the Secretary, exercises overall 
' 
supervision of all personnel (civilian and military) in the Office 
of the Secretary of Defense with regard to matters for which the 
Under Secretary has responsibility, unless otherwise provided 
by law. 
"(d)(1) The Under Secretary shall prescribe policies to ensure that 
audit and oversight of contractor activities are coordinated and 
carried out in a manner to prevent duplication by different elements 
of the Department. 
"(2) In carrying out this subsection, the Under Secretary shall 
consult with the Inspector General of the Department of Defense. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3911 
"(3) Nothing in this subsection shall affect the authority of the 
Inspector General of the Department of Defense to establish audit 
policy for the Department of Defense under the Inspector General 
Act of 1978 and otherwise to carry out the functions of the Inspector 
5 USC app. 
General under that Act. 
"(e)(1) With regard to all matters for which he has responsibility 
by law or by direction of the Secretary of Defense, the Under 
Secretary of Defense for Acquisition takes precedence in the Depart-
ment of Defense after the Secretary of Defense and the Deputy 
Secretary of Defense. 
"(2) With regard to all matters other than matters for which he 
has responsibility by law or by direction of the Secretary of Defense, 
;. 
„ 
the Under Secretary takes precedence in the Department of Defense 
after the Secretary of Defense, the Deputy Secretary of Defense, and 
the Secretaries of the military departments.". 
SEC. 902. ESTABLISHMENT OF POSITION OF DEPUTY UNDER SECRETARY 
OF DEFENSE FOR ACQUISITION 
(a) ESTABLISHMENT OF POSITION.—(1) Chapter 4 of title 10, United 
States Code (as amended by title I of the Goldwater-Nichols Depart-
ment of Defense Reorganization Act of 1986 (Public Law 99-433)), is 
amended by inserting after section 133 the following new section: 
"§ 133a. Deputy Under Secretary of Defense for Acquisition 
lO USC I33a. 
"(a) There is a Deputy Under Secretary of Defense for Acquisition, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate. 
"(b) The Deputy Under Secretary of Defense for Acquisition shall 
assist the Under Secretary of Defense for Acquisition in the 
performance of his duties. The Deputy Under Secretary shall act for, 
and exercise the powers of, the Under Secretary when the Under 
Secretary is absent or disabled.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 133 the 
following new item: 
"133a. Deputy Under Secretary of Defense for Acquisition." 
(b) PAY GRADE.—Section 5314 of title 5, United States Code, is 
amended by adding at the end the following; 
"Deputy Under Secretary of Defense for Acquisition.". 
SEC. 903. OTHER SENIOR CIVILIAN ACQUISITION OFFICIALS 
(a) PRECEDENCE OF UNDER SECRETARY FOR POLICY.—Section 134 of 
title 10, United State Code (as designated by section 105 of the 
Goldwater-Nichols Department of Defense Reorganization Act of 
1986 (Public Law 99-433)), is amended by inserting "the Under 
Ante, p. 997. 
Secretary of Defense for Acquisition," in subsection (c) after 
"Deputy Secretary of Defense,". 
(b) FUNCTIONS AND GRADE OF DIRECTOR OF DEFENSE RESEARCH AND 
ENGINEERING.—(1) Section 135 of title 10, United States Code (as 
amended by section 105 of the Goldwater-Nichols Department of 
Defense Reorganization Act of 1986 (Public Law 99-433)), is 
Ante, p. 997. 
amended— 
(A) by striking out subsection (b) and inserting in lieu thereof 
the following: 
"(b) Except as otherwise prescribed by the Secretary of Defense, 
the Director of Defense Research and Engineering shall perform 
100 STAT. 3912 
PUBLIC LAW 99-661—NOV. 14, 1986 
such duties relating to research and engineering as the Under 
Secretary of Defense for Acquisition may prescribe."; and 
(B) by striking out subsection (c). 
f 
X ; 
(2)(A) Section 5314 of title 5, United States Code, is amended by 
striking out "Director of Defense Research and Engineering.". 
(B) Section 5315 of such title is amended by adding at the end the 
following: 
"Director of Defense Research and Engineering.". 
(c) INDEPENDENCE AND STAFF OF DIRECTOR OF OPERATIONAL TEST 
AND EVALUATION.—Section 138 of title 10, United States Code (as 
redesignated by section 101(a), of the Goldwater-Nichols Department 
Ante, p. 994. 
of Defense Reorganization Act of 1986 (Public Law 99-433)) is 
amended— 
(1) by inserting "and the Under Secretary of Defense for 
Acquisition" after "Secretary of Defense" in the first sentence 
of subsection (b); 
(2) by inserting "and the Under Secretary of Defense for 
Acquisition" after "Secretary of Defense" in subsection (b)(2); 
(3) by inserting ", to the Under Secretary of Defense for 
Acquisition," in subsection (b)(5) after "Secretary of Defense"; 
(4) by inserting ", to the Under Secretary of Defense for 
Acquisition," in subsection (c) after "Secretary of Defense" the 
n^Kt l?i • 01 
first 
place such term appears; 
(5) by inserting "personally" in the first sentence of subsec-
tion (d) after "Secretary of Defense"; 
(6) by inserting ", the Under Secretary of Defense for Acquisi-
tion," in the second sentence of subsection (g)(1) after "Sec-
retary of Defense"; and 
(7) by adding at the end the following new subsection: 
"(i) The Director shall have sufficient professional staff of military 
and civilian personnel to enable the Director to carry out the duties 
and responsibilities of the Director prescribed by law.". 
(d) DIRECTOR OF OFFICE OF SMALL AND DISADVANTAGED BUSINESS 
UTILIZATION.—Section 15(k)(3) of the Small Business Act (15 U.S.C. 
644(k)(3)) is amended by inserting ", except that in the case of the 
Department of Defense the Director of the Office of Small and 
Disadvantaged Business Utilization shall be responsible to, and 
report directly to, the Under Secretary of Defense for Acquisition". 
(e) CONFORMING AMENDMENT FOR ARMED FORCES POLICY COUNCIL 
MEMBERSHIP.—Section 171(a) of title 10, United States Code is 
amended— 
(1) by redesignating paragraphs (3) through (11) as paragraphs 
(4), (5), (6), (7), (9), (10), (11), (12), and (13), respectively; 
(2) by inserting after paragraph (2) the following new para-
graph (3): 
"(3) the Under Secretary of Defense for Acquisition;"; and 
(3) by striking out paragraph (7) (as so redesignated) and 
inserting in lieu thereof the following: 
"(7) the Under Secretary of Defense for Policy; 
"(8) the Deputy Under Secretary of Defense for Acquisition;". 
SEC. 904. ENHANCED PROGRAM 
STABILITY 
FOR 
MAJOR DEFENSE 
ACQUISITION PROGRAMS 
(a) PROGRAM STABILITY.—(1) Chapter 144 of title 10, United States 
Code, is amended by adding after section 2434 (as redesignated by 
section 101(a) of the Goldwater-Nichols Department of Defense 
':>*-iih 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3913 
Reorganization Act of 1986 (Public Law 99-433)) the following new 
section: 
"§ 2435. Enhanced program stability 
10 USC 2435. 
"(a) BASELINE DESCRIPTION REQUIREMENT.—(1) The Secretary of a 
military department shall establish a baseline description for a 
major defense acquisition program under the jurisdiction of such 
Secretary— 
;:.;''< T 
"(A) before such program enters full-scale engineering devel-
opment; and 
"(B) before such program enters full-rate production. 
"(2) A baseline description required under paragraph (1) shall 
include the following: 
"(A) In the case of the full-scale development stage— 
j,?,^' . 
.
^ 
"(i) a description of the performance goals for the weap-
y? 
ons system to be acquired under the program; 
"(ii) a description of the technical characteristics and 
configuration of such system; 
"(iii) total development costs for such stage by fiscal year; 
and 
"(iv) the schedule of development milestones. 
"(B) In the case of the production stage— 
"(i) a description of the performance of the weapons 
system to be acquired under the program; 
:: :: .2J .•; 
"(ii) a description of the technical characteristics and 
configuration of such system; 
"(iii) number of end items by fiscal year; 
"(iv) the schedule of development milestones; 
HHi: 
"^^^ testing; 
"(vi) initial training; 
"(vii) initial provisioning; and 
"(viii) total procurement costs for such stage (including 
the cost of all elements included in the baseline description) 
by fiscal year, which may not exceed the amount of the 
independent cost estimate for that program submitted to 
the Secretary of Defense under section 2434 of this title. 10 USC 2434. 
"(b) PROGRAM DEVIATION REPORTS.—(1) The program manager of a 
major defense acquisition program shall immediately submit a pro-
gram deviation report for such program to the Secretary of the 
military department concerned and to the senior procurement 
executive of such military department (designated pursuant to sec-
tion 16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 
- ^ f-' 
414(3))) if such manager determines at any time during the full-scale 
engineering development stage or the production stage that there is 
reasonable cause to believe that— 
"(A) the total cost of completion of the program will be more 
than the amount specified in the baseline description estab-
lished under subsection (a) for such stage; 
"(B) any milestone specified in such baseline description will 
not be completed as scheduled; or 
"(C) the system to be acquired under the program will not 
fulfill the description of performance, technical characteristics, 
or configuration specified in such baseline description. 
"(2) The Secretary of the military department concerned shall, 
with respect to any major defense acquisition program for which a 
program deviation report is received under paragraph (1)— 
"(A) establish a review panel to review such program; and 
100 STAT. 3914 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(B) submit a report containing the program deviation report 
and the results of such review to the Under Secretary of 
Defense for Acquisition before the end of the 45-day period 
- 
beginning on the date that the program deviation report is 
submitted under paragraph (1). 
"(c) DEFINITION.—In this section, the term 'major defense acquisi-
tion program' has the meaning given that term in section 2432(a)(1) 
10 use 2432. 
of this title.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2434 the 
following new item: 
. 
. 
"2435. Enhanced program stability." . 
10 use 2435 
(b) EFFECTIVE DATE.—Section 2435 of title 10, United States Code 
no<*- 
(as added by subsection (a)(1)), shall apply to major defense acquisi-
tion programs that enter full-scale engineering development or full-
rate production after the date of the enactment of this Act. 
SEC. 905. DEFENSE ENTERPRISE PROGRAMS 
(a) IN GENERAL.—(1) Chapter 144 of title 10, United States Code, is 
amended by adding after section 2435 (as added by section 904) the 
following new section: 
10 use 2436. 
"§ 2436. Defense enterprise programs 
"(a) IN GENERAL.—The Secretary of Defense shall conduct, 
through the Secretaries of the military departments, a program 
with respect to increasing the efficiency of the management struc-
ture of defense acquisition programs by reducing the number of 
officials through whom a program manager reports to the senior 
procurement executive of the military department concerned. 
"(b) DESIGNATION OF PARTICIPATING PROGRAMS.—The Secretary of 
a military department may designate any defense acquisition pro-
gram under the jurisdiction of the Secretary to participate in the 
program described in subsection (a). A program designated under 
_ 
this subsection shall be known as a 'defense enterprise program'. 
"' •' '^ 
"(c) GUIDELINES.—The Secretary of Defense shall issue guidelines 
governing the management of defense enterprise programs. Such 
guidelines shall include the following requirements: 
"(1) The Secretary concerned shall designate a program 
executive officer for each program. 
Reports. 
"(2) The program manager for each program shall report with 
respect to such program directly, without intervening review or 
' 
approval, to the program executive officer for the program. 
"" 
"(3) The program executive officer for a program shall report 
with respect to such program directly, without intervening 
review or approval, to the senior procurement executive of the 
military department concerned designated pursuant to section 
16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)). 
"(4) The program executive officer to whom a defense enter-
prise program manager reports shall evaluate the job perform-
ance of such manager on an annual basis. In conducting an 
f 
evaluation under this paragraph, a program executive officer 
shall consider the extent to which the manager has achieved the 
objectives of the program for which the manager is responsible, 
f 
including quality, timeliness, and cost objectives. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3915 
"(5) The manager of a defense enterprise program shall be 
authorized staff positions for a technical staff, including experts 
in business management, contracting, auditing, engineering, 
testing, and logistics. 
"(d) APPLICABLE RULES AND REGULATIONS.—(1) Except as specified 
by the senior procurement executive of the military department 
concerned, a defense enterprise program shall not be subject to any 
regulation, policy, directive, or administrative rule or guideline 
relating to the acquisition activities of the Department of Defense 
other than the Federal Acquisition Regulation and the Department 
of Defense supplement to the Federal Acquisition Regulation. 
"(2) Paragraph (1) shall not be construed to limit or modify the 
application of Federal legislation relating to the acquisition activi-
ties of the Department of Defense. 
"(3) In this subsection the term 'Federal Acquisition Regulation' 
has the meaning given such term in section 2320(a)(4) of this title.". 
10 USC 2320. 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2435 (as added 
by section 904) the following new item: 
"2436. Defense enterprise programs.". 
(b) The Secretary of each military department shall designate for 10 USC 2436 
fiscal year 1988 not less than three defense acquisition programs ^^o^-
under the jurisdiction of the Secretary to participate in the program 
described in section 2436(a) of title 10, United States Code (as added 
by subsection (a)(1)). 
SEC. 906. MILESTONE 
AUTHORIZATION 
OF DEFENSE 
ENTERPRISE 
PROGRAMS 
(a) IN GENERAL.—(1) Chapter 144 of title 10, United States Code, is 
amended by adding after section 2436 (as inserted by section 905) the 
following new section: 
"§ 2437. Defense enterprise programs: milestone authorization 
10 USC 2437. 
"(a) DESIGNATION OF PARTICIPATING PROGRAMS.—(1) The Secretary 
of Defense may designate defense enterprise programs in each 
military department (as designated by the Secretary of the military 
department under section 2436 of this title) to be considered for 
milestone authorization under subsection (b). 
"(2) The Secretary may designate a defense enterprise program 
under paragraph (1) only if the program— 
"(A) is ready to proceed into the full-scale engineering devel-
opment stage or the full-rate production stage; or 
"(B) is in either of such stages. 
"(b) SUBMISSION OF BASELINE DESCRIPTIONS.—Not later than the 
end of the 90-day period beginning on the date that a defense 
enterprise program is designated under subsection (a), the Secretary 
of Defense shall— 
"(1) in the case of a program that is subject to section 2435(a) 
of this title, submit to the Committees on Armed Services of the 
Ante, p. 3913. 
Senate and House of Representatives the baseline description 
, __,i 
for the program required to be submitted under such section; 
, 
"(2) in the case of a program that is not subject to such 
section— 
; 
"(A) establish a baseline description that meets the 
requirements of such section; and 
100 STAT. 3916 
PUBLIC LAW 99-661—NOV. 14, 1986 
" 
"(B) submit the baseline description to such committees; 
* 
and 
"(3) request from Congress the authority to obligate funds in a 
single amount sufficient to carry out the stage for which the 
baseline description is submitted. 
"(c) MILESTONE AUTHORIZATION.—Congress shall authorize funds 
for the full-scale engineering development stage or the full-rate 
production stage of a program designated by the Secretary of 
Defense under subsection (a) in a single aAiount sufficient to carry 
out that stage, but not for a period in excess of five years, if such 
program is approved by Congress to— 
"(1) proceed into or complete the full-scale engineering devel-
opment stage; or 
"(2) proceed into or complete the full-rate production stage. 
"(d) PROGRAM DEVIATIONS.—(1) 
If the Secretary of Defense 
receives a program deviation report under section 2435(b) of this 
Ante, p. 3913. 
title with respect to a defense enterprise program for which funds 
are authorized under subsection (b)— 
"(A) the Secretary of Defense shall notify the Committees on 
Armed Services of the Senate and House of Representatives of 
. 
,,, , 
the receipt of such report before the end of the 15-day period 
•' 
"'^!p^^,i^. 
beginning on the date on which the Secretary receives such 
report; and 
"(B) except as provided in paragraph (2), after the end of the 
45-day period beginning on the date on which the Secretary of 
Defense receives such report, the Secretary concerned may not 
obligate amounts appropriated or otherwise made available to 
the Department of Defense for purposes of carrying out the 
program. 
"(2) Paragraph (1)(B) does not apply if the Secretary of Defense 
notifies Congress that the Secretary intends to— 
"(A) convene a board to formally review the program; and 
• :* I ?.U •( 
"(B) submit to Congress a revised baseline description for the 
program and the recommendations of the board convened under 
subparagraph (A) concurrent with the submission by the Presi-
dent of the budget for the next fiscal year under section 1105(a) 
of title 31. 
"(3) The Secretary concerned may not obligate, for the purpose of 
carrying out a program described in paragraph (1) for which a 
program deviation report is received, amounts appropriated or 
otherwise made available to the Department of Defense for the 
fiscal year following the fiscal year during which the program 
deviation report was received unless such amounts are authorized to 
be appropriated after the date on which such report was received.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2436 (as 
inserted by section 905) the following new item: 
"2437. Defense enterprise programs: milestone authorization.". 
10 use 2437 
(b) INITIAL DESIGNATION OF PARTICIPATING PROGRAMS.—The Sec-
*K^' 
retary of Defense shall designate for fiscal year 1988 not less than 
three defense enterprise programs to be considered for milestone 
authorization under subsection (b). The Secretary shall make such 
designations as part of the budget submission of the Department of 
Defense for such fiscal year. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3917 
SEC. 907. PREFERENCE FOR NONDEVELOPMENTAL ITEMS 
(a) IN GENERAL.—(1) Chapter 137 of title 10, United States Code, is 
amended by adding at the end the following new section: 
"§ 2325. Preference for nondevelopmental items 
10 USC 2325. 
"(a) PREFERENCE.—The Secretary of Defense shall ensure that, to 
the maximum extent practicable— 
"(1) requirements of the Department of Defense with respect 
to a procurement of supplies are stated in terms o
f
— 
"(A) functions to be performed; 
"(B) performance required; or 
"(C) essential physical characteristics; 
"(2) such requirements are defined so that nondevelopmental 
items may be procured to fulfill such requirements; and 
"(3) such requirements are fulfilled through the procurement 
of nondevelopmental items. 
'*-
"(b) IMPLEMENTATION.—The Secretary of Defense shall carry out 
this section through the Under Secretary of Defense for Acquisition, 
who shall have responsibility for its effective implementation. 
"(c) REGULATIONS.—The Secretary of Defense shall prescribe regu-
lations to carry out this section. 
"(d) DEFINITION.—In this section, the term 'nondevelopmental 
item' means— 
"(1) any item of supply that is available in the commercial 
marketplace; 
"(2) any previously-developed item of supply that is in use by 
a department or agency of the United States, a State or local 
government, or a foreign government with which the United 
States has a mutual defense cooperation agreement; 
"(3) any item of supply described in paragraph (1) or (2) that 
requires only minor modification in order to meet the require-
ments of the procuring agency; or 
"(4) any item of supply that is currently being produced that 
does not meet the requirements of paragraph (1), (2), or (3) solely 
because the item— 
"(A) is not yet in use; or 
"(B) is not yet available in the commercial marketplace.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"2325. Preference for nondevelopmental items.". 
(3) The Secretary of Defense shall prescribe regulations as 
10 USC 2325 
required by section 2325(c) of title 10, United States Code (as added 
^°^-
by subsection (a)(1)), before the end of the 180-day period beginning 
on the date of the enactment of this Act. 
^'''^' " ;
^ 
(b) 
REMOVAL 
OF 
IMPEDIMENTS 
TO 
ACQUISITION 
OF 
NON- 
Reports. 
DEVELOPMENTAL ITEMS.—(1) The Secretary of Defense shall submit to 
lO use 2325 
the Committees on Armed Services of the Senate and House of "°*®-
Representatives a report— 
(A) identifying actions taken, including training of personnel 
and changes in regulations and procurement procedures, to 
' '- implement the requirements of section 2325 of title 10, United 
States Code (as added by subsection (a)(1)); 
^
^ ' 
(B) identifying all statutes and regulations that are deter-
'^•' mined 
by the 
Secretary 
to impede the 
acquisition 
of 
nondevelopmental items by the Department of Defense; and 
100 STAT. 3918 
PUBLIC LAW 99-661—NOV. 14, 1986 
(C) recommending any legislation that the Secretary consid-
. ers necessary or appropriate to promote maximum procurement 
of nondevelopmental items to fulfill the supply requirements of 
the Department of Defense. 
i " 
>; ' 
(2) The Secretary shall take appropriate steps to remove any 
impediments identified by the Secretary under paragraph (IXA) that 
are under the jurisdiction of the Secretary. 
(3) The report required by paragraph (1) shall be submitted before 
the end of the one-year period beginning on the date of the enact-
ment of this Act. 
(c) EVALUATION BY COMPTROLLER GENERAL,—(1) The Comptroller 
General shall conduct an independent evaluation of the actions 
taken by the Secretary of Defense to carry out the requirements of 
section 2325 of title 10, United States Code (as added by subsection 
(a)(1)). 
Reports. 
(2) The Comptroller General shall submit to the Committees on 
Armed Services of the Senate and House of Representatives a report 
on the evaluation required by paragraph (1). Such report shall 
include— 
(A) an analysis of the effectiveness of the actions taken by the 
Secretary to carry out the requirements of section 2325 of title 
10, United States Code (as added by subsection (a)(1)); 
(B) a description of any programs conducted to notify acquisi-
tion personnel of the Department of Defense of the require-
ments of such section and to train such personnel in the 
appropriate procedures for carrying out such section; 
(C) a description of each law, regulation, and procedure which 
prevents or restricts maximum practicable use of non-
developmental items to fulfill the supply requirements of the 
Department of Defense; and 
(D) such recommendations for additional legislation as the 
Comptroller General considers necessary or appropriate to pro-
mote maximum procurement of nondevelopmental items to 
fulfill the supply requirements of the Department of Defense. 
(3) The report required by paragraph (2) shall be submitted before 
the end of the two-year period beginning on the date of the enact-
ment of this Act. 
(d) DEFINITION.—For the purposes of subsections (b) and (c), the 
term "nondevelopmental items" has the meaning given such term 
in section 2325(d) of title 10, United States Code (as added by 
subsection (a)(1)). 
SiaSOB J 
SEC. 908. REQUIREMENTS RELATING TO UNDEFINITIZED CONTRAPTUAL 
ACTIONS 
10 use 2326 
(a) LIMITATION ON USE OF FUNDS FOR UNDEFINITIZED CONTRACTUAL 
note. 
ACTIONS.—(1) On the last day of each six-month period described in 
paragraph (4), the Secretary of Defense (with respect to the Defense 
Logistics Agency) and the Secretary of each military department 
shall determine— 
(A) the total amount of funds obligated for contractual actions 
during the six-month period; 
J 
(B) the total amount of funds obligated during the six-month 
period for undefinitized contractual actions; and 
(C) the total amount of funds obligated during the six-month 
>, 
period for undefinitized contractual actions that are not 
I, 
definitized on or before the last day of such period. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3919 
(2) On the last day of each six-month period described in para-
graph (4), the amount of funds obligated for undefinitized contrac-
tual actions entered into by the Secretary of Defense (with respect to 
the Defense Logistics Agency) or the Secretary of a military depart-
ment during the six-month period that are not definitized on or 
before such day may not exceed 10 percent of the amount of funds 
obligated for all contractual actions entered into by the Secretary 
during the six-month period. 
(3) If on the last day of a six-month period described in paragraph 
(4) the total amount of funds obligated for undefinitized contractual 
actions under the jurisdiction of a Secretary that were entered into 
during the six-month period exceeds the limit established in para-
graph (2), the Secretary— 
(A) shall, not later than the end of the 45-day period begin-
ning on the first day following the six-month period, submit to 
the defense committees an unclassified report concerning— 
(i) the amount of funds obligated for contractual actions 
under the jurisdiction of the Secretary that were entered 
into during the six-month period with respect to which the 
report is submitted; and 
(ii) the amount of such funds obligated for undefinitized 
contractual actions; and 
(B) except with respect to the six-month period described in 
r 
paragraph 
(4)(A), may 
not 
enter 
into 
any 
additional 
undefinitized contractual actions until the date on which the 
Secretary certifies to Congress that such limit is not exceeded 
by the cumulative amount of funds obligated for undefinitized 
contractual actions under the jurisdiction of the Secretary that 
are not definitized on or before such date and were entered 
into— 
(i) during the six-month period for which such limit was 
exceeded; or 
(ii) after the end of such six-month period. 
(4) This subsection applies to the following six-month periods: 
(A) The period beginning on October 1, 1986, and ending 
-1 
on March 31,1987. 
(B) The period beginning on April 1, 1987, and ending 
on September 30,1987. 
(C) The period beginning on October 1, 1987, and ending 
on March 31,1988. 
(D) The period beginning on April 1, 1988, and ending 
on September 30,1988. 
(E) The period beginning on October 1, 1988, and ending 
on March 31,1989. 
03) OVERSIGHT BY INSPECTOR GENERAL.—The Inspector General of 
the Department of Defense shall— 
(1) periodically conduct an audit of contractual actions under 
the jurisdiction of the Secretary of Defense (with respect to the 
Defense Logistics Agency) and the Secretaries of the military 
departments; and 
(2) after each audit, submit to Congress a report on the 
management of undefinitized contractual actions by each Sec-
retary, including the amount of contractual actions under the 
jurisdiction 
of 
each 
Secretary 
that 
is 
represented 
bv 
undefinitized contractual actions. 
(c) WAIVER AUTHORITY.—The Secretary of Defense may waive the 
application of this section for urgent and compelling considerations 
Reports. 
10 u s e 2326 
note. 
Reports. 
Defense and 
national 
security. 
10 u s e 2326 
note. 
100 STAT. 3920 
PUBLIC LAW 99-661—NOV. 14, 1986 
relating to national security or public safety if the Secretary notifies 
the Committees on Armed Services of the Senate and House of 
Representatives of such waiver before the end of the 30-day period 
beginning on the date that the waiver is made. 
(d) 
ESTABLISHMENT 
OF 
REQUIREMENTS 
WITH 
RESPECT 
TO 
UNDEFINITIZED CONTRACTUAL ACTIONS.—(IXA) Chapter 137 of title 
10, United States Code, is amended by adding after section 2325 (as 
added by section 907) the following new section: 
10 u s e 2326. 
"§ 2326. Undefinitized contractual actions: restrictions 
"(a) I N GENERAL.—The head of an agency may not enter into an 
undefinitized contractual action unless the request to the head of 
the agency for authorization of the contractual action includes a 
i ; ri 
description of the anticipated effect on requirements of the military 
department concerned if a delay is incurred for purposes of deter-
mining contractual terms, specifications, and price before perform-
ance is begun under the contractual action. 
"(b) LIMITATIONS ON OBLIGATION AND EXPENDITURE OF FUNDS.—(1) 
A contracting officer of the Department of Defense may not enter 
into an undefinitized contractual action unless the contractual 
action provides for agreement upon contractual terms, specifica-
tions, and price by the earlier of— 
, 
"(A) the end of the 180-day period beginning on the date on 
which the contractor submits a qualifying proposal to definitize 
the contractual terms, specifications, and price; or 
; 
"(B) the date on which the amount of funds obligated or 
^
^ 
expended under the contractual action is equal to more than 50 
.' 
percent of the negotiated overall ceiling price for the contrac-
tual action. 
"(2) Except as provided in paragraph (3), the contracting officer 
for an undefinitized contractual action may not expend with respect 
to such contractual action an amount that is equal to more than 50 
percent of the negotiated overall ceiling price until the contractual 
terms, specifications, and price are definitized for such contractual 
action. 
"(3) If a contractor submits a qualifying proposal (as defined in 
subsection (g)) to definitize an undefinitized contractual 
action 
before an amount equal to more than 50 percent of the negotiated 
overall ceiling price is expended on such action, the contracting 
officer for such action may not expend with respect to such contrac-
tual action an amount that is equal to more than 75 percent of the 
negotiated overall ceiling price until the contractual terms, speci-
fications, and price are definitized for such contractual action. 
"(4) This subsection does not apply to an undefinitized contractual 
* " " 
action for the purchase of initial spares. 
"(c) INCLUSION OF NON-URGENT REQUIREMENTS.—Requirements 
for spare parts and support equipment that are not needed on an 
urgent basis may not be included in an undefinitized contractual 
action for spare parts and support equipment that are needed on an 
urgent basis unless the head of the agency approves such inclusion 
' 
8 ' 
as being— 
"(1) good business practice; and 
•
> 
"(2) in the best interests of the United States. 
"(d) MODIFICATION OF SCOPE.—The scope of an 
undefinitized 
contractual action under which performance has begun may not be 
modified unless the head of the agency approves such modification 
as being— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3921 
"(1) good business practice; and 
"(2) in the best interests of the United States. 
"(e) ALLOWABLE PROFIT.—The head of an agency shall ensure that 
' 
-^ 
the profit allowed on an undefinitized contractual action for which 
the final price is negotiated after a substantial portion of the 
performance required is completed reflects— 
"(1) the possible reduced cost risk of the contractor with 
respect to costs incurred during performance of the contract 
before the final price is negotiated; and 
"(2) the reduced cost risk of the contractor with respect to 
costs incurred during performance of the remaining portion of 
the contract. 
"(f) APPLICABILITY.—This section does not apply to the Coast 
Guard or the National Aeronautics and Space Administration. 
"(g) DEFINITIONS.—In this section: 
"(1) The term 'undefinitized contractual action' means a new 
procurement action entered into by the head of an agency for 
which the contractual terms, specifications, or price are not 
agreed upon before performance is begun under the action. 
Such term does not include contractual actions with respect to 
the following: 
"(A) Foreign military sales. 
"(B) Purchases of less than $25,000. 
"(C) Special access programs. 
"(D) Congressionally-mandated long-lead procurement 
contracts. 
"(2) The term 'qualifying proposal' means a proposal that 
contains sufficient information to enable the Department of 
Defense to conduct complete and meaningful audits of the 
information contained in the proposal and of any other informa-
tion that the Department is entitled to review in connection 
with the contract, as determined by the contracting officer.". 
(B) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2325 (as added 
by section 907) the following new item: 
"2326. Undefinitized contractual actions: restrictions.". 
(2) Section 2326 of title 10, United States Code (as added by 10USC2326 
subsection (d)(1)), applies to undefinitized contractual actions that note, 
are entered into after the end of the 180-day period beginning on the 
date of the enactment of this Act. 
(e) 
DEFINITION.—For 
purposes 
of 
this 
section, 
the 
term 
10 use 2326 
"undefinitized contractual action" has the meaning given such term 
^^te. 
in section 2325(g) of title 10, United States Code (as added by 
subsection (d)(1)). 
SEC. 909. COMPETITIVE PROTOTYPE STRATEGY REQUIREMENT FOR 
MAJOR DEFENSE ACQUISITION PROGRAMS 
(a) ESTABUSHMENT OF REQUIREMENT.—(1) Chapter 139 of title 10, 
United States Code, is amended by adding after section 2364 (as 
added by section 234) the following new section: 
i 
"§ 2365. Competitive 
prototype 
strategy 
requirement: 
major lo USC 2365. 
defense acquisition programs 
"(a) COMPETITIVE PROTOTYPE STRATEGY REQUIREMENT.—Except as 
provided in subsection (c), the Secretary of Defense shall require the 
100 STAT. 3922 
PUBLIC LAW 99-661—NOV. 14, 1986 
use of a competitive prototype program strategy in the development 
of a major weapons system (or a subsystem of such system). 
C!ontracts. 
"(b) QUALIFYING STRATEGIES.—An acquisition Strategy qualifies £is 
a competitive prototype strategy if it— 
"(1) requires that contracts be entered into with not less than 
two contractors, using the same combat performance require-
ments, for the competitive design and manufacture of a 
prototype system or subsystem for developmental test and 
evaluation; 
"(2) requires that all systems or subsystems developed under 
contracts described in paragraph (1) be tested in a comparative 
side-by-side test that is designed to— 
"(A) reproduce combat conditions to the extent prac-
ticable; and 
"(B) determine which system or subsystem is most effec-
* ' 
tive under such conditions; and 
"(3) requires that each contractor that develops a prototype 
system or subsystem, before the testing described in subpara-
graph (B) is begun, submit— 
"(A) cost estimates for full-scale engineering development 
and the basis for such estimates; and 
"(B) production estimates, whenever practicable. 
"(c) EXCEPTION.—Subsection (a) shall not apply to the development 
of a major weapons system (or subsystem of such system) after— 
"(1) the Secretary submits to Congress— 
_ . 
"(A) written notification that use of a competitive proto-
(v 
type program strategy is not practicable with respect to 
such system or subsystem; and 
Reports. 
"(B) a report that fully explains why use of such a 
strategy is not practicable, including cost estimates (and the 
bases for such estimates) comparing the total program cost 
i^j 
of the competitive prototype strategy with the total pro-
2 
gram cost of the alternative acquisition strategy; and 
"(2) 30 days elapse after the Secretary submits the notifica-
tion and report required by paragraph (1). 
"(d) DEFINITIONS.—In this section: 
"(1) The term 'major weapons system' means a major weapons 
system that is acquired under a program that is a major defense 
acquisition program. 
"(2) The term 'major defense acquisition program' means a 
;, 
, 
J 
Department of Defense acquisition program that— 
^ 
, 
"(A) is not a highly sensitive classified program (as deter-
,} ' 
mined by the Secretary of Defense); and 
"(B) that is estimated by the Secretary of Defense tq 
require an eventual total expenditure for research, develop-
'* 
ment, test, and evaluation of more than $200,000,000 (based 
on fiscal year 1980 constant dollars). 
t; 
"(3) The term 'subsystem of such system' means a collection of 
components (such as the propulsion system, avionics, or weapon 
controls) for which the prime contractors, major subcontrac-
tors, or government entities have responsibility for system 
': . )f' :: ^c 
integration.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2364 (as 
added by section 234) the following new item: 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3923 
"2365. Ck)mpetitive prototype strategy requirement: major defense acquisition 
programs.". 
(b) EFFECTIVE DATE.—Section 2365 of title 10, United States Code 
10 USC 2365 
(as added by subsection (a)(1)), shall apply to major weapons systems note, 
(as defined in subsection (c)(1) of such section) that enter the 
advanced development stage after September 30, 1986. 
SEC. 910. TESTING OF CERTAIN WEAPON SYSTEMS AND MUNITIONS 
(a) SURVIVABILITY AND LETHALITY TESTING AND OPERATIONAL TEST-
ING.—(1) Chapter 139 of title 10, United States Code, is amended by 
adding after section 2365 (as added by section 909) the following new 
section: 
"§ 2366. Major systems and munitions programs: survivability and 10 USC 2366. 
lethality testing; operational testing 
"(a) REQUIREMENTS.—The Secretary of Defense shall provide 
t h a t -
'll) a covered system may not proceed beyond low-rate initial 
production until realistic survivability testing of the system is 
completed in accordance with this section; 
"(2) a major munition program or a missile program may not 
' 
proceed beyond low-rate initial production until realistic 
lethality testing of the program is completed in accordance with 
' 
this section; and 
"(3) a major defense acquisition program may not proceed 
beyond low-rate initial production until initial operational test 
and evaluation of the program is completed in accordance with 
this section. 
"(b) TEST GUIDELINES.—(1) Survivability and lethality tests 
required under subsection (a) shall be carried out sufficiently early 
in the development phase of the system or program to allow any 
j ,; 
design deficiency demonstrated by the testing to be corrected in the 
design of the system, munition, or missile before proceeding beyond 
low-rate initial production. 
"(2) In the case of a major defense acquisition program, no person 
employed by the contractor for the system being tested may be 
involved in the conduct of the operational test and evaluation 
required under subsection (a). 
"(3) The costs of all tests required under that subsection shall be 
^ '_J; 
paid from funds available for the system being tested. 
" ^ 
"(c) WAIVER AUTHORITY.—The Secretary of Defense may waive the 
application of the survivability and lethality tests of this section to a 
covered system, munitions program, or missile program if the Sec-
retary, before the system or program enters full-scale engineering 
development, 
certifies to Congress that 
live-fire 
testing of 
such system or program would be unreasonably expensive and 
impractical. 
"(d) WAIVER IN TIME OF WAR OR MOBILIZATION.—In time of war or President of U.S. 
mobilization, the President may suspend the operation of any provi-
sion of this section. 
"(e) DEFINITIONS.—In this section: 
"(1) The term 'covered system' means a vehicle, weapon 
platform, or conventional weapon system— 
"(A) that includes features designed to provide some 
degree of protection to users in combat; and 
"(B) that is a major system within the meaning of that 
term in section 2303(5) of this title. 
.qii'i 
100 STAT. 3924 
PUBLIC LAW 99-661—NOV. 14, 1986 
x>'. 
"(2) The term'major munitions program'means— 
"(A) a munition program for which more than 1,000,000 
r • > ^ . 
rounds are planned to be acquired; or 
"(B) a conventional munitions program that is a major 
system within the meaning of that term in section 2302(5) of 
this title. 
"(3) The term 'major defense acquisition program' means— 
"(A) a conventional weapons system that is a major 
system within the meaning of that term in section 2302(5) of 
this title; and 
"(B) is designed for use in combat. 
"(4) The term 'realistic survivability testing' means, in the 
'• ' 
;^i ;?: fjffj case of a covered system, testing for vulnerability and surviv-
ability of the system in combat by firing munitions likely to be 
, ;,; encountered in combat (or munitions with a capability similar 
to such munitions) at the system configured for combat, with 
ff r the primary emphasis on testing vulnerability with respect to 
potential user casualties and taking into equal consideration 
the operational requirements and combat performance of the 
system. 
"(5) The term 'realistic lethality testing' means, in the case of 
;i~' a major munitions program or a missile program, testing for 
lethality by firing the munition or missile concerned at appro-
priate targets configured for combat. 
"(6) The term 'configured for combat', with respect to a 
weapon system, platform, or vehicle, means loaded or equipped 
with all dangerous materials (including all flammables and 
explosives) that would normally be on board in combat. 
"(7) The term 'operational test and evaluation' has the mean-
10 use 138. 
ing given that term in section 138(a)(2)(A) of this title.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2365 (as added 
by section 909) the following new item: 
"2366. Major systems and munitions programs: survivability and lethality testing; 
operational testing.". 
10 u s e 2366 
(b) EFFECTIVE DATE.—Section 2366 of title 10, United States Code 
"°*®- 
(as added by subsection (a)), shall apply with respect to any decision 
to proceed with a program beyond low-rate initial production that is 
made— 
(1) after May 31, 1987, in the case of a decision referred to in 
subsection (a)(1) or (a)(2) of such section; or 
(2) after the date of the enactment of this Act, in the case of a 
decision referred to in subsection (a)(3) of such section. 
(c) 
TIME 
FOR SUBMISSION 
OF ANNUAL 
REPORT OF DIRECTOR 
• 
& 
(OT&E).—Subsection (gXD of section 138 of such title (as redesig-
nated by section 101(a) of the Gold 
water-Nichols Department of 
Ante, p. 994. 
Defense Reorganization Act of 1986 (Public Law 99-433)) is amended 
by striking out "January 15" in the second sentence and all that 
follows through 'is prepared' and inserting in lieu thereof "10 days 
after the transmission of the budget for the next fiscal year under 
section 1105 of title 31". 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3925 
SEC. 911. GOALS FOR INCREASED USE OF MULTIYEAR CONTRACTING 
AUTHORITY IN FISCAL YEAR 1988 
(a) IN GENERAL.—The Secretary of Defense shall take appropriate 
actions to ensure that the Department of Defense increases the use 
of multiyear contracting authority in fiscal year 1988. 
(b) MULTIYEAR PROCUREMENT GOAL.—The total amount obligated 
i-
under multiyear contracts (authorized by section 2306(h) of title 10, 
United States Code) for Department of Defense procurement pro-
gram eligible for multiyear contracting during fiscal year 1988 
should be an amount that is not less than 10 percent of the total 
obligational authority used by the Department of Defense for 
procurement programs of the Department during such fiscal year. 
•' 
' • '' 
(c) APPORTIONMENT OF GOAL.—The Secretary of Defense shall 
specify the percentage of obligational authority of each military 
department and Defense Agency that is to be used for multiyear 
contracts to achieve the goal prescribed in subsection (b). 
(d) BASELINE REPORT.—Not later than January 1, 1987, the Sec-
retary of Defense shall submit to the Committees on Armed Services 
; 
HTJ , 
and on Appropriations of the Senate and the House of Representa- 
>'t>f 
tives a written report which contains— 
( D a list of all procurement programs which the Secretary 
determines to be procurement programs eligible for multiyear 
contracting that are subject to the requirements of section 2432 
of title 10, United States Code (as redesignated by section 101(a) 
of the Goldwater-Nichols 
Department of Defense 
Reorganiza-
tion Act of 1986 (Public Law 99-433)); 
Ante, p. 994. 
(2) the Secretary's assessment of the feasibility and desirabil-
ity of the multiyear procurement goal prescribed in subsection 
•r.ti: Oi); and 
(3) whether the Secretary expects to achieve the goal pre-
scribed in subsection (b) for fiscal year 1988 and, if the Secretary 
does not expect to achieve such goal, the reasons why such goal 
will not be achieved. 
(e) DEFINITIONS.—As used in this section the term "procurement 
v. \. • ' 
program eligible for multiyear contracting" means a procurement 
program of the Department of Defense— 
(1) which satisfies the conditions of clauses (A) through (F) of 
section 2306(h)(1) of title 10, United States Code; and 
(2) under which production of fully configured end items is 
planned for a period exceeding three fiscal years. 
SEC. 912. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS 
(a) IN GENERAL.—(1) Chapter 139 of title 10, United States Code, is 
amended by adding after section 2366 (as added by section 910) the 
following new section: 
"§2367. Use of federally funded research and development centers 
10 use 2367. 
"(a) LIMITATION ON USE OF CENTERS.—Except as provided in 
subsection (b), the Secretary of Defense may not place work with a 
federally funded research and development center unless such work 
is within the purpose, mission, and general scope of effort of such 
center as established in the sponsoring agreement of the Depart-
ment of Defense with such center. 
"(b) EXCEPTION FOR APPUED SCIENTIFIC RESEARCH.—This section 
does not apply to a federally funded research and development 
center that performs applied scientific research under laboratory 
conditions. 
100 STAT. 3926 
PUBLIC LAW 99-661—NOV. 14, 1986 
Reports. 
10 u s e 2302. 
10 u s e 2367 
note. 
C!ontracts. 
"(c) LIMITATION ON CREATION OF NEW CENTERS.—(1) The head of 
an agency may not obligate or expend amounts appropriated to the 
Department of Defense for purposes of operating a federally funded 
research center that was not in existence before June 2, 1986, 
until— 
"(A) the head of the agency submits to Congress a report with 
respect to such center that describes the purpose, mission, and 
general scope of effort of the center; and 
"(B) a period of 60 days beginning on the date such report is 
received by Congress has elapsed. 
"(2) In this subsection, the term 'head of an agency' has the 
meaning given such term in section 2302(1) of this title.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2366 (as added 
by section 910) the following new item: 
"2367. Use of Federally funded research and development centers.". 
(b) GAG STUDY.—The Comptroller General shall conduct a study 
of the national defense role of federally funded research and devel-
opment centers. Such study shall consider the following: 
(1) The effectiveness of procedures in effect on the date of the 
enactment of this Act in ensuring that such centers are estab-
lished on the basis of the criteria set forth in Office of Federal 
Procurement Policy Circular 84-1. 
(2) The effectiveness of such procedures in ensuring that work 
placed with such centers is within the purpose, mission, and 
general scope of effort of such center as established in the 
R 
sponsoring agreement with such center. 
(3) The growth in the size of such centers during fiscal years 
1982 through 1986, measured— 
I 
(A) in dollar value of work placed with such centers; and 
it , 
(B) in man-years of effort required to complete work 
placed with such centers. 
(4) The effect of the exemption of contracts with such centers 
from the competitive procedures required by section 2304 of 
title 10, United States Code. 
(5) The relationship of such centers to their sponsors. 
(c) GAG REPORT.—(1) The Comptroller General shall submit to 
Congress a report on the study required by subsection (b). Such 
report shall include a discussion of each of the matters listed in 
subsection (b). 
(2) The report required by paragraph (1) shall be submitted not 
later than one year after the date of the enactment of this Act. 
PART B—REQUIREMENTS RELATING TO THE ACQUISITION PROCESS 
SEC. 921. SMALL BUSINESS SETASIDES 
(a) PROPORTION OF CONTRACTS SET ASIDE DETERMINED ON INDUSTRY 
CATEGORY BASIS.—Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended— 
(1) by inserting "in each industry category" in paragraph (3) 
after "Government", and 
(2) by adding at the end the following new sentences: "For 
purposes of clause (3) of the first sentence of this subsection, an 
industry category is a discrete group of similar goods and 
services. Such groups shall be determined by the Admini-
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3927 
stration in accordance with the four-digit standard industrial 
classification codes contained in the Standard Industrial Classi-
fication Manual published by the Office of Management and 
Budget, except that the Administration shall limit such an 
industry category to a greater extent than provided under such 
, 
classification codes if the Administration receives evidence 
indicating that further segmentation for purposes of this para-
graph is warranted due to special capital equipment needs or 
special labor or geographic requirements or to recognize a new 
industry. A market for goods or services may not be segmented 
under the preceding sentence due to geographic requirements 
unless the Government typically designates the area where 
work for contracts for such goods or services is to be performed 
and Government purchases comprise the major portion of the 
entire domestic market for such goods or services and, due to 
the fixed location of facilities, high mobilization costs, or similar 
economic factors, it is unreasonable to expect competition from 
business concerns located outside of the general areas where 
such concerns are located.". 
(b) AWARDING OF CONTRACTS AT FAIR MARKET PRICES.—(1) Section 
15(a) of such Act (15 U.S.C. 644(a)) is further amended by adding at 
the end the following new sentence: "A contract may not be 
awarded under this subsection if the award of the contract would 
result in a cost to the awarding agency which exceeds a fair market 
price.". 
(2) Section 8(a)(1)(A) of such Act (15 U.S.C. 637(a)(1)(A)) is amended 
by striking out the semicolon at the end and adding in lieu thereof 
the following: ".A contract may not be awarded under this subsec-
tion if the award of the contract would result in a cost to the 
awarding agency which exceeds a fair market price;". 
(c) ASSURANCE AS TO COMPOSITION OF LABOR FORCE.—(1) Section 
8(a) of such Act (15 U.S.C. 637(a)) is amended by adding at the end 
the following new paragraph: 
"(14)(A) A concern may not be awarded a contract under this 
subsection as a small business concern unless the concern agrees 
that— 
"(i) in the case of a contract for services (except construction), 
at least 50 percent of the cost of contract performance incurred 
for personnel shall be expended for employees of the concern; 
and 
"(ii) in the case of a contract for procurement of supplies 
'i 
(other than procurement from a regular dealer in such sup-
plies), the concern will perform work for at least 50 percent of 
the cost of manufacturing the supplies (not including the cost of 
materials). 
"(B) The Administrator may change the percentage under clause 
(i) or (ii) of subparagraph (A) if the Administrator determines that 
such change is necessary to reflect conventional industry practices 
among business concerns that are below the numerical size standard 
for businesses in that industry category. A percentage established 
under the preceding sentence may not differ from a percentage 
established under section 15(n). 
"(C) The Administration shall establish, through public rule-
making, requirements similar to those specified in subparagraph (A) 
to be applicable to contracts for general and specialty construction 
and to contracts for any other industry category not otherwise 
subject to the requirements of such subparagraph. The percentage 
100 STAT. 3928 
PUBLIC LAW 99-661—NOV. 14, 1986 
Contracts. 
Disadvantaged 
persons. 
Defense and 
national 
security. 
applicable to any such requirement shall be determined in accord-
ance with subparagraph (B), except that such a percentage may not 
differ from a percentage established under section 15(n) for the same 
industry category.". 
(2) Section 15 of such Act (15 U.S.C 644) is amended by adding at 
the end the following new subsection: 
"(o)(l) A concern may not be awarded a contract under this 
subsection as a small business concern unless the concern agrees 
that— 
"(A) in the case of a contract for services (except construc-
tion), the concern will perform at least 50 percent of the cost of 
the contract with its own employees; and 
"(B) in the case of a contract for procurement of supplies 
(other than procurement from a regular dealer in such sup-
plies), the concern will perform work for at least 50 percent of 
the cost of manufacturing the supplies (not including the cost of 
materials). 
"(2) The Administrator may change the percentage under 
subparagraph (A) or (B) of paragraph (1) if the Administrator deter-
mines that such change is necessary to reflect conventional industry 
practices among business concerns that are below the numerical size 
standard for businesses in that industry category. 
"(3) The Administration shall establish, through public rule-
making, requirements similar to those specified in paragraph (1) to 
be applicable to contracts for general and specialty construction and 
to contracts for any other industry category not otherwise subject to 
the requirements of such subparagraph.". 
(d) EXPANSION OF ANNUAL PARTICIPATION GOALS.—Section 15(g) of 
such Act is amended— 
(1) by striking out "having values of $10,000 or more" in the 
first sentence; and 
(2) by adding at the end the following: "For the purpose of 
establishing goals under this subsection, the head of each Fed-
• •". eral agency shall make consistent efforts to annually expand 
participation by small business concerns from each industry 
category in procurement contracts of the agency, including 
participation by small business concerns owned and controlled 
by socially and economically disadvantaged individuals. The 
head of each Federal agency, in attempting to attain such 
participation, shall consider— 
"(1) contracts awarded as the result of unrestricted com-
petition; and 
' 
"(2) contracts awarded after competition restricted to 
eligible small business concerns under this section and 
under the program established under section 8(a).". 
(e) DISCLOSURE OF INFORMATION CONCERNING APPLICANTS FOR 
PROCUREMENT SET-ASIDES.—Section 15 of such Act is further 
amended by adding at the end the following new subsection: 
"(p)(l) Except as provided in paragraphs (2) and (3), the head of 
any Federal agency shall, within five days of the agency's decision to 
set aside a procurement for small business concerns under this 
section, provide the names and addresses of the small business 
concerns expected to respond to the procurement to any person who 
requests such information. 
"(2) The Secretary of Defense may decline to provide information 
under paragraph (1) in order to protect national security interests. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3929 
15 use 632. 
15 use 637, 644. 
"(3) The head of a Federal agency is not required to release any 
information under paragraph (1) that is not required to be released 
under section 552 of title 5, United States Code.". 
(f) REVIEW OF SIZE STANDARDS.—Section 3 of the Small Business 
(1) by inserting "(1)" after "SEC. 3. (a)"; and 
(2) by adding at the end of subsection (a) the following: 
"(2)(A) The Small Business Administration shall establish a pro-
gram for the review of the size standards for eligibility of business 
concerns in the industry categories described in subparagraph (B) 
for a procurement restricted to small business concerns under sec-
tion 8(a) or 15(a). 
"(B) Subparagraph (A) shall apply only to business concerns in the 
following industry categories: 
"(i) Construction. 
"(ii) Architectural and engineering services (including survey-
ing and mapping services). 
"(iii) Ship building and ship repair. 
"(iv) Refuse systems and related services. 
"(3) If the Administrator determines, on the basis of any such 
review, that contracts awarded under the set-aside programs under 
such sections exceed 30 percent of the dollar value of the total 
contract awards for that industry category, as determined under the 
last sentence of section 15(a)(3), the Administrator shall adjust the 
eontracts 
size standards for such industry category establishing eligibility for 
a set-aside program to a size that will likely reduce the number of 
contracts which may be set aside to approximately 30 percent of the 
value of contracts to be awarded under such sections. 
"(4)(A) An interested person may petition the Administrator at 
any time to review an adjustment to a size standard made under 
paragraph (3) or any designation of an industry category made 
under section 15(a)(3) if the petitioner presents credible evidence 
that any such adjustment or designation— 
"(i) is not likely to further the purposes of paragraph (3)(A) or 
section 15(a); and 
"(ii) has caused the petitioner to suffer severe financial loss. 
"(B) The Administrator shall render a final determination on any 
petition filed under subparagraph (A) before the end of the 30-day 
period beginning on the date that such petition is received by the 
Administration. Such determination shall be reviewable in the 
manner prescribed in chapter 7 of title 5, United States Code. 
"(C) The Administrator shall prescribe regulations to carry out 
the provisions of this subsection. 
"(5) The Administrator shall conduct a review under the program 
established under paragraph (2) at least once during every three 
years. Such review shall be completed and appropriate size standard 
adjustments made with the expiration of 180 days after each three-
year review period.". 
(g) EFFECTIVE DATES.—Except as otherwise provided in subsection 
(h), the amendments made by this section shall take effect on 
October 1,1987. 
(h) INITIAL REVIEW OF SIZE STANDARDS.—(1) Paragraph (2) of 
section 3(a) of the Small Business Act (as added by subsection (fj) 
shall take effect on the date of the enactment of this Act. 
(2) The first review conducted by the Administrator under such 
paragraph shall review the periods beginning on October 1, 1983, 
5 u s e 701 et seq. 
Regulations. 
15 u s e 632 note. 
15 use 632 note. 
100 STAT. 3930 
PUBLIC LAW 99-661—NOV. 14, 1986 
Contracts. 
15 u s e 637, 644. 
Federal 
Register, 
publication. 
15 u s e 632 note. 
Contracts. 
Illinois. 
15 u s e 637, 644. 
and ending on September 30, 1986, and shall be completed not later 
than 180 days after the date of the enactment of this Act. 
(3) If the Administrator of the Small Business Administration 
determines, on the basis of the review referred to in paragraph (2), 
that contracts awarded under the set-aside programs under sections 
8(a) and 15(a) of the Small Business Act in any industry category 
subject to that review exceed 30 percent of the dollar value of the 
total contract awards for that industry category, as determined in 
accordance with the last sentence of section 15(a)(3) of such Act, the 
Administrator shall propose adjustments to the size standards for 
such industry category establishing eligibility for a set-aside pro-
gram to a size that will likely reduce the number of contracts which 
may be set aside to approximately 30 percent of the value of 
contracts to be awarded under such sections. The Administrator 
shall publish such proposed adjustments in the Federal Register for 
public comment. The Administrator may not issue final regulations 
implementing revised size standards for an industry category under 
section 3(a)(3) of such Act (as added by subsection if)) until October 1, 
1987. 
(i) REPORT ON EFFECT OF AMENDMENTS MADE BY THIS SECTION.—(1) 
The Administrator of the Small Business Administration shall 
submit to the Committees on Armed Services and the Committees 
on Small Business of the Senate and House of Representatives a 
report on the amendments made by this section. The report shall 
include the Administrator's views on the advisability and feasibility 
of implementing such amendments. 
(2) The report shall also include— 
. 
(A) the Administrator's findings and determinations under 
the review of size standards for businesses that qualify as small 
businesses carried out pursuant to section 3(a)(2)(B) of the Small 
Business Act (as amended by subsection if)); 
(B) a determination of whether or not the amendments made 
by subsection if) will further the interests of the set-aside 
program; and 
(C) recommendations for furthering the interests described in 
subparagraphs (A) and (B) in a more efficient or more effective 
manner than provided in such amendments. 
(3) In preparing the report required by paragraph (1), the 
Administrator of the Small Business Administration shall seek the 
views of all affected agencies of the Government and the views of 
the public, including the views of business concerns of all sizes and 
of trade, business, and professional organizations. The views of such 
agencies, and a summary of the views of the public, shall be 
included in the report. 
(4) The report shall be submitted not later than July 15, 1987. 
(j) 
LIMITATION RESPECTING GREAT 
LAKES 
NAVAL TRAINING 
CENTER.—Of the total dollar amount of the contracts awarded for 
fiscal year 1987 for construction and refuse systems and related 
services at Great Lakes Naval Training Center, Illinois, not more 
than 30 percent of such dollar amount may be under contracts 
awarded through the so-called small business set-aside programs 
under sections 8 and 15 of the Small Business Act. 
SEC. 922. THRESHOLDS FOR CERTAIN REQUIREMENTS RELATING TO 
SMALL PURCHASES 
(a) SMALL BUSINESS ACT NOTICE THRESHOLDS.—Section 8(e)(1) of 
the Small Business Act (15 U.S.C. 637(e)(1)) is amended— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3931 
(1) in subparagraph (A)— 
(A) by striking out "$10,000" both places such term 
appears and inserting in lieu thereof "$25,000"; 
(B) by striking out "or" at the end of clause (i); 
(C) by striking out the comma at the end of clause (ii) and 
inserting in lieu thereof "; or"; 
(D) by inserting after clause (ii) the following new clause: 
"(iii) solicit bids or proposals for a contract for property or Contracts, 
services for a price expected to exceed $10,000, if there is 
not a reasonable expectation that at least two offers will be 
received from responsive and responsible offerors,"; and 
(E) by striking out "subsection Ot)); and" and inserting in 
lieu thereof "subsection (f);"; 
(2) by redesignating subparagraph (B) as subparagraph (C); 
and 
(3) by inserting after subparagraph (A) the following new 
subparagraph (B): 
"(B) an executive agency intending to solicit bids or proposals 
for a contract for property or services shall post, for a period of 
not less than ten days, in a public place at the contracting office 
issuing the solicitation a notice of solicitation described in 
subsection (f)— 
"(i) in the case of an executive agency other than the 
Department of Defense, if the contract is for a price 
expected to exceed $10,000, but not to exceed $25,000; and 
"(ii) in the case of the Department of Defense, if the 
contract is for a price expected to exceed $5,000, but not to 
exceed $25,000; and". 
(b) OFFICE OF FEDERAL PROCUREMENT POLICY ACT NOTICE THRESH-
OLDS.—Section 18(a)(1) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 416(a)(1)(A)) is amended— 
(1) in subparagraph (A)— 
(A) by striking out "$10,000" both places such term 
appears in and inserting in lieu thereof "$25,000"; 
(B) by striking out "or" at the end of clause (i); 
(C) by striking out the comma at the end of clause (ii) and 
inserting in lieu thereof "; or"; 
(D) by inserting after clause (ii) the following new clause: Contracts, 
"(iii) solicit bids or proposals for a contract for property or 
services for a price expected to exceed $10,000, if there is 
not a reasonable expectation that at least two offers will be 
received from responsive and responsible offerors,"; and 
(E) by striking out "and" at the end; 
(2) by redesignating subparagraph (B) as subparagraph (C); 
and 
(3) by inserting after subparagraph (A) the following new 
subparagraph (B): 
"(B) an executive agency intending to solicit bids or proposals 
for a contract for property or services shall post, for a period of 
not less than ten days, in a public place at the contracting office 
issuing the solicitation a notice of solicitation described in 
subsection (0— 
"(i) in the case of an executive agency other than the 
Department of Defense, if the contract is for a price 
expected to exceed $10,000, but not to exceed $25,000; and 
"(ii) in the case of the Department of Defense, if the 
contract is for a price expected to exceed $5,000, but not to 
exceed $25,000; and". 
100 STAT. 3932 
PUBLIC LAW 99-661—NOV. 14, 1986 
(c) SMALL BUSINESS SET-ASIDES.—The first sentence of section 150') 
of the Small Business Act (15 U.S.C. 644(j)) is amended by striking 
out "$10,000" and inserting in lieu thereof "$25,000". 
(d) CONFORMING AMENDMENTS.—(1) Section 8(f) of the Small Busi-
15 use 637. 
ness Act is amended by striking out "subsection (e)(1)(A)" and 
inserting in lieu thereof "subparagraph (A) or (B) of subsection 
(e)(1)". 
41 use 416. 
(2) Section 18(b) of the Office of Federal Procurement Policy Act is 
amended by striking out "subsection (a)(1)(A)" and inserting in lieu 
thereof "subparagraph (A) or (B) of subsection (a)(1)". 
SEC. 923. REQUIREMENTS RELATING TO PROCEDURES OTHER THAN 
COMPETITIVE PROCEDURES 
(a) LIMITED SOURCES.—Section 2304(c)(1) of title 10, United States 
Code, is amended by inserting "or only from a limited number of 
responsible sources" after "only one responsible source". 
(b) UNSOLICITED PROPOSALS FOR SERVICE.—Subparagraph (A) of 
section 2304(d)(1) of such title is amended by striking out "a unique 
and innovative concept" and all that follows and inserting in lieu 
thereof "a concept— 
"(i) that is unique and innovative or, in the case of a 
service, for which the source demonstrates a unique 
capability of the source to provide the service; and 
"(ii) the substance of which is not otherwise available to 
the United States, and does not resemble the substance of a 
pending competitive procurement; and". 
