H.R. 4986 (110th): National Defense Authorization Act for Fiscal Year 2008

110th Congress, 2007–2009. Text as of Jan 23, 2008 (Passed Congress/Enrolled Bill).

Status & Summary | PDF | Source: GPO

H.R.4986

One Hundred Tenth Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Thursday,

the third day of January, two thousand and eight

An Act

To provide for the enactment of the National Defense Authorization Act for Fiscal Year 2008, as previously enrolled, with certain modifications to address the foreign sovereign immunities provisions of title 28, United States Code, with respect to the attachment of property in certain judgments against Iraq, the lapse of statutory authorities for the payment of bonuses, special pays, and similar benefits for members of the uniformed services, 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; TREATMENT OF EXPLANATORY STATEMENT.

    (a) Short Title- This Act may be cited as the `National Defense Authorization Act for Fiscal Year 2008'.

    (b) Explanatory Statement- The Joint Explanatory Statement submitted by the Committee of Conference for the conference report to accompany H.R. 1585 of the 110th Congress (Report 110-477) shall be deemed to be part of the legislative history of this Act and shall have the same effect with respect to the implementation of this Act as it would have had with respect to the implementation of H.R. 1585, if such bill had been enacted.

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) Divisions- This Act is organized into three divisions as follows:

      (1) Division A--Department of Defense Authorizations.

      (2) Division B--Military Construction Authorizations.

      (3) Division C--Department of Energy National Security Authorizations and Other Authorizations.

    (b) Table of Contents- The table of contents for this Act is as follows:

      Sec. 1. Short title; treatment of explanatory statement.

      Sec. 2. Organization of Act into divisions; table of contents.

      Sec. 3. Congressional defense committees.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

      Sec. 101. Army.

      Sec. 102. Navy and Marine Corps.

      Sec. 103. Air Force.

      Sec. 104. Defense-wide activities.

      Sec. 105. National Guard and Reserve equipment.

Subtitle B--Army Programs

      Sec. 111. Multiyear procurement authority for M1A2 Abrams System Enhancement Package upgrades.

      Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley fighting vehicle upgrades.

      Sec. 113. Multiyear procurement authority for conversion of CH-47D helicopters to CH-47F configuration.

      Sec. 114. Multiyear procurement authority for CH-47F helicopters.

      Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter Information Network-Tactical program pending certification to Congress.

      Sec. 116. Prohibition on closure of Army Tactical Missile System production line pending report.

      Sec. 117. Stryker Mobile Gun System.

Subtitle C--Navy Programs

      Sec. 121. Multiyear procurement authority for Virginia-class submarine program.

      Sec. 122. Report on shipbuilding investment strategy.

      Sec. 123. Sense of Congress on the preservation of a skilled United States shipyard workforce.

      Sec. 124. Assessments required prior to start of construction on first ship of a shipbuilding program.

      Sec. 125. Littoral Combat Ship (LCS) program.

Subtitle D--Air Force Programs

      Sec. 131. Limitation on Joint Cargo Aircraft.

      Sec. 132. Clarification of limitation on retirement of U-2 aircraft.

      Sec. 133. Repeal of requirement to maintain retired C-130E tactical aircraft.

      Sec. 134. Limitation on retirement of C-130E/H tactical airlift aircraft.

      Sec. 135. Limitation on retirement of KC-135E aerial refueling aircraft.

      Sec. 136. Transfer to Government of Iraq of three C-130E tactical airlift aircraft.

      Sec. 137. Modification of limitations on retirement of B-52 bomber aircraft.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

      Sec. 201. Authorization of appropriations.

      Sec. 202. Amount for defense science and technology.

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec. 211. Operational test and evaluation of Future Combat Systems network.

      Sec. 212. Limitation on use of funds for systems development and demonstration of Joint Light Tactical Vehicle program.

      Sec. 213. Requirement to obligate and expend funds for development and procurement of a competitive propulsion system for the Joint Strike Fighter.

      Sec. 214. Limitation on use of funds for defense-wide manufacturing science and technology program.

      Sec. 215. Advanced Sensor Applications Program.

      Sec. 216. Active protection systems.

Subtitle C--Ballistic Missile Defense

      Sec. 221. Participation of Director, Operational Test and Evaluation, in missile defense test and evaluation activities.

      Sec. 222. Study on future roles and missions of the Missile Defense Agency.

      Sec. 223. Budget and acquisition requirements for Missile Defense Agency activities.

      Sec. 224. Limitation on use of funds for replacing warhead on SM-3 Block IIA missile.

      Sec. 225. Extension of Comptroller General assessments of ballistic missile defense programs.

      Sec. 226. Limitation on availability of funds for procurement, construction, and deployment of missile defenses in Europe.

      Sec. 227. Sense of Congress on missile defense cooperation with Israel.

      Sec. 228. Limitation on availability of funds for deployment of missile defense interceptors in Alaska.

      Sec. 229. Policy of the United States on protection of the United States and its allies against Iranian ballistic missiles.

Subtitle D--Other Matters

      Sec. 231. Coordination of human systems integration activities related to acquisition programs.

      Sec. 232. Expansion of authority for provision of laboratory facilities, services, and equipment.

      Sec. 233. Modification of cost-sharing requirement for Technology Transition Initiative.

      Sec. 234. Report on implementation of Manufacturing Technology Program.

      Sec. 235. Assessment of sufficiency of test and evaluation personnel.

      Sec. 236. Repeal of requirement for separate reports on technology area review and assessment summaries.

      Sec. 237. Modification of notice and wait requirement for obligation of funds for foreign comparative test program.

      Sec. 238. Strategic Plan for the Manufacturing Technology Program.

      Sec. 239. Modification of authorities on coordination of Defense Experimental Program to Stimulate Competitive Research with similar Federal programs.

      Sec. 240. Enhancement of defense nanotechnology research and development program.

      Sec. 241. Federally funded research and development center assessment of the Defense Experimental Program to Stimulate Competitive Research.

      Sec. 242. Cost-benefit analysis of proposed funding reduction for High Energy Laser Systems Test Facility.

      Sec. 243. Prompt global strike.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

      Sec. 301. Operation and maintenance funding.

Subtitle B--Environmental Provisions

      Sec. 311. Reimbursement of Environmental Protection Agency for certain costs in connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington.

      Sec. 312. Reimbursement of Environmental Protection Agency for certain costs in connection with the Arctic Surplus Superfund Site, Fairbanks, Alaska.

      Sec. 313. Payment to Environmental Protection Agency of stipulated penalties in connection with Jackson Park Housing Complex, Washington.

      Sec. 314. Report on control of the brown tree snake.

      Sec. 315. Notification of certain residents and civilian employees at Camp Lejeune, North Carolina, of exposure to drinking water contamination.

Subtitle C--Workplace and Depot Issues

      Sec. 321. Availability of funds in Defense Information Systems Agency Working Capital Fund for technology upgrades to Defense Information Systems Network.

      Sec. 322. Modification to public-private competition requirements before conversion to contractor performance.

      Sec. 323. Public-private competition at end of period specified in performance agreement not required.

      Sec. 324. Guidelines on insourcing new and contracted out functions.

      Sec. 325. Restriction on Office of Management and Budget influence over Department of Defense public-private competitions.

      Sec. 326. Bid protests by Federal employees in actions under Office of Management and Budget Circular A-76.

      Sec. 327. Public-private competition required before conversion to contractor performance.

      Sec. 328. Extension of authority for Army industrial facilities to engage in cooperative activities with non-Army entities.

      Sec. 329. Reauthorization and modification of multi-trades demonstration project.

      Sec. 330. Pilot program for availability of working-capital funds to Army for certain product improvements.

Subtitle D--Extension of Program Authorities

      Sec. 341. Extension of Arsenal Support Program Initiative.

      Sec. 342. Extension of period for reimbursement for helmet pads purchased by members of the Armed Forces deployed in contingency operations.

      Sec. 343. Extension of temporary authority for contract performance of security guard functions.

Subtitle E--Reports

      Sec. 351. Reports on National Guard readiness for emergencies and major disasters.

      Sec. 352. Annual report on prepositioned materiel and equipment.

      Sec. 353. Report on incremental cost of early 2007 enhanced deployment.

      Sec. 354. Modification of requirements of Comptroller General report on the readiness of Army and Marine Corps ground forces.

      Sec. 355. Plan to improve readiness of ground forces of active and reserve components.

      Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.

      Sec. 357. Department of Defense Inspector General report on physical security of Department of Defense installations.

      Sec. 358. Review of high-altitude aviation training.

      Sec. 359. Reports on safety measures and encroachment issues and master plan for Warren Grove Gunnery Range, New Jersey.

      Sec. 360. Report on search and rescue capabilities of the Air Force in the northwestern United States.

      Sec. 361. Report and master infrastructure recapitalization plan for Cheyenne Mountain Air Station, Colorado.

Subtitle F--Other Matters

      Sec. 371. Enhancement of corrosion control and prevention functions within Department of Defense.

      Sec. 372. Authority for Department of Defense to provide support for certain sporting events.

      Sec. 373. Authority to impose reasonable restrictions on payment of full replacement value for lost or damaged personal property transported at Government expense.

      Sec. 374. Priority transportation on Department of Defense aircraft of retired members residing in Commonwealths and possessions of the United States for certain health care services.

      Sec. 375. Recovery of missing military property.

      Sec. 376. Retention of combat uniforms by members of the Armed Forces deployed in support of contingency operations.

      Sec. 377. Issue of serviceable material of the Navy other than to Armed Forces.

      Sec. 378. Reauthorization of Aviation Insurance Program.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

      Sec. 401. End strengths for active forces.

      Sec. 402. Revision in permanent active duty end strength minimum levels.

      Sec. 403. Additional authority for increases of Army and Marine Corps active duty end strengths for fiscal years 2009 and 2010.

      Sec. 404. Increase in authorized strengths for Army officers on active duty in the grade of major.

      Sec. 405. Increase in authorized strengths for Navy officers on active duty in the grades of lieutenant commander, commander, and captain.

      Sec. 406. Increase in authorized daily average of number of members in pay grade E-9.

Subtitle B--Reserve Forces

      Sec. 411. End strengths for Selected Reserve.

      Sec. 412. End strengths for Reserves on active duty in support of the Reserves.

      Sec. 413. End strengths for military technicians (dual status).

      Sec. 414. Fiscal year 2008 limitation on number of non-dual status technicians.

      Sec. 415. Maximum number of reserve personnel authorized to be on active duty for operational support.

      Sec. 416. Future authorizations and accounting for certain reserve component personnel authorized to be on active duty or full-time National Guard duty to provide operational support.

      Sec. 417. Revision of variances authorized for Selected Reserve end strengths.

Subtitle C--Authorization of Appropriations

      Sec. 421. Military personnel.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

      Sec. 501. Assignment of officers to designated positions of importance and responsibility.

      Sec. 502. Enhanced authority for Reserve general and flag officers to serve on active duty.

      Sec. 503. Increase in years of commissioned service threshold for discharge of probationary officers and for use of force shaping authority.

      Sec. 504. Mandatory retirement age for active-duty general and flag officers continued on active duty.

      Sec. 505. Authority for reduced mandatory service obligation for initial appointments of officers in critically short health professional specialties.

      Sec. 506. Expansion of authority for reenlistment of officers in their former enlisted grade.

      Sec. 507. Increase in authorized number of permanent professors at the United States Military Academy.

      Sec. 508. Promotion of career military professors of the Navy.

Subtitle B--Reserve Component Management

      Sec. 511. Retention of military technicians who lose dual status in the Selected Reserve due to combat-related disability.

      Sec. 512. Constructive service credit upon original appointment of Reserve officers in certain health care professions.

      Sec. 513. Mandatory separation of Reserve officers in the grade of lieutenant general or vice admiral after completion of 38 years of commissioned service.

      Sec. 514. Maximum period of temporary Federal recognition of person as Army National Guard officer or Air National Guard officer.

      Sec. 515. Advance notice to members of reserve components of deployment in support of contingency operations.

      Sec. 516. Report on relief from professional licensure and certification requirements for reserve component members on long-term active duty.

Subtitle C--Education and Training

      Sec. 521. Revisions to authority to pay tuition for off-duty training or education.

      Sec. 522. Reduction or elimination of service obligation in an Army Reserve or Army National Guard troop program unit for certain persons selected as medical students at Uniformed Services University of the Health Sciences.

      Sec. 523. Repeal of annual limit on number of ROTC scholarships under Army Reserve and Army National Guard financial assistance program.

      Sec. 524. Treatment of prior active service of members in uniformed medical accession programs.

      Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased increase in cadet strength limit at the United States Military Academy.

      Sec. 526. National Defense University master's degree programs.

      Sec. 527. Authority of the Air University to confer degree of master of science in flight test engineering.

      Sec. 528. Enhancement of education benefits for certain members of reserve components.

      Sec. 529. Extension of period of entitlement to educational assistance for certain members of the Selected Reserve affected by force shaping initiatives.

      Sec. 530. Time limit for use of educational assistance benefit for certain members of reserve components and resumption of benefit.

      Sec. 531. Secretary of Defense evaluation of the adequacy of the degree-granting authorities of certain military universities and educational institutions.

      Sec. 532. Report on success of Army National Guard and Reserve Senior Reserve Officers' Training Corps financial assistance program.

      Sec. 533. Report on utilization of tuition assistance by members of the Armed Forces.

      Sec. 534. Navy Junior Reserve Officers' Training Corps unit for Southold, Mattituck, and Greenport High Schools.

      Sec. 535. Report on transfer of administration of certain educational assistance programs for members of the reserve components.

Subtitle D--Military Justice and Legal Assistance Matters

      Sec. 541. Authority to designate civilian employees of the Federal Government and dependents of deceased members as eligible for legal assistance from Department of Defense legal staff resources.

      Sec. 542. Authority of judges of the United States Court of Appeals for the Armed Forces to administer oaths.

      Sec. 543. Modification of authorities on senior members of the Judge Advocate Generals' Corps.

      Sec. 544. Prohibition against members of the Armed Forces participating in criminal street gangs.

Subtitle E--Military Leave

      Sec. 551. Temporary enhancement of carryover of accumulated leave for members of the Armed Forces.

      Sec. 552. Enhancement of rest and recuperation leave.

Subtitle F--Decorations and Awards

      Sec. 561. Authorization and request for award of Medal of Honor to Leslie H. Sabo, Jr., for acts of valor during the Vietnam War.

      Sec. 562. Authorization and request for award of Medal of Honor to Henry Svehla for acts of valor during the Korean War.

      Sec. 563. Authorization and request for award of Medal of Honor to Woodrow W. Keeble for acts of valor during the Korean War.

      Sec. 564. Authorization and request for award of Medal of Honor to Private Philip G. Shadrach for acts of valor as one of Andrews' Raiders during the Civil War.

      Sec. 565. Authorization and request for award of Medal of Honor to Private George D. Wilson for acts of valor as one of Andrews' Raiders during the Civil War.

Subtitle G--Impact Aid and Defense Dependents Education System

      Sec. 571. Continuation of authority to assist local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

      Sec. 572. Impact aid for children with severe disabilities.

      Sec. 573. Inclusion of dependents of non-Department of Defense employees employed on Federal property in plan relating to force structure changes, relocation of military units, or base closures and realignments.

      Sec. 574. Payment of private boarding school tuition for military dependents in overseas areas not served by defense dependents' education system schools.

Subtitle H--Military Families

      Sec. 581. Department of Defense Military Family Readiness Council and policy and plans for military family readiness.

      Sec. 582. Yellow Ribbon Reintegration Program.

      Sec. 583. Study to enhance and improve support services and programs for families of members of regular and reserve components undergoing deployment.

      Sec. 584. Protection of child custody arrangements for parents who are members of the Armed Forces deployed in support of a contingency operation.

      Sec. 585. Family leave in connection with injured members of the Armed Forces.

      Sec. 586. Family care plans and deferment of deployment of single parent or dual military couples with minor dependents.

      Sec. 587. Education and treatment services for military dependent children with autism.

      Sec. 588. Commendation of efforts of Project Compassion in paying tribute to members of the Armed Forces who have fallen in the service of the United States.

Subtitle I--Other Matters

      Sec. 590. Uniform performance policies for military bands and other musical units.

      Sec. 591. Transportation of remains of deceased members of the Armed Forces and certain other persons.

      Sec. 592. Expansion of number of academies supportable in any State under STARBASE program.

      Sec. 593. Gift acceptance authority.

      Sec. 594. Conduct by members of the Armed Forces and veterans out of uniform during hoisting, lowering, or passing of United States flag.

      Sec. 595. Annual report on cases reviewed by National Committee for Employer Support of the Guard and Reserve.

      Sec. 596. Modification of Certificate of Release or Discharge from Active Duty (DD Form 214).

      Sec. 597. Reports on administrative separations of members of the Armed Forces for personality disorder.

      Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.

      Sec. 599. Recognition of members of the Monuments, Fine Arts, and Archives program of the Civil Affairs and Military Government Sections of the Armed Forces during and following World War II.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

      Sec. 601. Fiscal year 2008 increase in military basic pay.

      Sec. 602. Basic allowance for housing for reserve component members without dependents who attend accession training while maintaining a primary residence.

      Sec. 603. Extension and enhancement of authority for temporary lodging expenses for members of the Armed Forces in areas subject to major disaster declaration or for installations experiencing sudden increase in personnel levels.

      Sec. 604. Income replacement payments for reserve component members experiencing extended and frequent mobilization for active duty service.

      Sec. 605. Midmonth payment of basic pay for contributions of members of the uniformed services participating in Thrift Savings Plan.

Subtitle B--Bonuses and Special and Incentive Pays

      Sec. 610. Correction of lapsed authorities for payment of bonuses, special pays, and similar benefits for members of the uniformed services.

      Sec. 611. Extension of certain bonus and special pay authorities for Reserve forces.

      Sec. 612. Extension of certain bonus and special pay authorities for health care professionals.

      Sec. 613. Extension of special pay and bonus authorities for nuclear officers.

      Sec. 614. Extension of authorities relating to payment of other bonuses and special pays.

      Sec. 615. Increase in incentive special pay and multiyear retention bonus for medical officers.

      Sec. 616. Increase in dental officer additional special pay.

      Sec. 617. Increase in maximum monthly rate of hardship duty pay and authority to provide hardship duty pay in a lump sum.

      Sec. 618. Definition of sea duty for career sea pay to include service as off-cycle crewmembers of multi-crew ships.

      Sec. 619. Reenlistment bonus for members of the Selected Reserve.

      Sec. 620. Availability of Selected Reserve accession bonus for persons who previously served in the Armed Forces for a short period.

      Sec. 621. Availability of nuclear officer continuation pay for officers with more than 26 years of commissioned service.

      Sec. 622. Waiver of years-of-service limitation on receipt of critical skills retention bonus.

      Sec. 623. Accession bonus for participants in the Armed Forces Health Professions Scholarship and Financial Assistance Program.

      Sec. 624. Payment of assignment incentive pay for Reserve members serving in combat zone for more than 22 months.

Subtitle C--Travel and Transportation Allowances

      Sec. 631. Payment of inactive duty training travel costs for certain Selected Reserve members.

      Sec. 632. Survivors of deceased members eligible for transportation to attend burial ceremonies.

      Sec. 633. Allowance for participation of Reserves in electronic screening.

      Sec. 634. Allowance for civilian clothing for members of the Armed Forces traveling in connection with medical evacuation.

      Sec. 635. Payment of moving expenses for Junior Reserve Officers' Training Corps instructors in hard-to-fill positions.

Subtitle D--Retired Pay and Survivor Benefits

      Sec. 641. Expansion of combat-related special compensation eligibility.

      Sec. 642. Inclusion of veterans with service-connected disabilities rated as total by reason of unemployability under termination of phase-in of concurrent receipt of retired pay and veterans' disability compensation.

      Sec. 643. Recoupment of annuity amounts previously paid, but subject to offset for dependency and indemnity compensation.

      Sec. 644. Special survivor indemnity allowance for persons affected by required Survivor Benefit Plan annuity offset for dependency and indemnity compensation.

      Sec. 645. Modification of authority of members of the Armed Forces to designate recipients for payment of death gratuity.

      Sec. 646. Clarification of application of retired pay multiplier percentage to members of the uniformed services with over 30 years of service.

      Sec. 647. Commencement of receipt of non-regular service retired pay by members of the Ready Reserve on active Federal status or active duty for significant periods.

      Sec. 648. Computation of years of service for purposes of retired pay for non-regular service.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

      Sec. 651. Authority to continue commissary and exchange benefits for certain involuntarily separated members of the Armed Forces.

      Sec. 652. Authorization of installment deductions from pay of employees of nonappropriated fund instrumentalities to collect indebtedness to the United States.

Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus Authorities

      Sec. 661. Consolidation of special pay, incentive pay, and bonus authorities of the uniformed services.

      Sec. 662. Transitional provisions.

Subtitle G--Other Matters

      Sec. 671. Referral bonus authorities.

      Sec. 672. Expansion of education loan repayment program for members of the Selected Reserve.

      Sec. 673. Ensuring entry into United States after time abroad for permanent resident alien military spouses and children.

      Sec. 674. Overseas naturalization for military spouses and children.

      Sec. 675. Modification of amount of back pay for members of Navy and Marine Corps selected for promotion while interned as prisoners of war during World War II to take into account changes in Consumer Price Index.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Improvements to Military Health Benefits

      Sec. 701. One-year extension of prohibition on increases in certain health care costs for members of the uniformed services.

      Sec. 702. Temporary prohibition on increase in copayments under retail pharmacy system of pharmacy benefits program.

      Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal procurement of pharmaceuticals.

      Sec. 704. Stipend for members of reserve components for health care for certain dependents.

      Sec. 705. Authority for expansion of persons eligible for continued health benefits coverage.

      Sec. 706. Continuation of eligibility for TRICARE Standard coverage for certain members of the Selected Reserve.

      Sec. 707. Extension of pilot program for health care delivery.

      Sec. 708. Inclusion of mental health care in definition of health care and report on mental health care services.

Subtitle B--Studies and Reports

      Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE Extra.

      Sec. 712. Report on training in preservation of remains under combat or combat-related conditions.

      Sec. 713. Report on patient satisfaction surveys.

      Sec. 714. Report on medical physical examinations of members of the Armed Forces before their deployment.

      Sec. 715. Report and study on multiple vaccinations of members of the Armed Forces.

      Sec. 716. Review of gender- and ethnic group-specific mental health services and treatment for members of the Armed Forces.

      Sec. 717. Licensed mental health counselors and the TRICARE program.

      Sec. 718. Report on funding of the Department of Defense for health care.

Subtitle C--Other Matters

      Sec. 721. Prohibition on conversion of military medical and dental positions to civilian medical and dental positions.

      Sec. 722. Establishment of Joint Pathology Center.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

      Sec. 800. Short title.

Subtitle A--Acquisition Policy and Management

      Sec. 801. Internal controls for procurements on behalf of the Department of Defense by certain non-Defense agencies.

      Sec. 802. Lead systems integrators.

      Sec. 803. Reinvestment in domestic sources of strategic materials.

      Sec. 804. Clarification of the protection of strategic materials critical to national security.

      Sec. 805. Procurement of commercial services.

      Sec. 806. Specification of amounts requested for procurement of contract services.

      Sec. 807. Inventories and reviews of contracts for services.

      Sec. 808. Independent management reviews of contracts for services.

      Sec. 809. Implementation and enforcement of requirements applicable to undefinitized contractual actions.

      Sec. 810. Clarification of limited acquisition authority for Special Operations Command.

Subtitle B--Provisions Relating to Major Defense Acquisition Programs

      Sec. 811. Requirements applicable to multiyear contracts for the procurement of major systems of the Department of Defense.

      Sec. 812. Changes to Milestone B certifications.

      Sec. 813. Comptroller General report on Department of Defense organization and structure for major defense acquisition programs.

      Sec. 814. Clarification of submission of cost or pricing data on noncommercial modifications of commercial items.

      Sec. 815. Clarification of rules regarding the procurement of commercial items.

      Sec. 816. Review of systemic deficiencies on major defense acquisition programs.

      Sec. 817. Investment strategy for major defense acquisition programs.

      Sec. 818. Report on implementation of recommendations on total ownership cost for major weapon systems.

Subtitle C--Amendments to General Contracting Authorities, Procedures, and Limitations

      Sec. 821. Plan for restricting Government-unique contract clauses on commercial contracts.

      Sec. 822. Extension of authority for use of simplified acquisition procedures for certain commercial items.

      Sec. 823. Five-year extension of authority to carry out certain prototype projects.

      Sec. 824. Exemption of Special Operations Command from certain requirements for certain contracts relating to vessels, aircraft, and combat vehicles.

      Sec. 825. Provision of authority to maintain equipment to unified combatant command for joint warfighting.

      Sec. 826. Market research.

      Sec. 827. Modification of competition requirements for purchases from Federal Prison Industries.

      Sec. 828. Multiyear contract authority for electricity from renewable energy sources.

      Sec. 829. Procurement of fire resistant rayon fiber for the production of uniforms from foreign sources.

      Sec. 830. Comptroller General review of noncompetitive awards of congressional and executive branch interest items.

Subtitle D--Accountability in Contracting

      Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.

      Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts and contracting processes in Iraq and Afghanistan.

      Sec. 843. Enhanced competition requirements for task and delivery order contracts.

      Sec. 844. Public disclosure of justification and approval documents for noncompetitive contracts.

      Sec. 845. Disclosure of Government contractor audit findings.

      Sec. 846. Protection for contractor employees from reprisal for disclosure of certain information.

      Sec. 847. Requirements for senior Department of Defense officials seeking employment with defense contractors.

      Sec. 848. Report on contractor ethics programs of Major Defense contractors.

      Sec. 849. Contingency contracting training for personnel outside the acquisition workforce and evaluations of Army Commission recommendations.

Subtitle E--Acquisition Workforce Provisions

      Sec. 851. Requirement for section on defense acquisition workforce in strategic human capital plan.

      Sec. 852. Department of Defense Acquisition Workforce Development Fund.

      Sec. 853. Extension of authority to fill shortage category positions for certain Federal acquisition positions.

      Sec. 854. Repeal of sunset of acquisition workforce training fund.

      Sec. 855. Federal acquisition workforce improvements.

Subtitle F--Contracts in Iraq and Afghanistan

      Sec. 861. Memorandum of understanding on matters relating to contracting.

      Sec. 862. Contractors performing private security functions in areas of combat operations.

      Sec. 863. Comptroller General reviews and reports on contracting in Iraq and Afghanistan.

      Sec. 864. Definitions and other general provisions.

Subtitle G--Defense Materiel Readiness Board

      Sec. 871. Establishment of Defense Materiel Readiness Board.

      Sec. 872. Critical materiel readiness shortfalls.

Subtitle H--Other Matters

      Sec. 881. Clearinghouse for rapid identification and dissemination of commercial information technologies.

      Sec. 882. Authority to license certain military designations and likenesses of weapons systems to toy and hobby manufacturers.

      Sec. 883. Modifications to limitation on contracts to acquire military flight simulator.

      Sec. 884. Requirements relating to waivers of certain domestic source limitations relating to specialty metals.

      Sec. 885. Telephone services for military personnel serving in combat zones.

      Sec. 886. Enhanced authority to acquire products and services produced in Iraq and Afghanistan.

      Sec. 887. Defense Science Board review of Department of Defense policies and procedures for the acquisition of information technology.

      Sec. 888. Green procurement policy.

      Sec. 889. Comptroller General review of use of authority under the Defense Production Act of 1950.

      Sec. 890. Prevention of export control violations.

      Sec. 891. Procurement goal for Native Hawaiian-serving institutions and Alaska Native-serving institutions.

      Sec. 892. Competition for procurement of small arms supplied to Iraq and Afghanistan.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Management

      Sec. 901. Repeal of limitation on major Department of Defense headquarters activities personnel and related report.

      Sec. 902. Flexibility to adjust the number of deputy chiefs and assistant chiefs.

      Sec. 903. Change in eligibility requirements for appointment to Department of Defense leadership positions.

      Sec. 904. Management of the Department of Defense.

      Sec. 905. Revision in guidance relating to combatant command acquisition authority.

      Sec. 906. Department of Defense Board of Actuaries.

      Sec. 907. Modification of background requirement of individuals appointed as Under Secretary of Defense for Acquisition, Technology, and Logistics.

      Sec. 908. Assistant Secretaries of the military departments for acquisition matters; principal military deputies.

      Sec. 909. Sense of Congress on term of Office of the Director of Operational Test and Evaluation.

Subtitle B--Space Activities

      Sec. 911. Space protection strategy.

      Sec. 912. Biennial report on management of space cadre within the Department of Defense.

      Sec. 913. Additional report on oversight of acquisition for defense space programs.

Subtitle C--Chemical Demilitarization Program

      Sec. 921. Chemical demilitarization citizens advisory commissions.

      Sec. 922. Sense of Congress on completion of destruction of United States chemical weapons stockpile.

      Sec. 923. Repeal of certain qualifications requirement for director of chemical demilitarization management organization.

      Sec. 924. Modification of termination of assistance to State and local governments after completion of the destruction of the United States chemical weapons stockpile.

Subtitle D--Intelligence-Related Matters

      Sec. 931. Technical amendments to title 10, United States Code, arising from enactment of the Intelligence Reform and Terrorism Prevention Act of 2004.

Subtitle E--Roles and Missions Analysis

      Sec. 941. Requirement for quadrennial roles and missions review.

      Sec. 942. Joint Requirements Oversight Council additional duties relating to core mission areas.

      Sec. 943. Requirement for certification of major systems prior to technology development.

      Sec. 944. Presentation of future-years mission budget by core mission area.

Subtitle F--Other Matters

      Sec. 951. Department of Defense consideration of effect of climate change on Department facilities, capabilities, and missions.

      Sec. 952. Interagency policy coordination.

      Sec. 953. Expansion of employment creditable under service agreements under National Security Education Program.

      Sec. 954. Board of Regents for the Uniformed Services University of the Health Sciences.

      Sec. 955. Establishment of Department of Defense School of Nursing.

      Sec. 956. Inclusion of commanders of Western Hemisphere combatant commands in Board of Visitors of Western Hemisphere Institute for Security Cooperation.

      Sec. 957. Comptroller General assessment of reorganization of the Office of the Under Secretary of Defense for Policy.

      Sec. 958. Report on foreign language proficiency.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

      Sec. 1001. General transfer authority.

      Sec. 1002. United States contribution to NATO common-funded budgets in fiscal year 2008.

      Sec. 1003. Authorization of additional emergency supplemental appropriations for fiscal year 2007.

      Sec. 1004. Modification of fiscal year 2007 general transfer authority.

      Sec. 1005. Financial management transformation initiative for the Defense Agencies.

      Sec. 1006. Repeal of requirement for two-year budget cycle for the Department of Defense.

Subtitle B--Policy Relating to Vessels and Shipyards

      Sec. 1011. Limitation on leasing of vessels.

      Sec. 1012. Policy relating to major combatant vessels of the strike forces of the United States Navy.

Subtitle C--Counter-Drug Activities

      Sec. 1021. Extension of authority for joint task forces to provide support to law enforcement agencies conducting counter-terrorism activities.

      Sec. 1022. Expansion of authority to provide additional support for counter-drug activities in certain foreign countries.

      Sec. 1023. Report on counternarcotics assistance for the Government of Haiti.

Subtitle D--Miscellaneous Authorities and Limitations

      Sec. 1031. Provision of Air Force support and services to foreign military and state aircraft.

      Sec. 1032. Department of Defense participation in Strategic Airlift Capability Partnership.

      Sec. 1033. Improved authority to provide rewards for assistance in combating terrorism.

      Sec. 1034. Support for non-Federal development and testing of material for chemical agent defense.

      Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related parts.

Subtitle E--Reports

      Sec. 1041. Extension and modification of report relating to hardened and deeply buried targets.

      Sec. 1042. Report on joint modeling and simulation activities.

      Sec. 1043. Renewal of submittal of plans for prompt global strike capability.

      Sec. 1044. Report on workforce required to support the nuclear missions of the Navy and the Department of Energy.

      Sec. 1045. Comptroller General report on Defense Finance and Accounting Service response to Butterbaugh v. Department of Justice.

      Sec. 1046. Study on size and mix of airlift force.

      Sec. 1047. Report on feasibility of establishing a domestic military aviation national training center.

      Sec. 1048. Limited field user evaluations for combat helmet pad suspension systems.

      Sec. 1049. Study on national security interagency system.

      Sec. 1050. Report on solid rocket motor industrial base.

      Sec. 1051. Reports on establishment of a memorial for members of the Armed Forces who died in the air crash in Bakers Creek, Australia, and establishment of other memorials in Arlington National Cemetery.

Subtitle F--Other Matters

      Sec. 1061. Reimbursement for National Guard support provided to Federal agencies.

      Sec. 1062. Congressional Commission on the Strategic Posture of the United States.

      Sec. 1063. Technical and clerical amendments.

      Sec. 1064. Repeal of certification requirement.

      Sec. 1065. Maintenance of capability for space-based nuclear detection.

      Sec. 1066. Sense of Congress regarding detainees at Naval Station, Guantanamo Bay, Cuba.

      Sec. 1067. A report on transferring individuals detained at Naval Station, Guantanamo Bay, Cuba.

      Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 relating to use of Armed Forces in major public emergencies.

      Sec. 1069. Standards required for entry to military installations in United States.

      Sec. 1070. Revised nuclear posture review.

      Sec. 1071. Termination of Commission on the Implementation of the New Strategic Posture of the United States.

      Sec. 1072. Security clearances; limitations.

      Sec. 1073. Improvements in the process for the issuance of security clearances.

      Sec. 1074. Protection of certain individuals.

      Sec. 1075. Modification of authorities on Commission to Assess the Threat to the United States from Electromagnetic Pulse Attack.

      Sec. 1076. Sense of Congress on Small Business Innovation Research Program.

      Sec. 1077. Revision of proficiency flying definition.

      Sec. 1078. Qualifications for public aircraft status of aircraft under contract with the Armed Forces.

      Sec. 1079. Communications with the Committees on Armed Services of the Senate and the House of Representatives.

      Sec. 1080. Retention of reimbursement for provision of reciprocal fire protection services.

      Sec. 1081. Pilot program on commercial fee-for-service air refueling support for the Air Force.

      Sec. 1082. Advisory panel on Department of Defense capabilities for support of civil authorities after certain incidents.

      Sec. 1083. Terrorism exception to immunity.

TITLE XI--CIVILIAN PERSONNEL MATTERS

      Sec. 1101. Extension of authority to waive annual limitation on total compensation paid to Federal civilian employees working overseas under areas of United States Central Command.

      Sec. 1102. Continuation of life insurance coverage for Federal employees called to active duty.

      Sec. 1103. Transportation of dependents, household effects, and personal property to former home following death of Federal employee where death resulted from disease or injury incurred in the Central Command area of responsibility.

      Sec. 1104. Special benefits for civilian employees assigned on deployment temporary change of station.

      Sec. 1105. Death gratuity authorized for Federal employees.

      Sec. 1106. Modifications to the National Security Personnel System.

      Sec. 1107. Requirement for full implementation of personnel demonstration project.

      Sec. 1108. Authority for inclusion of certain Office of Defense Research and Engineering positions in experimental personnel program for scientific and technical personnel.

      Sec. 1109. Pilot program for the temporary assignment of information technology personnel to private sector organizations.

      Sec. 1110. Compensation for Federal wage system employees for certain travel hours.

      Sec. 1111. Travel compensation for wage grade personnel.

      Sec. 1112. Accumulation of annual leave by senior level employees.

      Sec. 1113. Uniform allowances for civilian employees.

      Sec. 1114. Flexibility in setting pay for employees who move from a Department of Defense or Coast Guard nonappropriated fund instrumentality position to a position in the General Schedule pay system.

      Sec. 1115. Retirement service credit for service as cadet or midshipman at a military service academy.

      Sec. 1116. Authorization for increased compensation for faculty and staff of the Uniformed Services University of the Health Sciences.

      Sec. 1117. Report on establishment of a scholarship program for civilian mental health professionals.

TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

Subtitle A--Assistance and Training

      Sec. 1201. Military-to-military contacts and comparable activities.

      Sec. 1202. Authority for support of military operations to combat terrorism.

      Sec. 1203. Medical care and temporary duty travel expenses for liaison officers of certain foreign nations.

      Sec. 1204. Extension and expansion of Department of Defense authority to participate in multinational military centers of excellence.

      Sec. 1205. Reauthorization of Commanders' Emergency Response Program.

      Sec. 1206. Authority to build the capacity of the Pakistan Frontier Corps.

      Sec. 1207. Authority to equip and train foreign personnel to assist in accounting for missing United States Government personnel.

      Sec. 1208. Authority to provide automatic identification system data on maritime shipping to foreign countries and international organizations.

      Sec. 1209. Report on foreign-assistance related programs carried out by the Department of Defense.

      Sec. 1210. Extension and enhancement of authority for security and stabilization assistance.

      Sec. 1211. Government Accountability Office report on Global Peace Operations Initiative.

      Sec. 1212. Repeal of limitations on military assistance under the American Servicemembers' Protection Act of 2002.

Subtitle B--Matters Relating to Iraq and Afghanistan

      Sec. 1221. Modification of authorities relating to the Office of the Special Inspector General for Iraq Reconstruction.

      Sec. 1222. Limitation on availability of funds for certain purposes relating to Iraq.

      Sec. 1223. Report on United States policy and military operations in Iraq.

      Sec. 1224. Report on a comprehensive set of performance indicators and measures for progress toward military and political stability in Iraq.

      Sec. 1225. Report on support from Iran for attacks against coalition forces in Iraq.

      Sec. 1226. Sense of Congress on the consequences of a failed state in Iraq.

      Sec. 1227. Sense of Congress on federalism in Iraq.

      Sec. 1228. Tracking and monitoring of defense articles provided to the Government of Iraq and other individuals and groups in Iraq.

      Sec. 1229. Special Inspector General for Afghanistan Reconstruction.

      Sec. 1230. Report on progress toward security and stability in Afghanistan.

      Sec. 1231. United States plan for sustaining the Afghanistan National Security Forces.

      Sec. 1232. Report on enhancing security and stability in the region along the border of Afghanistan and Pakistan.

      Sec. 1233. Reimbursement of certain coalition nations for support provided to United States military operations.

      Sec. 1234. Logistical support for coalition forces supporting operations in Iraq and Afghanistan.

Subtitle C--Iraq Refugee Crisis

      Sec. 1241. Short title.

      Sec. 1242. Processing mechanisms.

      Sec. 1243. United States refugee program processing priorities.

      Sec. 1244. Special immigrant status for certain Iraqis.

      Sec. 1245. Senior Coordinator for Iraqi Refugees and Internally Displaced Persons.

      Sec. 1246. Countries with significant populations of Iraqi refugees.

      Sec. 1247. Motion to reopen denial or termination of asylum.

      Sec. 1248. Reports.

      Sec. 1249. Authorization of appropriations.

Subtitle D--Other Authorities and Limitations

      Sec. 1251. Cooperative opportunities documents under cooperative research and development agreements with NATO organizations and other allied and friendly foreign countries.

      Sec. 1252. Extension and expansion of temporary authority to use acquisition and cross-servicing agreements to lend military equipment for personnel protection and survivability.

      Sec. 1253. Acceptance of funds from the Government of Palau for costs of United States military Civic Action Team in Palau.

      Sec. 1254. Repeal of requirement relating to North Korea.

      Sec. 1255. Justice for Osama bin Laden and other leaders of al Qaeda.

      Sec. 1256. Extension of Counterproliferation Program Review Committee.

      Sec. 1257. Sense of Congress on the Western Hemisphere Institute for Security Cooperation.

      Sec. 1258. Sense of Congress on Iran.

Subtitle E--Reports

      Sec. 1261. One-year extension of update on report on claims relating to the bombing of the Labelle Discotheque.

      Sec. 1262. Report on United States policy toward Darfur, Sudan.

      Sec. 1263. Inclusion of information on asymmetric capabilities in annual report on military power of the People's Republic of China.

      Sec. 1264. Report on application of the Uniform Code of Military Justice to civilians accompanying the Armed Forces during a time of declared war or contingency operation.

      Sec. 1265. Report on family reunions between United States citizens and their relatives in North Korea.

      Sec. 1266. Reports on prevention of mass atrocities.

      Sec. 1267. Report on threats to the United States from ungoverned areas.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER SOVIET UNION

      Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.

      Sec. 1302. Funding allocations.

      Sec. 1303. Specification of Cooperative Threat Reduction programs in states outside the former Soviet Union.

      Sec. 1304. Repeal of restrictions on assistance to states of the former Soviet Union for Cooperative Threat Reduction.

      Sec. 1305. Modification of authority to use Cooperative Threat Reduction funds outside the former Soviet Union.

      Sec. 1306. New initiatives for the Cooperative Threat Reduction Program.

      Sec. 1307. Report relating to chemical weapons destruction at Shchuch'ye, Russia.

      Sec. 1308. National Academy of Sciences study of prevention of proliferation of biological weapons.

TITLE XIV--OTHER AUTHORIZATIONS

Subtitle A--Military Programs

      Sec. 1401. Working capital funds.

      Sec. 1402. National Defense Sealift Fund.

      Sec. 1403. Defense Health Program.

      Sec. 1404. Chemical agents and munitions destruction, Defense.

      Sec. 1405. Drug Interdiction and Counter-Drug Activities, Defense-wide.

      Sec. 1406. Defense Inspector General.

Subtitle B--National Defense Stockpile

      Sec. 1411. Authorized uses of National Defense Stockpile funds.

      Sec. 1412. Revisions to required receipt objectives for previously authorized disposals from the National Defense Stockpile.

      Sec. 1413. Disposal of ferromanganese.

      Sec. 1414. Disposal of chrome metal.

Subtitle C--Armed Forces Retirement Home

      Sec. 1421. Authorization of appropriations for Armed Forces Retirement Home.

      Sec. 1422. Administration and oversight of the Armed Forces Retirement Home.

TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

      Sec. 1501. Purpose.

      Sec. 1502. Army procurement.

      Sec. 1503. Navy and Marine Corps procurement.

      Sec. 1504. Air Force procurement.

      Sec. 1505. Joint Improvised Explosive Device Defeat Fund.

      Sec. 1506. Defense-wide activities procurement.

      Sec. 1507. Research, development, test, and evaluation.

      Sec. 1508. Operation and maintenance.

      Sec. 1509. Working capital funds.

      Sec. 1510. Other Department of Defense programs.

      Sec. 1511. Iraq Freedom Fund.

      Sec. 1512. Iraq Security Forces Fund.

      Sec. 1513. Afghanistan Security Forces Fund.

      Sec. 1514. Military personnel.

      Sec. 1515. Strategic Readiness Fund.

      Sec. 1516. Treatment as additional authorizations.

      Sec. 1517. Special transfer authority.

TITLE XVI--WOUNDED WARRIOR MATTERS

      Sec. 1601. Short title.

      Sec. 1602. General definitions.

      Sec. 1603. Consideration of gender-specific needs of recovering service members and veterans.

Subtitle A--Policy on Improvements to Care, Management, and Transition of Recovering Service Members

      Sec. 1611. Comprehensive policy on improvements to care, management, and transition of recovering service members.

      Sec. 1612. Medical evaluations and physical disability evaluations of recovering service members.

      Sec. 1613. Return of recovering service members to active duty in the Armed Forces.

      Sec. 1614. Transition of recovering service members from care and treatment through the Department of Defense to care, treatment, and rehabilitation through the Department of Veterans Affairs.

      Sec. 1615. Reports.

      Sec. 1616. Establishment of a wounded warrior resource center.

      Sec. 1617. Notification to Congress of hospitalization of combat wounded service members.

      Sec. 1618. Comprehensive plan on prevention, diagnosis, mitigation, treatment, and rehabilitation of, and research on, traumatic brain injury, post-traumatic stress disorder, and other mental health conditions in members of the Armed Forces.

Subtitle B--Centers of Excellence in the Prevention, Diagnosis, Mitigation, Treatment, and Rehabilitation of Traumatic Brain Injury, Post-Traumatic Stress Disorder, and Eye Injuries

      Sec. 1621. Center of excellence in the prevention, diagnosis, mitigation, treatment, and rehabilitation of traumatic brain injury.

      Sec. 1622. Center of excellence in prevention, diagnosis, mitigation, treatment, and rehabilitation of post-traumatic stress disorder and other mental health conditions.

      Sec. 1623. Center of excellence in prevention, diagnosis, mitigation, treatment, and rehabilitation of military eye injuries.

      Sec. 1624. Report on establishment of centers of excellence.

Subtitle C--Health Care Matters

      Sec. 1631. Medical care and other benefits for members and former members of the Armed Forces with severe injuries or illnesses.

      Sec. 1632. Reimbursement of travel expenses of retired members with combat-related disabilities for follow-on specialty care, services, and supplies.

      Sec. 1633. Respite care and other extended care benefits for members of the uniformed services who incur a serious injury or illness on active duty.

      Sec. 1634. Reports.

      Sec. 1635. Fully interoperable electronic personal health information for the Department of Defense and Department of Veterans Affairs.

      Sec. 1636. Enhanced personnel authorities for the Department of Defense for health care professionals for care and treatment of wounded and injured members of the Armed Forces.

      Sec. 1637. Continuation of transitional health benefits for members of the Armed Forces pending resolution of service-related medical conditions.

Subtitle D--Disability Matters

      Sec. 1641. Utilization of veterans' presumption of sound condition in establishing eligibility of members of the Armed Forces for retirement for disability.

      Sec. 1642. Requirements and limitations on Department of Defense determinations of disability with respect to members of the Armed Forces.

      Sec. 1643. Review of separation of members of the Armed Forces separated from service with a disability rating of 20 percent disabled or less.

      Sec. 1644. Authorization of pilot programs to improve the disability evaluation system for members of the Armed Forces.

      Sec. 1645. Reports on Army action plan in response to deficiencies in the Army physical disability evaluation system.

      Sec. 1646. Enhancement of disability severance pay for members of the Armed Forces.

      Sec. 1647. Assessments of continuing utility and future role of temporary disability retired list.

      Sec. 1648. Standards for military medical treatment facilities, specialty medical care facilities, and military quarters housing patients and annual report on such facilities.

      Sec. 1649. Reports on Army Medical Action Plan in response to deficiencies identified at Walter Reed Army Medical Center, District of Columbia.

      Sec. 1650. Required certifications in connection with closure of Walter Reed Army Medical Center, District of Columbia.

      Sec. 1651. Handbook for members of the Armed Forces on compensation and benefits available for serious injuries and illnesses.

Subtitle E--Studies and Reports

      Sec. 1661. Study on physical and mental health and other readjustment needs of members and former members of the Armed Forces who deployed in Operation Iraqi Freedom and Operation Enduring Freedom and their families.

      Sec. 1662. Access of recovering service members to adequate outpatient residential facilities.

      Sec. 1663. Study and report on support services for families of recovering service members.

      Sec. 1664. Report on traumatic brain injury classifications.

      Sec. 1665. Evaluation of the Polytrauma Liaison Officer/Non-Commissioned Officer program.

Subtitle F--Other Matters

      Sec. 1671. Prohibition on transfer of resources from medical care.

      Sec. 1672. Medical care for families of members of the Armed Forces recovering from serious injuries or illnesses.

      Sec. 1673. Improvement of medical tracking system for members of the Armed Forces deployed overseas.

      Sec. 1674. Guaranteed funding for Walter Reed Army Medical Center, District of Columbia.

      Sec. 1675. Use of leave transfer program by wounded veterans who are Federal employees.

      Sec. 1676. Moratorium on conversion to contractor performance of Department of Defense functions at military medical facilities.

TITLE XVII--VETERANS MATTERS

      Sec. 1701. Sense of Congress on Department of Veterans Affairs efforts in the rehabilitation and reintegration of veterans with traumatic brain injury.

      Sec. 1702. Individual rehabilitation and community reintegration plans for veterans and others with traumatic brain injury.

      Sec. 1703. Use of non-Department of Veterans Affairs facilities for implementation of rehabilitation and community reintegration plans for traumatic brain injury.

      Sec. 1704. Research, education, and clinical care program on traumatic brain injury.

      Sec. 1705. Pilot program on assisted living services for veterans with traumatic brain injury.

      Sec. 1706. Provision of age-appropriate nursing home care.

      Sec. 1707. Extension of period of eligibility for health care for veterans of combat service during certain periods of hostilities and war.

      Sec. 1708. Service-connection and assessments for mental health conditions in veterans.

      Sec. 1709. Modification of requirements for furnishing outpatient dental services to veterans with service-connected dental conditions or disabilities.

      Sec. 1710. Clarification of purpose of outreach services program of Department of Veterans Affairs.

      Sec. 1711. Designation of fiduciary or trustee for purposes of Traumatic Servicemembers' Group Life Insurance.

TITLE XVIII--NATIONAL GUARD BUREAU MATTERS AND RELATED MATTERS

      Sec. 1801. Short title.

Subtitle A--National Guard Bureau

      Sec. 1811. Appointment, grade, duties, and retirement of the Chief of the National Guard Bureau.

      Sec. 1812. Establishment of National Guard Bureau as joint activity of the Department of Defense.

      Sec. 1813. Enhancement of functions of the National Guard Bureau.

      Sec. 1814. Requirement for Secretary of Defense to prepare plan for response to natural disasters and terrorist events.

      Sec. 1815. Determination of Department of Defense civil support requirements.

Subtitle B--Additional Reserve Component Enhancement

      Sec. 1821. United States Northern Command.

      Sec. 1822. Council of Governors.

      Sec. 1823. Plan for Reserve Forces Policy Board.

      Sec. 1824. High-level positions authorized or required to be held by reserve component general or flag officers.

      Sec. 1825. Retirement age and years of service limitations on certain reserve general and flag officers.

      Sec. 1826. Additional reporting requirements relating to National Guard equipment.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

      Sec. 2001. Short title.

      Sec. 2002. Expiration of authorizations and amounts required to be specified by law.

TITLE XXI--ARMY

      Sec. 2101. Authorized Army construction and land acquisition projects.

      Sec. 2102. Family housing.

      Sec. 2103. Improvements to military family housing units.

      Sec. 2104. Authorization of appropriations, Army.

      Sec. 2105. Termination of authority to carry out fiscal year 2007 Army projects for which funds were not appropriated.

      Sec. 2106. Technical amendments to Military Construction Authorization Act for Fiscal Year 2007.

      Sec. 2107. Modification of authority to carry out certain fiscal year 2006 project.

      Sec. 2108. Extension of authorization of certain fiscal year 2005 project.

      Sec. 2109. Ground lease, SOUTHCOM headquarters facility, Miami-Doral, Florida.

TITLE XXII--NAVY

      Sec. 2201. Authorized Navy construction and land acquisition projects.

      Sec. 2202. Family housing.

      Sec. 2203. Improvements to military family housing units.

      Sec. 2204. Authorization of appropriations, Navy.

      Sec. 2205. Termination of authority to carry out fiscal year 2007 Navy projects for which funds were not appropriated.

      Sec. 2206. Modification of authority to carry out certain fiscal year 2005 project.

      Sec. 2207. Repeal of authorization for construction of Navy Outlying Landing Field, Washington County, North Carolina.

TITLE XXIII--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. Authorization of appropriations, Air Force.

      Sec. 2305. Termination of authority to carry out fiscal year 2007 Air Force projects for which funds were not appropriated.

      Sec. 2306. Modification of authority to carry out certain fiscal year 2006 projects.

      Sec. 2307. Extension of authorizations of certain fiscal year 2005 projects.

      Sec. 2308. Extension of authorizations of certain fiscal year 2004 projects.

TITLE XXIV--DEFENSE AGENCIES

      Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

      Sec. 2402. Energy conservation projects.

      Sec. 2403. Authorization of appropriations, Defense Agencies.

      Sec. 2404. Termination or modification of authority to carry out certain fiscal year 2007 Defense Agencies projects.

      Sec. 2405. Munitions demilitarization facilities, Blue Grass Army Depot, Kentucky, and Pueblo Chemical Activity, Colorado.

      Sec. 2406. Extension of authorizations of certain fiscal year 2005 projects.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

      Sec. 2501. Authorized NATO construction and land acquisition projects.

      Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

      Sec. 2601. Authorized Army National Guard construction and land acquisition projects.

      Sec. 2602. Authorized Army Reserve construction and land acquisition projects.

      Sec. 2603. Authorized Navy Reserve and Marine Corps Reserve construction and land acquisition projects.

      Sec. 2604. Authorized Air National Guard construction and land acquisition projects.

      Sec. 2605. Authorized Air Force Reserve construction and land acquisition projects.

      Sec. 2606. Authorization of appropriations, National Guard and Reserve.

      Sec. 2607. Termination of authority to carry out fiscal year 2007 Guard and Reserve projects for which funds were not appropriated.

      Sec. 2608. Modification of authority to carry out fiscal year 2006 Air Force Reserve construction and acquisition projects.

      Sec. 2609. Extension of authorizations of certain fiscal year 2005 projects.

      Sec. 2610. Extension of authorizations of certain fiscal year 2004 projects.

TITLE XXVII--BASE CLOSURE AND REALIGNMENT ACTIVITIES

      Sec. 2701. Authorization of appropriations for base closure and realignment activities funded through Department of Defense Base Closure Account 1990.

      Sec. 2702. Authorized base closure and realignment activities funded through Department of Defense Base Closure Account 2005.

      Sec. 2703. Authorization of appropriations for base closure and realignment activities funded through Department of Defense Base Closure Account 2005.

      Sec. 2704. Authorized cost and scope of work variations for military construction and military family housing projects related to base closures and realignments.

      Sec. 2705. Transfer of funds from Department of Defense Base Closure Account 2005 to Department of Defense Housing Funds.

      Sec. 2706. Comprehensive accounting of funding required to ensure timely implementation of 2005 Defense Base Closure and Realignment Commission recommendations.

      Sec. 2707. Relocation of units from Roberts United States Army Reserve Center and Navy-Marine Corps Reserve Center, Baton Rouge, Louisiana.

      Sec. 2708. Acquisition of real property, Fort Belvoir, Virginia, as part of the realignment of the installation.

      Sec. 2709. Report on availability of traffic infrastructure and facilities to support base realignment.

TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing Changes

      Sec. 2801. Authority to use operation and maintenance funds for construction projects outside the United States.

      Sec. 2802. Clarification of requirement for authorization of military construction.

      Sec. 2803. Increase in thresholds for unspecified minor military construction projects.

      Sec. 2804. Temporary authority to support revitalization of Department of Defense laboratories through unspecified minor military construction projects.

      Sec. 2805. Extension of authority to accept equalization payments for facility exchanges.

      Sec. 2806. Modifications of authority to lease military family housing.

      Sec. 2807. Expansion of authority to exchange reserve component facilities.

      Sec. 2808. Limitation on use of alternative authority for acquisition and improvement of military housing for privatization of temporary lodging facilities.

      Sec. 2809. Two-year extension of temporary program to use minor military construction authority for construction of child development centers.

      Sec. 2810. Report on housing privatization initiatives.

Subtitle B--Real Property and Facilities Administration

      Sec. 2821. Requirement to report real property transactions resulting in annual costs of more than $750,000.

      Sec. 2822. Continued consolidation of real property provisions without substantive change.

      Sec. 2823. Modification of authority to lease non-excess property of the military departments.

      Sec. 2824. Cooperative agreement authority for management of cultural resources on certain sites outside military installations.

      Sec. 2825. Agreements to limit encroachments and other constraints on military training, testing, and operations.

      Sec. 2826. Expansion to all military departments of Army pilot program for purchase of certain municipal services for military installations.

      Sec. 2827. Prohibition on commercial flights into Selfridge Air National Guard Base.

      Sec. 2828. Sense of Congress on Department of Defense actions to protect installations, ranges, and military airspace from encroachment.

      Sec. 2829. Reports on Army and Marine Corps operational ranges.

      Sec. 2830. Niagara Air Reserve Base, New York, basing report.

      Sec. 2831. Report on the Pinon Canyon Maneuver Site, Colorado.

Subtitle C--Land Conveyances

      Sec. 2841. Modification of conveyance authority, Marine Corps Base, Camp Pendleton, California.

      Sec. 2842. Grant of easement, Eglin Air Force Base, Florida.

      Sec. 2843. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.

      Sec. 2844. Modification of lease of property, National Flight Academy at the National Museum of Naval Aviation, Naval Air Station, Pensacola, Florida.

      Sec. 2845. Land exchange, Detroit, Michigan.

      Sec. 2846. Transfer of jurisdiction, former Nike missile site, Grosse Ile, Michigan.

      Sec. 2847. Modification to land conveyance authority, Fort Bragg, North Carolina.

      Sec. 2848. Land conveyance, Lewis and Clark United States Army Reserve Center, Bismarck, North Dakota.

      Sec. 2849. Land exchange, Fort Hood, Texas.

Subtitle D--Energy Security

      Sec. 2861. Repeal of congressional notification requirement regarding cancellation ceiling for Department of Defense energy savings performance contracts.

      Sec. 2862. Definition of alternative fueled vehicle.

      Sec. 2863. Use of energy efficient lighting fixtures and bulbs in Department of Defense facilities.

      Sec. 2864. Reporting requirements relating to renewable energy use by Department of Defense to meet Department electricity needs.

Subtitle E--Other Matters

      Sec. 2871. Revised deadline for transfer of Arlington Naval Annex to Arlington National Cemetery.

      Sec. 2872. Transfer of jurisdiction over Air Force Memorial to Department of the Air Force.

      Sec. 2873. Report on plans to replace the monument at the Tomb of the Unknowns at Arlington National Cemetery, Virginia.

      Sec. 2874. Increased authority for repair, restoration, and preservation of Lafayette Escadrille Memorial, Marnes-la-Coquette, France.

      Sec. 2875. Addition of Woonsocket local protection project.

      Sec. 2876. Repeal of moratorium on improvements at Fort Buchanan, Puerto Rico.

      Sec. 2877. Establishment of national military working dog teams monument on suitable military installation.

      Sec. 2878. Report required prior to removal of missiles from 564th Missile Squadron.

      Sec. 2879. Report on condition of schools under jurisdiction of Department of Defense Education Activity.

      Sec. 2880. Report on facilities and operations of Darnall Army Medical Center, Fort Hood Military Reservation, Texas.

      Sec. 2881. Report on feasibility of establishing a regional disaster response center at Kelly Air Field, San Antonio, Texas.

      Sec. 2882. Naming of housing facility at Fort Carson, Colorado, in honor of the Honorable Joel Hefley, a former member of the United States House of Representatives.

      Sec. 2883. Naming of Navy and Marine Corps Reserve Center at Rock Island, Illinois, in honor of the Honorable Lane Evans, a former member of the United States House of Representatives.

      Sec. 2884. Naming of research laboratory at Air Force Rome Research Site, Rome, New York, in honor of the Honorable Sherwood L. Boehlert, a former member of the United States House of Representatives.

      Sec. 2885. Naming of administration building at Joint Systems Manufacturing Center, Lima, Ohio, in honor of the Honorable Michael G. Oxley, a former member of the United States House of Representatives.

      Sec. 2886. Naming of Logistics Automation Training Facility, Army Quartermaster Center and School, Fort Lee, Virginia, in honor of General Richard H. Thompson.

      Sec. 2887. Authority to relocate Joint Spectrum Center to Fort Meade, Maryland.

TITLE XXIX--WAR-RELATED AND EMERGENCY MILITARY CONSTRUCTION AUTHORIZATIONS

      Sec. 2901. Authorized Army construction and land acquisition projects.

      Sec. 2902. Authorized Navy construction and land acquisition projects.

      Sec. 2903. Authorized Air Force construction and land acquisition projects.

      Sec. 2904. Authorized Defense Agencies construction and land acquisition projects.

      Sec. 2905. Authorized base closure and realignment activities funded through Department of Defense Base Closure Account 2005 and related authorization of appropriations.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

      Sec. 3101. National Nuclear Security Administration.

      Sec. 3102. Defense environmental cleanup.

      Sec. 3103. Other defense activities.

      Sec. 3104. Defense nuclear waste disposal.

      Sec. 3105. Energy security and assurance.

Subtitle B--Program Authorizations, Restrictions, and Limitations

      Sec. 3111. Reliable Replacement Warhead program.

      Sec. 3112. Nuclear test readiness.

      Sec. 3113. Modification of reporting requirement.

      Sec. 3114. Limitation on availability of funds for Fissile Materials Disposition program.

      Sec. 3115. Modification of limitations on availability of funds for Waste Treatment and Immobilization Plant.

      Sec. 3116. Modification of sunset date of the Office of the Ombudsman of the Energy Employees Occupational Illness Compensation Program.

      Sec. 3117. Technical amendments.

Subtitle C--Other Matters

      Sec. 3121. Study on using existing pits for the Reliable Replacement Warhead program.

      Sec. 3122. Report on retirement and dismantlement of nuclear warheads.

      Sec. 3123. Plan for addressing security risks posed to nuclear weapons complex.

      Sec. 3124. Department of Energy protective forces.

      Sec. 3125. Evaluation of National Nuclear Security Administration strategic plan for advanced computing.

      Sec. 3126. Sense of Congress on the nuclear nonproliferation policy of the United States and the Reliable Replacement Warhead program.

      Sec. 3127. Department of Energy report on plan to strengthen and expand International Radiological Threat Reduction program.

      Sec. 3128. Department of Energy report on plan to strengthen and expand Materials Protection, Control, and Accounting program.

      Sec. 3129. Agreements and reports on nuclear forensics capabilities.

      Sec. 3130. Report on status of environmental management initiatives to accelerate the reduction of environmental risks and challenges posed by the legacy of the Cold War.

Subtitle D--Nuclear Terrorism Prevention

      Sec. 3131. Definitions.

      Sec. 3132. Sense of Congress on the prevention of nuclear terrorism.

      Sec. 3133. Minimum security standard for nuclear weapons and formula quantities of strategic special nuclear material.

      Sec. 3134. Annual report.

TITLE XXXII--WAR-RELATED NATIONAL NUCLEAR SECURITY ADMINISTRATION AUTHORIZATIONS

      Sec. 3201. Additional war-related authorization of appropriations for National Nuclear Security Administration.

TITLE XXXIII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

      Sec. 3301. Authorization.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

      Sec. 3401. Authorization of appropriations.

      Sec. 3402. Remedial action at Moab uranium milling site.

TITLE XXXV--MARITIME ADMINISTRATION

Subtitle A--Maritime Administration Reauthorization

      Sec. 3501. Authorization of appropriations for fiscal year 2008.

      Sec. 3502. Temporary authority to transfer obsolete combatant vessels to Navy for disposal.

      Sec. 3503. Vessel disposal program.

Subtitle B--Programs

      Sec. 3511. Commercial vessel chartering authority.

      Sec. 3512. Maritime Administration vessel chartering authority.

      Sec. 3513. Chartering to State and local governmental instrumentalities.

      Sec. 3514. Disposal of obsolete Government vessels.

      Sec. 3515. Vessel transfer authority.

      Sec. 3516. Sea trials for Ready Reserve Force.

      Sec. 3517. Review of applications for loans and guarantees.

Subtitle C--Technical Corrections

      Sec. 3521. Personal injury to or death of seamen.

      Sec. 3522. Amendments to Chapter 537 based on Public Law 109-163.

      Sec. 3523. Additional amendments based on Public Law 109-163.

      Sec. 3524. Amendments based on Public Law 109-171.

      Sec. 3525. Amendments based on Public Law 109-241.

      Sec. 3526. Amendments based on Public Law 109-364.

      Sec. 3527. Miscellaneous amendments.

      Sec. 3528. Application of sunset provision to codified provision.

      Sec. 3529. Additional technical corrections.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

    For purposes of this Act, the term `congressional defense committees' has the meaning given that term in section 101(a)(16) of title 10, United States Code.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

      Sec. 101. Army.

      Sec. 102. Navy and Marine Corps.

      Sec. 103. Air Force.

      Sec. 104. Defense-wide activities.

      Sec. 105. National Guard and Reserve equipment.

Subtitle B--Army Programs

      Sec. 111. Multiyear procurement authority for M1A2 Abrams System Enhancement Package upgrades.

      Sec. 112. Multiyear procurement authority for M2A3/M3A3 Bradley fighting vehicle upgrades.

      Sec. 113. Multiyear procurement authority for conversion of CH-47D helicopters to CH-47F configuration.

      Sec. 114. Multiyear procurement authority for CH-47F helicopters.

      Sec. 115. Limitation on use of funds for Increment 1 of the Warfighter Information Network-Tactical program pending certification to Congress.

      Sec. 116. Prohibition on closure of Army Tactical Missile System production line pending report.

      Sec. 117. Stryker Mobile Gun System.

Subtitle C--Navy Programs

      Sec. 121. Multiyear procurement authority for Virginia-class submarine program.

      Sec. 122. Report on shipbuilding investment strategy.

      Sec. 123. Sense of Congress on the preservation of a skilled United States shipyard workforce.

      Sec. 124. Assessments required prior to start of construction on first ship of a shipbuilding program.

      Sec. 125. Littoral Combat Ship (LCS) program.

Subtitle D--Air Force Programs

      Sec. 131. Limitation on Joint Cargo Aircraft.

      Sec. 132. Clarification of limitation on retirement of U-2 aircraft.

      Sec. 133. Repeal of requirement to maintain retired C-130E tactical aircraft.

      Sec. 134. Limitation on retirement of C-130E/H tactical airlift aircraft.

      Sec. 135. Limitation on retirement of KC-135E aerial refueling aircraft.

      Sec. 136. Transfer to Government of Iraq of three C-130E tactical airlift aircraft.

      Sec. 137. Modification of limitations on retirement of B-52 bomber aircraft.

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2008 for procurement for the Army as follows:

      (1) For aircraft, $4,168,798,000.

      (2) For missiles, $1,911,979,000.

      (3) For weapons and tracked combat vehicles, $3,007,489,000.

      (4) For ammunition, $2,214,576,000.

      (5) For other procurement, $12,451,312,000.

      (6) For the Joint Improvised Explosive Device Defeat Fund, $228,000,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy- Funds are hereby authorized to be appropriated for fiscal year 2008 for procurement for the Navy as follows:

      (1) For aircraft, $12,432,644,000.

      (2) For weapons, including missiles and torpedoes, $3,068,187,000.

      (3) For shipbuilding and conversion, $13,596,120,000.

      (4) For other procurement, $5,209,330,000.

    (b) Marine Corps- Funds are hereby authorized to be appropriated for fiscal year 2008 for procurement for the Marine Corps in the amount of $2,299,419,000.

    (c) Navy and Marine Corps Ammunition- Funds are hereby authorized to be appropriated for fiscal year 2008 for procurement of ammunition for the Navy and the Marine Corps in the amount of $1,058,832,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 for procurement for the Air Force as follows:

      (1) For aircraft, $12,117,800,000.

      (2) For ammunition, $854,167,000.

      (3) For missiles, $4,984,102,000.

      (4) For other procurement, $15,405,832,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2008 for Defense-wide procurement in the amount of $3,280,435,000.