(c) FOLLOW-ON CONTRACTS.—Subparagraph (B) of such section is 
amended— 
(1) by inserting ", or the continued provision of highly special-
ized services, such property or services may be deemed to be 
available only from the original source and may be procured 
through procedures other than competitive procedures" after 
"highly specialized equipment"; 
(2) by inserting a one-em dash after "would result in"; 
(3) by paragraphing clauses (i) and (ii) and aligning their 
margins so as to be cut in four ems; 
(4) by striking out the comma after "competition" at the end 
.BS-^snif^j 
of clause (i) and inserting in lieu thereof a semicolon; and 
(5) by striking out ", such property" and all that follows and 
inserting in lieu thereof a period. 
Contracts. 
(d) EFFECTIVE DATES.—(1) The amendment made by subsection (a) 
10 use 2304 
shall apply with respect to contracts for which solicitations are 
"
*
*
*
*
• 
issued after the end of the 180-day period beginning on the date of 
the enactment of this Act. 
(2) The amendment made by subsection (b) shall apply with 
respect to contracts awarded on the basis of unsolicited research 
proposals after the end of the 180-day period beginning on the date 
of the enactment of this Act. 
(3) The amendments made by subsection (c) shall apply with 
respect to follow-on contracts awarded after the end of the 180-day 
period beginning on the date of the enactment of this Act. 
SEC. 924. EVALUATION FACTORS IN AWARD OF CONTRACTS 
(a) EVALUATION FACTORS.—Subsection (a) of section 2305 of title 
10, United States Code, is amended— 
(1) in paragraph (2XAXi)— 
^ '^ 
(A) by striking out "(including price)"; 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3933 
,xt ; ; 
(B) by inserting "(including price)" after "sealed bids"; 
and 
; 
(C) by inserting "(including cost or price)" after "competi-
tive proposals"; and 
(2) by adding at the end the following new paragraph: 
"(3) In prescribing the evaluation factors to be included in each 
solicitation for competitive proposals, the head of an agency shall 
clearly establish the relative importance assigned to the quality of 
the services to be provided (including technical capability, manage-
ment capability, and prior experience of the offeror).". 
(b) CONFORMING AMENDMENT.—Subsection (b) of such section is 
amended by inserting "cost or" in paragraph (4)(B) before "price". 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
10 USC 2305 
apply with respect to solicitations for sealed bids or competitive ^o*®. 
proposals issued after the end of the 180-day period beginning on the 
date of the enactment of this Act. 
SEC. 925. COMPUTATION OF CONTRACT BID PRICES 
(a) IN GENERAL.—Section 2301(a) of title 10, United States Code, is 
amended— 
- 
(1) by striking out "and" at the end of paragraph (5); 
(2) by striking out the period at the end of paragraph (6) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end the following new paragraph: 
"(7) the head of an agency, in issuing a solicitation for a 
contract to be awarded using sealed-bid procedures, not include 
in such solicitation a clause providing for the evaluation of 
prices under the contract for options to purchase additional 
supplies or services under the contract unless the head of the 
agency has determined that there is a reasonable likelihood 
that the options will be exercised.". 
(b) EFFECTIVE DATE.—-Section 2301(a)(7) of title 10, United States 
10 USC 2301 
Code (as added by subsection (a)), shall not apply to solicitations for 
note, 
sealed bids issued before the end of the 180-day period beginning on 
the date of the enactment of this Act. 
SEC. 926. 
PRICES 
FOR SPARE OR REPAIR PARTS 
SOLD COMMERCIALLY 
(a) ESTABLISHMENT OF COMMERCIAL PRICING REQUIREMENT.—(1) 
Section 2323 of title 10, United States Code, is amended to read as 
follows: 
"§ 2323. Commercial pricing for spare or repair parts 
"(a) LIMITATION ON PRICE OF COMMERCIALLY AVAILABLE PARTS.— Contracts. 
Except in the case of an offer submitted with a written statement 
under subsection (b)(2) and except as provided in subsection (c), if the 
head of an agency, using procedures other than competitive proce-
dures, enters into a contract with a contractor for the purchase of 
spare or repair parts which the contractor also offers for sale to the 
general public, the price charged the United States for such parts 
under the contract may not exceed the lowest commercial price 
charged by the contractor in sales of such parts during a period 
described in subsection (b)(1). 
"(b) REQUIREMENTS FOR INCLUSION IN OFFER.—The head of an 
agency, with respect to an offeror who submits an offer to the head 
of an agency to enter into a contract for the supply of spare or repair 
parts under a contract awarded using procedures other than 
100 STAT. 3934 
PUBLIC LAW 99-661—NOV. 14, 1986 
competitive procedures, and who also offers such parts for sale to 
the general public, shall require that the offeror— 
"(1) certify in such offer that, to the best of the knowledge and 
belief of the offeror, the price proposed in the offer does not 
exceed the lowest commercial price at which such offeror sold 
such parts during the most recent regular monthly, quarterly, 
or other period for which sales data are reasonably available; or 
"(2) submit with such offer a written statement— 
J 
"(A) specifying the amount of the difference between the 
price proposed in the offer and thd lowest commercial price 
at which such offeror sold such parts during a period 
described in paragraph (1); and 
"(B) providing a justification for that difference. 
"(c) EXCEPTION TO LIMITATION.—Subsections (a) and (b) do not 
apply in the case of a contract with respect to which the contracting 
officer includes in the file on the contract a written determination 
by such officer that the use of the lowest commercial price with 
respect to such contract is not appropriate because o
f
— 
"(1) national security considerations; or 
"(2) significant differences between the terms of the commer-
cial sales of the parts to be acquired under such contract and 
the terms of such contract, including differences in— 
"(A) quantity; 
"(B) quality; 
"(C) delivery requirements; or 
"(D) other terms and conditions. 
"(d) AUDITING.—(1) In order to verify any certification or state-
ment made under subsection (b) with respect to a contract, the 
contracting officer who awards such contract (or any representative 
of the contracting officer who is an employee of the United States or 
a member of the armed forces), during the time period specified in 
paragraph (2), may examine and audit all records of sales (including 
^ 
contract terms and conditions) maintained by or for the contractor 
that are directly pertinent to sales by the contractor of spare or 
repair parts identical to those covered by the contract during the 
period covered by such certification or statement. 
"(2) The head of an agency shall require an offeror who submits a 
certification or written statement under subsection (b) to make 
available the records, books, data, and documents described in 
paragraph (1) for examination, audit, or reproduction for the pur-
poses of such paragraph during the three-year period beginning on 
the date that the offeror submits such certification or statement to 
such head of an agency. 
"(3) The authority provided by this subsection is in addition to the 
Post, p. 3946. 
authority of the head of an agency under section 2306a of this title. 
"(e) REGULATIONS.—The Secretary of Defense, after consultation 
with the Secretary of Transportation and the Administrator of the 
National Aeronautics and Space Administration, shall prescribe 
regulations to carry out this section. Such regulations may not 
require the disclosure or submission of any data related to any 
element underlying the price of a commercial product not otherwise 
required by law. 
"(f) DEFINITIONS.—In this section: 
"(1) The term 'spare or repair part' means any individual 
piece, part, subassembly, or component which is furnished for 
the logistic support or repair of an end item and not as an end 
item itself. 
-
m 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3935 
V
, 
u^2) The term 'lowest commercial price' means the lowest 
price at which a sale was made to the general public of a 
particular part. Such term does not include the price at which a 
sale was made— 
"(A) to any agency of the United States; 
"(B) to any person for resale by such person after such 
person performs a service or function in connection with 
jy < 
such part that increases the cost of the part, unless the 
agency procuring the part can demonstrate that the agency 
is procuring the part before such service or function has 
I 
been performed by any such person; 
"(C) to a subsidiary, affiliate, or parent business organiza-
tion of the contractor, or any other branch of the same 
business entity; 
"(D) to any person at a price that, for the purpose of 
making a donation, has been substantially discounted below 
the fair market value or regular price of such part; or 
"(E) to a customer located outside the United States. 
^ ^' , 
"(g) APPLICABILITY.—This section does not apply to a contract 
entered into using simplified small purchase procedures established 
under section 2304(g) of this title.". 
(2) The item relating to section 2323 at the beginning of chapter 
137 is amended to read as follows: 
"2323. Commercial pricing for spare or repair parts.". 
(b) EFFECTIVE DATE.—Regulations prescribed under section 2323(e) 10 USC 2323 
of title 10, United States Code (as amended by subsection (a)(1)), J
^
o
*
*
-
shall take effect on the date of the enactment of this Act. 
j 
SEC. 927. ALLOCATION OF OVERHEAD TO PARTS TO WHICH CONTRACTOR 
HAS ADDED LITTLE VALUE 
i 
(a) IN GENERAL.—Section 2304 of title 10, United States Code, is 
amended by adding at the end the following new subsection: 
"(i)(l) The Secretary of Defense shall prescribe by regulation the Regulations. 
manner in which the Department of Defense negotiates prices for 
supplies to be obtained through the use of procedures other than 
competitive procedures, as defined in section 2302(2) of this title. 
"(2) The regulations required by paragraph (1) shall— 
"(A) specify the incurred overhead a contractor may appro-
priately allocate to supplies referred to in that paragraph; and 
"(B) require the contractor to identify those supplies which it 
did not manufacture or to which it did not contribute significant 
value. 
"(3) Such regulations shall not apply to an item of supply included 
in a contract or subcontract for which the price is based on estab-
lished catalog or market prices of commercial items sold in substan-
tial quantities to the general public". 
Oa) DEADLINE.—The Secretary of Defense shall prescribe the regu- 
10 USC 2304 
lations required by section 2304(i) of such title (as added by subsec- note, 
tion (a)) not later than 180 days after the date of the enactment of 
this Act. 
(c) REPEAL.—Section 
1245 of the Department 
of 
Defense 
Authorization Act, 1985 (Public Law 98-525, 98 Stat. 2609), is 
repealed. 
100 STAT. 3936 
PUBLIC LAW 99-661—NOV. 14, 1986 
Contracts. 
10 use 2384 
note. 
SEC. 928. CLARIFICATION OF REQUIREMENTS TO MARK SUPPLIES TO 
IDENTIFY SUPPLIERS AND SOURCES 
(a) EXCEPTION FOR CERTAIN COMMERCIAL ITEMS.—Section 2384(b) of 
title 10, United States Code, is amended— 
(1) by redesignating paragraphs (1), (2), and (3) as subpara-
graphs (A), (B), and (C), respectively; 
(2) by inserting "(1)" after "(b)"; 
' 
;rt ^ -:-
(3) by inserting "(other than a contract described in para-
graph (2))" after "delivery of supplies"; and 
(4) by adding at the end the following new paragraph: 
"(2) Paragraph (1) does not apply to a contract that requires the 
delivery of supplies that are commercial items sold in substantial 
quantities to the general public if the contract— 
"(A) provides for the acquisition of such supplies by the 
Department of Defense at established catalog or market prices; 
or 
"(B) is awarded through the use of competitive procedures.". 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall apply with respect to contracts entered into after the end of 
the 180-day period beginning on the date of the enactment of this 
Act. 
' ' 
PART C—PROCUREMENT PERSONNEL POLICY 
SEC. 931. CONFLICT-OF-INTEREST IN DEFENSE PROCUREMENT 
(a) IN GENERAL.—(1) Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2397a the following new sections: 
10 use 2397b. 
"§ 2397b. Certain former Department of Defense procurement offi-
cials: limitations on employment by contractors 
Contracts. 
"(a)(1) Subject to subsections (c) and (d), a person who is a former 
officer or employee of the Department of Defense or a former or 
retired member of the armed forces may not accept compensation 
, 
,, 
from a contractor during the two-year period beginning on the date 
of such person's separation from service in the Department of 
Defense if— 
"(A) on a majority of the person's working days during the 
two-year period ending on the date of such person's separation 
from service in the Department of Defense, the person per-
formed a procurement function (relating to a contract of the 
Department of Defense) at a site or plant that is owned or 
operated by the contractor and that was the principal location 
of such person's performance of that procurement function; 
"(B) the person performed, on a majority of the person's 
working days during such two-year period, procurement func-
tions relating to a major defense system and, in the per-
formance 
of such 
functions, 
participated 
personally and 
substantially, and in a manner 
involving 
decisionmaking 
. i; 
responsibilities, with respect to a contract for that system 
through contact with the contractor; or 
"(C) during such two-year period the person acted as a 
primary representative of the United States— 
;. 
"(i) in the negotiation of a Department of Defense con-
tract in an amount in excess of $10,000,000 with the con-
tractor; or 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3937 
"(ii) in the negotiation of a settlement of an unresolved 
claim of the contractor in an amount in excess of 
$10,000,000 under a Department of Defense contract. 
"(2) In the application of paragraph (1) to a former officer or 
employee of the Department of Defense or a former or retired 
member of the armed forces, a person's status as a contractor shall 
be determined as of the date of the separation from service in the 
Department of Defense of the officer or employee or member or 
former member involved. 
"(b)(1) Any person who knowingly violates subsection (a)(1) shall 
be subject to a civil fine, in an amount not to exceed $250,000, in a 
civil action brought by the United States in the appropriate district 
court of the United States. 
"(2) Any person who knowingly offers or provides any compensa-
tion to another person, and who knew or should have known that 
the acceptance of such compensation is or would be in violation of 
subsection (a)(1), shall be subject to a civil fine, in an amount not to 
exceed $500,000, in a civil action brought by the United States in the 
appropriate district court of the United States. 
"(c) This section does not apply to any person with respect to— 
"(1) duties described in clause (A) or (B) of subsection (a)(1) 
which were performed while such person was serving— 
' ' 
"(A) in a civilian position for which the rate of pay is less 
•'' 
than the minimum rate of pay payable for grade GS-13 of 
the General Schedule; or 
5 USC 5332. 
"(B) as a member of the armed forces in a pay grade 
• ' ^ 
below pay grade 0-4; or 
"(2) duties described in clause (C) of subsection (a)(1) which 
were performed while such person was serving— 
"(A) in a civilian position for which the rate of pay is less 
than the minimum rate of pay payable for a Senior Execu-
tive Service position; or 
"(B) as a member of the armed forces in a pay grade 
below pay grade 0-7. 
"(d) This section does not prohibit any person from accepting 
compensation from any contractor that, during the fiscal year 
preceding the fiscal year in which such compensation is accepted, 
was not a Department of Defense contractor or was a contractor 
under Department of Defense contracts in a total amount less than 
$10,000,000. 
"(e)(1) Any person may, before accepting any compensation, 
request the appropriate designated agency ethics official to advise 
such person on the applicability of this section to the acceptance of 
such compensation. For purposes of the preceding sentence, the 
appropriate designated agency ethics official is the designated 
agency ethics official of the agency in which such person was 
• ' 
serving at the time such person separated from service in the 
Department of Defense. 
"(2) A request for advice under paragraph (1) shall contain all 
information that is relevant to a determination by the designated 
agency ethics official on such request. 
"(3) Not later than 30 days after the date on which a designated 
SJJ 
| ^ij,.. 
agency ethics official receives a request for advice under paragraph 
(1), such official shall issue a written opinion on the applicability of 
this section to the acceptance of compenstion covered by the request. 
"(4) If a designated agency ethics official, on the basis of a 
complete disclosure as required by paragraph (2), states in a written 
100 STAT. 3938 
PUBLIC LAW 99-661—NOV. 14, 1986 
opinion furnished to any person under this subsection that this 
section is inapplicable to the acceptance of compensation by such 
person from a contractor in a particular case, there shall be a 
conclusive presumption in favor of such person, for the purposes of 
this section, that the person's acceptance of such compensation in 
such case is not a violation of subsection (a)(1). 
"(f) In this section: 
"(1) The term 'compensation' includes any payment, gift, 
benefit, reward, favor, or gratuity— 
"(A) which is provided, directly or indirectly, for services 
rendered by the person accepting such payment, gift, bene-
fit, reward, favor, or gratuity; and 
"(B) which is valued in excess of $250 at the prevailing 
market price. 
f 
"(2)(A) The term 'contractor' means a person— 
"(i) that contracts to supply the Department of Defense 
with goods or services; 
• 
"(ii) that controls or is controlled by a person described in 
clause (i); or 
"(iii) that is under common control with a person 
'i 
described in clause (i). 
"(B) Such term does not include— 
" 1 
"(i) an affiliate or subsidiary of a person described in 
subparagraph (A) that is clearly not engaged in the 
^ 
J 
performance of a Department of Defense contract; or 
' i - 
"(ii) a State or local government. 
"(3) The term 'procurement function' includes, with respect to 
a contract, any function relating to— 
"(A) the negotiation, award, administration, or approval 
of the contract; 
"(B) the selection of a contractor; 
"(C) the approval of changes in the contract; 
t / 
"(D) quality assurance, operational and developmental 
testing, the approval of payment, or auditing under the 
"•• 
contract; or 
"(E) the management of the procurement program. 
"(4) The term 'armed forces' does not include the Coast 
Guard. 
i 
"(5) The term 'major defense system' has the meaning given 
the term 'major system' in section 2302(5) of this title. 
"(g) For the purposes of this section, a person who is a retired 
member or a former member of the armed forces shall be considered 
to have been separated from service in the Department of Defense 
upon the date of the person's discharge or release from active duty. 
10 use 2397c. 
"§ 2397c. Defense contractors: requirements concerning former 
Department of Defense officials 
"(a)(1) Each contract for the procurement of goods or services in 
excess of $100,000 entered into by the Department of Defense shall 
include a provision under which the contractor agrees not to provide 
compensation to a person if the acceptance of such compensation by 
Ante, p. 3936. 
such person would violate section 2397b(a)(l) of this title. 
"(2) Such a contract shall also provide that if the contractor 
knowingly violates a contract provision required by paragraph (1) 
the contractor shall pay to the United States, as liquidated damages 
under the contract, an amount equal to the greater o
f
— 
"(A) $100,000; or 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3939 
"(B) three times the amount of the compensation paid by the 
contractor to the person in violation of such contract provision. 
"(b)(1)(A) Any contractor that was awarded one or more contracts 
Reports. 
by the Department of Defense during the preceding fiscal year in an 
aggregate amount of at least $10,000,000 that is subject during a 
calendar year to a contract provision described in subsection (a) 
shall submit to the Secretary of Defense, not later than April 1 of 
the next year, a written report covering the preceding calendar 
year. Each such report shall list the name of each person (together 
with other information adequate for the Government to identify the 
person) who— 
"(i) is a former officer or employee of the Department of 
Defense or a former or retired member of the armed forces; and 
"(ii) during the preceding calendar year was provided com-
pensation by that contractor, if such compensation was provided 
within two years after such officer, employee, or member left 
service in the Department of Defense. 
"(B) In the case of each person named in a report submitted under 
subparagraph (A), the report shall— 
^' 
"(i) identify the agency in which the person was employed or 
served on active duty during the last two years of the person's 
service with the Department of Defense; 
"(ii) state the person's job title and identify each major 
defense system, if any, on which the person performed any work 
with the Department of Defense during the last two years of the 
person's service with the Department; 
"(iii) contain a complete description of any work that the 
person is performing on behalf of the contractor; and 
"(iv) identify each major defense system on which the person 
has performed any work on behalf of the contractor. 
"(2) A person who knowingly fails to file a report required by 
paragraph (1) shall be subject to an administrative penalty, not to 
exceed $10,000, imposed by the Secretary of Defense after an oppor-
tunity for an agency hearing on the record pursuant to regulations 
prescribed by the Secretary of Defense. The determinations of the 
Secretary shall be included in such record. The determinations of 
the Secretary shall be subject to judicial review under chapter 7 of 
title 5. 
5 use 701 et seg. 
"(3) The Secretary of Defense shall review each report under 
paragraph (1) for the purposes of (A) assessing the accuracy and 
completeness of the report, and (B) identifying possible violations of 
section 2397b(a)(l) of this title or of a contract provision required by 
Ante, p. 3936. 
subsection (a). The Secretary shall report any such possible violation 
to the Attorney General. 
"(4) The Secretary shall make reports submitted under this 
subsection available to any Member of Congress upon request. 
"(d) Subsection (g) of section 2397b of this title, and the definitions 
prescribed in subsection (f) of such section, apply to this section.". 
(2) The table of sections at the beginning of chapter 141 of title 10, 
United States Code, is amended by inserting after the item relating 
to section 2397a the following new items: 
"2397b. Certain former Department of Defense procurement officials: limitations on 
employment by contractors. 
"2397c. Defense contractors: requirements concerning former 
Department of 
Defense officials.". 
100 STAT. 3940 
PUBLIC LAW 99-661—NOV. 14, 1986 
(b) REPEAL.—Section 921 of the Defense Procurement Improve-
ment Act of 1985 (title IX of Public Law 99-145; 10 U.S.C. 2397a 
note) is repealed. 
10 use 2397b 
(c) EFFECTIVE DATES.—(1) Subject to paragraph (2), this section and 
^°^- 
the amendments made by this section shall take effect 180 days 
after the date of the enactment of this Act. 
(2)(A) The amendments made by this section— 
-
(i) do not preclude the continuation of employment that began 
before the effective date of this section or the acceptance of 
' ^ 
compensation for such employment; and 
(ii) do not, except as provided in subparagraph (B), apply to a 
person whose service in the Department of Defense terminates 
before the effective date of this section. 
(B) Subparagraph (A)(ii) does not preclude the application of the 
amendments made by this section to a person with respect to service 
in the Department of Defense by such person on or after the 
effective date of this section. 
10 use 1621 
SEC. 932. PLAN FOR ENHANCEMENT OF PROFESSIONALISM OF ACQUISI-
note. 
TION PERSONNEL 
(a) DEVELOPMENT OF PLAN.—The Secretary of Defense shall 
develop a plan for a personnel initiative designed to enhance the 
professionalism of, and career opportunities available to, acquisition 
personnel of the Department of Defense. 
(b) REQUIREMENTS FOR PLAN.—The plan required to be developed 
under subsection (a) shall— 
(1) include standards for the examination, appointment, 
classification, training, and assignment of acquisition personnel; 
' 
and 
(2) assess the feasibility and desirability o
f
— 
(A) the designation of certain acquisition positions of the 
' •' 
Department of Defense as professional positions; and 
'^ ' 
(B) the establishment of an alternative personnel system 
that would— 
(i) include acquisition positions that are designated as 
professional positions; and 
(ii) include quality of performance as a factor in 
promotions for persons in such positions. 
(c) REPORT.—(1) The Secretary shall submit to Congress a report— 
(A) describing the plan developed under subsection (a); and 
(B) recommending any changes in existing law that would 
' 
facilitate the enhancement of the professionalism of, and career 
opportunities available to, acquisition personnel of the Depart-
ment of Defense. 
(2) The report required by subparagraph (A) shall be submitted 
^ not later than April 15,1987. 
' 
(d) EFFECTIVE DATE.—The report required by subsection (c) shall 
be submitted not later than the end of the one-year period beginning 
on the date of the enactment of this Act. 
SEC. 933. EDUCATIONAL REQUIREMENTS FOR ACQUISITION PERSONNEL 
Section 1622(b)(1) of title 10, United States Code, is amended by 
striking out "attended" and inserting in lieu thereof "completed". 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3941 
SEC. 934. PLAN FOR COORDINATION OF DEFENSE ACQUISITION EDU- 
10 USC 1621 
CATIONAL PROGRAMS 
^°^-
(a) COORDINATION PLAN.—The Secretary of Defense shall submit Reports. 
, , 
to the Committees on Armed Services of the Senate and House of 
- .. 
Representatives a report containing a plan for the coordination of 
educational programs managed by the Department of Defense for 
acquisition personnel of the Department. 
(b) REQUIREMENTS FOR PLAN.—The plan required by subsection (a) 
shall provide for— 
(1) the education of acquisition personnel of the Department 
i 
of Defense through programs offered by the Department or 
through educational courses offered by organizations other than 
the Department; 
0!' 
(2) the education of acquisition personnel of the Department 
• 
in various acquisition specialties, including contracting, logis-
tics, quality, program management, systems engineering, 
production, and manufacturing; and 
(3) the elimination of duplication of functions and courses by 
schools of the Department that provide educational courses for 
acquisition personnel of the Department. 
(c) EFFECTIVE DATE.—The report required by subsection (a) shall 
be submitted not later than the end of the one-year period beginning 
on the date of the enactment of this Act. 
PART D—REQUIREMENTS RELATING TO DEFENSE CONTRACTORS 
SEC. 941. 
CODIFICATION 
AND 
EXTENSION 
OF 
PROHIBITION 
ON PERSONS 
CONVICTED 
OF 
DEFENSE-CONTRACT 
RELATED 
FELONIES 
AND 
RELATED CRIMINAL PENALTY ON DEFENSE CONTRACTORS 
(a) IN GENERAL.—(1) Chapter 141 of title 10, United States Code, is 
, 
amended by adding at the end the following new section: 
n 
"§ 2408. Prohibition on persons convicted of defense-contract 
10 USC 2408. 
related felonies and related criminal penalty on defense 
.,; 
contractors 
"(a) PROHIBITION.—A person who is convicted of fraud or any 
other felony arising out of a contract with the Department of 
Defense shall be prohibited from working in a management or 
supervisory capacity on any defense contract, or serving on the 
board of directors of any defense contractor, for a period, as deter-
mined by the Secretary of Defense, of not less than one year from 
.,. >
. 
the date of the conviction. 
"(b) CRIMINAL PENALTY.—A defense contractor shall be subject to 
a criminal penalty of not more than $500,000 if such contractor is 
convicted of knowingly— 
"(1) employing a person under a prohibition under subsection 
(a); or 
"(2) allowing such a person to serve on the board of directors 
of such contractor.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
) 
"2408. Prohibition on persons convicted of defense-contract related felonies and 
related criminal penalty on defense contractors.". 
100 STAT. 3942 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 u s e 2304 
note. 
10 u s e 2408 
note. 
10 u s e 2409. 
Reports. 
Discrimination, 
prohibition. 
10 u s e 2409 
note. 
eontracts. 
(b) 
CONFORMING 
AMENDMENT.—Section 
932 
of 
the 
Defense 
Procurement Improvement Act of 1985 (title IX of Public Law 99-
145; 99 Stat. 699) is repealed. 
(c) EFFECTIVE DATE.—Section 2408 of title 10, United States Code 
(as added by subsection (a)(1)), shall apply with respect to employ-
ment or service on a board of directors after the date of the 
enactment of this Act. 
SEC. 942, PROTECTION OF CONTRACTOR EMPLOYEES FROM REPRISAL 
FOR DISCLOSURE OF CERTAIN INFORMATION 
(a) IN GENERAL.—(1) Chapter 141 of title 10, United States Code, is 
amended by adding after section 2408 (as added by section 941) the 
following new section: 
"§ 2409. Contractor employees: protection from reprisal for disclo-
sure of certain information 
"(a) PROHIBITION OF REPRISALS.—An employee of a defense con-
tractor may not be discharged, demoted, or otherwise discriminated 
against as a reprisal for disclosing to a Member of Congress or an 
authorized official of the Department of Defense or the Department 
of Justice information relating to a substantial violation of law 
related to a defense contract (including the competition for or 
negotiation of a defense contract). 
"(b) INVESTIGATION OF COMPLAINTS.—A person who believes that 
the person has been subjected to a reprisal prohibited by subsection 
(a) may submit a complaint to the Inspector General of the Depart-
ment of Defense. Unless the Inspector General determines that the 
complaint is frivolous, the Inspector General shall investigate the 
complaint and, upon completion of such investigation, submit a 
report of the findings of the investigation to the person, the contrac-
tor concerned, and the Secretary of Defense. 
"(c) CONSTRUCTION.—Nothing in this section may be construed to 
authorize the discharge of, demotion of, or discrimination against an 
employee for a disclosure other than a disclosure protected by 
subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2408 (as added 
by section 941) the following new item: 
"2409. Contractor employees: protection from reprisal for disclosure of certain 
information.'. 
(b) EFFECTIVE DATE.—Section 2409 of title 10, United States Code 
(as added by subsection (a)(1)), shall apply with respect to any 
reprisal action taken on or after the date of the enactment of this 
Act. 
SEC. 943. REVISION OF WORK MEASUREMENT PROVISIONS 
(a) IN GENERAL.—(1) Section 2406 of title 10, United States Code, is 
amended to read as follows: 
"§ 2406. Availability of cost and pricing records 
"(a) REQUIREMENT.—(1) The head of an agency shall require a 
contractor under a covered contract with that agency to make 
available in a timely manner to any authorized representative of the 
head of the agency records of the contractor's cost and pricing data 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3943 
described in subsection (b) with respect to work under the covered 
contract. 
"(2) The head of the agency (or the representative of the head of 
the agency) shall be entitled to have access to records in the form 
and manner maintained by the contractor. 
"(b) COVERED RECORDS.—Records covered by subsection (a) include 
(for a covered contract and end items under such a contract) the 
following: 
"(1) Work measurement system data (and any revision to such 
data), including records of labor content expressed in standard 
hours of work content for— 
(A) the contractor's proposal for the contract; and 
(B) the contract as negotiated. 
"(2) The costs described in subsection (c)— 
"(A) as proposed by the contractor; 
"(B) as negotiated by the contractor with the head of the 
' 
agency; and 
"(C) as incurred by the contractor. 
"(3) Bills of material. 
"(c) COVERED COSTS.—Costs referred to in subsection (b)(2) are— 
"(1) labor costs; 
"(2) material costs; 
"(8) subcontract costs; 
' 
"(4) overhead costs; 
i'•< 
. 
" L > 
"(5) general and administrative costs; and 
"(6) fee or profit. 
"(d) NATURE OF RECORDS TO BE MAINTAINED.—Nothing in this 
section shall require a contractor under a covered contract to— 
"(1) collect or maintain additional data not otherwise col-
lected or maintained by the contractor, or 
"(2) maintain data in a form or manner different from that in 
which the contractor maintains such data. 
"(e) REGULATIONS.—The Secretary of Defense shall prescribe regu-
lations to carry out this section. Such regulations shall specify the 
period for which records shall be covered by this section, which shall 
not be less than three years after final payment under the contract 
to which the records pertain. 
"(f) DEFINITIONS.—In this section: 
"(1) The term 'head of an agency' means the Secretary of 
Defense or the Secretary of a military department. 
"(2) The term 'covered contract means a manufacturing 
contract— 
"(A) that is awarded under a major defense acquisition 
program (as such term is defined in 2432(a) of this title); and lo USC 2432. 
"(B) that is subject to the provisions of section 2306a of 
this title. 
Post, p. 3946. 
"(3) The term 'work measurement system data' means— 
^ 
"(A) data generated from time standard setting, time 
monitoring, and variance analysis; and 
"(B) such data described in subparagraph (A) as in-
cluded in planning, cost estimating, and 
productivity 
improvement. 
"(4) The term 'authorized representative' means a representa-
tive of the head of an agency who is an employee of the United 
States or a member of the armed forces.". 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 141 of such title is amended to read as follows: 
100 STAT. 3944 
PUBLIC LAW 99-661—NOV. 14, 1986 
"2406. Availability of cost and pricing records.". 
10 use 2406 
(b) APPLICABILITY OF SECTION.—Section 2406 of title 10, United 
note. 
States Code, as amended by subsection (a), shall apply with respect 
to— 
(1) contracts entered into on or after the date of the enact-
ment of this Act; and 
(2) contracts entered into before such date that are not com-
pleted before such date. 
10 use 2406 
(c) DEADLINE FOR REGULATIONS.—The Secretary of Defense shall 
"°**- 
prescribe regulations as required by section 2406(e) of title 10, 
United States Code (as amended by subsection (a)(1)), not later than 
the end of the 180-day period beginning on the date of the enact-
ment of this Act. 
PART E—MISCELLANEOUS 
, 
SEC. 951. CONTRACTING WITH FIRMS OWNED OR CONTROLLED BY 
GOVERNMENTS THAT SUPPORT TERRORISM 
(a) CONSIDERATION OF NATIONAL INTERESTS WITH RESPECT TO 
DEFENSE CONTRACTS.—(1) Chapter 137 of title 10, United States 
Code, is amended by adding after the item relating to section 2326 
(as added by section 908) the following new section: 
10 use 2327. 
"§ 2327. Contracts: consideration of national security objectives 
"(a) DISCLOSURE OF OWNERSHIP OR CONTROL BY A FOREIGN GOVERN-
MENT.—The head of an agency shall require a firm or a subsidiary of 
a firm that submits a bid or proposal in response to a solicitation 
issued by the Department of Defense to disclose in that bid or 
proposal any significant interest in such firm or subsidiary (or, in 
the case of a subsidiary, in the firm that owns the subsidiary) that is 
owned or controlled (whether directly or indirectly) by a foreign 
government or an agent or instrumentality of a foreign government, 
if such foreign government is the government of a country that the 
Secretary of State determines under section 6(j)(l)(A) of the Export 
Administration Act of 1979 (50 U.S.C. 24050")(1)(A)) has repeatedly 
provided support for acts of international terrorism. 
"(b) PROHIBITION ON ENTERING INTO CONTRACTS AGAINST THE 
INTERESTS OF THE UNITED STATES.—Except as provided in subsection 
(c), the head of an agency may not enter into a contract with a firm 
or a subsidiary of a firm i
f
— 
"(1) a foreign government owns or controls (whether directly 
or indirectly) a significant interest in such firm or subsidiary 
,,, 
(or, in the case of a subsidiary, in the firm that owns the 
subsidiary); and 
"(2) such foreign government is the government of a country 
that the Secretary of State determines under section 6(j)(l)(A) of 
the Export Administration Act of 1979 (50 U.S.C. 2405(jXl)(A)) 
has repeatedly provided support for acts of international 
terrorism. 
"(c) WAIVER.—dXA) If the Secretary of Defense determines under 
paragraph (2) that entering into a contract with a firm or a subsidi-
ary of a firm described in subsection (b) is not inconsistent with the 
national security objectives of the United States, the head of an 
agency may enter into a contract with such firm or subsidiary after 
the date on which such head of an agency submits to Congress a 
report on the contract. 
"(B) A report under subparagraph (A) shall include the following: 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3945 
"(i) The identity of the foreign government concerned. 
C 
• 
"(ii) The nature of the contract. 
,'; 
"(iii) The extent of ownership or control of the firm or subsidi-
ary concerned (or, if appropriate in the case of a subsidiary, of 
the firm that owns the subsidiary) by the foreign government 
concerned or the agency or instrumentality of such foreign 
government. 
"(iv) The reasons for entering into the contract. 
"(C) After the head of an agency submits a report to Congress 
under subparagraph (A) with respect to a firm or a subsidiary, such 
head of an agency is not required to submit a report before entering 
into any subsequent contract with such firm or subsidiary unless the 
information required to be included in such report under subpara-
graph (B) has materially changed since the submission of the pre-
vious report. 
"(2) Upon the request of the head of an agency, the Secretary of 
Defense shall determine whether entering into a contract with a 
firm or subsidiary described in subsection (b) is inconsistent with the 
national security objectives of the United States. In making such a 
determination, the Secretary of Defense shall consider the following: 
"(A) The relationship of the United States with the foreign 
government concerned. 
"(B) The obligations of the United States under international 
agreements. 
"(C) The extent of the ownership or control of the firm or 
subsidiary (or, if appropriate in the case of a subsidiary, of the 
firm that owns the subsidiary) by the foreign government or an 
agent or instrumentality of the foreign government. 
"(D) Whether payments made, or information made available, 
to the firm or subsidiary under the contract could be used for 
purposes hostile to the interests of the United States. 
"(d) APPLICABILITY.—This section does not apply to a contract for 
an amount less than $100,000. 
"(2) This section does not apply to the Coast Guard or the National 
Aeronautics and Space Administration. 
"(e) REGULATIONS.—The Secretary of Defense, after consultation 
with the Secretary of State, shall prescribe regulations to carry out 
this section. Such regulations shall include a definition of the term 
'significant interest'.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2326 (as added 
by section 908) the following new item: 
"2327. Contracts: consideration of national security objectives.". 
(b) CONFORMING AMENDMENT.—Section 503 of the Military Retire-
ment Reform Act of 1986 (Public Law 99-348; 100 Stat. 708) is 
repealed. 
(c) EFFECTIVE DATE.—Section 2327 of title 10, United States Code 
(as added by subsection (a)(1)), shall apply to contracts entered into 
by the Secretary of Defense after the end of the 90-day period 
beginning on the date of the enactment of this Act. 
SEC. 952. TRUTH-IN-NEGOTIATIONS ACT AMENDMENTS 
(a) STRENGTHENING OF PREVENTION OF UNEARNED AND EXCESSIVE 
CONTRACTOR PROFITS.—Chapter 137 of title 10, United States Code, 
is amended by inserting after section 2306 the following new section: 
Defense and 
national 
security. 
International 
agreements. 
10 u s e 2327 
note. 
100 STAT. 3946 
PUBLIC LAW 99-661—NOV. 14, 1986 
Contracts. 
"§ 2306a. Cost or pricing data: truth in negotiations 
10 u s e 2306a. 
,u ^-r, 
^ 
T^ 
T^ 
^ 
, 
,T„ 
(a) REQUIRED COST OR PRICING DATA AND CERTIFICATION.—(1) 
The 
head of an agency shall require offerors, contractors, and sub-
contractors to make cost or pricing data available as follows: 
"(A) An offeror for a prime contract under this chapter to be 
entered into using procedures other than sealed-bid procedures 
shall be required to submit cost or pricing data before the award 
of the contract if the price of the contract to the United States is 
expected to exceed $100,000. 
"(B) The contractor for a contract under this chapter shall be 
required to submit cost or pricing data before the pricing of a 
change or modification to the contract if the price adjustment is 
expected to exceed $100,000 (or such lesser amount as may be 
prescribed by the head of the agency). 
"(C) An offeror for a subcontract (at any tier) of a contract 
under this chapter shall be required to submit cost or pricing 
data before the award of the subcontract i
f
— 
"(i) the price of the subcontract is expected to exceed 
'., 
$100,000; and 
:^'.. 
"(ii) the prime contractor and each higher-tier sub-
contractor have been required to make available cost or 
, 
pricing data under this section. 
"(D) The subcontractor for a subcontract covered by subpara-
graph (C) shall be required to submit cost or pricing data before 
the pricing of a change or modification to the subcontract if the 
price adjustment is expected to exceed $100,000 (or such lesser 
amount as may be prescribed by the head of the agency). 
"(2) A person required, as an offeror, contractor, or subcontractor, 
to submit cost or pricing data under paragraph (1) (or required by 
the head of the agency concerned to submit such data under subsec-
tion (c)) shall be required to certify that, to the best of the person's 
knowledge and belief, the cost or pricing data submitted are 
accurate, complete, and current. 
"(3) Cost or pricing data required to be submitted under para-
graph (1) (or under subsection (c)), and a certification required to be 
submitted under paragraph (2), shall be submitted— 
"(A) in the case of a submission by a prime contractor (or an 
offeror for a prime contract), to the contracting officer for the 
contract (or to a designated representative of the contracting 
officer); or 
"(B) in the case of a submission by a subcontractor (or an 
offeror for a subcontract), to the prime contractor. 
"(4) Except as provided under subsection (b), this section applies to 
contracts entered into by the head of an agency on behalf of a 
foreign government. 
"(5) The head of the agency may waive the requirement under this 
, 
subsection for a contractor, subcontractor, or offeror to submit cost 
or pricing data. For purposes of paragraph (l)(C)(ii), a contractor or 
subcontractor granted such a waiver shall be considered as having 
been required to make available cost or pricing data under this 
section. 
"(b) EXCEPTIONS.—This section need not be applied to a contract or 
subcontract— 
"(1) for which the price agreed upon is based on— 
"(A) adequate price competition; 
' 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3947 
"(B) established catalog or market prices of commercial 
items sold in substantial quantities to the general public; or 
"(C) prices set by law or regulation; or 
"(2) in an exceptional case when the head of the agency 
determines that the requirements of this section may be waived 
and states in writing his reasons for such determination. 
"(c) AUTHORITY TO REQUIRE COST OR PRICING DATA.—When cost or 
pricing data are not required to be submitted by subsection (a), such 
data may nevertheless be required to be submitted by the head of 
the agency if the head of the agency determines that such data are 
necessary for the evaluation by the agency of the reasonableness of 
the price of the contract or subcontract. 
"(d) PRICE REDUCTIONS FOR DEFECTIVE COST OR PRICING DATA.— 
(1)(A) A prime contract (or change or modification to a prime 
contract) under which a certificate under subsection (a)(2) is re-
quired shall contain a provision that the price of the contract to the 
United States, including profit or fee, shall be adjusted to exclude 
any significant amount by which it may be determined by the head 
of the agency that such price was increased because the contractor 
(or any subcontractor required to make available such a certificate) 
submitted defective cost or pricing data. 
"(B) For the purposes of this section, defective cost or pricing data 
are cost or pricing data which, as of the date of agreement on the 
price of the contract (or another date agreed upon between the 
parties), were inaccurate, incomplete, or noncurrent. If for purposes 
of the preceding sentence the parties agree upon a date other than 
the date of agreement on the price of the contract, the date agreed 
upon by the parties shall be as close to the date of agreement on the 
price of the contract as is practicable. 
"(2) In determining for purposes of a contract price adjustment 
under a contract provision required by paragraph (1) whether, and 
to what extent, a contract price was increased because the contrac-
tor (or a subcontractor) submitted defective cost or pricing data, it 
shall be a defense that the United States did not rely on the 
defective data submitted by the contractor or subcontractor. 
"(3) It is not a defense to an adjustment of the price of a contract 
under a contract provision required by paragraph (1) that— 
"(A) the price of the contract would not have been modified 
even if accurate, complete, and current cost or pricing data had 
been submitted by the contractor or subcontractor because the 
contractor or subcontractor— 
"(i) was the sole source of the property or services pro-
cured; or 
"(ii) otherwise was in a superior bargaining position with 
respect to the property or services procured; 
"(B) the contracting officer should have known that the cost 
and pricing data in issue were defective even though the con-
tractor or subcontractor took no affirmative action to bring the 
character of the data to the attention of the contracting officer; 
"(C) the contract was based on an agreement between the 
contractor and the United States about the total cost of the 
contract and there was no agreement about the cost of each 
item procured under such contract; or 
"(D) the prime contractor or subcontractor did not submit a 
certification of cost and pricing data relating to the contract as 
required under subsection (a)(2). 
100 STAT. 3948 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(4)(A) A contractor shall be allowed to offset an amount against 
the amount of a contract price adjustment under a contract provi-
sion required by paragraph (1) i
f
— 
"(i) the contractor certifies to the contracting officer (or to a 
designated representative of the contracting officer) that, to the 
best of the contractor's knowledge and belief, the contractor is 
entitled to the offset; and 
"(ii) the contractor proves that the cost or pricing data were 
available before the date of agreement on the price of the 
contract (or price of the modification) and that the data were 
not submitted as specified in subsection (a)(3) before such date. 
"(B) A contractor shall not be allowed to offset an amount other-
wise authorized to be offset under subparagraph (A) i
f
— 
"(i) certification under subsection (a)(2) with respect to the 
cost or pricing data involved was known to be false when signed; 
or 
"(ii) the United States proves that, had the cost or pricing data 
referred to in subparagraph (A)(ii) been submitted to the United 
States before the date of agreement on the price of the contract 
(or price of the modification), the submission of such cost or 
pricing data would not have resulted in an increase in that price 
in the amount to be offset. 
"(e) INTEREST AND PENALTIES FOR CERTAIN OVERPAYMENTS.—(1) If 
the United States makes an overpayment to a contractor under a 
contract with the Department of Defense subject to this section and 
the overpayment was due to the submission by the contractor of 
defective cost or pricing data, the contractor shall be liable to the 
United States— 
"(A) for interest on the amount of such overpayment, to be 
computed— 
"(i) for the period beginning on the date the overpayment 
was made to the contractor and ending on the date the 
'' 
= 
contractor repays the amount of such overpayment to 
' 
the United States; and 
"(ii) at the current rate prescribed by the Secretary of the 
^
^ 
Treasury under section 6621 of the Internal Revenue Code 
Ante, p. 2095. 
of 1954; and 
26 use 6621. 
"(B) jf the submission of such defective data was a knowing 
submission, for an additional amount equal to the amount of the 
overpayment. 
"(2) Except as provided under subsection (d), the liability of a 
• contractor under this subsection shall not be affected by the contrac-
tor's refusal to submit a certification under subsection (a)(2) with 
respect to the cost or pricing data involved. 
"(f) RIGHT OF UNITED STATES TO EXAMINE CONTRACTOR RECORDS.— 
(1) For the purpose of evaluating the accuracy, completeness, and 
currency of cost or pricing data required to be submitted by this 
section with respect to a contract or subcontract, the head of the 
agency, acting through any authorized representative of the head of 
the agency who is an employee of the United States or a member of 
the armed forces, shall have the right to examine all records of the 
contractor or subcontractor related to— 
"(A) the proposal for the contract or subcontract; 
'•- 
"(B) the discussions conducted on the proposal; 
^
^ 
"(C) pricing of the contract or subcontract; or 
"(D) performance of the contract or subcontract. 
^ 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3949 
"(2) The right of the head of an agency under paragraph (1) shall 
expire three years after final payment under the contract or sub-
contract. 
"(3) In this subsection, the term 'records' includes books, docu-
ments, and other data. 
"(g) COST OR PRICING DATA DEFINED.—In this section, the term 
'cost or pricing data' means all information that is verifiable and 
that, as of the date of agreement on the price of a contract (or the 
price of a contract modification), a prudent buyer or seller would 
reasonably expect to affect price negotiations significantly. Such 
term does not include information that is judgmental, but does 
include the factual information from which a judgment was 
derived.". 
(b) CONFORMING AMENDMENTS.—(1) Subsection (f) of section 2306 
of such title is amended to read as follows: 
10 USC 2306. 
"(D So-called 'truth-in-negotiations' provisions relating to cost or 
pricing data to be submitted by certain contractors and subcontrac-
tors are provided in section 2306a of this title.". 
Ante, p. 3946. 
(2) Section 934(a) of the Defense Procurement Improvement Act of 10 USC 2304 
1985 (title IX of Public Law 99-145; 99 Stat. 700) is repealed, note. 
(c) CLERICAL AMENDMENTS.—(1) The heading of section 2306 of 
title 10, United States Code, is amended to read as follows: 
"§ 2306. Kinds of contracts". 
(2) The table of sections at the beginning of chapter 137 of such 
title is amended by striking out the item relating to section 2306 and 
inserting in lieu thereof the following: 
"2306. Kinds of contracts. 
"2306a. Cost or pricing data: truth in negotiations.". 
(d) EFFECTIVE DATES.—(1) Except as provided in paragraph (2), 10 USC 2306a 
section 2306a of title 10, United States Code (as added by subsection 
note. 
(a)), and the amendment and repeal made by subsection (b), shall 
apply with respect to contracts or modifications on contracts entered 
into after the end of the 120-day period beginning on the date of the 
enactment of this Act. 
(2) Subsection (e) of such section shall apply with respect to 
contracts or modifications on contracts entered into after Novem-
ber 7, 1985. 
SEC. 953. RIGHTS IN TECHNICAL DATA 
(a) RIGHTS IN TECHNICAL DATA.—Subsection (a) of section 2320 of 
title 10, United States Code, is amended to read as follows: 
"(a)(1) The Secretary of Defense shall prescribe regulations to 
Regulations, 
define the legitimate interest of the United States and of a contrac-
tor or subcontractor in technical data pertaining to an item or 
process. Such regulations shall be included in regulations of the 
Department of Defense prescribed as part of the Federal Acquisition 
Regulation. Such regulations may not impair any right of the 
United States or of any contractor or subcontractor with respect to 
patents or copyrights or any other right in technical data otherwise 
established by law. 
"(2) Such regulations shall include the following provisions: 
"(A) In the case of an item or process that is developed by a 
. 
contractor or subcontractor exclusively with Federal funds, the 
United States shall have the unlimited right to— 
100 STAT. 3950 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(i) use technical data pertaining to the item or process; 
- J i i - 
•'•'-. 
o r 
"(ii) release or disclose the technical data to persons 
' 
outside the government or permit the use of the technical 
data by such persons. 
^' 
"(B) Except as provided in subparagraphs (C) and (D), in the 
case of an item or process that is developed by a contractor or 
subcontractor exclusively at private expense, the contractor or 
subcontractor may restrict the right of the United States to 
release or disclose technical data pertaining to the item or 
process to persons outside the government or permit the use of 
the technical data by such persons. 
"(C) Subparagraph (B) does not apply to technical data that— 
. 
, 
'" 
"(i) constitutes a correction or change to data furnished 
by the United States; 
"(ii) relates to form, fit, or function; 
, , - 
"(iii) is necessary for operation, maintenance, installa-
tion, or training (other than detailed manufacturing or 
r , 
process data); or 
t 
"(iv) is otherwise publicly available or has been released 
or disclosed by the contractor or subcontractor without 
restriction on further release or disclosure. 
"(D) Notwithstanding subparagraph (B), the United States 
may release or disclose technical data to persons outside the 
Government, or permit the use of technical data by such per-
sons, i
f
— 
"(i) such release, disclosure, or use— 
"(I) is necessary for emergency repair and overhaul; 
or 
"(II) is a release or disclosure of technical data (other 
^ 
than detailed manufacturing or process data) to, or use 
of such data by, a foreign government that is in the 
; 
interest of the United States and is required for 
evaluational or informational purposes; 
(ii) such release, disclosure, or use is made subject to a 
prohibition that the person to whom the data is released or 
; .• 
disclosed may not further release, disclose, or use such data; 
and 
"(iii) the contractor or subcontractor asserting the restric-
tion is notified of such release, disclosure, or use. 
' 
"(E) In the case of an item or process that is developed in part 
with Federal funds and in part at private expense, the respec-
;i:tuH,.H 
tive rights of the United States and of the contractor or sub-
contractor in technical data pertaining to such item or process 
shall be agreed upon as early in the acquisition process as 
practicable (preferably during contract negotiations), based 
upon consideration of all of the following factors: 
"(i) The statement of congressional policy and objectives 
-
* 
in section 200 of title 35, the statement of purposes in 
'^ ' ' 
section 2(b) of the Small Business Innovation Development 
Act of 1982 (15 U.S.C. 638 note), and the declaration of 
policy in section 2 of the Small Business Act (15 U.S.C. 631). 
(> 
"(ij) "pj^g interest of the United States in increasing com-
petition and lowering costs by developing and locating 
alternative sources of supply and manufacture. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3951 
h 
"(iii) The interest of the United States in encouraging 
contractors to develop at private expense items for use by 
the Government. 
"(F) A contractor or subcontractor (or a prospective contrac-
tor or subcontractor) may not be required, as a condition of 
being responsive to a soUcitation or as a condition for the award 
of a contract, to sell or otherwise relinquish to the United States 
any rights in technical data except— 
"(i) rights in technical data described in subparagraph 
(C);or 
"(ii) under the conditions described in subparagraph (D). 
"(G) The Secretary of Defense may— 
"(i) negotiate and enter into a contract with a contractor 
or subcontractor for the acquisition of rights in technical 
data pertaining to an item or process developed by such 
contractor or subcontractor exclusively at private expense 
if necessary to develop alternative sources of supply and 
manufacture; or 
"(ii) agree to restrict rights of the United States in tech-
nical data pertaining to an item or process developed 
entirely or in part with Federal funds if the United States 
receives a royalty-free license to use, release, or disclose the 
data for purposes of the United States (including purposes 
of competitive procurement). 
"(3) The Secretary of Defense shall define the terms 'developed' 
and 'private expense' in regulations prescribed under paragraph (1). 
"(4) For purposes of this subsection, the term 'Federal Acquisition 
Regulation' means the single system of Government-wide procure-
ment regulations as defined in section 4(4) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 403(4)).". 
(b) VALIDATION OF PROPRIETARY DATA RESTRICTIONS.—Subsections 
(a) and (b) of section 2321 of title 10, United States Code, are 
amended to read as follows: 
r ., :• 
"(a) A contract for supplies or services entered into by the Depart-
ment of Defense which provides for the delivery of technical data 
shall provide that a contractor or subcontractor at any tier shall be 
prepared to furnish to the contracting officer a written justification 
for any restriction asserted by the contractor or subcontractor on 
the right of the United States to use such technical data. 
"(b)(1) The Secretary of Defense shall ensure that there is a 
thorough review of the appropriateness of any restriction on the 
right of the United States to release or disclose technical data 
delivered under a contract to persons outside the Government, or to 
permit the use of such technical data by such persons. Such review 
shall be conducted before the end of the three-year period beginning 
on the date on which final payment is made on a contract under 
which technical data is required to be delivered, or the date on 
which the technical data is delivered under such contract, which-
ever is later. 
"(2)(A) If the Secretary determines, at any time before the end of 
the three-year period beginning on the date on which final payment 
is made on a contract under which technical data is required to be 
delivered, or the date on which the technical data is delivered under 
such contract, whichever is later, that a challenge to a restriction is 
warranted, the Secretary shall provide written notice to the contrac-
tor or subcontractor asserting the restriction. Such a determination 
shall be based on a finding by the Secretary that reasonable grounds 
100 STAT. 3952 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 use 2320 
note. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
10 use 2320 
note. 
10 use 2328. 
exist to question the current validity of the asserted restriction and 
that the continued adherence to the asserted restriction by the 
United States would make it impracticable to procure the item 
competitively at a later time. Such notice shall— 
"(i) state the specific grounds for challenging the asserted 
restriction; 
"(ii) require a response within 60 days justifying the current 
validity of the asserted restriction; and 
"(iii) state that evidence of a validation,by the Department of 
Defense of a restriction identical to the asserted restriction 
within the three-year period preceding the challenge shall serve 
as justification for the asserted restriction if— 
"(I) the validation occurred after a review of the validated 
restriction under this subsection; and 
"(II) the validated restriction was asserted by the same 
contractor or subcontractor (or any licensee of such contrac-
tor or subcontractor) to which such notice is being provided. 
"(B) Notwithstanding subparagraph (A), the United States may 
challenge a restriction on the release, disclosure, or use of technical 
data delivered under a contract at any time if such technical data— 
"(i) is publicly available; 
"(ii) has been furnished to the United States without restric-
tion; or 
"(iii) has been otherwise made available without restriction.". 
(c) CONFORMING AMENDMENTS.—Section 1202 of the Department 
of Defense Authorization Act, 1985 (10 U.S.C. 2301 note), is 
amended— 
(1) by inserting "and" at the end of paragraph (4); 
(2) by striking out "; and" at the end of paragraph (5) and 
inserting in lieu thereof a period; and 
(3) by striking out paragraph (6). 
(d) DEADLINE FOR REVISION OF REGULATIONS.—(1) Proposed regula-
tions under section 2320(a)(1) of title 10, United States Code (as 
amended by subsection (a)), shall be published in the Federal Reg-
ister for comment not later than 90 days after the date of the 
enactment of this Act. 
(2) Proposed final regulations under such section shall be pub-
lished in the Federal Register not later than 180 days after the date 
of the enactment of this Act. 
(e) EFFECTIVE DATE.—The amendments made by subsections (a) 
and (b) shall apply to contracts for which solicitations are issued 
after the end of the 210-day period beginning on the date of the 
enactment of this Act. 
SEC. 954. RECOVERY OF COSTS TO PROVIDE TECHNICAL DATA 
(a) I N GENERAL.—(1) Chapter 137 of title 10, United States Code, is 
amended by adding after section 2327 (as added by section 951) the 
following new section: 
"§ 2328. Release of technical data 
"(a) I N GENERAL.—(1) The Secretary of Defense shall, if required 
to release technical data under section 552 of title 5 (relating to the 
Freedom of Information Act), release technical data to a person 
requesting such a release if the person pays all reasonable costs 
attributable to search and duplication. 
h. . 
; : = > • ; ; 
t j ; 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 3953 
"(2) The Secretary of Defense shall prescribe regulations, pursu-
ant to notice and receipt of public comment, specifying a uniform 
schedule of fees under this section. 
"(b) DISPOSITION OF COSTS.—An amount received under this 
section— 
"(1) shall be retained by the Department of Defense or the 
element of the Department of Defense receiving the amount; 
and 
"(2) shall be merged with and available for the same purpose 
and the same time period as the appropriation from which the 
costs incurred in complying with requests for technical data 
were paid. 
"(c) WAIVER.—The Secretary of Defense shall waive the payment 
of costs required by subsection (a) which are in an amount greater 
than the costs that would be required for such a release of informa-
tion under section 552 of title 5 i
f
— 
"(1) the request is made by a citizen of the United States or a 
United States corporation, and such citizen or corporation cer-
tifies that the technical data requested is required to enable 
such citizen or corporation to submit an offer or determine 
whether it is capable of submitting an offer to provide the 
product to which the technical data relates to the United States 
or a contractor with the United States (except that the Sec-
retary may require the citizen or corporation to pay a deposit in 
an amount equal to not more than the cost of complying with 
the request, to be refunded upon submission of an offer by the 
citizen or corporation); 
"(2) the release of technical data is requested in order to 
comply with the terms of an international agreement; or 
"(3) the Secretary determines, in accordance with section 
552(a)(4)(A) of title 5, that such a waiver is in the interests of the 
United States.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding after the item relating to section 2327 (as added 
by section 971) the following new item: 
"2328. Release of technical data.". 
(b) EFFECTIVE DATE.—The amendments made by this section shall 
take effect at the end of the 90-day period beginning on the date of 
the enactment of this Act. 
SEC. 955. COMPARABLE BUDGETING FOR SIMILAR SYSTEMS 
(a) MATTERS TO BE INCLUDED IN ANNUAL DEFENSE BUDGETS.—In 
preparing the defense budget for any fiscal year, the Secretary of 
Defense shall— 
,„^ 
(1) specifically identify each common procurement weapon 
• system included in the budget; 
(2) take all feasible steps to minimize variations in procure-
s 
ment unit costs for any such system as shown in the budget 
requests of the different armed forces requesting procurement 
funds for the system; and 
" 
(3) identify and justify in the budget all such variations in 
procurement unit costs for common procurement weapon 
systems. 
(b) 
ASSISTANT SECRETARY (COMPTROLLER).—The Secretary 
of 
Defense shall carry out this section through the Assistant Secretary 
of Defense (Comptroller). 
Regulations. 
Contracts. 
10 u s e 2328 
note. 
10 u s e 113 note. 
100 STAT. 3954 
PUBLIC LAW 99-661—NOV. 14, 1986 
«- ^. 
(c) DEFINITIONS.—In this section: 
(1) The term "defense budget" means the budget of the 
Department of Defense included in the President's budget 
i: submitted to Congress under section 1105 of title 31 United 
States Code, for a fiscal year. 
(2) The term "common procurement weapon system" means a 
weapon system for which two or more of the Army, Navy, Air 
Force, and Marine Corps request procurement funds in a 
defense budget. 
SEC. 956. FUNDING OF PROCUREMENT TECHNICAL ASSISTANCE PRO-
GRAMS SERVING DISTRESSED AREAS 
(a) DEFINITIONS.—Section 2411 of title 10, United States Code, is 
amended to read as follows: 
"§2411. Definitions 
-
"In this chapter: 
"(1) The term 'eligible entity' means any of the following: 
"(A) A State. 
"(B) A local government. 
'.. 
. t* 
"(C) A private, nonprofit organization. 
"(2) The term 'distressed area' means the area of a unit of 
local government (or such area excluding the area of any 
defined political jurisdiction within the area of such unit of local 
government) that— 
"(A) has a per capita income of 80 percent or less of the 
State average; or 
"(B) has an unemployment rate that is one percent 
greater than the national average for the most recent 24-
^ r; 
month period for which statistics are available. 
"(3) The term 'Secretary' means the Secretary of Defense 
acting through the Director of the Defense Logistics Agency. 
"(4) The terms 'State' and 'local government' have the mean-
ing given those terms in section 6302 of title 31.". 
(b) SERVICE AREAS.—Section 2413(b) of such title is amended— 
(1) by inserting "sponsor programs to" after "agree to"; 
V
-
,
;
. >(', 
(2) by inserting "under such programs" after "cost of furnish-
• vij 
ing such assistance"; 
(3) by striking out "an eligible entity that is a distressed 
entity" and inserting in lieu thereof "a program sponsored by 
'' 
such an entity that provides services solely in a distressed 
i
^ 
area"; and 
(4) by inserting "with respect to such program" before the 
period. 
SEC. 957. SUBCONTRACTOR 
INFORMATION 
TO 
BE 
PROVIDED TO 
PROCUREMENT OUTREACH CENTERS 
(a) CONTRACTORS TO FURNISH INFORMATION.—(1) Chapter 142 of 
10 use 2411 et 
title 10, United States Code, is amended— 
««9- 
(A) by redesignating section 2416 as section 2417; and 
» < (B) by inserting after section 2415 the following new section: 
10 use 2416. 