SEC. 105. NATIONAL GUARD AND RESERVE EQUIPMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 for the procurement of aircraft, missiles, wheeled and tracked combat vehicles, tactical wheeled vehicles, ammunition, other weapons, and other procurement for the reserve components of the Armed Forces in the amount of $980,000,000.

Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR M1A2 ABRAMS SYSTEM ENHANCEMENT PACKAGE UPGRADES.

    The Secretary of the Army, in accordance with section 2306b of title 10, United States Code, may enter into a multiyear contract, beginning with the fiscal year 2008 program year, for procurement of M1A2 Abrams System Enhancement Package upgrades.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR M2A3/M3A3 BRADLEY FIGHTING VEHICLE UPGRADES.

    The Secretary of the Army, in accordance with section 2306b of title 10, United States Code, may enter into a multiyear contract, beginning with the fiscal year 2008 program year, for procurement of M2A3/M3A3 Bradley fighting vehicle upgrades.

SEC. 113. MULTIYEAR PROCUREMENT AUTHORITY FOR CONVERSION OF CH-47D HELICOPTERS TO CH-47F CONFIGURATION.

    The Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear contract, beginning with the fiscal year 2008 program year, for conversion of CH-47D helicopters to the CH-47F configuration.

SEC. 114. MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F HELICOPTERS.

    The Secretary of the Army may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear contract, beginning with the fiscal year 2008 program year, for procurement of CH-47F helicopters.

SEC. 115. LIMITATION ON USE OF FUNDS FOR INCREMENT 1 OF THE WARFIGHTER INFORMATION NETWORK-TACTICAL PROGRAM PENDING CERTIFICATION TO CONGRESS.

    (a) Funding Restricted- Of the amounts appropriated pursuant to an authorization of appropriations for fiscal year 2008 or otherwise made available for Other Procurement, Army, that are available for Increment 1 of the Warfighter Information Network-Tactical program, not more than 50 percent may be obligated or expended until the Director of Operational Test and Evaluation submits to the congressional defense committees a certification, in writing, that the Director of Operational Test and Evaluation has approved a Test and Evaluation Master Plan and Initial Operational Test Plan for Increment 1 of the Warfighter Information Network-Tactical program.

    (b) Increment 1 Defined- For the purposes of this section, Increment 1 of the Warfighter Information Network-Tactical program includes all program elements described as constituting `Increment 1' in the memorandum titled `Warfighter Information Network-Tactical (WIN-T) Program Acquisition Decision Memorandum', dated June 5, 2007, and signed by the Under Secretary of Defense for Acquisition, Technology, and Logistics.

SEC. 116. PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE SYSTEM PRODUCTION LINE PENDING REPORT.

    (a) Prohibition- Amounts appropriated pursuant to the authorization of appropriations in section 101(2) for missiles, Army, and in section 1502(4) for missile procurement, Army, and any other appropriated funds available to the Secretary of the Army may not be used to close the production line for the Army Tactical Missile System program until after the date on which the Secretary of the Army submits to the congressional defense committees a report that contains--

      (1) the certification of the Secretary that the long range surface-to-surface strike and counter battery mission of the Army can be adequately performed by other Army weapons systems or by other elements of the Armed Forces; and

      (2) a plan to mitigate any shortfalls in the industrial base that would be created by the closure of the production line.

    (b) Submission of Report- The report referred to in subsection (a) is required not later than April 1, 2008.

SEC. 117. STRYKER MOBILE GUN SYSTEM.

    (a) Limitation on Availability of Funds- None of the amounts authorized to be appropriated by sections 101(3) and 1501(3) for procurement of weapons and tracked combat vehicles for the Army may be obligated or expended for purposes of the procurement of the Stryker Mobile Gun System until 30 days after the date on which the Secretary of the Army certifies to Congress that the Stryker Mobile Gun System is operationally effective, suitable, and survivable for its anticipated deployment missions.

    (b) Waiver- The Secretary of Defense may waive the limitation in subsection (a) if the Secretary--

      (1) determines that further procurement of the Stryker Mobile Gun System utilizing amounts referred to in subsection (a) is in the national security interest of the United States notwithstanding the inability of the Secretary of the Army to make the certification required by that subsection; and

      (2) submits to the Congress, in writing, a notification of the waiver together with a discussion of--

        (A) the reasons for the determination described in paragraph (1); and

        (B) the actions that will be taken to mitigate any deficiencies that cause the Stryker Mobile Gun System not to be operationally effective, suitable, or survivable, as that case may be, as described in subsection (a).

Subtitle C--Navy Programs

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA-CLASS SUBMARINE PROGRAM.

    (a) Authority- The Secretary of the Navy may, in accordance with section 2306b of title 10, United States Code, enter into multiyear contracts, beginning with the fiscal year 2009 program year, for the procurement of Virginia-class submarines and Government-furnished equipment associated with the Virginia-class submarine program.

    (b) Limitation- The Secretary may not enter into a contract authorized by subsection (a) until--

      (1) the Secretary submits to the congressional defense committees a certification that the Secretary has made, with respect to that contract, each of the findings required by subsection (a) of section 2306b of title 10, United States Code; and

      (2) a period of 30 days has elapsed after the date of the transmission of such certification.

SEC. 122. REPORT ON SHIPBUILDING INVESTMENT STRATEGY.

    (a) Study Required- The Secretary of the Navy shall provide for a study to determine the effectiveness of current financing mechanisms for providing incentives for contractors to make shipbuilding capital expenditures, and to assess potential capital expenditure incentives that would lead to ship construction or life-cycle cost savings to the Federal Government. The study shall examine--

      (1) potential improvements in design tools and techniques, material management, technology insertion, systems integration and testing, and other key processes and functions that would lead to reduced construction costs;

      (2) construction process improvements that would reduce procurement and life-cycle costs of the vessels under construction at the contractor's facilities; and

      (3) incentives for investment in shipyard infrastructure that support construction process improvements.

    (b) Report- Not later than October 1, 2008, the Secretary of the Navy shall submit to the congressional defense committees a report providing the results of the study under subsection (a). The report shall include each of the following:

      (1) An assessment of the shipbuilding industrial base, as measured by a 10-year history for major shipbuilders with respect to--

        (A) estimated value of shipbuilding facilities;

        (B) critical shipbuilding capabilities;

        (C) capital expenditures;

        (D) major investments in process improvements; and

        (E) costs for related Navy shipbuilding projects.

      (2) A description of mechanisms available to the Government and industry to finance facilities and process improvements, including--

        (A) contract incentive and award fees;

        (B) facilities capital cost of money;

        (C) facilities depreciation;

        (D) progress payment provisions;

        (E) other contract terms and conditions;

        (F) State and Federal tax provisions and tax incentives;

        (G) the National Shipbuilding Research Program; and

        (H) any other mechanisms available.

      (3) A summary of potential shipbuilding investments that offer greatest reduction to shipbuilding costs, including, for each such investment--

        (A) a project description;

        (B) an estimate of required investment;

        (C) the estimated return on investment; and

        (D) alternatives for financing the investment.

      (4) The Navy's strategy for providing incentives for contractors' capital expenditures that would lead to ship construction or life-cycle savings to the Federal Government, including identification of any specific changes in legislative authority that would be required for the Secretary to execute this strategy.

    (c) Utilization of Other Studies and Outside Experts- The study shall build upon the results of the 2005 and 2006 Global Shipbuilding Industrial Base Benchmarking studies. Financial analysis associated with the report shall be conducted in consultation with financial experts independent of the Department of Defense.

SEC. 123. SENSE OF CONGRESS ON THE PRESERVATION OF A SKILLED UNITED STATES SHIPYARD WORKFORCE.

    (a) Sense of Congress- It is the sense of Congress that the preservation of a robust domestic skilled workforce is required for the national shipbuilding infrastructure and particularly essential to the construction of ships for the United States Navy.

    (b) Study Required-

      (1) IN GENERAL- The Secretary of the Navy shall determine, on a one-time, non-recurring basis, and in consultation with the Department of Labor, the average number of H2B visa workers employed by the major shipbuilders in the construction of United States Navy ships during the calendar year ending December 31, 2007. The study shall also identify the number of workers petitioned by the major shipbuilders for use in calendar year 2008, as of the first quarter of calendar year 2008.

      (2) REPORT- Not later than April 1, 2008, the Secretary of the Navy shall submit to the congressional defense committees a report containing the results of the study required by subsection (b).

      (3) DEFINITIONS- In this paragraph--

        (A) the term `major shipbuilder' means a prime contractor or a first-tier subcontractor responsible for delivery of combatant and support vessels required for the naval vessel force, as reported within the annual naval vessel construction plan required by section 231 of title 10, United States Code; and

        (B) the term `H2B visa' means a non-immigrant visa program that permits employers to hire foreign workers to come temporarily to the United States and perform temporary non-agricultural services or labor on a one-time, seasonal, peakload, or intermittent basis.

SEC. 124. ASSESSMENTS REQUIRED PRIOR TO START OF CONSTRUCTION ON FIRST SHIP OF A SHIPBUILDING PROGRAM.

    (a) In General- Concurrent with approving the start of construction of the first ship for any major shipbuilding program, the Secretary of the Navy shall--

      (1) submit a report to the congressional defense committees on the results of any production readiness review; and

      (2) certify to the congressional defense committees that the findings of any such review support commencement of construction.

    (b) Report- The report required by subsection (a)(1) shall include, at a minimum, an assessment of each of the following:

      (1) The maturity of the ship's design, as measured by stability of the ship contract specifications and the degree of completion of detail design and production design drawings.

      (2) The maturity of developmental command and control systems, weapon and sensor systems, and hull, mechanical and electrical systems.

      (3) The readiness of the shipyard facilities and workforce to begin construction.

      (4) The Navy's estimated cost at completion and the adequacy of the budget to support the estimate.

      (5) The Navy's estimated delivery date and description of any variance to the contract delivery date.

      (6) The extent to which adequate processes and metrics are in place to measure and manage program risks.

    (c) Applicability- This section applies to each major shipbuilding program beginning after the date of the enactment of this Act.

    (d) Definitions- For the purposes of subsection (a):

      (1) START OF CONSTRUCTION- The term `start of construction' means the beginning of fabrication of the hull and superstructure of the ship.

      (2) FIRST SHIP- The term `first ship' applies to a ship if--

        (A) the ship is the first ship to be constructed under that shipbuilding program; or

        (B) the shipyard at which the ship is to be constructed has not previously started construction on a ship under that shipbuilding program.

      (3) MAJOR SHIPBUILDING PROGRAM- The term `major shipbuilding program' means a program for the construction of combatant and support vessels required for the naval vessel force, as reported within the annual naval vessel construction plan required by section 231 of title 10, United States Code.

      (4) PRODUCTION READINESS REVIEW- The term `production readiness review' means a formal examination of a program prior to the start of construction to determine if the design is ready for production, production engineering problems have been resolved, and the producer has accomplished adequate planning for the production phase.

SEC. 125. LITTORAL COMBAT SHIP (LCS) PROGRAM.

    Section 124 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3157) is amended by striking subsections (a), (b), (c), and (d) and inserting the following:

    `(a) Limitation of Costs-

      `(1) IN GENERAL- The total amount obligated or expended for the procurement costs of post-2007 LCS vessels shall not exceed $460,000,000 per vessel.

      `(2) PROCUREMENT COSTS- For purposes of this section, procurement costs shall include all costs for plans, basic construction, change orders, electronics, ordnance, contractor support, and other costs associated with completion of production drawings, ship construction, test, and delivery, including work performed post-delivery that is required to meet original contract requirements.

      `(3) Post-2007 LCS VESSELS- For purposes of this section, the term `post-2007 LCS vessel' means a vessel in the Littoral Combat Ship (LCS) class of vessels, the procurement of which is funded from amounts appropriated pursuant to an authorization of appropriations or otherwise made available for fiscal year 2008 or any fiscal year thereafter.

    `(b) Contract Type- The Secretary of the Navy shall employ a fixed-price type contract for construction of post-2007 LCS vessels.

    `(c) Limitation of Government Liability- The Secretary of the Navy shall not enter into a contract, or modify a contract, for construction or final delivery of post-2007 LCS vessels if the limitation of the Government's cost liability, when added to the sum of other budgeted procurement costs, would exceed $460,000,000 per vessel.

    `(d) Adjustment of Limitation Amount- The Secretary of the Navy may adjust the amount set forth in subsections (a)(1) and (c) for vessels referred to in such subsections by the following:

      `(1) The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2007.

      `(2) The amounts of outfitting costs and costs required to complete post-delivery test and trials.'.

Subtitle D--Air Force Programs

SEC. 131. LIMITATION ON JOINT CARGO AIRCRAFT.

    No funds appropriated pursuant to an authorization of appropriations or otherwise made available for procurement, or for research, development, test, and evaluation, may be obligated or expended for the Joint Cargo Aircraft until 30 days after the Secretary of Defense submits to the congressional defense committees each of the following:

      (1) The Air Force Air Mobility Command's Airlift Mobility Roadmap.

      (2) The Department of Defense Intra-Theater Airlift Capabilities Study.

      (3) The Department of Defense Joint Intra-Theater Distribution Assessment.

      (4) The Joint Cargo Aircraft Functional Area Series Analysis.

      (5) The Joint Cargo Aircraft Analysis of Alternatives.

      (6) The Joint Intra-Theater Airlift Fleet Mix Analysis.

      (7) The Secretary's certification that--

        (A) there is, within the Department of the Army, Department of the Air Force, Army National Guard, or Air National Guard, a capability gap or shortfall with respect to intra-theater airlift; and

        (B) validated requirements exist to fill that gap or shortfall through procurement of the Joint Cargo Aircraft.

SEC. 132. CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    Section 133(b) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2112) is amended--

      (1) in paragraph (1)--

        (A) by striking `After fiscal year 2007' and inserting `For each fiscal year after fiscal year 2007'; and

        (B) by inserting after `Secretary of Defense' the following: `, in that fiscal year,'; and

      (2) in paragraph (2)--

        (A) by inserting after `Department of Defense' the following: `in a fiscal year'; and

        (B) by inserting after `Congress' the following: `in that fiscal year'.

SEC. 133. REPEAL OF REQUIREMENT TO MAINTAIN RETIRED C-130E TACTICAL AIRCRAFT.

    (a) In General- Effective as of the date specified in subsection (b), section 137(b) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2114) is repealed.

    (b) Specified Date- The date specified in this subsection is the date that is 30 days after the date on which the Secretary of the Air Force submits to the congressional defense committees the Fleet Mix Analysis Study.

SEC. 134. LIMITATION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT AIRCRAFT.

    (a) General Prohibition- The Secretary of the Air Force may not retire C-130E/H tactical airlift aircraft during fiscal year 2008, except as provided in subsection (b).

    (b) Contingent Authority to Retire Certain C-130E Aircraft- Effective as of the date specified in subsection (d), subsection (a) shall not apply to C-130E tactical airlift aircraft, and the number of such aircraft retired by the Secretary of the Air Force during fiscal year 2008 may not exceed 24.

    (c) Treatment of Retired Aircraft- The Secretary of the Air Force shall maintain each C-130E tactical airlift aircraft that is retired during fiscal year 2008 in a condition that would allow recall of that aircraft to future service.

    (d) Specified Date- The date specified in this subsection is the date that is 30 days after the date on which the Secretary of the Air Force submits to the congressional defense committees the Fleet Mix Analysis Study.

SEC. 135. LIMITATION ON RETIREMENT OF KC-135E AERIAL REFUELING AIRCRAFT.

    (a) Limitation on Retirement of More Than 48 Aircraft- The Secretary of the Air Force may not retire more than 48 KC-135E aerial refueling aircraft of the Air Force during fiscal year 2008, except as provided in subsection (b).

    (b) Contingent Authority to Retire 37 Additional Aircraft- Effective as of the date specified in subsection (c), the number of such aircraft retired by the Secretary of the Air Force during fiscal year 2008 may not exceed 85.

    (c) Specified Date- The date specified in this subsection is the date that is 15 days after the date on which the Secretary of the Air Force submits to the congressional defense committees the Secretary's certification that--

      (1) the system design and development contract for the KC-X program has been awarded; and

      (2) if a protest is submitted pursuant to subchapter 5 of title 31, United States Code--

        (A) the protest has been resolved in favor of the Federal agency; or

        (B) the Secretary has authorized performance of the contract (notwithstanding the protest).

SEC. 136. TRANSFER TO GOVERNMENT OF IRAQ OF THREE C-130E TACTICAL AIRLIFT AIRCRAFT.

    The Secretary of the Air Force may transfer not more than 3 C-130E tactical airlift aircraft, allowed to be retired under the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364), to the Government of Iraq.

SEC. 137. MODIFICATION OF LIMITATIONS ON RETIREMENT OF B-52 BOMBER AIRCRAFT.

    (a) Maintenance of Primary, Backup, and Attrition Reserve Inventory of Aircraft- Subsection (a) of section 131 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2111) is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (A), by striking `and' at the end;

        (B) in subparagraph (B), by striking the period at the end and inserting a semicolon; and

        (C) by adding at the end the following:

        `(C) shall maintain in a common capability configuration a primary aircraft inventory of not less than 63 such aircraft, a backup aircraft inventory of not less than 11 such aircraft, and an attrition reserve aircraft inventory of not less than 2 such aircraft; and

        `(D) shall not keep any such aircraft referred to in subparagraph (C) in a status considered excess to the requirements of the possessing command and awaiting disposition instructions.'; and

      (2) by adding at the end the following:

      `(3) DEFINITIONS- For purposes of paragraph (1):

        `(A) The term `primary aircraft inventory' means aircraft assigned to meet the primary aircraft authorization to--

          `(i) a unit for the performance of its wartime mission;

          `(ii) a training unit primarily for technical and specialized training for crew personnel or leading to aircrew qualification;

          `(iii) a test unit for testing of the aircraft or its components for purposes of research, development, test and evaluation, operational test and evaluation, or to support testing programs; or

          `(iv) meet requirements for special missions not elsewhere classified.

        `(B) The term `backup aircraft inventory' means aircraft above the primary aircraft inventory to permit scheduled and unscheduled depot level maintenance, modifications, inspections, and repairs, and certain other mitigating circumstances without reduction of aircraft available for the assigned mission.

        `(C) The term `attrition reserve aircraft inventory' means aircraft required to replace anticipated losses of primary aircraft inventory due to peacetime accidents or wartime attrition.

      `(4) TREATMENT OF RETIRED AIRCRAFT- Of the aircraft retired in accordance with paragraph (1)(A), the Secretary of the Air Force may use not more than 2 such aircraft for maintenance ground training.'.

    (b) Notice of Retirement- Subsection (b)(1) of such section is amended by striking `45 days' and inserting `60 days'.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

      Sec. 201. Authorization of appropriations.

      Sec. 202. Amount for defense science and technology.

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec. 211. Operational test and evaluation of Future Combat Systems network.

      Sec. 212. Limitation on use of funds for systems development and demonstration of Joint Light Tactical Vehicle Program.

      Sec. 213. Requirement to obligate and expend funds for development and procurement of a competitive propulsion system for the Joint Strike Fighter.

      Sec. 214. Limitation on use of funds for defense-wide manufacturing science and technology program.

      Sec. 215. Advanced Sensor Applications Program.

      Sec. 216. Active protection systems.

Subtitle C--Ballistic Missile Defense

      Sec. 221. Participation of Director, Operational Test and Evaluation, in missile defense test and evaluation activities.

      Sec. 222. Study on future roles and missions of the Missile Defense Agency.

      Sec. 223. Budget and acquisition requirements for Missile Defense Agency activities.

      Sec. 224. Limitation on use of funds for replacing warhead on SM-3 Block IIA missile.

      Sec. 225. Extension of Comptroller General assessments of ballistic missile defense programs.

      Sec. 226. Limitation on availability of funds for procurement, construction, and deployment of missile defenses in Europe.

      Sec. 227. Sense of Congress on missile defense cooperation with Israel.

      Sec. 228. Limitation on availability of funds for deployment of missile defense interceptors in Alaska.

      Sec. 229. Policy of the United States on protection of the United States and its allies against Iranian ballistic missiles.

Subtitle D--Other Matters

      Sec. 231. Coordination of human systems integration activities related to acquisition programs.

      Sec. 232. Expansion of authority for provision of laboratory facilities, services, and equipment.

      Sec. 233. Modification of cost sharing requirement for Technology Transition Initiative.

      Sec. 234. Report on implementation of Manufacturing Technology Program.

      Sec. 235. Assessment of sufficiency of test and evaluation personnel.

      Sec. 236. Repeal of requirement for separate reports on technology area review and assessment summaries.

      Sec. 237. Modification of notice and wait requirement for obligation of funds for foreign comparative test program.

      Sec. 238. Strategic Plan for the Manufacturing Technology Program.

      Sec. 239. Modification of authorities on coordination of Defense Experimental Program to Stimulate Competitive Research with similar Federal programs.

      Sec. 240. Enhancement of defense nanotechnology research and development program.

      Sec. 241. Federally funded research and development center assessment of the Defense Experimental Program to Stimulate Competitive Research.

      Sec. 242. Cost-benefit analysis of proposed funding reduction for High Energy Laser Systems Test Facility.

      Sec. 243. Prompt global strike.

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 for the use of the Department of Defense for research, development, test, and evaluation as follows:

      (1) For the Army, $10,840,392,000.

      (2) For the Navy, $16,980,732,000.

      (3) For the Air Force, $25,692,521,000.

      (4) For Defense-wide activities, $20,213,900,000, of which $180,264,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2008- Of the amounts authorized to be appropriated by section 201, $10,913,944,000 shall be available for the Defense Science and Technology Program, including basic research, applied research, and advanced technology development projects.

    (b) Basic Research, Applied Research, and Advanced Technology Development Defined- For purposes of this section, the term `basic research, applied research, and advanced technology development' means work funded in program elements for defense research and development under Department of Defense budget activity 1, 2, or 3.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. OPERATIONAL TEST AND EVALUATION OF FUTURE COMBAT SYSTEMS NETWORK.

    (a) Operational Test and Evaluation Required- The Secretary of the Army, in cooperation with the Director, Operational Test and Evaluation, shall complete an operational test and evaluation (as defined in section 139(a)(2)(A) of title 10, United States Code), of the FCS network in a realistic environment simulating operational conditions. The operational test and evaluation shall--

      (1) be conducted in accordance with a Future Combat Systems Test and Evaluation Master Plan approved by the Director, Operational Test and Evaluation;

      (2) be conducted using prototype equipment, sensors, and software for the FCS network;

      (3) be conducted in a manner that simulates a full Future Combat Systems brigade;

      (4) be conducted, to the maximum extent possible, using actual communications equipment instead of computer simulations;

      (5) be conducted in a realistic operational electronic warfare environment, including enemy electronic warfare and network attacks; and

      (6) include, to the maximum extent possible, all sensor information feeds the FCS network is designed to incorporate.

    (b) FCS Network Defined- In this section, the term `FCS network' includes all sensors, information systems, computers, and communications systems necessary to support Future Combat Systems brigade operations.

    (c) Report- Not later than 120 days after completing the operational test and evaluation required by subsection (a), the Director, Operational Test and Evaluation shall submit to the congressional defense committees a report on the outcome of the operational test and evaluation. The report shall include, at a minimum--

      (1) an evaluation of the overall operational effectiveness of the FCS network, including--

        (A) an evaluation of the FCS network's capability to transmit the volume and classes of data required by Future Combat Systems approved requirements; and

        (B) an evaluation of the FCS network's performance in a degraded condition due to enemy network attack, sophisticated enemy electronic warfare, adverse weather conditions, and terrain variability;

      (2) an evaluation of the FCS network's ability to improve friendly force knowledge of the location and capability of enemy forces and combat systems; and

      (3) an evaluation of the overall operational suitability of the FCS network.

    (d) Limitation Pending Submission of Report-

      (1) IN GENERAL- No funds, with the exception of funds for advanced procurement, appropriated pursuant to an authorization of appropriations or otherwise made available to the Department of the Army for any fiscal year may be obligated for low-rate initial production or full-rate production of Future Combat Systems manned ground vehicles until 60 days after the date on which the report is submitted under subsection (c).

      (2) WAIVER AUTHORITY- The Secretary of Defense may waive the limitation in paragraph (1) if the Secretary determines that such a waiver is critical for national security. Such a waiver shall not become effective until 45 days after the date on which the Secretary submits to the congressional defense committees a written notice of the waiver.

      (3) INAPPLICABILITY TO THE NON LINE OF SIGHT CANNON VEHICLE- The limitation in paragraph (1) does not apply to the Non Line of Sight Cannon vehicle.

SEC. 212. LIMITATION ON USE OF FUNDS FOR SYSTEMS DEVELOPMENT AND DEMONSTRATION OF JOINT LIGHT TACTICAL VEHICLE PROGRAM.

    Of the amounts appropriated pursuant to an authorization of appropriations or otherwise made available for the Joint Light Tactical Vehicle Program for the acquisition program phase of systems development and demonstration for fiscal year 2008 or any fiscal year thereafter, no more than 50 percent of those amounts may be obligated or expended until after--

      (1) the Under Secretary of Defense for Acquisition, Technology, and Logistics, or the appropriate milestone decision authority, makes the certification required by section 2366a of title 10, United States Code, with respect to the Joint Light Tactical Vehicle Program; and

      (2) the certification has been received by the congressional defense committees.

SEC. 213. REQUIREMENT TO OBLIGATE AND EXPEND FUNDS FOR DEVELOPMENT AND PROCUREMENT OF A COMPETITIVE PROPULSION SYSTEM FOR THE JOINT STRIKE FIGHTER.

    Of the funds appropriated pursuant to an authorization of appropriations or otherwise made available for fiscal year 2008 or any year thereafter, for research, development, test, and evaluation and procurement for the Joint Strike Fighter Program, the Secretary of Defense shall ensure the obligation and expenditure in each such fiscal year of sufficient annual amounts for the continued development and procurement of 2 options for the propulsion system for the Joint Strike Fighter in order to ensure the development and competitive production for the propulsion system for the Joint Strike Fighter.

SEC. 214. LIMITATION ON USE OF FUNDS FOR DEFENSE-WIDE MANUFACTURING SCIENCE AND TECHNOLOGY PROGRAM.

    No funds available to the Office of the Secretary of Defense for any fiscal year may be obligated or expended for the defense-wide manufacturing science and technology program unless the Director, Defense Research and Engineering, ensures each of the following:

      (1) A component of the Department of Defense has requested and evaluated--

        (A) competitive proposals, for each project under the program that is not a project covered by subparagraph (B); and

        (B) proposals from as many sources as is practicable under the circumstances, for a project under the program if the disclosure of the needs of the Department of Defense with respect to that project would compromise the national security.

      (2) Each project under the program is carried out--

        (A) in accordance with the statutory requirements of the Manufacturing Technology Program established by section 2521 of title 10, United States Code; and

        (B) in compliance with all requirements of any directive that applies to manufacturing technology.

      (3) An implementation plan has been developed.

SEC. 215. ADVANCED SENSOR APPLICATIONS PROGRAM.

    (a) Transfer of Funds- (1) Of the amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation, Air Force activities, and made available for the activities of the Intelligence Systems Support Office, an aggregate of $13,000,000 shall be transferred to the Advanced Sensor Applications Program not later than 60 days after the date of the enactment of this Act.

    (2) Of the amount authorized to be appropriated by section 301(2) for operation and maintenance, Navy activities, and made available for the activities of the Office of Naval Intelligence, an aggregate of $5,000,000 shall be transferred to the Advanced Sensor Applications Program not later than 60 days after the date of the enactment of this Act.

    (b) Assignment of Program- Management of the program shall reside within the office of the Under Secretary of Defense for Intelligence until certain conditions specified in the classified annex to the statement of managers accompanying this Act are met. The program shall be executed by the Commander, Naval Air Systems Command in consultation with the Program Executive Officer for Aviation for the Navy.

SEC. 216. ACTIVE PROTECTION SYSTEMS.

    (a) Live-Fire Tests Required-

      (1) IN GENERAL- The Secretary of Defense shall undertake live-fire tests, of appropriate foreign and domestic active protection systems with size, weight, and power characteristics suitable for protecting wheeled tactical vehicles, especially light wheeled tactical vehicles, in order--

        (A) to determine the effectiveness of such systems for protecting wheeled tactical vehicles; and

        (B) to develop information useful in the consideration of the adoption of such systems in defense acquisition programs.

      (2) REPORTS- Not later than March 1 of each of 2008 and 2009, the Secretary shall submit to the congressional defense committees a report on the results of the tests undertaken under paragraph (1) as of the date of such report.

      (3) FUNDING- The live-fire tests required by paragraph (1) shall be conducted using funds authorized and appropriated for the Joint Improvised Explosive Device Defeat Fund.

    (b) Comprehensive Assessment Required-

      (1) IN GENERAL- The Secretary shall undertake a comprehensive assessment of active protection systems in order to develop information useful in the development of joint active protection systems and other defense programs.

      (2) ELEMENTS- The assessment under paragraph (1) shall include--

        (A) an identification of the potential merits and operational costs of the use of active protection systems by United States military forces;

        (B) a characterization of the threats that use of active protection systems by potential adversaries would pose to United States military forces and weapons;

        (C) an identification and assessment of countermeasures to active protection systems;

        (D) an analysis of collateral damage potential of active protection systems;

        (E) an identification and assessment of emerging direct-fire and top-attack threats to defense systems that could potentially deploy active protection systems; and

        (F) an identification and assessment of critical technology elements of active protection systems.

      (3) REPORT- Not later than December 31, 2008, the Secretary shall submit to the congressional defense committees a report on the assessment under paragraph (1).

Subtitle C--Ballistic Missile Defense

SEC. 221. PARTICIPATION OF DIRECTOR, OPERATIONAL TEST AND EVALUATION, IN MISSILE DEFENSE TEST AND EVALUATION ACTIVITIES.

    Section 139 of title 10, United States Code, is amended--

      (1) by redesignating subsections (f) through (j) as subsections (g) through (k), respectively; and

      (2) by inserting after subsection (e) the following new subsection (f):

    `(f)(1) The Director of the Missile Defense Agency shall make available to the Director of Operational Test and Evaluation the results of all tests and evaluations conducted by the Missile Defense Agency and of all studies conducted by the Missile Defense Agency in connection with tests and evaluations in the Missile Defense Agency.

    `(2) The Director of Operational Test and Evaluation may require that such observers as the Director designates be present during the preparation for and the conducting of any test and evaluation conducted by the Missile Defense Agency.

    `(3) The Director of Operational Test and Evaluation shall have access to all records and data in the Department of Defense (including the records and data of the Missile Defense Agency) that the Director considers necessary to review in order to carry out his duties under this subsection.'.

SEC. 222. STUDY ON FUTURE ROLES AND MISSIONS OF THE MISSILE DEFENSE AGENCY.

    (a) In General- The Secretary of Defense shall enter into an agreement with 1 of the Federally Funded Research and Development Centers under which the Center shall carry out an independent study to examine, and make recommendations with respect to, the long-term structure, roles, and missions of the Missile Defense Agency.

    (b) Matters Included-

      (1) REVIEW- The study shall include a full review of the structure, roles, and missions of the Missile Defense Agency.

      (2) ASSESSMENTS- The study shall include an examination and assessment of the current and future--

        (A) structure, roles, and missions of the Missile Defense Agency;

        (B) relationship of the Missile Defense Agency with--

          (i) the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics;

          (ii) the Office of the Under Secretary of Defense for Policy;

          (iii) the Director of Operational Test and Evaluation;

          (iv) the Commander of the United States Strategic Command and other combatant commanders;

          (v) the Joint Requirements Oversight Council; and

          (vi) the military departments;

        (C) operations and sustainment of missile defenses;

        (D) acquisition process for missile defense;

        (E) requirements process for missile defense; and

        (F) transition and transfer of missile defense capabilities to the military departments.

      (3) RECOMMENDATIONS- The study shall include recommendations as to how the Missile Defense Agency can be made more effective to support the needs of the warfighter, especially with regard to near-term missile defense capabilities. The study shall also examine the full range of options for the future of the Missile Defense Agency and shall include, but not be limited to, specific recommendations as to whether--

        (A) the Missile Defense Agency should be maintained in its current configuration;

        (B) the scope and nature of the Missile Defense Agency should be changed from an organization focused on research and development to an organization focused on combat support;

        (C) any functions and responsibilities should be added to the Missile Defense Agency, in part or in whole, from other entities such as the United States Strategic Command and the military departments; and

        (D) any functions and responsibilities of the Missile Defense Agency should be transferred, in part or in whole, to other entities such as the United States Strategic Command and the military departments.

    (c) Cooperation From Government- In carrying out the study, the Federally Funded Research and Development Center shall receive the full and timely cooperation of the Secretary of Defense and any other United States Government official in providing the Center with analyses, briefings, and other information necessary for the fulfillment of its responsibilities.

    (d) Report- Not later than September 1, 2008, the Federally Funded Research and Development Center shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on its findings, conclusions, and recommendations.

    (e) Funding- Funds for the study shall be provided from amounts appropriated for the Department of Defense.

SEC. 223. BUDGET AND ACQUISITION REQUIREMENTS FOR MISSILE DEFENSE AGENCY ACTIVITIES.

    (a) Revised Budget Structure- The budget justification materials submitted to Congress in support of the Department of Defense budget for any fiscal year after fiscal year 2009 (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) shall set forth separately amounts requested for the Missile Defense Agency for each of the following:

      (1) Research, development, test, and evaluation.

      (2) Procurement.

      (3) Operation and maintenance.

      (4) Military construction.

    (b) Revised Budget Structure for Fiscal Year 2009- The budget justification materials submitted to Congress in support of the Department of Defense budget for fiscal year 2009 (as submitted with the budget of the President under section 1105(a) of title 31, United States Code) shall--

      (1) identify all known and estimated operation and support costs; and

      (2) set forth separately amounts requested for the Missile Defense Agency for each of the following:

        (A) Research, development, test, and evaluation.

        (B) Procurement or advance procurement of long lead items, including for Terminal High Altitude Area Defense firing units 3 and 4, and for Standard Missile-3 Block 1A interceptors.

        (C) Military construction.

    (c) Availability of RDT&E Funds for Fiscal Year 2009- Upon approval by the Secretary of Defense, and consistent with the plan submitted under subsection (f), funds appropriated pursuant to an authorization of appropriations or otherwise made available for fiscal year 2009 for research, development, test, and evaluation for the Missile Defense Agency--

      (1) may be used for the fielding of ballistic missile defense capabilities approved previously by Congress; and

      (2) may not be used for--

        (A) military construction activities; or

        (B) procurement or advance procurement of long lead items, including for Terminal High Altitude Area Defense firing units 3 and 4, and for Standard Missile-3 Block 1A interceptors.

    (d) Full Funding Requirement Not Applicable to Use of Procurement Funds for Fiscal Years 2009 and 2010- In any case in which funds appropriated pursuant to an authorization of appropriations or otherwise made available for procurement for the Missile Defense Agency for fiscal years 2009 and 2010 are used for the fielding of ballistic missile defense capabilities, the funds may be used for the fielding of those capabilities on an `incremental' basis, notwithstanding any law or policy of the Department of Defense that would otherwise require a `full funding' basis.

    (e) Relationship to Other Law- Nothing in this provision shall be construed to alter or otherwise affect in any way the applicability of the requirements and other provisions of section 234(a) through (d) of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1837; 10 U.S.C. 2431 note).

    (f) Plan Required- Not later than March 1, 2008, the Director of the Missile Defense Agency shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a plan for transitioning the Missile Defense Agency from using exclusively research, development, test, and evaluation funds to using procurement, military construction, operations and maintenance, and research, development, test, and evaluation funds for the appropriate budget activities, and for transitioning from incremental funding to full funding for fiscal years after fiscal year 2010.

    (g) Objectives for Acquisition Activities-

      (1) IN GENERAL- Commencing as soon as practicable, but not later than the submittal to Congress of the budget for the President for fiscal year 2009 under section 1105(a) of title 31, United States Code, the Missile Defense Agency shall take appropriate actions to achieve the following objectives in its acquisition activities:

        (A) Improved transparency.

        (B) Improved accountability.

        (C) Enhanced oversight.

      (2) REQUIRED ACTIONS- In order to achieve the objectives specified in paragraph (1), the Missile Defense Agency shall, at a minimum, take actions as follows:

        (A) Establish acquisition cost, schedule, and performance baselines for each ballistic missile defense system element that--

          (i) has entered the equivalent of the systems development and demonstration phase of acquisition; or

          (ii) is being produced and acquired for operational fielding.

        (B) Provide unit cost reporting data for each ballistic missile defense system element covered by subparagraph (A), and secure independent estimation and verification of such cost reporting data.

        (C) Include, in the budget justification materials described in subsection (a), a description of actions being taken in the fiscal year in which such materials are submitted, and the actions to be taken in the fiscal year covered by such materials, to achieve such objectives.

      (3) SPECIFICATION OF BALLISTIC MISSILE DEFENSE SYSTEM ELEMENTS- The ballistic missile defense system elements that, as of October 2007, are ballistic missile defense system elements covered by paragraph (2)(A) are the following elements:

        (A) Ground-based Midcourse Defense.

        (B) Aegis Ballistic Missile Defense.

        (C) Terminal High Altitude Area Defense.

        (D) Forward-Based X-band radar-Transportable (AN/TPY-2).

        (E) Command, Control, Battle Management, and Communications.

        (F) Sea-Based X-band radar.

        (G) Upgraded Early Warning radars.

SEC. 224. LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON SM-3 BLOCK IIA MISSILE.

    None of the funds appropriated or otherwise made available pursuant to an authorization of appropriations in this Act may be obligated or expended to replace the unitary warhead on the SM-3 Block IIA missile with the Multiple Kill Vehicle until after the Secretary of Defense certifies to Congress that--

      (1) the United States and Japan have reached an agreement to replace the unitary warhead on the SM-3 Block IIA missile; and

      (2) replacing the unitary warhead on the SM-3 Block IIA missile with the Multiple Kill Vehicle will not delay the expected deployment date of 2014-2015 for that missile.

SEC. 225. EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended--

      (1) in paragraph (1), by striking `through 2008' and inserting `through 2013'; and

      (2) in paragraph (2), by striking `through 2009' and inserting `through 2014'.

SEC. 226. LIMITATION ON AVAILABILITY OF FUNDS FOR PROCUREMENT, CONSTRUCTION, AND DEPLOYMENT OF MISSILE DEFENSES IN EUROPE.

    (a) General Limitation- No funds authorized to be appropriated by this Act may be obligated or expended for procurement, site activation, construction, preparation of equipment for, or deployment of a long-range missile defense system in Europe until the following conditions have been met:

      (1) The governments of the countries in which major components of such missile defense system (including interceptors and associated radars) are proposed to be deployed have each given final approval to any missile defense agreements negotiated between such governments and the United States Government concerning the proposed deployment of such components in their countries.

      (2) Forty five days have elapsed following the receipt by Congress of the report required under subsection (c)(6).

    (b) Additional Limitation- In addition to the limitation in subsection (a), no funds authorized to be appropriated by this Act may be obligated or expended for the acquisition or deployment of operational missiles of a long-range missile defense system in Europe until the Secretary of Defense, after receiving the views of the Director of Operational Test and Evaluation, submits to Congress a report certifying that the proposed interceptor to be deployed as part of such missile defense system has demonstrated, through successful, operationally realistic flight testing, a high probability of working in an operationally effective manner.

    (c) Report on Independent Assessment for Ballistic Missile Defense in Europe-

      (1) INDEPENDENT ASSESSMENT- Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall select a federally funded research and development center to conduct an independent assessment of options for ballistic missile defense for forward deployed forces of the United States and its allies in Europe and for the United States homeland.

      (2) ANALYSIS OF ADMINISTRATION PROPOSAL- The study shall provide a full analysis of the Administration's proposal to protect forward-deployed forces of the United States and its allies in Europe, forward-deployed radars in Europe, and the United States by deploying, in Europe, interceptors and radars of the Ground-Based Midcourse Defense (GMD) system. In providing the analysis, the study shall examine each of the following matters:

        (A) The threat to Europe and the United States of ballistic missiles (including short-range, medium-range, intermediate-range, and long-range ballistic missiles) from Iran, including the likelihood and timing of such threats.

        (B) The technical capabilities of the system, as so deployed, to effectively protect forward-deployed forces of the United States and its allies in Europe, forward-deployed radars in Europe, and the United States against the threat specified in subparagraph (A).

        (C) The degree of coverage of the European territory of members of the North Atlantic Treaty Organization.

        (D) The political implications of such a deployment on the United States, the North Atlantic Treaty Organization, and other interested parties.

        (E) Integration and interoperability with North Atlantic Treaty Organization missile defenses.

        (F) The operational issues associated with such a deployment, including operational effectiveness.

        (G) The force structure implications of such a deployment, including a comparative analysis of alternative deployment options.

        (H) The budgetary implications of such a deployment, including possible allied cost sharing, and the cost-effectiveness of such a deployment.

        (I) Command and control arrangements, including any command and control roles for the United States European Command and the North Atlantic Treaty Organization.

        (J) Potential opportunities for participation by the Government of Russia.

      (3) ANALYSIS OF ALTERNATIVES- The study shall also provide a full analysis of alternative systems that could be deployed to fulfill, in whole or in part, the protective purposes of the Administration's proposal. The alternative systems shall include a range of feasible combinations of other missile defense systems that are available or are expected to be available as of 2015 and 2020. These should include, but not be limited to, the following:

        (A) The Patriot PAC-3 system.

        (B) The Medium Extended Air Defense System.

        (C) The Aegis Ballistic Missile Defense system, with all variants of the Standard Missile-3 interceptor.

        (D) The Terminal High Altitude Area Defense (THAAD) system.

        (E) Forward-Based X-band Transportable (FBX-T) radars.

        (F) The Kinetic Energy Interceptor (KEI).

        (G) Other non-United States, North Atlantic Treaty Organization missile defense systems or components.

      (4) MATTERS EXAMINED- In providing the analysis, the study shall examine, for each alternative system included, each of the matters specified in paragraph (2).

      (5) COOPERATION OF OTHER AGENCIES- The Secretary of Defense shall provide the federally funded research and development center selected under paragraph (1) data, analyses, briefings, and other information as the center considers necessary to carry out the assessment described in that paragraph. Furthermore, the Director of National Intelligence and the heads of other departments and agencies of the United States Government shall also provide the center the appropriate data, analyses, briefings, and other information necessary for the purpose of carrying out the assessment described in that paragraph.

      (6) REPORT- Not later than 180 days after the date of the enactment of this Act, the federally funded research and development center shall submit to the congressional defense committees and the Secretary of Defense a report on the results of the study. The report shall be in unclassified form, but may include a classified annex.

      (7) FUNDING- Of the amounts appropriated or otherwise made available pursuant to the authorization of appropriations in section 201(4), $1,000,000 is available to carry out the study required by this subsection.

    (d) Construction- Nothing in this section shall be construed to limit continuing obligation and expenditure of funds for missile defense, including for research and development and for other activities not otherwise limited by subsection (a) or (b), including, but not limited to, site surveys, studies, analysis, and planning and design for the proposed missile defense deployment in Europe.

SEC. 227. SENSE OF CONGRESS ON MISSILE DEFENSE COOPERATION WITH ISRAEL.

    (a) Sense of Congress- It is the sense of Congress that the United States should have an active program of ballistic missile defense cooperation with Israel, and should take steps to improve the coordination, interoperability, and integration of United States and Israeli missile defense capabilities, and to enhance the capability of both nations to defend against ballistic missile threats present in the Middle East region.

    (b) Report-

      (1) IN GENERAL- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the status of missile defense cooperation between the United States and Israel.

      (2) CONTENT- The report submitted under this subsection shall include each of the following:

        (A) A description of the current program of ballistic missile defense cooperation between the United States and Israel, including its objectives and results to date.

        (B) A description of steps taken within the previous five years to improve the interoperability and coordination of the missile defense capabilities of the United States and Israel.

        (C) A description of steps planned to be taken by the governments of the United States and Israel in the future to improve the coordination, interoperability, and integration of their missile defense capabilities.

        (D) A description of joint efforts of the United States and Israel to develop ballistic missile defense technologies.

        (E) A description of joint missile defense exercises and training that have been conducted by the United States and Israel, and the lessons learned from those exercises.

        (F) A description of the joint missile defense testing activities of the United States and Israel, past and planned, and the benefits of such joint testing activities.

        (G) A description of how the United States and Israel share threat assessments regarding the ballistic missile threat.

        (H) Any other matters that the Secretary considers appropriate.

SEC. 228. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT OF MISSILE DEFENSE INTERCEPTORS IN ALASKA.

    None of the funds authorized to be appropriated by this Act may be obligated or expended to deploy more than 40 Ground-Based Interceptors at Fort Greely, Alaska, until the Secretary of Defense, after receiving the views of the Director of Operational Test and Evaluation, submits to Congress a certification that the Block 2006 Ground-based Midcourse Defense element of the Ballistic Missile Defense System has demonstrated, through operationally realistic end-to-end flight testing, that it has a high probability of working in an operationally effective manner.

SEC. 229. POLICY OF THE UNITED STATES ON PROTECTION OF THE UNITED STATES AND ITS ALLIES AGAINST IRANIAN BALLISTIC MISSILES.

    (a) Finding- Congress finds that Iran maintains a nuclear program in continued defiance of the international community while developing ballistic missiles of increasing sophistication and range that--

      (1) pose a threat to--

        (A) the forward-deployed forces of the United States;

        (B) North Atlantic Treaty Organization (NATO) allies in Europe; and

        (C) other allies and friendly foreign countries in the region; and

      (2) eventually could pose a threat to the United States homeland.

    (b) Policy of the United States- It is the policy of the United States--

      (1) to develop, test, and deploy, as soon as technologically feasible, in conjunction with allies and friendly foreign countries whenever possible, an effective defense against the threat from Iran described in subsection (a) that will provide protection--

        (A) for the forward-deployed forces of the United States, NATO allies, and other allies and friendly foreign countries in the region; and

        (B) for the United States homeland;

      (2) to encourage the NATO alliance to accelerate its efforts to--

        (A) protect NATO territory in Europe against the existing threat of Iranian short- and medium-range ballistic missiles; and

        (B) facilitate the ability of NATO allies to acquire the missile defense systems needed to provide a wide-area defense capability against short- and medium-range ballistic missiles; and

      (3) to proceed with the activities specified in paragraphs (1) and (2) in a manner such that any missile defense systems fielded by the United States in Europe are integrated with or complementary to missile defense systems fielded by NATO in Europe.

Subtitle D--Other Matters

SEC. 231. COORDINATION OF HUMAN SYSTEMS INTEGRATION ACTIVITIES RELATED TO ACQUISITION PROGRAMS.

    (a) In General- The Secretary of Defense, acting through the Under Secretary of Defense for Acquisition, Technology, and Logistics, shall coordinate and manage human systems integration activities throughout the acquisition programs of the Department of Defense.

    (b) Administration- In carrying out subsection (a), the Secretary shall designate a senior official to be responsible for the effort.

    (c) Responsibilities- In carrying out this section, the senior official designated in subsection (b) shall--

      (1) coordinate the planning, management, and execution of such activities; and

      (2) identify and recommend, as appropriate, resource requirements for human systems integration activities.

    (d) Designation- The designation required by subsection (b) shall be made not later than 60 days after the date of the enactment of this Act.

SEC. 232. EXPANSION OF AUTHORITY FOR PROVISION OF LABORATORY FACILITIES, SERVICES, AND EQUIPMENT.

    Section 2539b of title 10, United States Code, is amended--

      (1) in subsection (a)--

        (A) in paragraph (2) by striking `and' at the end;

        (B) in paragraph (3) by striking the period at the end and inserting `; and'; and

        (C) by adding at the end the following:

      `(4) make available to any person or entity, through leases, contracts, or other appropriate arrangements, facilities, services, and equipment of any government laboratory, research center, or range, if the facilities, services, and equipment provided will not be in direct competition with the domestic private sector.';

      (2) in subsection (c)--

        (A) by striking `for services'; and

        (B) by striking `subsection (a)(3)' and inserting `subsections (a)(3) and (a)(4)'; and

      (3) in subsection (d)--

        (A) by striking `for services made available'; and

        (B) by striking `subsection (a)(3)' and inserting `subsections (a)(3) and (a)(4)'.

SEC. 233. MODIFICATION OF COST SHARING REQUIREMENT FOR TECHNOLOGY TRANSITION INITIATIVE.

    Paragraph (2) of section 2359a(f) of title 10, United States Code, is amended to read as follows:

    `(2) The amount of funds provided to a project under paragraph (1) by the military department or Defense Agency concerned shall be the appropriate share of the military department or Defense Agency, as the case may be, of the cost of the project, as determined by the Manager.'.

SEC. 234. REPORT ON IMPLEMENTATION OF MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Report Required- Not later than September 1, 2008, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the implementation of the technologies and processes developed under the Manufacturing Technology Program required by section 2521 of title 10, United States Code.

    (b) Elements- The report shall identify each technology or process implemented and, for each such technology or process, shall identify--

      (1) the project of the Manufacturing Technology Program through which the technology or process was developed, the Federal and non-Federal participants in that project, and the duration of the project;

      (2) the organization or program implementing the technology or process, and a description of the implementation;

      (3) the funding required to implement the technology or process, including--

        (A) funds provided by military departments and Defense Agencies under the Manufacturing Technology Program;

        (B) funds provided by the Department of Defense, or any element of the Department, to co-develop the technology or process;

        (C) to the maximum extent practicable, funds provided by the Department of Defense, or any element of the Department, to--

          (i) mature the technology or process prior to transition to the Manufacturing Technology Program; and

          (ii) provide for the implementation of the technology or process;

      (4) the total value of industry cost share, if applicable;

      (5) if applicable, the total value of cost avoidance or cost savings directly attributable to the implementation of the technology or process; and

      (6) a description of any system performance enhancements, technology performance enhancements, or improvements in a manufacturing readiness level of a system or a technology.

    (c) Definition- For purposes of this section, the term `implementation' refers to--

      (1) the use of a technology or process in the manufacture of defense materiel;

      (2) the inclusion of a technology or process in the systems engineering plan for a program of record; or

      (3) the use of a technology or process for the manufacture of commercial items.

    (d) Scope- The report shall include technologies or processes developed with funds appropriated or otherwise made available for the Manufacturing Technology programs of the military departments and Defense Agencies for fiscal years 2003 through 2005.

SEC. 235. ASSESSMENT OF SUFFICIENCY OF TEST AND EVALUATION PERSONNEL.

    (a) Assessment Required- The Director of Operational Test and Evaluation shall assess whether the Director's professional staff meets the requirement of section 139(j) of title 10, United States Code, that the staff be sufficient to carry out the Director's duties and responsibilities.

    (b) Inclusion in Report- The Director shall include the results of the assessment in the report, required by section 139(g) of title 10, United States Code, summarizing the operational test and evaluation activities during fiscal year 2007.

SEC. 236. REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON TECHNOLOGY AREA REVIEW AND ASSESSMENT SUMMARIES.

    Subsection (c) of section 253 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3179; 10 U.S.C. 2501 note) is repealed.

SEC. 237. MODIFICATION OF NOTICE AND WAIT REQUIREMENT FOR OBLIGATION OF FUNDS FOR FOREIGN COMPARATIVE TEST PROGRAM.

    Paragraph (3) of section 2350a(g) of title 10, United States Code, is amended to read as follows:

    `(3) The Director of Defense Research and Engineering shall notify the congressional defense committees of the intent to obligate funds made available to carry out this subsection not less than 7 days before such funds are obligated.'.

SEC. 238. STRATEGIC PLAN FOR THE MANUFACTURING TECHNOLOGY PROGRAM.

    (a) In General- Section 2521 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(e) Five-Year Strategic Plan- (1) The Secretary shall develop a plan for the program that includes the following:

      `(A) The overall manufacturing technology goals, milestones, priorities, and investment strategy for the program.

      `(B) The objectives of, and funding for, the program for each military department and each Defense Agency that shall participate in the program during the period of the plan.

    `(2) The Secretary shall include in the plan mechanisms for assessing the effectiveness of the program under the plan.

    `(3) The Secretary shall update the plan on a biennial basis.

    `(4) Each plan, and each update to the plan, shall cover a period of five fiscal years.'.

    (b) Initial Development and Submission of Plan-

      (1) DEVELOPMENT- The Secretary of Defense shall develop the strategic plan required by subsection (e) of section 2521 of title 10, United States Code (as added by subsection (a) of this section), so that the plan goes into effect at the beginning of fiscal year 2009.

      (2) SUBMISSION- Not later than the date on which the budget of the President for fiscal year 2010 is submitted to Congress under section 1105 of title 31, United States Code, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives the plan specified in paragraph (1).

SEC. 239. MODIFICATION OF AUTHORITIES ON COORDINATION OF DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH WITH SIMILAR FEDERAL PROGRAMS.

    Section 257(e)(2) of the National Defense Authorization Act for Fiscal Year 1995 (10 U.S.C. 2358 note) is amended by striking `shall' each place it appears and inserting `may'.

SEC. 240. ENHANCEMENT OF DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Program Purposes- Subsection (b) of section 246 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2500; 10 U.S.C. 2358 note) is amended--

      (1) in paragraph (2), by striking `in nanoscale research and development' and inserting `in the National Nanotechnology Initiative and with the National Nanotechnology Coordination Office under section 3 of the 21st Century Nanotechnology Research and Development Act (15 U.S.C. 7502)'; and

      (2) in paragraph (3), by striking `portfolio of fundamental and applied nanoscience and engineering research initiatives' and inserting `portfolio of nanotechnology research and development initiatives'.

    (b) Program Administration-

      (1) ADMINISTRATION THROUGH UNDER SECRETARY OF DEFENSE FOR ACQUISITION, TECHNOLOGY, AND LOGISTICS- Subsection (c) of such section is amended--

        (A) by striking `the Director of Defense Research and Engineering' and inserting `the Under Secretary of Defense for Acquisition, Technology, and Logistics'; and

        (B) by striking `The Director' and inserting `The Under Secretary'.

      (2) OTHER ADMINISTRATIVE MATTERS- Such subsection is further amended--

        (A) in paragraph (2), by striking `the Department's increased investment in nanotechnology research and development and the National Nanotechnology Initiative; and' and inserting `investments by the Department and other departments and agencies participating in the National Nanotechnology Initiative in nanotechnology research and development;';

        (B) in paragraph (3), by striking the period at the end and inserting `; and'; and

        (C) by adding at the end the following new paragraph:

      `(4) oversee Department of Defense participation in interagency coordination of the program with other departments and agencies participating in the National Nanotechnology Initiative.'.

    (c) Program Activities- Such section is further amended--

      (1) by striking subsection (d); and

      (2) by adding at the end the following new subsection (d):

    `(d) Strategic Plan- The Under Secretary shall develop and maintain a strategic plan for defense nanotechnology research and development that--

      `(1) is integrated with the strategic plan for the National Nanotechnology Initiative and the strategic plans of the Director of Defense Research and Engineering, the military departments, and the Defense Agencies; and

      `(2) includes a clear strategy for transitioning the research into products needed by the Department.'.

    (d) Reports- Such section is further amended by adding at the end the following new subsection:

    `(e) Reports-

      `(1) IN GENERAL- Not later than March 1 of each of 2009, 2011, and 2013, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the congressional defense committees a report on the program.

      `(2) MATTERS INCLUDED- Each report under paragraph (1) shall include the following:

        `(A) A review of--

          `(i) the long-term challenges and specific technical goals of the program; and

          `(ii) the progress made toward meeting such challenges and achieving such goals.

        `(B) An assessment of current and proposed funding levels for the program, including an assessment of the adequacy of such funding levels to support program activities.

        `(C) A review of the coordination of activities under the program within the Department of Defense, with other departments and agencies of the United States, and with the National Nanotechnology Initiative.

        `(D) A review and analysis of the findings and recommendations relating to the Department of Defense of the most recent triennial external review of the National Nanotechnology Program under section 5 of the 21st Century Nanotechnology Research and Development Act (15 U.S.C. 1704), and a description of initiatives of the Department to implement such recommendations.

        `(E) An assessment of technology transition from nanotechnology research and development to enhanced warfighting capabilities, including contributions from the Department of Defense Small Business Innovative Research and Small Business Technology Transfer Research programs, and the Department of Defense Manufacturing Technology program, and an identification of acquisition programs and deployed defense systems that are incorporating nanotechnologies.

        `(F) An assessment of global nanotechnology research and development in areas of interest to the Department, including an identification of the use of nanotechnologies in any foreign defense systems.

        `(G) An assessment of the defense nanotechnology manufacturing and industrial base and its capability to meet the near and far term requirements of the Department.

        `(H) Such recommendations for additional activities under the program to meet emerging national security requirements as the Under Secretary considers appropriate.

      `(3) CLASSIFICATION- Each report under paragraph (1) shall be submitted in unclassified form, but may include a classified annex.'.

SEC. 241. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER ASSESSMENT OF THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE COMPETITIVE RESEARCH.

    (a) Assessment Required- The Secretary of Defense shall--

      (1) utilize a defense federally funded research and development center to carry out an assessment of the effectiveness of the Defense Experimental Program to Stimulate Competitive Research; and

      (2) not later than nine months after the date of the enactment of this Act, submit to the Committees on Armed Services of the Senate and the House of Representatives a report on that assessment.

    (b) Matters Assessed- The report under subsection (a) shall include the following:

      (1) A description and assessment of the tangible results and progress toward the objectives of the program, including--

        (A) an identification of any past program activities that led to, or were fundamental to, applications used by, or supportive of, operational users; and

        (B) an assessment of whether the program has expanded the national research infrastructure.

      (2) An assessment whether the activities undertaken under the program are consistent with the statute authorizing the program.

      (3) An assessment whether the various elements of the program, such as structure, funding, staffing, project solicitation and selection, and administration, are working effectively and efficiently to support the effective execution of the program.

      (4) A description and assessment of past and ongoing activities of State planning committees under the program in supporting the achievement of the objectives of the program.

      (5) An analysis of the advantages and disadvantages of having an institution-based formula for qualification to participate in the program when compared with the advantages and disadvantages of having a State-based formula for qualification to participate in supporting defense missions and the objective of expanding the Nation's defense research infrastructure.

      (6) An identification of mechanisms for improving the management and implementation of the program, including modification of the statute authorizing the program, Department regulations, program structure, funding levels, funding strategy, or the activities of the State committees.

      (7) Any other matters the Secretary considers appropriate.

SEC. 242. COST-BENEFIT ANALYSIS OF PROPOSED FUNDING REDUCTION FOR HIGH ENERGY LASER SYSTEMS TEST FACILITY.

    (a) Report Required- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report containing a cost-benefit analysis of the proposed reduction in Army research, development, test, and evaluation funding for the High Energy Laser Systems Test Facility.

    (b) Evaluation of Impact on Other Military Departments- The report required under subsection (a) shall include an evaluation of the impact of the proposed reduction in funding on each Department of Defense organization or activity that utilizes the High Energy Laser Systems Test Facility.

SEC. 243. PROMPT GLOBAL STRIKE.

    (a) Research, Development, and Testing Plan- The Secretary of Defense shall submit to the congressional defense committees a research, development, and testing plan for prompt global strike program objectives for fiscal years 2008 through 2013.

    (b) Plan for Obligation and Expenditure of Funds-

      (1) IN GENERAL- The Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the congressional defense committees a plan for obligation and expenditure of funds available for prompt global strike for fiscal year 2008. The plan shall include correlations between each technology application being developed in fiscal year 2008 and the prompt global strike alternative or alternatives toward which the technology application applies.

      (2) LIMITATION- The Under Secretary shall not implement the plan required by paragraph (1) until at least 10 days after the plan is submitted as required by that paragraph.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

      Sec. 301. Operation and maintenance funding.

Subtitle B--Environmental Provisions

      Sec. 311. Reimbursement of Environmental Protection Agency for certain costs in connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington.

      Sec. 312. Reimbursement of Environmental Protection Agency for certain costs in connection with the Arctic Surplus Superfund Site, Fairbanks, Alaska.

      Sec. 313. Payment to Environmental Protection Agency of stipulated penalties in connection with Jackson Park Housing Complex, Washington.

      Sec. 314. Report on control of the brown tree snake.

      Sec. 315. Notification of certain residents and civilian employees at Camp Lejeune, North Carolina, of exposure to drinking water contamination.

Subtitle C--Workplace and Depot Issues

      Sec. 321. Availability of funds in Defense Information Systems Agency Working Capital Fund for technology upgrades to Defense Information Systems Network.

      Sec. 322. Modification to public-private competition requirements before conversion to contractor performance.

      Sec. 323. Public-private competition at end of period specified in performance agreement not required.

      Sec. 324. Guidelines on insourcing new and contracted out functions.

      Sec. 325. Restriction on Office of Management and Budget influence over Department of Defense public-private competitions.

      Sec. 326. Bid protests by Federal employees in actions under Office of Management and Budget Circular A-76.

      Sec. 327. Public-private competition required before conversion to contractor performance.

      Sec. 328. Extension of authority for Army industrial facilities to engage in cooperative activities with non-Army entities.

      Sec. 329. Reauthorization and modification of multi-trades demonstration project.

      Sec. 330. Pilot program for availability of working-capital funds to Army for certain product improvements.

Subtitle D--Extension of Program Authorities

      Sec. 341. Extension of Arsenal Support Program Initiative.

      Sec. 342. Extension of period for reimbursement for helmet pads purchased by members of the Armed Forces deployed in contingency operations.

      Sec. 343. Extension of temporary authority for contract performance of security guard functions.

Subtitle E--Reports

      Sec. 351. Reports on National Guard readiness for emergencies and major disasters.

      Sec. 352. Annual report on prepositioned materiel and equipment.

      Sec. 353. Report on incremental cost of early 2007 enhanced deployment.

      Sec. 354. Modification of requirements of Comptroller General report on the readiness of Army and Marine Corps ground forces.

      Sec. 355. Plan to improve readiness of ground forces of active and reserve components.

      Sec. 356. Independent assessment of Civil Reserve Air Fleet viability.

      Sec. 357. Department of Defense Inspector General report on physical security of Department of Defense installations.

      Sec. 358. Review of high-altitude aviation training.

      Sec. 359. Reports on safety measures and encroachment issues and master plan for Warren Grove Gunnery Range, New Jersey.

      Sec. 360. Report on search and rescue capabilities of the Air Force in the northwestern United States.

      Sec. 361. Report and master infrastructure recapitalization plan for Cheyenne Mountain Air Station, Colorado.

Subtitle F--Other Matters

      Sec. 371. Enhancement of corrosion control and prevention functions within Department of Defense.

      Sec. 372. Authority for Department of Defense to provide support for certain sporting events.

      Sec. 373. Authority to impose reasonable restrictions on payment of full replacement value for lost or damaged personal property transported at Government expense.

      Sec. 374. Priority transportation on Department of Defense aircraft of retired members residing in Commonwealths and possessions of the United States for certain health care services.

      Sec. 375. Recovery of missing military property.

      Sec. 376. Retention of combat uniforms by members of the Armed Forces deployed in support of contingency operations.

      Sec. 377. Issue of serviceable material of the Navy other than to Armed Forces.

      Sec. 378. Reauthorization of Aviation Insurance Program.

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2008 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:

      (1) For the Army, $28,787,219,000.

      (2) For the Navy, $33,355,683,000.

      (3) For the Marine Corps, $4,967,193,000.

      (4) For the Air Force, $33,118,462,000.

      (5) For Defense-wide activities, $22,500,253,000.

      (6) For the Army Reserve, $2,509,862,000.

      (7) For the Navy Reserve, $1,186,883,000.

      (8) For the Marine Corps Reserve, $208,637,000.

      (9) For the Air Force Reserve, $2,821,817,000.

      (10) For the Army National Guard, $5,857,409,000.

      (11) For the Air National Guard, $5,456,668,000.

      (12) For the United States Court of Appeals for the Armed Forces, $11,971,000.

      (13) For Environmental Restoration, Army, $434,879,000.

      (14) For Environmental Restoration, Navy, $300,591,000.

      (15) For Environmental Restoration, Air Force, $458,428,000.

      (16) For Environmental Restoration, Defense-wide, $12,751,000.

      (17) For Environmental Restoration, Formerly Used Defense Sites, $270,249,000.

      (18) For Overseas Humanitarian, Disaster, and Civic Aid programs, $103,300,000.

      (19) For Former Soviet Union Threat Reduction programs, $428,048,000.

      (20) For the Overseas Contingency Operations Transfer Fund, $5,000,000.

Subtitle B--Environmental Provisions

SEC. 311. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND SITE, MOSES LAKE, WASHINGTON.

    (a) Authority To Reimburse-

      (1) TRANSFER AMOUNT- Using funds described in subsection (b), the Secretary of Defense may, notwithstanding section 2215 of title 10, United States Code, transfer not more than $91,588.51 to the Moses Lake Wellfield Superfund Site 10-6J Special Account.

      (2) PURPOSE OF REIMBURSEMENT- The payment under paragraph (1) is to reimburse the Environmental Protection Agency for its costs incurred in overseeing a remedial investigation/feasibility study performed by the Department of the Army under the Defense Environmental Restoration Program at the former Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, Washington.

      (3) INTERAGENCY AGREEMENT- The reimbursement described in paragraph (2) is provided for in the interagency agreement entered into by the Department of the Army and the Environmental Protection Agency for the Moses Lake Wellfield Superfund Site in March 1999.

    (b) Source of Funds- Any payment under subsection (a) shall be made using funds authorized to be appropriated by section 301(16) for operation and maintenance for Environmental Restoration, Defense-wide.

    (c) Use of Funds- The Environmental Protection Agency shall use the amount transferred under subsection (a) to pay costs incurred by the Agency at the Moses Lake Wellfield Superfund Site.

SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN COSTS IN CONNECTION WITH THE ARCTIC SURPLUS SUPERFUND SITE, FAIRBANKS, ALASKA.

    (a) Authority To Reimburse-

      (1) TRANSFER AMOUNT- Using funds described in subsection (b), the Secretary of Defense may, notwithstanding section 2215 of title 10, United States Code, transfer not more than $186,625.38 to the Hazardous Substance Superfund.

      (2) PURPOSE OF REIMBURSEMENT- The payment under paragraph (1) is to reimburse the Environmental Protection Agency for costs incurred pursuant to the agreement known as `In the Matter of Arctic Surplus Superfund Site, U.S. EPA Docket Number CERCLA-10-2003-0114: Administrative Order on Consent for Remedial Design and Remedial Action', entered into by the Department of Defense and the Environmental Protection Agency on December 11, 2003.

    (b) Source of Funds- Any payment under subsection (a) shall be made using funds authorized to be appropriated by section 301(16) for operation and maintenance for Environmental Restoration, Defense-wide.

    (c) Use of Funds- The Environmental Protection Agency shall use the amount transferred under subsection (a) to pay costs incurred by the Agency pursuant to the agreement described in paragraph (2) of such subsection.

SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION AGENCY OF STIPULATED PENALTIES IN CONNECTION WITH JACKSON PARK HOUSING COMPLEX, WASHINGTON.