"§ 2416. Subcontractor information 
"(a) The Secretary of Defense shall require that any defense 
contractor in any year shall provide to an eligible entity with which 
the Secretary has entered into a cooperative agreement under this 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3955 
chapter, on the request of such entity, the information specified in 
subsection (b). 
"(b) Information to be provided under subsection (a) is a listing of 
the name of each appropriate employee of the contractor who has 
responsibilities with respect to entering into contracts on behalf of 
such contractor that constitute subcontracts of contracts being per-
formed by such contractor, together with the business address and 
telephone number and area of responsibility of each such employee. 
"(c) A defense contractor need not provide information under this 
section to a particular eligible entity more frequently than once a 
year. 
"(d) In this section, the term 'defense contractor', for any year, 
means a person awarded a contract with the Department of Defense 
in that year for an amount in excess of $500,000.". 
-t 
(2) The table of sections at the beginning of such chapter is 
amended by striking out the item relating to section 2416 and 
inserting in lieu thereof the following new items: 
"2416. Subcontractor information. 
"2417. Regulations.". 
(b) EFFECTIVE DATE.—Section 2416 of title 10, United States Code, 10 USC 2416 
as added by subsection (a), shall take effect on January 1, 1987. note. 
PART F—MISCELLANEOUS REPORTS 
SEC. 961. SELECTED ACQUISITION REPORTS 
(a) REVISION OF REPORTING REQUIREMENTS.—Section 2432 of title 
10, United States Code (as redesignated by section 101(a) of the 
Goldwater-Nichols Department of Defense Reorganization Act of 
1986 (Public Law 99-433)), is amended— 
Ante, p. 994. 
(1) by adding at the end of subsection (a)(3) the following new 
sentence: "If for any fiscal year the funds appropriated, or the 
number of fully-configured end items to be purchased, differ 
from those programmed, the procurement unit cost shall be 
revised to reflect the appropriated amounts and quantities."; 
(2) by striking out "$2,000,000" in subsection (a)(4) and insert-
ing in lieu thereof "$40,000,000"; 
f- 
(3) by striking out "three-month" in subsection (b)(2)(B) and 
inserting in lieu thereof "six-month"; 
(4) by striking out paragraph (2) of subsection (c) and inserting 
in lieu thereof the following: 
"(2) Each Selected Acquisition Report for the first quarter of a 
fiscal year shall be designed to provide to the Committees on Armed 
Services of the Senate and House of Representatives the information 
such Committees need to perform their oversight functions. A 
change in the content of the Selected Acquisition Report for the first 
quarter of a fiscal year from the content as reported for the first 
quarter of the previous fiscal year may not be made until appro-
priate officials of the Department of Defense consult with such 
Committees regarding the proposed changes."; 
(5) by inserting "that is produced at a rate of six units or more 
per year" in subsection (c)(3)(C) after "report" in the matter 
preceding clause (i); and 
(6) by adding at the end the following new subsection: 
"(h)(1) Total program reporting under this section shall apply to a 
major defense acquisition program when funds have been appro-
100 STAT. 3956 
PUBLIC LAW 99-661—NOV. 14, 1986 
priated for such and the Secretary of Defense has decided to proceed 
to full-scale engineering development of such program. Reporting 
may be limited to the development program as provided in para-
graph (2) before a decision is made by the Secretary of Defense to 
proceed to full-scale engineering development if the Secretary noti-
fies the Committees on Armed Services of the Senate and House of 
Representatives of the intention to submit a limited report under 
this subsection not less than 15 days before a report is due under 
this section. 
"(2) A limited report under this subsection shall include the 
following: 
"(A) The same information, in detail and summarized form, as 
^ is provided in reports submitted under subsections (c)(1) and 
10 use 2431. 
(c)(3) of section 2431 of this title. 
"(B) Reasons for any change in the development cost and 
t 
schedule. 
"(C) The major contracts under the development program and 
the reasons for any cost or schedule variances under those 
contracts since the last Selected Acquisition Report. 
"(D) The completion status of the development program 
, 
expressed— 
"(i) as the percentage that the number of years for which 
funds have been appropriated for the development program 
is of the number of years for which it is planned that funds 
will be appropriated for the program; and 
"(ii) as the percentage that the amount of funds that have 
been appropriated for the development program is of the 
•-'^l' 
total amount of funds which it is planned will be appro-
' 
priated for the program. 
"(E) Program highlights since the last Selected Acquisition 
-^ 
-'*' 
Report. 
"(F) Other information as the Secretary of Defense considers 
appropriate. 
"(3) The submission requirements for a limited report under this 
subsection shall be the same as for quarterly Selected Acquisition 
Reports for total program reporting.". 
(b) UNIT COST REPORTS.—Section 2433 of title 10, United States 
Code (as redesignated by section 101(a) of the Goldwater-Nichols 
Ante, p. 994. 
Department of Defense Reorganization Act of 1986 (Public Law 
99-433)), is amended— 
(1) in subsection (b), by inserting "(excluding Saturdays, Sun-
days, and legal public holidays)" after "days" both places such 
term appears in the second sentence; and 
(2) by adding at the end the following new subsection: 
"(h) Reporting under this section shall not apply if a program has 
Ante, p. 3955. 
received a limited reporting waiver under section 2432(h) of this 
title.". 
10 use 2432 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 
note. 
and (b) shall take effect on January 1, 1987. 
SEC. 962. REPORT ON EFFORTS TO INCREASE DEFENSE CONTRACT 
AWARDS TO INDIAN-OWNED BUSINESSES 
(a) REPORT.—The Secretary of Defense shall submit to Congress a 
report on the efforts by the Department of Defense during fiscal 
years 1986 and 1987 to increase awards of defense contracts to 
Indian-owned businesses in accordance with the memorandum of 
understanding between the Department of Defense and the Small 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3957 
Business Administration of September 29, 1983. Such report shall 
include, to the maximum extent practicable, any data regarding the 
number and value of prime contracts awarded by the Department of 
Defense during such fiscal years to such businesses. 
(b) DEADLINE.—The report required by subsection (a) shall be 
submitted no later than March 31, 1988. 
(c) INDIAN-OWNED BUSINESS DEFINED.—For purposes of this sec-
tion, the term "Indian-owned business" means a firm owned and 
controlled by American Indians, including a tribally owned for-
profit entity. 
SEC. 963. REPORT ON 
INCREASED GEOGRAPHIC DISTRIBUTION OF 
DEFENSE CONTRACTORS 
(a) IN GENERAL.—(1) The Secretary of Defense shall submit to 
Congress a report on the actions taken by the Department of 
Defense during fiscal years 1985 and 1986 to increase contract 
competition and the national defense industrial base by increasing 
the participation in defense contracts of contractors in all geo-
graphic areas of the United States. 
(2) Such report shall be submitted not later than March 31, 1987. 
(b) CONTENTS OF REPORTS.—The report required by subsection 
(a)(1)-
(1) shall include a description of the use of procurement 
technical assistance centers, procurement conferences spon-
sored or supported by the Department of Defense, and any other 
Department of Defense programs conducted for the purpose of 
expanding the base of defense contractors; and 
(2) shall categorize, by State and other appropriate geographic 
region, the actions described in the report. 
TITLE X—ARMS CONTROL MATTERS 
SEC. 1001. SENSE OF THE CONGRESS RELATING TO SALT II COMPLIANCE 
(a) CONTINUED ADHERENCE TO SALT II NUMERICAL SUBLIMITS.—It 
is the sense of the Congress that it is in the national security 
interests of the United States to continue voluntary compliance with 
the central numerical sublimits of the SALT II Treaty as long as the 
Soviet Union complies with such sublimits. 
(b) DEFINITION.—For purposes of this section, the central numeri-
cal sublimits of the SALT II Treaty include prohibitions on the 
deployment of the following: 
(1) Launchers for more than 820 intercontinental ballistic 
missiles carrying multiple independently-targetable reentry 
If 
vehicles. 
(2) Launchers for an aggregate of more than 1,200 interconti-
nental ballistic missiles carrying multiple independently-target-
able reentry vehicles and submarine-launched ballistic missiles 
carrying multiple independently-targetable reentry vehicles. 
(3) An aggregate of more than 1,320 launchers described in 
paragraph (2) and heavy bombers equipped for air-launched 
cruise missiles capable of a range in excess of 600 kilometers. 
SEC. 1002. SENSE OF THE CONGRESS ON NUCLEAR TESTING 
(a) FINDINGS.—The Congress makes the following findings: 
(1) The United States is committed in the Limited Test Ban 
, Treaty of 1963 and in the Non-Proliferation Treaty of 1968 to 
Defense and 
national 
security. 
Union of Soviet 
Socialist 
Republics. 
14 UST 1313. 
21 UST 483. 
100 STAT. 3958 
PUBLIC LAW 99-661—NOV. 14, 1986 
seek to achieve the discontinuance of all test explosions of 
nuclear weapons for all time. 
(2) A comprehensive test ban treaty would promote the secu-
rity of the United States by constraining the United States-
Soviet nuclear arms competition and by strengthening efforts to 
prevent the proliferation of nuclear weapons. 
(3) The Threshold Test Ban Treaty was signed in 1974 and the 
Peaceful Nuclear Explosions Treaty was signed in 1976, and 
both have yet to be considered by the full Senate for its advice 
and consent to ratification. 
(4) The entry into force of the Peaceful Nuclear Explosions 
Treaty and the Threshold Test Ban Treaty will ensure full 
implementation of significant new verification procedures and 
so make completion of a comprehensive test ban treaty more 
probable. 
(5) A comprehensive test ban treaty must be adequately 
verifiable, and significant progress has been made in methods 
for detection of underground nuclear explosions by seismologi-
cal and other means. 
(6) At present, negotiations are not being pursued by the 
United States and the Soviet Union toward completion of a 
comprehensive test ban treaty. 
(7) The past five administrations have supported the achieve-
ment of a comprehensive test ban treaty. 
President of U.S. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that, at the 
earliest possible date, the President should— 
(1) request the advice and consent of the Senate to ratification 
(with a report containing any plans the President may have to 
negotiate supplemental verification procedures, or if the Presi-
dent believes it necessary, any understanding or reservation on 
the subject of verification which should be attached to the 
treaty) of the Threshold Test Ban and Peaceful Nuclear Explo-
sions Treaties, signed in 1974 and 1976, respectively; and 
(2) propose to the Soviet Union the immediate resumption of 
negotiations toward conclusion of a verifiable comprehensive 
test ban treaty. 
In accordance with international law, the United States shall have 
no obligation to comply with any bilateral arms control agreement 
with the Soviet Union that the Soviet Union is violating. 
SEC. 1003. REPORT BY THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF 
ON 
UNITED STATES NON-COMPLIANCE WITH EXISTING 
STRATEGIC OFFENSIVE ARMS AGREEMENTS 
(a) IN GENERAL.—The Chairman of the Joint Chiefs of Staff shall 
submit to Congress a report containing a detailed assessment o
f
— 
(1) the military consequences to the United States of a policy 
decision by the United States to discontinue compliance with 
the major provisions of existing strategic offensive arms limita-
tions agreements (including central numerical sublimits on 
strategic nuclear delivery vehicles in the SALT II accord) would 
have on the security of the United States; and 
(2) the likely military responses of the Soviet Union to such a 
policy decision. 
(b) MATTERS TO BE CONSIDERED.—The assessment required by 
subsection (a) shall focus on what the likely Soviet military 
responses would be during the period between 1987 and 1996. In 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3959 
making such assessment, the Chairman shall specifically consider 
the following: 
(1) The effect on the ability of United States strategic forces to 
accomplish their nuclear deterrent mission (including the effect 
on the survivability of United States strategic forces and on the 
ability of United States strategic forces to achieve required 
damage expectancies against Soviet targets) of any expansion of 
Soviet military capabilities undertaken in response to a United 
States decision to abandon compliance with existing strategic 
offensive arms agreements. 
(2) The additional cost to the United States, above currently 
projected military expenditures for those periods for which such 
budget projections are available, of research, development, 
production, deployment, and annual operations and support for 
any additional strategic forces required to counter any expan-
sion in Soviet military capabilities undertaken in response to a 
United States decision to abandon compliance with existing 
strategic offensive arms agreements. 
? 
(3) Under average annual real growth projections in defense 
spending of 0 percent, 1 percent, 2 percent, and 3 percent, the 
percent of the annual defense budget in each year between 
fiscal year 1987 and fiscal year 1996 which would be consumed 
by increased United States strategic forces needed to counter 
'^' 'c ^MI 
the Soviet force expansions. 
(4) The military effect on United States national security of 
the diversion the funds identified under paragraph (2) away 
from nonstrategic defense programs and to strategic programs 
to counter expanded Soviet strategic capabilities, including the 
military effect of such a diversion on the ability of United States 
conventional forces to meet the specific non-nuclear defense 
commitments of the United States as a member of the North 
Atlantic Treaty Organization and under the 1960 Treaty of 
Mutual Cooperation and Security with Japan. 
11 UST 1632. 
(5) The military implications for the United States of Soviet 
violations of offensive arms control agreements that have been 
J ii^rfn*, • 
determined, 
(c) REPORT REQUIREMENTS.—(1) The Chairman shall— 
(A) include in the report required under subsection (a) the 
individual views of the other members of the Joint Chiefs of 
Staff; and 
(B) submit such report in both classified and unclassified 
' 
form. 
(2) The report required by subsection (a) shall be submitted not 
later than December 19, 1986. 
(e) RESTRICTION ON OBLIGATION OF FUNDS.—If the Chairman of the 
Joint Chiefs of Staff fails to submit the report required by subsection 
(a) before December 20, 1986, no funds may be obligated or 
expended, directly or indirectly, on or after such date by the 
Organization of the Joint Chiefs of Staff for any study or analysis to 
be conducted by a civilian contractor until such report is received by 
Congress. 
SEC. 
1
0
0
4
. SENSE 
OF 
CONGRESS EXPRESSING SUPPORT FOR 
A CENTRAL 
ROLE 
FOR 
NUCLEAR RISK 
REDUCTION CENTERS 
(a) CONGRESSIONAL STATEMENTS.—The Congress— 
(1) has expressed its prior support for the establishment of 
f 
nuclear risk reduction centers; and 
100 STAT. 3960 
PUBLIC LAW 99-661—NOV. 14, 1986 
r>i 
(2) supports the President's willingness to negotiate an agree-
ment with the Soviet Union to establish such centers in each 
nation, 
(b) SENSE OF CONGRESS.—It is the sense of Congress that if an 
agreement on nuclear risk reduction centers is signed, the United 
States center should— 
(1) be assigned the responsibility to serve as the center of 
activity for United States risk reduction activities under the 
agreement; and 
(2) make recommendations to the Assistant to the President 
for National Security Affairs regarding additional risk reduc-
tion arrangements that might be proposed to the Soviet Union. 
TITLE XI—MATTERS RELATING TO NATO AND OTHER 
ALLIES 
SEC. 1101. MODERNIZATION OF DEFENSE CAPABILITIES OF COUNTRIES 
OF NATO'S SOUTHERN FLANK 
Chapter 2 of part II of the Foreign Assistance Act of 1961 (22 
U.S.C. 2311 et seq.) is amended by adding at the end the following 
new section: 
22 use 2321J. 
"SEC. 516. MODERNIZATION OF DEFENSE CAPABILITIES OF COUNTRIES 
OF NATO'S SOUTHERN FLANK. 
"(a) AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.—Not-
withstanding any other provision of law and subject to subsection 
(b), during the fiscal years 1987 and 1988 the President may transfer 
to those member countries of the North Atlantic Treaty Organiza-
tion (NATO) on the southern flank of NATO which are eligible for 
United States security assistance and which are integrated into 
NATO's military structure such defense articles as the President 
determines necessary to help modernize the defense capabilities of 
gS?i ' ?• 
such countries. Such articles may be transferred without cost to the 
recipient countries. 
President of U.S. 
"(b) LIMITATIONS ON TRANSFERS.—The President may transfer 
defense articles under this section only i
f
— 
"(1) the equipment is drawn from existing stocks of the 
Department of Defense; 
' 
"(2) no funds available to the Department of Defense for the 
procurement of defense equipment are expended in connection 
b'-il with the transfer; and 
"(3) the President determines that the transfer of the excess 
'•' defense articles will not have an adverse impact on the military 
readiness of the United States. 
"(c) NOTIFICATION TO COMMITTEES OF CONGRESS.—The President 
may not transfer defense articles under this section until 30 days 
after he has notified the Committees on Armed Services and Foreign 
Relations of the Senate and the Committees on Armed Services and 
Foreign Affairs of the House of Representatives of the proposed 
transfer. This notification shall include a certification of the need 
for the transfer and an assessment of the impact of the transfer on 
the military readiness of the United States. 
"(d) 
WAIVER OF REQUIREMENT FOR REIMBURSEMENT OF D O D 
22 use 2392. 
EXPENSES.—Section 632(d) shall not apply with respect to transfers 
of defense articles under this section. 
"(e) DEFINITION.—As used in subsection (a), the term 'member 
countries of the North Atlantic Treaty Organization (NATO) on the 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3961 
southern flank of NATO' means Greece, Italy, Portugal, Spain, and 
Turkey.". 
SEC. 1102. NATO COOPERATIVE LOGISTIC SUPPORT AGREEMENTS 
10 USC 2407 
note. 
(a) GENERAL AUTHORITY.—The Secretary of Defense may enter 
into bilateral or multilateral Weapon System Partnership Agree-
ments (as defined in subsection (g)) with one or more governments of 
other member countries of the North Atlantic Treaty Organization 
(NATO) for the purpose of providing cooperative logistics support for 
the armed forces of the countries which are parties to the agree-
ments. Such agreements may include provision for the transfer of 
logistics support, supplies, and services by the United States to the 
NATO Maintenance and Supply Organization and for the acquisi-
tion of logistics support, supplies, and services by the United States 
from such Organization. 
(b) AUTHORITY OF SECRETARY OF DEFENSE.—Under the terms of a 
Weapon System Partnership Agreement entered into under subsec-
tion (a), the Secretary of Defense may— 
(1) agree that the NATO Maintenance and Supply Organiza- Contracts, 
tion may make contracts for supply and acquisition of logistics 
" 
support in Europe for requirements of the United States, to the 
' 
extent the Secretary determines that the procedures of such 
Organization governing such supply and acquisition are appro-
priate; and 
^ 
(2) share the costs of set-up charges of facilities for use by the 
' 
NATO Maintenance and Supply Organization to provide 
^ 
cooperative logistics support and share in the costs of establish-
' 
ing a revolving fund for initial acquisition and replenishment of 
supply stocks to be used by the NATO Maintenance and Supply 
Organization to provide cooperative logistics support. 
(c) SHARING OF ADMINISTRATIVE EXPENSES.—Each Weapon System 
Partnership Agreement shall provide for joint management by the 
participating countries and for the equitable sharing of the adminis-
trative costs incident to such agreement. 
(d) APPLICATION OF CHAPTER 137.—Except as provided in this Contracts, 
section, the provisions of chapter 137 of title 10, United States Code, Ante, p. 3952. 
shall apply to contracts entered into by the Secretary of Defense for 
the acquisition of logistics support under a Weapon System Partner-
ship Agreement. 
(e) APPLICATION OF ARMS EXPORT CONTROL ACT.—The transfer of 
defense articles or defense services to member countries of the 
North Atlantic Treaty Organization and the NATO Maintenance 
and Supply Organization for the purposes of a Weapon System 
Partnership Agreement shall be carried out in accordance with the 
provisions of the Arms Export Control Act (22 U.S.C. 2751 et seq.). 
(f) SUPPLEMENTAL AUTHORITY.—The authority of the Secretary of 
Defense under this section is in addition to the authority of the 
Secretary under chapter 138 of title 10, United States Code, and any 
10 USC 2321 et 
other provision of law. 
seq. 
(g) DEFINITION.—For the purpose of this section, the term 
i;.. ;^-^l 
"Weapon System Partnership Agreement" means an agreement 
i-.n^jS' 
between the United States and one or more other NATO countries 
participating in the operation of the NATO Maintenance and 
Supply Organization that— 
(1) is entered into pursuant to the terms of the charter of the 
NATO Maintenance and Supply Organization; and 
100 STAT. 3962 
PUBLIC LAW 99-661—NOV. 14, 1986 
B
*
i 
(2) is for the common logistic support of a specific weapon 
system common to the participating countries. 
' •' 
' 
SEC. 1103. COOPERATIVE PROJECTS 
(a) ARMS EXPORT CONTROL ACT.—(1) Section 27 of the Arms Export 
Control Act (22 U.S.C. 2767) is amended— 
(A) in subsection (b)— 
(i) by inserting ", in the case of an agreement with the 
North Atlantic Treaty Organization or with one or more 
member countries of that Organization," after "project' " 
in paragraph (1); 
(ii) by striking out "and" at the end of paragraph (1); 
(iii) by redesignating paragraph (2) as paragraph (3); and 
&
>
^
« . 
Q^^ |jy inserting after paragraph (1) the following new 
paragraph: 
"(2) the term 'cooperative project', in the case of an agree-
ment entered into under subsection 0), means a jointly managed 
-.3 «>: 
arrangement, described in a written agreement among the 
parties, which is undertaken in order to enhance the ongoing 
multinational effort of the participants to improve the con-
ventional defense capabilities of the participants and which 
provides— 
"(A) for one or more of the other participants to share 
with the United States the costs of research on and develop-
ment, testing, evaluation, or joint production (including 
follow-on support) of certain defense articles; 
"(B) for concurrent production in the United States and 
,^.- 
in the country of another participant of a defense article 
jointly developed in accordance with subparagraph (A); or 
"(C) for procurement by the United States of a defense 
article or defense service from another participant to the 
,4.,^. 
agreement; and"; 
(B) in subsection (f)(3), by inserting after "Government" the 
following: ", including an estimate of the costs as a result of 
22 use 2761, 
waivers of section 21(e)(1)(A) and 43(b) of this Act,"; 
^'''92. 
(Q in subsection (g), by striking out "Section" and inserting in 
lieu thereof the following: "In the case of a cooperative project 
with a North Atlantic Treaty Organization country, section,"; 
and 
(D) by adding at the end the following new subsection: 
"(j)(l) 'The President may enter into a cooperative project agree-
ment with any friendly foreign country not a member of the North 
Atlantic Treaty Organization under the same general terms and 
conditions as the President is authorized to enter into such an 
agreement with one or more member countries of the North Atlan-
tic Treaty Organization if the President determines that the 
cooperative project agreement with such country would be in the 
foreign policy or national security interests of the United States. 
President of U.S. 
"(2) Not later than January 1 of each year, the President shall 
Reports. 
submit to the Committees on Armed Services and Foreign Relations 
of the Senate and to the Committees on Armed Services and Foreign 
Affairs of the House of Representatives a report specifying (A) the 
countries eligible for participation in such a cooperative project 
agreement under this subsection, and (B) the criteria used to deter-
mine the eligibility of such countries.". 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3963 
(2) The heading for such section is amended to read as follows: 
"AUTHORITY OF PRESIDENT TO ENTER INTO COOPERATIVE PROJECTS 
WITH FRIENDLY FOREIGN C O U N T R I E S . — " . 
(b) TITLE 10, UNITED STATES CODE.—(1) Section 2407 of title 10, 
United States Code, is amended— 
(A) by striking out "North Atlantic Treaty Organization 
(NATO)" in subsection (a)(1); 
(B) by striking out "NATO" in subsection (c)(2); and 
(C) by striking out "NATO" each place it appears in para-
graphs (1) and (2) of subsection (e). 
(2)(A) The heading of such section is amended to read as follows: 
"§ 2407. Acquisition of defense equipment under cooperative 
projects". 
(B) The item relating to such section in the table of sections at the 
beginning of chapter 141 of such title is amended to read as follows: 
"2407. Acquisition of defense equipment under cooperative projects.". 
SEC. 1104. ACQUISITION AND CROSS-SERVICING AGREEMENTS 
(a) AUTHORITY TO ENTER INTO AGREEMENTS WITH COUNTRIES OUT-
SIDE EUROPE.—Sections 2341 and 2342 of title 10, United States Code, 
are amended to read as follows: 
"§ 2341. Authority to acquire logistic support, supplies, and serv-
ices for elements of the armed forces deployed outside 
the United States 
"Subject to section 2343 of this title and subject to the availability 
of appropriations, the Secretary of Defense may— 
"(1) acquire from the Governments of North Atlantic Treaty 
Organization 
countries and from 
North Atlantic 
Treaty 
Organization subsidiary bodies logistic support, supplies, and 
services for elements of the armed forces deployed in Europe 
and adjacent waters; and 
"(2) acquire from any government not a member of the North 
Atlantic Treaty Organization in which elements of the armed 
forces are deployed (or are to be deployed) logistic support, 
supplies, and services for elements of the armed forces deployed 
(or to be deployed) in such country or in the military region in 
which such country is located if that country— 
"(A) has a defense alliance with the United States; 
"(B) permits the stationing of members of the armed Maritime affairs. 
forces in such country or the homeporting of naval vessels 
of the United States in such country; 
"(C) has agreed to preposition materiel of the United 
States in such country; or 
"(D) serves as the host country to military exercises 
' ^ 
which include elements of the armed forces or per-
mits other military operations by the armed forces in such 
country. 
"§2342. Cross servicing agreements 
"(a) Subject to section 2343 of this title and to the availability of 
appropriations, and after consultation with the Secretary of 
State, the Secretary of Defense may enter into any of the following 
agreements: 
100 STAT. 3964 
PUBLIC LAW 99-661—NOV. 14, 1986 
Defense and 
national 
security. 
Regulations. 
Contracts. 
10 use 2344. 
HiAii-^ 
¥:II 
1^ 
"(1) An agreement with the government of a North Atlantic 
Treaty Organization country (or with a North Atlantic Treaty 
Organization subsidiary body) under which— 
"(A) the United States agrees to provide logistic support, 
supplies, and services to military forces of such country (or 
subsidiary body) deployed in Europe and adjacent waters, in 
return for 
"(B) the reciprocal provision of logistic support, supplies, 
and services by such country (or subsidiary body) to ele-
ments of the armed forces deployed in Europe and adjacent 
' 
waters. 
"(2) An agreement with the government of a country des-
ignated by the Secretary of Defense which is not a member of 
the North Atlantic Treaty Organization under which— 
"(A) the United States agrees to provide logistic support, 
supplies, and services to the military forces of such country, 
in return for 
"(B) the reciprocal provision of logistic support, supplies, 
and services by such country to elements of the armed 
forces deployed in such country or in the military region in 
which such country is located. 
"(3) An agreement with the government of a country referred 
to in paragraph (1) or (2) under which— 
"(A) the United States agrees to provide logistic support, 
supplies, and services to the military forces of such country, 
in return for 
"(B) the reciprocal provision of support, supplies, and 
services for the armed forces from such country while the 
military forces of such country are stationed in North 
America or are performing military exercises or training in 
North America. 
"(b) The Secretary of Defense may not designate a country for an 
agreement under this section— 
"(1) unless the Secretary, after consultation with the Sec-
retary of State, determines that the designation of such country 
for such purpose is in the interest of the national security of the 
United States; and 
"(2) in the case of a country which is not a member of the 
North Atlantic Treaty Organization, notifies the Committees on 
Armed Services and Foreign Relations of the Senate and the 
Committees on Armed Services and Foreign Affairs of the 
House of Representatives at least 30 days before the date on 
which such country is designated by the Secretary under subsec-
tion (a). 
"(c) The Secretary of Defense may not use the authority of this 
chapter to procure from any foreign government as a routine or 
normal source any goods or services reasonably available from 
United States commercial sources. 
"(d) The Secretary shall prescribe regulations to ensure that 
contracts entered into under this chapter are free from self-dealing, 
bribery, and conflict of interests.". 
(b) METHODS OF PAYMENT.—Section 2344(b) of such title is 
amended— 
(1) by inserting "or other foreign country" after "country" in 
the material preceding subparagraph (A) of paragraph (1); and 
(2) by inserting "or other foreign country' in paragraph (3) 
after "country". 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3965 
(c) LIQUIDATION OF ACCRUED CREDITS AND LIABILITIES.—Section 
2345 of such title is amended— 
10 USC 2345. 
(1) by inserting "(a)" before "Credits" at the beginning of such 
section; and 
(2) by adding at the end the following new subsection: 
"(b) Payment-in-kind or exchange entitlements accrued as a result 
of acquisitions and transfers of logistic support, supplies, and serv-
ices under authority of this chapter shall be satisfied within 12 
months after the date of the delivery of the logistic support, sup-
plies, or services.". 
(d) LIMITATIONS ON AMOUNTS THAT MAY BE OBLIGATED OR 
ACCRUED BY THE UNITED STATES.—(1) Subsection (a) of section 2347 
of such title is amended— 
(A) by inserting "(1)" after "(a)"; and 
(B) by adding at the end the following new paragraph: 
"(2) Except during a period of active hostilities in the military 
region affecting a country which is not a member of the North 
Atlantic Treaty Organization, but with which the United States has 
one or more acquisition or cross-servicing agreements, the total 
amount of reimbursable liabilities that the United States may 
accrue under this chapter (before the computation of offsetting 
balances) with such country may not exceed $10,000,000 in any fiscal 
year, and of such amount not more than $2,500,000 in liabilities may 
be accrued for the acquisition of supplies (other than petroleum, oils, 
and lubricants). The $10,000,000 limitation specified in this para-
graph is in addition to the limitation specified in paragraph (1).". 
(2) Subsection (b) of such section is amended— 
(A) by inserting "(1)" after "(b)"; and 
(B) by adding at the end the following new paragraph: 
"(2) Except during a period of active hostilities in the military 
region affecting a country referred to in paragraph (1), the total 
amount of reimbursable credits that the United States may accrue 
under this chapter from such country (before computation of offset-
ting balances) may not exceed $10,000,000 in any fiscal year. Such 
limitation specified in this paragraph is in addition to the limitation 
specified in paragraph (1).". 
(e) INVENTORIES OF SUPPLIES NOT TO BE INCREASED.—Section 2348 
of such title is amended by striking out "to military forces of any 
North Atlantic Treaty Organization country or any North Atlantic 
Treaty Organization subsidiary body". 
(f) DEFINITION.—Section 2350 of such title is amended by adding at 
• ^ ''•-
the end the following new paragraph: 
"(3) 'Military region' means the geographical area of respon-
sibility assigned to the commander of a unified combatant 
command (excluding Europe and adjacent waters).". 
(g) CLERICAL AMENDMENT.—The item relating to section 2341 in 
the table of sections at the beginning of chapter 138 of such title is 
amended to read as follows: 
"2341. Authority to acquire logistic support, supplies, and services for elements of 
the armed forces deployed outside the United States.". 
SEC. 1105. COOPERATIVE RESEARCH AND DEVELOPMENT WITH MAJOR 
22 USC 2767a. 
NON-NATO ALLIES 
(a) FINDINGS.—The Congress finds— 
(1) that the North Atlantic Treaty Organization Cooperative 
Research and Development program instituted during fiscal 
100 STAT. 3966 
PUBLIC LAW 99-661—NOV. 14, 1986 
year 1986 has served to increase cooperation in research and 
5iRS >: J f 
development among member countries of the North Atlantic 
1 ,
= , Treaty Organization; and 
(2) that additional benefits of cooperation in research and 
development might ensue from an extension of the program to 
include major non-NATO allies of the United States. 
(b) CONGRESSIONAL REQUEST FOR COOPERATION ON RESEARCH AND 
DEVELOPMENT.—The Congress urges and requests the President and 
the Secretary of Defense to pursue diligently opportunities for the 
United States and major non-NATO allies of the United States to 
cooperate— 
(1) in research and development on defense equipment and 
munitions; and 
(2) in the production of defense equipment. 
(c) FUNDS FOR COOPERATIVE PROJECTS.—Of the funds appropriated 
pursuant to the authorizations of appropriations in section 201, up 
to $40,000,000 shall be available for cooperative research and devel-
opment projects with major non-NATO allies. 
(d) RESTRICTIONS.—(1) A memorandum of understanding (or other 
formal agreement) to conduct a cooperative research and develop-
ment project under this section may not be entered into unless the 
Secretary of Defense determines that the proposed project enhances 
the ongoing multinational effort to improve conventional defense 
capabilities through the application of emerging technology. 
(2) Each such cooperative project shall require sharing of the costs 
of research between the participants on an equitable basis. 
(3) The Secretary may not delegate the authority to make a 
determination under paragraph (1) except to the Deputy Secretary 
of Defense or the Under Secretary of Defense for Acquisition. 
(e) RESTRICTIONS ON PROCUREMENT OF EQUIPMENT AND SERVICES.— 
(1) In order to assure substantial participation on the part of major 
non-NATO allies in cooperative research and development projects, 
funds made available under subsection (c) for such projects may not 
be used to procure equipment or services from any foreign govern-
ment, foreign research organization, or other foreign entity. 
(2) A major non-NATO ally may not use any United States 
military or economic assistance grants, loans, or other funds for the 
purpose of making its contribution to a cooperative research and 
development program entered into with the United States under 
this section. 
Reports. 
(f) NoTiCE T
O CONGRESS.—Not later than January 1 of each year, 
the Secretary of Defense and the Secretary of State shall jointly 
submit to the Committees on Armed Services and Foreign Relations 
of the Senate and to the Committees on Armed Services and Foreign 
Affairs of the House of Representatives a report— 
(1) enumerating those countries eligible for participation with 
the United States in a cooperative research and development 
program authorized by this section; and 
(2) specifying the criteria used in determining eligibility for 
>
. 
the participation of such countries. 
(g) DEFINITIONS.—As used in this section: 
(1) The term "major non-NATO ally" means a country des 
ignated as a major non-NATO ally for the purposes of this 
section by the Secretary of Defense with the concurrence of the 
Secretary of State. 
(2) The term "cooperative research and development project" 
means a project involving joint participation by the United 
a'^^Tl ">.••••': Sf 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3967 
States and one or more major non-NATO allies under a memo-
randum of understanding (or other formal agreement) to carry 
out a joint research and development program— 
(A) to develop new conventional equipment and muni-
tions; or 
(B) to modify existing military equipment to meet United 
^^.; r"' 
States military requirements. 
TITLE XII—DEPARTMENT OF DEFENSE MANAGEMENT 
PART A—MANAGEMENT OF CERTAIN PROCUREMENT MATTERS 
SEC. 1201. CONTRACTS FOR OVERHAUL, REPAIR, AND MAINTENANCE OF 
NAVAL VESSELS 
(a) IN GENERAL.—Section 7299a of title 10, United States Code 
(relating to construction of combatant and escort vessels and assign-
ment of naval vessel projects), is amended by adding at the end the 
following new subsections: 
"(c) In evaluating bids or proposals for a contract for the overhaul, 
repair, or maintenance of a naval vessel, the Secretary of the Navy 
shall, in determining the cost or price of work to be performed in an 
area outside the area of the homeport of the vessel, consider foresee-
able costs of moving the vessel and its crew from the homeport to 
the outside area and from the outside area back to the homeport at 
the completion of the contract. 
"(d)(1) Notwithstanding subsections (b) and (c), the Secretary may 
^
,
^ 
,. 
award a contract for short-term work for the overhaul, repair, or 
' 
maintenance of a naval vessel only to a contractor that is able to 
perform the work at the homeport of the vessel, if the Secretary 
determines that adequate competition is available among firms able 
to perform the work at the homeport of the vessel. 
"(2) In this subsection, the term 'short-term work' means work 
that will be for a period of six months or less.". 
(b) REPEAL OF LIMITATION ON FY86 FUNDS.—Section 8104 of the 
Department of Defense Appropriations Act, 1986 (as contained in 
section 101(b) of Public Law 99-190 (99 Stat. 1221)), is repealed. 
SEC. 1202. HANDLING OF HAZARDOUS WASTE GENERATED DURING 
REPAIR OR MAINTENANCE OF NAVAL VESSELS 
(a) REQUIRED CONTRACT PROVISIONS.—Chapter 633 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
"§ 73n. Repair or maintenance of naval vessels: handling of 10USC7311. 
hazardous waste 
"(a) CONTRACTUAL PROVISIONS.—The Secretary of the Navy shall 
ensure that a contract entered into for repair or maintenance of a 
naval vessel includes the following provisions: 
"(1) IDENTIFICATION OF HAZARDOUS WASTES.—Provisions identi-
fying the type and amounts of hazardous wastes that are 
expected to be generated during the performance of the repair 
or maintenance. 
"(2) COMPENSATION.—Provisions specifying that the contrac-
tor shall be compensated under the contract for work performea 
by the contractor for duties of the contractor specified under 
paragraph (3). 
100 STAT. 3968 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(3) STATEMENT OF WORK.—Provisions mutually acceptable to 
' 
the Navy and the contractor specifying the responsibilities of 
the Navy and of the contractor, respectively, for the removal, 
^ 
handling, storage, transportation, and disposal of hazardous 
wastes generated during the performance of the repair or 
maintenance. 
"(b) RENEGOTIATION OF CONTRACT.—The Secretary of the Navy 
shall renegotiate a contract described in subsection (a) if— 
"(1) the contractor, during the performance of repair or 
maintenance under the contract, discovers hazardous wastes 
different in type or amount from those identified in the con-
tract; and 
^': 
"(2) such hazardous wastes originated on the naval vessel on 
which the repair or maintenance is being performed.". 
- (b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
"7311. Repair or maintenance of naval vessels: handling of hazardous waste.". 
SEC. 1203. LIMITATION ON TRANSFER OF CERTAIN TECHNICAL DATA 
PACKAGES 
(a) TECHNICAL DATA PACKAGES FOR PRODUCTION OF LARGE-CALIBER 
CANNON.—(1) Chapter 433 of title 10, United States Code, is 
amended by adding at the end the following new section: 
10 use 4542. 
"§4542. Technical 
data 
packages 
for 
large-caliber 
cannon: 
prohibition on transfers to foreign countries; exception 
"(a) GENERAL RULE.—Funds appropriated to the Department of 
Defense may not be used— 
"(1) to transfer to a foreign country a technical data package 
:'" 
for a defense item being manufactured or developed in an 
arsenal; or 
sf 
"(2) to assist a foreign country in producing such a defense 
•
^ 
item. 
"(b) EXCEPTION.—The Secretary of the Army may use funds appro-
priated to the Department of Defense to transfer a technical data 
package, or to provide assistance, described in subsection (a) if^ 
"(1) the transfer or provision of assistance is to a friendly 
foreign country (as determined by the Secretary of Defense in 
Sf' 
consultation with the Secretary of State); 
"(2) the Secretary of the Army determines that such action— 
„., ., 
,^ 
"(A) would have a clear benefit to the preservation of the 
'^ 
' ' 
* '^^'' 
production base for the production of cannon at the arsenal 
concerned; and 
f ' 
"(B) would not transfer technology (including production 
B * 
techniques) considered unique to the arsenal concerned; 
and 
'*' • 
"(3) the Secretary of Defense enters into an agreement with 
the country concerned described in subsection (c). 
"(c) CoPRODUCTiON AGREEMENTS.—An agreement under this 
subsection shall be in the form of a Government-to-Government 
Memorandum of Understanding and shall include provisions that— 
"(1) prescribe the content of the technical data package or 
assistance to be transferred to the foreign country participating 
in the agreement; 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3969 
"(2) require that production by the participating foreign coun-
try of the defense item to which the technical data package or 
assistance relates be shared with the arsenal concerned; 
"(3) subject to such exceptions as may be approved under 
subsection (d), prohibit transfer by the participating foreign 
country to a third party or country o
f
— 
"(A) any defense article, technical data package, tech-
nology, or assistance provided by the United States under 
the agreement; and 
"(B) any defense article produced by the participating 
foreign country under the agreement; and 
"(4) require the Secretary of Defense to monitor compliance 
with the agreement and the participating foreign country to 
report periodically to the Secretary of Defense concerning the 
agreement. 
"(d) TRANSFERS TO THIRD PARTIES.—A transfer described in subsec-
tion (b)(3) may be made i
f
— 
"(1) the defense article, technical data package, or technology 
to be transferred is a product of a cooperative research and 
development program in which the United States and the 
participating foreign country were partners; or 
: t 
"(2) the President— 
"(A) complies with all requirements of section 3(d) of the 
•• • 5 
Arms Export Control Act (22 U.S.C. 2753(d)) with respect to 
such transfer; and 
"^ 
"(B) certifies to Congress, before the transfer, that the 
transfer would provide a clear benefit to the production 
base of the United States for large-caliber cannon. 
"(e) NOTICE AND REPORTS TO CONGRESS.—(1) The Secretary of the 
Army shall submit to Congress a notice of each agreement entered 
into under this section. 
"(2) The Secretary shall submit to Congress a semi-annual report 
on the operation of this section and of agreements entered into 
under this section. 
"(0 ARSENAL DEFINED.—In this section, the term 'arsenal' means a 
Government-owned, Government-operated defense plant that manu-
factures large-caliber cannon.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"4542. Technical data packages for large-caliber cannon: prohibition on transfers to 
foreign countries; exception.". 
(b) EFFECTIVE DATE.—Section 4542 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to funds appro-
priated for fiscal years after fiscal year 1986. 
SEC. 1204. REQUIREMENTS CONCERNING TRANSPORTATION OF MEMBERS 
OF THE ARMED FORCES BY CHARTERED AIRCRAFT 
(a) IN GENERAL.—(1) Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following new section: 
"§ 2640. Charter air transportation of members of the armed forces 
"(a) REQUIREMENTS.—(1) The Secretary of Defense may not enter 
into a contract with an air carrier for the charter air transportation 
of members of the armed forces unless the air carrier— 
President of U.S. 
Reports. 
10 u s e 4542 
note. 
Contracts. 
10 u s e 2640. 
100 STAT. 3970 
PUBLIC LAW 99-661—NOV. 14, 1986 
"(A) meets, at a minimum, the safety standards established by 
the Secretary of Transportation under title VI of the Federal 
Aviation Act of 1958 (49 U.S.C. App. 1421 et seq.); 
"(B) has at least 12 months of experience operating services in 
air transportation that are substantially equivalent to the serv-
ice sought by the Department of Defense; and 
. 
,.., , , 
"(C) undergoes a technical safety evaluation. 
"(2) For purposes of paragraph 
(1)(C), a technical 
safety 
evaluation— 
"(A) shall include inspection of a representative number of 
aircraft; and 
"(B) shall be conducted in accordance with regulations pre-
scribed by the Secretary, after consultation with the Secretary 
• 
of Transportation. 
"(b) INSPECTIONS.—The Secretary shall provide for inspections of 
each air carrier that contracts with the Department of Defense for 
the charter air transportation of members of the armed forces. The 
inspections shall be conducted in accordance with standards estab-
lished by the Secretary, after consultation with the Secretary of 
Transportation, and shall include, at a minimum, the following: 
"(1) An on-site capability survey of the air carrier conducted 
at least once every two years. 
• » .- . "YsH 
"(2) A performance evaluation of the air carrier conducted at 
least once every six months. 
"(3) A preflight safety inspection of each aircraft conducted at 
any time during the operation of, but not more than 72 hours 
before, each internationally scheduled charter mission depart-
ing the United States. 
"(4) A preflight safety inspection of each aircraft used for 
domestic charter missions conducted to the greatest extent 
> 
practical. 
"(5) Operational check-rides on aircraft conducted periodi-
. 
cally. 
V > 
u^^^ COMMERCIAL AIRLIFT REVIEW BOARD.—The Secretary shall 
establish a Commercial Airlift Review Board within the Department 
of Defense. The Board shall consist of personnel from the Depart-
ment of Defense and other Government personnel as may be appro-
priate. The duties of the Board shall be— 
"(1) to make recommendations to the Secretary on suspension 
'' 
and reinstatement of air carriers under subsection (d); 
"(2) to make recommendations to the Secretary on waivers 
. 
under subsection (g); and 
"(3) to carry out such other duties and make recommen-
dations on such other matters as the Secretary considers 
*
^
^
' • ' 
' 
appropriate. 
^^' 
"(d) SUSPENSION AND REINSTATEMENT.—(1) The Secretary shall 
establish guidelines for the suspension of air carriers under contract 
with the Department of Defense for the charter air transportation of 
members of the armed forces and for the reinstatement of air 
carriers that have been so suspended. The guidelines— 
"(A) shall require the immediate determination of whether to 
suspend an air carrier if an aircraft of the air carrier is involved 
in a fatal accident; and 
, ;,,. . ^ f 
"(B) may require the suspension of an air carrier— 
' ' " ' 
,,in- 
"(i) if the carrier is in violation of any order, rule, regula-
.r^}\^ 
tion, or standard prescribed under title VI of the Federal 
Aviation Act of 1958 (49 U.S.C. App. 1421 et seq.); or 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3971 
j ^ 
"(ii) if an aircraft of the air carrier is involved in a serious 
accident. 
"(2) The Commercial Airlift Review Board shall make rec-
ommendations to the Secretary on suspension and reinstatement 
under this subsection. 
"(3) The Secretary shall include in each contract subject to this 
section the provisions on suspension and reinstatement established 
under this subsection. 
. > , ; • •:•• 
"(e) AUTHORITY TO LEAVE UNSAFE AIRCRAFT.—A representative of 
the Military Airlift Command, the Military Traffic Management 
Command, or such other agency as may be designated by the 
Secretary of Defense (or if there is no such representative reason-
ably available, the senior officer on board a chartered aircraft) may 
order members of the armed forces to leave a chartered aircraft if 
the representative (or officer) determines that a condition exists on 
the aircraft which may endanger the safety of the members. 
"(f) FAA INFORMATION.—The Secretary shall request the Sec- Reports, 
retary of Transportation to provide to the Secretary a report on each 
inspection performed by Federal Aviation Administration person-
nel, and the status of corrective actions taken, on each aircraft of an 
air carrier under contract with the Department of Defense for the 
charter air transportation of members of the armed forces. 
^ , 
. ' 
"(g) 
WAIVER.—After 
considering 
recommendations 
by 
the 
'•'>* 
Commercial Airlift Review Board, the Secretary may waive any 
provision of this section in an emergency. 
"(h) REGULATIONS.—The Secretary shall prescribe regulations to 
carry out this section, including requirements and identification of 
inspecting personnel with respect to preflight safety inspections 
required by subsection (b)(3). 
"(i) DEFINITIONS.—In this section: 
"(1) The terms 'air carrier', 'aircraft', 'air transportation', and 
'charter air transportation' have the meanings given such terms 
by sections 101(3), 101(5), 101(10), and 101(15), respectively, of 
the Federal Aviation Act of 1958 (49 U.S.C. App. 1301(3), 1301(5), 
1301(10), and 1301(15)). 
"(2) The term 'members of the armed forces' means members 
of the Army, Navy, Air Force, and Marine Corps.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"2640. Charter air transportation of members of the armed forces.". 
(b) DEADLINE FOR REGULATIONS.—Not later than 120 days after the 
10 use 2640 
date of the enactment of this Act, the Secretary of Defense shall 
^°^-
prescribe the regulations required by section 2640 of title 10, United 
States Code, as added by subsection (a). 
(c) EFFECTIVE DATE.—Section 2640 of title 10, United States Code, 
10 use 2640 
as added by subsection (a), shall apply only to contracts which are 
^°^-
entered into on or after the date on which the regulations required 
by subsection Ot)) are prescribed. 
SEC. 1205. FUEL SOURCES FOR 
HEATING SYSTEMS ON MILITARY 
INSTALLATIONS; PROHIBITION ON CONVERTING CERTAIN 
HEATING FACILITIES 
(a) REQUIREMENT AND RESTRICTION.—(1) Section 2690 of title 10, 
United States Code, is amended to read as follows: 
?no.i$M 
100 STAT. 3972 
PUBLIC LAW 99-661—NOV. 14, 1986 
"§ 2690. Fuel sources for heating systems; prohibition on convert-
ing certain heating facilities 
"(aXD The Secretary of the military department concerned shall 
provide that the primary fuel source to be used in any new heating 
system constructed on lands under the jurisdiction of the military 
department is the most cost effective fuel for that heating system 
over the life cycle of the system. 
Regulations. 
"(2) The Secretary of Defense shall prescribe regulations for the 
determination of the life-cycle cost effectiveness of a fuel for the 
purposes of paragraph (1). 
"(b) The Secretary of a military department may not convert a 
heating facility at a United States military installation in Europe 
from a coal-fired facility to an oil-fired facility, or to any other 
energy source facility, unless the Secretary— 
"(1) determines that the conversion (A) is required by the 
government of the country in which the facility is located, or (B) 
is cost effective over the life cycle of the facility; and 
"(2) submits to Congress notification of the proposed conver-
sion and a period of 30 days has elapsed following the date on 
which Congress receives the notice.". 
(2) The item relating to such section in the table of sections at the 
10 use 2661 et 
beginning of chapter 159 of such title is amended to read as follows: 
seq. 
. 
,. 
"2690. Fuel sources for heating systems.". 
^ • 
.• 
< 
-. J 
(b) REPEAL OF CERTAIN REQUIREMENTS AND RESTRICTIONS.—Sec-
tions 8022, 8070, and 8110 of the Department of Defense Appropria-
tions Act, 1986 (as contained in section 101(b) of Public Law 99-190; 
99 Stat. 1207, 1214, and 1222), are repealed. 
SEC. 1206. REVIEW OF THE SECURITY ADMINISTRATION IN DEFENSE 
LfU 
INDUSTRY OF DEPARTMENT OF DEFENSE SPECIAL ACCESS 
PROGRAMS 
(a) REVIEW.—The Secretary of Defense shall direct the Director of 
the Defense Investigative Service to conduct a review of the security 
administration of Department of Defense special access programs at 
all Department of Defense contractors involved in such programs. 
The review shall include a review of the frequency and adequacy of 
security inspections of such contractors conducted by the Depart-
ment of Defense. 
(b) REPORT.—(1) The Secretary shall submit to the Committees on 
Armed Services of the Senate and House of Representatives a report 
(!>.., 
•>.- 
setting forth the results of the review under subsection (a). 
" 
. 
(2) The report shall— 
(A) identify any shortcoming found to exist in security 
administration of Department of Defense special access pro-
"i-as f>*Ui)i 
grams at Department of Defense contractors involved in such 
?*f;>ri 
programs and the actions being taken to correct each such 
shortcoming; 
(B) include recommendations for improvement of Department 
of Defense oversight of special access programs, if the Secretary 
considers such improvement necessary; and 
(C) include recommendations for such legislation as the Sec-
retary determines is required to correct such deficiencies. 
(3) The report shall be submitted in an unclassified form. It shall 
be submitted not later than May 1, 1987. 
jj? x ^ ^ r / ?'y : -
^ s^;smj 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3973 
(c) DIS SECURITY INVESTIGATIONS.—After consulting with the Sec-
retary of Defense, the Director of the Defense Investigative Service 
may conduct such security inspections of special access programs as 
the Director considers appropriate, unless otherwise directed by the 
Secretary of Defense. 
SEC. 1207. CONTRACT GOAL FOR MINORITIES 
(a) GOAL.—Except as provided in subsection (d), a goal of 5 percent 
of the amount described in subsection (b) shall be the objective of the 
Department of Defense in each of fiscal years 1987, 1988, and 1989 
for the total combined amount obligated for contracts and sub-
contracts entered into with— 
(1) small business concerns, including mass media, owned and 
controlled by socially and economically disadvantaged individ-
; 
uals (as defined by section 8(d) of the Small Business Act (15 
r 
U.S.C. 637(d)) and regulations issued under such section), the 
majority of the earnings of which directly accrue to such 
individuals; 
(2) historically Black colleges and universities; or 
(3) minority institutions (as defined by the Secretary of Edu-
cation pursuant to the General Education Provisions Act (20 
U.S.C. 1221 et seq.)). 
(b) AMOUNT.—The requirements of subsection (a) for any fiscal 
year apply to the combined total of the following amounts: 
(1) Funds obligated for contracts entered into with the Depart-
ment of Defense for such fiscal year for procurement. 
(2) Funds obligated for contracts entered into with the Depart-
ment of Defense for such fiscal year for research, development, 
test, and evaluation. 
(3) Funds obligated for contracts entered into with the Depart-
ment of Defense for such fiscal year for military construction. 
(4) Funds obligated for contracts entered into with the Depart-
ment of Defense for operation and maintenance. 
(c) TECHNICAL ASSISTANCE.—To attain the goal of subsection (a), 
the Secretary of Defense shall provide technical assistance services 
to potential contractors described in subsection (a). Such technical 
assistance shall include information about the program, advice 
about Department of Defense procurement procedures, instruction 
in preparation of proposals, and other such assistance as the Sec-
retary considers appropriate. If Department of Defense resources 
are inadequate to provide such assistance, the Secretary of Defense 
may enter into contracts with minority private sector entities with 
experience and expertise in the design, development, and delivery of 
technical assistance services to eligible individuals, business firms 
and institutions, defense acquisition agencies, and defense prime 
contractors. Department of Defense contracts with such entities 
shall be awarded annually, based upon, among other things, the 
number of minority small business concerns, historically Black 
colleges and universities, and minority institutions that each such 
entity brings into the program. 
(d) APPLICABILITY.—Subsection (a) does not apply— 
(1) to the extent to which the Secretary of Defense determines 
that compelling national security considerations require other-
wise; and 
(2) if the Secretary making such a determination notifies 
Congress of such determination and the reasons for such 
determination. 
10 u s e 2301 
note. 
Disadvantaged 
persons. 
Schools and 
colleges. 
Research and 
development. 
JliKS 
100 STAT. 3974 
PUBLIC LAW 99-661—NOV. 14, 1986 
(e) COMPETITIVE PROCEDURES AND ADVANCE PAYMENTS.—To attain 
the goal of subsection (a)— 
(1) The Secretary of Defense shall exercise his utmost author-
ity, resourcefulness, and diligence, 
(2) To the extent practicable and when necessary to facilitate 
achievement of the 5 percent goal described in subsection (a), 
, , 
the Secretary of Defense shall make advance payments under 
section 2307 of title 10, United States Code, to contractors 
described in subsection (a). 
(3) To the extent practicable and when necessary to facilitate 
achievement of the 5 percent goal described in subsection (a), 
the Secretary of Defense may enter into contracts using less 
=***'*•' ^' 
'''^than full and open competitive procedures (including awards 
15 use 637. 
under section 8(a) of the Small Business Act), but shall pay a 
price not exceeding fair market cost by more than 10 percent in 
payment per contract to contractors or subcontractors described 
in subsection (a). 
Schools and 
(4) To the extent practicable, the Secretary of Defense shall 
colleges. 
3 
maximize the number of minority small business concerns, 
=
,
=
,
.
= 3 
historically Black colleges and universities, and minority 
institutions participating in the program. 
if) PENALTIES FOR MISREPRESENTATION.—Whoever for the purpose 
of securing a contract or subcontract under subsection (a) misrepre-
sents the status of any concern or person as a small business 
concern owned and controlled by a minority (as described in subsec-
tion (a)), shall be punished by a fine of not less than $10,000, or by 
imprisonment for not more than one year, or both. 
(g) ANNUAL REPORTS.—(1) Between May 1 and May 30 of each 
year, the Secretary of Defense shall submit to Congress a report on 
the progress toward meeting the goal of subsection (a) during the 
current fiscal year. 
(2) Between October 1 and October 10 of each year, the Secretary 
of Defense shall submit to Congress a final report on the progress of 
the Secretary with the goal of subsection (a) during the preceding 
fiscal year. 
(3) The reports described in paragraphs (1) and (2) shall each 
include the following: 
(A) A full explanation of any progress toward attaining the 
goal of subsection (a). 
(B) A plan to achieve the goal, if necessary. 
(C) A description of the percentage of contracts (actions), the 
total dollar amount (size of action), and the number of different 
entities relative to the attainment of the goal of subsection (a), 
separately for Black Americans, Native Americans, Hispanic 
Americans, Asian Pacific Americans, and other minorities. 
(4) The reports required under paragraph (2) shall also include the 
following: 
(A) The aggregate differential between the fair market price 
of all contracts awarded pursuant to subsection (e)(3) and the 
estimated fair market price of all such contracts had such 
contracts been entered into using full and open competitive 
procedures. 
(B) Detailed information on failure to perform in accordance 
with contract cost and technical requirements by entities 
awarded contracts pursuant to subsection (a). 
(C) An analysis of the impact that subsection (a) shall have on 
the ability of small business concerns not owned and controlled 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3975 
by socially and economically disadvantaged individuals to com-
pete for contracts with the Department of Defense. 
(5) The first report required by this subsection shall be submitted 
between May 1 and May 30,1987. 
(h) EFFECTIVE DATE.—This section applies to each of fiscal years 
1987,1988, and 1989. 
SEC. 1208. MANPOWER ESTIMATES FOR MAJOR DEFENSE ACQUISITION 
PROGRAMS 
(a) REQUIREMENT OF MANPOWER ESTIMATES.—Subsection (a) of 
section 2434 of title 10, United States Code (as redesignated by 
''' ' 
section 101(a) of the Goldwater-Nichols Department of Defense 
Reorganization Act of 1986), is amended to read as follows: 
"(a) REQUIREMENT FOR APPROVAL.—The Secretary of Defense may 
not approve the full-scale engineering development, or the produc-
tion and deployment, of a major defense acquisition program 
unless— 
"(1) an independent estimate of the cost of the program is first 
j.j submitted to (and considered by) the Secretary; and 
V 
"(2) the Secretary submits a manpower estimate of the pro-
gram to the Committees on Armed Services of the Senate and 
the House of Representatives at least 90 days in advance of such 
approval.". 
(b) DEFINITIONS.—Subsection (b) of such section is amended— 
(1) by inserting "DEFINITIONS.—" before "In this section"; 
(2) by striking out "(1) 'Major" and inserting in lieu thereof 
"(1) The term 'major"; 
(3) by striking out "(2) 'Independent" and inserting in lieu 
m- thereof "(2) The term 'independent"; 
•^''•• 
(4) by striking out "(3) 'Cost" and inserting in lieu thereof "(3) 
The term 'cost"; and 
(5) by adding at the end the following new paragraph: 
"(4) The term 'manpower estimate' means, with respect to a 
major defense acquisition program, an estimate o
f
— 
"(A) the total number of personnel (including military, 
;i 
civilian, and contractor personnel), expressed both in total 
personnel and man-years, that will be required to operate, 
maintain, and support the program upon full operational 
deployment and to train personnel to operate, maintain, 
and support the program upon full operational deployment; 
te 
"(B) the increases in military and civilian personnel end 
strengths that will be required for full operational deploy-
art 
ment of the program above the end strengths authorized in 
K 
the fiscal year in which such an estimate is submitted and 
the fiscal year or years in which such increases will be 
8
^ 
required; and 
"(C) the manner in which such a program would be 
operationally deployed if no increases in military and 
civilian end strengths were authorized above the strengths 
0 
authorized for the fiscal year in which such estimate is 
um 
submitted.". 
(c) CLERICAL AMENDMENTS.—(1) The heading of such section is 
amended to read as follows: 
?..' ot 
100 STAT. 3976 
PUBLIC LAW 99-661—NOV. 14, 1986 
"§2434. Independent 
cost 
estimates; 
operational 
manpower 
requirements". 
(2) The item relating to such section in the table of sections at the 
beginning of chapter 144 of such title (as enacted by section 101(a) of 
the Goldwater-Nichols Department of Defense Reorganization Act of 
1986) is amended to read as follows: 
"2434. Independent cost estimates; operational manpower requirements.". 
10 use 2434 
(d) EFFECTIVE DATE.—The amendments made by this section shall 
^°^- 
apply to approvals of full-scale engineering development and to 
approvals of production and deployment of major defense acquisi-
tion programs made after December 31, 1986. 
PART B—ECONOMY AND EFFICIENCY 
- 
•» 
SEC. 1221. INCREASE IN 
THRESHOLD APPLICABLE TO STATUTORY 
CONTRACTING-OUT PROCEDURES 
Section 502(d) of the Department of Defense Authorization Act, 
1981 (10 U.S.C. 2304 note) is amended by striking out "40 or fewer" 
and inserting in lieu thereof "45 or fewer". 
SEC. 1222. PROHIBITION ON CONTRACTS FOR PERFORMANCE OF FIRE-
FIGHTING AND SECURITY FUNCTIONS 
(a) FIREFIGHTING PROHIBITION.—(1) Chapter 159 of title 10, United 
States Code, is amended by adding at the end the following new 
section: 
10 use 2693. 
"§ 2693. Prohibition on contracts for performance of flreflghting 
functions 
"(a) Except as provided in subsection (b), funds appropriated to the 
Department of Defense may not be obligated or expended for the 
purpose of entering into a contract for the performance of firefight-
ing functions at any military installation or facility. 