    (a) Authority To Transfer Funds-

      (1) TRANSFER AMOUNT- Using funds described in subsection (b), the Secretary of the Navy may, notwithstanding section 2215 of title 10, United States Code, transfer not more than $40,000.00 to the Hazardous Substance Superfund.

      (2) PURPOSE OF TRANSFER- The payment under paragraph (1) is to pay a stipulated penalty assessed by the Environmental Protection Agency on October 25, 2005, against the Jackson Park Housing Complex, Washington, for the failure by the Navy to timely submit a draft final Phase II Remedial Investigation Work Plan for the Jackson Park Housing Complex Operable Unit (OU-3T-JPHC) pursuant to a schedule included in an Interagency Agreement (Administrative Docket No. CERCLA-10-2005-0023).

    (b) Source of Funds- Any payment under subsection (a) shall be made using funds authorized to be appropriated by section 301(14) for operation and maintenance for Environmental Restoration, Navy.

    (c) Use of Funds- The amount transferred under subsection (a) shall be used by the Environmental Protection Agency to pay the penalty described under paragraph (2) of such subsection.

SEC. 314. REPORT ON CONTROL OF THE BROWN TREE SNAKE.

    (a) Findings- Congress finds the following:

      (1) The brown tree snake (Boiga irregularis), an invasive species, is found in significant numbers on military installations and in other areas on Guam, and constitutes a serious threat to the ecology of Guam.

      (2) If introduced into Hawaii, the Commonwealth of the Northern Mariana Islands, or the continental United States, the brown tree snake would pose an immediate and serious economic and ecological threat.

      (3) The most probable vector for the introduction of the brown tree snake into Hawaii, the Commonwealth of the Northern Mariana Islands, or the continental United States is the movement from Guam of military aircraft, personnel, and cargo, including the household goods of military personnel and other military assets.

      (4) It is probable that the movement of military aircraft, personnel, and cargo, including the household goods of military personnel, from Guam to Hawaii, the Commonwealth of the Northern Mariana Islands, or the continental United States will increase significantly coincident with the increase in the number of military units and personnel stationed on Guam.

      (5) Current policies, programs, procedures, and dedicated resources of the Department of Defense and of other departments and agencies of the United States may not be sufficient to adequately address the management, control, and eradication of the brown tree snake on Guam and the increasing threat of the introduction of the brown tree snake from Guam into Hawaii, the Commonwealth of the Northern Mariana Islands, the continental United States, or other non-native environments.

    (b) Report- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the following:

      (1) The actions currently being taken (including the resources being made available) by the Department of Defense to control, and to develop new or existing techniques to control, the brown tree snake on Guam and to prevent the introduction of the brown tree snake into Hawaii, the Commonwealth of the Northern Mariana Island, the continental United States, or any other non-native environment as a result of the movement from Guam of military aircraft, personnel, and cargo, including the household goods of military personnel and other military assets. Such actions shall include any actions taken by the Department of Defense to implement the recommendations of the Brown Tree Snake Review Panel commissioned by the Department of the Interior, as contained in the Review Panel's final report entitled `Review of Brown Tree Snake Problems and Control Programs' published in March 2005.

      (2) Current plans for enhanced future actions, policies, and procedures and increased levels of resources in order to ensure that the projected increase of military personnel stationed on Guam does not increase the threat of introduction of the brown tree snake from Guam into Hawaii, the Commonwealth of the Northern Mariana Islands, the continental United States, or other non-native environments.

      (3) The results of management, control, and eradication carried out by the Secretary of Defense, in consultation with the Secretary of the Interior, before the date on which the report is submitted with respect to brown tree snakes through the integrated natural resource management plans prepared for military installations in Guam under the pilot program authorized by section 101(g) of the Sikes Act (16 U.S.C. 670a(g)).

SEC. 315. NOTIFICATION OF CERTAIN RESIDENTS AND CIVILIAN EMPLOYEES AT CAMP LEJEUNE, NORTH CAROLINA, OF EXPOSURE TO DRINKING WATER CONTAMINATION.

    (a) Notification of Individuals Served by Tarawa Terrace Water Distribution System, Including Knox Trailer Park- Not later than 1 year after the date of the enactment of this Act, the Secretary of the Navy shall make reasonable efforts to identify and notify directly individuals who were served by the Tarawa Terrace Water Distribution System, including Knox Trailer Park, at Camp Lejeune, North Carolina, during the years 1958 through 1987 that they may have been exposed to drinking water contaminated with tetrachloroethylene (PCE).

    (b) Notification of Individuals Served by Hadnot Point Water Distribution System- Not later than 1 year after the Agency for Toxic Substances and Disease Registry (ATSDR) completes its water modeling study of the Hadnot Point water distribution system, the Secretary of the Navy shall make reasonable efforts to identify and notify directly individuals who were served by the system during the period identified in the study of the drinking water contamination to which they may have been exposed.

    (c) Notification of Former Civilian Employees at Camp Lejeune- Not later than 1 year after the date of the enactment of this Act, the Secretary of the Navy shall make reasonable efforts to identify and notify directly civilian employees who worked at Camp Lejeune during the period identified in the ATSDR drinking water study of the drinking water contamination to which they may have been exposed.

    (d) Circulation of Health Survey-

      (1) FINDINGS- Congress makes the following findings:

        (A) Notification and survey efforts related to the drinking water contamination described in this section are necessary due to the potential negative health impacts of these contaminants.

        (B) The Secretary of the Navy will not be able to identify or contact all former residents and former employees due to the condition, non-existence, or accessibility of records.

        (C) It is the intent of Congress that the Secretary of the Navy contact as many former residents and former employees as quickly as possible.

      (2) ATSDR HEALTH SURVEY-

        (A) DEVELOPMENT-

          (i) IN GENERAL- Not later than 120 days after the date of the enactment of this Act, the ATSDR, in consultation with a well-qualified contractor selected by the ATSDR, shall develop a health survey that would voluntarily request of individuals described in subsections (a), (b), and (c) personal health information that may lead to scientifically useful health information associated with exposure to trichloroethylene (TCE), PCE, vinyl chloride, and the other contaminants identified in the ATSDR studies that may provide a basis for further reliable scientific studies of potentially adverse health impacts of exposure to contaminated water at Camp Lejeune.

          (ii) FUNDING- The Secretary of the Navy is authorized to provide from available funds the necessary funding for the ATSDR to develop the health survey.

        (B) INCLUSION WITH NOTIFICATION- The survey developed under subparagraph (A) shall be distributed by the Secretary of the Navy concurrently with the direct notification required under subsections (a), (b), and (c).

    (e) Use of Media To Supplement Notification- The Secretary of the Navy may use media notification as a supplement to direct notification of individuals described under subsections (a), (b), and (c). Media notification may reach those individuals not identifiable via remaining records. Once individuals respond to media notifications, the Secretary will add them to the contact list to be included in future information updates.

Subtitle C--Workplace and Depot Issues

SEC. 321. AVAILABILITY OF FUNDS IN DEFENSE INFORMATION SYSTEMS AGENCY WORKING CAPITAL FUND FOR TECHNOLOGY UPGRADES TO DEFENSE INFORMATION SYSTEMS NETWORK.

    (a) In General- Notwithstanding section 2208 of title 10, United States Code, funds in the Defense Information Systems Agency Working Capital Fund may be used for expenses directly related to technology upgrades to the Defense Information Systems Network.

    (b) Limitation on Certain Projects- Funds may not be used under subsection (a) for--

      (1) any technology insertion to the Defense Information Systems Network that significantly changes the performance envelope of an end item; or

      (2) any component with an estimated total cost in excess of $500,000.

    (c) Limitation in Fiscal Year Pending Timely Report- If in any fiscal year the report required by paragraph (1) of subsection (d) is not submitted by the date specified in paragraph (2) of subsection (d), funds may not be used under subsection (a) in such fiscal year during the period--

      (1) beginning on the date specified in paragraph (2) of subsection (d); and

      (2) ending on the date of the submittal of the report under paragraph (1) of subsection (d).

    (d) Annual Report-

      (1) IN GENERAL- The Director of the Defense Information Systems Agency shall submit to the congressional defense committees each fiscal year a report on the use of the authority in subsection (a) during the preceding fiscal year.

      (2) DEADLINE FOR SUBMITTAL- The report required by paragraph (1) in a fiscal year shall be submitted not later than 60 days after the date of the submittal to Congress of the budget of the President for the succeeding fiscal year pursuant to section 1105 of title 31, United States Code.

    (e) Sunset- The authority in subsection (a) shall expire on October 1, 2011.

SEC. 322. MODIFICATION TO PUBLIC-PRIVATE COMPETITION REQUIREMENTS BEFORE CONVERSION TO CONTRACTOR PERFORMANCE.

    (a) Comparison of Retirement System Costs- Section 2461(a)(1) of title 10, United States Code, is amended--

      (1) in subparagraph (F), by striking `and' at the end;

      (2) by redesignating subparagraph (G) as subparagraph (H); and

      (3) by inserting after subparagraph (F) the following new subparagraph (G):

      `(G) requires that the contractor shall not receive an advantage for a proposal that would reduce costs for the Department of Defense by--

        `(i) not making an employer-sponsored health insurance plan (or payment that could be used in lieu of such a plan), health savings account, or medical savings account available to the workers who are to be employed to perform the function under the contract;

        `(ii) offering to such workers an employer-sponsored health benefits plan that requires the employer to contribute less towards the premium or subscription share than the amount that is paid by the Department of Defense for health benefits for civilian employees of the Department under chapter 89 of title 5; or

        `(iii) offering to such workers a retirement benefit that, in any year, costs less than the annual retirement cost factor applicable to civilian employees of the Department of Defense under chapter 84 of title 5; and'.

    (b) Conforming Amendments- Such title is further amended--

      (1) by striking section 2467; and

      (2) in section 2461--

        (A) by redesignating subsections (b) through (d) as subsections (c) through (e), respectively; and

        (B) by inserting after subsection (a) the following new subsection (b):

    `(b) Requirement to Consult DOD Employees- (1) Each officer or employee of the Department of Defense responsible for determining under Office of Management and Budget Circular A-76 whether to convert to contractor performance any function of the Department of Defense--

      `(A) shall, at least monthly during the development and preparation of the performance work statement and the management efficiency study used in making that determination, consult with civilian employees who will be affected by that determination and consider the views of such employees on the development and preparation of that statement and that study; and

      `(B) may consult with such employees on other matters relating to that determination.

    `(2)(A) In the case of employees represented by a labor organization accorded exclusive recognition under section 7111 of title 5, consultation with representatives of that labor organization shall satisfy the consultation requirement in paragraph (1).

    `(B) In the case of employees other than employees referred to in subparagraph (A), consultation with appropriate representatives of those employees shall satisfy the consultation requirement in paragraph (1).

    `(C) The Secretary of Defense shall prescribe regulations to carry out this subsection. The regulations shall include provisions for the selection or designation of appropriate representatives of employees referred to in subparagraph (B) for purposes of the consultation required by paragraph (1).'.

    (c) Technical Amendments- Section 2461 of such title, as amended by this section, is further amended--

      (1) in subsection (a)(1)--

        (A) in subparagraph (B), by inserting after `2003' the following: `, or any successor circular'; and

        (B) in subparagraph (D), by striking `and reliability' and inserting `, reliability, and timeliness'; and

      (2) in subsection (c)(2), as redesignated by subsection (b)(2), by inserting `of' after `examination'.

    (d) Clerical Amendment- The table of sections at the beginning of chapter 146 of such title is amended by striking the item relating to section 2467.

SEC. 323. PUBLIC-PRIVATE COMPETITION AT END OF PERIOD SPECIFIED IN PERFORMANCE AGREEMENT NOT REQUIRED.

    Section 2461(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    `(4) A military department or Defense Agency may not be required to conduct a public-private competition under Office of Management and Budget Circular A-76 or any other provision of law at the end of the performance period specified in a letter of obligation or other agreement entered into with Department of Defense civilian employees pursuant to a public-private competition for any function of the Department of Defense performed by Department of Defense civilian employees.'.

SEC. 324. GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT FUNCTIONS.

    (a) Codification and Revision of Requirement for Guidelines-

      (1) IN GENERAL- Chapter 146 of title 10, United States Code, is amended by inserting after section 2462 the following new section:

`Sec. 2463. Guidelines and procedures for use of civilian employees to perform Department of Defense functions

    `(a) Guidelines Required- (1) The Under Secretary of Defense for Personnel and Readiness shall devise and implement guidelines and procedures to ensure that consideration is given to using, on a regular basis, Department of Defense civilian employees to perform new functions and functions that are performed by contractors and could be performed by Department of Defense civilian employees. The Secretary of a military department may prescribe supplemental regulations, if the Secretary determines such regulations are necessary for implementing such guidelines within that military department.

    `(2) The guidelines and procedures required under paragraph (1) may not include any specific limitation or restriction on the number of functions or activities that may be converted to performance by Department of Defense civilian employees.

    `(b) Special Consideration for Certain Functions- The guidelines and procedures required under subsection (a) shall provide for special consideration to be given to using Department of Defense civilian employees to perform any function that--

      `(1) is performed by a contractor and--

        `(A) has been performed by Department of Defense civilian employees at any time during the previous 10 years;

        `(B) is a function closely associated with the performance of an inherently governmental function;

        `(C) has been performed pursuant to a contract awarded on a non-competitive basis; or

        `(D) has been performed poorly, as determined by a contracting officer during the 5-year period preceding the date of such determination, because of excessive costs or inferior quality; or

      `(2) is a new requirement, with particular emphasis given to a new requirement that is similar to a function previously performed by Department of Defense civilian employees or is a function closely associated with the performance of an inherently governmental function.

    `(c) Exclusion of Certain Functions From Competitions- The Secretary of Defense may not conduct a public-private competition under this chapter, Office of Management and Budget Circular A-76, or any other provision of law or regulation before--

      `(1) in the case of a new Department of Defense function, assigning the performance of the function to Department of Defense civilian employees;

      `(2) in the case of any Department of Defense function described in subsection (b), converting the function to performance by Department of Defense civilian employees; or

      `(3) in the case of a Department of Defense function performed by Department of Defense civilian employees, expanding the scope of the function.

    `(d) Use of Flexible Hiring Authority- (1) The Secretary of Defense may use the flexible hiring authority available to the Secretary under the National Security Personnel System, as established pursuant to section 9902 of title 5, to facilitate the performance by Department of Defense civilian employees of functions described in subsection (b).

    `(2) The Secretary shall make use of the inventory required by section 2330a(c) of this title for the purpose of identifying functions that should be considered for performance by Department of Defense civilian employees pursuant to subsection (b).

    `(e) Definitions- In this section the term `functions closely associated with inherently governmental functions' has the meaning given that term in section 2383(b)(3) of this title.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2462 the following new item:

      `2463. Guidelines and procedures for use of civilian employees to perform Department of Defense functions.'.

      (3) DEADLINE FOR ISSUANCE OF GUIDELINES AND PROCEDURES- The Secretary of Defense shall implement the guidelines and procedures required under section 2463 of title 10, United States Code, as added by paragraph (1), by not later than 60 days after the date of the enactment of this Act.

    (b) Inspector General Report- Not later than 180 days after the date of the enactment of this Act, the Inspector General of the Department of Defense shall submit to the congressional defense committees a report on the implementation of this section and the amendments made by this section.

    (c) Conforming Repeal- The National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) is amended by striking section 343.

SEC. 325. RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET INFLUENCE OVER DEPARTMENT OF DEFENSE PUBLIC-PRIVATE COMPETITIONS.

    (a) Restriction on Office of Management and Budget- The Office of Management and Budget may not direct or require the Secretary of Defense or the Secretary of a military department to prepare for, undertake, continue, or complete a public-private competition or direct conversion of a Department of Defense function to performance by a contractor under Office of Management and Budget Circular A-76, or any other successor regulation, directive, or policy.

    (b) Restriction on Secretary of Defense- The Secretary of Defense or the Secretary of a military department may not prepare for, undertake, continue, or complete a public-private competition or direct conversion of a Department of Defense function to performance by a contractor under Office of Management and Budget Circular A-76, or any other successor regulation, directive, or policy by reason of any direction or requirement provided by the Office of Management and Budget.

    (c) Inspector General Review-

      (1) COMPREHENSIVE REVIEW REQUIRED- The Inspector General of the Department of Defense shall conduct a comprehensive review of the compliance of the Secretary of Defense and the Secretaries of the military departments with the requirements of this section during calendar year 2008. The Inspector General shall submit to the congressional defense committees the following reports on the comprehensive review:

        (A) An interim report, to be submitted by not later than 90 days after the date of the enactment of this Act.

        (B) A final report, to be submitted by not later than December 31, 2008.

      (2) INSPECTOR GENERAL ACCESS- For the purpose of determining compliance with the requirements of this section, the Secretary of Defense shall ensure that the Inspector General has access to all Department records of relevant communications between Department officials and officials of other departments and agencies of the Federal Government, whether such communications occurred inside or outside of the Department.

SEC. 326. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76.

    (a) Eligibility to Protest Public-Private Competitions- Section 3551(2) of title 31, United States Code, is amended to read as follows:

      `(2) The term `interested party'--

        `(A) with respect to a contract or a solicitation or other request for offers described in paragraph (1), means an actual or prospective bidder or offeror whose direct economic interest would be affected by the award of the contract or by failure to award the contract; and

        `(B) with respect to a public-private competition conducted under Office of Management and Budget Circular A-76 with respect to the performance of an activity or function of a Federal agency, or a decision to convert a function performed by Federal employees to private sector performance without a competition under Office of Management and Budget Circular A-76, includes--

          `(i) any official who submitted the agency tender in such competition; and

          `(ii) any one individual who, for the purpose of representing the Federal employees engaged in the performance of the activity or function for which the public-private competition is conducted in a protest under this subchapter that relates to such public-private competition, has been designated as the agent of the Federal employees by a majority of such employees.'.

    (b) Expedited Action-

      (1) IN GENERAL- Subchapter V of chapter 35 of such title is amended by adding at the end the following new section:

`Sec. 3557. Expedited action in protests of Public-Private competitions

    `For any protest of a public-private competition conducted under Office of Management and Budget Circular A-76 with respect to the performance of an activity or function of a Federal agency, the Comptroller General shall administer the provisions of this subchapter in the manner best suited for expediting the final resolution of the protest and the final action in the public-private competition.'.

      (2) CLERICAL AMENDMENT- The chapter analysis at the beginning of such chapter is amended by inserting after the item relating to section 3556 the following new item:

      `3557. Expedited action in protests of public-private competitions.'.

    (c) Right to Intervene in Civil Action- Section 1491(b) of title 28, United States Code, is amended by adding at the end the following new paragraph:

    `(5) If an interested party who is a member of the private sector commences an action described in paragraph (1) with respect to a public-private competition conducted under Office of Management and Budget Circular A-76 regarding the performance of an activity or function of a Federal agency, or a decision to convert a function performed by Federal employees to private sector performance without a competition under Office of Management and Budget Circular A-76, then an interested party described in section 3551(2)(B) of title 31 shall be entitled to intervene in that action.'.

    (d) Applicability- Subparagraph (B) of section 3551(2) of title 31, United States Code (as added by subsection (a)), and paragraph (5) of section 1491(b) of title 28, United States Code (as added by subsection (c)), shall apply to--

      (1) a protest or civil action that challenges final selection of the source of performance of an activity or function of a Federal agency that is made pursuant to a study initiated under Office of Management and Budget Circular A-76 on or after January 1, 2004; and

      (2) any other protest or civil action that relates to a public-private competition initiated under Office of Management and Budget Circular A-76, or to a decision to convert a function performed by Federal employees to private sector performance without a competition under Office of Management and Budget Circular A-76, on or after the date of the enactment of this Act.

SEC. 327. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO CONTRACTOR PERFORMANCE.

    (a) In General- The Office of Federal Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by adding at the end the following new section:

`SEC. 43. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO CONTRACTOR PERFORMANCE.

    `(a) Public-Private Competition- (1) A function of an executive agency performed by 10 or more agency civilian employees may not be converted, in whole or in part, to performance by a contractor unless the conversion is based on the results of a public-private competition that--

      `(A) formally compares the cost of performance of the function by agency civilian employees with the cost of performance by a contractor;

      `(B) creates an agency tender, including a most efficient organization plan, in accordance with Office of Management and Budget Circular A-76, as implemented on May 29, 2003, or any successor circular;

      `(C) includes the issuance of a solicitation;

      `(D) determines whether the submitted offers meet the needs of the executive agency with respect to factors other than cost, including quality, reliability, and timeliness;

      `(E) examines the cost of performance of the function by agency civilian employees and the cost of performance of the function by one or more contractors to demonstrate whether converting to performance by a contractor will result in savings to the Government over the life of the contract, including--

        `(i) the estimated cost to the Government (based on offers received) for performance of the function by a contractor;

        `(ii) the estimated cost to the Government for performance of the function by agency civilian employees; and

        `(iii) an estimate of all other costs and expenditures that the Government would incur because of the award of such a contract;

      `(F) requires continued performance of the function by agency civilian employees unless the difference in the cost of performance of the function by a contractor compared to the cost of performance of the function by agency civilian employees would, over all performance periods required by the solicitation, be equal to or exceed the lesser of--

        `(i) 10 percent of the personnel-related costs for performance of that function in the agency tender; or

        `(ii) $10,000,000; and

      `(G) examines the effect of performance of the function by a contractor on the agency mission associated with the performance of the function.

    `(2) A function that is performed by the executive agency and is reengineered, reorganized, modernized, upgraded, expanded, or changed to become more efficient, but still essentially provides the same service, shall not be considered a new requirement.

    `(3) In no case may a function being performed by executive agency personnel be--

      `(A) modified, reorganized, divided, or in any way changed for the purpose of exempting the conversion of the function from the requirements of this section; or

      `(B) converted to performance by a contractor to circumvent a civilian personnel ceiling.

    `(b) Requirement to Consult Employees- (1) Each civilian employee of an executive agency responsible for determining under Office of Management and Budget Circular A-76 whether to convert to contractor performance any function of the executive agency--

      `(A) shall, at least monthly during the development and preparation of the performance work statement and the management efficiency study used in making that determination, consult with civilian employees who will be affected by that determination and consider the views of such employees on the development and preparation of that statement and that study; and

      `(B) may consult with such employees on other matters relating to that determination.

    `(2)(A) In the case of employees represented by a labor organization accorded exclusive recognition under section 7111 of title 5, United States Code, consultation with representatives of that labor organization shall satisfy the consultation requirement in paragraph (1).

    `(B) In the case of employees other than employees referred to in subparagraph (A), consultation with appropriate representatives of those employees shall satisfy the consultation requirement in paragraph (1).

    `(C) The head of each executive agency shall prescribe regulations to carry out this subsection. The regulations shall include provisions for the selection or designation of appropriate representatives of employees referred to in paragraph (2)(B) for purposes of consultation required by paragraph (1).

    `(c) Congressional Notification- (1) Before commencing a public-private competition under subsection (a), the head of an executive agency shall submit to Congress a report containing the following:

      `(A) The function for which such public-private competition is to be conducted.

      `(B) The location at which the function is performed by agency civilian employees.

      `(C) The number of agency civilian employee positions potentially affected.

      `(D) The anticipated length and cost of the public-private competition, and a specific identification of the budgetary line item from which funds will be used to cover the cost of the public-private competition.

      `(E) A certification that a proposed performance of the function by a contractor is not a result of a decision by an official of an executive agency to impose predetermined constraints or limitations on such employees in terms of man years, end strengths, full-time equivalent positions, or maximum number of employees.

    `(2) The report required under paragraph (1) shall include an examination of the potential economic effect of performance of the function by a contractor on--

      `(A) agency civilian employees who would be affected by such a conversion in performance; and

      `(B) the local community and the Government, if more than 50 agency civilian employees perform the function.

    `(3)(A) A representative individual or entity at a facility where a public-private competition is conducted may submit to the head of the executive agency an objection to the public-private competition on the grounds that the report required by paragraph (1) has not been submitted or that the certification required by paragraph (1)(E) is not included in the report submitted as a condition for the public-private competition. The objection shall be in writing and shall be submitted within 90 days after the following date:

      `(i) In the case of a failure to submit the report when required, the date on which the representative individual or an official of the representative entity authorized to pose the objection first knew or should have known of that failure.

      `(ii) In the case of a failure to include the certification in a submitted report, the date on which the report was submitted to Congress.

    `(B) If the head of the executive agency determines that the report required by paragraph (1) was not submitted or that the required certification was not included in the submitted report, the function for which the public-private competition was conducted for which the objection was submitted may not be the subject of a solicitation of offers for, or award of, a contract until, respectively, the report is submitted or a report containing the certification in full compliance with the certification requirement is submitted.

    `(d) Exemption for the Purchase of Products and Services of the Blind and Other Severely Handicapped Persons- This section shall not apply to a commercial or industrial type function of an executive agency that--

      `(1) is included on the procurement list established pursuant to section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 47); or

      `(2) is planned to be changed to performance by a qualified nonprofit agency for the blind or by a qualified nonprofit agency for other severely handicapped persons in accordance with that Act.

    `(e) Inapplicability During War or Emergency- The provisions of this section shall not apply during war or during a period of national emergency declared by the President or Congress.'.

    (b) Clerical Amendment- The table of sections in section 1(b) of such Act is amended by adding at the end the following new item:

      `Sec. 43. Public-private competition required before conversion to contractor performance.'.

SEC. 328. EXTENSION OF AUTHORITY FOR ARMY INDUSTRIAL FACILITIES TO ENGAGE IN COOPERATIVE ACTIVITIES WITH NON-ARMY ENTITIES.

    (a) Extension of Authority- Section 4544 of title 10, United States Code, is amended--

      (1) in subsection (a), by adding at the end the following: `This authority may be used to enter into not more than eight contracts or cooperative agreements.'; and

      (2) in subsection (k), by striking `2009' and inserting `2014'.

    (b) Reports-

      (1) ANNUAL REPORT ON USE OF AUTHORITY- The Secretary of the Army shall submit to Congress at the same time the budget of the President is submitted to Congress for fiscal years 2009 through 2016 under section 1105 of title 31, United States Code, a report on the use of the authority provided under section 4544 of title 10, United States Code.

      (2) ANALYSIS OF USE OF AUTHORITY- Not later than September 30, 2012, the Secretary of the Army shall submit to the congressional defense committees a report assessing the advisability of making such authority permanent and eliminating the limitation on the number of contracts or cooperative arrangements that may be entered into pursuant to such authority.

SEC. 329. REAUTHORIZATION AND MODIFICATION OF MULTI-TRADES DEMONSTRATION PROJECT.

    (a) Reauthorization and Expansion- Section 338 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 5013 note) is amended--

      (1) by striking subsection (a) and inserting the following new subsection (a):

    `(a) Demonstration Project Authorized- In accordance with section 4703 of title 5, United States Code, the Secretary of a military department may carry out a demonstration project under which workers who are certified at the journey level as able to perform multiple trades may be promoted by one grade level. A demonstration project under this subsection may be carried out as follows:

      `(1) In the case of the Secretary of the Army, at one Army depot.

      `(2) In the case of the Secretary of the Navy, at one Navy Fleet Readiness Center.

      `(3) In the case of the Secretary of the Air Force, at one Air Force Logistics Center.';

      (2) in subsection (b)--

        (A) by striking `a Naval Aviation Depot' and inserting `an Air Force Air Logistics Center, Navy Fleet Readiness Center, or Army depot'; and

        (B) by striking `Secretary' and inserting `Secretary of the military department concerned';

      (3) by striking subsection (d) and redesignating subsections (e) through (g) as subsections (d) through (f), respectively;

      (4) in subsection (d), as so redesignated, by striking `2004 through 2006' and inserting `2008 through 2013';

      (5) in subsection (e), as so redesignated--

        (A) by striking `2007' and inserting `2014';

        (B) by inserting after `Secretary' the following `of each military department that carried out a demonstration project under this section'; and

        (C) by adding at the end the following new sentence: `Each such report shall include the Secretary's recommendation on whether permanent multi-trade authority should be authorized.'; and

      (6) in subsection (f), as so redesignated--

        (A) in the first sentence, by striking `The Secretary' and inserting `Each Secretary who submits a report under subsection (e)'; and

        (B) in the second sentence--

          (i) by striking `receiving the report' and inserting `receiving a report'; and

          (ii) by striking `evaluation of the report' and inserting `evaluation of that report'.

    (b) Clerical Amendment- The heading for such section is amended to read as follows:

`SEC. 338. MULTI-TRADES DEMONSTRATION PROJECT.'.

SEC. 330. PILOT PROGRAM FOR AVAILABILITY OF WORKING-CAPITAL FUNDS TO ARMY FOR CERTAIN PRODUCT IMPROVEMENTS.

    (a) In General- Notwithstanding section 2208 of title 10, United States Code, the Secretary of the Army may use a working-capital fund established pursuant to that section for expenses directly related to conducting a pilot program for a product improvement described in subsection (b).

    (b) Product Improvement- A product improvement covered by the pilot program is the procurement and installation of a component or subsystem of a weapon system platform or major end item that would improve the reliability and maintainability, extend the useful life, enhance safety, lower maintenance costs, or provide performance enhancement of the weapon system platform or major end item.

    (c) Limitation on Certain Projects- Funds may not be used under subsection (a) for--

      (1) any product improvement that significantly changes the performance envelope of an end item; or

      (2) any component with an estimated total cost in excess of $1,000,000.

    (d) Limitation in Fiscal Year Pending Timely Report- If during any fiscal year the report required by paragraph (1) of subsection (e) is not submitted by the date specified in paragraph (3) of that subsection, funds may not be used under subsection (a) in such fiscal year during the period--

      (1) beginning on the date specified in paragraph (3) of subsection (e); and

      (2) ending on the date of the submittal of the report under paragraph (1) of subsection (e).

    (e) Annual Report-

      (1) IN GENERAL- Each fiscal year, the Assistant Secretary of the Army for Acquisition, Logistics, and Technology, in consultation with the Assistant Secretary of the Army for Financial Management and Comptroller, shall submit to the congressional defense committees a report on the use of the authority in subsection (a) during the preceding fiscal year.

      (2) RECOMMENDATION- In the case of the report required to be submitted under paragraph (1) during fiscal year 2012, the report shall include the recommendation of the Assistant Secretary of the Army for Acquisition, Logistics, and Technology regarding whether the authority under subsection (a) should be made permanent.

      (3) DEADLINE FOR SUBMITTAL- The report required by paragraph (1) in a fiscal year shall be submitted not later than 60 days after the date of the submittal to Congress of the budget of the President for the succeeding fiscal year pursuant to section 1105 of title 31, United States Code.

    (f) Sunset- The authority under subsection (a) shall expire on October 1, 2013.

Subtitle D--Extension of Program Authorities

SEC. 341. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    Section 343 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (10 U.S.C. 4551 note) is amended--

      (1) in subsection (a), by striking `2008' and inserting `2010'; and

      (2) in subsection (g)(1), by striking `2008' and inserting `2010'.

SEC. 342. EXTENSION OF PERIOD FOR REIMBURSEMENT FOR HELMET PADS PURCHASED BY MEMBERS OF THE ARMED FORCES DEPLOYED IN CONTINGENCY OPERATIONS.

    (a) Extension- Section 351 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1857) is amended--

      (1) in subsection (a)(3), by inserting before the period at the end the following: `, or in the case of protective helmet pads purchased by a member from a qualified vendor for that member's personal use, ending on September 30, 2007';

      (2) in subsection (c)--

        (A) by inserting after `Armed Forces' the following: `shall comply with regular Department of Defense procedures for the submission of claims and'; and

        (B) by inserting before the period at the end the following: `or one year after the date on which the purchase of the protective, safety, or health equipment was made, whichever occurs last'; and

      (3) in subsection (d), by adding at the end the following new sentence: `Subsection (a)(1) shall not apply in the case of the purchase of protective helmet pads on behalf of a member.'.

    (b) Funding- Amounts for reimbursements made under section 351 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 after the date of the enactment of this Act shall be derived from supplemental appropriations for the Department of Defense for fiscal year 2008, contingent upon such appropriations being enacted.

SEC. 343. EXTENSION OF TEMPORARY AUTHORITY FOR CONTRACT PERFORMANCE OF SECURITY GUARD FUNCTIONS.

    (a) Extension- Subsection (c) of section 332 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314) is amended by striking `September 30, 2009' both places it appears and inserting `September 30, 2012'.

    (b) Limitation for Fiscal Years 2010 Through 2012- Subsection (d) of such section is amended--

      (1) in paragraph (2), by striking `and' at the end;

      (2) in paragraph (3), by striking the period and inserting a semicolon; and

      (3) by adding at the end the following new paragraphs:

      `(4) for fiscal year 2010, the number equal to 70 percent of the total number of such personnel employed under such contracts on October 1, 2006;

      `(5) for fiscal year 2011, the number equal to 60 percent of the total number of such personnel employed under such contracts on October 1, 2006; and

      `(6) for fiscal year 2012, the number equal to 50 percent of the total number of such personnel employed under such contracts on October 1, 2006.'.

Subtitle E--Reports

SEC. 351. REPORTS ON NATIONAL GUARD READINESS FOR EMERGENCIES AND MAJOR DISASTERS.

    (a) Annual Reports on Equipment- Section 10541(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(9) An assessment of the extent to which the National Guard possesses the equipment required to perform the responsibilities of the National Guard pursuant to sections 331, 332, 333, 12304(b), and 12406 of this title in response to an emergency or major disaster (as such terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)). Such assessment shall--

        `(A) identify any shortfall in equipment provided to the National Guard by the Department of Defense throughout the United States and the territories and possessions of the United States that is likely to affect the ability of the National Guard to perform such responsibilities;

        `(B) evaluate the effect of any such shortfall on the capacity of the National Guard to perform such responsibilities in response to an emergency or major disaster that occurs in the United States or a territory or possession of the United States; and

        `(C) identify the requirements and investment strategies for equipment provided to the National Guard by the Department of Defense that are necessary to plan for a reduction or elimination of any such shortfall.'.

    (b) Inclusion of Assessment of National Guard Readiness in Quarterly Personnel and Unit Readiness Report- Section 482 of such title is amended--

      (1) in subsection (a), by striking `and (e)' and inserting `(e), and (f)';

      (2) by redesignating subsection (f) as subsection (g); and

      (3) by inserting after subsection (e) the following new subsection (f):

    `(f) Readiness of National Guard to Perform Civil Support Missions- (1) Each report shall also include an assessment of the readiness of the National Guard to perform tasks required to support the National Response Plan for support to civil authorities.

    `(2) Any information in an assessment under this subsection that is relevant to the National Guard of a particular State shall also be made available to the Governor of that State.

    `(3) The Secretary shall ensure that each State Governor has an opportunity to provide to the Secretary an independent evaluation of that State's National Guard, which the Secretary shall include with each assessment submitted under this subsection.'.

    (c) Effective Date-

      (1) ANNUAL REPORT ON NATIONAL GUARD AND RESERVE COMPONENT EQUIPMENT- The amendment made by subsection (a) shall apply with respect to reports submitted after the date of the enactment of this Act.

      (2) QUARTERLY REPORTS ON PERSONNEL AND UNIT READINESS- The amendment made by subsection (b) shall apply with respect to the quarterly report required under section 482 of title 10, United States Code, for the second quarter of fiscal year 2009 and each subsequent report required under that section.

    (d) Report on Implementation-

      (1) IN GENERAL- As part of the budget justification materials submitted to Congress in support of the budget of the President for each of fiscal years 2009 and 2010 (as submitted under section 1105 of title 31, United States Code), the Secretary of Defense shall submit to the congressional defense committees a report on actions taken by the Secretary to implement the amendments made by this section.

      (2) ELEMENTS- Each report required under paragraph (1) shall include a description of the mechanisms to be utilized by the Secretary for assessing the personnel, equipment, and training readiness of the National Guard, including the standards and measures that will be applied and mechanisms for sharing information on such matters with the Governors of the States.

SEC. 352. ANNUAL REPORT ON PREPOSITIONED MATERIEL AND EQUIPMENT.

    (a) Annual Report Required- Chapter 131 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2229a. Annual report on prepositioned materiel and equipment

    `(a) Annual Report Required- Not later than the date of the submission of the President's budget request for a fiscal year under section 1105 of title 31, the Secretary of Defense shall submit to the congressional defense committees a report on the status of the materiel in the prepositioned stocks as of the end of the fiscal year preceding the fiscal year during which the report is submitted. Each report shall be unclassified and may contain a classified annex. Each report shall include the following information:

      `(1) The level of fill for major end items of equipment and spare parts in each prepositioned set as of the end of the fiscal year covered by the report.

      `(2) The material condition of equipment in the prepositioned stocks as of the end of such fiscal year, grouped by category or major end item.

      `(3) A list of major end items of equipment drawn from the prepositioned stocks during such fiscal year and a description of how that equipment was used and whether it was returned to the stocks after being used.

      `(4) A timeline for completely reconstituting any shortfall in the prepositioned stocks.

      `(5) An estimate of the amount of funds required to completely reconstitute any shortfall in the prepositioned stocks and a description of the Secretary's plan for carrying out such complete reconstitution.

      `(6) A list of any operations plan affected by any shortfall in the prepositioned stocks and a description of any action taken to mitigate any risk that such a shortfall may create.

    `(b) Comptroller General Review- (1) By not later than 120 days after the date on which a report is submitted under subsection (a), the Comptroller General shall review the report and, as the Comptroller General determines appropriate, submit to the congressional defense committees any additional information that the Comptroller General determines will further inform such committees on issues relating to the status of the materiel in the prepositioned stocks.

    `(2) The Secretary of Defense shall ensure the full cooperation of the Department of Defense with the Comptroller General for purposes of the conduct of the review required by this subsection, both before and after each report is submitted under subsection (a). The Secretary shall conduct periodic briefings for the Comptroller General on the information covered by each report required under subsection (a) and provide to the Comptroller General access to the data and preliminary results to be used by the Secretary in preparing each such report before the Secretary submits the report to enable the Comptroller General to conduct each review required under paragraph (1) in a timely manner.

    `(3) The requirement to conduct a review under this subsection shall terminate on September 30, 2015.'.

    (b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `2229a. Annual report on prepositioned materiel and equipment.'.

SEC. 353. REPORT ON INCREMENTAL COST OF EARLY 2007 ENHANCED DEPLOYMENT.

    Section 323(b)(2) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2146; 10 U.S.C. 229 note) is amended--

      (1) in subparagraph (A), by striking `; and' and inserting a semicolon;

      (2) in subparagraph (B), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new subparagraph:

        `(C) each of the military departments for the incremental changes in reset costs resulting from the deployment and redeployment of forces to Iraq and Afghanistan above the levels deployed to such countries on January 1, 2007.'.

SEC. 354. MODIFICATION OF REQUIREMENTS OF COMPTROLLER GENERAL REPORT ON THE READINESS OF ARMY AND MARINE CORPS GROUND FORCES.

    (a) Submittal Date- Subsection (a)(1) of section 345 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2156) is amended by striking `June 1, 2007' and inserting `June 1, 2008'.

    (b) Elements- Subsection (b) of such section is amended--

      (1) by striking paragraph (2);

      (2) by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively; and

      (3) by inserting after paragraph (1) the following new paragraphs:

      `(2) An assessment of the ability of the Army and Marine Corps to provide trained and ready forces to meet the requirements of increased force levels in support of Operation Iraqi Freedom and Operation Enduring Freedom above such force levels in effect on January 1, 2007, and to meet the requirements of other ongoing operations simultaneously with such increased force levels.

      `(3) An assessment of the strategic depth of the Army and Marine Corps and their ability to provide trained and ready forces to meet the requirements of the high-priority contingency war plans of the regional combatant commands, including an identification and evaluation for each such plan of--

        `(A) the strategic and operational risks associated with current and projected forces of current and projected readiness;

        `(B) the time required to make forces available and prepare them for deployment; and

        `(C) likely strategic tradeoffs necessary to meet the requirements of each such plan.'.

    (c) Department of Defense Cooperation- Such section is further amended--

      (1) by redesignating subsection (c) as subsection (d); and

      (2) by inserting after subsection (b) the following new subsection (c):

    `(c) Department of Defense Cooperation- The Secretary of Defense shall ensure the full cooperation of the Department of Defense with the Comptroller General for purposes of the preparation of the report required by this section.'.

SEC. 355. PLAN TO IMPROVE READINESS OF GROUND FORCES OF ACTIVE AND RESERVE COMPONENTS.

    (a) Report Required- At the same time that the budget is submitted under section 1105(a) of title 31, United States Code, for a fiscal year, the Secretary of Defense shall submit to the congressional defense committees a report on improving the readiness of the ground forces of active and reserve components of the Armed Forces. Each such report shall include--

      (1) a summary of the readiness of each reporting unit of the ground forces of the active and reserve components and a summary of the readiness of each major combat unit of each Armed Force by readiness level;

      (2) an identification of the extent to which the actual readiness ratings of the active and reserve components of the Armed Forces have been upgraded based on the judgment of commanders and any efforts of the Secretary of Defense to analyze the trends and implications of such upgrades;

      (3) the goals of the Secretary of Defense for managing the readiness of the ground forces of the active and reserve components, expressed in terms of the number of units or percentage of the force that the Secretary plans to maintain at each level of readiness, and the Secretary's projected timeframe for achieving each such goal;

      (4) a prioritized list of items and actions to be accomplished during the fiscal year during which the report is submitted, and during the fiscal years covered by the future-years defense program, that the Secretary of Defense believes are necessary to significantly improve the readiness of the ground forces of the active and reserve components and achieve the goals and timeframes described in paragraph (3); and

      (5) a detailed investment strategy and plan for each fiscal year covered by the future-years defense program under section 221 of title 10, United States Code, that is submitted during the fiscal year in which the report is submitted, that outlines the resources required to improve the readiness of the ground forces of the active and reserve components, including a description of how each resource identified in such plan relates to funding requested by the Secretary in the Secretary's annual budget, and how each such resource will specifically enable the Secretary to achieve the readiness goals described in paragraph (3) within the projected timeframes.

    (b) Comptroller General Review- By not later than 60 days after the date on which a report is submitted under subsection (a), the Comptroller General shall review the report and, as the Comptroller General determines appropriate, submit to the congressional defense committees any additional information that the Comptroller General determines will further inform the congressional defense committees on issues relating to the readiness of the ground forces of the active and reserve components of the Armed Forces.

    (c) Termination- The requirement to submit a report under subsection (a) shall terminate on the date the Secretary of Defense submits the fifth report required under that subsection.

SEC. 356. INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY.

    (a) Independent Assessment Required- The Secretary of Defense shall provide for an independent assessment of the viability of the Civil Reserve Air Fleet to be conducted by a federally-funded research and development center selected by the Secretary.

    (b) Contents of Assessment- The assessment required by subsection (a) shall include each of the following:

      (1) An assessment of the Civil Reserve Air Fleet as of the date of the enactment of this Act, including an assessment of--

        (A) the level of increased use of commercial assets to fulfill Department of Defense transportation requirements as a result of the increased global mobility requirements in response to the terrorist attacks of September 11, 2001;

        (B) the extent of charter air carrier participation in fulfilling increased Department of Defense transportation requirements as a result of the increased global mobility requirements in response to the terrorist attacks of September 11, 2001;

        (C) any policy of the Secretary of Defense to limit the percentage of income a single air carrier participating in the Civil Reserve Air Fleet may earn under contracts with the Secretary during any calendar year and the effects of such policy on the air carrier industry in peacetime and during periods during which the Armed Forces are deployed in support of a contingency operation for which the Civil Reserve Air Fleet is not activated; and

        (D) any risks to the charter air carrier industry as a result of the expansion of the industry in response to contingency operations resulting in increased demand by the Department of Defense.

      (2) A strategic assessment of the viability of the Civil Reserve Air Fleet that compares such viability as of the date of the enactment of this Act with the projected viability of the Civil Reserve Air Fleet 5, 10, and 15 years after the date of the enactment of this Act, including for activations at each of stages 1, 2, and 3--

        (A) an examination of the requirements of the Department of Defense for the Civil Reserve Air Fleet for the support of operational and contingency plans, including any anticipated changes in the Department's organic airlift capacity, logistics concepts, and personnel and training requirements;

        (B) an assessment of air carrier participation in the Civil Reserve Air Fleet; and

        (C) a comparison between the requirements of the Department described in subparagraph (A) and air carrier participation described in subparagraph (B).

      (3) An examination of any perceived barriers to Civil Reserve Air Fleet viability, including--

        (A) the operational planning system of the Civil Reserve Air Fleet;

        (B) the reward system of the Civil Reserve Air Fleet;

        (C) the long-term affordability of the Aviation War Risk Insurance Program;

        (D) the effect on United States air carriers operating overseas routes during periods of Civil Reserve Air Fleet activation;

        (E) increased foreign ownership of United States air carriers;

        (F) increased operational costs during activation as a result of hazardous duty pay, routing delays, and inefficiencies in cargo handling by the Department of Defense;

        (G) the effect of policy initiatives by the Secretary of Transportation to encourage international code sharing and alliances; and

        (H) the effect of limitations imposed by the Secretary of Defense to limit commercial shipping options for certain routes and package sizes.

      (4) Recommendations for improving the Civil Reserve Air Fleet program, including an assessment of potential incentives for increasing participation in the Civil Reserve Air Fleet program, including establishing a minimum annual purchase amount during peacetime.

    (c) Submission to Congress- Upon the completion of the assessment required under subsection (a) and by not later than April 1, 2008, the Secretary shall submit to the congressional defense committees a report on the assessment.

    (d) Comptroller General Report- Not later than 90 days after the report is submitted under subsection (c), the Comptroller General shall conduct a review of the assessment required under subsection (a).

SEC. 357. DEPARTMENT OF DEFENSE INSPECTOR GENERAL REPORT ON PHYSICAL SECURITY OF DEPARTMENT OF DEFENSE INSTALLATIONS.

    (a) Report- Not later than one year after the date of the enactment of this Act, the Inspector General of the Department of Defense shall submit to Congress a report on the physical security of Department of Defense installations and resources.

    (b) Elements- The report required by subsection (a) shall include the following:

      (1) An analysis of the progress in implementing requirements under the Physical Security Program as set forth in the Department of Defense Instruction 5200.08-R, Chapter 2 (C.2) and Chapter 3, Section 3: Installation Access (C3.3), which mandates the policies and minimum standards for the physical security of Department of Defense installations and resources.

      (2) Recommendations based on the findings of the Comptroller General of the United States in the report required by section 344 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-366; 120 Stat. 2155).

      (3) Recommendations based on the lessons learned from the thwarted plot to attack Fort Dix, New Jersey, in 2007.

SEC. 358. REVIEW OF HIGH-ALTITUDE AVIATION TRAINING.

    (a) Review Required- The Secretary of the Defense shall conduct a review of the training requirements of the Department of Defense for helicopter operations in high-altitude or power-limited conditions.

    (b) Content- The review required under subsection (a) shall include an examination of--

      (1) power-management and high-altitude training requirements by military department, helicopter, and crew position;

      (2) training methods and locations currently used by each of the military departments to fulfill those training requirements;

      (3) department or service regulations that prohibit or inhibit joint-service or inter-service high-altitude aviation training;

      (4) costs for each of the previous 5 years associated with transporting aircraft to and from the High-Altitude Aviation Training Site, Gypsum, Colorado, for training purposes;

      (5) potential risk avoidance and reductions in accident rates due to power management if training of the type offered at the High-Altitude Aviation Training Site was required training, rather than optional training; and

      (6) potential cost savings and operational benefits, if any, of permanently stationing no less than 4 UH-60, 2 CH-47, and 2 LUH-72 aircraft at the High-Altitude Aviation Training Site, Gypsum, Colorado.

    (c) Report- Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report on the conduct and findings of the review required under subsection (a) along with a summary of changes to policy, regulation, or asset allocation necessary to ensure that Department of Defense helicopter aircrews are adequately trained in high-altitude or power-limited flying conditions prior to being exposed to such conditions operationally.

SEC. 359. REPORTS ON SAFETY MEASURES AND ENCROACHMENT ISSUES AND MASTER PLAN FOR WARREN GROVE GUNNERY RANGE, NEW JERSEY.

    (a) Annual Report on Safety Measures- Not later than March 1, 2008, and annually thereafter for 2 additional years, the Secretary of the Air Force shall submit to the congressional defense committees a report on efforts made by all of the military departments utilizing the Warren Grove Gunnery Range, New Jersey, to provide the highest level of safety.

    (b) Master Plan for Warren Grove Gunnery Range-

      (1) IN GENERAL- Not later than 180 days after the date of the enactment of this Act, the Secretary of the Air Force shall submit to the congressional defense committees a master plan for Warren Grove Gunnery Range.

      (2) CONTENT- The master plan required under paragraph (1) shall include measures to mitigate encroachment of the Warren Grove Gunnery Range, taking into consideration military mission requirements, land use plans, the surrounding community, the economy of the region, and protection of the environment and public health, safety, and welfare.

      (3) INPUT- In establishing the master plan required under paragraph (1), the Secretary shall seek input from relevant stakeholders at the Federal, State, and local level.

SEC. 360. REPORT ON SEARCH AND RESCUE CAPABILITIES OF THE AIR FORCE IN THE NORTHWESTERN UNITED STATES.

    (a) Report- Not later than April 1, 2008, the Secretary of the Air Force shall submit to the appropriate congressional committees a report on the search and rescue capabilities of the Air Force in the northwestern United States.

    (b) Content- The report required under subsection (a) shall include the following:

      (1) An assessment of the search and rescue capabilities required to support Air Force operations and training.

      (2) A description of the compliance of the Air Force with the 1999 United States National Search and Rescue Plan (referred to hereinafter in this section as the `NSRP') for Washington, Oregon, Idaho, and Montana.

      (3) An inventory and description of the search and rescue assets of the Air Force that are available to meet the requirements of the NSRP.

      (4) A description of the use of such search and rescue assets during the 3-year period preceding the date when the report is submitted.

      (5) The plans of the Air Force to meet current and future search and rescue requirements in the northwestern United States, including plans that take into consideration requirements related to support for both Air Force operations and training and compliance with the NSRP.

      (6) An inventory of other search and rescue capabilities equivalent to such capabilities provided by the Air Force that may be provided by other Federal, State, or local agencies in the northwestern United States.

    (c) Use of Report for Purposes of Certification Regarding Search and Rescue Capabilities- Section 1085 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2065; 10 U.S.C. 113 note) is amended by striking `unless the Secretary first certifies' and inserting `unless the Secretary, after reviewing the search and rescue capabilities report prepared by the Secretary of the Air Force under subsection (a), first certifies'.

    (d) Appropriate Congressional Committees Defined- In this section, the term `appropriate congressional committees' means--

      (1) the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, the Committee on Commerce, Science, and Transportation, the Committee on Energy and Natural Resources, and the Committee on Appropriations of the Senate; and

      (2) the Committee on Armed Services, the Committee on Homeland Security, the Committee on Energy and Commerce, the Committee on Natural Resources, and the Committee on Appropriations of the House of Representatives.

SEC. 361. REPORT AND MASTER INFRASTRUCTURE RECAPITALIZATION PLAN FOR CHEYENNE MOUNTAIN AIR STATION, COLORADO.

    (a) Report on Relocation of North American Aerospace Defense Command Center-

      (1) IN GENERAL- Not later than March 1, 2008, the Secretary of Defense shall submit to Congress a report on the relocation of the North American Aerospace Defense Command center and related functions from Cheyenne Mountain Air Station, Colorado, to Peterson Air Force Base, Colorado.

      (2) CONTENT- The report required under paragraph (1) shall include--

        (A) an analysis comparing the total costs associated with the relocation, including costs determined as part of ongoing security-related studies of the relocation, to anticipated operational benefits from the relocation;

        (B) a detailed explanation of the backup functions that will remain located at Cheyenne Mountain Air Station, and how such functions planned to be transferred out of Cheyenne Mountain Air Station, including the Space Operations Center, will maintain operational connectivity with their related commands and relevant communications centers;

        (C) the final plans for the relocation of the North American Aerospace Defense Command center and related functions; and

        (D) the findings and recommendations of an independent security and vulnerability assessment of Peterson Air Force Base carried out by Sandia National Laboratory for the United States Air Force Space Command and the Secretary's plans for mitigating any security and vulnerability risks identified as part of that assessment and associated cost and schedule estimates.

    (b) Limitation on Availability of Funds Pending Receipt of Report- Of the funds appropriated pursuant to an authorization of appropriations or otherwise made available for fiscal year 2008 for operation and maintenance for the Air Force that are available for the Cheyenne Mountain Transformation project, $5,000,000 may not be obligated or expended until Congress receives the report required under subsection (a).

    (c) Comptroller General Review- Not later than 120 days after the date on which the Secretary of Defense submits the report required under subsection (a), the Comptroller General shall submit to Congress a review of the report and the final plans of the Secretary for the relocation of the North American Aerospace Defense Command center and related functions.

    (d) Master Infrastructure Recapitalization Plan-

      (1) IN GENERAL- Not later than March 16, 2008, the Secretary of the Air Force shall submit to Congress a master infrastructure recapitalization plan for Cheyenne Mountain Air Station.

      (2) CONTENT- The plan required under paragraph (1) shall include--

        (A) a description of the projects that are needed to improve the infrastructure required for supporting missions associated with Cheyenne Mountain Air Station; and

        (B) a funding plan explaining the expected timetable for the Air Force to support such projects.

Subtitle F--Other Matters

SEC. 371. ENHANCEMENT OF CORROSION CONTROL AND PREVENTION FUNCTIONS WITHIN DEPARTMENT OF DEFENSE.

    (a) Office of Corrosion Policy and Oversight-

      (1) IN GENERAL- Section 2228 of title 10, United States Code, is amended by striking the section heading and subsection (a) and inserting the following:

`Sec. 2228. Office of Corrosion Policy and Oversight

    `(a) Office and Director- (1) There is an Office of Corrosion Policy and Oversight within the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics.

    `(2) The Office shall be headed by a Director of Corrosion Policy and Oversight, who shall be assigned to such position by the Under Secretary from among civilian employees of the Department of Defense with the qualifications described in paragraph (3). The Director is responsible in the Department of Defense to the Secretary of Defense (after the Under Secretary of Defense for Acquisition, Technology, and Logistics) for the prevention and mitigation of corrosion of the military equipment and infrastructure of the Department of Defense. The Director shall report directly to the Under Secretary.

    `(3) In order to qualify to be assigned to the position of Director, an individual shall--

      `(A) have management expertise in, and professional experience with, corrosion project and policy implementation, including an understanding of the effects of corrosion policies on infrastructure; research, development, test, and evaluation; and maintenance; and

      `(B) have an understanding of Department of Defense budget formulation and execution, policy formulation, and planning and program requirements.

    `(4) The Secretary of Defense shall designate the position of Director as a critical acquisition position under section 1733(b)(1)(C) of this title.'.

      (2) CONFORMING AMENDMENTS- Section 2228(b) of such title is amended--

        (A) in paragraph (1), by striking `official or organization designated under subsection (a)' and inserting `Director of Corrosion Policy and Oversight (in this section referred to as the `Director')'; and

        (B) in paragraphs (2), (3), (4), and (5), by striking `designated official or organization' and inserting `Director'.

    (b) Additional Authority for Director of Office- Section 2228 of such title is further amended--

      (1) by redesignating subsections (c) and (d) as subsections (d) and (f), respectively; and

      (2) by inserting after subsection (b) the following new subsection:

    `(c) Additional Authorities for Director- The Director is authorized to--

      `(1) develop, update, and coordinate corrosion training with the Defense Acquisition University;

      `(2) participate in the process within the Department of Defense for the development of relevant directives and instructions; and

      `(3) interact directly with the corrosion prevention industry, trade associations, other government corrosion prevention agencies, academic research and educational institutions, and scientific organizations engaged in corrosion prevention, including the National Academy of Sciences.'.

    (c) Inclusion of Cooperative Research Agreements as Part of Corrosion Reduction Strategy- Subsection (d)(2)(D) of section 2228 of such title, as redesignated by subsection (b), is amended by inserting after `operational strategies' the following: `, including through the establishment of memoranda of agreement, joint funding agreements, public-private partnerships, university research and education centers, and other cooperative research agreements'.

    (d) Report Requirement- Section 2228 of such title is further amended by inserting after subsection (d) (as redesignated by subsection (b)) the following new subsection:

    `(e) Report- (1) For each budget for a fiscal year, beginning with the budget for fiscal year 2009, the Secretary of Defense shall submit, with the defense budget materials, a report on the following:

      `(A) Funding requirements for the long-term strategy developed under subsection (d).

      `(B) The return on investment that would be achieved by implementing the strategy.

      `(C) The funds requested in the budget compared to the funding requirements.

      `(D) An explanation if the funding requirements are not fully funded in the budget.

    `(2) Within 60 days after submission of the budget for a fiscal year, the Comptroller General shall provide to the congressional defense committees--

      `(A) an analysis of the budget submission for corrosion control and prevention by the Department of Defense; and

      `(B) an analysis of the report required under paragraph (1).'.

    (e) Definitions- Subsection (f) of section 2228 of such title, as redesignated by subsection (b), is amended by adding at the end the following new paragraphs:

      `(4) The term `budget', with respect to a fiscal year, means the budget for that fiscal year that is submitted to Congress by the President under section 1105(a) of title 31.

      `(5) The term `defense budget materials', with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year.'.

    (f) Clerical Amendment- The table of sections at the beginning of chapter 131 of such title is amended by striking the item relating to section 2228 and inserting the following new item:

      `2228. Office of Corrosion Policy and Oversight.'.

SEC. 372. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE SUPPORT FOR CERTAIN SPORTING EVENTS.

    (a) Provision of Support- Section 2564 of title 10, United States Code, is amended--

      (1) in subsection (c), by adding at the end the following new paragraphs:

      `(4) A sporting event sanctioned by the United States Olympic Committee through the Paralympic Military Program.

      `(5) Any national or international paralympic sporting event (other than a sporting event described in paragraphs (1) through (4))--

        `(A) that--

          `(i) is held in the United States or any of its territories or commonwealths;

          `(ii) is governed by the International Paralympic Committee; and

          `(iii) is sanctioned by the United States Olympic Committee;

        `(B) for which participation exceeds 100 amateur athletes; and

        `(C) in which at least 10 percent of the athletes participating in the sporting event are members or former members of the armed forces who are participating in the sporting event based upon an injury or wound incurred in the line of duty in the armed force and veterans who are participating in the sporting event based upon a service-connected disability.'; and

      (2) by adding at the end the following new subsection:

    `(g) Funding for Support of Certain Events- (1) Amounts for the provision of support for a sporting event described in paragraph (4) or (5) of subsection (c) may be derived from the Support for International Sporting Competitions, Defense account established by section 5802 of the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208; 10 U.S.C. 2564 note), notwithstanding any limitation under that section relating to the availability of funds in such account for the provision of support for international sporting competitions.

    `(2) The total amount expended for any fiscal year to provide support for sporting events described in subsection (c)(5) may not exceed $1,000,000.'.

    (b) Source of Funds- Section 5802 of the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208; 10 U.S.C. 2564 note) is amended--

      (1) by inserting after `international sporting competitions' the following: `and for support of sporting competitions authorized under section 2564(c)(4) and (5), of title 10, United States Code,'; and

      (2) by striking `45 days' and inserting `15 days'.

SEC. 373. AUTHORITY TO IMPOSE REASONABLE RESTRICTIONS ON PAYMENT OF FULL REPLACEMENT VALUE FOR LOST OR DAMAGED PERSONAL PROPERTY TRANSPORTED AT GOVERNMENT EXPENSE.

    Section 2636a(d) of title 10, United States Code, is amended by adding at the end the following new sentence: `The regulations may include a requirement that a member of the armed forces or civilian employee of the Department of Defense comply with reasonable restrictions or conditions prescribed by the Secretary in order to receive the full amount deducted under subsection (b).'.

SEC. 374. PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE AIRCRAFT OF RETIRED MEMBERS RESIDING IN COMMONWEALTHS AND POSSESSIONS OF THE UNITED STATES FOR CERTAIN HEALTH CARE SERVICES.

    (a) Availability of Transportation- Chapter 157 of title 10, United States Code, is amended by inserting after section 2641a the following new section:

`Sec. 2641b. Space-available travel on Department of Defense aircraft: retired members residing in Commonwealths and possessions of the United States for certain health care services

    `(a) Priority Transportation- The Secretary of Defense shall provide transportation on Department of Defense aircraft on a space-available basis for any member or former member of the uniformed services described in subsection (b), and a single dependent of the member if needed to accompany the member, at a priority level in the same category as the priority level for an unaccompanied dependent over the age of 18 traveling on environmental and morale leave.

    `(b) Eligible Members and Former Members- A member or former member eligible for priority transport under subsection (a) is a covered beneficiary under chapter 55 of this title who--

      `(1) is entitled to retired or retainer pay;

      `(2) resides in or is located in a Commonwealth or possession of the United States; and

      `(3) is referred by a military or civilian primary care provider located in that Commonwealth or possession to a specialty care provider for services to be provided outside of that Commonwealth or possession.

    `(c) Scope of Priority- The increased priority for space-available transportation required by subsection (a) applies with respect to both--

      `(1) the travel from the Commonwealth or possession of the United States to receive the specialty care services; and

      `(2) the return travel.

    `(d) Definitions- In this section, the terms `primary care provider' and `specialty care provider' refer to a medical or dental professional who provides health care services under chapter 55 of this title.

    `(e) Regulations- The Secretary of Defense shall prescribe regulations to implement this section.'.

    (b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2641a the following new item:

      `2641b. Space-available travel on Department of Defense aircraft: retired members residing in Commonwealths and possessions of the United States for certain health care services.'.

SEC. 375. RECOVERY OF MISSING MILITARY PROPERTY.

    (a) In General- Chapter 165 of title 10, United States Code, is amended by adding at the end the following new sections:

`Sec. 2788. Property accountability: regulations

    `The Secretary of a military department may prescribe regulations for the accounting for the property of that department and the fixing of responsibility for that property.

`Sec. 2789. Individual equipment: unauthorized disposition

    `(a) Prohibition- No member of the armed forces may sell, lend, pledge, barter, or give any clothing, arms, or equipment furnished to such member by the United States to any person other than a member of the armed forces or an officer of the United States who is authorized to receive it.

    `(b) Seizure of Improperly Disposed Property- If a member of the armed forces has disposed of property in violation of subsection (a) and the property is in the possession of a person who is neither a member of the armed forces nor an officer of the United States who is authorized to receive it, that person has no right to or interest in the property, and any civil or military officer of the United States may seize the property, wherever found, subject to applicable regulations. Possession of such property furnished by the United States to a member of the armed forces by a person who is neither a member of the armed forces, nor an officer of the United States, is prima facie evidence that the property has been disposed of in violation of subsection (a).

    `(c) Delivery of Seized Property- If an officer who seizes property under subsection (b) is not authorized to retain it for the United States, the officer shall deliver the property to a person who is authorized to retain it.'.

    (b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by adding at the end the following new items:

      `2788. Property accountability: regulations.

      `2789. Individual equipment: unauthorized disposition.'.

    (c) Conforming Amendments-

      (1) IN GENERAL- Such title is further amended by striking the following sections:

        (A) Section 4832.

        (B) Section 4836.

        (C) Section 9832.

        (D) Section 9836.

      (2) CLERICAL AMENDMENTS-

        (A) CHAPTER 453- The table of sections at the beginning of chapter 453 of such title is amended by striking the items relating to sections 4832 and 4836.

        (B) CHAPTER 953- The table of sections at the beginning of chapter 953 of such title is amended by striking the items relating to sections 9832 and 9836.

SEC. 376. RETENTION OF COMBAT UNIFORMS BY MEMBERS OF THE ARMED FORCES DEPLOYED IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Retention of Combat Uniforms- Chapter 152 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2568. Retention of combat uniforms by members deployed in support of contingency operations

    `The Secretary of a military department may authorize a member of the armed forces under the jurisdiction of the Secretary who has been deployed in support of a contingency operation for at least 30 days to retain, after that member is no longer so deployed, the combat uniform issued to that member as organizational clothing and individual equipment.'.

    (b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `2568. Retention of combat uniforms by members deployed in support of contingency operations.'.

SEC. 377. ISSUE OF SERVICEABLE MATERIAL OF THE NAVY OTHER THAN TO ARMED FORCES.

    (a) In General- Part IV of subtitle C of title 10, United States Code, is amended by adding at the end the following new chapter:

`CHAPTER 667--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

      `Sec.

      `7911. Arms, tentage, and equipment: educational institutions not maintaining units of R.O.T.C.

      `7912. Rifles and ammunition for target practice: educational institutions having corps of midshipmen.

      `7913. Supplies: military instruction camps.

`Sec. 7911. Arms, tentage, and equipment: educational institutions not maintaining units of R.O.T.C.

    `Under such conditions as he may prescribe, the Secretary of the Navy may issue arms, tentage, and equipment that the Secretary considers necessary for proper military training, to any educational institution at which no unit of the Reserve Officers' Training Corps is maintained, but which has a course in military training prescribed by the Secretary and which has at least 50 physically fit students over 14 years of age.

`Sec. 7912. Rifles and ammunition for target practice: educational institutions having corps of midshipmen

    `(a) Authority To Lend- The Secretary of the Navy may lend, without expense to the United States, magazine rifles and appendages that are not of the existing service models in use at the time and that are not necessary for a proper reserve supply, to any educational institution having a uniformed corps of midshipmen of sufficient number for target practice. The Secretary may also issue 40 rounds of ball cartridges for each midshipman for each range at which target practice is held, but not more than 120 rounds each year for each midshipman participating in target practice.

    `(b) Responsibilities of Institutions- The institutions to which property is lent under subsection (a) shall--

      `(1) use the property for target practice;

      `(2) take proper care of the property; and

      `(3) return the property when required.

    `(c) Regulations- The Secretary of the Navy shall prescribe regulations to carry out this section, containing such other requirements as he considers necessary to safeguard the interests of the United States.

`Sec. 7913. Supplies: military instruction camps

    `Under such conditions as he may prescribe, the Secretary of the Navy may issue, to any educational institution at which an officer of the naval service is detailed as professor of naval science, such supplies as are necessary to establish and maintain a camp for the military instruction of its students. The Secretary shall require a bond in the value of the property issued under this section, for the care and safekeeping of that property and except for property properly expended, for its return when required.'.

    (b) Clerical Amendment- The table of chapters at the beginning of subtitle C of such title, and the table of chapters at the beginning of part IV of such subtitle, are each amended by inserting after the item relating to chapter 665 the following new item:

7911.'.

SEC. 378. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

    Section 44310 of title 49, United States Code, is amended by striking `March 30, 2008' and inserting `December 31, 2013'.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

      Sec. 401. End strengths for active forces.

      Sec. 402. Revision in permanent active duty end strength minimum levels.

      Sec. 403. Additional authority for increases of Army and Marine Corps active duty end strengths for fiscal years 2009 and 2010.

      Sec. 404. Increase in authorized strengths for Army officers on active duty in the grade of major.