"(b) The prohibition in subsection (a) does not apply— 
"(1) to a contract to be carried out at a location outside the 
United States (including its commonwealths, territories, and 
possessions) at which members of the armed forces would have 
to be used for the performance of the function described in 
subsection (a) at the expense of unit readiness; 
"(2) to a contract to be carried out on a Government-owned 
but privately operated installation; or 
i- 
"(3) to a contract (or the renewal of a contract) for the 
' 
performance of a function under contract or September 24, 
1983.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"2693. Prohibition on contracts for performance of flreflghting functions.". 
10 use 2304 
O
t
>
) ONE-YEAR SECURITY-GUARD PROHIBITION.—(1) Except as pro-
note, 
vided in paragraph (2), funds appropriated to the Department of 
Defense may not be obligated or expended before October 1, 1987, for 
the purpose of entering into a contract for the performance of 
security-guard functions at any military installation or facility. 
(2) The prohibition in paragraph (1) does not apply— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3977 
(A) to a contract to be carried out at a location outside the 
United States (including its commonwealths, territories, and 
possessions) at which military personnel would have to be used 
for the performance of the function described in paragraph (1) 
at the expense of unit readiness; 
(B) to a contract to be carried out on a Government-owned but 
privately operated installation; 
(C) to a contract (or the renewal of a contract) for the perform-
ance of a function under contract on September 24, 1983; or 
(D) to a contract for the performance of security-guard func-
tions if (i) the requirement for the functions arises after the date 
of the enactment of this Act, and (ii) the Secretary of Defense 
determines the functions can be performed by contractor 
personnel without adversely affecting installation security, 
safety, or readiness. 
(c) REPEAL.—Section 
1233 of the 
Department 
of Defense 
10USC2304 
Authorization Act, 1986 (Public Law 99-145, 99 Stat. 734), is hereby 
note, 
repealed. 
SEC. 1223. CONTRACTING OUT THE PERFORMANCE OF DEPARTMENT OF 
10 USC 2304 
DEFENSE SUPPLY AND SERVICE FUNCTIONS 
note. 
(a) IN GENERAL.—Except as otherwise provided by law, the Sec-
retary of Defense shall procure each supply or service necessary for 
or beneficial to the accomplishment of the authorized functions of 
the Department of Defense (other than functions which the Sec-
retary of Defense determines must be performed by military or 
government personnel) from a source in the private sector if such a 
source can provide such supply or service to the Department at a 
cost that is lower (after including any cost differential required by 
law, executive order, or regulation) than the cost at which the 
Department can provide the same supply or service. 
(b) COST COMPARISIONS.—For the purpose of determining whether 
to contract with a source in the private sector for the performance of 
any Department of Defense function on the basis of a comparison of 
the costs of procuring supplies or services from such a source with 
the costs of providing the same supplies or services by the Depart-
ment of Defense, the Secretary of Defense shall ensure that all costs 
considered, including the costs of quality assurance, technical moni-
toring of the performance of such function, liability insurance, 
employee retirement and disability benefits, and all other overhead 
costs, are realistic and fair. 
SEC. 1224. REPORTS ON SAVINGS OR COSTS FROM INCREASED USE OF 
10 USC 2304 
CIVILIAN PERSONNEL 
note. 
(a) IN GENERAL.—Whenever during a fiscal year to which this 
section applies the performance of any commercial or industrial 
type activity of the Department of Defense that is being performed 
by 50 or more employees of a private contractor is changed to 
perfv^rmance by civilian employees of the Department of Defense, 
the Secretary of Defense shall maintain data in which a comparison 
is made of the estimated costs of (1) continued performance of such 
activity by private contractor employees, and (2) performance of 
such activity by civilian employees of the Department of Defense. 
(b) SEMI-ANNUAL REPORT ON COSTS AND SAVINGS.—As soon as 
practicable after the end of the first six months, and after the end of 
the second six months, of a fiscal year to which this section applies, 
the Secretary of Defense shall submit to the Committees on Armed 
100 STAT. 3978 
PUBLIC LAW 99-661—NOV. 14, 1986 
Services of the Senate and House of Representatives a report show-
ing the estimated savings or loss to the United States, during the 
preceding six month period, that is reflected in the data maintained 
under subsection (a). 
(c) APPLICABILITY OF SECTION,—This section shall apply only with 
respect to a fiscal year during which there is no statutory limit 
(commonly known as an "end strength") on the number of civilian 
employees that may be employed by the Department of Defense as 
of the last day of that fiscal year. 
TITLE XIII—GENERAL PROVISIONS 
PART A—FINANCIAL MATTERS 
^5 
SEC. 1301. TRANSFER AUTHORITY 
« * * - • ' 
(^^ AUTHORITY TO TRANSFER AUTHORIZATIONS.—(1) Upon deter-
mination by the Secretary of Defense that such action is necessary 
in the national interest, the Secretary may transfer amounts of 
^ 
authorizations made available to the Department of Defense in this 
division between any such authorizations (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be merged 
with and be available for the same purposes as the authorization to 
which transferred. 
(2) The total amount of authorizations that the Secretary of 
Defense may transfer under the authority of this section may not 
exceed $2,000,000,000. 
(b) LIMITATIONS.—The authority provided by this section to trans-
fer authorizations— 
(1) may only be used to provide authority for items that have 
a higher priority than the items from which authority is trans-
ferred; and 
(2) may not be used to provide authority for an item that has 
been denied authorization by Congress. 
(c) EFFECT ON OBLIGATION LIMITATIONS.—A transfer made under 
the authority of this section— 
(1) increases by the amount of the transfer the obligation 
limitation provided in this division on the account (or other 
amount) to which the transfer is made; and 
(2) decreases by the amount of the transfer the obligation 
^ 
limitation provided in this division on the account (or other 
amount) from which the transfer is made. 
< OjH^ 
(d) NOTICE TO CONGRESS.—The Secretary of Defense 
shall 
c;. promptly notify Congress of transfers made under the authority of 
this section. 
SEC. 1302. AUTHORIZATION OF APPROPRIATIONS FOR CIVILIAN PAY AND 
CONTINGENCIES 
There are authorized to be appropriated to the Department of 
Defense for fiscal year 1987, in addition to other amounts authorized 
to be appropriated in this Act, such sums as may be necessary— 
(1) for unbudgeted increases in fuel costs; 
' 
(2) for unbudgeted increases as a result of inflation in the cost 
of activities authorized in this Act; and 
(3) for unbudgeted amounts for salary, pay, retirement, and 
other employee benefits authorized by law for civilian employ-
ees of the Department of Defense whose compensation is 
-'-- provided for by funds authorized to be appropriated in this Act. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3979 
SEC. 1303. AUTHORIZATION OF APPROPRIATIONS FOR FOREIGN CUR-
RENCY PURCHASES 
There is hereby authorized to be appropriated for fiscal year 1987 
the amount of $3,500,000 for the purchase of foreign currencies from 
the Treasury Department to pay expenses incurred in carrying out 
programs of the Department of Defense. 
SEC. 1304. SPECIAL DEFENSE ACQUISITION FUND 
(a) INCREASE IN SIZE OF FUND.—Section 114(c) of title 10, United 
States Code (as redesignated by section 110(b) of the Goldwater-
Nichols Department of Defense Reorganization Act of 1986 (Public 
Law 99-433)), is amended by striking out "$1,000,000,000" and 
^nte, p. lOOl. 
inserting in lieu thereof "$1,070,000,000". 
(b) BUDGET ACT LIMITATION.—New spending authority (as defined 
10 USC114 note, 
in section 401(c)(2) of the Congressional Budget Act of 1974) provided 
2 USC 651. 
by the amendment made by subsection (a) shall be effective for any 
fiscal year only to the extent or in such amounts as are provided in 
appropriation Acts. 
SEC. 1305. LIMITATION ON OBLIGATION OF FISCAL YEAR 1985 AND 
FISCAL YEAR 1986 FUNDS 
(a) LIMITATIONS.—Subject to subsection (b), funds appropriated for 
fiscal years 1985 and 1986 and remaining available for obligation 
may not be obligated as follows: 
r^ s^i ^i 
w •
; 
Fiscal 
year Fiscal 
year 
Account 
1985 
1986 
amount 
amount 
Aircraft Procurement, Army 
$21,000,000 $110,800,000 
Missile Procurement, Army 
$21,400,000 $91,900,000 
Procurement of Weapons and Tracked Combat Vehicles, 
Army 
$43,900,000 $211,400,000 
Procurement of Ammunition, Army 
$3,900,000 $30,300,000 
Other Procurement, Army 
$15,600,000 $123,600,000 
Aircraft Procurement, Navy 
$86,300,000 $446,100,000 
Weapons Procurement, Navy 
$48,800,000 $215,600,000 
Shipbuilding and Conversion, Navy 
$168,700,000 $367,500,000 
Other Procurement, Navy 
$16,100,000 $117,100,000 
Procurement, Marine Corps 
$18,200,000 $52,000,000 
Aircraft Procurement, Air Force 
$212,500,000 $714,500,000 
Missile Procurement, Air Force 
$53,400,000 $326,400,000 
Other Procurement, Air Force 
$19,100,000 $181,100,000 
National Guard and Reserve Equipment 
$900,000 $17,900,000 
Procurement, Defense Agencies 
$4,000,000 $31,000,000 
Research, Development, Test and Evaluation, Army 
$1,900,000 $71,200,000 
Research, Development, Test and Evaluation, Navy 
$2,800,000 $71,900,000 
Research, Development, Test and Evaluation, Air Force 
$6,000,000 $176,400,000 
Research, Development, Test and Evaluation, Defense 
Agencies 
$1,400,000 $84,700,000 
Director of Test and Evaluation, Defense 
$0 
$700,000 
Military Construction, Army 
$6,800,000 $64,400,000 
Military Construction, Navy 
$6,800,000 $45,200,000 
Military Construction, Air Force 
$6,300,000 $43,200,000 
'^" - '• '' '•' 
Military Construction, Defense Agencies 
$1,900,000 
$5,300,000 
Military Construction, Army National Guard 
$0 
$2,500,000 
Military Construction, Air National Guard 
$200,000 
$3,300,000 
Military Construction, Army Reserve 
$0 
$1,800,000 
Military Construction, Naval Reserve 
$0 
$1,200,000 
Military Construction, Air Force Reserve 
$200,000 
$1,800,000 
North Atlantic Treaty Organization Infrastructure 
$0 
$8,000,000 
Family Housing, Army 
$900,000 $19,400,000 
Family Housing, Navy and Marine Corps 
$400,000 
$8,800,000 
Family Housing, Air Force 
$2,400,000 $12,300,000 
100 STAT. 3980 
PUBLIC LAW 99-661—NOV. 14, 1986 
(b) COORDINATION WITH RESCISSIONS.—A limitation contained in 
subsection (a) shall apply only to the extent, and in the amount by 
which, the amount of the limitation is greater than amounts re-
scinded (on an account-year basis) in laws appropriating funds for 
the Department of Defense for fiscal year 1987 that are enacted 
before December 31,1986. 
SEC. 1306. APPLICABILITY OF LIMITATIONS ON FISCAL YEAR 1987 
OBLIGATIONS 
The limitations in sections 101(b), 102(a)(2), 102(b)(2), 102(c)(1), 
102(c)(2), 102(d)(2), 102(e)(2), 103(b), 104(b), 106(b), and 201(c)— 
'''•i' ; H*> « 
(1) apply only to funds directly appropriated and funds trans-
ferred by provisions in appropriations Acts that specifically 
•^'~" ' 
" 
identify the funds transferred; and 
' 
(2) do not apply to obligations from an account that would be 
reimbursed from another account or from a source outside the 
Government. 
SEC. 1307. REPORTS ON UNOBLIGATED BALANCES AND ON INFLATION 
BUDGETING 
(a) PERIODIC REPORTS.—(1) Chapter 131 of title 10, United States 
Code, is amended by adding at the end the following new sections: 
10 use 2215. 
"§2215. Reports on unobligated balances 
^
^ 
"(a) REQUIRED REPORTS.—The Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives reports (at the times specified under subsection (d)) 
containing an estimate of the amount of funds in each appropriation 
account of the Department of Defense that at the time of the 
report— 
"(1) is available for obligation; and 
"(2) is in excess of the amount needed to carry out the 
programs for which the funds were appropriated. 
"(b) MATTERS TO BE INCLUDED.—Each report under subsection (a) 
shall include, set forth separately for each account, estimates of 
amounts attributable to— 
. 
"(1) inflation savings; 
"(2) foreign currency savings; 
"(3) excess working capital fund cash; and 
"(4) all other savings. 
"(c) UNANTICIPATED COST INCREASES.—Each such report shall also 
identify unanticipated cost increases resulting from adverse eco-
nomic trends. 
"(d) SUBMISSION OF REPORTS.—A report shall be submitted to 
Congress under this section not later than February 1, not later 
than April 25, and not later than August 15 of each year. 
10 use 2216. 
"§ 2216. Annual report on budgeting for inflation 
"(a) REPORT ON VARIANCES.—(1) As part of the report required 
under section 2215 of this title to be submitted not later than 
February 1 of each year, the Secretary of Defense shall, in the case 
of each budget account, include a comparison o
f
— 
"(A) the amounts appropriated to the Department of Defense 
to offset anticipated inflation, and 
"(B) the amounts estimated, as of the date the report is 
submitted, to be necessary to offset anticipated inflation. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3981 
"(2) In making such estimate, the Secretary shall take into 
account actual inflation as of the date of such report. 
"(b) REQUIREMENT FOR EXPLANATION OF VARIANCES.—The Sec-
retary shall include in the report, in the case of each budget 
account, the following: 
"(DA discussion of the reasons for any variance between the 
amounts appropriated to offset anticipated inflation and the 
•
^ 
amounts estimated, as of the date of such report, to be necessary 
to carry out the programs for which the appropriations were 
' 
made. 
"(2) An identification of the sources of funds used or proposed 
• 
to be used to offset any deficiency in the amount appropriated to 
^ 
offset anticipated inflation. 
"(3) A description of the disposition or proposed disposition of 
any amount by which the amount appropriated to offset antici-
pated inflation exceeds the amount needed for such purpose. 
"(c) FISCAL YEARS COVERED BY REPORT.—The comparison and 
discussion required by this section shall apply to funds available to 
or for the use of the Department of Defense in the fiscal year during 
which the report is submitted and in each of the two fiscal years 
preceding that fiscal year.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new items: 
"2215. Reports on unobligated balances. 
"2216. Annual report on budgeting for inflation.". 
(b) REPEAL.—Section 
1407 of the Department 
of Defense 
10 USC113 note. 
Authorization Act, 1986 (Public Law 99-145; 99 Stat. 745), is 
repealed. 
(c) EFFECTIVE DATE.—(1) The first comparison and discussion 
10 USC 2215 
under section 2216 of title 10, United States Code (as added by ^^te. 
subsection (a)), shall be included in the first report under section 
2215 of such title submitted in 1988 and shall include information 
"'^ - "^*' 
relating only to fiscal year 1987. 
(2) The comparison and discussion included in the first report 
under section 2215 of such title submitted in 1989 shall include 
Ante, p. 3980. 
information relating only to fiscal years 1987 and 1988. 
SEC. 
1
3
0
8
. 
REPORT ON DEFENSE BUDGETING AND CONTRACT 
PROCE-
DURES 
FOR 
INFLATION 
(a) REPORT ON ECONOMIC PRICE ADJUSTMENT CLAUSES.—The Sec-
retary of Defense shall submit to Congress a report on the current 
practice of the Department of Defense of including in contracts 
entered into by the Department of Defense to carry out all or a 
portion of a program for which a Selected Acquisition Report is 
required an economic price adjustment clause to provide for adjust-
ments in contract prices to compensate for inflation. 
(b) INFORMATION To BE INCLUDED IN REPORT.—The Secretary shall 
' 
include in the report required by subsection (a) the following 
information: 
(1) The number of contracts that were entered into by the 
Department of Defense during fiscal year 1986 to carry out all 
or a portion of a program for which a Selected Acquisition 
Report was required for any quarter during such fiscal year and 
that included an economic price adjustment clause referred to 
in subsection (a). 
100 STAT. 3982 
PUBLIC LAW 99-661—NOV. 14, 1986 
•*o« m. [ 
Ante, p. 994. 
(!k)ntracts. 
10 u s e 2780. 
Reports. 
,y~ 
(2) A description of the different types of such contracts that 
were entered into during such fiscal year that included an 
economic price adjustment clause referred to in subsection (a). 
(3) A description of the different types of economic price 
adjustment clauses used by the Department of Defense in such 
contracts and the reasons for using a particular type of such 
clause for a particular type of contract. 
(c) OTHER MATTERS TO BE REPORTED.—The Secretary shall also 
include in the report required by subsection (a) the following: 
(1) An explanation of the methodology used by the Depart-
ment of Defense for determining the inflation index to be used 
4 
in calculating the inflation rate for various budget accounts of 
the Department of Defense and items within those accounts. 
(2) The feasibility of providing to Congress an annual report 
on actual rates of inflation experienced under contracts of the 
Department of Defense that are entered into to carry out all or 
a portion of a program for which a Selected Acquisition Report 
is required at any time and that include an economic price 
adjustment clause to provide adjustments in contract prices to 
compensate for inflation. 
(3) A discussion of the relationship between the rate of actual 
01 
inflation experienced under contracts referred to in clause (2) 
and the rate of inflation determined under the methodology 
referred to in clause (1) for determining the inflation index to be 
used in calculating the inflation rate for major weapon system 
accounts. 
(d) DEADLINE FOR REPORT.—The report required under this section 
shall be submitted not later than February 1,1987. 
(e) DEFINITION.—For purposes of this section, the term "Selected 
Acquisition Report" means a report referred to in section 2432 of 
title 10, United States Code (as redesignated by section 101 of the 
Goldwater-Nichols Department of Defense Reorganization Act of 
1986 (Public Law 99-433)). 
SEC. 1309. DEBT COLLECTION 
(a) IN GENERAL.—Chapter 165 of title 10, United States Code, is 
amended by adding at the end the following new section: 
, 
"§2780. Debt collection 
"(a)(1) Subject to paragraph (2), the Secretary of Defense shall 
enter into one or more contracts with a person for collection services 
to recover indebtedness owed to the United States (arising out of 
activities related to Department of Defense) that is delinquent by 
more than three months. 
"(2) The authority of the Secretary to enter into a contract under 
this section for any fiscal year is subject to the availability of 
appropriations. 
"(3) Any such contract shall provide that the person submit to the 
Secretary a status report on the person's success in collecting such 
debts at least once each six months. Section 3718 of title 31 shall 
apply to any such contract, to the extent not inconsistent with this 
subsection. 
"(b) The Secretary shall disclose to consumer reporting agencies, 
in accordance with paragraph (1) of section 3711(f) of title 31, 
information concerning any debt described in subsection (a) of more 
than $100 that is delinquent by more than 31 days.". 
i^^u. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3983 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
item: 
"2780. Debt collection.". 
SEC. 1310. CONTINGENT REDUCTION OF AUTHORIZATION OF APPRO-
PRIATIONS 
(a) CONTINGENCY.—Notwithstanding any other provision of this 
Act, the amounts authorized to be appropriated by this Act are 
reduced by the amounts specified in subsection (b) unless a law 
appropriating funds to or for the military functions of the Depart-
ment of Defense for fiscal year 1987 provides— 
(1) that basic pay, basic allowance for quarters, and basic 
allowance for subsistence of members of the uniformed services 
are to be paid on the first day of the month following the month 
for which the pay and allowances are accrued; or 
(2) a reduction in progress payments paid to Department of 
Defense contractors. 
(b) AUTHORIZATIONS TO BE REDUCED.—The amounts authorized to 
be appropriated in the title of this Act specified in the following 
table in the left-hand column are reduced by the amount specified 
opposite such title in the right-hand column: 
Authorizations in Which 
Reductions Are To Be Made 
Amount of Reduction 
' 
Division A 
Title I(Procurement) 
$3,008,000,000 
Title II (Research, Development, Test, and Evaluation) 
$1,174,000,000 
Title III (Operations and Maintenance) 
$1,602,000,000 
Division B 
Title VI 
$166,000,000 
Division C 
Title I (Department of Energy National Security Programs) 
$167,000,000 
(c) CONTINGENT REDUCTION IN PAY INCREASE.—Subject to 
the 
condition specified in subsection (a), the percentage of the increase 
in basic pay, basic allowance for quarters, and basic allowance for 
subsistence for members of the uniformed services, and the increase 
in pay for cadets and midshipmen, specified in sections 601(b) and 
601(c), respectively, of this Act is hereby reduced from 3 percent to 2 
percent. 
PART B—SPECIAL OPERATIONS MATTERS 
Contracts. 
37 u s e 1009 
note. 
SEC. 1311. SPECIAL OPERATIONS FORCES 
(a) ASSISTANT SECRETARY OF DEFENSE.—Section 136(b) of title 10, 
United States Code (as amended by section 106 of the Goldwater-
Nichols Department of Defense Reorganization Act of 1986), is Ante, p. 997. 
amended by adding at the end the following new paragraph: 
"(4) One of the Assistant Secretaries shall be the Assistant Sec-
retary of Defense for Special Operations and Low Intensity Conflict. 
He shall have as his principal duty the overall supervision (includ-
ing oversight of policy and resources) of special operations activities 
(as defined in section 167(j) of this title) and low intensity conflict 
activities of the Department of Defense.". 
(b) UNIFIED COMBATANT COMMAND.—(1) Chapter 6 of such title (as 
added by section 211 of the Goldwater-Nichols Department of De-
fense Reorganization Act of 1986 (Public Law 99-433)) is amended by 
Ante, p. lOil. 
adding at the end the following new section: 
100 STAT. 3984 
PUBLIC LAW 99-661—NOV. 14, 1986 
10 use 167. 
"§ 167. Unified combatant command for special operations forces 
"(a) ESTABLISHMENT.—With the advice and assistance of the Chair-
man of the Joint Chiefs of Staff, the President, through the Sec-
Ante, p. 1012. 
retary of Defense, shall establish under section 161 of this title a 
unified combatant command for special operations forces (herein-
after in this section referred to as the 'special operations command'). 
The principal function of the command is to prepare special oper-
ations forces to carry out assigned missions. 
"(b) ASSIGNMENT OF FORCES.—Unless otherwise directed by the 
Secretary of Defense, all active and reserve special operations forces 
of the armed forces stationed in the United States shall be assigned 
to the special operations command. 
"(c) GRADE OF COMMANDER.—The commander of the special oper-
ations command shall hold the grade of general or, in the case of an 
officer of the Navy, admiral while serving in that position, without 
vacating his permanent grade. The commander of such command 
t;<> 
shall be appointed to that grade by the President, by and with the 
advice and consent of the Senate, for service in that position. 
"(d) COMMAND OF ACTIVITY OR MISSION.—(1) Unless otherwise 
directed by the President or the Secretary of Defense, a special 
operations activity or mission shall be conducted under the com-
mand of the commander of the unified combatant command in 
whose geographic area the activity or mission is to be conducted. 
"(2) The commander of the special operations command shall 
exercise command of a selected special operations mission if directed 
to do so by the President or the Secretary of Defense. 
"(e) AUTHORITY OF COMBATANT COMMANDER.—(1) In addition to 
Ante, p. 1013. 
the authority prescribed in section 164(c) of this title, the com-
mander of the special operations command shall be responsible for, 
and shall have the authority to conduct, all affairs of such command 
.,. , 
relating to special operations activities, including the following 
;,,,^.j 
functions: 
"(A) Developing strategy, doctrine, and tactics. 
"(B) Training assigned forces. 
"(C) Conducting specialized courses of instruction for commis-
5 ^ 
sioned and noncommissioned officers. 
"(D) Validating requirements. 
" 
>• 
"(E) Establishing priorities for requirements. 
"(F) Ensuring combat readiness. 
"(G) Developing and acquiring special operations-peculiar 
equipment and acquiring special operations-peculiar material, 
supplies, and services. 
"(H) Ensuring the interoperability of equipment and forces. 
' 
' 
-' t 
"(I) Formulating and submitting requirements for intelligence 
support. 
"(J) Monitoring the promotions, assignments, retention, train-
ing, and professional military education of special operations 
forces officers. 
"(2) The commander of such command shall be responsible for 
monitoring the preparedness of special operations forces assigned to 
other unified combatant commands to carry out assigned missions. 
"(f) BUDGET.—In addition to the activities of a combatant com-
mand for which funding may be requested under section 166(b) of 
Ante, p. 1016. 
this title, the budget proposal of the special operations command 
shall include requests for funding for— 
, v - 
#.<,.—:. , . 
tj .. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3985 
"(1) development and acquisition of special operations-
peculiar equipment; and 
"(2) acquisition of other material, supplies, or services that 
are peculiar to special operations activities. 
"(g) INTELLIGENCE AND SPECIAL ACTIVITIES.—This section does not 
constitute authority to conduct any activity which, if carried out 
as an intelligence activity by the Department of Defense, would 
require— 
"(1) a finding under section 662 of the Foreign Assistance Act 
. 
of 1961 (22 U.S.C. 2422); or 
"(2) a notice to the Select Committee on Intelligence of the 
Senate and the Permanent Select Committee on Intelligence of 
the House of Representatives under section 501(a)(1) of the 
National Security Act of 1947 (50 U.S.C. 413). 
"(h) REGULATIONS.—The Secretary of Defense shall prescribe regu-
lations for the activities of the special operations command. Such 
regulations shall include authorization for the commander of such 
command to provide for operational security of special operations 
forces and activities. 
"(i) IDENTIFICATION OF SPECIAL OPERATIONS FORCES.—(1) Subject to 
paragraph (2), for the purposes of this section special operations 
forces are those forces of the armed forces that— 
•;; 
"(A) are identified as core forces or as augmenting forces in 
the Joint Chiefs of Staff Joint Strategic Capabilities Plan, 
Annex E, dated December 17,1985; 
"(B) are described in the Terms of Reference and Conceptual 
Operations Plan for the Joint Special Operations Command, as 
in effect on April 1, 1986; or 
"(C) are designated as special operations forces by the Sec-
retary of Defense. 
"(2) The Secretary of Defense, after consulting with the Chairman 
of the Joint Chiefs of Staff and the commander of the special 
operations command, may direct that any force included within the 
description in paragraph (1)(A) or (1)(B) shall not be considered as a 
special operations force for the purposes of this section. 
"(j) SPECIAL OPERATIONS ACTIVITIES.—For purposes of this section, 
special operations activities include each of the following insofar as 
• ' 
' *' 
it relates to special operations: 
"(1) Direct action. 
"(2) Strategic reconnaissance. 
"(3) Unconventional warfare. 
"(4) Foreign internal defense. 
"(5) Civil affairs. 
, 
"(6) Psychological operations. 
" 
"(7) Counterterrorism. 
"(8) Humanitarian assistance. 
1; - "(9) Theater search and rescue. 
"(10) Such other activities as may be specified by the Presi-
dent or the Secretary of Defense,". 
' » 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"167. Unified combatant command for special operations forces.". 
(c) MAJOR FORCE PROGRAM CATEGORY.—The Secretary of Defense 
lo use 167 note, 
shall create for the special operations forces a major force program 
category for the Five-Year Defense Plan of the Department of 
100 STAT. 3986 
PUBLIC LAW 99-661—NOV. 14, 1986 
Defense. The Assistant Secretary of Defense for Special Operations 
and Low Intensity Conflict, with the advice and assistance of the 
commander of the special operations command, shall provide overall 
supervision of the preparation and justification of program rec-
ommendations and budget proposals to be included in such major 
force program category. 
(d) PROGRAM AND BUDGET EXECUTION.—To the extent that there is 
authority to revise programs and budgets approved by Congress for 
special operations forces, such authority may be exercised only by 
the Secretary of Defense, after consulting with the commander of 
the special operations command. 
(e) GRADE FOR COMMANDERS OF CERTAIN AREA SPECIAL OPERATIONS 
COMMANDS.—The commander of the special operations command of 
the United States European Command, the United States Pacific 
Command, and any other unified combatant command that the 
Secretary of Defense may designate for the purposes of this section 
shall be of general or flag officer grade. 
(f) BOARD FOR LOW INTENSITY CONFLICT.—Section 101 of the Na-
tional Security Act of 1947 (50 U.S.C. 402) is amended by adding at 
the end the following new subsection: 
President of U.S. 
"(f) The President shall establish within the National Security 
Council a board to be known as the 'Board for Low Intensity 
Conflict'. The principal function of the board shall be to coordinate 
the policies of the United States for low intensity conflict.". 
(g) DEPUTY ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY 
AFFAIRS FOR LOW INTENSITY CONFLICT.—It is the sense of Congress 
that the President should designate within the Executive Office of 
the President a Deputy Assistant to the President for National 
Security Affairs to be the Deputy Assistant for Low Intensity 
Conflict. 
(h) REPORTS.—(1) Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on the plans of the Secretary for implementation 
of this section, including a description of the progress made on such 
implementation. 
10 use 167 note. 
(2) Not later than one year after the date of the enactment of this 
Act, the President shall transmit to Congress a report on the 
capabilities of the United States to conduct special operations and 
engage in low intensity conflicts. The report shall include a descrip-
tion of the following: 
(A) Deficiencies in such capabilities. 
(B) Actions being taken throughout the executive branch to 
correct such deficiencies. 
(C) The principal low intensity conflict threats to the interests 
of the United States. 
(D) The actions taken and to be taken to implement this 
section. 
10 use 167 note. 
(i) EFFECTIVE DATE.—Section 167 of title 10, United States Code (as 
added by subsection (b)), shall be implemented not later than 180 
days after the date of the enactment of this Act. 
(j) FUNDING FOR FISCAL YEAR 1987.—The Secretary of Defense 
may spend unobligated funds appropriated to the Department of 
Defense for fiscal years before fiscal year 1987 in such sums as 
•' 
'^ 
• 
necessary in order to carry out this section and section 167 of title 
10, United States Code (as added by subsection (b)), during fiscal 
year 1987. 
•• -••« •- -'^--^i- -.'-^.i-^.-v., --,:5 4•-:^ff-J 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3987 
SEC. 1312. SPECIAL OPERATIONS AIRLIFT 
(a) MODIFICATION OF EXISTING AIRCRAFT.—Of the funds appro-
priated for fiscal year 1987 for modification of Air Force air-
craft, $106,500,000 shall be available only for the modification of 
CH/HH-53 airframes to the "PAVE LOW" enhanced configuration. 
(b) DEVELOPMENT OF HELICOPTER VARIANTS.—(1) The Secretary of 
the Army shall proceed, through full and open competition, with 
development of an MH-47 variant of the CH-47 helicopter. The 
Secretary shall be designated as the executive agent for a joint 
services development program for a special operations/combat 
rescue variant of the HH/MH-60 helicopter. 
(2) In conducting such development under paragraph (1), the 
Secretary shall ensure— 
(A) that there is developed one baseline H-60 aircraft capable 
of operations from both land and shipboard; 
(B) that there is maximum practicable logistics commonality 
among those aircraft to be procured by either the Army, Navy, 
or Air Force and that the contract for acquisition of the joint 
services aircraft assures maximum economic-order quantity 
benefits to the United States; and 
(C) that there is maximum practicable commonality between 
the avionics architecture selected for the HH/MH-60 variant 
aircraft and the MH-47 variant aircraft. 
(3) Upon successful development and test of the MH-47 aircraft, 
the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on 
such development and testing. Such report shall include the Sec-
retary's recommendation as to whether the replacement for the 
HH-53 aircraft as the long-range, strategic rotary-wing aircraft for 
the Armed Forces should be the MH-47 aircraft or a special oper-
ations/combat rescue variant of the CV-22A aircraft (or another 
advanced-technology aircraft). If the recommendation of the Sec-
retary is in favor of the CV-22A aircraft (or another advanced-
technology aircraft), the Secretary of the Army may justify in the 
budget planning process procurement of the MH-47 aircraft as 
necessary to fill immediately the heavy-lift mission requirements of 
the Special Operations Aviation Brigade of the Army. 
(4) Upon successful development and test of the HH/MH-60 
helicopter under paragraph (1), the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a report containing a detailed acquisition 
strategy for such helicopter. Such acquisition strategy shall— 
(A) provide for timely and adequate procurement of the 
HH/MH-60 aircraft for the Special Operations Aviation Bri-
gade of the Army and for aviation detachments assigned to 
individual Special Forces groups; 
(B) provide for timely and adequate procurement of the 
HH/MH-60 aircraft for support of naval special warfare units 
and for fleet combat search and rescue missions; and 
(C) provide for timely and adequate replacement for theater 
special operations/combat search and rescue HH-3 helicopters 
of the Air Force with the HH/MH-60 helicopter. 
(c) REQUIREMENTS OF SPECIAL OPERATIONS COMMANDER.—(1) 
The 
commander of the unified combatant command established pursu-
ant to section 167 of title 10, United States Code (as added by section 
nnq»>i 
Contract. 
Report. 
Report. 
100 STAT. 3988 
PUBLIC LAW 99-661—NOV. 14, 1986 
1311), shall develop a plan to meet the immediate strategic special 
operations airlift requirements. 
Reports. 
(2) The Secretary of Defense, after consultation with the com-
mander of such command, shall submit to Congress a report, no 
later than June 1, 1987, setting forth the funding requirements 
necessary to implement during fiscal year 1988 the plan developed 
under paragraph (1). 
PART C—AUTHORIZATION OF PAYMENT OF CERTAIN EXPENSES WITH 
Jetffnts 
' 
RESPECT TO DEVELOPING COUNTRIES 
, 
SEC. 1321. AUTHORITY TO PAY EXPENSES OF DEVELOPING COUNTRIES 
FOR PARTICIPATION IN COMBINED MILITARY EXERCISES 
(a) AUTHORITY TO PAY EXPENSES.—(1) Chapter 101 of title 10, 
United States Code, is amended by adding at the end the following 
*>f»^-. 
new section: 
10 use 2010. 
"§ 2010. Participation of developing countries in combined exer-
cises: payment of incremental expenses 
"(a) The Secretary of Defense, after consultation with the Sec-
retary of State, may pay the incremental expenses of a developing 
country that are incurred by that country as the direct result of 
participation in a bilateral or multilateral military exercise i
f
— 
•'•^\ 
"(1) the exercise is undertaken primarily to enhance the 
security interests of the United States; and 
"(2) the Secretary of Defense determines that the participa-
tion by such country is necessary to the achievement of the 
fundamental objectives of the exercise and that those objectives 
cannot be achieved unless the United States provides the 
incremental expenses incurred by such country. 
Reports. 
'*(b) The Secretary of Defense shall submit to Congress a report 
each year, not later than March 1, containing— 
"(Da list of the developing countries for which expenses have 
been paid by the United States under this section during the 
preceding year; and 
"(2) the amounts expended on behalf of each government. 
Regulations. 
"(c) The Secretary of Defense shall establish by regulation such 
' 
accounting procedures as may be necessary to ensure that funds 
expended under this section are properly expended. 
"(d) In this section, the term 'incremental expenses' means the 
reasonable and proper cost of the goods and services that are 
consumed by a developing country as a direct result of that coun-
try's participation in a bilateral or multilateral military exercise 
with the United States, including rations, fuel, training ammuni-
tion, and transportation. Such term does not include pay, allow-
ances, and other normal costs of such country's personnel. 
"(e) Not more than $13,400,000 may be obligated or expended for 
the purposes of this section during fiscal years 1987 through 1991.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"2010. Participation of developing countries in combined exercises: payment of 
incremental expenses.". 
(b) EXPENDITURE LIMITATION FOR FISCAL YEAR 1987.—Not more 
than $1,600,000 may be obligated or expended for the purposes of 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3989 
section 2010 of title 10, United States Code (as added by subsection 
(a)), during fiscal year 1987. 
SEC. 
1
3
2
2
. 
AUTHORITY 
TO 
PAY 
CERTAIN 
EXPENSES 
OF 
DEFENSE 
PERSON-
NEL 
OF 
DEVELOPING 
COUNTRIES 
(a) IN GENERAL.—Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1050 the following new section: 
"§ 1051. Bilateral or regional cooperation programs: payment of 
personnel expenses 
"(a) The Secretary of Defense may pay the travel, subsistence, and 
similar personal expenses of defense personnel of developing coun-
tries in connection with the attendance of such personnel at a 
bilateral or regional conference, seminar, or similar meeting if the 
Secretary determines that the attendance of such personnel at such 
conference, seminar, or similar meeting is in the national security 
interests of the United States. 
"(b)(1) Except as provided in paragraph (2), expenses authorized to 
be paid under subsection (a) may be paid on behalf of personnel from 
a developing country only in connection with travel within the area 
of responsibility of the unified combatant command (as such term is 
defined in section 161(c) of this title) in which the developing 
country is located. 
"(2) In a case in which the headquarters of a unified combatant 
command is located within the United States, expenses authorized 
to be paid under subsection (a) may be paid in connection with 
travel of personnel to the United States to attend a bilateral or 
regional conference, seminar, or similar meeting. 
"(3) Expenses authorized to be paid under subsection (a) may not, 
in the case of any individual, exceed the amount that would be paid 
under chapter 7 of title 37 to a member of the armed forces of the 
United States (of a comparable grade) for authorized travel of a 
similar nature. 
"(c) In addition to the expenses authorized to be paid under 
subsection (a), the Secretary of Defense may pay such other 
expenses in connection with any such conference, seminar, or simi-
lar meeting as the Secretary considers in the national security 
interests of the United States. 
"(d) The authority to pay expenses under this section is in addi-
tion to the authority to pay certain expenses and compensation of 
officers and students of Latin American countries under section 
1050 of this title. 
"(e) Not later than March 1 each year, the Secretary of Defense 
shall submit to Congress a report containing— 
"(1) a list of the developing countries for which expenses have 
been paid under this section during the preceding fiscal year-
and 
"(2) the amount paid by the United States in the C£ise of each 
such country. 
"(f) During each of fiscal years 1987,1988, and 1989, not more than 
$800,000 may be obligated or expended under this section. 
"(g) The authority of the Secretary of Defense under this section 
shall expire on September 30,1989.". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by inserting after the item relating to 
section 1050 the following new item: 
10 use 1051. 
Defense and 
national 
security. 
Ante, p. 1012. 
37 use 401 et 
10 use 1050. 
Reports. 
•y 7t 
100 STAT. 3990 
PUBLIC LAW 99-661—NOV. 14, 1986 
"1051. Bilateral or regional cooperation programs: payment of personnel expenses.". 
w.xii«.'< -n^':.. 
PART D—MISCELLANEOUS REPORTS 
SEC. 1331. ARMY NATIONAL GUARD REPORTING 
3^^ - 
^'^•'• 
The Secretary of Defense shall require the Chief of the National 
Guard Bureau to develop and implement procedures to monitor the 
. , 
. 
backlog of maintenance and repair projects of Army National Guard 
armories. 
^ 
SEC. 1332. SUBMARINE OVERHAUL STUDY 
(a) STUDY.—The Secretary of the Navy shall conduct a detailed 
study and investigation on the desirability and feasibility of apply-
ing production line techniques for the overhaul of Los Angeles-class 
submarines. 
(b) REPORT.—Not later than May 1, 1987, the Secretary shall 
submit to Congress a report on the results of such study and 
investigation, together with such comments and recommendations 
as the Secretary considers appropriate. 
SEC. 1333. REPORT ON LANDING AREA FOR AV-8B HARRIER AIRCRAFT ON 
IOWA-CLASS BATTLESHIP 
Not later than six months after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report on 
the feasibility and possible benefits of removing the rear turret from 
an Iowa-class battleship to create a landing area for AV-8B Harrier 
aircraft. 
SEC. 1334. REPORT ON CLEANUP OF NATIONAL PRESTO INDUSTRIES 
Wisconsin. 
The Secretary of Defense shall investigate and report to the 
Committees on Armed Services of the Senate and the House of 
^' ^ 
Representatives by January 1, 1987, on the sources, dates of origin, 
and responsibility for hazardous waste contamination at the 
National Presto Industries Plant near Eau Claire, Wisconsin. 
'
* 
PART E—TECHNICAL AND CLERICAL AMENDMENTS 
SEC. 1341. TECHNICAL CORRECTION TO DEPARTMENT OF DEFENSE 
AUTHORIZATION ACT, 1985 
37 use 403 note. 
(a) CORRECTION OF BAQ SAVE-PAY.—Section 602(aX2) of the 
Department of Defense Authorization Act, 1985 (Public Law 98-525; 
98 Stat. 2534), is amended— 
'"^' 
"
" ", 
(1) by striking out "During the period" and all that follows 
* 
through "paragraph (1)" and inserting in lieu thereof "(A) 
During the period described in subparagraph (B)"; 
(2) by striking out "on or after January 1, 1985, and before the 
date of any such change" and inserting in lieu thereof "during 
such period"; and 
* 
(3) by adding at the end the following: 
"(B) The period referred to in subparagraph (A) is the period 
beginning on January 1, 1985, and ending on the effective date of a 
change made by law in the rates of basic allowance for quarters that 
increases the rates for such allowance to a level not less than 7 
percent greater than the rates in effect on January 1, 1985.". 
37 use 403 note. 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
shall take effect on October 1, 1986, or the date of the enactment of 
this Act, whichever is later. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3991 
SEC. 1342. TECHNICAL CORRECTIONS TO PROVISIONS ENACTED BY 
DEPARTMENT OF DEFENSE AUTHORIZATION ACT, 1986 
"
^ 
(a) AVIATION PAY.—Paragraph (1) of section 301(a) of title 37, 
^. 
United States Code (as amended by section 635(a)(1)(A) of the 
Department of Defense Authorization Act, 1986 (Public Law 99-145; 
99 Stat. 647)), is amended to read as follows: 
"(1) involving frequent and regular participation in aerial 
flight as a crew member, as determined by the Secretary con-
cerned, except for a member who is entitled to incentive pay 
under section 301a of this title;". 
(b) CLARIFICATION OF V H A SAVE PAY.—Section 602(D(2) of the 37 USC 403a 
Department of Defense Authorization Act, 1985 (Public Law 98-525) note. 
(as amended by section 603(b) of the Department of Defense 
Authorization Act, 1986 (99 Stat. 637)), is amended— 
(1) by striking out "departs that station as a result o f in 
subparagraph (B)(i) and inserting in lieu thereof "changes resi-
dence in conjunction with"; and 
(2) in subparagraph (C)— 
(A) by striking out "Any member" and inserting in lieu 
^ 
thereof "A member"; and 
(B) by striking out "under paragraph" and all that fol- 
Alaska, 
lows and inserting in lieu thereof ", except that such a Hawaii, 
member serving an unaccompanied tour of duty in Alaska 
' 
or Hawaii may be paid a variable housing allowance based 
on the residence of the member's dependents in another 
State.". 
(c) DENTAL OFFICERS' SAVE PAY.—Section 639(d) of the Depart- 
37 USC 302b 
ment of Defense Authorization Act, 1986 (99 Stat. 651), is note, 
amended— 
(1) by striking out "shall be entitled to such pay in an annual 
amount that is not less than" and inserting in lieu thereof "may 
(notwithstanding the provisions of such section and in the 
discretion of the Secretary concerned) be paid such pay, in order 
to prevent inequities, in an annual amount equal to"; and 
(2) by striking out "was entitled on September 30, 1985." and 
inserting in lieu thereof "would have been entitled on Septem-
ber 30, 1985, in accordance with the status of the officer (as 
determined by the Secretary concerned) during the period for 
which the pay is paid. Notwithstanding the preceding sentence, 
an officer may not be paid special pay by reason of this para-
graph in an amount greater than the amount of special pay to 
which the officer was entitled under such sections on Septem-
ber 30,1985.". 
(d) RESERVE MEDICAL OFFICERS' SPECIAL PAY.—Subparagraph (B) of 
section 302(h)(1) of title 37, United States Code (as amended by 
section 640 of the Department of Defense Authorization Act, 1986 
(99 Stat. 652)), is amended to read as follows: 
"(B) who is on active duty under a call or order to active duty 
for a period of less than one year;". 
(e) REPEAL OF DUPLICATIVE AMENDMENTS.—Subsection (a) of sec- 
22 USC 2752, 
tion 1102 of the Department of Defense Authorization Act, 1986 (99 |;[^2 note^ 2753, 
Stat. 708), and the amendments made by that subsection are 
repealed, and the Arms Export Control Act shall apply as if that 
22 USC 2751 
subsection had not been enacted. 
note. 
(f) CORRECTION OF SECTION REFERENCE.—Section 719(h)(1) of the 
50USCapp. 
Defense Production Act of 1950 (50 U.S.C. App. 2169(h)(1)), as 2168. 
71_iq4 0 - 8q - 18 : CJL. 3 PartB 
100 STAT. 3992 
PUBLIC LAW 99-661—NOV. 14, 1986 
amended by section 934(b) of the Department of Defense Authoriza-
99 Stat. 700. 
tion Act, 1986, is amended by striking out "Public Law 92-41" in the 
third sentence and inserting in lieu thereof "section 105(b)(2) of the 
50 use app. 
Renegotiation Act of 1951". 
lO^USC 3851 
^^^ CORRECTION OF SECTION AMENDED.—Section 522(a)(2) of Depart-
ment of Defense Authorization Act, 1986 (99 Stat. 631), is amended 
by striking out "Section 3851(c)" and inserting in lieu thereof "Sec-
tion 3851(d)", and the subsection inserted by the amendment made 
by that section is redesignated as subsection (d). 
(h) EFFECTIVENESS OF AMENDMENTS.— 
• 
37 use 301 note. 
(1) The amendments made by subsections (a) through (d) shall 
take effect on October 1, 1986, or the date of the enactment of 
this Act, whichever is later. 
50 use app. 2168 
(2) The amendments made by subsections (f) and (g) shall 
°°*®- 
apply as if included in the enactment of the Department of 
99 Stat. 583. 
Defense Authorization Act, 1986 (Public Law 99-145). 
SEC.1343. CLERICAL AMENDMENTS 
(a) AMENDMENTS TO TITLE 10.—Title 10, United States Code, is 
amended as follows: 
(1) The text of section 775 (as redesignated by section [502]) is 
. > ; 
amended to read as follows: 
r.\;i;._ 
"This chapter applies in— 
' 
' ;,v 
"(1) the United States; 
"(2) the territories, commonwealths, and possessions of the 
United States; and 
"(3) all other places under the jurisdiction of the United 
.).:•:% 
states.". 
(2) Section 976(a)(1) is amended by striking out the second 
comma before "(B)". 
(3) Section 1035 is amended by striking out "armed force" in 
subsection (a) and inserting in lieu thereof "armed forces". 
(4) Section 1087(b)(2) is amended by striking out "title XVIII" 
and all that follows and inserting in lieu thereof "title XVIII of 
the Social Security Act (42 U.S.C. 1395c et seq.)).". 
J 
(5) Section 1094(d) is amended by realigning paragraph (2) so 
as to be indented two ems (rather than four ems). 
(6) Section 1208(a)(2)(A) is amended by striking out "after 
February 2,1901". 
(7) Section 1216(d) is amended by striking out "who is in pay 
grade" and all that follows through "Air Force" and inserting 
in lieu thereof "who is a general officer or flag officer or is a 
medical officer". 
(8)(A) Section 1447(2)(A) is amended by striking out "or re-
tainer" both places it appears. 
(B) Section 1448(a)(5) is amended by striking out "an annuity 
by virtue of eligibility under paragraph (1)(B)" in the fourth 
sentence and inserting in lieu thereof "a reserve-component 
annuity". 
(C) Section 1450(c) is amended by inserting "dependency and 
indemnity" before "compensation' the first place it appears in 
the first sentence. 
(D) Section 1451(a)(1)(A) is amended by striking out "subsec-
tion" and inserting in lieu thereof "section". 
(E) Section 1452(h) is amended by striking out "and retainer" 
. 
(9) Section 1603 is amended— 
(A) by striking out "this" after "Nothing in"; and 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3993 
^ ' 
(B) by striking out "this sections 1601 and 1602 of this 
title" and inserting in lieu thereof "those sections". 
(10) The heading of section 1623 is amended to read as follows: 
"§ 1623. Education, training, and experience requirements: flag and 
general officers". 
(11) Section 2236(b) is amended by striking out ", territory, the 
Commonwealth of Puerto Rico, or the District, of Columbia, as 
f ^ • 
/c-y 
the case may be,". 
(12) The item relating to section 2319 in the table of sections 
at the beginning of chapter 137 is amended to read as follows: 
"2319. Encouragement of new competitors.". 
(13) Section 2302(2)(A) is amended by strikmg out "(41 U.S.C" 
and inserting in lieu thereof "(40 U.S.C,". 
(14) Section 2304(b)(2) is amended by striking out "15 U.S.C. 
639;" and inserting in lieu thereof "15 U.S.C. 638,". 
(15) Section 2407(g)(2) is amended by striking out "the Mili-
tary Cargo Preference Act of 1904 (10 U.S.C. 2631) and the 
Cargo Preference Act of 1954 (46 U.S.C. 1241(b))" and inserting 
in lieu thereof "section 2631 of this title and section 901(b) of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1241(b))". 
(16) Section 2672 is amended— 
(A) by inserting "(1)" in subsection (a) after "(a)"; 
(B) by striking out "he or his designee" in clause (A) of 
•f'-.'i 
subsection (a) and inserting in lieu thereof "the Secretary"; 
(C) by designating the second sentence of subsection (a) as 
.._T 
paragraph (2); 
(D) by transferring the third sentence of subsection (a) to 
» / 
the end of the section and designating that sentence as 
subsection (c); and 
(E) by striking out "interest" in the section heading and 
inserting in lieu thereof "interests". 
(17)(A) Section 2676(c)(2)(B) is amended by striking out "the 
agreed" and all that follows through "exceeds the" and insert-
ing in lieu thereof "the agreed price for the land or, in the case 
of land to be acquired by condemnation, the amount to be 
i 
deposited with the court as just compensation for the land, 
exceeds the". 
(B) The amendment made by subparagraph (A) shall take 10 USC 2676 
effect as if included in the enactment of section 802(2) of the 
^°^-
Military Construction Authorization Act, 1985 (Public Law 
98-407; 98 Stat. 1519). 
(18) Section 2683(b) is amended by striking out "this" before 
"subsection (a)". 
(19) Section 2775 is amended— 
(A) in subsection (a)(1), by striking out "it is" and all that 
follows through "that the" and inserting in lieu thereof "(as 
determined under regulations prescribed by the Secretary 
of Defense or the Secretary of Transportation with respect 
to the Coast Guard when it is not operating as a service in 
the Navy) the"; 
(B) in subsection (b)— 
(i) by inserting a comma after 
"Secretary of 
Defense"; 
100 STAT. 3994 
PUBLIC LAW 99-661—NOV. 14, 1986 
(ii) by striking out "when the Coast Guard" and 
inserting in lieu thereof "with respect to the Coast 
••''•-'" 
Guard when it"; and 
(iii) by inserting a comma after "Navy"; and 
' '' ' 
(C) in subsection (e), by striking out "when the Coast 
Guard" and inserting in lieu thereof "with respect to the 
Coast Guard when it". 
10 use 2809. 
':.-:• (20) Section 2809 is amended— 
(A) in subsection (a)(1)— 
"v 
(i) by striking out "contracts" and inserting in lieu 
' 
thereof "a contract"; 
(ii) by striking out "facilities" the first place it 
appears and inserting in lieu thereof "a facility"; 
• 
' 
(iii) by striking out "military installations" and 
inserting in lieu thereof "a military installation"; 
(iv) by inserting a comma after "waste water 
treatment"; 
(v) by striking out "cases" and inserting in lieu 
thereof "a case"; 
(vi) by striking out "facilities" the second place it 
appears and inserting in lieu thereof "facility"; and 
(vii) by striking out "long-term contracts" and insert-
ing in lieu thereof "a long-term contract"; 
(B) in subsection (a)(2), by striking out "subsection (a)" 
and inserting in lieu thereof "this section"; 
(C) in subsection (a)(3), by striking out "twenty" and 
* ' 
inserting in lieu thereof "20"; 
(D) in subsection (a)(4), by striking out "the" before "Con-
gress"; and 
(E) in subsection (b), by striking out "the authority of 
subsection (a) of'. 
" 
'- 
(21)(A) Section 2860 is amended— 
(i) by striking out "defense agency" and inserting in lieu 
^ ' 
thereof "to the Secretary of Defense"; 
(ii) by inserting "for obligation" after "remain available"; 
and 
(iii) by striking out "the" before "appropriation Acts". 
' 
(B) The item relating to that section in the table of sections at 
the beginning of subchapter III of chapter 169 is amended by 
... , 
striking out the last three words. 
(22) The items relating to chapter 138 in the table of chapters 
at the beginning of subtitle A, and in the table of chapters at 
the beginning of part IV of subtitle A, are amended by striking 
' 
out "2321" and inserting in lieu thereof "2341". 
(23) Section 5155(c) is amended by striking out "commodore" 
. and inserting in lieu thereof "rear admiral (lower halfi". 
(24) The heading of section 5442 is amended by striking out 
the second colon and inserting in lieu thereof a semicolon. 
(25) Section 1051(d) is amended— 
(A) by striking out "that title" in paragraph (1) and 
inserting in lieu thereof "title 37"; and 
(B) by striking out "and 'uniformed services' have the 
meanings given those terms" in paragraph (2) and inserting 
* 
in lieu thereof "has the meaning given that term", 
(b) AMENDMENTS TO TITLE 37.— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3995 
(1) Section 302(i) of title 37, United States Code, is amended by 
striking out "paragraph (1) of this subsection" and inserting in 
lieu thereof "subsection (c)(2) or (f) of this section". 
(2) Section 404(d)(1)(C) of such title is amended by striking out 
y 
"clause (1) of this subsection" and inserting in lieu thereof 
"subparagraph (A) of this paragraph". 
(3) The heading of section 405a of such title is amended to 
read as follows: 
"§ 405a. Travel and transportation allowances: departure allow-
ances". 
(c) AMENDMENTS TO TITLE 14,—Sections 256(b) and 288(a) of title 
14, United States Code, are amended by striking out "commodore" 
and inserting in lieu thereof "rear admiral (lower half)". 
PART F—MISCELLANEOUS 
SEC. 1351. LIMITATION ON SOURCE OF FUNDS FOR NICARAGUAN DEMO- 
^ - 
' -
CRATIC RESISTANCE 
(a) LIMITATION.—Notwithstanding 
title 
II of the 
Military 
lo USC114 note. 
Construction Appropriations Act, 1987, or any other provision of 
law, funds appropriated or otherwise made available to the Depart-
ment of Defense for any fiscal year for operation and maintenance 
may not be used to provide assistance for the democratic resistance 
forces in Nicaragua. If funds appropriated or otherwise made avail-
able to the Department of Defense for any fiscal year are author-
ized by law to be used for such assistance, funds for such purpose 
may only be derived from amounts appropriated or otherwise made 
available 
to the 
Department 
for 
procurement 
(other 
than 
ammunition). 
(b) REPORT.—Before funds appropriated or otherwise made avail-
able to the Department of Defense are released to be used for the 
purpose described in subsection (a), the Secretary of Defense shall 
submit to Congress a report describing the specific source of such 
funds. 
SEC. 1352. BUDGET ACCOUNTING FOR NEW SPACE SHUTTLE 
Funds appropriated for the procurement of a shuttle orbiter by 
the National Aeronautics and Space Administration to replace the 
Challenger space shuttle orbiter may not be charged by any official 
of the executive or legislative branch against major budget function 
category 050 (National Defense). 
SEC. 1353. PROMPT REPORTING 
OF INTELLIGENCE ON TERRORIST 
THREATS 
(a) IN GENERAL.—(1) Subject to subsection (b), the Secretary of 
Defense shall instruct all appropriate officials of the Department of 
Defense to take such action as may be necessary to ensure that all 
credible, time-sensitive intelligence received by or otherwise avail-
able to United States officials concerning potential terrorist threats 
to— 
(A) United States citizens or facilities (including citizens and 
facilities overseas); or 
(B) any other potential target for terrorist activities des-
ignated by the Secretary, 
is reported promptly to the headquarters or office of the Department 
of Defense concerned. 
100 STAT. 3996 
PUBLIC LAW 99-661—NOV. 14, 1986 
(2) The Secretary shall instruct such officials that such intel-
ligence is to be reported through the most appropriate and 
expeditious communications facilities available to the Department 
of Defense. 
(b) WAIVER.—The Secretary of Defense shall not be required to 
issue the instructions referred to in subsection (a) i
f
— 
(1) the Secretary determines that such instructions would be 
inappropriate or unwise; and 
(2) before March 1, 1987, notifies Congress of that determina-
tion and includes with the notification an explanation of the 
basis for such determination. 
SEC. 1354. USE OF MARINE 
MAMMALS FOR NATIONAL DEFENSE 
PURPOSES 
(a) IN GENERAL.—Chapter 645 of title 10, United States Code, is 
amended by adding at the end the following new section: 
10 use 7524. 
"§ 7524. Marine mammals: use for national defense purposes 
"(a) AUTHORITY.—Subject to subsection (c), the Secretary of 
a. • ] ' - ! - ; 
Defense may authorize the taking of not more than 25 marine 
mammals each year for national defense purposes. Any such 
authorization may be made only with the concurrence of the Sec-
retary of Commerce and after consultation with the Marine 
Mammal Commission established by section 201 of the Marine 
Mammal Protection Act of 1972 (16 U.S.C. 1401). 
"0?) HUMANE TREATMENT REQUIRED.—A mammal taken under 
this section shall be captured, supervised, cared for, transported, 
and deployed in a humane manner consistent with conditions estab-
lished by the Secretary of Commerce. 
"(c) PROTECTION FOR ENDANGERED SPECIES.—A mammal may not 
be taken under this section if the mammal is determined to be a 
member of an endangered or threatened species under section 4 of 
the Endangered Species Act of 1973 (16 U.S.C. 1533). 
"(d) APPLICATION OF OTHER ACT.—This section applies without 
regard to the provisions of the Marine Mammal Protection Act of 
1972 (16 U.S.C. 1361 et seq.).". 
(b) CLERICAL AMENDMENT.—The table of sections at the beginning 
of such chapter is amended by adding at the end the following new 
subsection: 
"7524. Marine mammals: use for national defense purposes.". 
SEC. 1355. REIMBURSEMENT FOR INCIDENTAL EXPENSES INCURRED 
WHILE PROVIDING VOLUNTARY SERVICES 
Section 1588 of title 10, United States Code, is amended by adding 
at the end the following new subsections: 
"(c) The Secretary concerned may provide for reimbursement of 
incidental expenses which are incurred by a person providing vol-
untary services under subsection (a) as an ombudsman or for a 
family service center program. The Secretary shall determine which 
expenses are eligible for reimbursement under this subsection. Any 
such reimbursement may only be made from nonappropriated 
funds.". 
SEC. 1356. DEFENSE OF LEGAL MALPRACTICE SUITS 
(a)(1) IN GENERAL.—Chapter 53 of title 10, United States Code (as 
amended by section 662), is amended by adding at the end the 
following new section: 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3997 
"§ 1054. Defense of certain suits arising out of legal malpractice 
10 USC 1054. 
"(a) The remedy against the United States provided by sections 
1346(b) and 2672 of title 28 for damages for injury or loss of property 
caused by the negligent or wrongful act or omission of any person 
who is an attorney, paralegal, or other member of a legal staff 
within the Department of Defense (including the National Guard 
while engaged in training or duty under section 316, 502, 503, 504, or 
505 of title 32), in connection with providing legal services while 
acting within the scope of the person's duties or employment, is 
exclusive of any other civil action or proceeding by reason of the 
same subject matter against the person (or the estate of the person) 
whose act or omission gave rise to such action or proceeding. 
"(b) The Attorney General shall defend any civil action or 
proceeding brought in any court against any person referred to in 
subsection (a) (or the estate of such person) for any such injury. Any 
person against whom such a civil action or proceeding is brought 
shall deliver, within such time after date of service or knowledge of 
service as determined by the Attorney General, all process served 
upon such person (or an attested true copy thereof) to such person's 
immediate superior or to whomever was designated by the head of 
the agency concerned to receive such papers. Such person shall 
promptly furnish copies of the pleading and process therein— 
"(1) to the United States attorney for the district embracing 
the place wherein the action or proceeding is brought; 
"(2) to the Attorney General; and 
"(3) to the head of the agency concerned. 