      Sec. 405. Increase in authorized strengths for Navy officers on active duty in the grades of lieutenant commander, commander, and captain.

      Sec. 406. Increase in authorized daily average of number of members in pay grade E-9.

Subtitle B--Reserve Forces

      Sec. 411. End strengths for Selected Reserve.

      Sec. 412. End strengths for Reserves on active duty in support of the Reserves.

      Sec. 413. End strengths for military technicians (dual status).

      Sec. 414. Fiscal year 2008 limitation on number of non-dual status technicians.

      Sec. 415. Maximum number of reserve personnel authorized to be on active duty for operational support.

      Sec. 416. Future authorizations and accounting for certain reserve component personnel authorized to be on active duty or full-time National Guard duty to provide operational support.

      Sec. 417. Revision of variances authorized for Selected Reserve end strengths.

Subtitle C--Authorization of Appropriations

      Sec. 421. Military personnel.

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General- The Armed Forces are authorized strengths for active duty personnel as of September 30, 2008, as follows:

      (1) The Army, 525,400.

      (2) The Navy, 329,098.

      (3) The Marine Corps, 189,000.

      (4) The Air Force, 329,563.

    (b) Limitation-

      (1) ARMY- The authorized strength for the Army provided in paragraph (1) of subsection (a) for active duty personnel for fiscal year 2008 is subject to the condition that costs of active duty personnel of the Army for that fiscal year in excess of 489,400 shall be paid out of funds authorized to be appropriated for that fiscal year by section 1514.

      (2) MARINE CORPS- The authorized strength for the Marine Corps provided in paragraph (3) of subsection (a) for active duty personnel for fiscal year 2008 is subject to the condition that costs of active duty personnel of the Marine Corps for that fiscal year in excess of 180,000 shall be paid out of funds authorized to be appropriated for that fiscal year by section 1514.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM LEVELS.

    Section 691(b) of title 10, United States Code, is amended by striking paragraphs (1) through (4) and inserting the following new paragraphs:

      `(1) For the Army, 525,400.

      `(2) For the Navy, 328,400.

      `(3) For the Marine Corps, 189,000.

      `(4) For the Air Force, 328,600.'.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2009 AND 2010.

    (a) Authority to Increase Army Active Duty End Strengths- For each of fiscal years 2009 and 2010, the Secretary of Defense may, as the Secretary determines necessary for the purposes described in subsection (c), establish the active-duty end strength for the Army at a number greater than the number otherwise authorized by law up to the number equal to the fiscal-year 2008 baseline plus 22,000.

    (b) Marine Corps- For each of fiscal years 2009 and 2010, the Secretary of Defense may, as the Secretary determines necessary for the purposes described in subsection (c), establish the active-duty end strength for the Marine Corps at a number greater than the number otherwise authorized by law up to the number equal to the fiscal-year 2008 baseline plus 13,000.

    (c) Purpose of Increases- The purposes for which increases may be made in Army and Marine Corps active duty end strengths under this section are--

      (1) to support operational missions; and

      (2) to achieve transformational reorganization objectives, including objectives for increased numbers of combat brigades and battalions, increased unit manning, force stabilization and shaping, and rebalancing of the active and reserve component forces.

    (d) Relationship to Presidential Waiver Authority- Nothing in this section shall be construed to limit the President's authority under section 123a of title 10, United States Code, to waive any statutory end strength in a time of war or national emergency.

    (e) Relationship to Other Variance Authority- The authority under this section is in addition to the authority to vary authorized end strengths that is provided in subsections (e) and (f) of section 115 of title 10, United States Code.

    (f) Budget Treatment-

      (1) FISCAL YEARS 2009 AND 2010 BUDGETS- The budget for the Department of Defense for fiscal years 2009 and 2010 as submitted to Congress shall comply, with respect to funding, with subsections (c) and (d) of section 691 of title 10, United States Code.

      (2) OTHER INCREASES- If the Secretary of Defense plans to increase the Army or Marine Corps active duty end strength for a fiscal year under this section, then the budget for the Department of Defense for that fiscal year as submitted to Congress shall include the amounts necessary for funding that active duty end strength in excess of the fiscal year 2008 active duty end strength authorized for that service under section 401.

    (g) Definitions- In this section:

      (1) FISCAL-YEAR 2008 BASELINE- The term `fiscal-year 2008 baseline', with respect to the Army and Marine Corps, means the active-duty end strength authorized for those services in section 401.

      (2) ACTIVE-DUTY END STRENGTH- In this subsection, the term `active-duty end strength' means the strength for active-duty personnel of one of the Armed Forces as of the last day of a fiscal year.

    (h) Repeal of Other Discretionary Authority to Temporarily Increase Army and Marine Corps Active Duty End Strengths- Section 403 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 10 U.S.C. 115 note), as amended by section 403 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2169), is repealed.

SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE DUTY IN THE GRADE OF MAJOR.

    The portion of the table in section 523(a)(1) of title 10, United States Code, relating to the Army is amended to read as follows:

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
`Total number of commissioned officers (excluding officers in categories specified in subsection (b)) on active duty: Number of officers who may be serving on active duty in grade of:                            
                                                                                                                                                                                  Major Lieutenant Colonel Colonel 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Army:                                                                                              
                                                                                                               20,000                                                             7,768              5,253   1,613 
                                                                                                               25,000                                                             8,689              5,642   1,796 
                                                                                                               30,000                                                             9,611              6,030   1,980 
                                                                                                               35,000                                                            10,532              6,419   2,163 
                                                                                                               40,000                                                            11,454              6,807   2,347 
                                                                                                               45,000                                                            12,375              7,196   2,530 
                                                                                                               50,000                                                            13,297              7,584   2,713 
                                                                                                               55,000                                                            14,218              7,973   2,897 
                                                                                                               60,000                                                            15,140              8,361   3,080 
                                                                                                               65,000                                                            16,061              8,750   3,264 
                                                                                                               70,000                                                            16,983              9,138   3,447 
                                                                                                               75,000                                                            17,903              9,527   3,631 
                                                                                                               80,000                                                            18,825              9,915   3,814 
                                                                                                               85,000                                                            19,746             10,304   3,997 
                                                                                                               90,000                                                            20,668             10,692   4,181 
                                                                                                               95,000                                                            21,589             11,081   4,364 
                                                                                                              100,000                                                            22,511             11,469   4,548 
                                                                                                              110,000                                                            24,354             12,246   4,915 
                                                                                                              120,000                                                            26,197             13,023   5,281 
                                                                                                              130,000                                                            28,040             13,800   5,648 
                                                                                                              170,000                                                            35,412             16,908 7,116'. 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SEC. 405. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE DUTY IN THE GRADES OF LIEUTENANT COMMANDER, COMMANDER, AND CAPTAIN.

    The table in section 523(a)(2) of title 10, United States Code, is amended to read as follows:

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
`Total number of commissioned officers (excluding officers in categories specified in subsection (b)) on active duty: Number of officers who may be serving on active duty in grade of:                   
                                                                                                                                                                   Lieutenant Commander Commander Captain 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Navy:                                                                                     
                                                                                                               30,000                                                             7,698     5,269   2,222 
                                                                                                               33,000                                                             8,189     5,501   2,334 
                                                                                                               36,000                                                             8,680     5,733   2,447 
                                                                                                               39,000                                                             9,172     5,965   2,559 
                                                                                                               42,000                                                             9,663     6,197   2,671 
                                                                                                               45,000                                                            10,155     6,429   2,784 
                                                                                                               48,000                                                            10,646     6,660   2,896 
                                                                                                               51,000                                                            11,136     6,889   3,007 
                                                                                                               54,000                                                            11,628     7,121   3,120 
                                                                                                               57,000                                                            12,118     7,352   3,232 
                                                                                                               60,000                                                            12,609     7,583   3,344 
                                                                                                               63,000                                                            13,100     7,813   3,457 
                                                                                                               66,000                                                            13,591     8,044   3,568 
                                                                                                               70,000                                                            14,245     8,352   3,718 
                                                                                                               90,000                                                            17,517     9,890 4,467'. 
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

SEC. 406. INCREASE IN AUTHORIZED DAILY AVERAGE OF NUMBER OF MEMBERS IN PAY GRADE E-9.

    Section 517(a) of title 10, United States Code, is amended by striking `1 percent' and inserting `1.25 percent'.

Subtitle B--Reserve Forces

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 September 30, 2008, as follows:

      (1) The Army National Guard of the United States, 351,300.

      (2) The Army Reserve, 205,000.

      (3) The Navy Reserve, 67,800.

      (4) The Marine Corps Reserve, 39,600.

      (5) The Air National Guard of the United States, 106,700.

      (6) The Air Force Reserve, 67,500.

      (7) The Coast Guard Reserve, 10,000.

    (b) End Strength Reductions- The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately 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 consent at the end of the fiscal year.

    (c) End Strength Increases- Whenever units or individual members of the Selected Reserve of any reserve component 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 increased proportionately by the total authorized strengths of such units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 2008, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

      (1) The Army National Guard of the United States, 29,204.

      (2) The Army Reserve, 15,870.

      (3) The Navy Reserve, 11,579.

      (4) The Marine Corps Reserve, 2,261.

      (5) The Air National Guard of the United States, 13,936.

      (6) The Air Force Reserve, 2,721.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the last day of fiscal year 2008 for the reserve components of the Army and the Air Force (notwithstanding section 129 of title 10, United States Code) shall be the following:

      (1) For the Army Reserve, 8,249.

      (2) For the Army National Guard of the United States, 26,502.

      (3) For the Air Force Reserve, 9,909.

      (4) For the Air National Guard of the United States, 22,553.

SEC. 414. FISCAL YEAR 2008 LIMITATION ON NUMBER OF NON-DUAL STATUS TECHNICIANS.

    (a) Limitations-

      (1) NATIONAL GUARD- Within the limitation provided in section 10217(c)(2) of title 10, United States Code, the number of non-dual status technicians employed by the National Guard as of September 30, 2008, may not exceed the following:

        (A) For the Army National Guard of the United States, 1,600.

        (B) For the Air National Guard of the United States, 350.

      (2) ARMY RESERVE- The number of non-dual status technicians employed by the Army Reserve as of September 30, 2008, may not exceed 595.

      (3) AIR FORCE RESERVE- The number of non-dual status technicians employed by the Air Force Reserve as of September 30, 2008, may not exceed 90.

    (b) Non-Dual Status Technicians Defined- In this section, the term `non-dual status technician' has the meaning given that term in section 10217(a) of title 10, United States Code.

SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2008, the maximum number of members of the reserve components of the Armed Forces who may be serving at any time on full-time operational support duty under section 115(b) of title 10, United States Code, is the following:

      (1) The Army National Guard of the United States, 17,000.

      (2) The Army Reserve, 13,000.

      (3) The Navy Reserve, 6,200.

      (4) The Marine Corps Reserve, 3,000.

      (5) The Air National Guard of the United States, 16,000.

      (6) The Air Force Reserve, 14,000.

SEC. 416. FUTURE AUTHORIZATIONS AND ACCOUNTING FOR CERTAIN RESERVE COMPONENT PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY OR FULL-TIME NATIONAL GUARD DUTY TO PROVIDE OPERATIONAL SUPPORT.

    (a) Review of Operational Support Missions Performed by Certain Reserve Component Personnel-

      (1) REVIEW REQUIRED- The Secretary of Defense shall conduct a review of the long-term operational support missions performed by members of the reserve components authorized under section 115(b) of title 10, United States Code, to be on active duty or full-time National Guard duty for the purpose of providing operational support, with the objectives of such review being--

        (A) minimizing the number of reserve component members who perform such service for a period greater than 1,095 consecutive days, or cumulatively for 1,095 days out of the previous 1,460 days; and

        (B) determining which long-term operational support missions being performed by such members would more appropriately be performed by members of the Armed Forces on active duty under other provisions of title 10, United States Code, or by full-time support personnel of reserve components.

      (2) SUBMISSION OF RESULTS- Not later than March 1, 2008, the Secretary shall submit to Congress the results of the review, including a description of the adjustments in Department of Defense policy to be implemented as a result of the review and such recommendations for changes in statute, as the Secretary considers to be appropriate.

    (b) Improved Accounting for Reserve Component Personnel Providing Operational Support- Section 115(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    `(4) As part of the budget justification materials submitted by the Secretary of Defense to Congress in support of the end strength authorizations required under subparagraphs (A) and (B) of subsection (a)(1) for fiscal year 2009 and each fiscal year thereafter, the Secretary shall provide the following:

      `(A) The number of members, specified by reserve component, authorized under subparagraphs (A) and (B) of paragraph (1) who were serving on active duty or full-time National Guard duty for operational support beyond each of the limits specified under subparagraphs (A) and (B) of paragraph (2) at the end of the fiscal year preceding the fiscal year for which the budget justification materials are submitted.

      `(B) The number of members, specified by reserve component, on active duty for operational support who, at the end of the fiscal year for which the budget justification materials are submitted, are projected to be serving on active duty or full-time National Guard duty for operational support beyond such limits.

      `(C) The number of members, specified by reserve component, on active duty or full-time National Guard duty for operational support who are included in, and counted against, the end strength authorizations requested under subparagraphs (A) and (B) of subsection (a)(1).

      `(D) A summary of the missions being performed by members identified under subparagraphs (A) and (B).'.

SEC. 417. REVISION OF VARIANCES AUTHORIZED FOR SELECTED RESERVE END STRENGTHS.

    Section 115(f)(3) of title 10, United States Code, is amended by striking `2 percent' and inserting `3 percent'.

Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2008 a total of $117,091,420,000. The authorization in the preceding sentence supersedes any other authorization of appropriations (definite or indefinite) for such purpose for fiscal year 2008.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

      Sec. 501. Assignment of officers to designated positions of importance and responsibility.

      Sec. 502. Enhanced authority for Reserve general and flag officers to serve on active duty.

      Sec. 503. Increase in years of commissioned service threshold for discharge of probationary officers and for use of force shaping authority.

      Sec. 504. Mandatory retirement age for active-duty general and flag officers continued on active duty.

      Sec. 505. Authority for reduced mandatory service obligation for initial appointments of officers in critically short health professional specialties.

      Sec. 506. Expansion of authority for reenlistment of officers in their former enlisted grade.

      Sec. 507. Increase in authorized number of permanent professors at the United States Military Academy.

      Sec. 508. Promotion of career military professors of the Navy.

Subtitle B--Reserve Component Management

      Sec. 511. Retention of military technicians who lose dual status in the Selected Reserve due to combat-related disability.

      Sec. 512. Constructive service credit upon original appointment of Reserve officers in certain health care professions.

      Sec. 513. Mandatory separation of Reserve officers in the grade of lieutenant general or vice admiral after completion of 38 years of commissioned service.

      Sec. 514. Maximum period of temporary Federal recognition of person as Army National Guard officer or Air National Guard officer.

      Sec. 515. Advance notice to members of reserve components of deployment in support of contingency operations.

      Sec. 516. Report on relief from professional licensure and certification requirements for reserve component members on long-term active duty.

Subtitle C--Education and Training

      Sec. 521. Revisions to authority to pay tuition for off-duty training or education.

      Sec. 522. Reduction or elimination of service obligation in an Army Reserve or Army National Guard troop program unit for certain persons selected as medical students at Uniformed Services University of the Health Sciences.

      Sec. 523. Repeal of annual limit on number of ROTC scholarships under Army Reserve and Army National Guard financial assistance program.

      Sec. 524. Treatment of prior active service of members in uniformed medical accession programs.

      Sec. 525. Repeal of post-2007-2008 academic year prohibition on phased increase in cadet strength limit at the United States Military Academy.

      Sec. 526. National Defense University master's degree programs.

      Sec. 527. Authority of the Air University to confer degree of master of science in flight test engineering.

      Sec. 528. Enhancement of education benefits for certain members of reserve components.

      Sec. 529. Extension of period of entitlement to educational assistance for certain members of the Selected Reserve affected by force shaping initiatives.

      Sec. 530. Time limit for use of educational assistance benefit for certain members of reserve components and resumption of benefit.

      Sec. 531. Secretary of Defense evaluation of the adequacy of the degree-granting authorities of certain military universities and educational institutions.

      Sec. 532. Report on success of Army National Guard and Reserve Senior Reserve Officers' Training Corps financial assistance program.

      Sec. 533. Report on utilization of tuition assistance by members of the Armed Forces.

      Sec. 534. Navy Junior Reserve Officers' Training Corps unit for Southold, Mattituck, and Greenport High Schools.

      Sec. 535. Report on transfer of administration of certain educational assistance programs for members of the reserve components.

Subtitle D--Military Justice and Legal Assistance Matters

      Sec. 541. Authority to designate civilian employees of the Federal Government and dependents of deceased members as eligible for legal assistance from Department of Defense legal staff resources.

      Sec. 542. Authority of judges of the United States Court of Appeals for the Armed Forces to administer oaths.

      Sec. 543. Modification of authorities on senior members of the Judge Advocate Generals' Corps.

      Sec. 544. Prohibition against members of the Armed Forces participating in criminal street gangs.

Subtitle E--Military Leave

      Sec. 551. Temporary enhancement of carryover of accumulated leave for members of the Armed Forces.

      Sec. 552. Enhancement of rest and recuperation leave.

Subtitle F--Decorations and Awards

      Sec. 561. Authorization and request for award of Medal of Honor to Leslie H. Sabo, Jr., for acts of valor during the Vietnam War.

      Sec. 562. Authorization and request for award of Medal of Honor to Henry Svehla for acts of valor during the Korean War.

      Sec. 563. Authorization and request for award of Medal of Honor to Woodrow W. Keeble for acts of valor during the Korean War.

      Sec. 564. Authorization and request for award of Medal of Honor to Private Philip G. Shadrach for acts of valor as one of Andrews' Raiders during the Civil War.

      Sec. 565. Authorization and request for award of Medal of Honor to Private George D. Wilson for acts of valor as one of Andrews' Raiders during the Civil War.

Subtitle G--Impact Aid and Defense Dependents Education System

      Sec. 571. Continuation of authority to assist local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

      Sec. 572. Impact aid for children with severe disabilities.

      Sec. 573. Inclusion of dependents of non-department of Defense employees employed on Federal property in plan relating to force structure changes, relocation of military units, or base closures and realignments.

      Sec. 574. Payment of private boarding school tuition for military dependents in overseas areas not served by defense dependents' education system schools.

Subtitle H--Military Families

      Sec. 581. Department of Defense Military Family Readiness Council and policy and plans for military family readiness.

      Sec. 582. Yellow Ribbon Reintegration Program.

      Sec. 583. Study to enhance and improve support services and programs for families of members of regular and reserve components undergoing deployment.

      Sec. 584. Protection of child custody arrangements for parents who are members of the Armed Forces deployed in support of a contingency operation.

      Sec. 585. Family leave in connection with injured members of the Armed Forces.

      Sec. 586. Family care plans and deferment of deployment of single parent or dual military couples with minor dependents.

      Sec. 587. Education and treatment services for military dependent children with autism.

      Sec. 588. Commendation of efforts of Project Compassion in paying tribute to members of the Armed Forces who have fallen in the service of the United States.

Subtitle I--Other Matters

      Sec. 590. Uniform performance policies for military bands and other musical units.

      Sec. 591. Transportation of remains of deceased members of the Armed Forces and certain other persons.

      Sec. 592. Expansion of number of academies supportable in any State under STARBASE program.

      Sec. 593. Gift acceptance authority.

      Sec. 594. Conduct by members of the Armed Forces and veterans out of uniform during hoisting, lowering, or passing of United States flag.

      Sec. 595. Annual report on cases reviewed by National Committee for Employer Support of the Guard and Reserve.

      Sec. 596. Modification of Certificate of Release or Discharge from Active Duty (DD Form 214).

      Sec. 597. Reports on administrative separations of members of the Armed Forces for personality disorder.

      Sec. 598. Program to commemorate 50th anniversary of the Vietnam War.

      Sec. 599. Recognition of members of the Monuments, Fine Arts, and Archives program of the Civil Affairs and Military Government Sections of the Armed Forces during and following World War II.

Subtitle A--Officer Personnel Policy

SEC. 501. ASSIGNMENT OF OFFICERS TO DESIGNATED POSITIONS OF IMPORTANCE AND RESPONSIBILITY.

    (a) Continuation in Grade While Awaiting Orders- Section 601(b) of title 10, United States Code, is amended--

      (1) by striking `and' at the end of paragraph (3);

      (2) by redesignating paragraph (4) as paragraph (5); and

      (3) by inserting after paragraph (3) the following new paragraph (4):

      `(4) at the discretion of the Secretary of Defense, while the officer is awaiting orders after being relieved from the position designated under subsection (a) or by law to carry one of those grades, but not for more than 60 days beginning on the day the officer is relieved from the position, unless, during such period, the officer is placed under orders to another position designated under subsection (a) or by law to carry one of those grades, in which case paragraph (2) will also apply to the officer; and'.

    (b) Conforming Amendment Regarding General and Flag Officer Ceilings- Section 525(e) of such title is amended by striking paragraph (2) and inserting the following new paragraph:

      `(2) At the discretion of the Secretary of Defense, an officer of that armed force who has been relieved from a position designated under section 601(a) of this title or by law to carry one of the grades specified in such section, but only during the 60-day period beginning on the date on which the assignment of the officer to the first position is terminated or until the officer is assigned to a second such position, whichever occurs first.'.

SEC. 502. ENHANCED AUTHORITY FOR RESERVE GENERAL AND FLAG OFFICERS TO SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is amended--

      (1) by inserting `(1)' before `The limitations'; and

      (2) by adding at the end the following new paragraph:

    `(2) The limitations of this section also do not apply to a number, as specified by the Secretary of the military department concerned, of reserve component general or flag officers authorized to serve on active duty for a period of not more than 365 days. The number so specified for an armed force may not exceed the number equal to 10 percent of the authorized number of general or flag officers, as the case may be, of that armed force under section 12004 of this title. In determining such number, any fraction shall be rounded down to the next whole number, except that such number shall be at least one.'.

SEC. 503. INCREASE IN YEARS OF COMMISSIONED SERVICE THRESHOLD FOR DISCHARGE OF PROBATIONARY OFFICERS AND FOR USE OF FORCE SHAPING AUTHORITY.

    (a) Active-Duty List Officers-

      (1) EXTENDED PROBATIONARY PERIOD- Paragraph (1)(A) of section 630 of title 10, United States Code, is amended by striking `five years' and inserting `six years'.

      (2) SECTION HEADING- The heading of such section is amended by striking `five years' and inserting `six years'.

      (3) TABLE OF SECTIONS- The item relating to such section in the table of sections at the beginning of subchapter III of chapter 36 of such title is amended to read as follows:

      `630. Discharge of commissioned officers with less than six years of active commissioned service or found not qualified for promotion for first lieutenant or lieutenant (junior grade).'.

    (b) Officer Force Shaping Authority- Section 647(b)(1) of such title is amended by striking `5 years' both places it appears and inserting `six years'.

    (c) Reserve Officers-

      (1) EXTENDED PROBATIONARY PERIOD- Subsection (a)(1) of section 14503 of such title is amended by striking `five years' and inserting `six years'.

      (2) SECTION HEADING- The heading of such section is amended by striking `five years' and inserting `six years'.

      (3) TABLE OF SECTIONS- The item relating to such section in the table of sections at the beginning of chapter 1407 of such title is amended to read as follows:

      `14503. Discharge of officers with less than six years of commissioned service or found not qualified for promotion to first lieutenant or lieutenant (junior grade).'.

SEC. 504. MANDATORY RETIREMENT AGE FOR ACTIVE-DUTY GENERAL AND FLAG OFFICERS CONTINUED ON ACTIVE DUTY.

    Section 637(b)(3) of title 10, United States Code, is amended by striking `but such period may not (except as provided under section 1251(b) of this title) extend beyond the date of the officer's sixty-second birthday' and inserting `except as provided under section 1251 or 1253 of this title'.

SEC. 505. AUTHORITY FOR REDUCED MANDATORY SERVICE OBLIGATION FOR INITIAL APPOINTMENTS OF OFFICERS IN CRITICALLY SHORT HEALTH PROFESSIONAL SPECIALTIES.

    Section 651 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(c)(1) For the armed forces under the jurisdiction of the Secretary of Defense, the Secretary may waive the initial period of required service otherwise established pursuant to subsection (a) in the case of the initial appointment of a commissioned officer in a critically short health professional specialty specified by the Secretary for purposes of this subsection.

    `(2) The minimum period of obligated service for an officer under a waiver under this subsection shall be the greater of--

      `(A) two years; or

      `(B) in the case of an officer who has accepted an accession bonus or executed a contract or agreement for the multiyear receipt of special pay for service in the armed forces, the period of obligated service specified in such contract or agreement.'.

SEC. 506. EXPANSION OF AUTHORITY FOR REENLISTMENT OF OFFICERS IN THEIR FORMER ENLISTED GRADE.

    (a) Regular Army- Section 3258 of title 10, United States Code, is amended--

      (1) in subsection (a)--

        (A) by striking `a Reserve officer' and inserting `an officer'; and

        (B) by striking `a temporary appointment' and inserting `an appointment'; and

      (2) in subsection (b)--

        (A) in paragraph (1), by striking `a Reserve officer' and inserting `an officer'; and

        (B) in paragraph (2), by striking `the Reserve commission' and inserting `the commission'.

    (b) Regular Air Force- Section 8258 of such title is amended--

      (1) in subsection (a)--

        (A) by striking `a reserve officer' and inserting `an officer'; and

        (B) by striking `a temporary appointment' and inserting `an appointment'; and

      (2) in subsection (b)--

        (A) in paragraph (1), by striking `a Reserve officer' and inserting `an officer'; and

        (B) in paragraph (2), by striking `the Reserve commission' and inserting `the commission'.

SEC. 507. INCREASE IN AUTHORIZED NUMBER OF PERMANENT PROFESSORS AT THE UNITED STATES MILITARY ACADEMY.

    Paragraph (4) of section 4331(b) of title 10, United States Code, is amended to read as follows:

      `(4) Twenty-eight permanent professors.'.

SEC. 508. PROMOTION OF CAREER MILITARY PROFESSORS OF THE NAVY.

    (a) Promotion-

      (1) IN GENERAL- Chapter 603 of title 10, United States Code, is amended--

        (A) by redesignating section 6970 as section 6970a; and

        (B) by inserting after section 6969 the following new section 6970:

`Sec. 6970. Permanent professors: promotion

    `(a) Promotion- An officer serving as a permanent professor may be recommended for promotion to the grade of captain or colonel, as the case may be, under regulations prescribed by the Secretary of the Navy. The regulations shall include a competitive selection board process to identify those permanent professors best qualified for promotion. An officer so recommended shall be promoted by appointment to the higher grade by the President, by and with the advice and consent of the Senate.

    `(b) Effective Date of Promotion- If made, the promotion of an officer under subsection (a) shall be effective not earlier than three years after the selection of the officer as a permanent professor as described in that subsection.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by striking the item relating to section 6970 and inserting the following new items:

      `6970. Permanent professors: promotion.

      `6970a. Permanent professors: retirement for years of service; authority for deferral.'.

    (b) Conforming Amendments- Section 641(2) of such title is amended--

      (1) by striking `and the registrar' and inserting `, the registrar'; and

      (2) by inserting before the period at the end the following: `, and permanent professors of the Navy (as defined in regulations prescribed by the Secretary of the Navy)'.

    (c) Competitive Selection Assessment- The Secretary of Defense shall conduct an assessment of the effectiveness of the promotion system established under section 6970 of title 10, United States Code, as added by subsection (a), for permanent professors of the United States Naval Academy, including an evaluation of the extent to which the implementation of the promotion system has resulted in a competitive environment for the selection of permanent professors and an evaluation of whether the goals of the permanent professor program have been achieved, including adequate career progression and promotion opportunities for participating officers. Not later than December 31, 2009, the Secretary shall submit to the congressional defense committees a report containing the results of the assessment.

    (d) Use of Exclusions From Authorized Officer Strengths- Not later than March 31, 2008, the Secretary of the Navy shall submit to the congressional defense committees a report describing the plans of the Secretary for utilization of authorized exemptions under section 523(b)(8) of title 10, United States Code, and a discussion of the Navy's requirement, if any, and projections for use of additional exemptions by grade.

Subtitle B--Reserve Component Management

SEC. 511. RETENTION OF MILITARY TECHNICIANS WHO LOSE DUAL STATUS IN THE SELECTED RESERVE DUE TO COMBAT-RELATED DISABILITY.

    Section 10216 of title 10, United States Code, is amended by inserting after subsection (f) the following new subsection:

    `(g) Retention of Military Technicians Who Lose Dual Status Due to Combat-Related Disability- (1) Notwithstanding subsection (d) of this section or subsections (a)(3) and (b) of section 10218 of this title, if a military technician (dual status) loses such dual status as the result of a combat-related disability (as defined in section 1413a of this title), the person may be retained as a non-dual status technician so long as--

      `(A) the combat-related disability does not prevent the person from performing the non-dual status functions or position; and

      `(B) the person, while a non-dual status technician, is not disqualified from performing the non-dual status functions or position because of performance, medical, or other reasons.

    `(2) A person so retained shall be removed not later than 30 days after becoming eligible for an unreduced annuity and becoming 60 years of age.

    `(3) Persons retained under the authority of this subsection do not count against the limitations of section 10217(c) of this title.'.

SEC. 512. CONSTRUCTIVE SERVICE CREDIT UPON ORIGINAL APPOINTMENT OF RESERVE OFFICERS IN CERTAIN HEALTH CARE PROFESSIONS.

    (a) Inclusion of Additional Health Care Professions- Paragraph (2) of section 12207(b) of title 10, United States Code, is amended to read as follows:

    `(2)(A) If the Secretary of Defense determines that the number of officers in a health profession described in subparagraph (B) who are serving in an active status in a reserve component of the Army, Navy, or Air Force in grades below major or lieutenant commander is critically below the number needed in such health profession by such reserve component in such grades, the Secretary of Defense may authorize the Secretary of the military department concerned to credit any person who is receiving an original appointment as an officer for service in such health profession with a period of constructive credit in such amount (in addition to any amount credited such person under paragraph (1)) as will result in the grade of such person being that of captain or, in the case of the Navy Reserve, lieutenant.

    `(B) The types of health professions referred to in subparagraph (A) include the following:

      `(i) Any health profession performed by officers in the Medical Corps of the Army or the Navy or by officers of the Air Force designated as a medical officer.

      `(ii) Any health profession performed by officers in the Dental Corps of the Army or the Navy or by officers of the Air Force designated as a dental officer.

      `(iii) Any health profession performed by officers in the Medical Service Corps of the Army or the Navy or by officers of the Air Force designated as a medical service officer or biomedical sciences officer.

      `(iv) Any health profession performed by officers in the Army Medical Specialist Corps.

      `(v) Any health profession performed by officers of the Nurse Corps of the Army or the Navy or by officers of the Air Force designated as a nurse.

      `(vi) Any health profession performed by officers in the Veterinary Corps of the Army or by officers designated as a veterinary officer.'.

    (b) Conforming Amendment- Paragraph (3) of such section is amended by striking `a medical or dental officer' and inserting `officers covered by paragraph (2)'.

SEC. 513. MANDATORY SEPARATION OF RESERVE OFFICERS IN THE GRADE OF LIEUTENANT GENERAL OR VICE ADMIRAL AFTER COMPLETION OF 38 YEARS OF COMMISSIONED SERVICE.

    (a) Mandatory Separation- Section 14508 of title 10, United States Code, is amended--

      (1) by redesignating subsections (c), (d), and (e) as subsections (e), (f), and (g), respectively; and

      (2) by inserting after subsection (b) the following new subsection (c):

    `(c) Thirty-Eight Years of Service for Lieutenant Generals and Vice Admirals- Unless retired, transferred to the Retired Reserve, or discharged at an earlier date, each reserve officer of the Army, Air Force, or Marine Corps in the grade of lieutenant general and each reserve officer of the Navy in the grade of vice admiral shall be separated in accordance with section 14514 of this title on the later of the following:

      `(1) 30 days after completion of 38 years of commissioned service.

      `(2) The fifth anniversary of the date of the officer's appointment in the grade of lieutenant general or vice admiral.'.

    (b) Clerical Amendments- Such section is further amended--

      (1) in subsection (a), by inserting `for Brigadier Generals and Rear Admirals (Lower Half)' after `Grade' in the subsection heading; and

      (2) in subsection (b), by inserting `for Major Generals and Rear Admirals' after `Grade' in the subsection heading.

SEC. 514. MAXIMUM PERIOD OF TEMPORARY FEDERAL RECOGNITION OF PERSON AS ARMY NATIONAL GUARD OFFICER OR AIR NATIONAL GUARD OFFICER.

    Section 308(a) of title 32, United States Code, is amended in the last sentence by striking `six months' and inserting `one year'.

SEC. 515. ADVANCE NOTICE TO MEMBERS OF RESERVE COMPONENTS OF DEPLOYMENT IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Advance Notice Required- The Secretary of a military department shall ensure that a member of a reserve component under the jurisdiction of that Secretary who will be called or ordered to active duty for a period of more than 30 days in support of a contingency operation (as defined in section 101(a)(13) of title 10, United States Code) receives notice in advance of the mobilization date. In so far as is practicable, the notice shall be provided not less than 30 days before the mobilization date, but with a goal of 90 days before the mobilization date.

    (b) Reduction or Waiver of Notice Requirement- The Secretary of Defense may waive the requirement of subsection (a), or authorize shorter notice than the minimum specified in such subsection, during a war or national emergency declared by the President or Congress or to meet mission requirements. If the waiver or reduction is made on account of mission requirements, the Secretary shall submit to Congress a report detailing the reasons for the waiver or reduction and the mission requirements at issue.