"(c) Upon a certification by the Attorney General that a person 
described in subsection (a) was acting in the scope of such person's 
duties or employment at the time of the incident out of which the 
suit arose, any such civil action or proceeding commenced in a State 
court— 
"(1) shall be removed without bond at any time before trial by 
the Attorney General to the district court of the United States 
of the district and division embracing the place wherein it is 
pending; and 
"(2) shall be deemed a tort action brought against the United 
States under the provisions of title 28 and all references thereto. 
Should a United States district court determine on a hearing on 
• a motion to remand held before a trial on the merits that the 
case so removed is one in which a remedy by suit within the 
meaning of subsection (a) is not available against the United 
States, the case shall be remanded to the State court. 
"(d) The Attorney General may compromise or settle any claim 
Claims. 
asserted in such civil action or proceeding in the manner provided in 
section 2677 of title 28, and with the same effect. 
"(e) For purposes of this section, the provisions of section 2680(h) 
of title 28 shall not apply to a cause of action arising out of a 
negligent or wrongful act or omission in the provision of legal 
assistance. 
"(f) The head of the agency concerned may hold harmless or Insurance. 
provide liability insurance for any person described in subsection (a) 
for damages for injury or loss of property caused by such person's 
negligent or wron^ul act or omission in the provision of authorized 
legal assistance while acting within the scope of such person's duties 
if such person is assigned to a foreign country or detailed for service 
with an entity other than a Federal department, agency, or 
100 STAT. 3998 
PUBLIC LAW 99-661—NOV. 14, 1986 
instrumentality or if the circumstances are such as are likely to 
preclude the remedies of third persons against the United States 
described in section 1346(b) of title 28, for such damage or injury, 
"(g) In this section, the term 'head of the agency concerned' 
means the Secretary of Defense or the Secretary of a military 
department.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"1054. Defense of certain suits arising out of legal malpractice.". 
10 use 1054 
(b) EFFECTIVE DATE.—Section 1054 of title 10, United States Code, 
^°^- 
as added by subsection (a), shall apply only to claims accruing on or 
after the date of the enactment of this Act, regardless of when the 
alleged negligent or wrongful act or omission occurred. 
SEC. 1357. OFF-POST 
RENTAL 
HOUSING 
LEASE 
INDEMNITY 
PILOT 
PROGRAM 
(a) ESTABLISHMENT OF PROGRAM.—(1) The Secretary of Defense 
shall establish a pilot program to test the feasibility of implement-
ing a program under which the Secretary of a military department 
may guarantee compensation of any person who leases a rental unit 
to any member of the Armed Forces under the jurisdiction of the 
Secretary for any breach of any lease or any damage to the rental 
unit by the member. 
(2) The program referred to in paragraph (1) shall be established 
not later than the end of the 90-day period beginning on the date of 
the enactment of this Act. 
(b) CONTENT OF PROGRAM.—(1) In accordance with action taken by 
the Secretary of Defense under subsection (a), the Secretary of each 
military department shall designate one military installation in the 
United States that is under the jurisdiction of such Secretary to 
participate in the program established under subsection (a). 
(2) For purposes of carrying out this section, the Secretary of a 
military department, to the extent funds are provided in advance in 
appropriation Acts, may enter into an agreement with any person 
who leases a rental unit to any member of the Armed Forces under 
the jurisdiction of the Secretary. Any agreement under this para-
graph shall provide that— 
(A) the term of the agreement shall not be for more than one 
year; 
(B) the member shall not pay a security deposit; 
(C) the Secretary (except as provided in subparagraphs (D) 
,. ii!;;. 
and (E)) shall compensate the lessor for any breach of the lease 
by the member and for any damage to the rental unit caused by 
the member or by any guest or dependent of the member; 
( 
(D) the total liability of the Secretary for any breach of the 
? 
lease or for any damage described in subparagraph (C) shall not 
I 
exceed an amount equal to the amount that the Secretary 
determines would have been required by the lessor as a security 
. ,' -f ' 
deposit absent the agreement authorized in this paragraph; 
(E) the Secretary shall not compensate the lessor for any 
breach of the lease or for any damage described in subpara-
graph (C) until the lessor exhausts any remedies available to the 
lessor against the member for the breach or damage; and 
(F) the Secretary shall be subrogated to the rights of the 
« 
lessor in any case in which the Secretary compensates the lessor 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 3999 
} 
for any breach of the lease or for any damage described in 
subparagraph (C). 
(3) Any authority of the Secretary of a military department under 
this section shall be exercised under regulations prescribed by the 
Secretary of Defense. 
(c) RECOVERY FROM MEMBER.—Any Secretary who compensates 
. . . 
any lessor under subsection (b) for any damage to a rental unit or 
any breach of a lease by a member of the Armed Forces may issue a 
special order under section 1007 of title 37, United States Code, to 
authorize the withholding from the pay of the member of an amount 
equal to the amount paid by the Secretary to the lessor as compensa-
tion for the breach or damage. 
(d) REPORT REQUIREMENT.—(1) The Secretary of Defense shall 
submit to Congress a report concerning the pilot program estab-
lished under subsection (a), including— 
(A) findings and conclusions of the Secretary with respect to 
the pilot program; and 
(B) recommendations as to the feasibility of implement-
ing a program similar to the pilot program on all military 
installations. 
(2) The report under paragraph (1) shall be submitted not later 
than the end of the 18-month period following the date of the 
establishment of the pilot program under subsection (a). 
(e) TERMINATION OF AUTHORITY.—The authority of the Secretary 
of a military department to enter into a contract under subsection 
(b) shall terminate at the end of the 18-month period following the 
date of the establishment of the pilot program under subsection (a). 
SEC. 1358. WAGE RATE FOR CERTAIN CORPS OF ENGINEERS EMPLOYEES 5 USC 5343 note. 
(a) WAGE DETERMINATIONS.—Notwithstanding any other provision 
of law, in the administration of the last undesignated paragraph 
preceding chapter 6 of title I of Public Law 97-257 (96 Stat. 832), the 
individuals described in subsection 0^) shall be paid wages deter-
mined in the same manner as that established in such undesignated 
paragraph with respect to United States Army Corps of Engineers 
employees paid from Corps of Engineers Special Power Rate 
Schedules. 
0)) COVERED INDIVIDUALS.—The individuals described in subsec- Michigan. 
tion (a) are electric powerplant controllers and powerplant shift 
operators (as defined under regulations prescribed by the Secretary 
of Defense) assigned to the Soo Locks Power Plant in the Detroit 
District in the North Central Region of the United States Army 
Corps of Engineers. 
(c) EFFECTIVE DATE.—Subsection (a) applies with respect to pay 
periods commencing on or after the date of the enactment of this 
Act. 
SEC. 1359. REIMBURSEMENT FOR TRANSFERRED DEFENSE INDUSTRIAL 
RESERVE EQUIPMENT 
(a) IN GENERAL.—Section 4 of the Defense Industrial Reserve Act 
(50 U.S.C. 453) is amended— 
(1) by inserting "(a)" before "To execute"; and 
(2) by adding at the end the following: 
"(b)(1) The Secretary of a military department to which equip-
ment or other property is transferred from the Defense Industrial 
Reserve shall reimburse appropriations available for the purposes of 
100 STAT. 4000 
PUBLIC LAW 99-661—NOV. 14, 1986 
the Defense Industrial Reserve for the full cost (including direct and 
indirect costs) of— 
"(A) storage of such property; 
• 
"(B) repair and maintenance of such property; and 
"(C) overhead allocated to such property. 
Regulations. 
"(2) The Secretary of Defense shall prescribe regulations establish-
ing general policies and fee schedules for reimbursements under 
paragraph (1).". 
50 use 453 note. 
(b) EFFECTIVE DATE.—(1) The regulations required to be prescribed 
by subsection (b) of section 4 of the Defense Industrial Reserve Act, 
as added by subsection (a), shall be prescribed not later than 60 days 
after the date of the enactment of this Act. 
(2) The requirement for reimbursement under such subsection 
shall apply with respect to property transferred from the Defense 
Industrial Reserve to a military department after the date on which 
such regulations are prescribed. 
SEC. 1360. EXTENSION OF EXEMPTION FOR DOD POLYGRAPH TEST 
PROGRAM 
Section 1221(e) of the Department of Defense Authorization Act, 
1986 (Public Law 99-145; 99 Stat. 727), is amended— 
(1) by striking out "or" at the end of clause (2); 
'^ 
(2) in clause (3)— 
(A) by striking out "cryptologic" and inserting in lieu 
, / . 
thereof "cryptographic"; and 
(B) by striking out the period at the end and inserting in 
lieu thereof "; and"; and 
' 
' 
(3) by adding at the end the following new clause: 
"(4) to any polygraph examination conducted under the 
authorization granted by the Secretary of Defense on August 31, 
1982, on a person who is participating in a national program— 
"(A) which has as its purpose the collection of specialized 
intelligence through reconnaissance; 
"(B) which is under the purview of the Director of Central 
Intelligence; and 
"(C) for which a requirement for a polygraph examina-
j>,,,ivk 
. 
tion was established on or before October 1, 1985, as a 
condition for participation in such program. 
The number of examinations conducted pursuant to such 
authorization during fiscal year 1987 may not exceed the 
number conducted pursuant to such authorization during fiscal 
year 1986.". 
SEC. 1361. IDENTIFICATION OF FACILITIES FOR THE DETENTION OF 
CERTAIN ALIENS 
Reports. 
Not later than January 15, 1987, the Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and 
House of Representatives a report containing— 
-. 
(1) a list of facilities under the jurisdiction of the Department 
of Defense that are suitable for use for the detention of 
Marielito criminal aliens and that are not otherwise needed by 
the Department of Defense; and 
(2) a statement of the estimated costs of using such facilities 
for the detention of such aliens. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4001 
SEC. 1362. CORRECTIONAL FACILITIES AT FORT RILEY, KANSAS 
The correctional facilities at Fort Riley, Kansas, may not be 
closed, transferred, or relocated unless— 
(1) the Secretary of Defense transmits to Congress a written 
notice of the intent to close, transfer, or relocate such facilities, 
as the case may be; and 
*' 
(2) the 180-day period beginning on the date on which Con-
gress receives such notice has expired. 
SEC. 1363. MINUTEMAN EDUCATION PROGRAM 
(a) RESTRICTION ON CHANGE IN SOURCE.—The Secretary of the 
Air 
Force may not change the source providing graduate educational 
services for the Minuteman Education Program from the source 
providing such services on May 1, 1986, until 60 days after the date 
on which the Secretary submits to the Committees on Armed Serv-
ices of the Senate and House of Representatives a report setting 
forth the Secretary's decision to change the source of such services 
and the reasons for such decision. 
(b) SUNSET PROVISION.—The provisions of subsection (b) expire one 
year after the date of the enactment of this Act. 
SEC. 1364. FOREIGN ESPIONAGE ACTIVITIES IN THE UNITED STATES 
(a) CONGRESSIONAL FINDINGS AND POLICIES.—The Congress makes 
the following findings: 
(1) The conduct of espionage activities (including the collec-
tion of classified and unclassified technological information) by 
the diplomatic and consular missions of the Soviet Union and 
certain other foreign diplomatic and consular missions within 
the United States (as well as by certain employees of inter-
national organizations acting on behalf of the Soviet Union or 
certain other foreign countries) represents a grave threat to the 
security of the United States. 
; K 
(2) The conduct of such activities constitutes a gross abuse of 
the rights, privileges, and immunities accorded to persons 
'< assigned to such missions, including the right to enter and 
reside within the United States (or any particular area thereof). 
(3) The Soviet Union and certain other countries take advan-
tage of the free and open society of the United States to carry 
out espionage against the United States. 
(4) The United States should take immediate and effective 
action to counteract espionage by the Soviet Union and certain 
; i other countries. 
(5) It is fully consistent with international law and the 
international obligations of the United States to take reason-
;<?;] able measures to prevent such activities, including measures 
which would (A) impose restrictions on the travel of such for-
eign officials within the United States, and (B) close to such 
officials certain areas of the United States. 
(b) CONGRESSIONAL POLICY.—The Congress declares that it is the 
policy of the United States to impose appropriate restrictions 
(including travel restrictions) on the official representatives of any 
foreign country, as well as upon the nationals of such country who 
are employed by international organizations, when the President 
determines that a pattern of abuses by that nation exists. 
(c) REPORT ON FOREIGN ESPIONAGE.—(1) The President shall 
submit to the Committee on Foreign Relations and the Select 
Reports. 
Union of Soviet 
Socialist 
Republics. 
International 
agreements. 
International 
organizations. 
President of U.S. 
100 STAT. 4002 
PUBLIC LAW 99-661—NOV. 14, 1986 
Defense and 
national 
security. 
10 u s e 9441 
note. 
Committee on Intelligence of the Senate and to the Committee on 
Foreign Affairs and the Permanent Select Committee on Intel-
ligence of the House of Representatives a report on foreign espio-
nage in the United States. Such report shall include the following: 
(A) An assessment of the effect of espionage activities in the 
United States conducted by the Soviet Union and certain other 
countries whose intelligence activities pose a threat to the 
national security of the United States. 
(B) An assessment of how such countries use the freedom to 
travel within the United States, accorded to the officials of such 
countries, to engage in espionage activities against the United 
States. 
(C) An assessment of the advantages and disadvantages of the 
principle of diplomatic reciprocity and the consequences of such 
reciprocity on the national security of the United States. 
(D) Recommendations for measures to curtail espionage 
against the United States, including the following: 
(i) Prohibiting the personnel of certain foreign govern-
ments and certain international organizations from travel-
ing in designated areas of the United States. 
(ii) Identifying the governments to whose nationals such 
restrictions are to apply. 
(iii) Identifying those foreign governments which have 
closed certain areas of their countries to United States 
diplomatic and consular personnel and, in the case of each 
such country, the number of such closed areas and the size 
of such areas in relation to the total area of the country. 
(2) The report shall be prepared under the direction of the Sec-
retary of State and in close cooperation with the Secretary of 
Defense, the Director of Central Intelligence, and the Director of the 
Federal Bureau of Investigation. 
(3) The report required by paragraph (1) shall be submitted in both 
a classified and unclassified version. 
(4) Such report shall be submitted not later than March 1, 1987. 
SEC. 136.5. CIVIL AIR PATROL 
(a) PAYMENT OF EXPENSES OF PLACING EQUIPMENT INTO SERVICE-
ABLE CONDITION —Section 9441(b)(9) of title 10, United States Code, 
is amended by striking out "a major item of equipment furnished to 
the Civil Air Patrol under clause (1)" and inserting in lieu thereof 
"major items of equipment (including aircraft, motor vehicles, and 
communications equipment) owned by the Civil Air Patrol". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply with respect to funds appropriated for fiscal years after 
fiscal year 1986. 
SEC. 1366. AMENDMENT OF MILITARY SELECTIVE SERVICE ACT TO PRO-
VIDE ELIGIBILITY FOR BENEFITS TO CERTAIN PERSONS 
WHO FAIL TO REGISTER 
Section 12 of the Military Selective Service Act (50 U.S.C. App. 
462) (relating to penalties) is amended— 
(1) b> striking out "Any person" in subsection (f)(1) and 
inserting in lieu thereof "Except as provided in subsection (g), 
any person"; and 
*" 
(2) by adding at the end the following new subsection. 
PUBLIC LAW 99-661-NOV. 14, 1986 
100 STAT. 4003 
"(g) A person may not be denied a right, privilege, or benefit 
under Federal law by reason of failure to present himself for and 
submit to registration under section 3 i
f
— 
"(1) the requirement for the person to so register has termi-
nated or become inapplicable to the person; and 
"(2) the person shows by a preponderance of the evidence that 
the failure of the person to register was not a knowing and 
willful failure to register.". 
SEC. 1367. CORRECTION OF EFFECTS OF CONTAMINATION AT ROCKY 
MOUNTAIN ARSENAL 
(a) USE OF AMOUNTS RECEIVED FROM LITIGATION.—(1) Any amount 
received as the result of the litigation described in paragraph (2) 
(whether from a judgment rendered in such litigation or from a 
settlement of such litigation) shall be available, without fiscal year 
limitation, to the Secretary of the Army only for purposes of correct-
ing the effects of contamination at the Rocky Mountain Arsenal. 
(2) The litigation referred to in paragraph (1) is any litigation 
between the United States and any person concerning the liability 
of such person for correcting the effects of contamination at the 
Rocky Mountain Arsenal or for cost recovery relating to correcting 
the effects of such contamination. 
(b) ACCEPTANCE OF SERVICES.—In partial settlement of the litiga-
tion described in subsection (a), the United States may accept serv-
ices that correct the effects of contamination at the Rocky Mountain 
Arsenal. 
SEC. 1368. SENSE OF CONGRESS REGARDING THE DEATH OF LIEUTENANT 
COLONEL ARTHUR D. NICHOLSON, JUNIOR 
(a) FINDINGS.—The Congress finds the following: 
(1) On March 24, 1985, Lieutenant Colonel Arthur D. Nichol-
son, Junior, of the United States Army (then holding the grade 
of major) was carrying out his official duties as a liaison officer 
of the United States Military Liaison Mission. 
(2) On that date. Lieutenant Colonel Nicholson was perform-
ing his duties in uniform and in an open and direct manner, 
according to orders, and was conducting himself in a way which 
was neither provocative nor beyond the limits of proper conduct 
for members of the United States Military Liaison Mission, and 
which was well understood and accepted by the Soviet Union. 
(3) On that date, a member or members of the armed forces of 
the Soviet Union shot and fatally wounded Lieutenant Colonel 
Nicholson without warning and without provocation. 
(4) After having shot Lieutenant Colonel Nicholson, members 
of the armed forces of the Soviet Union forcibly restrained 
Lieutenant Colonel Nicholson's aide and prevented him from 
providing medical assistance to Lieutenant Colonel Nicholson, 
so that Lieutenant Colonel Nicholson died slowly and with great 
suffering, which death and suffering might have been prevented 
had Lieutenant Colonel Nicholson been permitted to receive 
assistance. 
(5) The death of Lieutenant Colonel Nicholson was an un-
timely, unnecessary, cold-blooded murder committed against a 
United States military officer in pursuit of his official duties by 
a member or members of the armed forces of the Soviet Union, 
in a painful and degrading manner. 
50 u s e app. 
2216. 
Union of Soviet 
Socialist 
Republics. 
100 STAT. 4004 
PUBLIC LAW 99-661—NOV. 14, 1986 
Union of Soviet 
Socialist 
Republics. 
President of U.S. 
(b) SENSE OF CONGRESS.—The Congress deplores and condemns the 
cold-blooded murder of Lieutenant Colonel Arthur D. Nicholson, 
Junior. It is the sense of Congress that the Government of the Soviet 
Union should— 
(1) apologize for and renounce the murder of Lieutenant 
Colonel Nicholson; and 
(2) indemnify the family of Lieutenant Colonel Nicholson 
financially. 
SEC. 1369. DEADLINE FOR APPOINTMENT OF MEMBERS OF COMMISSION 
ON MERCHANT MARINE AND DEFENSE 
The President shall appoint members of the Commission on Mer-
chant Marine and Defense as required by section 1536(c)(1)(C) of the 
Department of Defense Authorization Act, 1985 (Public Law 98-525; 
98 Stat. 2633), not later than the end of the 30-day period beginning 
on the date of the enactment of this Act. 
SEC. 1370. AVAILABILITY OF NUCLEAR NON-PROLIFERATION INFORMA-
TION TO DEPARTMENT OF DEFENSE 
Section 602 of the Nuclear Non-Proliferation Act of 1978 (22 
U.S.C. 3282) is amended— 
(1) by inserting "the Department of Defense," in subsection (c) 
after "Department of State,"; and 
(2) by adding at the end the following new subsection: 
"(f)(1) The Secretary of Defense shall have access, on a timely 
basis, to all information regarding nuclear proliferation matters 
which the Secretary of State or the Secretary of Energy has or is 
entitled to have. Such access shall include access to all communica-
tions, materials, documents, and records relating to nuclear pro-
liferation matters. 
"(2) This subsection does not apply to any intradepartmental 
document of the Department of State or the Department of Energy, 
or any portion of such document, that is solely concerned with 
internal, confidential advice on policy concerning the conduct of 
interagency deliberations on nuclear proliferation matters.". 
SEC. 1371. NUCLEAR WINTER STUDY AND REPORT 
(a) STUDY.—The Secretary of Defense shall conduct a comprehen-
sive study on the atmospheric, climatic, biological, health, and 
environmental consequences of nuclear explosions and nuclear ex-
changes and the implications that such consequences have for the 
nuclear weapons, arms control, and civil defense policies of the 
United States. 
(b) REPORT.—Not later than November 1, 1987, the Secretary shall 
submit to the President and the Congress an unclassified report 
suitable for release to the public, with classified addenda if nec-
essary, on the study conducted under subsection (a). The report shall 
contain the following: 
(1) A detailed review and assessment of the findings in the 
current body of domestic and international scientific literature 
on the atmospheric, climatic, biological, health, and environ-
; 
mental consequences of nuclear explosions and nuclear ex-
changes. 
(2) A thorough evaluation of the implications that such 
findings have on— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4005 
^
f
, 
(A) the nuclear weapons policy of the United States, 
especially with regard to strategy, targeting, planning, com-
mand, control, procurement, and deployment; 
(B) the nuclear arms control policy of the United States; 
and 
(C) the civil defense policy of the United States. 
(3) A discussion of the manner in which the results of such 
evaluation of policy implications will be incorporated into the 
nuclear weapons, arms control, and civil defense policies of the 
United States. 
(4) An analysis of the extent to which current scientific 
findings on the consequences of nuclear explosions are being 
studied, disseminated, and used in the Soviet Union. 
(5) A plan for a five-year research program to advance under-
standing of nuclear winter and an estimate of the funding 
necessary to carry out such a research program. 
(c) EVALUATION OF REPORT.—Upon submission of the report under 
subsection (b), the Secretary shall contract with the National Acad-
emy of Sciences to— 
(1) make an independent evaluation of the material contained 
in the report; and 
(2) not later than April 1, 1988, submit a report to the 
Secretary of Defense and to the Committees on Armed Services 
of the Senate and of the House of Representatives, setting forth 
the results of the evaluation and any recommendations pertain-
ing to the contents of the report, including the plan for the five-
year research program. 
SEC. 1372. SALE OF TWO NAVAL VESSELS 
(a) AUTHORIZATION OF SALE TO TAIWAN.—The Secretary of the 
Navy is hereby authorized to sell two patrol gunboats of the Tacoma 
class to the Coordination Council for North American Affairs, rep-
resenting the people on Taiwan, in accordance with section 
7307(b)(1) of title 10, United States Code, and the Taiwan Relations 
Act (Public Law 96-8; 22 U.S.C. 3301 et seq.). 
(b) CONDITIONS.—A sale of a vessel under subsection (a)— 
(1) shall be subject to such terms and conditions as the 
President may require; and 
(2) shall be for a price not less than the value in United States 
dollars of the vessel involved. 
(c) RECOVERY OF UNITED STATES EXPENSES.—Any expense of the 
United States in connection with the transfer of a vessel sold under 
subsection (a) shall be charged to the purchaser. 
(d) EXPIRATION OF AUTHORITY.—The authority of the Secretary of 
the Navy under subsection (a) expires at the end of the two-year 
period beginning on the date of the enactment of this Act. 
SEC. 1373. DRUG INTERDICTION 
(a) COMPREHENSIVE PROGRAM.—Not later than 180 days after the 
date of the enactment of this Act, the President shall submit to 
Congress a comprehensive program designed to interdict aircraft, 
vessels, and vehicles carrying illegal drugs into the United States. 
The program shall include the following: 
(1) A clear division of authority in drug interdiction and drug 
enforcement efforts among all Federal law enforcement agen-
cies involved in those efforts and a mechanism which will 
Reports. 
President of U.S. 
Aircraft and air 
carriers. 
Maritime affairs. 
Motor vehicles. 
100 STAT. 4006 
PUBLIC LAW 99-661—NOV. 14, 1986 
Law 
enforcement and 
crime. 
Uniformed 
services. 
10 u s e 371 et 
seq. 
President of U.S. 
Armed Forces. 
Aircraft and air 
carriers. 
Maritime affairs. 
Alaska. 
Hawaii. 
insure maximum coordination and cooperation among those 
agencies. 
(2) Designation of a lead agency principally responsible for 
each of the following areas: marine and air drug interdiction 
beyond the borders of the United States; domestic and border 
drug interdiction efforts; and domestic and foreign drug law 
enforcement efforts. 
(3) A requirement that such lead agency shall be advised 
where possible in advance of activities by any other agency in 
its area of responsibility and that, upon objection by the lead 
agency, the matter shall be referred to the National Drug 
Enforcement Policy Board for resolution. 
(4; A comprehensive plan to enhance the capabilities, man-
power and equipment of the United States Coast Guard by the 
end of fiscal year 1989 in order to substantially increase the role 
of the Coast Guard in drug interdiction and enforcement efforts. 
Such plan shall specify requirements for command and control 
between the Coast Guard and the Department of Defense and 
civilian drug law enforcement and interdiction agencies. 
(5) A comprehensive plan to maximize, to the extent it does 
not adversely affect military preparedness and consistent with 
the provisions of chapter 18 of title 10, United States Code, 
assistance by the Department of Defense to other agencies in 
the drug enforcement and interdiction effort. 
(6) A requirement that maximum use be made of existing 
Department of Defense and Coast Guard command and control 
networks as well as other available military resources, includ-
ing equipment, intelligence, and training capabilities. 
(b) REPORT —Not later than 180 days after the date of the enact-
ment of this Act, the President shall submit to Congress a report 
discussing the following: 
(V Recommendations for amendments to chapter 18 of title 
10, United States Code, to allow more efficient use of the Armed 
Forces in combatting illegal drug trafficking. 
(2) The legal consequences of amending chapter 18 of title 10, 
United States Code, to permit the direct participation of mem-
bers of the Armed Forces in the interdiction of vessels or 
aircraft, search and seizure, arrest, or other similar activity in 
the assistance of civilian law enforcement officials. 
(3) The amount of training, the cost of training, and the 
number of military personnel required to effectuate the changes 
referred to in paragraph (2). 
(4) The effect on military preparedness of a drug interdiction 
program that would require the Armed Forces to halt the 
unlawful penetration of tne United States borders by aircraft 
and vessels carrying narcotics and that would use military 
personnel to locate, pursue, and seize such vessels and aircraft 
and to arrest their crews. 
v5) The costs in the areas of procurement, operation and 
maintenance, and personnel which would be necessary to re-
store military preparedness to the level existing before 
commencement of the program described in paragraph (4). 
(6^ The cost and number of aircraft, vessels, and personnel 
needed to seal the borders of the United States, including 
Alaska and Hawaii, to interdict the unlawful penetration of 
aircraft, vessels, and ground traffic carrying narcotics. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4007 
(7) The cost and number of aircraft and personnel needed to 
provide continuous aerial radar coverage of the United States in 
order to interdict the unlawful penetration of aircraft carrying 
narcotics. 
(8) The cost and number of rotor wing and fixed wing aircraft 
needed to pursue and seize intruding aircraft detected by the 
radar coverage referred to in paragraph (7) including a plan for 
the deployment of such rotor wing and fixed wing aircraft. 
(9) The effect of carrying out the program referred to in 
paragraph (4) of the United States' ability to meet its defense 
responsibilities, particularly to members of the North Atlantic 
Treaty Organization, Japan, Korea, and Australia. 
(c) ASSISTANCE TO AGENCIES.—Section 374 of title 10, United States 
Code, is amended by adding at the end the following new subsection: 
"(d) In the case of a request from a head of an agency specified in 
subsection (a), the Secretary shall provide to that agency such 
assistance as the Secretary considers appropriate to carry out that 
agency's drug interdiction and enforcement responsibilities.". 
(d) RELATIONSHIP TO CHAPTER 18.—Nothing in this section shall be 
construed to abrogate the restrictions contained in chapter 18 of 
title 10, United States Code. 
SEC. 1374. GRANTS TO THE HENRY M. JACKSON FOUNDATION 
(a) IN GENERAL.—The Secretary of Defense shall make grants to 
the Henry M. Jackson Foundation (a nonprofit corporation operat-
ing under the laws of the District of Columbia) to support the 
ongoing educational program of the Foundation. Purposes for which 
funds provided under this section may be used to include scholar-
ships, fellowships, professorships, lectures and symposia, exchanges 
and other educational initiatives at national institutions of higher 
education. 
(b) TERMS AND CONDITIONS OF GRANTS.—The purposes, terms, and 
conditions of grants made under this section shall be prescribed in 
an agreement to be entered into between the Secretary and the 
Foundation. 
(c) AUTHORITY TO USE INTEREST INCOME.—If funds made available 
to the Foundation under this section are invested by the Foundation 
(or any of its subgrantees) pending the disbursement of those funds, 
any interest realized from such investment shall not be required to 
be deposited in the Treasury if it is used for the purposes for which 
the funds were made available. 
(d) SOURCE OF FUNDS.—Grants under this section shall be made 
from any funds available to the Department of Defense for 
obligation. 
(e) AMOUNT AND DEADLINE FOR MAKING GRANTS.—The Secretary 
shall make grants under this section in the amount of $10,000,000 
not later than January 1,1987. 
SEC. 1375. BUDGET ACCOUNTING FOR NEW SPACE SHUTTLE 
Funds appropriated for the procurement of a shuttle orbiter by the 
National Aeronautics and Space Administration to replace the 
Challenger space shuttle orbiter may not be charged by any official 
of the executive or legislative branch against major budget function 
category 050 (National Defense). 
TITLE 
XIV—BARRY 
GOLDWATER 
SCHOLARSHIP 
AND 
EXCELLENCE 
IN 
EDUCATION 
PROGRAM 
SEC. 1401. SHORT TITLE 
n-iPi 
Japan. 
Korea. 
Australia. 
10 u s e 371 et 
This title may be cited as the 
Excellence in Education Act". 
'Barry Goldwater Scholarship and 
Barry Goldwater 
Scholarship and 
Excellence in 
Education Act. 
20 u s e 4701 
note. 
100 STAT. 4008 
PUBLIC LAW 99-661—NOV. 14, 1986 
20 use 4701. 
SEC. 1402. FINDINGS 
The Congress makes the following findings: 
Arizona. 
(1) Senator Barry Goldwater of the State of Arizona has 
served his country for 56 years as a soldier and statesman, 
including service in the United States Senate for a period of 30 
years. 
(2) Senator Goldwater has a distinguished record as a Senator, 
including service as Chairman of the Select Committee on 
Intelligence of the Senate and as Chairman of the Committee on 
Armed Services of the Senate. 
(3) Senator Goldwater has long maintained a special interest 
in the education of America's youth, particularly in the fields of 
science and mathematics. 
(4) It would, therefore, be a fitting tribute to the leadership, 
courage, and vision of Senator Goldwater to establish in his 
name a scholarship program to foster and encourage excellence 
in science and mathematics. 
20 use 4702. 
SEC. 1403. DEFINITIONS 
In this title: 
'•' 
(1) The term "Foundation" means the Barry Goldwater Schol-
arship and Excellence in Education Foundation established 
under section 1404(a). 
(2) The term "Board" means the Board of Trustees of the 
Barry Goldwater Scholarship and Excellence in Education 
Foundation established under section 1404(b). 
(3) The term "fund" means the Barry Goldwater Scholarship 
and Excellence in Education Fund provided for under section 
1408. 
(4) The term "institution of higher education" means any 
such institution as defined in section 1201(a) of the Higher 
Education Act of 1965 (20 U.S.C 1141(a)). 
(5) The term "State" means each of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, and, 
considered as a single entity, Guam, the Virgin Islands, Amer-
ican Samoa, the Trust Territories of the Pacific Islands, and the 
Commonwealth of the Northern Marianas. 
(6) The term "eligible person" means a citizen or national of 
the United States or a permanent resident alien of the United 
States. 
20 use 4703. 
SEC. 1404. ESTABLISHMENT OF THE BARRY GOLDWATER SCHOLARSHIP 
AND EXCELLENCE IN EDUCATION FOUNDATION 
(a) EsTABUSHMENT.—There is established, as an independent 
establishment of the executive branch of the United States Govern-
ment, the Barry Goldwater Scholarship and Excellence in Education 
Foundation. 
(b) BOARD OF TRUSTEES.—The Foundation shall be subject to the 
supervision and direction of the Board of Trustees. The Board shall 
be composed of 13 members, as follows: 
(1) Two members from the Senate, one appointed by the 
majority leader and one appointed by the minority leader of the 
Senate. 
(2) Two members from the House of Representatives, one 
appointed by the majority leader and one appointed by the 
minority leader of the House of Representatives. 
(3) Eight members, not more than four of whom shall be of the 
same political party, to be appointed by the President, by and 
with the advice and consent of the Senate, at least one of whom 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4009 
shall be a representative of the aerospace industry and at least 
one of whom shall be a representative of a private foundation 
concerned with aerospace education. 
(4) The Secretary of Education, or his designee, who shall 
serve ex officio as a member of the Board but shall not be 
eligible to serve as Chairman. 
(c) TERM OF OFFICE.—(1) The term of office of each member of the 
Board shall be six years, except that— 
(A) the members first taking office shall serve as designated 
by the President, four for terms of two years, five for terms of 
four years, and four for terms of six years, and 
(B) a member appointed to fill a vacancy shall serve for the 
remainder of the term for which his predecessor was appointed 
. 
and shall be appointed in the same manner as the original 
appointment for that vacancy was made. 
(2) A Member of Congress appointed to the Board under clause (2) 
or (3) of subsection (b) may not serve as a member of the Board for 
more than a total of six years. 
(d) TRAVEL AND SUBSISTENCE PAY.—Members of the Board shall 
serve without pay, but shall be entitled to reimbursement for travel, 
subsistence, and other necessary expenses incurred in the perform-
ance of their duties. 
SEC. 1405. BARRY GOLDWATER SCHOLARSHIP AND EXCELLENCE IN 
20 USC 4704. 
EDUCATION AWARDS 
(a) AWARD OF SCHOLARSHIPS AND FELLOWSHIPS.—(1) The Founda-
tion may award scholarships and fellowships to eligible persons for 
study in the fields of science and mathematics. Such scholarships 
and fellowships shall be awarded to persons as provided in this title 
who meet the minimum criteria established by the Foundation. 
(2) Scholarships shall be awarded to outstanding undergraduate 
students who intend to pursue careers in mathematics and the 
natural sciences. 
(3) Fellowships shall be awarded to outstanding graduate students 
who intend to pursue advanced degrees in mathematics and the 
natural sciences. 
(4) The Foundation may provide, directly or by contract, for the 
conduct of nationwide competition for the purpose of selecting 
recipients of scholarships and fellowships awarded under this title. 
(b) Recipients of scholarships and fellowships under this title shall 
be known as "Barry Goldwater Scholars". 
(c)(1) The Foundation may award honoraria to outstanding edu-
cators, teachers, and persons who have volunteered to assist in 
secondary schools who have made significant contributions to 
improve the quality of instruction in mathematics and sciences in 
the secondary school. To the extent the Board determines such 
action practicable, honoraria awarded under this subsection shall be 
awarded annually to persons described in the preceding sentence as 
follows: 
(A) To two persons selected at large from each State. 
(B) To one person selected from each county in each State. 
(C) To persons affiliated with secondary schools on military 
reservations. 
(D) To persons affiliated with the dependent overseas school 
system. 
(2) The Board shall establish a schedule of honoraria to be 
awarded under paragraph (1). 
Contracts. 
Voluntarism. 
100 STAT. 4010 
PUBLIC LAW 99-661—NOV. 14, 1986 
20 use 4705. 
SEC. 1406. STIPENDS 
Each person awarded a scholarship or fellowship under this title 
shall receive a stipend which shall not exceed the cost to such 
person for tuition, fees, books, room and board, or such lesser 
amount as may be prescribed by the Board. 
20 use 4706. 
SEC. 1407. SCHOLARSHIP CONDITIONS 
(a) IN GENERAL.—A person awarded a scholarship under this title 
may receive payments authorized under this title only during such 
periods as the Foundation finds that the person is maintaining 
satisfactory proficiency and devoting full time to study or research 
and is not engaging in gainful employment other than employment 
approved by the Foundation pursuant to regulations of the Board. 
(b) REPORTS.—The Foundation may require reports containing 
such information in such form and to be filed at such times as the 
Foundation determines to be necessary from any person awarded a 
scholarship under this title. Such reports shall be accompanied by a 
certificate from an appropriate official at the institution of higher 
education, approved by the Foundation, stating that such person is 
making satisfactory progress in, and is devoting essentially full time 
to study or research, except as otherwise provided in subsection (a). 
20 use 4707. 
SEC. 1408. BARRY GOLD 
WATER SCHOLARSHIP AND EXCELLENCE IN 
EDUCATION FUND 
(a) ESTABLISHMENT OF FUND.—There is established in the Treas-
ury of the United States a trust fund to be known as the Barry 
Goldwater Scholarship and Excellence in Education Fund. The fund 
shall consist of amounts appropriated to it pursuant to section 1412 
and amounts credited to it under subsection (d). 
(b) INVESTMENT OF FUND ASSETS.—It shall be the duty of the 
Secretary of the Treasury to invest in full the amounts appropriated 
to the fund. Such investments may be made only in interest-bearing 
obligations of the United States or in obligations guaranteed as to 
both principal and interest by the United States. For such purpose, 
such obligations may be acquired (1) on original issue at the issue 
price, or (2) by purchase of outstanding obligations at the market 
' 
place. The purposes for which obligations of the United States may 
31 use 3121. 
be issued under the Second Liberty Bond Act are hereby extended to 
authorize the issuance at par of special obligations exclusively to the 
fund. Such special obligations shall bear interest at a rate equal to 
the average rate of interest, computed as to the end of the calendar 
r , 
month next preceding the date of such issue, borne by all market-
able interest-bearing obligations of the United States then forming a 
part of the public debt, except that where such average rate is not a 
multiple of Vs of 1 percent, the rate of interest of such special 
obligations shall be the multiple of Vs of 1 percent next lower than 
such average rate. Such special obligations shall be issued only if the 
Secretary determines that the purchases of other interest-bearing 
obligations of the United States, or of obligations guaranteed as to 
both principal and interest by the United States or original issue or 
at the market price, is not in the public interest. 
(c) AUTHORITY TO SELL OBUGATIONS.—Any oblig:ation acquired by 
the fund (except special obligations issued exclusively to the fund) 
may be sold by the Secretary at the market price, and such special 
obligations may be redeemed at par plus accrued interest. 
(d) PROCEEDS FROM CERTAIN TRANSACTIONS CREDITED TO FUND.— 
The interest on, and the proceeds from the sale or redemption of, 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4011 
any obligations held in the fund shall be credited to and form a part 
of the fund. 
SEC. 1409. EXPENDITURES FROM THE FUND 
20 USC 4708. 
(a) IN GENERAL.—The Secretary of the Treasury may pay to the 
Foundation from the interest and earnings of the fund such sums as 
the Board determines are necessary and appropriate to enable the 
Foundation to carry out the purposes of this title. 
(b) AUDITS BY GAO.—The activities of the Foundation under this 
title may be audited by the General Accounting Office under such 
rules and regulations as may be prescribed by the Comptroller 
General of the United States. Representatives of the General 
; ^ . 
Accounting Office shall have access to all books, accounts, records, 
reports, and files and all other papers, things, or property belonging 
to or in use by the Foundation pertaining to such activities and 
necessary to facilitate the audit. 
SEC. 1410. EXECUTIVE SECRETARY 
20 USC 4709. 
(a) APPOINTMENT BY BOARD.—There shall be an Executive Sec- 
.. 
retary of the Foundation who shall be appointed by the Board. The 
Executive Secretary shall be the chief executive officer of the 
Foundation and shall carry out the functions of the Foundation 
subject to the supervision and direction of the Board. The Executive 
Secretary shall carry out such other functions consistent with the 
provisions of this title as the Board shall prescribe. 
(b) COMPENSATION.—The Executive Secretary of the Foundation 
shall be compensated at the rate specified for employees in grade 
GS-18 of the General Schedule under section 5332 of title 5, United 
States Code. 
SEC. 1411. ADMINISTRATIVE PROVISIONS 
20 USC 4710. 
(a) IN GENERAL.—In order to carry out this title, the Foundation 
may— 
(1) appoint and fix the compensation of such personnel as may 
be necessary to carry out the provisions of this title, except that 
in no case may an employee other than the Executive Secretary 
be compensated at a rate to exceed the maximum rate provided 
for employees in grade GS-15 of the General Schedule under 
section 5832 of title 5, United States Code; 
(2) procure temporary and intermittent services of experts 
and consultants as are necessary to the extent authorized by 
section 3109 of title 5, United States Code, but at rates not to 
exceed the rate specified at the time of such service for grade 
GS-18 under section 5332 of such title; 
(3) prescribe such regulations as it considers necessary 
Regulations. 
governing the manner in which its functions shall be carried 
out; 
(4) receive money and other property donated, bequeathed, or 
devised, without condition or restriction other than it be used 
for the purposes of the Foundation, and to use, sell, or otherwise 
dispose of such property for the purpose of carrying out its 
functions; 
(5) accept 
and use the 
services 
of voluntary 
and 
noncompensated personnel and for travel expenses, including 
per diem, as authorized by section 5703 of title 5, United States 
Code; 
100 STAT. 4012 
PUBLIC LAW 99-661—NOV. 14, 1986 
Contracts. 
Grants. 
District of 
Columbia. 
20 u s e 4711. 
Military 
Construction 
Authorization 
Act, 1987. 
(6) enter into contracts or other arrangements, or make 
grants, to carry out the provisions of this title, and enter into 
such contracts or other arrangements, or make such grants, 
with the concurrence of two-thirds of the members of the Board, 
without performance or other bonds and without regard to 
section 3709 of the Revised Statutes (41 U.S.C. 5); 
(7) rent office space in the District of Columbia; and 
(8) make other necessary expenditures. 
(b) ANNUAL REPORT.—The Foundation shall submit to the Presi-
dent and to Congress an annual report of its operations under this 
title. 
SEC. 1412. AUTHORIZATION OF APPROPRIATIONS 
There is hereby authorized to be appropriated to the fund 
$40,000,000 to carry out this title. 
DIVISION B—MILITARY CONSTRUCTION 
AUTHORIZATIONS 
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS 
(a) SHORT TITLE.—This division may be cited as the "Military 
Construction Authorization Act, 1987". 
(b) TABLE OF CONTENTS OF DIVISION.—The table of contents of this 
division is as follows: 
Sec. 2001. Short title; table of contents. 
TITLE I—ARMY 
Sec. 2101. Authorized Army construction and land acquisition projects. 
Sec. 2102. Family housing. 
Sec. 2103. Improvements to military family housing units. 
Sec. 2104. Fort Drum, New York. 
Sec. 2105. Community planning assistance. 
'
* 
•'' 
' 
Sec. 2106. Authorization of appropriations, Army. 
-^'f <
;
.
*
?
? 
Sec. 2107. Extension of certain prior year authorizations. 
irv -
< 
* 
TITLE II—NAVY 
Sec. 2201. Authorized Navy construction and land acquisition projects. 
Sec. 2202. Family housing. 
Sec. 2203. Improvements to military family housing units. 
Sec. 2204. Acquisition of existing housing units on Guam. 
Sec. 2205. Increase in title total amount for military construction project at Kings 
Bay, Georgia. 
Sec. 2206. Certain enlisted quarters, Guam. 
Sec. 2207. Limitation on use of funds for certain homeporting. 
Sec. 2208. Authorization of appropriations. Navy. 
Sec. 2209. Extension of certain prior year authorizations. 
V ,.:.. 
TITLE III—AIR FORCE 
Sec. 2301. Authorized Air Force construction and land acquisition projects. 
Sec. 2302. Family housing. 
Sec. 2303. Improvements to military family housing units. 
Sec. 2304. Restriction on certain military construction funding. 
Sec. 2305. Authorization of appropriations. Air Force. 
"''' 
Sec. 2306. Extension of certain prior year authorizations. 
TITLE IV—DEFENSE AGENCIES 
Sec. 2401. Authorized construction projects and land acquisition for the defense 
agencies. 
Sec. 2402. Family housing. 
Sec. 2403. Brooke Army Medical Center. 
. 
. 
' 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4013 
Sec. 2404. Hazardous waste storage. 
Sec. 2405. Authorization of appropriations, defense agencies. 
Sec. 2406. Extension of prior year authorizations. 
' 
, 
;; 
TITLE V—NORTH ATLANTIC TREATY ORGANIZATION INFRASTRUCTURE 
Sec. 250L Authority of the Secretary of Defense to make contributions. 
Sec. 2502. Authorization of appropriations, NATO. 
Sec. 2503. Amendment to NATO infrastructure program. 
Sec. 2504. Restriction on certain funding. 
TITLE VI—GUARD AND RESERVE FORCES FACILITIES 
Sec. 260L Authorization for Guard and Reserve facilities. 
TITLE VII—GENERAL PROVISIONS 
PART A—EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE SPECIFIED 
B
Y LAW 
Sec. 270 L Expiration of authorizations and amounts required to be specified by law. 
Sec. 2702. Codification of certain amounts required to be specified by law. 
PART B—MILITARY CONSTRUCTION PROGRAM PROVISIONS 
Sec. 2711. Test of long-term facilities contracts. 
Sec. 2712. Planning and design. 
Sec. 2713. Build-to-lease and rental guarantee pilot programs. 
Sec. 2714. Foreign leases for personnel holding special positions. 
PART C—MISCELLANEOUS PROVISIONS 
Sec. 2721. Postal facilities. 
Sec. 2722. Community planning assistance. 
Sec. 2723. Release of certain use rights held by the United States. 
Sec. 2724. Prohibition of funding for certain military construction contracts on 
Guam. 
Sec. 2725. Prohibition on design of Pentagon annex. 
Sec. 2726. Study of needs of dependents' educational 
facilities on 
military 
installations. 
Sec. 2727. Study of use of property at Los Alamitos Armed Forces Reserve Center, 
California, for military family housing. 
Sec. 2728. Real estate acquisition report. 
PART D—REAL PROPERTY TRANSACTIONS 
Sec. 2731. Land conveyance, Fort Huachuca, Arizona. 
Sec. 2732. Lease and development of certain real property, San Diego, California. 
Sec. 2733. Selection of site for military family housing at San Pedro, California. 
Sec. 2734. Granting of easements and replacement of family housing units and 
other facilities at Marine Corps Air Station, El Toro, California. 
Sec. 2735. Land conveyance, March Air Force Base, California. 
Sec. 2736. Land exchange, Long Beach Naval Station, California. 
Sec. 2737. Land 
conveyance, Whittier 
Narrows 
Dam, Los Angeles County, 
California. 
Sec. 2738. Authorization of land conveyance to city of Arcadia, California. 
Sec. 2739. Land exchange, Orlando, Florida. 
Sec. 2740. Sale of land and replacement of certain warehousing facilities, Kapalama 
Military Reservation, Hawaii. 
Sec. 2741. Land exchange, Aiea, Hawaii. 
Sec. 2742. Land exchange, Santa Fe, New Mexico. 
Sec. 2743. Lease of property at the Naval Weapons Station, Charleston, South 
Carolina. 
Sec. 2744. Property management. 
100 STAT. 4014 
PUBLIC LAW 99-661—NOV. 14, 1986 
TITLE I—ARMY 
i 
Real property. 
SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION 
PROJECTS 
(a) INSIDE THE UNITED STATES.—The Secretary of the Army may 
acquire real property and may carry out military construction 
projects in the amounts shown for each of the following installations 
and locations inside the United States: 
..«>., 
UNITED STATES ARMY FORCES COMMAND 
Camp Dawson, West Virginia, $8,700,000. 
. 
Fort Bragg, North Carolina, $22,250,000. 
Fort Campbell, Kentucky, $4,740,000. 
, 
- 
- < 
- < 
Fort Carson, Colorado, $11,300,000. 
Fort Devens, Massachusetts, $20,800,000. 
Fort Drum, New York, $615,000,000. 
Fort Hood, Texas, $13,350,000. 
Fort Irwin, California, $820,000. 
Fort Lewis, Washington, $21,580,000. 
Fort McPherson, Georgia, $2,900,000. 
Fort Ord, California, $6,550,000. 
Fort Polk, Louisiana, $26,000,000. 
Fort Riley, Kansas, $8,250,000. 
' " .-,. 
Fort Sam Houston, Texas, $800,000. 
Fort Sheridan, Illinois, $2,050,000. 
Fort Stewart, Georgia, $1,550,000. 
', . . 
Fort Wainwright, Alaska, $72,300,000. 
UNITED STATES ARMY WESTERN COMMAND 
Wheeler Army Air Field, Hawaii, $2,900,000. 
UNITED STATES ARMY TRAINING AND DOCTRINE COMMAND 
Carlisle Barracks, Pennsylvania, $800,000. 
Fort Benning, Georgia, $12,180,000. 
Fort Eustis, Virginia, $2,050,000. 
Fort Jackson, South Carolina, $10,400,000. 
Fort Leavenworth, Kansas, $1,100,000. 
Fort Lee, Virginia, $17,600,000. 
Fort Leonard Wood, Missouri, $42,200,000. 
Fort McClellan, Alabama, $540,000. 
, 
Fort Rucker, Alabama, $44,500,000. 
Fort Story, Virginia, $2,700,000. 
UNITED STATES ARMY MATERIEL COMMAND 
Aberdeen Proving Ground, Maryland, $40,750,000. 
,, Badger Army Ammunition Plant, Wisconsin, $980,000. 
Corpus Christi Army Depot, Texas, $10,650,000. 
Detroit Arsenal, Michigan, $1,350,000. 
Dugway Proving Ground, Utah, $9,700,000. 
Fort Monmouth, New Jersey, $4,900,000. 
Harry Diamond Laboratory, Maryland, $680,000. 
Savanna Army Depot, Illinois, $320,000. 
Yuma Proving Ground, Arizona, $820,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4015 
UNITED STATES ARMY INFORMATION SYSTEMS COMMAND 
Fort Huachuca, Arizona, $17,200,000. 
UNITED STATES MILITARY ACADEMY 
U.S. Military Academy, New York, $24,500,000. 
MILITARY TRAFFIC MANAGEMENT COMMAND 
Sunny Point Military Ocean Terminal, North Carolina, $650,000. 
ASSISTANT CHIEF OF ENGINEERS 
Classified, United States, $7,100,000. 
(b) OUTSIDE THE UNITED STATES.—The Secretary of the Army may 
acquire real property and may carry out military construction 
projects in the amounts shown for each of the following installations 
and locations outside the United States: 
UNITED STATES ARMY, JAPAN 
Kawakami, Japan, $1,200,000. 
EIGHTH UNITED STATES ARMY 
Camp Carroll, Korea, $1,740,000. 
Camp Casey, Korea, $24,940,000. 
Camp Castle, Korea, $4,800,000. 
Camp Essayons, Korea, $3,000,000. 
Camp Greaves, Korea, $3,650,000. 
Camp Hovey, Korea, $9,000,000. 
^ 
' • 
Camp Howze, Korea, $5,850,000. 
Camp Humphreys, Korea, $16,100,000. 
Camp Jackson, Korea, $1,800,000. 
Camp Laguardia, Korea, $2,970,000. 
Camp Libby, Korea, $1,100,000. 
Camp Liberty Bell, Korea, $780,000. 
Camp Long, Korea, $5,600,000. 
Camp Market, Korea, $540,000. 
Camp Nimble, Korea, $1,950,000. 
Camp Page, Korea, $1,400,000. 
Camp Pelham, Korea, $2,280,000. 
Camp Red Cloud, Korea, $4,550,000. 
Camp Stanley, Korea, $4,700,000. 
H220, Korea, $2,750,000. 
K-16 Army Airfield, Korea, $2,520,000. 
Pusan, Korea, $12,940,000. 
Second Infantry, Korea, $5,150,000. 
Taegu, Korea, $4,900,000. 
Yongsan, Korea, $8,760,000. 
UNITED STATES ARMY STRATEGIC DEFENSE COMMAND 
Kwajalein, $20,600,000. 
UNITED STATES ARMY FORCES COMMAND, OVERSEAS 
Classified, $4,000,000. 
Palmerola Air Base, Honduras, $4,300,000. 
100 STAT. 4016 
PUBLIC LAW 99-661—NOV. 14, 1986 
UNITED STATES ARMY EUROPE AND SEVENTH ARMY 
Ansbach, Germany, $1,790,000. 
Aschaffenburg, Germany, $7,000,000. 
Bad Kreuznach, Germany, $900,000. 
" 
Baumholder, Germany, $18,450,000. y 
, 
; . 
Bitburg, Germany, $19,920,000. 
Fulda, Germany, $1,000,000. 
Giessen, Germany, $6,570,000. 
Goeppingen, Germany, $1,850,000. 
• 
•'' 
Hanau, Germany, $26,150,000. 
Heidelberg, Germany, $1,600,000. 
Heilbronn, Germany, $2,100,000. 
Hohenfels, Germany, $8,800,000. 
Kaiserslautern, Germany, $1,400,000. 
' 
. 
, ,.,-
Karlsruhe, Germany, $10,000,000. 
., >'. 
-.-.'J 
Mannheim, Germany, $2,450,000. 
- 
; , 
Neu Ulm, Germany, $26,050,000. 
Nuernberg, Germany, $5,500,000. 
Rheinberg, Germany, $17,150,000. 
Schweinfurt, Germany, $23,000,000. 
Stuttgart, Germany, $820,000. 
. 
, 
Various, Germany, $6,350,000. 
Vilseck, Germany, $49,570,000. 
Wuerzburg, Germany, $1,000,000. 
Katsimidhi Site, Greece, $560,000. 
, 
' 
Zelo, Italy, $610,000. 
UNITED STATES ARMY INTELUGENCE AND SECURITY COMMAND, 
OVERSEAS 
Location 177, $1,950,000. 
"; 
* 
. 
Location 276, $3,700,000. 
Location 280, $2,100,000. 
SEC. 2102. FAMILY HOUSING 
The Secretary of the Army may construct or acquire family 
housing units (including land acquisition) at the following installa-
tions in the number of units shown, and in the amount shown, for 
each installation: 
Fort Irwin, California, thirty-eight manufactured 
home 
spaces, $730,000. 
Fort Ord, California, three hundred and eighty-five units, 
$34,000,000. 
Crailsheim, Germany, forty units, $4,100,000. 
J 
Darmstadt, Germany, forty units, $3,150,000. 
Erlangen, Germany, one hundred and six units, $9,400,000. 
Herzo Base, Germany, thirty-four units, $3,300,000. 
Schweinfurt, Germany, ninety units, $8,400,000. 
Vilseck, Germany, two hundred and twenty-four units, 
$21,000,000. 
Wildflecken, Germany, twenty-four units, $2,050,000. 
Various Locations, Germany, one hundred and twenty units, 
funded in the manner authorized in section 2103(a). 
Fort 
Polk, 
Louisiana, 
five 
hundred 
and 
eighty-three 
units, $37,000,000. 
-.- - - - 
- 
* 
-^^"^^ * 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4017 
Kwajalein, Marshall Islands, one hundred and thirty-six units, 
$23,000,000. 
Aberdeen Proving Ground, Maryland, one hundred and forty 
units and seventy manufactured home spaces, $10,800,000. 
Fort Drum, New York, one thousand and two hundred units, 
; 
$91,000,000. 
Seneca Army Depot, New York, thirty units, $2,900,000. 
• ^
^ 
SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS 
(a) AMOUNT AUTHORIZED.—Subject to section 2825 of title 10, 
United States Code, the Secretary of the Army may make expendi-
tures, using amounts appropriated pursuant to section 2106(a)(7)(A), 
to improve existing military family housing units in an amount not 
to exceed $79,500,000, of which not more than $11,900,000 may be 
used to convert portions of existing facilities at various locations in 
Germany to military family housing units, and may make additional 
expenditures not to exceed $15,671,000 for energy conservation 
projects using amounts appropriated pursuant to section 2106(b). 
(b) WAIVER OF MAXIMUM PER UNIT COST FOR CERTAIN IMPROVE-
MENT PROJECTS.—Notwithstanding the maximum amount per unit 
for an improvement project under section 2825(b) of title 10, United 
States Code, the Secretary of the Army may carry out projects to 
improve existing military family housing units at the following 
installations in the number of units shown, and in the amount 
shown, for each installation: 
Aschaffenburg, Germany, one hundred and forty-four units, 
$5,120,000. 
Aschaffenburg, Germany, forty-eight units, $2,800,000. 
Bremerhaven, Germany, twenty-four units, $1,400,000. 
Karlsruhe, Germany, twenty-four units, $1,400,000. 
Kitzingen, Germany, one hundred and two units, $5,950,000. 
Mainz, Germany, one unit, $69,000. 
- 
Worms, Germany, six units, $350,000. 
Fort Benjamin Harrison, Indiana, one hundred and sixty-six 
units, $6,000,000. 
Pusan, Korea, forty-eight units, $2,237,000. 
Yongsan, Korea, one unit, $70,000. 
> ~
? Fort Indiantown Gap, Pennsylvania, six units, $166,000. 
Fort Sam Houston, Texas, twenty-three units, $930,000. 
! 
Fort Myer, Virginia, three units, $140,000. 
(c) WAIVER OF SPACE LIMITATION FOR GENERAL OFFICER'S QUAR-
TERS AT YONGSAN, KOREA.—(1) Notwithstanding the maximum 
space limitations under section 2826(a) of title 10, United States 
Code, the Secretary of the Army may carry out an improvement 
project to increase the net floor area of the housing unit for one 
general officer at the United States Army Garrison, Yongsan, 
Korea, to not more than 3,574 square feet. 
(2) For purposes of this subsection, the term "net floor area" has 
the same meaning given that term by section 2826(f) of title 10, 
United States Code. 
SEC. 2104. FORT DRUM, NEW YORK 
(a) AUTHORIZATION.—The Secretary of the Army may, in advance Contracts. 
of the availability of appropriations authorized to be appropriated 
by section 2106(c), enter into one or more contracts for the military 
construction projects authorized by section 2101 at Fort Drum, New 
York, if each such contract limits the amount of payments that the 
100 STAT. 4018 
PUBLIC LAW 99-661—NOV. 14, 1986 
Federal government is obligated to make under such contract to the 
amount of appropriations available, at the time the contract is 
entered into, for obligation under such a contract. Such construction 
may be accomplished by using one-step turn-key selection proce-
dures or other competitive contracting methods, 
(b) FAMILY HOUSING.—(1) Of the family housing units authorized 
99 Stat. 965. 
by section 102 of the Military Construction Authorization Act, 1986, 
to be constructed at Fort Drum, New York— 
(A) three of those units shall be constructed for assignment to 
general officers, and notwithstanding section 2826 of title 10, 
United States Code, each such unit may be constructed with a 
maximum net floor area of 3,000 square feet; and 
(B) seven of those units shall be constructed for assignment to 
colonels who hold positions as commanders, and notwithstand-
ing section 2826 of title 10, United States Code, each such unit 
may be constructed with a maximum net floor area of 2,100 
square feet. 
(2) For purposes of this subsection, the term "net floor area" has 
the meaning given that term by section 2826(f) of title 10, United 
States Code. 
SEC. 2105. COMMUNITY PLANNING ASSISTANCE 
The Secretary of the Army may use not more than $400,000 from 
funds appropriated to the Department of the Army for fiscal year 
1987 for planning and design purposes to provide planning assist-
ance to local communities located near the newly established light 
infantry divisions at Fort Drum, New York, and Fort Wainwright, 
Alaska, if the Secretary determines that the financial resources 
available to the communities (by grant or otherwise) are inadequate. 
SEC. 2106. AUTHORIZATION OF APPROPRIATIONS, ARMY 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal years beginning after September 30, 1986, for military 
construction, land acquisition, and military family housing func-
tions of the Department of the Army in the total amount of 
$2,870,396,000 as follows: 
(1) For military construction projects inside the United States 
authorized by section 2101(a), $660,510,000. 
(2) For military construction projects outside the United 
States authorized by section 2101(b), $402,210,000. 
(3) For the construction of the Eastern Distribution Center, 
New Cumberland Army Depot, Pennsylvania, as authorized by 
section 101 of the Military Construction Authorization Act, 
99 Stat. 961. 
1986, $43,000,000. 
(4) For Pershing II security upgrade at various locations, 
Germany, as authorized by section 101 of the Military Construc-
tion Authorization Act, 1986, $7,000,000. 
(5) For unspecified minor construction projects under section 
2805 of title 10, United States Code, $20,000,000. 
(6) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
$130,580,000. 
(7) For military family housing functions— 
(A) for construction and acquisition of military family 
housing and facilities, $354,330,000; 
f L 
i
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u>f 
A;^• 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4019 
(B) for support of military family housing (including the 
functions described in section 2833 of title 10, United States 
Code), $1,247,266,000 of which— 
(i) not more than $31,246,000 may be obligated or 
* 
expended for the leasing of military family housing 
units in the United States, the Commonwealth of 
Puerto Rico, and Guam; and 
(ii) not more than $142,639,000 may be obligated or 
expended for the leasing of military family housing 
:' 
, i 
units in foreign countries; and 
(C) for 
the 
Homeowners 
Assistance 
Program 
as 
t 
' 
authorized by section 2832 of title 10, United States Code, 
$5,500,000. 
OJ) AUTHORIZATION OF UNOBLIGATED FUNDS.—Funds appropriated 
to the Department of Defense for fiscal years before fiscal year 1987 
which could be used for energy conservation projects for existing 
military family housing units of the Department of the Army that 
remain available for obligation are hereby authorized to be made 
available, to the extent provided in appropriation Acts, for energy 
conservation projects for military family housing of the Army in an 
amount not to exceed $15,671,000. 
(c) ADVANCE AUTHORIZATION OF APPROPRIATIONS FOR FORT DRUM, 
NEW YORK.—Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 1986, for the military 
construction projects and land acquisition authorized at Fort Drum, 
New York, by sections 2101(a) and 2104 as follows: 
(1) $221,000,000 in fiscal year 1988. 
(2) $214,000,000 in fiscal year 1989. 
(d) 
LIMITATION 
ON TOTAL COST OF CONSTRUCTION 
PROJECTS 
AUTHORIZED IN THIS TITLE.—Notwithstanding the cost variations 
authorized by section 2853 of title 10, United States Code, and any 
other cost variations authorized by law, the total cost of all projects 
carried out under section 2101 may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of subsec-
tion (a) and under subsection (c). 
SEC. 2107. EXTENSION OF CERTAIN PRIOR YEAR AUTHORIZATIONS 
(a) EXTENSION OF AUTHORIZATION OF CERTAIN FISCAL YEAR 1984 
PROJECTS.—Notwithstanding the provisions of section 607(a) of the 
Military Construction Authorization Act, 1984 (Public Law 98-115, 
97 Stat. 780), authorizations for the following projects authorized in 
section 101 of that Act, as extended by section 606(b) of the Military 
Construction Authorization Act, 1986 (Public Law 99-167, 99 Stat. 
983) shall remain in effect until October 1, 1987, or the date of 
enactment of the Military Construction Authorization Act for fiscal 
year 1988, whichever is later: 
(1) Unaccompanied personnel housing in the amount oi 
$1,400,000 at Argyroupolis, Greece, 
(2) Operations building in the amount of $370,000 at 
Argyroupolis, Greece. 
(3) Multipurpose recreation facility in the amount of $480,000 
at Argyroupolis, Greece. 
(4) Unaccompanied officer housing in the amount of $600,000 
at Perivolaki, Greece. 
(5) Operations building in the amount of $410,000 at 
Perivolaki, Greece. 
100 STAT. 4020 
PUBLIC LAW 99-661—NOV. 14, 1986 
? 
(6) Multipurpose recreation facility in the amount of $620,000 
'* at Perivolaki, Greece. 
(7) Physical fitness training center in the amount of 
$1,000,000 at Elefsis, Greece. 
(b) EXTENSION OF AUTHORIZATION OF CERTAIN FISCAL YEAR 
1985 
PROJECTS.—Notwithstanding the provisions of section 607(a) of the 
Military Construction Authorization Act, 1985 (Public Law 98-407, 
98 Stat. 1515), authorizations for the following projects authorized in 
98 Stat. 1495. 
section 101 of that Act shall remain in effect until October 1, 1987, 
or the date of enactment of the Military Construction Authorization 
Act for fiscal year 1988, whichever is later: 
(1) Barracks with dining facility in the amount of $11,400,000 
at Presidio of San Francisco, California. 
(2) Child care center in the amount of $1,980,000 at Presidio of 
San Francisco, California. 
(3) Barracks in the amount of $6,600,000 at Presidio of San 
Francisco, California. 
(4) Multipurpose recreation facility in the amount of 
$1,150,000 at Koropi, Greece. 
(5) Multipurpose recreation facility in the amount of $960,000 
at Katsimidi, Greece. 
(6) Barracks modernization in the amount of $660,000 at 
Argyroupolis, Greece. 
(7) Barracks modernization in the amount of $660,000 at 
Perivolaki, Greece. 
(8) Barracks with dining facility in the amount of $2,350,000 
at Elefsis, Greece. 
(9) Dining facility modernization in the amount of $860,000, 
adjusted to $1,340,000 by cost variation approval, at Fort Jack-
son, South Carolina. 
7x 
TITLE II—NAVY 
SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION 
PROJECTS 
(a) INSIDE THE UNITED STATES.—The Secretary of the Navy may 
acquire real property and may carry out military construction 
projects in the amounts shown for each of the following installations 
and locations inside the United States: 
UNITED STATES MARINE CORPS 
Headquarters Marine Corps, Arlington, Virginia, $3,020,000. 
Marine Corps Air Station, Beaufort, South Carolina, $4,990,000. 
Camp H. M. Smith, Oahu, Hawaii, $2,070,000. 
Marine Corps Base, Camp Lejeune, North Carolina, $31,310,000 
Marine 
Corps 
Air 
Station, 
Camp 
Pendleton, 
California, 
$10,410,000. 
Marine Corps Base, Camp Pendleton, California, $28,990,000. 
Marine Corps Air Station, Cherry Point, North 
Carolina, 
$13,450,000. 
Marine Corps Air Station, El Toro, California, $27,850,000. 
Marine Corps Air Station, Kaneohe Bay, Hawaii, $30,700,000. 
Marine 
Corps 
Air 
Station, 
New 
River, 
North 
Carolina, 
$21,710,000. 
Marine Corps Recruit Depot, Parris Island, South Carolina, 
$7,250,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4021 
Marine Corps Air Station, Tustin, California, $14,910,000. 
Marine Corps Air-Ground Combat Center, Twentynine Palms, 
California, $32,630,000. 
Marine Corps Air Station, Yuma, Arizona, $8,860,000. 
SPACE AND NAVAL WARFARE SYSTEMS COMMAND 
Naval Electronic Systems Engineering Center, Portsmouth, Vir-
ginia, $1,870,000. 
CHIEF OF NAVAL OPERATIONS 
Naval Academy, Annapolis, Maryland, $2,660,000. 
Navy Tactical Interoperability Support Activity, Long Beach, 
California, $510,000. 
Naval Legal Service Office, Norfolk, Virginia, $1,080,000. 
Naval Legal Service Office Detachment, Oceana, Virginia, 
$540,000. 
Commandant Naval District, Washington, District of Columbia, 
$2,000,000. 
COMMANDER IN CHIEF, ATLANTIC FLEET 
Naval Air Station, Brunswick, Maine, $1,160,000. 
Naval Air Station, Cecil Field, Florida, $8,640,000. 
Naval Station, Charleston, South Carolina, $1,400,000. 
Naval Ocean Processing Facility, Dam Neck, Virginia, $540,000. 
Naval Air Station, Jacksonville, Florida, $4,810,000. 
Naval Air Station, Key West, Florida, $1,650,000. 
Naval Amphibious Base, Little Creek, Virginia, $6,970,000. 
Naval Station, Mayport, Florida, $880,000. 
Naval Supply Center Detachment, Mayport, Florida, $3,730,000. 
Naval Submarine Base, New London, Connecticut, $4,630,000. 
Naval Station, New York, New York, $52,950,000. 
Fleet Intelligence Center Europe and Atlantic, Norfolk, Virginia, 
$1,880,000. 
Naval Air Station, Norfolk, Virginia, $1,570,000. 
COMMANDER IN CHIEF, PACIFIC FLEET 
Naval Air Station, Adak, Alaska, $24,900,000. 
Naval Facility, Adak, Alaska, $5,700,000. 
Naval Air Station, Alameda, California, $18,625,000. 
Naval Submarine Base, Bangor, Washington, $7,180,000. 
Trident Refit Facility, Bangor, Washington, $1,570,000. 
Naval Facility, Centerville Beach, California, $1,370,000. 
Naval Amphibious Base, Coronado, California, $17,450,000. 
Naval Station, Everett, Washington, $43,580,000. 
Naval Air Station, Fallon, Nevada, $31,200,000. 
Naval Air Station, Lemoore, California, $980,000. 
Naval Station, Long Beach, California, $7,260,000. 
Naval Magazine, Lualualei, Hawaii, $4,350,000. 
Naval Air Station, Miramar, California, $40,400,000. 
Naval Station, Pearl Harbor, Hawaii, $3,240,000. 
Naval Submarine Base, Pearl Harbor, Hawaii, $690,000. 
Naval Station, San Diego, California, $19,460,000. 
Naval Submarine Base, San Diego, California, $9,400,000. 
Naval Station, Seattle, Washington, $2,950,000. 
Naval Air Station, Whidbey Island, Washington, $5,180,000. 
100 STAT. 4022 
PUBLIC LAW 99-661—NOV. 14, 1986 
CHIEF OF NAVAL EDUCATION AND TRAINING 
Naval Air Station, Corpus Christi, Texas, $690,000. 
Naval Guided Missile School, Dam Neck, Virginia, $3,140,000. 
Naval Training Center, Great Lakes, Illinois, $5,300,000. 
Naval Construction 
Training Center, Gulfport, 
Mississippi, 
$1,180,000. 
Naval Air Station, Kingsville, Texas, $3,780,000. 
Combat Systems Technical Schools Command, Mare Island, 
California, $5,200,000. 
Naval Air Station, Memphis, Tennessee, $15,810,000. 
Naval Air Station, Meridian, Mississippi, $4,410,000. 
Naval Submarine School, New London, Connecticut, $9,540,000 
Naval Education and Training Center, Newport, Rhode Island, 
$11,700,000. 
Surface Warfare Officers School Command, Newport, Rhode 
Island, $8,840,000. 
Fleet Training Center, Norfolk, Virginia, $5,400,000. 
Naval Training Center, Orlando, Florida, $9,670,000. 
Naval Diving and Salvage Training Center, Panama City, Florida, 
$2,850,000. 
Naval Technical Training Center, Pensacola, Florida, $7,360,000. 
Fleet Intelligence Training Center, Pacific, San Diego, California, 
$4,220,000. 
Fleet Training Center, San Diego, California, $3,930,000. 
Naval Training Center, San Diego, California, $18,170,000. 
NAVAL MEDICAL COMMAND 
Naval Hospital, Camp Lejeune, North Carolina, $1,670,000. 
Naval Hospital, Pensacola, Florida, $690,000. 
NAVAL OCEANOGRAPHY COMMAND 
Naval Observatory, Washington, District of Columbia, $980,000. 
NAVAL SECURITY GROUP COMMAND 
Naval Security Group Activity, Adak, Alaska, $14,600,000. 
NAVAL SUPPLY SYSTEMS COMMAND 
Naval Supply Center, Bremerton, Washington, $500,000. 
Naval Supply Center, Jacksonville, Florida, $830,000. 
Navy Ships Parts Control Center, Mechanicsburg, Pennsylvania, 
$1,670,000. 
Naval Supply Center, Norfolk, Virginia, $3,140,000. 
Naval Supply Center, Oakland, California, $3,490,000. 
Naval Supply Center, San Diego, California, $1,370,000. 
NAVAL AIR SYSTEMS COMMAND 
Pacific Missile Range Facility, Barking Sands, Kauai, Hawaii, 
$8,260,000. 
Naval Air Rework Facility, Cherry Point, North Carolina, 
$37 200 000. 
Naval Air Test Center, Patuxent River, Maryland, $21,140,000 
Naval Air Rework Facility, Pensacola, Florida, $8,050,000. 
Pacific Missile Test Center, Point Mugu, California, $590,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4023 
NAVAL FACILITIES ENGINEERING COMMAND 
Naval Construction Battalion Center, Gulfport, 
Mississippi, 
$17,650,000. 
Navy Public Works Center, Norfolk, Virginia, $8,740,000. 
Navy Public Works Center, Pearl Harbor, Hawaii, $7,490,000. 
Navy Public Works Center, Pensacola, Florida, $2,120,000. 
Naval Construction Battalion Center, Port Hueneme, California, 
$3,980,000. 
Navy Public Works Center, San Francisco, California, $450,000. 
-I-
NAVAL SEA SYSTEMS COMMAND 
Charleston 
Naval 
Shipyard, 
Charleston, 
South 
Carolina, 
$10,810,000. 
Naval Weapons Station, Charleston, South Carolina, $22,630,000. 
Naval Weapons Station, Concord, California, $790,000. 
Naval Weapons Support Center, Crane, Indiana, $6,880,000, 
Naval Weapons Station, Earle, New Jersey, $34,760,000. 
Naval Ordnance Station, Indian Head, Maryland, $500,000. 
Long Beach Naval Shipyard, Long Beach, California, $3,630,000. 
Norfolk Naval Shipyard, Portsmouth, Virginia, $5,900,000. 
Naval Sea Combat Systems Engineering Station, Norfolk, Vir-
ginia, $980,000. 
Supervisor of Shipbuilding, Pascagoula, Mississippi, $4,120,000. 
Naval Ship System Engineering Station, Philadelphia, Pennsylva-
nia, $400,000. 
Portsmouth Naval Shipyard, Kittery, Maine, $23,170,000. 
Naval Weapons Station, Yorktown, Virginia, $4,220,000. 
•J' 
OFFICE OF THE CHIEF OF NAVAL RESEARCH 
Naval Weapons Center, China Lake, California, $1,370,000. 
Naval Surface Weapons Center, Dahlgren, Virginia, $15,960,000. 
Naval Coastal Systems Center, Panama City, Florida, $880,000. 
Naval 
Research 
Laboratory 
Annex, 
Quantico, 
Virginia, 
$1,500,000. 
STRATEGIC SYSTEMS PROJECT OFFICE 
'"• ''- < 
Naval Submarine Base, Kings Bay, Georgia, $122,390,000. 
0)) OUTSIDE THE UNITED STATES.—The Secretary of the Navy may 
acquire real property and may carry out military construction 
projects in the amounts shown for each of the following installations 
and locations outside the United States: 
MARINE CORPS 
Marine Corps Air Station, Futenma, Okinawa, Japan, $4,270,000. 
Marine Corps Base, Camp Smedley D. Butler, Okinawa, Japan, 
$8,950,000. 
-*<>'-' 
' 
COMMANDER IN CHIEF, ATLANTIC F L E E T 
; 
Naval Station, Guantanamo Bay, Cuba, $2,600,000. 
Naval Air Station, Keflavik, Iceland, $13,840,000. 
f. 
Naval Facility, Keflavik, Iceland, $1,570,000. 
Atlantic Fleet Weapons Training Facility, Roosevelt Roads, 
Puerto Rico, $4,220,000. 
Naval Station, Roosevelt Roads, Puerto Rico, $7,080,000. 
i 
100 STAT. 4024 
PUBLIC LAW 99-661—NOV. 14, 1986 
COMMANDER IN CHIEF, PACIFIC FLEET 
Administrative Support Unit, Bahrain Island, $2,550,000. 
Mobile 
Construction 
Battalion, 
Camp 
Covington, 
Guam, 
$15,500,000. 
, 
^. 
Naval Facility, Guam, $820,000. 
Naval Supply Depot, Guam, $400,000. 
Naval Station, Subic Bay, Republic of the Philippines, $1,710,000. 
Naval Supply Depot, Subic Bay, Republic of the Philippines, 
$290,000. 
Naval Ship Repair Facility, Subic Bay, Republic of the Phil-
ippines, $1,770,000. 
COMMANDER IN CHIEF, UNITED STATES NAVAL FORCES EUROPE 
Naval Activities, London, United Kingdom, $1,180,000. 
Naval Support Activity, Naples, Italy, $1,570,000. 
Naval Station, Rota, Spain, $4,600,000. 
Classified Locations, $15,700,000. 
' 
1 
out 
• -1 
NAVAL TELECOMMUNICATIONS COMMAND 
Naval Communications Area Master Station, Western Pacific, 
Guam, $480,000. 
Naval Communications Station, Harold E. Holt, Exmouth, Aus-
tralia, $2,180,000. 
Naval Communications Area Master Station, Mediterranean, 
Naples, Italy, $8,250,000. 
Naval Communication Station, San Miguel, Republic of the Phil-
ippines, $470,000. 
Naval 
Communication 
Station, 
Thurso, 
United 
Kingdom, 
$350,000. 
NAVAL SECURITY GROUP COMMAND 
' 4 ' 
' 
"
^ 
Naval Security Group Activity, Edzell, Scotland, $2,250,000. 
Naval Security Group Detachment, Guam, $2,150,000. 
Naval Security Group Activity, Sabana Seca, Puerto Rico, 
$790,000. 
NAVAL FACILITIES ENGINEERING COMMAND 
Navy Public Works Center, Guam, $1,570,000. 
OFFICE OF THE CHIEF OF NAVAL RESEARCH 
' 
' 
Naval Underwater Systems Center, Andros Island, Bahamas, 
$3,730,000. 
..^^ 
^...^., 
SEC. 2202. FAMILY HOUSING 
The Secretary of the Navy may construct or acquire family hous-
ing units (including land acquisition) at the following installations 
in the number of units shown, and in the amount shown, for each 
installation: 
Naval Station, Long Beach, California, three hundred units, 
$22,900,000. 
Naval Air Station, Moffett Field, California, one hundred and 
,tib6 twenty-six units, $11,600,000. 
Navy Public Works Center, San Francisco, California, three 
hundred units, $26,450,000. 
>'c i ;; 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4025 
16 
Marine Corps Air Station, El Toro, California, $2,300,000, as 
authorized in section 2734. 
y 
Marine Corps Air-Ground Combat Center, Twentynine Palms, 
California, three hundred and ninety-two units and seventy-five 
mobile home spaces, $35,300,000. 
>
^ 
Marine Corps Base, Camp Pendleton, California, one hundred 
5' 
mobile home spaces, $1,800,000. 
^'' 
Marine Corps Base, Camp Lejeune, North Carolina, seventy-
five mobile home spaces, $930,000. 
Marine 
Corps Development 
and 
Education 
Command, 
*
*
- 
Quantico, Virginia, fifty mobile home spaces, $790,000. 
Naval Station, Keflavik, Iceland, two hundred and fifty units, 
$48,642,000. 
SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS 
(a) AMOUNT AUTHORIZED.—Subject to section 2825 of title 10, 
United States Code, the Secretary of the Navy may make expendi-
tures, using amounts appropriated pursuant to section 2208(aX7XA), 
to improve existing military family housing units in an amount not 
to exceed $26,580,000. 
(b) WAIVER OF MAXIMUM PER UNIT COST FOR CERTAIN IMPROVE-
MENT PROJECTS.—Notwithstanding the maximum amount per unit 
for an improvement project under section 28250t)) of title 10, United 
States Code, the Secretary of the Navy may carry out projects to 
improve existing military family housing units at the following 
installations in the number of units shown, and in the amount 
shown, for each installation: 
, 
Naval Station, Mare Island, Vallejo, California, one hundred 
units, $5,200,000. 
Marine Corps Logistics Base, Albany, Georgia, one unit, 
^ 
$33,300. 
Navy Public Works Center, Great Lakes, Illinois, two hun-
dred and ten units, $9,400,000. 
Naval Air Station, Brunswick, Maine, forty-four 
units, 
:. 
$1,274,600. 
Naval Construction Battalion Center, Gulfport, Mississippi, 
one unit, $28,700. 
{ 
Naval 
Air 
Station, 
Fallon, 
Nevada, 
forty-four 
units, 
J- 
$1,868,500. 
V 
Naval Station, New York, New York, one hundred and 
4 
twenty units, $9,600,000. 
Naval Air Development Center, Warminster, Pennsylvania, 
six units, $256,800. 
Naval Education and Training Center, Newport, Rhode 
b 
Island, one hundred and eighty-six units, $10,200,000. 
{ 
Navy Public Works Center, Guam, one unit, $64,700. 
Navy Public Works Center, Guam, one hundred and nine 
I 
units, $10,360,000. 
Naval Air Station, Agana, Guam, one hundred units, 
e 
$9,517,000. 
Naval Air Station, Agana, Guam, one unit, $58,600. 
SEC. 2204. ACQUISITION OF EXISTING HOUSING UNITS ON GUAM 
The Secretary of the Navy may acquire, without reimbursement, 
89 existing family housing units constructed and used by the Fed-
eral Aviation Administration on land in Finegayan, Guam, held by 
M^ ie ^ *' 
100 STAT. 4026 
PUBLIC LAW 99-661—NOV. 14, 1986 
the Secretary of the Navy under the provisions of section 1158 of 
title 49, United States Code. 
SEC. 2205. INCREASE IN TITLE TOTAL AMOUNT FOR MILITARY CONSTRUC-
TION PROJECT AT KINGS BAY, GEORGIA 
Section 602(c) of the Military Construction Authorization Act, 
1986 (Public Law 99-167; 99 Stat. 981), is amended by striking "may 
not exceed the total amount authorized" and all that follows and 
inserting the following: 
"may not exceed— 
"(1) the total amount authorized to be appropriated under 
paragraphs (1) and (2) of subsection (a); 
"(2) the amount specified in subsection (b); and 
"(3) $85,600,000 (the balance of the amount authorized under 
section 201(a) for military construction projects at Kings Bay, 
Georgia).". 
^
^ ,a. 
SEC. 2206. CERTAIN ENLISTED QUARTERS, GUAM 
Section 201(b) of the Military Construction Authorization Act, 
1986 (Public Law 99-167; 99 Stat. 970), is amended— 
(1) by striking out "Naval Magazine, Guam, $11,270,000." and 
inserting in lieu thereof "Naval Magazine, Guam, $6,570,000."; 
and 
(2) by striking out "Naval Station, Guam, $10,200,000." and 
inserting in lieu thereof "Naval Station, Guam, $14,900,000.". 
SEC. 2207. LIMITATION ON USE OF FUNDS FOR CERTAIN HOMEPORTING 
(a) IN GENERAL.—Funds appropriated pursuant to an authoriza-
tion in section 2208 for Naval Station, Everett, Washington, may not 
be obligated or expended for such purpose until— 
(1) all Federal, State, and local permits required for the 
dredging activities to be carried out with respect to homeporting 
"«^ at Everett, Washington, have been issued; and 
(2) the State of Washington has appropriated, in fiscal year 
'3^» 1987, its share of funds for fiscal years 1988 and 1989 for all 
projects agreed with by the Department of the Navy for home-
• porting at Everett, Washington. 
0)) LIMITATION ON AMOUNT OF FUNDS THAT MAY BE EXPENDED 
THROUGH FISCAL YEAR 1991.—Not more than a total of $272,000,000, 
including $16,000,000 for defense access roads, may be obligated or 
expended by the Department of Defense and the Department of the 
Navy during fiscal years 1986 through 1991 for construction associ-
ated with strategic homeporting at Everett, Washington. 
SEC. 2208. AUTHORIZATION OF APPROPRIATIONS, NAVY 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal years beginning after September 30, 1986, for military 
construction, land acquisition, and military family housing func-
tions of the Department of the Navy in the total amount of 
$2,147,438,000 as follows: 
(1) For military construction projects inside the United States 
authorized by section 2201(a), $1,109,795,000. 
(2) For military construction projects outside the United 
States authorized by section 2201(b), $110,840,000. 
(3) For military construction projects at Kings Bay, Georgia, 
authorized by section 201(a) of the Military Construction 
99 Stat. 966. 
f^ -
i Authorization Act, 1986, $45,450,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4027 
s 
(4) For unspecified minor construction projects under section 
2805 of title 10, United States Code, $15,000,000. 
ar 
(5) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
Ir 
$143,770,000. 
,b, 
(6) For advances to the Secretary of Transportation for 
construction of defense access roads under section 210 of title 
its. 23, United States Code, $5,400,000. 
,0^. 
(7) For military family housing functions— 
(A) for construction and acquisition of military family 
isvoM 
housing and facilities, $159,292,000; and 
(B) for support of military housing (including functions 
IsvsH 
described in section 2833 of title 10, United States Code), 
$557,891,000, of which— 
jf: 
(i) not more than $5,214,100 may be obligated or 
*
^
. 
expended for the leasing of military family housing in 
lo Ji.„ 
th® United States, the Commonwealth of Puerto Rico, 
and Guam; and 
9d3 loi }: 
^
^
^
^ ^®^ more than $17,244,900 may be obligated or 
expended for the leasing of military family housing 
units in foreign countries, 
(b) 
LIMITATION 
ON TOTAL COST OF CONSTRUCTION 
PROJECTS 
AUTHORIZED IN THIS TITLE.—Notwithstanding the cost variations 
authorized by section 2853 of title 10, United States Code, and any 
other cost variation authorized by law, the total cost of all projects 
carried out under section 2201 of this Act may not exceed the total 
amount authorized to be appropriated under paragraphs (1) and (2) 
of subsection (a) and $20,000,000 (the balance of the amount 
authorized under section 2202(a) for the construction of an ammuni-
tion pier and trestle at the Naval Weapons Station, Earle, New 
Jersey). 
SEC. 2209. EXTENSION OF CERTAIN PRIOR YEAR AUTHORIZATIONS 
(a) EXTENSION OF AUTHORIZATION OF CERTAIN FISCAL YEAR 1984 
PROJECTS.—Notwithstanding the provisions of section 607(a) of the 
Military Construction Authorization Act, 1984 (Public Law 98-115, 
97 Stat. 780), authorizations for the following projects authorized in 
section 201 of that Act, as extended by section 606(b) of the Military 
Construction Authorization Act, 1986 (Public Law 99-167, 99 Stat. 
983) shall remain in effect until October 1, 1987, or the date of 
enactment of the Military Construction Authorization Act for fiscal 
year 1988, whichever is later: 
(1) Land acquisition in the amount of $830,000 at the Naval 
Weapons Station, CJoncord, California. 
^- 
(2) Unaccompanied enlisted personnel housing in the amount 
ijf 
of $10,000,000 at the Naval Air Station, Jacksonville, Florida. 
(3) Electrical distribution lines in the amount of $7,200,000 at 
the Mare Island Naval Shipyard, Vallejo, California. 
(b) EXTENSION OF AUTHORIZATION OF CERTAIN FISCAL YEAR 1985 
PROJECTS.—Notwithstanding the provisions of section 607(a) of the 
Military Construction Authorization Act, 1985 (Public Law 98-407, 
98 Stat. 1515), authorizations for the following projects authorized in 
sections 201 of that Act shall remain in effect until October 1, 1987, 
98 Stat. 1499. 
or the date of enactment of the Military Construction Authorization 
Act for fiscal year 1988, whichever is later: 
(1) Unaccompanied enlisted personnel housing in the amount 
of $10,740,000 at the Marine Corps Air Station, Yuma, Arizona. 
100 STAT. 4028 
PUBLIC LAW 99-661—NOV. 14, 1986 
(2) Antenna support facility in the amount of $320,000 at the 
Naval Security Group Activity, Adak, Alaska. 
-3 
(3) Data processing center in the amount of $6,160,000 at the 
e
*
> Naval Supply Center, Bremerton, Washington. 
(4) Unaccompanied enlisted personnel housing in the amount 
-io of $12,130,000 at the Naval Air Station, Whidbey Island, 
4l 
Washington. 
(5) Unaccompanied enlisted personnel housing in the amount 
of $6,600,000 at the Naval Station, Mare Island, Vallejo, 
'^ 
California. 
(6) Engine test cell in the amount of $9,700,000 for the Naval 
'^^ Air Rework Facility, Cherry Point, North Carolina. 
*'- 
(7) Security building in the amount of $850,000 for the Naval 
Station, Norfolk, Virginia. 
'^^: 
(8) Unaccompanied enlisted personnel housing in the amount 
^
'
^
^
^ of $1,580,000 for the Naval Station, Panama Canal, Panama. 
'^' 
(9) Heating, ventilation and air conditioning in the amount of 
$4,540,000 for the Naval Air Station, Alameda, California. 
3! 
(10) Land acquisition in the amount of $4,750,000 for the 
^' 
Marine Corps Air Station, El Toro, California. 
(11) Maintenance hangar in the amount of $5,000,000 for the 
Naval Air Station, Fallon, Nevada. 
(12) Construction battalion unit complex in the amount 
of $1,090,000 for the Naval Station, Mare Island, Vallejo, 
California. 
(13) Airframes shop in the amount of $1,680,000 for the Pacific 
Missile Test Center, Point Mugu, California. 
(14) Unaccompanied enlisted personnel housing in the 
^^ amount of $6,650,000 for the Pacific Missile Test Center, Point 
Mugu, California. 
(15) Maintenance hangar in the amount of $13,200,000 for the 
Marine Corps Air Station, Tustin, California. 
(16) Oil spill prevention facility in the amount of $710,000 for 
the Marine Corps Air Station, Tustin, California. 
(17) Energy monitoring and control system in the amount of 
$1,100,000 for the Naval Air Station, Chase Field, Texas. 
(18) Host nation infrastructure support in the amount of 
$2,970,000 for various locations. 
TITLE III—AIR FORCE 
SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISI-
TION PROJECTS 
(a) INSIDE THE UNITED STATES.—The Secretary of the Air Force 
may acquire real property and may carry out military construction 
projects in the amount shown for each of the following installations 
and locations inside the United States: 
AIR FORCE LOGISTICS COMMAND 
Hill Air Force Base, Utah, $20,550,000. 
ye>^ iBig ^s 
McClellan Air Force Base, California, $28,900,000. 
Newark Air Force Station, Ohio, $3,000,000. 
Robins Air Force Base, Georgia, $16,055,000. 
• it>A 
Tinker Air Force Base, Oklahoma, $32,900,000. 
) 
Wright-Patterson Air Force Base. Ohio, $16,200,000. 
A' ^ t io 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4029 
AIR FORCE SYSTEMS COMMAND 
Arnold Air Force Station, Tennessee, $3,530,000. 
Edwards Air Force Base, California, $10,900,000 
Eglin Air Force Base, Florida, $720,000. 
Hanscom Air Force Base, Massachusetts, $4,000,000 
Patrick Air Force Base, Florida, $2,600,000 
Sunnyvale Air Force Station, California, $2,600,000. 
AIR TRAINING COMMAND 
Chanute Air Force Base, Illinois, $11,300,000 
Keesler Air Force Base, Mississippi, $1,970,000. 
Lackland Air Force Base, Texas, $16,000,000. 
Laughlin Air Force Base, Texas, $3,700,000. 
Mather Air Force Base, California, $740,000. 
Williams Air Force Base, Arizona, $4,900,000 
AIR UNIVERSITY 
Gunter Air Force Station, Alabama, $2,900,000. 
Maxwell Air Force Base, Alabama, $5,310,000. 
ALASKAN AIR COMMAND 
Eielson Air Force Base, Alaska, $12,590,000. 
Elmendorf Air Force Base, Alaska, $3,170,000. 
Galena Airport, Alaska, $11,600,000. 
-
King Salmon Airport, Alaska, $4,050,000. 
Shemya Air Force Base, Alaska, $22,300,000. 
MILITARY AIRLIFT COMMAND 
Altus Air Force Base, Oklahoma, $310,000. 
Andrews Air Force Base, Maryland, $25,430,000. 
Charleston Air Force Base, South Carolina, $7,490,000 
Kirtland Air Force Base, New Mexico, $11,800,000. 
Little Rock Air Force Base, Arkansas, $2,750,000. 
McChord Air Force Base, Washington, $6,400,000. 
McGuire Air Force Base, New Jersey, $7,895,000. 
Norton Air Force Base, California, $1,450,000. 
Pope Air Force Base, North Carolina, $3,400,000. 
Scott Air Force Base, Illinois, $1,100,000. 
Travis Air Force Base, California, $8,200,000. 
PACIFIC AIR FORCES 
Hickam Air Force Base, Hawaii, $4,700,000. 
SPACE COMMAND 
Cape Cod Air Force Station, Massachusetts, $4,300,000. 
Cavalier Air Force Station, North Dakota, $2,820,000. 
Falcon Air Force Station, Colorado, $6,400,000. 
Peterson Air Force Base, Colorado, $3,640,000. 
•; : A 
ft--
tr 
SPECIAL PROJECT 
i 
Various Locations, $37,056,000. 
100 STAT. 4030 
PUBLIC LAW 99-661—NOV. 14, 1986 
STRATEGIC AIR COMMAND 
Beale Air Force Base, California, $9,516,000. 
' 
^ 
'.^ 
Blytheville Air Force Base, Arkansas, $3,870,000. 
Carswell Air Force Base, Texas, $490,000. 
Castle Air Force Base, California, $2,630,000. 
t 
Dyess Air Force Base, Texas, $4,130,000. 
i 
Ellsworth Air Force Base, South Dakota, $10,910,000. 
8 
Fairchild Air Force Base, Washington, $7,520,000. 
F.E. Warren Air Force Base, Wyoming, $3,550,000. 
Grand Forks Air Force Base, North Dakota, $20,730,000. 
Griffiss Air Force Base, New York, $1,590,000. 
''^''ij 
Grissom Air Force Base, Indiana, $3,850,000. 
^ 
Holbrook Radar Bomb Score Site, Arizona, $630,000. 
' 
K.I. Sawyer Air Force Base, Michigan, $1,730,000. 
.i 
La Junta Radar Bomb Scoring Site, Colorado, $5,460,000. 
,,j 
Loring Air Force Base, Maine, $1,300,000. 
"• 
^ -^^ 
Malmstrom Air Force Base, Montana, $30,770,000. 
March Air Force Base, California, $14,440,000. 
McConnell Air Force Base, Kansas, $33,740,000. 
Minot Air Force Base, North Dakota, $30,100,000. 
'^ 
Offutt Air Force Base, Nebraska, $24,970,000. 
Pease Air Force Base, New Hampshire, $2,200,000. 
Plattsburgh Air Force Base, New York, $3,410,000. 
Vandenberg Air Force Base, California, $2,700,000. 
., r ./ i-
Whiteman Air Force Base, Missouri, $10,700,000. 
Wurtsmith Air Force Base, Michigan, $10,740,000. 
TACTICAL AIR COMMAND 
; 
Avon Park Auxiliary Air Field, Florida, $4,100,000. 
Base 39, Classified Location, $2,300,000. 
Bergstrom Air Force Base, Texas, $1,860,000. 
,5^ I ri.t. .^•J}'A 
Cannon Air Force Base, New Mexico, $7,250,000. 
. , 
Davis-Monthan Air Force Base, Arizona, $13,230,000. 
, 
George Air Force Base, California, $9,550,000. 
N
T 
Holloman Air Force Base, New Mexico, $14,760,000. 
| 
Homestead Air Force Base, Florida, $6,550,000. 
-i 
Indian Springs Auxiliary Air Field, Nevada, $1,700,000. 
Langley Air Force Base, Virginia, $9,640,000. 
/• 
Luke Air Force Base, Arizona, $24,140,000. 
MacDill Air Force Base, Florida, $2,380,000. 
.>ri 
Moody Air Force Base, Georgia, $900,000. 
. T 
Mountain Home Air Force Base, Idaho, $14,760,000. 
Myrtle Beach Air Force Base, South Carolina, $3,000,000. 
Nellis Air Force Base, Nevada, $16,100,000. 
Seymour-Johnson Air Force Base, North Carolina, $660,000. 
I 
Shaw Air Force Base, South Carolina, $3,700,000. 
Tyndall Air Force Base, Florida, $15,310,000. 
WESTCONUS, Various Locations, $10,300,000. 
- - 
UNITED STATES AIR FORCE ACADEMY 
' 
Air Force Academy, Colorado, $12,620,000. 
(b) OUTSIDE THE UNITED STATES.—The Secretary of the Air Force 
may acquire real property and may carry out military construction 
projects in the amounts shown for each of the following installations 
and locations outside the United States: 
— ,—— —
'
™ :."^^^-~ 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4031 
MILITARY AIRUFT COMMAND 
Lajes Field, Portugal, $7,450,000. 
Rhein-Main Air Base, Germany, $1,300,000. 
PACIFIC AIR FORCES 
Kadena Air Base, Japan, $7,365,000. 
Misawa Air Base, Japan, $10,300,000. 
Totsuka Air Base, Japan, $700,000. 
Yokosuka Air Base, Japan, $600,000. 
Camp Red Cloud, Korea, $1,450,000. 
Kimhae Air Base, Korea, $3,620,000. 
Kunsan Air Base, Korea, $8,170,000. 
Kwang-Ju Air Base, Korea, $600,000. 
Osan Air Base, Korea, $11,350,000. 
Suwon Air Base, Korea, $3,850,000. 
Taegu Air Base, Korea, $5,170,000. 
Clark Air Base, Republic of the Philippines, $41,100,000. 
Saipan, $5,200,000. 
SPACE COMMAND 
Sondrestrom Air Base, Greenland, $5,860,000. 
Thule Air Base, Greenland, $9,790,000. 
Woomera Air Station, Australia, $2,300,000. 
STRATEGIC AIR COMMAND 
Andersen Air Force Base, Guam, $7,600,000. 
TACTICAL AIR COMMAND 
Keflavik Naval Air Station, Iceland, $1,600,000. 
Masirah, Oman, $3,500,000. 
Thumrait, Oman, $3,400,000. 
UNITED STATES AIR FORCES IN EUROPE 
Florennes Air Base, Belgium, $1,200,000. 
Bitburg Air Base, Germany, $5,350,000. 
Hahn Air Base, Germany, $10,740,000. 
Lindsey Air Station, Germany, $1,200,000. 
Ramstein Air Base, Germany, $23,070,000. 
Sembach Air Base, Germany, $11,870,000. 
Spangdahlem Air Base, Germany, $8,310,000. 
Wueschheim Air Station, Germany, $310,000. 
Zweibrucken Air Base, Germany, $6,740,000. 
Iraklion Air Station, Greece, $320,000. 
Camp Darby, Italy, $270,000. 
Comiso Air Station, Italy, $3,000,000. 
San Vito Air Station, Italy, $3,790,000. 
Morocco, $25,400,000. 
Camp New Amsterdam, The Netherlands, $1,500,000. 
Woensdrecht Air Base, The Netherlands, $30,780,000. 
Ankara Air Station, Turkey, $5,230,000. 
Incirlik Air Base, Turkey, $12,250,000. 
Pirinclik Air Station, Turkey, $3,000,000. 
Martlesham Heath, United Kingdom, $1,650,000. 
.m 
100 STAT. 4032 
PUBLIC LAW 99-661—NOV. 14, 1986 
RAF Alconbury, United Kingdom, $13,770,000. 
RAF Bentwaters, United Kingdom, $3,850,000. 
, 
. . 
. 
RAF Chicksands, United Kingdom, $950,000. 
t 
RAF Croughton, United Kingdom, $630,000. 
RAF Fairford, United Kingdom, $4,450,000. 
RAF Lakenheath, United Kingdom, $500,000. 
RAF Mildenhall, United Kingdom, $4,700,000. 
n ^,;^ '-ti^neM 
RAF Molesworth, United Kingdom, $2,430,000. 
' '"' " 
' \'i^ 
RAF Upper Heyford, United Kingdom, $5,700,000. 
f
-
RAF Welford, United Kingdom, $1,590,000. 
-} 
RAF Wethersfield, United Kingdom, $650,000. 
> 
Base 30, Classified Location, $2,950,000. 
I 
Overseas Classified Location, $11,500,000. 
i 
Various Locations, Europe, $3,953,000. 
I 
SEC. 2302. FAMILY HOUSING 
* ^ 
The Secretary of the Air Force may construct or acquire family 
housing units (including land acquisition) at the following installa-
tions, in the number of units shown, and in the amount shown, for 
each installation: 
Bitburg Air Base, Germany, three hundred and thirty-two 
units, $26,415,000. 
Hahn Air Base, Germany, one hundred and fifty units, 
$11,300,000. 
La Junta Air Force Station, Colorado, forty units, $4,000,000. 
Beale Air Force Base, California, family housing maintenance 
shop, $180,000. 
Davis-Monthan Air Force Base, Arizona, family housing 
management office, $300,000. 
McGuire Air Force Base, New Jersey, family housing 
management office, $325,000. 
Pope Air Force Base, North Carolina, family housing manage-
ment office, $300,000. 
Edwards Air Force Base, California, twenty-four mobile home 
spaces, $376,000. 
SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS 
(a) AMOUNT AUTHORIZED.—Subject to section 2825 of title 10, 
United States Code, the Secretary of the Air Force may make 
expenditures, using amounts appropriated pursuant to section 
2305(aX6XA), to improve existing military family housing units, 
including energy conservation projects, in an amount not to exceed 
$58,644,000. 
(b) WAIVER OF MAXIMUM PER UNIT COST FOR CERTAIN IMPROVE-
MENT PROJECTS.—Notwithstanding the maximum amount per unit 
for an improvement project under section 2825(b) of title 10, United 
States Code, the Secretary of the Air Force may carry out projects to 
improve existing military family housing units at the following 
installations in the number of units shown, and in the amount 
shown, for each installation: 
Eielson Air Force Base, Alaska, eighty-eight units, $6,186,000. 
Elmendorf Air Force Base, Alaska, twelve units, $760,000. 
Air Force Academy, Colorado, one unit, $120,000. 
Peterson Air Force Base, Colorado, four units, $149,000. 
MacDill Air Force Base, Florida, one hundred and fifty-eight 
units, $4,430,000; seven units, $553,000; seventy-one units, 
$2,103,000. 
. " - . - - -
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4033 
'^' 
Scott Air Force Base, Illinois, one hundred and twelve units, 
$4,690,000. 
Barksdale Air Force Base, Louisiana, one hundred and four-
teen units, $5,342,000. 
Bangor Air Force Station, Maine, one unit, $30,000. 
Andrews Air Force Base, Maryland, seven units, $518,000. 
Pease Air Force Base, New Hampshire, two-hundred units, 
$7,177,000. 
Plattsburgh Air Force Base, New York, twenty-nine units, 
$2,272,000. 
Shaw Air Force Base, South Carolina, one hundred and 
twenty-five units, $4,385,000; seventy-four units, $2,598,000. 
Carswell Air Force Base, Texas, two hundred and three units, 
$7,478,000. 
Lackland Air Force Base, Texas, sixty-four units, $1,920,000. 
^•^" 
Randolph Air Force Base, Texas, five units, $402,000. 
Reese Air Force Base, Texas, one hundred units, $2,895,000. 
Langley Air Force Base, Virginia, five units, $441,000. 
Andersen Air Force Base, Guam, two hundred units, 
$14,517,000. 
Kadena Air Base, Japan, one hundred units, $5,054,000; three 
units, $240,000. 
SEC. 2304. RESTRICTION 
ON 
CERTAIN 
MILITARY 
CONSTRUCTION 
FUNDING 
Funds appropriated for military construction may not be used 
during fiscal year 1987 in connection with the basing at any military 
installation or facility other than Little Rock Air Force Base, 
Jacksonville, Arkansas, the eight KC-135 tanker aircraft that, as of 
June 1, 1986, were based at such Air Force base and assigned to the 
189th Air Refueling Group of the Air National Guard. 
SEC. 2305. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal years beginning after September 30, 1986, for military 
construction, land acquisition, and military family housing func-
tions of the Department of the Air Force in the total amount of 
$2,143,729,000 as follows: 
(1) For military construction projects inside the United States 
authorized by section 2301(a), $784,642,000. 
(2) For military construction projects outside the United 
States authorized by section 2301(b), $351,878,000. 
IPI 
(3) For unspecified minor construction projects under section 
2805 of title 10, United States Code, $16,000,000. 
(4) For architectural and engineering services and construc-
tion design under section 2807 of title 10, United States Code, 
. 
$117,260,000. 
oui; 
(5) PQJ. advances to the Secretary of Transportation for 
construction of defense access roads under section 210 of title 
23, United States Code, $32,700,000. 
(6) For military family housing functions— 
(A) for construction and acquisition of military family 
housing and facilities, $108,840,000; and 
(B) for support of military housing (including functions 
described in section 2833 of title 10, United States Code), 
.
O
O
- ,$732,409,000, of which— 
mm 
100 STAT. 4034 
PUBLIC LAW 99-661—NOV. 14, 1986 
.- - - - 
(i) not more than $5,600,000 may be obligated or 
expended for the leasing of military family housing 
-tijol bn 
units in the United States, the Commonwealth of 
Puerto Rico, and Guam; and 
(ii) not more than $67,145,000 may be obligated or 
,,AA ^i 
expended for the leasing of military family housing 
units in the foreign countries. 
(b) AUTHORIZATION OF UNOBLIGATED FUNDS FOR ENERGY CON-
SERVATION PROJECTS.—Funds appropriated to the Department of 
Defense for fiscal years before fiscal year 1987 which could be used 
for energy conservation projects of the Department of the Air Force 
and which remain available for obligation are hereby authorized to 
be made available, to the extent provided in appropriation Acts, for 
energy conservation projects authorized in section 2301(a) in an 
.-amount not to exceed $9,470,000. 
(c) LIMITATION ON TOTAL COST OF CONSTRUCTION 
PROJECTS 
AUTHORIZED IN THIS TITLE.—Notwithstanding the cost variations 
authorized by section 2853 of title 10, United States Code, and any 
other cost variation authorized by law, the total cost of all projects 
carried out under section 2301 may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of subsec-
tion (a) and the amount specified in subsection (b). 
(d) USE OF CERTAIN FUNDS.—The Secretary of the Air Force may 
use not more than $350,000 of the amount appropriated pursuant to 
subsection (a)(3) to acquire approximately 20 acres of real property, 
and improvements thereon, located adjacent to Lake Wateree near 
Shaw Air Force Base, South Carolina. 
SEC. 2306. EXTENSION OF CERTAIN PRIOR YEAR AUTHORIZATIONS 
Notwithstanding the provisions of section 607(a) of the Military 
Construction Authorization Act, 1985 (Public Law 98-407, 98 Stat. 
1515), authorizations for the following projects authorized in section 
98 Stat. 1508. 
302 of that Act shall remain in effect until October 1, 1987, or the 
date of enactment of the Military Construction Authorization Act 
for fiscal year 1988, whichever is later: 
(1) Fort MacArthur, California, 140 units, $15,100,000. 
(2) RAF Greenham Common, United Kingdom, 250 units, 
$22,441,000. 
" 
(3) RAF Bentwaters, United Kingdom, 200 units, $20,163,000. 
b^iitHu' 
•^i"'.j 
TITLE IV—DEFENSE AGENCIES 
SEC. 2401. AUTHORIZED CONSTRUCTION PROJECTS AND LAND ACQUISI-
TION FOR THE DEFENSE AGENCIES 
(a) INSIDE THE UNITED STATES.—The Secretary of Defense may 
acquire real property and carry out military construction projects in 
the amounts shown for each of the following installations and 
locations inside the United States: 
'i 
DEFENSE COMMUNICATIONS AGENCY 
Scott Air Force Base, Illinois, $7,600,000. 
„ „^ 'l' 
. 
DEFENSE LANGUAGE INSTITUTE 
Defense Language Institute, Monterey, California, $5,400,000. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4035 
f''" 
DEFENSE LOGISTICS AGENCY 
Defense Fuel Support Point, Estero Bay, California, $680,000. 
Defense Construction Supply Center, Columbus, Ohio, $860,000. 
Defense Fuel Support Point, Charleston, South Carolina, $460,000 
Defense Fuel Support Point, Naval Supply Center, Charleston, 
South Carolina, $5,130,000. 
Defense Depot, Memphis, Tennessee, $1,160,000. 
DEFENSE MAPPING AGENCY 
« : -
Aerospace Center, St. Louis, Missouri, $16,700,000. 
DEFENSE MEDICAL FACILITIES OFFICE 
' 
-1 
Edwards Air Force Base, California, $3,950,000. 
Fort Ord, California, $530,000. 
Pearl Harbor, Hawaii, $9,700,000. 
Mountain Home Air Force Base, Idaho, $30,500,000. 
Fort Polk, Louisiana, $2,650,000. 
Keesler Air Force Base, Mississippi, $3,100,000. 
McGuire Air Force Base, New Jersey, $3,800,000. 
Kirtland Air Force Base, New Mexico, $16,000,000. 
Camp Lejeune, North Carolina, $3,900,000. 
Fort Hood, Texas, $3,450,000. 
Brooks Air Force Base, Texas, $1,850,000. 
Randolph Air Force Base, Texas, $13,700,000. 
Fort Sam Houston, Texas, $135,000,000. 
DEFENSE NUCLEAR AGENCY 
Armed Forces Radiobiology Research Institute, Bethesda, Mary-
land, $790,000. 
Field Command, Kirtland Air Force Base, New Mexico, $900,000. 
JOINT TACTICAL COMMAND, CONTROL, AND COMMUNICATIONS AGENCY 
Fort Huachucha, Arizona, $9,890,000. 
NATIONAL SECURITY AGENCY 
Fort Meade, Maryland, $9,570,000. 
Classified Location, $4,000,000. 
Classified Location, $1,000,000. 
DEFENSE-LEVEL ACTIVITIES 
Classified Location, $3,000,000. 
STRATEGIC DEFENSE INITIATIVE 
j . 
Edwards Air Force Base, $4,140,000. 
Pacific Missile Range, Kauai, Hawaii, $2,890,000. 
White Sands Missile Range, New Mexico, $1,930,000. 
UNIFORMED SERVICES UNIVERSITY OF HEALTH SCIENCES 
Bethesda, Maryland, $900,000. 
O
a
) OUTSIDE THE UNITED STATES.—The Secretary of Defense may 
acquire real property and may carry put military construction 
100 STAT. 4036 
PUBLIC LAW 99-661—NOV. 14, 1986 
projects in the amounts shown for each of the following installations 
and locations outside the United States: 
DEFENSE LOGISTICS AGENCY 
Defense Fuel Support Point, Chimu Wan, Japan, $6,640,000. 
Defense Fuel Support Point, Tsurumi, Japan, $3,520,000. 
Defense Reutilization and Marketing Office, Bupyong, Korea, 
$1,290,000. 
Defense Fuel Support Point, Toegeywon, Korea, $1,010,000. 
DEFENSE MEDICAL FACILITIES OFFICE ) 95£q 
;'* 
Boeblingen, Germany, $3,650,000. 
r •saKacrc 
Grafenwoehr, Germany, $3,950,000. 
Karlsruhe, Germany, $6,800,000. 
>8ftli ^-rof tiA ^bm^-^m 
Vilseck, Germany, $5,600,000. 
Camp Edwards, Korea, $1,800,000. 
Camp Long, Korea, $1,850,000. 
Camp Pelham, Korea, $720,000. 
Camp New Amsterdam, The Netherlands, $6,000,000. 
DEPARTMENT OF DEFENSE DEPENDENT SCHOOLS 
Florennes, Belgium, $1,260,000. 
Naval Air Station, Bermuda, $4,280,000. 
Aschaffenburg, Germany, $6,600,000. 
. ,. 
Bad Kissingen, Germany, $1,330,000. 
Baumholder, Germany, $1,600,000. 
Dexheim, Germany, $2,430,000. 
a-.^rf 
Erlangen, Germany, $3,220,000. 
• Gelnhausen, Germany, $1,130,000. 
order i^ '.--r-' " '•- • .» 
Grafenwoehr, Germany, $2,500,000. 
.( Hahn, Germany, $3,470,000. 
* 
'•' I -
Heidelberg, Germany, $3,190,000. 
Hessisch-Oldendorf, Germany, $2,310,000. -'•• ^ .A-IT .. 
Hohenfels, Germany, $1,190,000. 
. 
- 
j 
Kaiserslautern, Germany, $7,880,000. 
^ 
' ^ 
Nuernberg, Germany, $8,580,000. 
Schwaebish Gmuend, Germany, $1,640,000. 
Stuttgart, Germany, $4,530,000. 
/A ^,j «« - ^ 
Wuerzburg, Germany, $7,760,000. 
i , 
Seoul, Korea, $510,000. 
;{n 
Woensdrecht, The Netherlands, $7,420,000. 
;.3l»ffe3.!5.i 
STRATEGIC DEFENSE INITIATIVE 
Pacific Missile Range, Kwajalein, $1,340,000. 
SEC. 2402. FAMILY HOUSING 
The Secretary of Defense may construct or acquire three family 
housing units (including land acquisition) at cleissified locations in 
the total amount of $270,000. 
SEC. 2403. BROOKE ARMY MEDICAL CENTER 
(a) AUTHORIZATION TO CONTRACT IN ADVANCE OF APPROPRIA-
TIONS.—(1) Subject to paragraph (2), the Secretary of Defense may 
enter into one or more contracts, in advance of appropriations 
therefor, for the design and construction of the military construction 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4037 
project authorized by section 2401 to be accomplished at Brooke 
Army Medical Center, San Antonio, Texas, if each such contract 
limits the amount of payments that the Federal Government is 
>: • 
obligated to make under such contract to the amount of appropria-
tions available, at the time such contract is entered into, for obliga-
tion under such contract. Such design and construction may be 
'-*- •^^'^' "^ 
accomplished by using one-step turn-key selection procedures, or 
other competitive contracting methods. 
(2) The design of the project referred to in paragraph (1) shall 
provide for a medical facility with space for 450 beds, but the initial 
construction shall provide for a medical facility with space for only 
200 beds. 
(b) REPEAL PROVISION.—Section 104 of the Military Construction 
Authorization Act, 1985 (Public Law 98-407; 98 Stat. 1498), is 
repealed. 
SEC. 2404. HAZARDOUS WASTE STORAGE 
(a) AUTHORITY TO CONSTRUCT.—The Secretary of Defense may, 
using not more than $10,000,000 appropriated for fiscal year 1987 
pursuant to the authorization in section 2405(a), carry out military 
construction projects not otherwise authorized by law for the 
construction of hazardous waste storage facilities which are 
described in a report submitted by the Comptroller, Defense Logis-
tics Agency, on September 22, 1986, to the Committees on Armed 
Services of the Senate and the House of Representatives. 
(b) NOTIFICATION TO CONGRESS.—When a decision is made to carry 
out a project under this section, the Secretary of Defense shall notify 
in writing the appropriate committees of Congress of that decision, 
the justification for the project, the estimated cost of the project, and 
the permit process for the project. The project may not be initiated 
until a period of 21 days has elapsed after the date on which the 
notification is received by the committees. 
(c) INCREASE IN COST OF PROJECT.—The cost of a hazardous waste 
storage facility project carried out under this section may be 
increased by not more than 25 percent of the estimated cost of the 
project as contained in the notification provided to the committees 
pursuant to subsection (b) if the Secretary of Defense determines— ffifti JsM&i 
(A) that such an increase is required for the sole purpose of 
meeting unusual variations in cost; and 
IQ 
(B) that such variations in cost could not have been reason-
ably anticipated at the time the project justification was origi-
nally submitted to the committees. 
(d) DEFINITION.—As used in this section, the term "hazardous 
waste" includes both excess hazardous materials and hazardous 
wastes as defined by applicable laws and regulations. 
SEC. 2405. AUTHORIZATION OF APPROPRIATIONS. DEFENSE AGENCIES 
(a) IN GENERAL.—Funds are hereby authorized to be appropriated 
for fiscal years beginning after September 30, 1986, for military 
construction, land acquisition, and military family housing func-
tions of the Department of Defense (other than the military depart-
ments), in the total amount of $532,030,000 as follows: 
(1) For military construction projects inside the United States 
authorized by section 2401(a), $180,130,000. 
(2) For military construction projects outside the United 
States authorized by section 2401(b), $117,000,000. 
ri^r 
100 STAT. 4038 
PUBLIC LAW 99-661—NOV. 14, 1986 
(3) For the construction of a research and engineering facility 
at Fort Meade, Maryland, authorized by section 401(a) of the 
99 Stat. 618. 
Military Construction Authorization Act, 1986, $38,000,000. 
(4) For the construction of the Madigan Army Medical Center, 
Fort Lewis, Washington, authorized by section 101(a) of the 
98 Stat. 1495, 
Military Construction Authorization Act, 1985, $72,100,000. 
(5) For unspecified minor construction projects under section 
2805 of title 10, United States Code, $4,000,000. 
f 
(6) For construction projects under the contingency construc-
I 
tion authority of the Secretary of Defense under section 2804 of 
, 
title 10, United States Code, $5,000,000. 
(7) For architectural and engineering services and construc-
. 
tion design under section 2807 of title 10, United States Code, 
: 
$88,200,000. 
(8) For conforming storage facilities, $10,000,000. 
(9) For military family housing functions— 
(A) for construction and acquisition of military family 
y 
housing and facilities, $270,000; and 
ru 
(B) for support of military housing (including functions 
described in section 2833 of title 10, United States Code), 
$17,330,000, of which not more than $14,027,000 may be 
obligated or expended for the leasing of military family 
housing units in foreign countries. 
(b) 
LIMITATION 
ON TOTAL 
COST OF CONSTRUCTION 
PROJECTS 
AUTHORIZED IN THIS TITLE.—Notwithstanding the cost variations 
authorized by section 2858 of title 10, United States Code, and any 
other cost variations authorized by law, the total cost of all projects 
carried out under section 2401 may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of subsec-
tion (a) and $125,000,000 (the balance of the amount authorized for 
the construction of the Brooke Army Medical Center, Fort Sam 
Houston, Texas). 
SEC. 2406. EXTENSION OF PRIOR YEAR AUTHORIZATIONS 
Notwithstanding the provisions of section 607(a) of the Military 
Construction Authorization Act, 1985 (Public Law 98-407, 98 Stat. 
1515), the authorizations for the following projects authorized in 
98 Stat. 1509, 
sections 401 and 402 of such Act shall remain in effect until Octo-
^^^^- 
ber 1, 1987, or the date of the Military Construction Authorization 
Act for fiscal year 1988, whichever is later: 
(1) Defense property disposal office in the amount of 
$1,950,000 at Pearl Harbor Naval Shipyard, Hawaii. 
(2) Six family housing units at classified locations in the 
e 
amount of $693,000. 
TITLE V—NORTH ATLANTIC TREATY ORGANIZATION 
' 
INFRASTRUCTURE 
SEC. 2501. AUTHORITY OF THE SECRETARY OF DEFENSE TO MAKE 
CONTRIBUTIONS 
(a) IN GENERAL.—The Secretary of Defense may make contribu-
tions for the North Atlantic Treaty Organization infrastructure 
program as provided in section 2806 of title 10, United States Code, 
in an amount not to exceed the sum of the amount authorized to be 
appropriated for this purpose in section 2502 and the amount col-
lected from the North Atlantic Treaty Organization as a result of 
construction previously financed by the United States. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4039 
(b) LIMITATION.—The Secretary may obligate funds under this 
section only to the extent funds are appropriated for use under 
section 2806 of title 10, United States Code. 
SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO 
Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 1986, for contributions by the Sec-
retary of Defense under section 2806 of title 10, United States Code, 
for the share of the United States of the cost of projects for the 
North Atlantic Treaty Organization Infrastructure Program as 
authorized by section 2501, in the amount of $247,000,000. 
SEC. 2503. AMENDMENT TO NATO INFRASTRUCTURE PROGRAM 
(a) IN GENERAL.—Section 2806(a) of title 10, United States Code, is 
amended by inserting "and for related expenses" after "head-
quarters)", 
OJ) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
lo use 2806 
apply only with respect to contributions made with funds appropri- note, 
ated for fiscal years after fiscal year 1986. 
SEC. 2504. RESTRICTION ON CERTAIN FUNDING 
10 USC 2806 
The Secretary of Defense may not obligate or expend any funds 
after fiscal year 1987 with respect to the North Atlantic Treaty 
Organization infrastructure program as provided in section 2806 of 
title 10, United States Code, until the Secretary submits to the 
Committees on Armed Services of the Senate and the House of 
Representatives— 
(1) a comprehensive master plan for establishing adequate 
active defenses for— 
(A) air bases in Europe at which operations of United 
States aircraft are planned; and 
^
, 
(B) sites in Europe used by the United States for logistic 
support of the North Atlantic Treaty Organization or for 
prepositioned overseas materiel configur^ to unit sets; and 
(2) a report containing a certification by the Secretary that 
sufficient funds have been budgeted by the Department of 
Defense in the fiscal year 1988 five-year defense plan to meet 
the objectives of such comprehensive master plan. 
TITLE VI—GUARD AND RESERVE FORCES FACILITIES 
SEC. 2601. AUTHORIZATION FOR GUARD AND RESERVE FACILITIES 
There are authorized to be appropriated for fiscal years beginning 
after September 30, 1986, for the costs of acquisition, architectural 
and engineering services, and construction of facilities for the Guard 
and Reserve Forces, and for contributions therefor, under chapter 
133 of title 10, United States Code (including the cost of acquisition 
10 USC 2231 
of land for those facilities), the following amounts: 
et seq. 
(1) For the Department of the Army— 
(A) for the Army National Guard of the United States, 
- 
$133,271,000, and 
(B) for the Army Reserve, $86,700,000. 
H ^ ^ (2) For the Department of the Navy, for the Naval and Marine 
Corps Reserves, $44,500,000. 
(3) For the Department of the Air Force— 
(A) for the Air National Guard of the United States, 
$145,325,000, and 
100 STAT. 4040 
PUBLIC LAW 99-661—NOV. 14, 1986 
(B) for the Air Force Reserve, $58,900,000. 
,;.;,, r .,, 
TITLE VII—GENERAL PROVISIONS 
'• 
u! 
J 
PART A—EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
To BE SPECIFIED BY LAW 
SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED 
TO BE SPECIFIED BY LAW 
(a) EXPIRATION OF AUTHORIZATIONS AFTER TWO YEARS.—Except as 
provided in subsection (b), all authorizations contained in titles I, II, 
III, IV, and V for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the 
NATO Infrastructure Program (and authorizations of appropria-
tions therefor) shall expire on October 1, 1988, or the date of the 
K 5 
enactment of the Military Construction Authorization Act for fiscal 
year 1989, whichever is later. 
(b) EXCEPTION.—The provisions of subsection (a) do not apply to 
a
o
g
< 
authorizations for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the 
NATO Infrastructure Program (and authorizations of appropria-
tions therefor), for which appropriated funds have been obligated 
before October 1, 1988, or the date of the enactment of the Military 
Construction Authorization Act for fiscal year 1989, whichever is 
later, for construction contracts, land acquisition, family housing 
projects and facilities, or contributions to the NATO Infrastructure 
Program. 
SEC. 2702. CODIFICATION OF CERTAIN AMOUNTS REQUIRED TO BE SPECI-
FIED BY LAW 
(a) 
MAXIMUM 
AMOUNT 
FOR UNSPECIFIED 
MINOR 
MILITARY 
CONSTRUCTION PROJECTS.—Section 2805 of title 10, United States 
Code, is amended— 
(1) in subsection (a), by striking out "the amount specified by 
law as the maximum amount for a minor military construction 
project" in clause (2) and inserting in lieu thereof "$1,000,000"; 
(2) in subsection (b)(1), by striking out "50 percent" and all 
y that follows through "project" and inserting in lieu thereof 
"$500,000"; and 
(3) in subsection (c), by striking out "20 percent" and all that 
follows through 
"project" and inserting in lieu 
thereof 
"$200,000". 
(b) MAXIMUM AMOUNT FOR ARCHITECTURAL AND ENGINEERING 
10 use 2807. 
SERVICES.—Section 28070t>) of such title is amended by striking out 
"the maximum amount specified by law for the purposes of this 
section" and inserting in lieu thereof "$300,000". 
(c) MAXIMUM AMOUNT PER UNIT FOR AN IMPROVEMENT PROJECT 
FOR 
FAMILY HOUSING UNITS.—Section 2825(b)(1) of such title is 
amended by striking out "an amount specified by law for such 
purpose" and inserting in lieu thereof "$30,000". 
(d) MAXIMUM ANNUAL RENTAL FOR A FAMILY HOUSING UNIT IN 
THE 
UNITED STATES.—Section 2828(b) of such title is amended— 
(1) in paragraph (2), by striking out "the amount specified by 
.?'* - law as the maximum annual domestic family housing unit lease 
amount" and inserting in lieu thereof "$10,000"; and 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4041 
" 
(2) in paragraph (3XA), by striking out "the maximum annual 
domestic" and all that follows through the period and inserting 
in lieu thereof "$10,000 but does not exceed $12,000.". 
(e) MAXIMUM ANNUAL RENTAL FOR A FAMILY HOUSING UNIT OUT-
SIDE THE UNITED STATES.—Section 2828(e)(1) of such title is amended 
lo USC 2828. 
by striking out "the amount specified by law as the maximum 
annual foreign family housing unit lease amount" and inserting in 
lieu thereof "$16,800". 
if) MAXIMUM NUMBER OF FAMILY HOUSING UNITS LEASED IN FOR-
EIGN COUNTRIES.—Section 2828(e)(2) of such title is amended by 
striking out "shall be specified by law" and inserting in lieu thereof 
"is 32,000". 
(g) MAXIMUM ANNUAL RENTAL FOR FAMILY HOUSING FACILITIES, 
O
R FOR REAL PROPERTY RELATED TO FAMILY HOUSING FACILITIES, 
LEASED IN A FOREIGN COUNTRY.—Section 2828(f) of such title is 
amended by striking out "the amount specified by law for such 
purpose" and inserting in lieu thereof "$250,000". 
^ „ ^ PART B—MILITARY CONSTRUCTION PROGRAM PROVISIONS 
SEC. 2711. TEST OF LONG-TERM FACILITIES CONTRACTS 
Section 2809(a)(1) of title 10, United States Code, is amended to 
read as follows: 
"(1)(A) The Secretary concerned may enter into contracts for the 
construction, management, and operation of a facility on or near a 
military installation for the provision of an activity or service 
named in subparagraph (B) if the Secretary concerned has identified 
the proposed project in the budget proposal submitted to Congress 
and has determined that the facility can be more economically 
provided under a long-term contract than by conventional means. 
"(B) The activities and services referred to in subparagraph (A) 
aiasij ;J 
are as follows: 
"(i) Child care services. 
"(ii) Potable and waste water treatment services. 
:;.f < 
"(iii) Depot supply activities. 
:- i.i> 
"(iv) Troop housing. 
; ;,, 
"(v) Transient quarters. 
"(vi) Other logistic and administrative services, other than 
depot maintenance.". 
SEC. 2712. PLANNING AND DESIGN 
(a) IN GENERAL.—Section 2807 of title 10, United States Code, is 
amended by adding at the end the following new subsection: 
"(d) For study, planning, design, architectural, and engineering Contracts. 
services related to military construction and family housing 
projects, the Secretaries of the military departments may incur 
obligations for contracts or portions of contracts using military 
construction and family housing appropriations from different fiscal 
years to the extent that those appropriations are available for 
obligation.". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) lo USC 2807 
shall apply only to funds appropriated for fiscal years after fiscal 
^°^-
year 1985. 
100 STAT. 4042 
PUBLIC LAW 99-661—NOV. 14, 1986 
SEt. 2713. BUILD-TO-LEASE AND RENTAL GUARANTEE PILOT PROGRAMS 
(a) RENTAL GUARANTEE PROGRAM.—(1) Subsection (b) of section 
802 of the Military Construction Authorization Act, 1984 (10 U.S.C. 
2821 note), is amended— 
.8I:8K 
; ;i 
(A) in paragraph (2), by striking out "for operation and 
maintenance costs which shall (if included) be effective for the 
term of agreement"; 
(B) in paragraph (4), by adding "or, at the discretion of the 
'f'--': Secretary of the military department concerned, in compliance 
with the local building codes ' after "specifications"; 
(C) in paragraph (5), by striking out "15 years" and inserting 
in lieu thereof "25 years"; 
:• 
(D) by striking out "and" at the end of paragraph (10); 
(E) by striking out the period at the end of paragraph (11) and 
inserting in lieu thereof "; and"; and 
r! jijf 
(P) by adding at the end the following new paragraph: 
"(12) may provide in the agreement for the rental of a child 
care center, civic center building, and similar type buildings 
constructed for the support of family housing.". 
(2) Subsection (g)(2) of such section is amended by striking out 
"600" and inserting in lieu thereof "1,200"; 
(3) Subsection (h) of such section is amended by striking out 
"September 30, 1986" and inserting in lieu thereof "September 30, 
1990". 
(b) BUILD-TO-LEASE PROGRAM.—Section 2828(g) of title 10, United 
States Code, is amended— 
(1) in paragraph (8)(B), by striking out "600" and inserting in 
; 
lieu thereof "1,600"; 
(2) in paragraph (9), by striking out "September 30, 1986" and 
inserting in lieu thereof "September 30,1988"; and 
(3) by adding at the end the following new paragraph: 
Contracts. 
"(10) A contract for the lease of family housing under this subsec-
tion may include provision for the lease of a child care center, civic 
center building, and similar type buildings constructed for the 
support of family housing.". 
SEC. 2714. FOREIGN 
LEASES 
FOR 
PERSONNEL 
HOLDING 
SPECIAL 
POSITIONS 
Section 2828(e)(1) of title 10, United States Code, is amended by 
striking out "200" and inserting in lieu thereof "220". 
PART C—MISCELLANEOUS PROVISIONS 
W •. :J^ ^^^ 
• SEC. 2721. POSTAL FACILITIES 
*•••.-' -'?•:—-. C
A sat ^3 .'J ..J (a) 
Sections 4779 and 9779 of title 10, United States Code, are each 
'"^ " * 
amended— 
(1) by striking out subsection O
t
>
)
; and 
(2) by redesignating subsection (c) as subsection (b). 
SEC. 2722. COMMUNITY PLANNING ASSISTANCE 
The Secretary of Defense may use not more than $200,000 from 
funds appropriated to the Department of Defense for fiscal year 1987 
T^?: 0 
to provide planning assistance to local communities located near 
.i^oii 
homeports proposed under the Naval Strategic Dispersal Program 
at Ingleside, Texas, and other Gulf Coast sites, if the Secretary 
determines that the financial resources available to the community 
(by grant or otherwise) are inadequate. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4043 
SEC. 2723. RELEASE OF CERTAIN USE RIGHTS HELD BY THE UNITED 
STATES 
(a) IN GENERAL.—The Administrator of General Services shall 
Virginia, 
release to the Virginia Port Authority, an instrumentality of the 
Commonwealth of Virginia, all residuary rights of use held by the 
United States in three warehouses located in the city of Norfolk, 
Virginia, within the area operated as a public port facility and 
known as the Norfolk International Terminals. 
(b) TIME LIMITATION; COMPENSATION.—The Administrator of Gen-
eral Services shall execute such documents and take such other 
actions as may be necessary to release, within 180 days after the 
date of the enactment of this Act, the rights referred to in subsec-
tion (a). The release shall be made without any compensation in 
addition to compensation paid to the United States for such ware-
houses and other facilities by the city of Norfolk, Virginia, in 1968. 
SEC. 2724. PROHIBITION 
OF 
FUNDING 
FOR 
CERTAIN 
MILITARY 
CONSTRUCTION CONTRACTS ON GUAM 
(a) IN GENERAL.—Except as provided in subsection (b\ funds 
appropriated pursuant to any authorization made by this Act may 
not be expended with respect to any contract for a military construc-
tion project on Guam if any work is carried out on such project by 
any 
person 
who 
is a 
nonimmigrant 
described 
in 
section 
101(a)(15)(H)(ii) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15XHXii)). 
(b) EXCEPTION.—In any case in which there is no acceptable bid Reports. 
made in response to a solicitation by the Secretary of a military 
department for bids on a contract for a military construction project 
on Guam and the Secretary concerned makes a determination that 
the prohibition contained in subsection (a) is a significant deterrent 
to obtaining bids on such contract, the Secretary concerned may 
make another solicitation for bids on such contract and the prohibi-
tion contained in subsection (a) shall not apply to such contract after 
the end of the 21-day period beginning on the date on which the 
Secretary concerned transmits a report concerning such contract to 
the Committees on Armed Services of the Senate and the House of 
Representatives. 
(c) EFFECTIVE DATE.—This section shall apply only to contracts 
entered into, amended, or otherwise modified on or after the date of 
the enactment of this Act. 
SEC. 2725. PROHIBITION ON DESIGN OF PENTAGON ANNEX 
None of the funds appropriated pursuant to an authorization in 
this or any other Act may be used for the design of an administra-
tive complex to be constructed on the property known as the Penta-
gon Reservation, Arlington, Virginia, for the purpose of supporting 
the headquarters of the Department of Defense or the military 
departments or the support functions of such headquarters. 
SEC. 2726. STUDY OF NEEDS OF DEPENDENTS' EDUCATIONAL FACILITIES 
ON MILITARY INSTALLATIONS 
(a) IN GENERAL.—The Secretary of Defense and the Secretary of 
MX^M WSM 
Education shall conduct a joint study for the purpose of determining 
the needs for construction, extension, remodeling, and rehabilitation 
of dependents' educational facilities on military installations in the 
United States and shall develop a joint policy to meet those needs. 
100 STAT. 4044 
PUBLIC LAW 99-661—NOV. 14, 1986 
(b) REPORT.—The Secretaries of Defense and Education shall, 
not later than April 1, 1987, transmit to the Congress a report 
4ir 
containing— 
(Da description of the needs determined under subsection (a); 
(2) the joint policy developed to meet such needs; and 
(3) any recommendations for legislation the Secretaries con-
sider necessary or appropriate to meet such needs. 
SEC. 2727. STUDY OF USE OF PROPERTY AT LOS ALAMITOS ARMED 
FORCES RESERVE CENTER, CALIFORNIA, FOR MILITARY 
FAMILY HOUSING 
(a) IN GENERAL.—The Secretary of the Army and the Secretary of 
the Navy shall conduct a study concerning the potential use of the 
property currently being utilized as the Los Alamitos Armed Forces 
Reserve Center, California, for military family housing for the 
Navy. 
(b) MATTERS TO CONSIDER.—In conducting the study described in 
subsection (a), each of the Secretaries shall take into consideration— 
(1) the extensive number of complaints from residents 
concerning aircraft noise; 
(2) the need for such military family housing; 
(3) the public safety concerns involved with respect to military 
aircraft flying over a highly populated, urban area; 
(4) the importance of maintaining facilities for the stationing 
of National Guard and other Reserve component units; 
stwQ'j:,! 
(5) the importance of maintaining facilities for the training of 
military aviation personnel; 
(6) the importance of maintaining facilities for the mainte-
nance of Army facilities and Army aircraft assigned to the 
California Army National Guard and the United States Army 
Reserve; 
(7) the importance of the Los Alamitos Armed Forces Reserve 
Center, California, as a designated relief site in the event of a 
national disaster or emergency; and 
(8) the costs associated with establishing and maintaining 
military family housing for the Navy at such Center. 
(c) RECOMMENDED ACTION.—If the Secretaries find that the Center 
described in subsection (a) would not be suitable for military family 
housing or that it should not be so used, they shall recommend, in 
the report transmitted to the Committees pursuant to subsection (d), 
an alternate course of action for reducing the noise caused by 
aircraft traffic between the Center and the training area in the 
Santa Ana Mountains. 
(d) DATE OF TRANSMITTAL.—The Secretaries described in subsec-
tion (a) shall transmit a copy of the findings and conclusions of the 
study carried out under this section to the Committees on Armed 
Services of the House of Representatives and the Senate. The trans-
missions shall be made no later than 90 days after the date of 
enactment of this Act. 
SEC. 2728. REAL ESTATE ACQUISITION REPORT 
'' 
^'V 
New Mexico. 
The Secretary of the Army shall, within 45 days of the date of the 
enactment of this Act, transmit to the Committees on Armed Serv-
ices of the Senate and the House of Representatives a real estate 
acquisition report for the lease of temporary facilities located in Rio 
Rancho, New Mexico, for the Hawk Missile Battalion of the New 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4045 
Mexico Army National Guard that is to be permanently located 
near Rio Rancho, New Mexico. 
PART D—REAL PROPERTY TRANSACTIONS 
SEC. 2731. LAND CONVEYANCE, FORT HUACHUCA, ARIZONA 
(a) AUTHORITY TO CONVEY.—The Secretary of the Army may 
convey to the State of Arizona all right, title, and interest of the 
United States in and to approximately 26 acres of real property (and 
improvements thereon) which comprise a portion of Fort Huachuca, 
Arizona, which border on State Highway 90 at Fort Huachuca, and 
which are located in the east half of Township 21 South, Range 20 
East, Gila and Salt River Meridian. 
(b) CONSIDERATION.—(1) In consideration for the conveyance au-
thorized by subsection (a), the State of Arizona shall convey to the 
United States all right, title, and interest of the State in and to 
1,536.47 acres of real property (and improvements thereon) owned 
by the State within the East Range at Fort Huachuca and to all 
mineral rights owned by the State in 12,943 acres of real property 
located within the East Range at Fort Huachuca. Title to such real 
property and mineral rights shall be conveyed free and clear of 
encumbrances and third party interests except to the extent waived 
by the Secretary. 
(2) If the fair market value of the real property and improvements 
conveyed by the Secretary under subsection (a) exceeds the fair 
market value of the real property and improvements and mineral 
interests conveyed to the United States under subsection (b), as 
determined by the Secretary, the State shall pay the difference to 
the United States. Any funds received under this section shall be 
covered into the general fund of the Treasury. 
(c) AUTHORITY TO SELL ADDITIONAL ACREAGE.—(1) In addition to 
the acreage authorized to be conveyed under subsection (a), the 
Secretary may sell, subject to paragraphs (2) and (3), all right, title, 
and interest of the United States in and to approximately 203 acres 
of real property and improvements thereon (designated by the 
Secretary) comprising a portion of Fort Huachuca, Arizona. 
(2) The sale of the real property and improvements referred to in 
paragraph (1) shall be conducted in accordance with competitive 
bidding procedures prescribed in section 2304 of title 10, United 
States Code. In no event may the real property and improvements 
be sold for less than the fair market value thereof. The fair market 
value of the property shall be established by an appraisal approved 
by the Secretary. 
(3) If the fair market value of the real property and improvements 
and mineral rights conveyed to the United States pursuant to 
subsection (b) exceeds the fair market value of the real property and 
improvements conveyed by the United States pursuant to subsection 
(a), the Secretary may use the proceeds of the sale under paragraph 
(1) to pay the difference in value to the State of Arizona. Any 
proceeds of the sale not used for such purpose shall be covered into 
the general fund of the Treasury. 
(d) LEGAL DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal descriptions of any property conveyed or acquired under this 
section shall be based upon surveys which are satisfactory to the 
Secretary. 
100 STAT. 4046 
PUBLIC LAW 99-661—NOV. 14, 1986 
(e) ADDITIONAL TERMS.—The Secretary may require such addi-
tional terms and conditions in connection with the transactions 
authorized by this section as the Secretary considers appropriate to 
protect the interests of the United States. 
SEC. 2732. LEASE AND DEVELOPMENT OF CERTAIN REAL PROPERTY, 
SAN DIEGO. CALIFORNIA 
(a) IN GENERAL.—Subject to subsections (b) through (g), the Sec-
retary of the Navy may— 
(1) enter into long-term leases of real property located within 
the Broadway Complex of the Department of the Navy, San 
.. 
Diego, California; and 
^" ' 
(2) assist any lessee of such real property in financing the 
construction of any facility on such real property. 
(b) CONSIDERATION.—(1)(A) In consideration for leasing the real 
property described in subsection (a), the Secretary shall obtain, 
without compensation or at substantially below market value, facili-
ties or the use of facilities, or both, constructed on such real prop-
erty by the lessees. 
(B) The Secretary shall provide that the value of the facilities or 
the use of facilities, or both, obtained under subparagraph (A) 
(minus the amount of any compensation paid by the Secretary for 
the facilities or use of them) shall be at least equal to the value of 
the use of the real property leased under subsection (a), as deter-
mined by the Secretary. 
(2) In consideration for assisting a lessee in financing the construc-
tion of any facility on such real property, the Secretary shall obtain 
an ownership interest in such facility that is at least equal in value 
to the amount of the financing provided by the Secretary. 
(c) CONDITIONS.—(1) The Secretary shall provide that any real 
property leased under this section shall be developed in accordance 
with detailed plans and terms of development which have been duly 
formulated by the Secretary and the San Diego community through 
the San Diego Association of Governments' Broadway Complex 
Coordinating Group. 
(2) A lease may not be entered into under this section until 21 
days after the Secretary submits a plan for the development of the 
real property described in subsection (a) to the Committees of the 
Armed Services of the Senate and the House of Representatives, 
including a justification of how this plan is more advantageous to 
the United States than developing the real property with Federal 
funds. 
(d) COMPETITIVE PROCEDURES.—Each lease entered into under 
subsection (a) shall be awarded through the use of competitive 
procedures. 
(e) RIGHT TO ACQUIRE.—The Secretary may provide that the 
United States shall have the right of first refusal to acquire all 
right, title, and interest in and to any facility constructed on the 
real property subject to such lease. 
(f) ADDITIONAL TERMS.—(1) A lease entered into by the Secretary 
under this section under which a facility is constructed by a private 
developer and leased to the Department of the Navy may provide for 
the operation and maintenance of such facility by the private 
developer. 
(2) The Secretary may require such additional terms and condi-
tions in connection with the leases authorized by this section as the 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4047 
Secretary considers appropriate to protect the interests of the 
United States, 
(g) LIMITATION.—The Secretary may obligate or expend amounts 
for— 
(1) assisting in financing under subsection (aX2); 
(2) obtaining facilities or the use of facilities under (b)(1)(A); or 
(3) acquiring interest in a facility under subsection (e), 
only to the extent funds have been appropriated for such purpose. 
SEC. 2733. SELECTION OF SITE FOR MILITARY FAMILY HOUSING AT 
SAN PEDRO, CALIFORNIA 
(a) IN GENERAL.—(1) The Secretary of the Air Force shall consider 
appropriate sites in San Pedro, California, for the location and 
construction of 170 military family housing units for members of the 
Air Force assigned to duty in the area of San Pedro. 
(2) The Secretary shall consider as an appropriate site for such 
housing only real property in the San Pedro area in which the 
United States has a reversionary interest for national defense pur-
poses or real property which would be conveyed to the United States 
without charge. 
(3) After the Secretary has selected one or more sites for such 
housing, he shall file a final environmental impact statement as 
required under the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.) on each site determined by the Secretary to be 
appropriate for the purpose stated in paragraph (1). Within 10 days 
after the expiration of the 30-day period referred to in section 
1506.10(bX2) of title 40 of the Code of Federal Regulations, the 
Secretary shall select as a site for the location of the housing units 
referred to in subsection (a) one of the sites considered appropriate 
for such purpose. 
(b) EXERCISE OF REVERSIONARY RIGHT.—(1) If the real property 
selected as the site for the housing units is subject to a reversionary 
right on behalf of the United States, the Secretary shall notify the 
Attorney General of the United States or other appropriate official 
that the site selected is needed for national defense purposes. 
(2) The Attorney General or other appropriate official shall, 
within 15 days after receiving the notification referred to in para-
graph (1), take such action as may be necessary to exercise the 
reversionary right held by the United States in the real property 
selected as the site for the housing. 
(3) Within 15 days after the United States resumes ownership over 
the real property, the Attorney General or other appropriate official 
shall transfer jurisdiction of such real property to the Secretary. 
(c) CONSTRUCTION OF MILITARY FAMILY HOUSING.—The Secretary 
shall use any real property made available pursuant to this section 
as the site for the construction of the 170 military family housing 
units referred to in subsection (a). 
SEC. 2734. GRANTING OF EASEMENTS AND REPLACEMENT OF FAMILY 
HOUSING UNITS AND OTHER FACILITIES AT MARINE CORPS 
AIR STATION, EL TORO, CALIFORNIA 
(a) AUTHORITY TO GRANT EASEMENTS.—Subject to subsection (b), 
the Secretary of the Navy may grant to the County of Orange, 
California, one or more easements through the Marine Corps Air 
Station, El Toro, California. 
(b) MANDATE TO REPLACE FAMILY HOUSING AND OTHER FACILI-
TIES.—(1) Subject to subsection (c), the Secretary shall provide for 
Real property. 
Defense and 
national 
security. 
,<.n-
100 STAT. 4048 
PUBLIC LAW 99-661—NOV. 14, 1986 
the replacement of all family housing units and other facilities that 
are to be demolished as a result of any easement granted under 
subsection (a). 
(2) An easement granted under subsection (a) shall not become 
effective until the Secretary determines that— 
(A) family housing units have been constructed to replace all 
the family housing units to be demolished as a result of such 
easement; and 
(B) such replacement units meet the applicable requirements 
specified in the agreements referred to in subsection (a). 
(3) Until the determination referred to in paragraph (2) is made, 
the Secretary shall continue to use, as military family housing, the 
housing units that are to be demolished as a result of an easement 
becoming effective. 
(c) ADDITIONAL TERMS AND CONDITIONS.—The Secretary 
may 
require such additional terms and conditions in connection with any 
easement granted under this section as the Secretary considers 
appropriate to protect the interests of the United States. 
(d) FUNDING.—(1) The Secretary may use not more than $2,300,000 
of the amount appropriated pursuant to section 2208(aK7)(A) for 
payment in connection with the construction of replacement family 
housing units required by subsection (b). 
(2) The Secretary may make available amounts for the construc-
tion of such replacement family housing units at the times specified 
in the agreements referred to in subsection (a). 
(3) The Secretary may not use any of the funds available for the 
purposes of this section for the replacement of facilities other than 
family housing facilities. 
SEC. 2735. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA 
(a) AUTHORITY TO SELL.—Subject to subsections (b) through (g), the 
Secretary of the Air Force may sell all or any portion of a tract of 
real property (together with improvements thereon), comprising a 
portion of March Air Force Base, California, known as West March 
and consisting of 845 acres, more or less. 
(b) CONDITIONS OF SALE.—The Secretary shall require as a condi-
tion of the sale of the property referred to in subsection (a) that the 
purchaser— 
(1) agree to construct on Government-owned real property at 
March Air Force Base, at the expense of the purchaser, in 
' 
accordance with standards and specifications prescribed by the 
Secretary, a noncommissioned officers professional education 
center, a band center, and an addition to, or an alteration of, a 
combat operations center; and 
(2) submit to the Secretary a master plan for the development 
of the real property referred to in subsection (a) that— 
(A) is consistent (as determined by the Secretary) with 
; 
. 
the Air Installations Compatible Use Zone recommenda-
'^^^ 
tions of the Air Force; 
(B) is consistent (as determined by the Secretary) with the 
t' c
^
) ' 
future plans of the Air Force for March Air Force Base and 
the plan for development of Air Force Village West; and 
'^C) is acceptable to the appropriate local government 
officials of the city and county of Riverside, California. 
" (c) COMPETITIVE BID REQUIREMENT; MINIMUM SALE PRICE.—(1) The 
sale of any of the real property and improvements referred to in 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4049 
subsection (a) shall be carried out under competitive contracting 
procedures. 
(2) In no event may property referred to in subsection (a) be sold 
for less than fair market value of such property. The value of the 
property to be conveyed and the consideration to be received shall 
be determined by appraisals approved by the Secretary. The Sec-
retary may pay for such appraisals from any deposit made by the 
prospective purchaser, or the Secretary may be reimbursed for the 
cost of such appraisals from any such deposit. Any portion of 
the deposit used for such purpose shall be nonrefundable. 
(d) REPORT REQUIREMENTS.—(1) The Secretary may not enter into 
any contract for the sale of any or all of the property referred to in 
subsection (a) unless— 
(A) the Secretary has submitted a report to the appropriate 
committees of Congress containing the information required in 
section 2667a(b) of title 10, United States Code; and 
(B) a period of 21 days has expired following the date on which 
the report referred to in such section is received by those 
committees. 
(2) Any report submitted under paragraph (1) shall include— 
(A) the price and a description of terms agreed to with the 
successful bidder; and 
(B) a description of the procedures used in selecting a buyer 
for the real property. 
(e) USE OF EXCESS FUNDS.—If the fair market value of the property 
to be conveyed to a purchaser is greater than the fair market value 
of the facilities to be constructed by the purchaser for the United 
States, the difference in cash shall be deposited into the general 
fund of the Treasury. 
(f) LEGAL DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal description of the real property to be conveyed under this 
section shall be determined by surveys approved by the Secretary. 
Such surveys shall be provided by the purchaser or paid for by the 
Secretary from a deposit made by the prospective purchaser at the 
time of award. Any portion of the deposit used for surveys shall be 
nonrefundable. 
(g) ADDITIONAL TERMS.—The Secretary may require such addi-
tional terms and conditions in connection with any transaction 
authorized by this section as the Secretary considers appropriate to 
protect the interests of the United States. 
SEC. 2736. LAND EXCHANGE, LONG BEACH NAVAL STATION, CALIFORNIA 
(a) AUTHORITY TO EXCHANGE.—Subject to subsections (b) through 
(d), the Secretary of the Navy may exchange approximately 16 acres 
of real property (and improvements thereon) adjacent to Admiral 
Kidd Park at the Long Beach Naval Station, California, to the City 
of Long Beach, California, for real property (and improvements 
thereon) located on Hill Street, between Webster Avenue and the 
Terminal Island Freeway, in Long Beach, California. 
(b) CONDITION.—If the fair market value of the real property and 
improvements conveyed to the City under subsection (a) exceeds the 
fair market value of the real property and improvements conveyed 
to the United States, the City shall pay to the United States an 
amount equal to the difference. The Secretary shall deposit any 
funds received under this subsection as miscellaneous receipts in the 
Treasury. 
Contracts. 
Reports. 
hxsnu) boiifi 
100 STAT. 4050 
PUBLIC LAW 99-661—NOV. 14, 1986 
f«ti(«iJnoD 
Flood control. 
National parks, 
monuments, etc. 
(c) LEGAL DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal description of the real property exchanged under this section 
shall be in accordance with surveys that are satisfactory to the 
Secretary. The costs of such surveys shall be borne by the City of 
Long Beach. 
(d) ADDITIONAL TERMS.—The Secretary may require such addi-
tional terms and conditions under this section as the Secretary 
considers appropriate to protect the interests of the United States. 
SEC. 2737. LAND CONVEYANCE, WHITTIER NARROWS DAM, LOS ANGELES 
COUNTY, CALIFORNIA 
(a) AUTHORITY TO CONVEY.—Subject to subsections (b) through (f), 
the Secretary of the Army may convey to Southern California 
Edison Company approximately 7.44 acres of real property, together 
with improvements thereon, located within the Whittier Narrows 
Flood Control Basin, north of Rush Street and east of Walnut Grove 
Avenue, in Los Angeles County, California. 
(b) 
CONSIDERATION.—In 
consideration 
for 
the 
conveyance 
authorized by subsection (a), the Secretary may accept real property 
in the Los Angeles area or cash, or both. The value of the consider-
ation for the conveyance may not be less than the fair market value 
of the property conveyed by the United States, as determined by the 
Secretary. 
(c) CONDITIONS.—(1) The Secretary may convey the real property 
described in subsection (a) only i
f
— 
(A) the Company grants the United States a perpetual ease-
ment that enables the Federal Government to carry out nec-
essary flood control activities with respect to such real property; 
and 
(B) the Company agrees to permit the County of Los Angeles 
to use a portion of such real property for parking in connection 
with recreation activities at Whittier Narrows Golf Course, as 
the Secretary considers appropriate. 
(d) USE OF FUNDS.—Any funds received by the Secretary under 
this section shall be deposited into the general fund of the Treasury. 
(e) LEGAL DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal description of the real property described in subsection (a) 
shall be determined by a survey which is satisfactory to the Sec-
retary. The cost of such survey shall be borne by the company. 
(0 ADDITIONAL TERMS.—The Secretary may require such addi-
tional terms and conditions under this section as the Secretary 
considers appropriate to protect the interests of the United States. 
SEC. 2738. AUTHORIZATION OF LAND CONVEYANCE TO CITY OF ARCADIA, 
CALIFORNIA 
(a) IN GENERAL.—Subject to subsection (b), the County of Los 
Angeles, California, may convey the land described in the Act 
entitled "An Act to convey certain land in the county of Los 
Angeles, State of California", approved March 24, 1933, to the City 
of Arcadia, California. 
(b) REVERTER.—Any land conveyed pursuant to subsection (a) shall 
be conveyed subject to the condition that the land be used only for 
public park, playground, or recreation purposes and that if the land 
is used for any other purpose, all right, title, and interest in and to 
such land shall revert to the United States and the United States 
shall have the immediate right of entry thereon. 
\'= '^^=' * ^ 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4051 
SEC. 2739. LAND EXCHANGE. ORLANDO, FLORIDA 
(a) IN GENERAL.—Subject to subsections (b) through (e), the Sec-
retary of the Army may convey to the City of Orlando, Florida, all 
right, title, and interest of the United States in and to a tract of real 
property located in Orlando, Florida, consisting of approximately 36 
acres, together with improvements thereon, comprising the United 
States Army Reserve training facility located at the former McCoy 
Air Force Base, Orlando, Florida. 
(b) CONSIDERATION.—In consideration for the conveyance by the 
Secretary under subsection (a), the City shall— 
(1) convey to the United States a tract of real property 
consisting of approximately 36 acres located at Orlando Jetport, 
Orlando, Florida; and 
(2) design, and construct on such real property, suitable 
replacement facilities, in accordance with the requirements of 
the Secretary, for the training activities of the United States 
Army Reserve. 
(c) PAYMENT BY THE CITY.—If the fair market value (as determined 
by the Secretary) of the real property and improvements conveyed 
by the United States to the City under subsection (a) exceeds the 
sum of the fair market value (as determined by the Secretary) of the 
property conveyed by the City to the United States and the fair 
market value of the facilities constructed by the City on the real 
property conveyed to the United States under subsection (b), the 
City shall pay to the United States an amount equal to the 
difference. 
(d) LEGAL DESCRIPTION OF THE REAL PROPERTY.—The exact acre-
ages and legal description of properties to be conveyed under subsec-
tions (a) and (b) shall be determined by surveys that are satisfactory 
to the Secretary. The cost of such surveys shall be borne by the City. 
(e) ADDITIONAL TERMS AND CONDITIONS.—The Secretary may 
require such additional terms and conditions under this section as 
the Secretary considers appropriate and to protect the interests of 
the United States. 
SEC. 2740. SALE 
OF 
LAND 
AND REPLACEMENT 
OF 
CERTAIN 
WAREHOUSING FACILITIES, KAPALAMA MILITARY RES-
ERVATION, HAWAII 
(a) IN GENERAL.—Subject to subsections (b) through (g), the Sec-
retary of the Army may convey approximately 14.41 acres of real 
property, together with improvements thereon, at Kapalama Mili-
tary 
Reservation, 
Hawaii, and may replace and relocate 
warehousing facilities located on such property. 
(b) CONSIDERATION.—In consideration for the real property and 
improvements described in subsection (a), the purchasers of such 
property and improvements shall pay the United States— 
(1) in a manner determined by the Secretary, for the cost of 
the 
design 
and construction 
of suitable 
replacement 
warehousing facilities to be constructed at Schofield Barracks, 
Hawaii; 
(2) for any cost incurred by the Department of the Army 
under this section with respect to the relocation of warehousing 
facilities; and 
(3) the amount of any difference referred to in subsection (d). 
(c) SALE AND REPLACEMENT ACTIVITIES.—The Secretary may use 
any amount received from the purchaser under paragraphs (1) and 
(2) of subsection (b) for the purpose of carrying out this section. 
100 STAT. 4052 
PUBLIC LAW 99-661—NOV. 14, 1986 
(d) PAYMENT OF EXCESS INTO TREASURY.—If the fair market value 
of the real property and improvements described in subsection (a) 
exceeds the costs described in paragraphs (1) and (2) of subsection 
(b), as determined by the Secretary, the purchaser shall pay the 
amount of such difference to the Secretary, and the Secretary shall 
deposit such amount into the Treasury as miscellaneous receipts. 
(e) COMPETITIVE BID PROCEDURES.—The conveyance described in 
subsection (a) shall be carried out under competitive bid procedures. 
(f) LEGAL DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal description of the real property described in subsection (a) 
shall be determined by a survey which is satisfactory to the Sec-
retary. The cost of the survey shall be borne by the purchaser. 
(g) ADDITIONAL TERMS.—The Secretary may require such addi-
tional terms and conditions under this section as the Secretary 
considers appropriate to protect the interests of the United States. 
SEC. 2741. LAND EXCHANGE, AIEA, HAWAII 
(a) IN GENERAL.—The Secretary of the Navy may transfer to the 
United States Postal Service jurisdiction over approximately 3.2 
acres of real property, together with improvements thereon, located 
in Aiea, Hawaii, if the Postal Service pays to the Secretary, out of 
funds available to the Postal Service for obligation, an amount equal 
to the greater of the following: 
(1) The approved fair market value of the property over which 
jurisdiction is to be transferred 
(as determined by the 
Secretary). 
(2) The cost of providing fleet laundry and dry cleaning 
facilities to the Navy to replace facilities located on the real 
property over which jurisdiction is to be transferred pursuant to 
this section. 
(b) LEGAL DESCRIPTION OF REAL PROPERTY.—The exact acreage and 
legal description of the real property over which jurisdiction is to be 
transferred under this section shall be determined by surveys that 
are satisfactory to the Secretary. The cost of the surveys shall be 
borne by the Postal Service. 
(c) ADDITIONAL TERMS.—(1) The Secretary may require such addi-
tional terms and conditions under this section as the Secretary 
considers appropriate to protect the interest of the United States. 
(2) If the fair market value of the property over which jurisdiction 
is to be transferred to the Postal Service under subsection (a 
exceeds the cost of the replacement fleet laundry and dry cleaning 
facilities, the Secretary shall deposit the excess into the general 
fund of the Treasury. 
SEC. 2742. LAND EXCHANGE, SANTA FE, NEW MEXICO 
(a) AUTHORITY TO CONVEY.—(1) Subject to paragraph (4) of this 
subsection and to subsections (b) through (f), the Secretary of 
the Army may make the conveyances described in paragraphs (2) 
and (3). 
(2) The Secretary may convey to the City of Santa Fe, New Mexico 
(hereinafter in this section referred to as the "City"), all right, title, 
and interest of the United States in and to the southernmost 27.88 
acres, more or less, of the parcel of land conveyed to the State of 
New Mexico in accordance with the Act of June 19, 1956 (70 Stat. 
296) and currently being leased to the City as a public park. 
(3) The Secretary may convey to the New Mexico State Armory 
Board (hereinafter in this section referred to as the "Board"), all 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4053 
right, title, and interest of the United States in and to the northern-
most 21.61 acres, more or less, of the parcel of land conveyed to the 
State of New Mexico in accordance with the Act of June 19, 1956 (70 
Stat. 296), and currently serving as the location of the State head-
quarters of the New Mexico National Guard. 
(4) Except as provided in subsection (f)(2), the conveyances 
authorized in paragraphs (2) and (3) shall be made without re-
imbursement to the United States. 
(b) CONDITIONS.—The lands conveyed by the Secretary under 
subsection (a) shall be subject to the following conditions: 
(1) The City shall, in accordance with the agreement entered 
into under subsection (d), provide to the Board a site of not less 
than 250 acres determined by the Board to be acceptable for the 
construction o
f
— 
(A) an armory for all New Mexico National Guard units 
located in Santa Fe, New Mexico; 
(B) an organizational maintenance shop; 
^ 
(C) a United States property and fiscal office building and 
warehouse; 
, 
(D) a headquarters complex for the New Mexico National 
Guard; 
*''"'" 
(E) a local training area for the New Mexico National 
Guard units; 
(F) a complex for the New Mexico Army National Guard 
officer candidate school and noncommissioned officer acad^ 
. 
. .... 
e m y ; a n d 
x.^. ,r , -
(G) additional facilities specified by the National Guard 
Bureau or the New Mexico State Armory Board. 
(2) The Board shall use the land provided to it by the City 
pursuant to paragraph (1) for the training and support of the 
National Guard of New Mexico, and for other military purposes 
and if the site ever ceases to be used for such purposes, all right, 
title, and interest in and to such property shall revert to and 
become the property of the United States which shall have the 
immediate right of entry thereon. 
(c) MINERAL RIGHTS.—The conveyances made by the Secretary 
under subsection (a) shall reserve all mineral rights, including oil 
and gas, to the United States in accordance with the Act of June 19, 
1956 (70 Stat. 296). 
(d) GENERAL AUTHORITY.—To implement the land exchange 
authorized by this section, the Secretary may enter into agreements 
with the City, the Board, and such other parties the Secretary 
determines are necessary to effectuate the purpose of this section. 
(e) LEGAL DESCRIPTION OF LANDS.—The exact acreage and legal 
description of the lands provided by the City to the Board in 
accordance with subsection (b) shall be determined by surveys that 
are satisfactory to the Secretary. The cost of such surveys shall be 
borne by the City or the Board. 
(f) ADDITIONAL TERMS AND CONDITIONS.—(1) The Secretary 
may 
require such other terms and conditions with respect to the trans-
action authorized by this section as the Secretary considers appro-
priate to protect the interests of the United States. 
(2) The terms and conditions described in paragraph (1) may 
include a requirement for payment to the United States by the City 
or the Board, or both, to the extent (if any) that the value of the 
property conveyed by the United States pursuant to subsection (a) 
100 STAT. 4054 
PUBLIC LAW 99-661—NOV. 14, 1986 
exceeds the value of the property conveyed to the Board pursuant to 
subsection (b). 
SEC. 2743. LEASE OF PROPERTY AT THE NAVAL WEAPONS STATION, 
CHARLESTON, SOUTH CAROLINA 
(a) I N GENERAL.—The Secretary of the Navy may lease to the 
South Carolina Ports Authority approximately 118 acres of real 
property, together with improvements thereon, at the Naval Weap-
ons Station, Charleston, South Carolina. 
(b) TERM OF LEASE.—The lease entered into under subsection (a) 
may be for such term as the Secretary determines appropriate, but 
in no event to exceed 25 years. 
(c) CONSIDERATION.—In addition to the fair rental value to be paid 
by the South Carolina Ports Authority for the premises leased 
pursuant to this section, such Authority shall pay for the cost of 
replacing certain facilities on the leased premises. The replacement 
facilities shall be constructed in a manner and at a site determined 
by the Secretary. 
(d) AUTHORITY T O DEMOUSH AND CONSTRUCT FACILITIES.—The Sec-
retary may, under the terms of the lease, authorize the South 
Carolina Ports Authority to demolish existing facilities on the leased 
land and to construct new facilities on such land for the use of such 
Authority. 
SEC. 2744. PROPERTY MANAGEMENT 
Maryland. 
In accordance with the provisions of section 202 of the Federal 
Property and Administrative Services Act of 1949 (40 U.S.C. 483) 
governing transfers of excess property, the Administrator of Gen-
eral Services shall transfer, without reimbursement, to the Sec-
retary of the Army approximately 235 acres of real property (and 
improvements thereon) near Beltsville, Maryland, for such use as 
the Secretary of the Army considers appropriate. 
DIVISION C—OTHER NATIONAL DEFENSE 
_,_^^^ 
AUTHORIZATIONS 
SEC. 3001. TABLE OF CONTENTS 
*, '.' 7^^.'., .1 . , /V 
^ 
, , 
The table of contents for this division is as follows: !' .'. 
. 
''\ ' 
TABLE OF CONTENTS 
Sec. 300L Table of contents. 
TITLE I—DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS 
Sec. 3101. Short title. 
PART A—NATIONAL SECURITY PROGRAMS AUTHORIZATIONS 
-i 
, ;; 
Sec. 3111. Operating expenses. 
* ' 
'*, 
Sec. 3112. Plant and capital equipment. 
' ' 
•' 
Sec. 3113. Authorization for Strategic Defense Initiative activities 
PART B—RECURRING GENERAL PROVISIONS 
Sec. 3121. Reprogramming. 
' 
--^ 
Sec. 3122. Limits on general plant projects. 
.-j 
'•;- 
. 
,•> 
•'•-•, 
Sec. 3123. Limits on construction projects. 
. 
,. . 
' 
. 
, , • , , , , , 
Sec. 3124. Fund transfer authority. 
Sec. 3125. Authority for construction design. 
Sec. 3126. Authority for emergency construction design. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4055 
Sec. 3127. Funds available for all national security programs of the Department of 
Energy. 
Sec. 3128. Adjustments for pay increases. 
Sec. 3129. Availability of funds. 
PART C—MISCELLANEOUS PROVISIONS 
Protection of sensitive technical information. 
Restriction on use of funds to pay penalties under environmental laws. 
Community assistance payments. 
Authority for Department of Energy contractor employees to carry fire-
arms beyond boundaries of a DOE facility. 
Report on containment facilities. 
Study of production reactor safety. 
Establishment of Nuclear Weapons Council. 
Extension of date for certain contract authority. 
Sec. 
3131. 
Sec. 
3132. 
Sec. 
3133. 
Sec. 
3134. 
Sec. 
3135. 
Sec. 
3136. 
Sec. 
3137. 
Sec. 
3138. 
^~ 
Sec. 3201. 
Sec. 3202. 
TITLE II—NATIONAL DEFENSE STOCKPILE 
Extension of prohibition on reductions in stockpile goals. 
Designation of National Defense Stockpile Manager. 
Sec. 3203. Extension of uses of Stockpile Transaction Fund and codification 
revolving fund provisions. 
Authorizated disposals from National Defense Stockpile. 
of 
Sec. 3204. 
Sec. 3205. 
Sec. 3206. 
Sec. 3207. 
Conversion of chromium and manganese ore to high carbon ferrochro-
mium and high carbon ferromanganese. 
Report on war emergency situations and mobilization requirements. 
Miscellaneous technical amendments. 
TITLE III—CIVIL DEFENSE 
Sec. 3301. Authorization of appropriations for civil defense functions. 
TITLE I—DEPARTMENT OF ENERGY NATIONAL SECURITY 
PROGRAMS 
SEC. 3101. SHORT TITLE 
This title may be cited as the "Department of Energy National 
Security and Military Applications of Nuclear Energy Authorization 
Act of 1987". 
Department of 
E n e r ^ National 
Security and 
Military 
Applications of 
Nuclear Energy 
Authorization 
Act of 1987. 
PART A—NATIONAL SECURITY PROGRAMS AUTHORIZATIONS 
SEC. a m . OPERATING EXPENSES 
Funds are authorized to be appropriated to the Department of 
Energy for fiscal year 1987 for operating expenses incurred in 
carrying out national 
security 
programs (including 
scientific 
research and development in support of the Armed Forces, strategic 
and critical materials necessary for the common defense, and mili-
tary applications of nuclear energy and related management and 
support activities) as follows: 
(1) For weapons activities, $3,300,879,000 to be allocated as 
follows: 
(A) For research and development, $866,000,000, of which 
$13,000,000 shall be used to continue operation or to close 
out plasma separation process activities. 
(B) For weapons testing, $517,800,000. 
(C) For production and surveillance, $1,859,700,000. 
\ 
(D) For program direction, $57,379,000. 
(2) For the defense inertial confinement fusion program 
: 
$145,000,000. 
(3) For verification and control technology, $95,390,000. 
T n^.^*-c::
100 STAT. 4056 
PUBLIC LAW 99-661—NOV. 14, 1986 
(4) For defense nuclear materials production, $1,516,348,000, 
to be allocated as follows: 
(A) For 
uranium 
enrichment 
for 
naval 
reactors, 
$170,000,000. 
(B) For other uranium enrichment, $14,500,000. 
(C) For production reactor operations, $586,320,000. 
(D) For processing of defense nuclear materials, including 
^ ^ naval reactors fuel, $489,000,000, of which $70,900,000 shall 
be used for special isotope separation. 
(E) For supporting services, $234,200,000. 
(F) For program direction, $22,328,000. 
(5) For defense nuclear waste and byproduct management, 
$431,990,000, to be allocated as follows: 
(A) For interim waste management, $309,945,000. 
(B) For 
long-term 
waste 
management 
technology, 
$80,605,000. 
(C) For terminal waste storage, $39,100,000. 
(D) For program direction, $2,340,000. 
(6) For nuclear materials safeguards and security technology 
.development program, $60,408,000. 
(7) For security investigations, $33,300,000. 
(8) For naval reactors development, $516,505,000. 
SEC. 3112. PLANT AND CAPITAL EQUIPMENT 
(a) AUTHORIZATIONS.—Funds are authorized to be appropriated to 
the Department of Energy for fiscal year 1987 for plant and capital 
equipment (including maintenance, restoration, planning, construc-
^ 
, t 
'; tion, acquisition, modification of facilities, and the continuation of 
projects authorized in prior years, land acquisition related thereto, 
and acquisition and fabrication of capital equipment not related to 
construction) necessary for national security programs as follows: 
.^' 
(1) For weapons activities: 
\ " 
Project 87-D-lOl, general plant projects, various loca-
'• 
tions, $29,000,000. 
Project 87-D-104, safeguards and security enhancements, 
phase II, Lawrence Livermore National Laboratory, Liver-
' ' more, California, $2,000,000. 
Project 87-D-121, general plant projects, various loca-
tions, $30,000,000. 
Project 87-D-123, protective clothing decontamination 
facility. Rocky Flats Plant, Golden, Colorado, $500,000. 
Project 87-D-127, environmental, safety and health 
upgrade. Mound Plant, Miamisburg, Ohio, $2,400,000. 
Project 
87-D-130, 
receiving 
and 
shipping 
facility, 
Pinellas Plant, St. Petersburg, Florida, $300,000. 
Project 86-D-103, decontamination and waste treatment 
-' 
facility, Lawrence Livermore National Laboratory, Liver-
more, California, $5,300,000, for a total project authoriza-
tion of $9,000,000. 
' ^ 
Project 86-D-104, strategic defenses facility, Sandia Na-
tional Laboratories, Albuquerque, New Mexico, $13,000,000, 
for a total project authorization of $17,000,000. 
Project 86-D-105, instrumentation systems laboratory, 
Sandia National Laboratories, Albuquerque, New Mexico, 
• - 
$5,800,000, for a total project authorization of $12,000,000. 
Project 
86-D-106, 
laboratory 
data 
communications 
center, Los Alamos National Laboratory, Los Alamos, New 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4057 
Mexico, $12,000,000, for a total project authorization of 
$15,000,000. 
Project 86-D-122, structural upgrade of existing pluto-
nium facilities, Rocky Flats Plant, Golden, Colorado, 
$2,420,000, for a total project authorization of $5,420,000. 
Project 86-D-123, environmental hazards elimination, 
various locations, $15,000,000, for a total project authoriza-
tion of $23,700,000. 
Project 86-D-124, safeguards and site security upgrading. 
Phase II, Mound Plant, Miamisburg, Ohio, $1,880,000, for a 
total project authorization of $4,880,000. 
Project 86-D-125, safeguards and site security upgrade, 
Phase II, Pantex Plant, Amarillo, Texas, $8,410,000, for a 
total project authorization of $9,910,000. 
Project 86-D-130, tritium loading facility replacement, 
Savannah River Plant, Aiken, South Carolina, $29,700,000. 
for a total project authorization of $34,700,000. 
Project 85-D-102, nuclear weapons research, develop-
ment, and testing facilities revitalization, Phase I, various 
locations, $14,085,000, for a total project authorization of 
$114,885,000. 
Project 85-D-103, safeguards and security enhancements, 
Lawrence Livermore National Laboratory and Sandia 
National Laboratories, Livermore, California, $6,500,000, 
for a total project authorization of $27,600,000. 
Project 85-D-105, combined device assembly facility, 
Nevada Test Site, Las Vegas, Nevada, $7,400,000, for a total 
project authorization of $22,000,000. 
Project 85-D-106, hardened engineering test building, 
Lawrence Livermore National Laboratory, Livermore, 
California, $330,000, for a total project authorization of 
$3,030,000. 
Project 85-D-112, enriched uranium recovery improve-
ments, Y-12 Plant, Oak Ridge, Tennessee, $19,000,000, for a 
total project authorization of $38,800,000. 
Project 85-D-113, power plant and steam distribution 
system, Pantex Plant, Amarillo, Texas, $1,790,000, for a 
total project authorization of $24,790,000. 
Project 85-D-115, renovate plutonium building utility 
systems. Rocky Flats Plant, Golden, Colorado, $13,440,000, 
for a total project authorization of $34,040,000. 
Project 85-D-121, air and water pollution control facili-
ties, Y-12 Plant, Oak Ridge, Tennessee, $9,160,000, for a 
total project authorization of $28,160,000. 
Project 85-D-125, tactical bomb production facilities, var-
ious locations, $12,800,000, for a total project authorization 
of $28,800,000. 
Project 84-D-102, radiation-hardened integrated circuit 
laboratory, Sandia National Laboratories, Albuquerque, 
New Mexico, $3,000,000, for a total project authorization of 
$40,500,000. 
Project 84-D-107, nuclear testing facilities revitalization, 
various locations, $13,300,000, for a total project authoriza-
tion of $79,240,000. 
Project 84-D-112, Trident II warhead production facili-
ties, various locations, $14,500,000, for a total project 
authorization of $155,200,000. 
100 STAT. 4058 
PUBLIC LAW 99-661—NOV. 14, 1986 
Project 84-D-124, environmental improvements, Y-12 
Plant, Oak Ridge, Tennessee, $9,280,000, for a total 
authorization of $38,280,000. 
•'* 
Project 84-D-211, safeguards and site security upgrading, 
• ' Y-12 Plant, Oak Ridge, Tennessee, $27,220,000, for a total 
• 
project authorization of $40,220,000. 
Project 82-D-107, utilities and equipment restoration, 
replacement, and upgrade, Phase III, various locations, 
$97,904,000, for a total project authorization of $838,304,000. 
Project 82-D-144, simulation technology 
laboratory, 
Sandia National Laboratories, Albuquerque, New Mexico, 
$6,000,000, for a total project authorization of $40,000,000. 
(2) For materials production: 
Project 87-D-146, general plant projects, various loca-
"..,J\'.,, tions, $31,980,000. 
Project 87-D-149, reduced chemical discharges to process 
jj- 
sewers, Richland, Washington, $3,150,000. 
..." ,^ 
Project 87-D-i50, radioactive liquid effluent treatment 
facility, 
partial 
design 
only, 
Richland, 
Washington, 
' $4,000,000. 
Project 87-D-152, environmental protection plantwide, 
..., .' 
Savannah River, South Carolina, $1,500,000. 
., .'i 
Project 87-D-159, environmental, health, and safety 
improvements, Phase I, Feed Materials Production Center, 
Fernald, Ohio, $10,000,000. 
Project 86-D-149, productivity retention program. Phases 
I and II, various locations, $42,625,000, for a total project 
::. . authorization of $66,825,000. 
, •.. 
. 
Project 86-D-150, in-core neutron monitoring system, N 
. . 
reactor, Richland, Washington, $2,760,000, for a total 
project authorization of $7,220,000. 
' - 
Project 86-D-151, PUREX electrical system upgrade, 
Richland, Washington, $2,480,000, for a total project 
authorization of $4,980,000. 
Project 86-D-152, reactor electrical distribution system. 
Savannah River, South Carolina, $5,410,000, for a total 
project authorization of $7,410,000. 
• 
Project 86-D-153, additional line III furnace. Savannah 
' ' ' ' 
River, South Carolina, $7,605,000, for a total project 
authorization of $9,105,000. 
' ^ 
Project 86-D-154, effluent treatment facility. Savannah 
River, South Carolina, $15,650,000, for a total project 
authorization of $18,150,000. 
''. 
Project 86-D-156, plantwide safeguards systems, Savan-
'^ ' 
nah River, South Carolina, $8,550,000, for a total project 
authorization of $11,550,000. 
''- 
' 
Project 85-D-139, fuel processing restoration, Idaho Fuels 
,3.5p: 
Processing Facility, Idaho National Engineering Labora-
tory, Idaho, $32,430,000, for a total project authorization of 
$54,430,000. 
Project 85-D-140, productivity and radiological improve-
ments. Feed Materials Production Center, Fernald, Ohio, 
$21,000,000, for a total project authorization of $39,000,000. 
Project 85-D-145, fuel production facility. Savannah 
River, South Carolina, $27,500,000, for a total project 
authorization of $53,300,000. 
as- 0 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4059 
'•'• Project 84-D-134, safeguards and security improvements, 
plantwide, Savannah River, South Carolina, $7,515,000, for 
a total project authorization of $34,415,000. 
Project 84-D-135, process facility modifications, Rich-
land, Washington, $24,475,000, for a total project authoriza-
tion of $56,975,000. 
Project 84-D-136, enriched uranium conversion facility 
modifications, 
Y-12 
Plant, 
Oak 
Ridge, 
Tennessee, 
$1,000,000, for a total project authorization of $20,600,000. 
Project 82-D-124, restoration of production capabilities, 
^hases II, III, IV, and V, various locations, $3,511,000, for a 
total project authorization of $352,045,000. 
'3) For defense waste and byproducts management: 
Project 87-D-171, general plant projects, interim waste 
operations and long-term waste management technology, 
various locations, $24,535,000. 
Project 87-D-172, WESF K-3 filter upgrade, Richland, 
Washington, $500,000. 
Project 87-D-173, 242-A evaporator crystallizer upgrade, 
Richland, Washington, $2,800,000. 
Project 87-D-174, 241-AQ tank farm, Richland, Washing-
ton, $2,100,000. 
Project 87-D-175, steam system rehabilitation, Phase I, 
Richland, Washington, $900,000. 
Project 87-D-177, test reactor area liquid radioactive 
waste cleanup system. Phase III, Idaho National Engineer-
ing Laboratory, Idaho, $700,000. 
Project 87-D-180, burial ground expansion, Savannah 
River, South Carolina, $2,000,000. 
Project 87-D-181, diversion box and pump pit contain-
ment buildings, Savannah River, South Carolina, $960,000. 
Project 86-D-172, B-plant F-filter, Richland, Washington, 
$2,949,000, for a total project authorization of $3,949,000. 
Project 86-D-174, low-level waste processing and ship-
ping system. Feed Materials Production Center, Fernald, 
Ohio, $8,072,000, for a total authorization of $10,572,000. 
Project 86-D-175, Idaho National Engineering Labora-
tory security upgrade, Idaho National Engineering Labora-
tory, Idaho, $5,258,000, for a total project authorization of 
$7,258,000. 
Project 85-D-158, central warehouse upgrade, Richland, 
Washington, $1,044,000, for a total project authorization of 
$6,744,000. 
Project 85-D-159, new waste transfer facilities, Savannah 
River, South Carolina, $4,118,000, for a total project 
authorization of $24,118,000. 
Project 85-D-160, test reactor area security system 
upgrade, Idaho National Engineering Laboratory, Idaho, 
$2,703,000, for a total project authorization of $6,953,000. 
Project 81-T-105, defense waste processing facility, 
Savannah River, South Carolina, $123,967,000. for a total 
project authorization of $721,467,000. 
(4) For naval reactors development: 
Project 87-N-lOl, general plant projects, various loca-
tions, $4,800,000. 
100 STAT. 4060 
PUBLIC LAW 99-661—NOV. 14, 1986 
, 
, 
Project 87-N-102, Kesselring site facilities upgrade, 
Knolls Atomic Power Laboratory, West Milton, New York, 
$5,000,000. 
Project 
87-N-103, computation 
laboratory 
addition, 
. ;~ 
Bettis Atomic Power Laboratory, West Mifflin, Pennsylva-
nia, $2,300,000. 
(5) For verification and control technology: 
j 
Project 85-D-171, Space Science Laboratory, Los Alamos, 
New Mexico, $2,000,000, for a total project authorization of 
:;y 
$7,500,000. 
(6) For capital equipment not related to construction: 
(A) For weapons activities, $278,000,000. 
(B) For the defense inertial confinement fusion program, 
, 
$9,000,000. 
^^^'VA 
^^^ p^^ materials production, $107,200,000. 
Y; ' 
(D) poj. defense waste and byproducts management, 
$35,505,000. 
• 
(E) For verification and control technology, $4,200,000. 
(F) For nuclear safeguards and security, $4,800,000. 
(G) For naval reactors development, $49,200,000. 
(b) REDUCTION IN AMOUNT FOR PRIOR PROJECT.—The amount pre-
viously authorized for Project 84-D-113, Antisubmarine Warfare/ 
Standoff Weapon Warhead production facilities, various locations, is 
hereby reduced by $5,000,000, for a total project authorization of 
$5,000,000. Not more than $5,000,000 of the funds authorized for 
such project in fiscal year 1986 may be obligated or expended for 
such project. 
SEC. 3113. AUTHORIZATION 
FOR 
STRATEGIC 
DEFENSE 
INITIATIVE 
ACTIVITIES 
Of the amounts authorized to be appropriated in sections 3111 and 
3112, $317,000,000 is authorized for programs, projects, and activities 
of the Department of Energy relating to the Strategic Defense 
Initiative. 
PART B—RECURRING GENERAL PROVISIONS 
SEC. 3121. REPROGRAMMING 
(a) NOTICE TO CONGRESS.—(1) Except as otherwise provided in this 
title— 
(1) no amount appropriated pursuant to this title may be used 
for any program in excess of 105 percent of the amount 
' authorized for that program by this title or $10,000,000 more 
J 
than the amount authorized for that program by this title, 
whichever is the lesser, and 
(2) no amount appropriated pursuant to this title may be used 
for any program which has not been presented to, or requested 
of, the Congress, 
unless a period of 30 calendar days (not including any day on which 
either House of Congress is not in session because of adjournment of 
more than three calendar days to a day certain) has passed after 
receipt by the Committees on Armed Services and Appropriations of 
the Senate and House of Representatives of notice from the Sec-
retary of Energy (hereinafter in this part referred to as the "Sec-
retary") containing a full and complete statement of the action 
proposed to be taken and the facts and circumstances relied upon in 
support of such proposed action, or unless each such committee 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4061 
before the expiration of such period has transmitted to the Sec-
retary written notice to the effect that such committee has no 
objection to the proposed action. 
(b) LIMITATION ON AMOUNT OBLIGATED.—In no event may the total 
amount of funds obligated pursuant to this title exceed the total 
amount authorized to be appropriated by this title. 
SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS 
(a) IN GENERAL.—The Secretary may carry out any construction 
project under the general plant projects provisions authorized by 
this title if the total estimated cost of the project does not exceed 
$1,200,000. 
(b) REPORT TO CONGRESS.—If, at any time during the construction 
of any general plant project authorized by this title, the estimated 
cost of the project is revised because of unforeseen cost variations 
and the revised cost of the project exceeds $1,200,000, the Secretary 
shall immediately furnish to the appropriate committees of Con-
gress a complete report explaining the reasons for the cost variation. 
SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS 
(a) IN GENERAL.—Whenever the current estimated cost of a 
construction project which is authorized by section 3112 of this title, 
or which is in support of national security programs of the Depart-
ment of Energy and was authorized by any previous Act, exceeds by 
more than 25 percent the higher of— 
(1) the amount authorized for the project; or 
(2) the amount of the total estimated cost for the project as 
shown in the most recent budget justification data submitted to 
Congress, 
construction may not be started or additional obligations incurred in 
connection with the project above the total estimated cost, as the 
case may be, unless a period of 30 calendar days (not including any 
day on which either House of Congress is not in session because of 
adjournment of more than three calendar days to a day certain) has 
passed after receipt by the Committees on Armed Services and 
Appropriations of the Senate and House of Representatives of notice 
from the Secretary of Energy containing a full and complete state-
ment of the action proposed to be taken and the facts and cir-
cumstances relied upon in support of such proposed action, or unless 
each such committee before the expiration of such period has 
transmitted to the Secretary written notice to the effect that such 
committee has no objection to the proposed action. 
(b) EXCEPTION.—Subsection (a) shall not apply to any construction 
^^^* 
project which has a current estimated cost of less than $5,000,000. 
., : 
SEC. 3124. FUND TRANSFER AUTHORITY 
To the extent specified in appropriation Acts, funds appropriated 
pursuant to this title may be transferred to other agencies of the 
Government for the performance of the work for which the funds 
were appropriated. Funds so transferred may be merged with the 
appropriations of the agency to which the funds are transferred. 
SEC. 3125. AUTHORITY FOR CONSTRUCTION DESIGN 
(a) IN GENERAL.—(1) Within the amounts authorized by this title 
for plant engineering and design, the Secretary may carry out 
advance planning and construction designs (including architectural 
and engineering services) in connection with any proposed construe-
100 STAT. 4062 
PUBLIC LAW 99-661—NOV. 14, 1986 
Defense and 
national 
security. 
tion project if the total estimated cost for such planning and design 
does not exceed $2,000,000. 
(2) In any case in which the total estimated cost for such planning 
and design exceeds $300,000, the Secretary shall notify the Commit-
tees on Armed Services and Appropriations of the Senate and House 
of Representatives in writing of the details of such project at least 30 
days before any funds are obligated for design services for such 
project. 
(b) SPECIFIC AUTHORITY REQUIRED.—In any case in which the total 
estimated cost for advance planning and construction design in 
connection with any construction project exceeds $2,000,000, funds 
for such design must be specifically authorized by law. 
SEC. 3126. AUTHORITY FOR EMERGENCY CONSTRUCTION DESIGN '^ 
In addition to the advance planning and construction design 
authorized by section 3112, the Secretary may perform planning and 
design utilizing available funds for any Department of Energy 
defense activity construction project whenever the Secretary deter-
mines that the design must proceed expeditiously in order to meet 
the needs of national defense or to protect property or human life. 
SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS 
OF THE DEPARTMENT OF ENERGY 
Subject to the provisions of appropriation Acts, amounts appro-
priated pursuant to this title for management and support activities 
and for general plant projects are available for use, when necessary, 
in connection with all national security programs of the Department 
of Energy. 
SEC. 3128. ADJUSTMENTS FOR PAY INCREASES 
Appropriations authorized by this title for salary, pay, retirement, 
or other benefits for Federal employees may be increased by such 
amounts as may be necessary for increases in such benefits 
authorized by law. 
^,, ,j, ., | | , 
SEC. 3129. AVAILABILITY OF FUNDS 
When so specified in an appropriation Act, amounts appropriated 
for "Operating Expenses" or for "Plant and Capital Equipment" 
may remain available until expended. 
PART C—MISCELLANEOUS PROVISIONS 
42 u s e 7261a. 
SEC. 3131. PROTECTION OF SENSITIVE TECHNICAL INFORMATION 
Contracts. 
(a) PROPERTY RiGHTS IN INVENTIONS AND DISCOVERIES.—Whenever 
any contractor makes an invention or discovery to which the title 
vests in the Department of Energy pursuant to exercise of section 
202(a) (ii) or (iv) of title 35, United States Code, or pursuant to 
section 152 of the Atomic Energy Act of 1954 (42 U.S.C. 2182) or 
section 9 of the Federal Nonnuclear Energy Research and Develop-
ment Act of 1974 (42 U.S.C. 5908) in the course of or under any 
Government contract or subcontract of the Naval Nuclear Propul-
sion Program or the nuclear weapons programs or other atomic 
energy defense activities of the Department of Energy and the 
contractor requests waiver of any or all of the Government's prop-
erty rights, the Secretary of Energy may decide to waive the Govern-
ment's rights and assign the rights in such invention or discovery. 
Such decision shall be made within a reasonable time (which shall 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4063 
usually be six months from the date of the request by the contractor 
for assignment of such rights). 
(b) MATTERS TO BE CONSIDERED.—In making a decision under this 
section, the Secretary shall consider, in addition to the applicable 
policies of section 152 of the Atomic Enerf^^ Act of 1954 (42 U.S.C. 
2182) or subsections (c) and (d) of section 9 of the Federal Non-
nuclear Energy Research and Development Act of 1974 (42 U.S.C. 
5908)— 
(1) whether national security will be compromised; 
(2) whether sensitive technical information (whether classi-
fied or unclassified) under the Naval Nuclear Propulsion Pro-
gram or the nuclear weapons programs or other atomic energy 
defense activities of the Department of Energy for which 
dissemination is controlled under Federal statutes and regula-
tions will be released to unauthorized persons; 
(3) whether an organizational conflict of interest con-
templated by Federal statutes and regulations will result; and 
(4) whether failure to assert such a claim will adversely affect 
the operation of the Naval Nuclear Propulsion Program or the 
nuclear weapons programs or other atomic energy defense 
activities of the Department of Energy. 
SEC. 3132. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES UNDER 
ENVIRONMENTAL LAWS 
(a) RESTRICTION.—Funds appropriated to the Department of 
Energy for the Naval Nuclear Propulsion Program or the nuclear 
weapons programs or other atomic energy defense activities of the 
Department of Energy may not be used to pay a penalty, fine, or 
forfeiture in regard to a defense activity or facility of the Depart-
ment of Energy due to a failure to comply with any environmental 
requirement. 
(b) EXCEPTION.—Subsection (a) shall not apply with respect to an 
environmental requirement i
f
— 
(1) the President fails to request funds for compliance with 
the environmental requirement; or 
(2) the Congress has appropriated funds for such purpose (and 
such funds have not been sequestered, deferred, or rescinded) 
and the Secretary of Energy fails to use the funds for such 
purpose. 
SEC. 3133. COMMUNITY ASSISTANCE PAYMENTS 
Section 1532 of the Department of Energy National Security and 
Military Applications of Nuclear Energy Authorization Act of 1986 
(title XV of Public Law 99-145; 99 Stat. 773) is amended by adding at 
the end the following new subsection: 
"(d) RULE OF CONSTRUCTION.—The authority of the Secretary of 
Energy under subsection (a) to provide a final financial settlement 
with Anderson County and Roane County, Tennessee, and with the 
City of Oak Ridge, Tennessee, and terminate all annual assistance 
payments made to those entities pursuant to section 91 of the 
Atomic Energy Community Act of 1955 (42 U.S.C. 2391) does not 
affect any other right, function, or duty of the Secretary with 
respect to such Act (42 U.S.C. 2301), and the Secretary shall consider 
the purposes of such Act a continuing atomic energy defense func-
tion of the Department of Energy.". 
Defense and 
national 
security. 
42 u s e 7273a. 
42 u s e 2391 
note. 
Tennessee. 
100 STAT. 4064 
PUBLIC LAW 99-661—NOV. 14, 1986 
42 u s e 2201. 
Safety. 
Washington. 
Union of Soviet 
Socialist 
Republics. 
Reports. 
Reports. 
SEC. 3134. AUTHORITY FOR DEPARTMENT OF ENERGY CONTRACTOR 
EMPLOYEES TO CARRY FIREARMS BEYOND BOUNDARIES OF 
A DOE FACILITY 
Section 161 k. of the Atomic Energy Act of 1954 is amended— 
(1) by inserting "and subcontractors (at any tier)" in the 
second sentence after "employees of its contractors"; 
"
" 
(2) by striking out "owned by the United States and" in the 
second sentence and inserting in lieu thereof "under the juris-
diction of the United States"; 
f • s 
(3) by inserting "or being transported to or from such facili-
f f ties" in the second sentence after "contracted to the United 
vj, 
States"; 
•
=
' 
(4) by inserting after the third sentence the following new 
sentence: "An employee of a contractor or subcontractor 
authorized to carry firearms under this subsection may make 
such arrests only when the individual to be arrested is within, 
or in direct flight from, the area of such offense."; and 
J 
(5) by striking out the semicolon at the end and inserting in 
lieu thereof the following: ". The Secretary, with the approval of 
the Attorney General, shall issue guidelines to implement this 
subsection;". 
SEC. 3135. REPORT ON CONTAINMENT FACILITIES 
The Secretary of Energy shall submit to the Committees on 
Armed Services of the Senate and House of Representatives a report 
on the costs and effects on safety that would result from construct-
ing containment facilities for nuclear reactors of the Department of 
Energy compared with the costs and effects on safety involved in 
constructing a new production reactor. Such report shall be submit-
ted not later than March 15,1987. 
SEC. 3136. STUDY OF PRODUCTION REACTOR SAFETY 
(a) REQUIREMENT FOR INDEPENDENT STUDY.—(1) The Secretary of 
Energy shall request the National Academy of Sciences and the 
National Academy of Engineering— 
(A) to make an independent assessment of the safety of 
continuing operations of the "N" Production Reactor, located 
near Richland, Washington, including any technical and safety 
issues raised by the nuclear reactor accident at Chernobyl in 
the Soviet Union; and 
(B) to provide a report on such assessment, together with 
findings and recommendations, concurrently to Congress and 
the Secretary not later than March 1,1987. , 
(2) The assessment should— 
(A) be made by distinguished scientists and engineers drawn 
from the councils of the National Academy of Sciences, the 
National Academy of Engineering, and the National Institute of 
Medicine chosen with regard for their special competence and 
expertise; and 
(B) be conducted in a manner that would allow for appro-
priate public participation in the review process consistent with 
statutory requirements to prevent the unauthorized disclosure 
of classified information. 
(b) REVIEW AND COMMENT BY SECRETARY.—The Secretary shall 
review the findings and recommendations contained in the report 
under subsection (a) and shall separately provide to Congress a 
report containing— 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4065 
(1) the Secretary's comments on such findings and rec-
ommendations; and 
(2) a description (including cost assessments) of plans of the 
Secretary to correct any technical problems described in the 
report or to carry out recommendations set forth in the report. 
SEC. 3137. IMPLEMENTATION OF THE RECOMMENDATIONS OF THE PRESI-
DENT'S BLUE RIBBON TASK GROUP ON NUCLEAR WEAPONS 
^ 
PROGRAM MANAGEMENT 
(a) ESTABLISHMENT OF COUNCIL.—(1) Chapter 7 of title 10, United 
States Code, is amended by adding at the end the following new 
section: 
"§ 179. Nuclear Weapons Council 
10 USC 179. 
"(a) There is a Joint Nuclear Weapons Council (hereinafter in this 
section referred to as the 'Council') composed of three members as 
follows: 
"(1) The Director of Defense Research and Engineering. 
"(2) The Vice Chairman of the Joint Chiefs of Staff. 
"(3) One senior representative of the Department of Energy 
appointed by the Secretary of Energy. 
"(b)(1) Except as provided in paragraph (2), the Chairman of the 
Council shall be the member appointed under subsection (a)(1). 
"(2) A meeting of the Council shall be chaired by the representa-
tive appointed under subsection (a)(3) whenever the matter under 
consideration is within the primary responsibility or concern of 
the Department of Energy, as determined by majority vote of the 
Council. 
"(c)(1) The Secretary of Defense and the Secretary of Energy shall 
enter into an agreement with the Council to furnish necessary staff 
and administrative services to the Council. 
"(2) The Assistant to the Secretary of Defense for Atomic Energy 
shall be the Staff Director of the Council. 
"(d) The Council shall be responsible for the following matters: 
"(1) Preparing the annual Nuclear Weapons Stockpile 
Memorandum. 
"(2) Developing nuclear weapons stockpiles options and the 
costs of such options. 
"(3) Coordinating programming and budget matters pertain-
ing to nuclear weapons programs between the Department of 
Defense and the Department of Energy. 
"(4) Identifying various options for cost-effective schedules for 
^„. 
, 
nuclear weapons production. 
"(5) Considering safety, security, and control issues for exist-
ing weapons and for proposed new weapon program starts. 
"(6) Ensuring that adequate consideration is given to design, 
performance, and cost tradeoffs for all proposed new nuclear 
weapons programs. 
"(7) Providing broad guidance regarding priorities for 
research on nuclear weapons. 
' -
"(8) Preparing comments on annual proposals for budget 
levels for research on nuclear weapons and transmitting those 
comments to the Secretary of Defense and the Secretary of 
Energy before the preparation of the annual budget requests by 
the Secretaries of those departments. 
"(9) Providing— 
100 STAT. 4066 
PUBLIC LAW 99-661—NOV. 14, 1986 
Reports. 
10 u s e 179 note. 
New Mexico. 
42 u s e 2394 
note. 
. V? J 
"(A) broad guidance regarding priorities for research on 
improved conventional weapons, and 
"(B) comments on annual proposals for budget levels for 
research on improved conventional weapons, 
and transmitting such guidance and comments to the Secretary 
of Defense before the preparation of the annual budget request 
of the Department of Defense. 
"(e) The Council shall submit to the Committees on Armed 
Services and on Appropriations of the Senate and House of 
Representatives a report on the actions that have been taken by 
the Department of Defense and the Department of Energy to 
implement the recommendations of the President's Blue Ribbon 
Task Group on Nuclear Weapons Program Management. The 
Council shall include in such report its recommendation on the 
role and composition of the staff on the Council. The Council 
shall submit such report to the Committees not later than 
March 1, 1987.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item: 
"179. Nuclear Weapons eouncil." 
(b) CHAIRMAN OF J C S TO SERVE ON COUNCIL IF THERE IS NO VICE 
CHAIRMAN OF JCS.—If on the date of the enactment of this section 
the position of Vice Chairman of the Joint Chiefs of Staff, or 
comparable position, has not been established by law, the Chairman 
of the Joint Chiefs of Staff shall be a member of the Nuclear 
Weapons Council established by section 179 of title 10, United States 
Code, as added by subsection (a). If the position of Vice Chairman of 
the Joint Chiefs of Staff (or comparable position) is established by 
law after the date of the enactment of this section, the Chairman of 
the Joint Chiefs of Staff shall remain a member of such Council only 
until an individual has been appointed Vice Chairman of the Joint 
Chiefs of Staff. 
(c) REPEAL.—Section 27 of the Atomic Energy Act of 1954 (42 
U.S.C. 2037) is repealed. 
SEC. 3138. EXTENSION OF DATE FOR CERTAIN CONTRACT AUTHORITY 
(a) EXTENSION.—Section 94 of the Atomic Energy Community Act 
of 1955 (42 U.S.C. 2394) is amended by striking out "June 30, 1986" 
and "June 30, 1987" and inserting in lieu thereof "June 30, 1996" in 
both places. 
(b) BUDGET ACT CONTRACT LIMITATION.—(1) Such section is further 
amended by adding at the end the following new sentence: "The 
authority to enter into a contract under the preceding sentence with 
the Los Alamos School Board and with the county of Los Alamos, 
New Mexico, shall be effective with respect to a period before July 1, 
1996, only to the extent or in such amounts as are provided in 
appropriation Acts.". 
(2) The amendment made by paragraph (1) shall not apply with 
respect to a contract with the county of Los Alamos, New Mexico, to 
the extent that it covers the period before July 1,1987. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4067 
President of U.S. 
50 u s e 98e-l. 
50 u s e 98e-l 
note. 
1- 
TITLE II—NATIONAL DEFENSE STOCKPILE 
r 
SEC. 3201. EXTENSION OF PROHIBITION ON REDUCTIONS IN STOCKPILE 
50 USC 98d note. 
GOALS 
Section 1612(a)(1) of the Department of Defense Authorization 
Act, 1986 (Public Law 99-145; 99 Stat. 776), is amended by striking 
out "October 1, 1986" and inserting in lieu thereof "October 1, 
1987". 
SEC. 3202. DESIGNATION OF NATIONAL DEFENSE STOCKPILE MANAGER 
-
(a) DESIGNATION OF SINGLE STOCKPILE MANAGER.—The Strategic 
and Critical Materials Stockpiling Act is amended by inserting after 
section 6 the following new section: 
"NATIONAL DEFENSE STOCKPILE MANAGER 
"SEC. 6A. (a) The President shall designate a single Federal 
official to perform the functions of the President under this Act. The 
official designated shall be an officer who holds a civilian position to 
which the person was appointed by the President, by and with the 
advice and consent of the Senate. 
"(b) The officer designated by the President under this section 
shall be known for purposes of his functions under this Act as the 
'National Defense Stockpile Manager'.". 
(b) DEADLINE FOR DESIGNATION.—The President shall designate an 
official as the National Defense Stockpile Manager, as required by 
section 6A of the Strategic and Critical Materials Stock Piling Act 
(as added by subsection (a)), not later than February 15, 1987. 
SEC. 3203. EXTENSION OF USES OF STOCKPILE TRANSACTION FUND AND 
CODIFICATION OF REVOLVING FUND PROVISIONS 
.^ 
(a) IN GENERAL.—Section 9(b) of the Strategic and Critical Mate-
rials Stock Piling Act (50 U.S.C 98h(b)) is amended— 
(1) by striking out the second sentence of paragraph (1); and 
(2) by striking out paragraphs (2) and (3) and inserting in lieu 
thereof the following: 
"(2) Subject to section 5(a)(1), moneys covered into the fund under 
50 USC 98d. 
paragraph (1) are hereby made available (subject to such limitations 
as may be provided in appropriation Acts) for the following 
purposes: 
"(A) The acquisition of strategic and critical materials under 
section 6(a)(1). 
50 USe 98e. 
"(B) Transportation, storage, and other incidental expenses 
y, 
related to such acquisition. 
"(C) Development of current specifications of stockpile mate- 
' =
• 
r rials and the upgrading of existing stockpile materials to meet 
current specifications (including transportation, when eco-
I-: nomical, related to such upgrading). 
"(D) Testing and quality studies of stockpile materials. 
"(E) Studying future material and mobilization requirements 
for the stockpile. 
"(F) Other reasonable requirements for management of the 
stockpile. 
"(3) Moneys in the fund shall remain available until expended.". 
(b) CONFORMING AMENDMENT.—Section 110 of Public Law 97-377 
(96 Stat. 1911) is amended by striking out "Notwithstanding" and all 
100 STAT. 4068 
PUBLIC LAW 99-661—NOV. 14, 1986 
President of U.S. 
50 u s e 98d 
note. 
Contracts. 
50 u s e 98d. 
President of U.S. 
Contracts. 
50 u s e 98d note. 
that follows through "That during" and inserting in lieu thereof 
"During". 
(c) APPLICABIUTY OF AMENDMENTS.—The amendments made by 
subsection (a) apply with respect to funds covered into the National 
Defense Stockpile Fund before, on, or after the date of the enact-
ment of this Act. 
SEC. 3204. AUTHORIZED DISPOSALS FROM NATIONAL DEFENSE STOCK-
PILE 
(a) IN GENERAL.—(1) The President is authorized to dispose of the 
following quantities of materials that are currently held in the 
National Defense Stockpile (established by section 3 of the Strategic 
and Critical Materials Stock Piling Act (50 U.S.C. 98b)) and that are 
hereby determined to be excess to the current requirements of the 
stockpile: 
Antimony 
1,500 short tons 
I Diamonds, Industrial Stone 
1,125,000 carats . 
. 
Iodine 
800,000 pounds 
.- j 
Mercury 
3,700 flasks 
Mica, Muscovite Film 
3,000 pounds 
Mica, Muscovite Splittings 
262,000 pounds 
Silicon Carbide 
7,600 short tons 
•
• 
Silver (Coinage Program Only) 
3,000,000 troy ounces 
, Tannin, Chestnut 
1,000 long tons 
Tannin, Quebracho 
4,000 long tons 
Thorium Nitrate 
10,000 pounds 
. Tin 
4,000 metric tons 
Tungsten 
1,900,000 pounds of tungsten metal 
equivalent 
(2) Authority provided by paragraph (1) is in addition to any other 
authority provided by law to dispose of materials from the National 
Defense Stockpile. 
(b) SPECIAL DISPOSAL AUTHORITY.—During fiscal year 1987, the 
President may contract to carry out authorized disposals of mate-
rials from the National Defense Stockpile without regard to the 
limitation in section 5(b)(2) of the Strategic and Critical Materials 
Stock Piling Act, but only to the extent that the total amount 
received (or to be received) from such disposals does not exceed the 
amount obligated from the National Defense Stockpile Transaction 
Fund during such fiscal year for purposes authorized under section 
9(bX2) of such Act (as amended by section 3203). 
SEC. 3205. CONVERSION OF CHROMIUM AND MANGANESE ORE TO HIGH 
CARBON 
FERROCHROMIUM 
AND 
HIGH 
CARBON 
FERROMANGANESE 
(a) REQUIRED UPGRADING.—During each of fiscal years 1987 
through 1993, the President shall— 
(1) obtain bids from domestic producers of high carbon 
ferrochromium and of high carbon ferromanganese; and 
(2) award contracts for the conversion of chromium and man-
ganese ores held in the National Defense Stockpile into 
high carbon ferrochromium and high carbon ferromanganese, 
respectively. 
(b) QUANTITIES TO BE UPGRADED.—(1) Contracts awarded under 
subsection (a) shall provide for the addition of not less than 53,500 
short tons of high carbon ferrochromium and not less than 67,500 
short tons of high carbon ferromanganese to the National Defense 
Stockpile during each of the fiscal years covered by subsection (a). 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4069 
(2) If, during any fiscal year referred to in subsection (a), the 
minimum quantity of high carbon ferrochromium or high carbon 
ferromanganese to be added to the National Defense Stockpile, as 
required by paragraph (1), is not met, the quantity of such material 
to be added to the stockpile in the next fiscal year shall be increased 
by the quantity of the deficiency. 
(c) SEVEN-YEAR MINIMUM QUANTITIES.—The total quantities of 
high carbon ferrochromium and high carbon ferromanganese to be 
added to the National Defense Stockpile over the seven fiscal years 
referred to in subsection (a) shall be as follows: 
(1) High carbon ferrochromium, 374,000 short tons. 
(2) High carbon ferromanganese, 472,000 short tons. 
(d) DEFINITION.—In this section, the term "National Defense 
> i 
Stockpile" means the stockpile provided for in section 4 of the 
"^ 
Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98c). 
SEC. 3206. REPORT ON WAR EMERGENCY SITUATIONS AND MOBILIZA-
TION REQUIREMENTS 
(a) REQUIREMENT.—The Secretary of Defense shall submit to Con-
gress a report describing war emergency situations that would 
necessitate total mobilization of the economy of the United States 
for a conventional global war of a duration of at least three years. 
With respect to each such war emergency situation, the Secretary 
shall include estimates o
f
— 
(1) the length and intensity of the assumed emergency; 
(2) the military force structure to be mobilized; and 
(3) the defense expenditures required during each such war 
emergency situation. 
(b) STOCKPILE PLANNING.—The Secretary shall indicate in the 
report which of the war emergency situations described in the 
report should serve as the basis for planning for and management of 
the National Defense Stockpile. 
(c) DEADLINE FOR REPORT.—The report under subsection (a) shall 
be submitted not later than January 31,1987. 
SEC. 3207. MISCELLANEOUS TECHNICAL AMENDMENTS 
(a) TECHNICAL AMENDMENTS.—(1) Section 4(a) of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98c(a)) is amended— 
(A) by striking out "on the day before the date of the date of 
the enactment of the Strategic and Critical Materials Stock 
Piling Revision Act of 1979" in paragraphs (1) and (3) and 
inserting in lieu thereof "on July 29, 1979", and 
(B) by ^riking out "on or after the date of the enactment of 
the Strategic and Critical Materials Stock Piling Revision Act of 
1979" in paragraph (2) and inserting in lieu thereof "after 
July 29, 1979". 
(2) Section 5(b) of such Act (50 U.S.C. 98d(b)) is amended by 
striking out "(4)" and inserting in lieu thereof "(3), (4),". 
(3) Section 11(b) of such Act (50 U.S.C. 98h-2) is amended by 
striking out "each year" and all that follows through "the next 
fiscal year" and inserting in lieu thereof "each year, at the time that 
the Budget is submitted to Congress pursuant to section 1105 of title 
31, United States Code, for the next fiscal year,". 
(b) CLARIFYING AMENDMENT.—Section 6(a)(3) of such Act (50 U.S.C. 
98e(a)(3)) is amended by striking out "the form most" and inserting 
in lieu thereof "a form more". 
100 STAT. 4070 
PUBLIC LAW 99-661—NOV. 14, 1986 
TITLE III—CIVIL DEFENSE 
. 
r 
SEC. 3301. AUTHORIZATION OF APPROPRIATIONS FOR CIVIL DEFENSE 
FUNCTIONS 
There is hereby authorized to be appropriated for fiscal year 1987 
the sum of $120,565,000 to carry out the provisions of the Federal 
Civil Defense Act of 1950 (50 U.S.C. App. 2251 et seq.). 
Child Nutrition 
DIVISION D—CHILD NUTRITION 
W n d m e n t s o f 
P R O G R A M S 
. . . 
42 u s e 1751 
SEC. 4001. SHORT TITLE; TABLE OF CONTENTS 
(a) SHORT TITLE.—This division may be cited as the "Child Nutri-
tion Amendments of 1986". 
0)) TABLE OF CONTENTS FOR DIVISION.—The table of contents for 
this division is as follows: 
Sec. 4001. Short title; table of contents. 
TITLE I—REAUTHORIZATION OF CHILD NUTRITION PROGRAMS 
Sec. 4101. Summer Food Service Program for children. 
, 
Sec. 4102. Commodity Distribution Program. 
Sec. 4103. State administrative expenses. 
Sec. 4104. Special supplemental food program for women, infants, and children. 
Sec. 4105. Nutrition Education and Training Program. 
TITLE II—SCHOOL LUNCH AND BREAKFAST PROGRAMS 
Sec. 4201. Basis of commodity assistance. 
Sec. 4202. Inclusion of whole milk as a school lunch beverage. 
Sec. 4203. Automatic eligibility for certain programs. 
usj 
Sec. 4204. Limitation on meal contracting. 
Sec. 4205. Change in tuition limitation for private schools. 
Sec. 4206. Use of school lunch facilities for elderly programs. 
Sec. 4207. Pilot projects for administration of child nutrition programs by contract 
or direct disbursement. 
Sec. 4208. Department of Defense Overseas Dependents' Schools. 
Sec. 4209. Restoration of certain kindergartens to the special milk program. 
Sec. 4210. Improvement of breakfast program meal pattern. 
Sec. 4211. Extension of offer versus serve provision to the school breakfast program. 
Sec. 4212. Staffing standards. 
TITLE III—SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR WOMEN, 
INFANTS, AND CHILDREN 
Sec. 4301. Costs for Nutrition Services and Administration. 
Sec. 4302. State eligibility for WIC funds. 
Sec. 4303. Participation report. 
Sec. 4304. Plan of operation and administration. 
Sec. 4305. Public comment. 
Sec. 4306. Availability of program benefits. 
Sec. 4307. Repayment of certain benefits by recipients. 
Sec. 4308. Priority funds for WIC migrant programs. 
Sec. 4309. Improving State agency administrative systems. ' 
Sec. 4310. Paperwork reduction. 
:.; 
' 
-.i • 
Sec. 4311. Allocation standards. 
Sec. 4312. Advance payments. 
, . 
Sec. 4313. Availability of funds. 
' 
TITLE IV—OTHER NUTRITION PROGRAMS 
Sec. 4401. Hearings on Federal audit actions under the Child Care Food Program. 
Sec. 4402. Basis for nutrition education grants. 
Sec. 4403. Extension of alternative means of assistance. 
Sec. 4404. National Donated Commodity Processing Programs. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4071 
TITLE V—TECHNICAL CORRECTIONS 
, ,,; 
^: 
Sec. 4501. Obsolete provisions. 
Sec. 4502. Obsolete references to Health, Education, and Welfare. 
Sec. 4503. Conforming amendments. 
TITLE I—REAUTHORIZATION OF CHILD NUTRITION 
PROGRAMS 
SEC. 4101. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN 
Section 13(p) of the National School Lunch Act (42 U.S.C. 1761(p)) 
is amended by striking out "1984" and inserting in lieu thereof 
"1989". 
SEC. 4102. COMMODITY DISTRIBUTION PROGRAM 
Section 14(a) of the National School Lunch Act (42 U.S.C. 1762a(a)) 
is amended by striking out "1984" and inserting in lieu thereof 
"1989". 
SEC. 4103. STATE ADMINISTRATIVE EXPENSES 
Section 7(i) of the Child Nutrition Act of 1966 (42 U.S.C. 1776(i)) is 
amended by striking out "1984" and inserting in lieu thereof "1989". 
SEC. 4104. SPECIAL SUPPLEMENTAL 
FOOD PROGRAM FOR WOMEN, 
INFANTS, AND CHILDREN 
Section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786) is 
amended— 
(1) in subsection (c)(2), by striking out "Subject to" and all 
that follows through "1984" and inserting in lieu thereof "Sub-
ject to amounts appropriated to carry out this section under 
subsection (g)"; 
(2) in subsection (g)— 
(A) by designating the first and second sentences as 
paragraphs (1) and (3), respectively; and 
(B) by amending paragraph (1) (as so designated) to read 
as follows: 
"(1) There are authorized to be appropriated to carry out this 
section $1,570,000,000 for the fiscal year ending September 30, 1986, 
such sums as may be necessary for each of the fiscal years ending 
September 30, 1987, and September 30, 1988, and $1,782,000,000 for 
the fiscal year ending September 30, 1989."; and 
(3) in subsection (hX2), by striking out "1984" and inserting in 
lieu thereof "1989". 
SEC. 4105. NUTRITION EDUCATION AND TRAINING PROGRAM 
' 
The first sentence of section 19(jX2) of the Child Nutrition Act of 
1966 (42 U.S.C. 1788(j)(2)) is amended by striking out "1984" and 
inserting in lieu thereof "1989". 
; 
TITLE 
II—SCHOOL 
LUNCH 
AND 
BREAKFAST 
PROGRAMS 
SEC. 4201. BASIS OF COMMODITY ASSISTANCE 
Section 60b) of the National School Lunch Act (42 U.S.C. 1755(b)) is 
amended— 
(1) in the first sentence, by striking out "May 15" and insert-
ing in lieu thereof "June 1"; and 
(2) in the second sentence, by striking out "June 15" and 
inserting in lieu thereof "July 1". 
100 STAT. 4072 
PUBLIC LAW 99-661—NOV. 14, 1986 
SEC. 4202. INCLUSION OF WHOLE MILK AS A SCHOOL LUNCH BEVERAGE 
Effective July 1, 1986, section 9(a) of the National School Lunch 
Act (42 U.S.C. 1758(a)) is amended— 
(1) by designating the first, second, and third sentences as 
paragraphs (1), (3), and (4), respectively; and 
(2) by inserting after paragraph (1) (as so designated) the 
following new paragraph: 
"(2) In addition to such other forms of milk as the Secretary may 
determine, the lunches shall offer whole milk as a beverage.'. 
SEC. 4203. AUTOMATIC ELIGIBILITY FOR CERTAIN PROGRAMS 
Effective July 1, 1986, section 9(b) of the National School Lunch 
Act (42 U.S.C. 1758(b)) is amended by adding at the end thereof the 
following new paragraph: 
"(6)(A) A child shall be considered automatically eligible for a free 
lunch and breakfast under this Act and the Child Nutrition Act of 
1966 (42 U.S.C. 1771 et seq.), respectively, without further applica-
tion or eligibility determination, if the child is a member o
f
— 
"(i) a household receiving assistance under the food stamp 
program authorized under the Food Stamp Act of 1977 (7 U.S.C. 
2011 et seq.); or 
^
^
'
"
,
1 
"(ii) an AFDC assistance unit (under the aid to families with 
dependent children program authorized under part A of title IV 
j , of the Social Security Act (42 U.S.C. 601 et seq.)), in a State 
where the standard of eligibility for the assistance does not 
exceed 130 percent of the poverty line (as defined in section 
673(2) of the Community Services Block Grant Act (42 U.S.C. 
9902(2))). 
"(B) Proof of receipt of food stamps or aid to families with 
dependent children shall be sufficient to satisfy any verification 
requirement imposed under paragraph (2)(C).". 
SEC. 4204. LIMITATION ON MEAL CONTRACTING 
Effective July 1, 1986, section 9 of the National School Lunch Act 
(42 U.S.C. 1758) is amended by adding at the end thereof the 
following new subsection: 
"(e) A school or school food authority participating in a program 
under this Act may not contract with a food service company to 
provide a la carte food service unless the company agrees to offer 
free, reduced-price, and full-price reimbursable meals to all eligible 
children.". 
SEC. 4205. CHANGE IN TUITION LIMITATION FOR PRIVATE SCHOOLS 
(a) SCHOOL LUNCH PROGRAMS.—Section 12(d)(5) of the National 
School Lunch Act (42 U.S.C. 1760(d)(5)) is amended— 
(1) in clause (A) of the first sentence, by striking out "$1,500" 
and inserting in lieu thereof "$2,000"; and 
(2) by adding at the end thereof the following new sentence: 
' 
"On July 1,1988, and each July 1 thereafter, the Secretary shall 
adjust the tuition limitation amount prescribed in clause (A) of 
the first sentence of this paragraph to reflect changes in the 
Consumer Price Index for All Urban Consumers during the 
most recent 12-month period for which the data is available.". 
(b) SCHOOL BREAKFAST PROGRAMS.—Section 15(c) of the Child 
Nutrition Act of 1966 (42 U.S.C. 1784(c)) is amended— 
(1) in clause (A) of the first sentence, by striking out "$1,500" 
and inserting in lieu thereof "$2,000"; and 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4073 
o 
(2) by adding at the end thereof the following new sentence: 
"On July 1,1988, and each July 1 thereafter, the Secretary shall 
•c^ adjust the tuition limitation amount prescribed in clause (A) of 
the first sentence of this paragraph to reflect changes in the 
J 
Consumer Price Index for All Urban Consumers during the 
most recent 12-month period for which the data is available.", 
(c) APPLICATION.—(1) The amendments made by subsections (a)(1) 42USC 1760 
and (b)(1) shall apply for the fiscal year beginning on October 1, note. 
1986, and each school year thereafter. 
(2) The amendments made by subsections (a)(2) and (b)(2) shall 
apply for the school year beginning on July 1, 1988, and each school 
year thereafter. 
SEC. 4206. USE OF SCHOOL LUNCH FACILITIES FOR ELDERLY PROGRAMS 
Section 12 of the National School Lunch Act (42 U.S.C. 1760) is 
amended by adding at the end thereof the following new subsection: 
"(i) Facilities, equipment, and personnel provided to a school food 
authority for a program authorized under this Act or the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et seq.) may be used, as 
determined by a local educational agency, to support a nonprofit 
nutrition program for the elderly, including a program funded 
under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.).". 
SEC. 4207. PILOT PROJECTS FOR ADMINISTRATION OF CHILD NUTRITION 
PROGRAMS BY CONTRACT OR DIRECT DISBURSEMENT 
(a) PILOT PROJECTS.—Section 20 of the National School Lunch Act 
(42 U.S.C. 1769) is amended by striking out subsection (d) and 
- , 
inserting in lieu thereof the following new subsection: 
"(d) The Secretary may conduct pilot projects in not more than 
three States in which the Secretary is currently administering 
programs to evaluate the effects of the Secretary contracting with 
private profit and nonprofit organizations to act as a State agency 
under this Act and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et 
seq.) for schools, institutions, or service institutions referred to in 
* ••:..•'. 
section 10 of this Act and section 5 of the Child Nutrition Act of 1966 
(42 U.S.C. 1774).". 
(b) CONFORMING AMENDMENT.—The first sentence of section 20(c) 
of the National School Lunch Act is amended by striking out 
"except for the pilot projects conducted under subsection (d) of this 
section,". 
SEC. 
4
2
0
8
. 
DEPARTMENT 
OF 
DEFENSE 
OVERSEAS 
DEPENDENTS' 
SCHOOLS 
(a) SCHOOL LUNCHES.—Section 22(d) of the National School Lunch 
Act (42 U.S.C. 1769b(d)) (as added by section 1408(a) of the Education 
Amendments of 1978 (92 Stat. 2368)) is amended by striking out 
,
,
^ 
"and for" and all that follows through "reduced-price lunch". 
Ot)) SCHOOL BREAKFASTS.—Section 20(d) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1789) is amended by striking out "and for" and all 
that follows through "reduced-price breakfast". 
SEC. 4209. RESTORATION OF CERTAIN KINDERGARTENS TO THE SPECIAL 
MILK PROGRAM 
Effective October 1, 1986, section 3(a) of the Child Nutrition Act of 
1966 (42 U.S.C. 1772(a)) is amended— 
(1) in the first sentence— 
(A) by inserting "(1)" after the subsection designation; 
100 STAT. 4074 
PUBLIC LAW 99-661—NOV. 14, 1986 
Securities. 
Agriculture and 
agricultural 
commodities. 
State and local 
governments. 
42 u s e 1766 
note. 
Regulations. 
(B) by redesignating clauses (1) and (2) as subparagraphs 
(A) and (B), respectively; and 
(C) in subparagraph (A) (as so redesignated), by inserting 
"except as provided in paragraph (2)," after "and under,"; 
(2) by designating the second through eighth sentences as 
paragraphs (3) through (9), respectively; and 
. I 
(3) by inserting after paragraph (1) (as so designated) the 
following new paragraph: 
"(2) The limitation imposed under paragraph (1)(A) for participa-
tion of nonprofit schools in the special milk program shall not apply 
to split-session kindergarten programs conducted in schools in 
which children do not have access to the meal service program 
operating in schools the children attend as authorized under this 
Act or the National School Lunch Act (42 U.S.C. 1751 et seq.).". 
SEC. 4210. IMPROVEMENT OF BREAKFAST PROGRAM MEAL PATTERN 
(a) ADDITIONAL ASSISTANCE.—Effective October 1, 1986, section 4(b) 
of the Child Nutrition Act of 1966 (42 U.S.C. 1773(b)) is amended by 
adding at the end thereof the following new paragraphs: 
"(3) The Secretary shall increase by 3 cents the annually adjusted 
payment for each breakfast served under this Act and section 17 of 
the National School Lunch Act (42 U.S.C. 1766). These funds shall be 
used to assist States, to the extent feasible, in improving the nutri-
tional quality of the breakfasts. 
"(4) Notwithstanding any other provision of law, whenever stocks 
of agricultural commodities are acquired by the Secretary or the 
Commodity Credit Corporation and are not likely to be sold by the 
Secretary or the Commodity Credit Corporation or otherwise used in 
programs of commodity sale or distribution, the Secretary shall 
make such commodities available to school food authorities and 
eligible institutions serving breakfasts under this Act in a quantity 
equal in value to not less than 3 cents for each breakfast served 
under this Act and section 17 of the National School Lunch Act. 
"(5) Expenditures of funds from State and local sources for the 
maintenance of the breakfast program shall not be diminished as a 
result of funds or commodities received under paragraph (3) or (4).". 
(b) NUTRITION REQUIREMENTS.—(1) The Secretary of Agriculture 
shall review and revise the nutrition requirements for meals served 
under the breakfast program authorized under the Child Nutrition 
Act of 1966 (42 U.S.C. 1771 et seq.) and section 17 of the National 
School Lunch Act (42 U.S.C. 1766) to improve the nutritional quality 
of the meals, taking into consideration both the findings of the 
National Evaluation of School Nutrition Programs and the need 
to provide increased flexibility in meal planning to local food 
authorities. 
(2) Not later than 180 days after the date of enactment of this Act, 
the Secretary of Agriculture shall promulgate regulations to imple-
ment the revisions. 
SEC. 4211. EXTENSION OF OFFER VERSUS SERVE PROVISION TO THE 
SCHOOL BREAKFAST PROGRAM 
Section 4(e) of the Child Nutrition Act of 1966 (42 U.S.C. 1773(e)) is 
amended— 
(1) by inserting "(1)" after the subsection designation; and 
(2) by adding at the end thereof the following new paragraph: 
"(2) At the option of a local school food authority, a student in a 
school under the authority that participates in the school breakfast 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4075 
program under this Act may be allowed to refuse not more than one 
item of a breakfast that the student does not intend to consume. A 
refusal of an offered food item shall not affect the full charge to the 
student for a breakfast meeting the requirements of this section or 
the amount of payments made under this Act to a school for the 
breakfast.". 
SEC. 4212. STAFFING STANDARDS 
Section 7 of the Child Nutrition Act of 1966 (42 U.S.C. 1776) (as 
amended by section 103) is further amended— 
Ante, p. 4071. 
(1) by striking out subsection (b); and 
(2) by redesignating subsections (c) through (i) as subsections 
(b) through (h), respectively. 
TITLE III—SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR 
WOMEN, INFANTS, AND CHILDREN 
SEC. 4301. COSTS FOR NUTRITION SERVICES AND ADMINISTRATION 
(a) DEFINITIONS.—Section 17(b) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(b)) is amended— 
(1) by striking out paragraph (1); 
(2) by redesignating paragraphs (2), (3), and (4) as paragraphs 
(1), (2), and (3), respectively; and 
(3) by inserting after paragraph (3) (as so redesignated) the 
following new paragraph: 
"(4) 'Costs for nutrition services and administration' means 
costs that shall include, but not be limited to, costs for certifi-
cation of eligibility of persons for participation in the program 
(including centrifuges, measuring boards, spectrophotometers, 
and scales used for the certification), food delivery, monitoring, 
nutrition education, outreach, startup costs, and general 
administration applicable to implementation of the program 
under this section, such as the cost of staff, transportation, 
insurance, developing and printing food instruments, and 
administration of State and local agency offices.". 
(b) CONFORMING AMENDMENTS.—Section 17 of such Act is 
amended— 
(1) by striking out "administrative funds" each place it 
appears in subsections (fKll), (h)(2), (hX3), and (hX4) and insert-
ing in lieu thereof "funds for nutrition services and administra-
tion"; and 
(2) by striking out "administrative costs" each place it 
appears irl subsection (h) and inserting in lieu thereof "costs for 
nutrition services and administration". 
SEC. 4302. STATE ELIGIBILITY FOR WIC FUNDS 
(a) EuGiBiLiTY.—Section 17(c) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(c)) is amended by adding at the end thereof the 
following new paragraph: 
"(4) A State shall be ineligible to participate in programs 
Taxes, 
authorized under this section if the Secretary determines that State 
or local sales taxes are collected within the State on purchases of 
food made to carry out this section.". 
(b) APPUCATION.—The amendment made by subsection (a) shall 
42 USC 1786 
apply to a State beginning with the fiscal year that commences after 
"ote. 
the end of the first regular session of the State legislature following 
the date of the enactment of this Act. 
100 STAT. 4076 
PUBLIC LAW 99-661—NOV. 14, 1986 
Ante, p. 4071. 
State and local 
governments. 
Indians. 
SEC. 4303. PARTICIPATION REPORT 
(a) BIENNIAL REPORT.—Section 17(d) of the Child Nutrition Act of 
1966 (42 U.S.C. 1786(d)) is amended by adding at the end thereof the 
following new paragraph: 
"(4) The Secretary shall report biennially to Congress on— 
"(A) the income and nutritional risk characteristics of partici-
pants in the program; 
"(B) participation in the program by members of families of 
•' migrant farmworkers; and 
"(C) such other matters relating to participation in the pro-
gram as the Secretary considers appropriate.". 
(b) USE OF EVALUATION FUNDS FOR REPORT.—Section 17(g)(3) of 
such Act (as amended by section 104(2)(A)) is further amended by 
inserting "preparing the report required under subsection (d)(4), 
after "health benefits,". 
SEC. 4304. PLAN OF OPERATION AND ADMINISTRATION 
(a) PLAN.—Paragraph (1) of section 17(f) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(fKl)) is amended to read as follows: 
"(1)(A) Each State agency shall submit annually to the Secretary, 
by a date specified by the Secretary, a plan of operation and 
administration for a fiscal year. 
"(B) To be eligible to receive funds under this section for a fiscal 
year, a State agency must receive the approval of the Secretary for 
the plan submitted for the fiscal year. 
"(C) The plan shall include— 
"(i) a description of the food delivery system of the State 
*
> agency and the method of enabling participants to receive 
. 
supplemental foods under the program, to be administered in 
.; : accordance with standards developed by the Secretary; 
;
>
v 
"(ii) a description of the financial management system of the 
State agency; 
"(iii) a plan to coordinate operations under the program with 
' 
special counseling services, such as the expanded food and 
nutrition education program, immunization programs, prenatal 
care, well-child care, family planning, alcohol and drug abuse 
counseling, child abuse counseling, and with the aid to families 
with dependent children, food stamp, and maternal and child 
health care programs; 
"(iv) a plan to provide program benefits under this section to, 
and to meet the special nutrition education needs of, eligible 
;r migrants and Indians; 
"(v) a plan to expend funds to carry out the program during 
the relevant fiscal year; 
"(vi) a plan to provide program benefits under this section to 
unserved and underserved areas in the State, if sufficient funds 
• are available to carry out this clause; 
"(vii) a plan to provide program benefits under this section to 
eligible persons most in need of the benefits and to enroll 
" ' eligible women in the early months of pregnancy, to the maxi-
• mum extent practicable; and 
"(viii) such other information as the Secretary may require. 
"(D) The Secretary may permit a State agency to submit only 
those parts of a plan that differ from plans submitted for previous 
fiscal years. 
"(E) The Secretary may not approve any plan that permits a 
person 
to participate 
simultaneously 
in 
both 
the 
program 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4077 
authorized under this section and the commodity supplemental food 
program authorized under sections 4 and 5 of the Agriculture and 
Consumer Protection Act of 1973 (7 U.S.C. 612c note).". 
(b) APPLICATION.—The amendment made by subsection (a) shall 
apply to a plan submitted by a State agency under section 17(f)(1) of 
the Child Nutrition Act of 1966 for the fiscal year ending Septem-
ber 30, 1987, and each fiscal year thereafter. 
SEC. 4305. PUBLIC COMMENT 
n 
jrfe 
Paragraph (2) of section 17(f) of the Child Nutrition Act of 1966 (42 
U.S.C. 1786(f)(2)) is amended to read as follows: 
"(2) A State agency shall establish a procedure under which 
members of the general public are provided an opportunity to 
comment on the development of the State agency plan.". 
SEC. 4306. AVAILABILITY OF PROGRAM BENEFITS 
Paragraph (8) of section 17(f) of the Child Nutrition Act of 1966 (42 
U.S.C. 1786(fK8)) is amended to read as follows: 
"(8)(A) The State agency shall, in cooperation with participating 
local agencies, publicly announce and distribute information on the 
availability of program benefits (including the eligibility criteria for 
participation and the location of local agencies operating the pro-
gram) to offices and organizations that deal with significant num-
bers of potentially eligible persons (including health and medical 
organizations, hospitals and clinics, welfare and unemployment 
offices, social service agencies, farmworker organizations, Indian 
tribal organizations, and religious and community organizations in 
low income areas). 
"(B) The information shall be publicly announced by the State 
agency and by local agencies at least annually. 
"(C) The State agency and local agencies shall distribute the 
information in a manner designed to provide the information to 
potentially eligible persons who are most in need of the benefits, 
including pregnant women in the early months of pregnancy.". 
SEC. 4307. REPAYMENT OF CERTAIN BENEFITS BY RECIPIENTS 
Effective October 1, 1986, section 17(f) of the Child Nutrition Act 
of 1966 (42 U.S.C. 1786(f)) is amended by adding at the end thereof 
the following new paragraph: 
"(15) If a State agency determines that a member of a family has 
received an overissuance of food benefits under the program 
authorized by this section as the result of such member inten-
tionally making a false or misleading statement or intentionally 
misrepresenting, concealing, or withholding facts, the State agency 
shall recover, in cash, from such member an amount that the State 
agency determines is equal to the value of the overissued food 
benefits, unless the State agency determines that the recovery of the 
benefits would not be cost effective.". 
SEC. 4308. PRIORITY FUNDS FOR WIC MIGRANT PROGRAMS 
(a) PRIORITY FUNDING.—Effective October 1, 1986, section 17(g) of 
.he Child Nutrition Act of 1966 (42 U.S.C. 1786(g)) (as amended by 
section 104(2XA)) is further amended by inserting after paragraph 
(1) the following new paragraph: 
"(2) Of the sums appropriated for any fiscal year for programs 
authorized under this section, not less than nine-tenths of 1 percent 
shall be available first for services to eligible members of migrant 
42 u s e 1786 
note. 
State and local 
governments. 
Effective date. 
Ante, p. 4071. 
100 STAT. 4078 
PUBLIC LAW 99-661—NOV. 14, 1986 
populations. The migrant services shall be provided in a man-
ner consistent with the priority system of a State for program 
participation.". 
42 use 1786 
(b) ACCOUNTABILITY.—To the extent possible, accountability for 
note. 
migrant services under section 17(g)(2) of the Child Nutrition Act of 
1966 (as added by subsection (a)) shall be conducted under regula-
tions in effect on the date of the enactment of this Act. 
SEC. 4309. IMPROVING STATE AGENCY ADMINISTRATIVE SYSTEMS 
Section 17(g)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
Ante, p. 4071. 
1786(g)(3)) (as amended by sections 104(2)(A) and 303(b)) is further 
amended by inserting "providing technical assistance to improve 
State agency administrative systems," after "subsection (d)(4),". 
SEC. 4310. PAPERWORK REDUCTION 
Section 17(h)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(1)) is amended by adding at the end thereof the following 
^ , 
new sentence: "The Secretary shall limit to a minimal level any 
,?. .; »
*
f
.
.
^ 
documentation required under the preceding sentence.". 
SEC. 4311. ALLOCATION STANDARDS 
Section 17(h)(3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(h)(3)) is amended— 
(1) in the second sentence, by striking out ", which satisfy 
allocation guidelines established by the Secretary"; and 
(2) by striking out the last sentence. 
SEC. 4312. ADVANCE PAYMENTS 
* 
' 
- ^ 
* ' 
Effective October 1, 1986, section 17(h)(4) of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786(h)(4)) is amended by striking out "shall" 
and inserting in lieu thereof "may". 
, 
s t; - 
- ' 
SEC. 4313. AVAILABILITY OF FUNDS 
(a) AVAILABILITY.—Section 17(i) of the Child Nutrition Act of 1966 
(42 U.S.C. 1786(i)) is amended— 
(1) by designating the first, second, third, fourth, and fifth 
; sentences as paragraphs (1), (2), (4), (5), and (6), respectively; and 
(2) by inserting after paragraph (2) (as so designated) the 
following new paragraph: 
"(3XA) Notwithstanding paragraph (2)— 
State and local 
"(i) not more than 1 percent of the amount of funds allocated 
governments. 
^o a State agency under this section for supplemental foods for a 
fiscal year may be expended by the State agency for expenses 
incurred under this section for supplemental foods during the 
preceding fiscal year; or 
"(ii) not more than 1 percent of the amount of funds allocated 
to a State agency for a fiscal year under this section may be 
expended by the State agency during the subsequent fiscal year. 
"(B) Any funds made available to a State agency in accordance 
''"' 
'"'^' 
with subparagraph (A)(ii) for a fiscal year shall not affect the 
amount of funds allocated to the State agency for such year.". 
42 use 1786 
(b) APPLICATION.—Section 17(i)(3XAXi) of the Child Nutrition Act 
^°^- 
of 1966 (as amended by subsection (a)) shall not apply to appropria-
tions made before the date of enactment of this Act. 
PUBLIC LAW 99-661—NOV. 14, 1986 
100 STAT. 4079 
TITLE IV—OTHER NUTRITION PROGRAMS 
SEC. 4401. HEARINGS ON FEDERAL AUDIT ACTIONS UNDER THE CHILD 
CARE FOOD PROGRAM 
Section 17(e) of the National School Lunch Act (42 U.S.C. 1766(e)) 
is amended— 
(1) by striking out "The" and inserting in lieu thereof "(1) 
Except as provided in paragraph (2), the"; and 
(2) by adding at the end thereof the following new paragraphs: 
"(2) A State is not required to provide a hearing to an institution 
concerning a State action taken on the basis of a Federal audit 
determination. 
"(3) If a State does not provide a hearing to an institution concern-
ing a State action taken on the basis of a Federal audit deter-
mination, the Secretary, on request, shall afford a hearing to the 
institution concerning the action.". 
SEC. 4402. BASIS FOR NUTRITION EDUCATION GRANTS 
Section 19(j)(2) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(j)(2)) is amended by striking out "$75,000" each place it appears 
and inserting in lieu thereof "$50,000". 
SEC. 4403. EXTENSION OF ALTERNATIVE MEANS OF ASSISTANCE 
Section 14 of the National School Lunch Act (42 U.S.C. 1762a) is 
amended by adding at the end thereof the following new subsection: 
"(g)(1) As used in this subsection, the term 'eligible school district' 
has the same meaning given such term in section 1581(a) of the Food 
Security Act of 1985. 
"(2) In accordance with the terms and conditions of section 1581 of 
such Act, the Secretary shall permit an eligible school district to 
continue to receive assistance in the form of cash or commodity 
letters of credit assistance, in lieu of commodities, to carry out the 
school lunch program operated in the district. 
"(3)(A) On request of a participating school district (and after 
consultation with the Comptroller General of the United States with 
respect to accounting procedures used to determine any losses) and 
subject to the availability of funds, the Secretary shall provide cash 
compensation to an eligible school district for losses sustained by the 
district as a result of the alteration of the methodology used to 
conduct the study referred to in section 1581(a) of such Act during 
the school year ending June 30, 1983. 
"(B) There are authorized to be appropriated $50,000 to carry out 
this paragraph, to be available without fiscal year limitation.", 
SEC. 4404. NATIONAL DONATED COMMODITY PROCESSING PROGRAMS 
In accordance with the terms and conditions of section 1114(a)(2) 
of the Agriculture and Food Act of 1981 (7 U.S.C. 1431e(a)(2)\ 
whenever a commodity is made available without charge or credit 
under any nutrition program administered by the Secretary of 
Agriculture, the Secretary shall encourage consumption of the 
commodity through agreements with private companies under 
which the commodity is reprocessed into end-food products for use 
by eligible recipient agencies. 
State and local 
governments. 
99 Stat. 1594. 
7 u s e 1431e 
note. 
100 STAT. 4080 
PUBLIC LAW 99-661—NOV. 14, 1986 
TITLE V—TECHNICAL CORRECTIONS 
SEC. 4501. OBSOLETE PROVISIONS 
(a) NUTRITION PROGRAM STAFF STUDY; TRUST TERRITORY APPRO-
PRIATIONS.—(1) Sections 18 and 19 of the National School Lunch Act 
(42 U.S.C. 1767 and 1768) are repealed. 
(2) The first sentence of section 3 of such Act (42 U.S.C. 1752) is 
amended by striking out "sections 13, 17, and 19" and inserting in 
lieu thereof "sections 13 and 17". 
, < > ' . 
(b) STUDY OF MENU CHOICE.—Section 22 of such Act (42 U.S.C. 
' ' -
• 
1769c) (as added by section 9 of the Child Nutrition Amendments of 
1978 (92 Stat. 3623)) is repealed. 
(c) CONFORMING AMENDMENTS.—(1) The National School Lunch 
Act (as amended by sections 207 and 208(a) and subsection (b)) is 
further amended by redesignating sections 20, 21, and 22 (42 U.S.C. 
1769, 1769a, and 1769b) as sections 18, 19, and 20, respectively. 
(2) Clause (3) of the first sentence of section 6(a) of such Act (42 
U.S.C. 1755(a)) is amended by striking out "section 20" and inserting 
in lieu thereof "section 18". 
SEC. 
4
5
0
2
. 
OBSOLETE REFERENCES TO HEALTH, EDUCATION, AND 
WELFARE 
(a) REFERENCES IN NATIONAL SCHOOL LUNCH ACT.—Clause (1) of 
the sixth sentence of section 17(a) of the National School Lunch Act 
(42 U.S.C. 1766(a)) is amended by striking out "Health, Education, 
and Welfare" and inserting in lieu thereof "Health and Human 
Services". 
OD) REFERENCES IN CHILD NUTRITION ACT OF 1966.—(1) The Child 
42 use 1771 
Nutrition Act of 1966 is amended by striking out "Health, Edu-
"ot®- 
cation, and Welfare" each place it appears in section 4(a) (42 U.S.C. 
1773(a)), subsections (bX6), (b)(13), (e)(2), (k)(l), and (k)(2) of section 17 
(42 U.S.C. 1786), and subsections (d)(2) and (d)(3) of section 19 (42 
U.S.C. 1788) and inserting in lieu thereof "Health and 
Human 
Services 
(2) Section 190X3) of the Child Nutrition Act of 1966 (42 U.S.C. 
1788(jX3)) is amended by striking out "Office of Education of the 
Department of Health, Education, and Welfare" and inserting in 
lieu thereof "Department of Education". 
PUBLIC LAW 99-661—NOV. 14,1986 
100 STAT. 4081 
SEC. 4503. CONFORMING AMENDMENTS 
"^r^S. 
- 
; <• 
(a) DEFINITION OF SECRETARY.—Section 12(d) of the National 
School Lunch Act (42 U.S.C. 1760(d)) is amended by adding at the 
end thereof the following new paragraph: 
"(8)'Secretary'means the Secretary of Agriculture.". 
(b) REDESIGNATION OF SUBSECTION.—Section 19 of the Child Nutri-
tion Act of 1966 (42 U.S.C. 1788) (as amended by sections 105, 402, 
and 5020t)X2)) is further amended by redesignating subsection (j) as 
Ante, pp. 4071, 
subsection (i). 
4079.4080. 
Approved November 14, 1986. 
'5 
Wit ^.. •
> 
LEGISLATIVE HISTORY—S. 2638 (H.R. 4428): 
HOUSE REPORTS: No. 99-718 accompanying H.R. 4428 (Comm. on Armed Services) 
and No. 99-101 (Comm. on Conference). 
SENATE REPORTS: No. 99-331 (Comm. on Armed Services). 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Aug. 1, 4-9, considered and passed Senate. 
Aug. 4, 5, 7, 8, 11-15, H.R. 4428 considered and passed House. 
Sept. 18, proceedings vacated and S. 2638 considered and passed House, 
amended, in lieu of H.R. 4428. 
Oct. 15, House and Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 22 (1986): 
Nov. 14, Presidential statement.