SEC. 516. REPORT ON RELIEF FROM PROFESSIONAL LICENSURE AND CERTIFICATION REQUIREMENTS FOR RESERVE COMPONENT MEMBERS ON LONG-TERM ACTIVE DUTY.

    (a) Study- The Comptroller General of the United States shall conduct a study of the requirements to maintain licensure or certification by members of the National Guard or other reserve components of the Armed Forces while on active duty for an extended period of time.

    (b) Elements of Study- In the study, the Comptroller General shall--

      (1) identify the number and type of professional or other licensure or certification requirements that may be adversely impacted by extended periods of active duty; and

      (2) determine mechanisms that would provide relief from professional or other licensure or certification requirements for members of the reserve components while on active duty for an extended period of time.

    (c) Report- Not later than 120 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committees on Armed Services of the Senate and House of Representative a report containing the results of the study and such recommendations as the Comptroller General considers appropriate to provide further relief for members of the reserve components from professional or other licensure or certification requirements while on active duty for an extended period of time.

Subtitle C--Education and Training

SEC. 521. REVISIONS TO AUTHORITY TO PAY TUITION FOR OFF-DUTY TRAINING OR EDUCATION.

    (a) Inclusion of Coast Guard- Subsection (a) of section 2007 of title 10, United States Code, is amended by striking `Subject to subsection (b), the Secretary of a military department' and inserting `Subject to subsections (b) and (c), the Secretary concerned'.

    (b) Commissioned Officers on Active Duty- Subsection (b) of such section is amended--

      (1) in paragraph (1)--

        (A) by inserting after `commissioned officer on active duty' the following: `(other than a member of the Ready Reserve)';

        (B) by striking `the Secretary of the military department concerned' and inserting `the Secretary concerned'; and

        (C) by striking `or full-time National Guard duty' both places it appears; and

      (2) in paragraph (2)--

        (A) in the matter preceding subparagraph (A), by striking `the Secretary of the military department' and inserting `the Secretary concerned';

        (B) in subparagraph (B), by inserting after `active duty service' the following: `for which the officer was ordered to active duty'; and

        (C) in subparagraph (C), by striking `Secretary' and inserting `Secretary concerned'.

    (c) Authority To Pay Tuition Assistance to Members of the Ready Reserve-

      (1) AVAILABILITY OF ASSISTANCE- Subsection (c) of such section is amended to read as follows:

    `(c)(1) Subject to paragraphs (3) and (5), the Secretary concerned may pay the charges of an educational institution for the tuition or expenses described in subsection (a) of a member of the Selected Reserve.

    `(2) Subject to paragraphs (4) and (5), the Secretary concerned may pay the charges of an educational institution for the tuition or expenses described in subsection (a) of a member of the Individual Ready Reserve who has a military occupational specialty designated by the Secretary concerned for purposes of this subsection.

    `(3) The Secretary concerned may not pay charges under paragraph (1) for tuition or expenses of an officer of the Selected Reserve unless the officer enters into an agreement to remain a member of the Selected Reserve for at least 4 years after completion of the education or training for which the charges are paid.

    `(4) The Secretary concerned may not pay charges under paragraph (2) for tuition or expenses of an officer of the Individual Ready Reserve unless the officer enters into an agreement to remain in the Selected Reserve or Individual Ready Reserve for at least 4 years after completion of the education or training for which the charges are paid.

    `(5) The Secretary of a military department may require an enlisted member of the Selected Reserve or Individual Ready Reserve to enter into an agreement to serve for up to 4 years in the Selected Reserve or Individual Ready Reserve, as the case may be, after completion of the education or training for which tuition or expenses are paid under paragraph (1) or (2), as applicable.'.

      (2) REPEAL OF SUPERSEDED PROVISION- Such section is further amended--

        (A) by striking subsection (d); and

        (B) by redesignating subsections (e) and (f) as subsections (d) and (e), respectively.

      (3) REPAYMENT OF UNEARNED BENEFIT- Subsection (e) of such section, as redesignated by paragraph (2) of this subsection, is amended--

        (A) by inserting `(1)' after `(e)'; and

        (B) by adding at the end the following new paragraph:

    `(2) If a member of the Ready Reserve who enters into an agreement under subsection (c) does not complete the period of service specified in the agreement, the member shall be subject to the repayment provisions of section 303a(e) of title 37.'.

    (d) Regulations- Such section is further amended by adding at the end the following new subsection:

    `(f) This section shall be administered under regulations prescribed by the Secretary of Defense or, with respect to the Coast Guard when it is not operating as a service in the Navy, the Secretary of Homeland Security.'.

    (e) Study-

      (1) STUDY REQUIRED- The Secretary of Defense shall carry out a study on the tuition assistance program carried out under section 2007 of title 10, United States Code. The study shall--

        (A) identify the number of members of the Armed Forces eligible for assistance under the program, and the number who actually receive the assistance;

        (B) assess the extent to which the program affects retention rates; and

        (C) assess the extent to which State tuition assistance programs affect retention rates in those States.

      (2) REPORT- Not later than 9 months after the date of the enactment of this Act, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report containing the results of the study.

SEC. 522. REDUCTION OR ELIMINATION OF SERVICE OBLIGATION IN AN ARMY RESERVE OR ARMY NATIONAL GUARD TROOP PROGRAM UNIT FOR CERTAIN PERSONS SELECTED AS MEDICAL STUDENTS AT UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    Paragraph (3) of section 2107a(b) of title 10, United States Code, is amended to read as follows:

    `(3)(A) Subject to subparagraph (C), in the case of a person described in subparagraph (B), the Secretary may, at any time and with the consent of the person, modify an agreement described in paragraph (1)(F) submitted by the person for the purpose of reducing or eliminating the troop program unit service obligation specified in the agreement and to establish, in lieu of that obligation, an active duty service obligation.

    `(B) Subparagraph (A) applies with respect to the following persons:

      `(i) A cadet under this section at a military junior college.

      `(ii) A cadet or former cadet under this section who is selected under section 2114 of this title to be a medical student at the Uniformed Services University of the Health Sciences.

      `(iii) A cadet or former cadet under this section who signs an agreement under section 2122 of this title for participation in the Armed Forces Health Professions Scholarship and Financial Assistance program.

    `(C) The modification of an agreement described in paragraph (1)(F) may be made only if the Secretary determines that it is in the best interests of the United States to do so.'.

SEC. 523. REPEAL OF ANNUAL LIMIT ON NUMBER OF ROTC SCHOLARSHIPS UNDER ARMY RESERVE AND ARMY NATIONAL GUARD FINANCIAL ASSISTANCE PROGRAM.

    Section 2107a(h) of title 10, United States Code, is amended by striking `not more than 416 cadets each year under this section, to include' and inserting `each year under this section'.

SEC. 524. TREATMENT OF PRIOR ACTIVE SERVICE OF MEMBERS IN UNIFORMED MEDICAL ACCESSION PROGRAMS.

    (a) Medical Students of USUHS-

      (1) TREATMENT OF STUDENTS WITH PRIOR ACTIVE SERVICE- Section 2114 of title 10, United States Code, is amended--

        (A) by redesignating subsections (c) through (h) as subsections (d) through (i), respectively; and

        (B) in subsection (b)--

          (i) by inserting `(1)' after `(b)'; and

          (ii) by inserting after the second sentence the following new paragraph:

    `(2) If a member of the uniformed services selected to be a student has prior active service in a pay grade and with years of service credited for pay that would entitle the member, if the member remained in the former grade, to a rate of basic pay in excess of the rate of basic pay for regular officers in the grade of second lieutenant or ensign, the member shall be paid basic pay based on the former grade and years of service credited for pay. The amount of such basic pay for the member shall be increased on January 1 of each year by the percentage by which basic pay is increased on average on that date for that year, and the member shall continue to receive basic pay based on the former grade and years of service until the date, whether occurring before or after graduation, on which the basic pay for the member in the member's actual grade and years of service credited for pay exceeds the amount of basic pay to which the member is entitled based on the member's former grade and years of service.'.

      (2) CONFORMING AMENDMENTS- Such section is further amended--

        (A) in subsection (b), by striking `Upon graduation they' and inserting the following:

    `(c) Medical students who graduate'; and

        (B) in subsection (i), as redesignated by paragraph (1), by striking `subsection (b)' and inserting `subsection (c)'.

    (b) Participants in Health Professions Scholarship and Financial Assistance Program- Section 2121(c) of such title is amended--

      (1) by inserting `(1)' after `(c)'; and

      (2) by adding at the end the following new paragraph:

    `(2) If a member of the uniformed services selected to participate in the program as a medical student has prior active service in a pay grade and with years of service credited for pay that would entitle the member, if the member remained in the former grade, to a rate of basic pay in excess of the rate of basic pay for regular officers in the grade of second lieutenant or ensign, the member shall be paid basic pay based on the former grade and years of service credited for pay. The amount of such basic pay for the member shall be increased on January 1 of each year by the percentage by which basic pay is increased on average on that date for that year, and the member shall continue to receive basic pay based on the former grade and years of service until the date, whether occurring before or after the conclusion of such participation, on which the basic pay for the member in the member's actual grade and years of service credited for pay exceeds the amount of basic pay to which the member is entitled based on the member's former grade and years of service.'.

    (c) Officers Detailed as Students at Medical Schools-

      (1) APPOINTMENT AND TREATMENT OF PRIOR ACTIVE SERVICE- Section 2004a of such title is amended--

        (A) by redesignating subsections (e) through (h) as subsections (f) through (i), respectively; and

        (B) by inserting after subsection (d) the following new subsection:

    `(e) Appointment and Treatment of Prior Active Service- (1) A commissioned officer detailed as a student at a medical school under subsection (a) shall be appointed as a regular officer in the grade of second lieutenant or ensign and shall serve on active duty in that grade with full pay and allowances of that grade.

    `(2) If an officer detailed to be a medical student has prior active service in a pay grade and with years of service credited for pay that would entitle the officer, if the officer remained in the former grade, to a rate of basic pay in excess of the rate of basic pay for regular officers in the grade of second lieutenant or ensign, the officer shall be paid basic pay based on the former grade and years of service credited for pay. The amount of such basic pay for the officer shall be increased on January 1 of each year by the percentage by which basic pay is increased on average on that date for that year, and the officer shall continue to receive basic pay based on the former grade and years of service until the date, whether occurring before or after graduation, on which the basic pay for the officer in the officer's actual grade and years of service credited for pay exceeds the amount of basic pay to which the officer is entitled based on the officer's former grade and years of service.'.

      (2) TECHNICAL AMENDMENT- Subsection (c) of such section is amended by striking `subsection (c)' and inserting `subsection (b)'.

SEC. 525. REPEAL OF POST-2007-2008 ACADEMIC YEAR PROHIBITION ON PHASED INCREASE IN CADET STRENGTH LIMIT AT THE UNITED STATES MILITARY ACADEMY.

    Section 4342(j)(1) of title 10, United States Code, is amended by striking the last sentence.

SEC. 526. NATIONAL DEFENSE UNIVERSITY MASTER'S DEGREE PROGRAMS.

    (a) Master of Arts Program Authorized- Section 2163 of title 10, United States Code, is amended--

      (1) in subsection (a), by inserting `or master of arts' after `master of science'; and

      (2) in subsection (b), by adding at the end the following new paragraph:

      `(4) MASTER OF ARTS IN STRATEGIC SECURITY STUDIES- The degree of master of arts in strategic security studies, to graduates of the University who fulfill the requirements of the program at the School for National Security Executive Education.'.

    (b) Clerical Amendments-

      (1) SECTION HEADING- The heading of such section is amended to read as follows:

`Sec. 2163. National Defense University: master's degree programs'.

      (2) TABLE OF CONTENTS- The table of sections at the beginning of chapter 108 of such title is amended by striking the item relating to section 2163 and inserting the following new item:

      `2163. National Defense University: master's degree programs.'.

    (c) Applicability to 2006-2007 Graduates- Paragraph (4) of section 2163(b) of title 10, United States Code, as added by subsection (a) of this section, applies with respect to any person who becomes a graduate of the National Defense University on or after September 6, 2006, and fulfills the requirements of the program referred to in such paragraph (4).

SEC. 527. AUTHORITY OF THE AIR UNIVERSITY TO CONFER DEGREE OF MASTER OF SCIENCE IN FLIGHT TEST ENGINEERING.

    Section 9317(a) of title 10, United States Code, is amended--

      (1) by redesignating paragraph (4) as paragraph (5); and

      (2) by inserting after paragraph (3) the following new paragraph:

      `(4) The degree of master of science in flight test engineering upon graduates of the Air Force Test Pilot School who fulfill the requirements for that degree in a manner consistent with the recommendations of the Department of Education and the principles of the regional accrediting body for the Air University.'.

SEC. 528. ENHANCEMENT OF EDUCATION BENEFITS FOR CERTAIN MEMBERS OF RESERVE COMPONENTS.

    (a) Accelerated Payment of Educational Assistance for Members of the Selected Reserve-

      (1) IN GENERAL- Chapter 1606 of title 10, United States Code, is amended by inserting after section 16131 the following new section:

`Sec. 16131a. Accelerated payment of educational assistance

    `(a) The educational assistance allowance payable under section 16131 of this title with respect to an eligible person described in subsection (b) may, upon the election of such eligible person, be paid on an accelerated basis in accordance with this section.

    `(b) An eligible person described in this subsection is a person entitled to educational assistance under this chapter who is--

      `(1) enrolled in an approved program of education not exceeding two years in duration and not leading to an associate, bachelors, masters, or other degree, subject to subsection (g); and

      `(2) charged tuition and fees for the program of education that, when divided by the number of months (and fractions thereof) in the enrollment period, exceeds the amount equal to 200 percent of the monthly rate of educational assistance allowance otherwise payable with respect to the person under section 16131 of this title.

    `(c)(1) The amount of the accelerated payment of educational assistance payable with respect to an eligible person making an election under subsection (a) for a program of education shall be the lesser of--

      `(A) the amount equal to 60 percent of the established charges for the program of education; or

      `(B) the aggregate amount of educational assistance allowance to which the person remains entitled under this chapter at the time of the payment.

    `(2)(A) In this subsection, except as provided in subparagraph (B), the term `established charges', in the case of a program of education, means the actual charges (as determined pursuant to regulations prescribed by the Secretary of Veterans Affairs) for tuition and fees which similarly circumstanced individuals who are not eligible for benefits under this chapter and who are enrolled in the program of education would be required to pay. Established charges shall be determined on the following basis:

      `(i) In the case of an individual enrolled in a program of education offered on a term, quarter, or semester basis, the tuition and fees charged the individual for the term, quarter, or semester.

      `(ii) In the case of an individual enrolled in a program of education not offered on a term, quarter, or semester basis, the tuition and fees charged the individual for the entire program of education.

    `(B) In this subsection, the term `established charges' does not include any fees or payments attributable to the purchase of a vehicle.

    `(3) The educational institution providing the program of education for which an accelerated payment of educational assistance allowance is elected by an eligible person under subsection (a) shall certify to the Secretary of Veterans Affairs the amount of the established charges for the program of education.

    `(d) An accelerated payment of educational assistance allowance made with respect to an eligible person under this section for a program of education shall be made not later than the last day of the month immediately following the month in which the Secretary of Veterans Affairs receives a certification from the educational institution regarding--

      `(1) the person's enrollment in and pursuit of the program of education; and

      `(2) the amount of the established charges for the program of education.

    `(e)(1) Except as provided in paragraph (2), for each accelerated payment of educational assistance allowance made with respect to an eligible person under this section, the person's entitlement to educational assistance under this chapter shall be charged the number of months (and any fraction thereof) determined by dividing the amount of the accelerated payment by the full-time monthly rate of educational assistance allowance otherwise payable with respect to the person under section 16131 of this title as of the beginning date of the enrollment period for the program of education for which the accelerated payment is made.

    `(2) If the monthly rate of educational assistance allowance otherwise payable with respect to an eligible person under section 16131 of this title increases during the enrollment period of a program of education for which an accelerated payment of educational assistance allowance is made under this section, the charge to the person's entitlement to educational assistance under this chapter shall be determined by prorating the entitlement chargeable, in the manner provided for under paragraph (1), for the periods covered by the initial rate and increased rate, respectively, in accordance with regulations prescribed by the Secretary of Veterans Affairs.

    `(f) The Secretary of Veterans Affairs shall prescribe regulations to carry out this section. The regulations shall include requirements, conditions, and methods for the request, issuance, delivery, certification of receipt and use, and recovery of overpayment of an accelerated payment of educational assistance allowance under this section. The regulations may include such elements of the regulations prescribed under section 3014A of title 38 as the Secretary of Veterans Affairs considers appropriate for purposes of this section.

    `(g) The aggregate amount of educational assistance payable under this section in any fiscal year for enrollments covered by subsection (b)(1) may not exceed $4,000,000.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1606 of such title is amended by inserting after the item relating to section 16131 the following new item:

      `16131a. Accelerated payment of educational assistance.'.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 2008, and shall only apply to initial enrollments in approved programs of education after such date.

    (b) Accelerated Payment of Educational Assistance for Reserve Component Members Supporting Contingency Operations and Other Operations-

      (1) IN GENERAL- Chapter 1607 of title 10, United States Code, is amended by inserting after section 16162 the following new section:

`Sec. 16162a. Accelerated payment of educational assistance

    `(a) Payment on Accelerated Basis- The educational assistance allowance payable under section 16162 of this title with respect to an eligible member described in subsection (b) may, upon the election of such eligible member, be paid on an accelerated basis in accordance with this section.

    `(b) Eligible Members- An eligible member described in this subsection is a member of a reserve component entitled to educational assistance under this chapter who is--

      `(1) enrolled in an approved program of education not exceeding two years in duration and not leading to an associate, bachelors, masters, or other degree, subject to subsection (g); and

      `(2) charged tuition and fees for the program of education that, when divided by the number of months (and fractions thereof) in the enrollment period, exceeds the amount equal to 200 percent of the monthly rate of educational assistance allowance otherwise payable with respect to the member under section 16162 of this title.

    `(c) Amount of Accelerated Payment- (1) The amount of the accelerated payment of educational assistance payable with respect to an eligible member making an election under subsection (a) for a program of education shall be the lesser of--

      `(A) the amount equal to 60 percent of the established charges for the program of education; or

      `(B) the aggregate amount of educational assistance allowance to which the member remains entitled under this chapter at the time of the payment.

    `(2)(A) In this subsection, except as provided in subparagraph (B), the term `established charges', in the case of a program of education, means the actual charges (as determined pursuant to regulations prescribed by the Secretary of Veterans Affairs) for tuition and fees which similarly circumstanced individuals who are not eligible for benefits under this chapter and who are enrolled in the program of education would be required to pay. Established charges shall be determined on the following basis:

      `(i) In the case of an individual enrolled in a program of education offered on a term, quarter, or semester basis, the tuition and fees charged the individual for the term, quarter, or semester.

      `(ii) In the case of an individual enrolled in a program of education not offered on a term, quarter, or semester basis, the tuition and fees charged the individual for the entire program of education.

    `(B) In this subsection, the term `established charges' does not include any fees or payments attributable to the purchase of a vehicle.

    `(3) The educational institution providing the program of education for which an accelerated payment of educational assistance allowance is elected by an eligible member under subsection (a) shall certify to the Secretary of Veterans Affairs the amount of the established charges for the program of education.

    `(d) Time of Payment- An accelerated payment of educational assistance allowance made with respect to an eligible member under this section for a program of education shall be made not later than the last day of the month immediately following the month in which the Secretary of Veterans Affairs receives a certification from the educational institution regarding--

      `(1) the member's enrollment in and pursuit of the program of education; and

      `(2) the amount of the established charges for the program of education.

    `(e) Charge Against Entitlement- (1) Except as provided in paragraph (2), for each accelerated payment of educational assistance allowance made with respect to an eligible member under this section, the member's entitlement to educational assistance under this chapter shall be charged the number of months (and any fraction thereof) determined by dividing the amount of the accelerated payment by the full-time monthly rate of educational assistance allowance otherwise payable with respect to the member under section 16162 of this title as of the beginning date of the enrollment period for the program of education for which the accelerated payment is made.

    `(2) If the monthly rate of educational assistance allowance otherwise payable with respect to an eligible member under section 16162 of this title increases during the enrollment period of a program of education for which an accelerated payment of educational assistance allowance is made under this section, the charge to the member's entitlement to educational assistance under this chapter shall be determined by prorating the entitlement chargeable, in the manner provided for under paragraph (1), for the periods covered by the initial rate and increased rate, respectively, in accordance with regulations prescribed by the Secretary of Veterans Affairs.

    `(f) Regulations- The Secretary of Veterans Affairs shall prescribe regulations to carry out this section. The regulations shall include requirements, conditions, and methods for the request, issuance, delivery, certification of receipt and use, and recovery of overpayment of an accelerated payment of educational assistance allowance under this section. The regulations may include such elements of the regulations prescribed under section 3014A of title 38 as the Secretary of Veterans Affairs considers appropriate for purposes of this section.

    `(g) Limitation- The aggregate amount of educational assistance payable under this section in any fiscal year for enrollments covered by subsection (b)(1) may not exceed $3,000,000.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1607 of such title is amended by inserting after the item relating to section 16162 the following new item:

      `16162a. Accelerated payment of educational assistance.'.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 2008, and shall only apply to initial enrollments in approved programs of education after such date.

    (c) Enhancement of Educational Assistance for Reserve Component Members Supporting Contingency Operations and Other Operations-

      (1) ASSISTANCE FOR THREE YEARS CUMULATIVE SERVICE- Subsection (c)(4)(C) of section 16162 of title 10, United States Code, is amended by striking `for two continuous years or more.' and inserting `for--

        `(i) two continuous years or more; or

        `(ii) an aggregate of three years or more.'.

      (2) CONTRIBUTIONS FOR INCREASED AMOUNT OF EDUCATIONAL ASSISTANCE- Such section is further amended by adding at the end the following new subsection:

    `(f) Contributions for Increased Amount of Educational Assistance- (1)(A) Any individual eligible for educational assistance under this section may contribute amounts for purposes of receiving an increased amount of educational assistance as provided for in paragraph (2).

    `(B) An individual covered by subparagraph (A) may make the contributions authorized by that subparagraph at any time while a member of a reserve component, but not more frequently than monthly.

    `(C) The total amount of the contributions made by an individual under subparagraph (A) may not exceed $600. Such contributions shall be made in multiples of $20.

    `(D) Contributions under this subsection shall be made to the Secretary concerned. Such Secretary shall deposit any amounts received as contributions under this subsection into the Treasury as miscellaneous receipts.

    `(2) Effective as of the first day of the enrollment period following the enrollment period in which an individual makes contributions under paragraph (1), the monthly amount of educational assistance allowance applicable to such individual under this section shall be the monthly rate otherwise provided for under subsection (c) increased by--

      `(A) an amount equal to $5 for each $20 contributed by such individual under paragraph (1) for an approved program of education pursued on a full-time basis; or

      `(B) an appropriately reduced amount based on the amount so contributed as determined under regulations that the Secretary of Veterans Affairs shall prescribe, for an approved program of education pursued on less than a full-time basis.'.

SEC. 529. EXTENSION OF PERIOD OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE FOR CERTAIN MEMBERS OF THE SELECTED RESERVE AFFECTED BY FORCE SHAPING INITIATIVES.

    Section 16133(b)(1)(B) of title 10, United States Code, is amended by inserting `or the period beginning on October 1, 2007, and ending on September 30, 2014,' after `December 31, 2001,'.

SEC. 530. TIME LIMIT FOR USE OF EDUCATIONAL ASSISTANCE BENEFIT FOR CERTAIN MEMBERS OF RESERVE COMPONENTS AND RESUMPTION OF BENEFIT.

    (a) Modification of Time Limit for Use of Benefit-

      (1) MODIFICATION- Section 16164(a) of title 10, United States Code, is amended by striking `this chapter while serving--' and all that follows and inserting `this chapter--

      `(1) while the member is serving--

        `(A) in the Selected Reserve of the Ready Reserve, in the case of a member called or ordered to active service while serving in the Selected Reserve; or

        `(B) in the Ready Reserve, in the case of a member ordered to active duty while serving in the Ready Reserve (other than the Selected Reserve); and

      `(2) in the case of a person who separates from the Selected Reserve of the Ready Reserve after completion of a period of active service described in section 16163 of this title and completion of a service contract under other than dishonorable conditions, during the 10-year period beginning on the date on which the person separates from the Selected Reserve.'.

      (2) CONFORMING AMENDMENT- Paragraph (2) of section 16165(a) of such title is amended to read as follows:

      `(2) when the member separates from the Ready Reserve as provided in section 16164(a)(1) of this title, or upon completion of the period provided for in section 16164(a)(2) of this title, as applicable.'.

    (b) Reclaiming Benefit for Members Reentering Service- Section 16165(b) of such title is amended by striking `of not more than 90 days' after `who incurs a break in service in the Selected Reserve'.

    (c) Effective Date- The amendments made by this section shall take effect as of October 28, 2004, as if included in the enactment of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375), to which such amendments relate.

SEC. 531. SECRETARY OF DEFENSE EVALUATION OF THE ADEQUACY OF THE DEGREE-GRANTING AUTHORITIES OF CERTAIN MILITARY UNIVERSITIES AND EDUCATIONAL INSTITUTIONS.

    (a) Evaluation Required- The Secretary of Defense shall carry out an evaluation of the degree-granting authorities provided by title 10, United States Code, to the academic institutions specified in subsection (b). The evaluation shall assess whether the current process, under which each degree conferred by each institution must have a statutory authorization, remains adequate, appropriate, and responsive enough to meet emerging military service education requirements.

    (b) Specified Institutions- The academic institutions covered by subsection (a) are the following:

      (1) The National Defense University.

      (2) The Army War College and the United States Army Command and General Staff College.

      (3) The United States Naval War College.

      (4) The United States Naval Postgraduate School.

      (5) Air University and the United States Air Force Institute of Technology.

      (6) The Marine Corps University.

    (c) Report- Not later than April 1, 2008, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the evaluation. The report shall include the results of the evaluation and any recommendations for changes to policy or law that the Secretary considers appropriate.

SEC. 532. REPORT ON SUCCESS OF ARMY NATIONAL GUARD AND RESERVE SENIOR RESERVE OFFICERS' TRAINING CORPS FINANCIAL ASSISTANCE PROGRAM.

    (a) Report Required- Not later than 150 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the success of the financial assistance program of the Senior Reserve Officers' Training Corps under section 2107a of title 10, United States Code, in securing the appointment of second lieutenants in the Army Reserve and Army National Guard. The report shall include detailed information on the appointment of cadets under the financial assistance program who are enrolled in an educational institution described in subsection (b) and address the efforts of the Secretary to increase awareness of the availability and advantages of appointment in the Senior Reserve Officers' Training Corps at these institutions and to increase the number of cadets at these institutions.

    (b) Covered Educational Institutions- The educational institutions referred to in subsection (a) are the following:

      (1) An historically Black college or university that is a part B institution, as defined in section 322(2) of the Higher Education Act of 1965 (20 U.S.C. 1061(2)).

      (2) A minority institution, as defined in section 365(3) of that Act (20 U.S.C. 1067k(3)).

      (3) An Hispanic-serving institution, as defined in section 502(a)(5) of that Act (20 U.S.C. 1101a(a)(5)).

SEC. 533. REPORT ON UTILIZATION OF TUITION ASSISTANCE BY MEMBERS OF THE ARMED FORCES.

    (a) Reports Required- Not later than April 1, 2008, the Secretary of each military department shall submit to the congressional defense committees a report on the utilization of tuition assistance by members of the Armed Forces, whether in the regular components of the Armed Forces or the reserve components of the Armed Forces, under the jurisdiction of such military department during fiscal year 2007.

    (b) Elements- The report with respect to a military department under subsection (a) shall include the following:

      (1) Information on the policies of such military department for fiscal year 2007 regarding utilization of, and limits on, tuition assistance by members of the Armed Forces under the jurisdiction of such military department, including an estimate of the number of members of the reserve components of the Armed Forces under the jurisdiction of such military department whose requests for tuition assistance during that fiscal year were unfunded.

      (2) Information on the policies of such military department for fiscal year 2007 regarding funding of tuition assistance for each of the regular components of the Armed Forces and each of the reserve components of the Armed Forces under the jurisdiction of such military department.

SEC. 534. NAVY JUNIOR RESERVE OFFICERS' TRAINING CORPS UNIT FOR SOUTHOLD, MATTITUCK, AND GREENPORT HIGH SCHOOLS.

    For purposes of meeting the requirements of section 2031(b) of title 10, United States Code, the Secretary of the Navy may and, to the extent the schools request, shall treat any two or more of the following schools (all in Southold, Suffolk County, New York) as a single institution:

      (1) Southold High School.

      (2) Mattituck High School.

      (3) Greenport High School.

SEC. 535. REPORT ON TRANSFER OF ADMINISTRATION OF CERTAIN EDUCATIONAL ASSISTANCE PROGRAMS FOR MEMBERS OF THE RESERVE COMPONENTS.

    (a) Report Required- Not later than September 1, 2008, the Secretary of Defense, in cooperation with the Secretary of Veterans Affairs, shall submit to the congressional defense committees and the Committees on Veterans Affairs of the Senate and House of Representatives a report on the feasibility and merits of transferring the administration of the educational assistance programs for members of the reserve components contained in chapters 1606 and 1607 of title 10, United States Code, from the Department of Defense to the Department of Veterans Affairs.

    (b) Elements of Report- The report shall specifically address the following:

      (1) A discussion of the history and purpose of the educational assistance benefits under chapters 1606 and 1607 of title 10, United States Code, and the data most recently available, as of the date of the enactment of this Act, relating to the cost of providing such benefits and the projected costs of providing such benefits over the ten-year period beginning on the such date.

      (2) The effect of a transfer of administrative jurisdiction on the delivery of educational assistance benefits to members of the reserve components.

      (3) The effect of a transfer of administrative jurisdiction on Department of Defense efforts relating to recruiting, retention, and compensation, including bonuses, special pays, and incentive pays.

      (4) The extent to which educational assistance benefits influence the decision of a person to join a reserve component.

      (5) The extent to which the educational assistance benefits available under chapter 1606 of title 10, United States Code, affect retention rates, including statistics showing how many members remain in the reserve components in order to continue to receive education benefits under such chapter.

      (6) The extent to which the educational assistance benefits available under chapter 1607 of title 10, United States Code, affect retention rates, including statistics showing how many members remain in the reserve components in order to continue to receive education benefits under such chapter.

      (7) The practical and budgetary issues involved in a transfer of administrative jurisdiction, including a discussion of the cost of equating the educational assistance benefits for members of the active and reserve components.

      (8) Any recommendations of the Secretary for legislation to enhance or improve the delivery of educational assistance benefits for members of the reserve components.

      (9) The feasibility and likely effects of transferring the administration of the educational assistance programs for members of the reserve components contained in chapters 1606 and 1607 of title 10, United States Code, from the Department of Defense to the Department of Veterans Affairs through the recodification of such chapters in title 38, United States Code, as proposed in section 525 of H.R. 1585 of the 110th Congress, as passed by the House of Representatives, together with any recommendations of the Secretary for improving that section.

      (10) A discussion of the effects and impact of the amendments to chapter 1607 of title 10, United States Code, made by section 530 of this Act, relating to the extension of the time limit for the use of educational assistance benefits under that chapter.

    (c) Reviews of Report- Before submission of the report to Congress, the Secretary of Defense shall secure the review of the report by the Defense Business Board, in cooperation with the Reserve Forces Policy Board. The Secretary of Veterans Affairs shall secure the review of the report by the Veterans Affairs Advisory Committee on Education. The results of such reviews shall be included as an appendix to the report.

    (d) Comptroller General Review- Not later than November 1, 2008, the Comptroller General shall submit to the congressional committees referred to in subsection (a) an assessment of the report, including a review of the costs inherent in the transfer of administrative jurisdiction and the recruiting and retention data and other assumptions used by the Secretary of Defense in preparing the report. As part of the assessment, the Comptroller General shall solicit responses from the Secretary of Defense and the Secretary of Veterans Affairs.

Subtitle D--Military Justice and Legal Assistance Matters

SEC. 541. AUTHORITY TO DESIGNATE CIVILIAN EMPLOYEES OF THE FEDERAL GOVERNMENT AND DEPENDENTS OF DECEASED MEMBERS AS ELIGIBLE FOR LEGAL ASSISTANCE FROM DEPARTMENT OF DEFENSE LEGAL STAFF RESOURCES.

    Section 1044(a) of title 10, United States Code, is amended by adding at the end the following new paragraphs:

      `(6) Survivors of a deceased member or former member described in paragraphs (1), (2), (3), and (4) who were dependents of the member or former member at the time of the death of the member or former member, except that the eligibility of such survivors shall be determined pursuant to regulations prescribed by the Secretary concerned.

      `(7) Civilian employees of the Federal Government serving in locations where legal assistance from non-military legal assistance providers is not reasonably available, except that the eligibility of civilian employees shall be determined pursuant to regulations prescribed by the Secretary concerned.'.

SEC. 542. AUTHORITY OF JUDGES OF THE UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES TO ADMINISTER OATHS.

    Section 936 of title 10, United States Code (article 136 of the Uniform Code of Military Justice), is amended by adding at the end the following new subsection:

    `(c) The judges of the United States Court of Appeals for the Armed Forces may administer the oaths authorized by subsections (a) and (b).'.

SEC. 543. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF THE JUDGE ADVOCATE GENERALS' CORPS.

    (a) Department of the Army-

      (1) GRADE OF JUDGE ADVOCATE GENERAL- Subsection (a) of section 3037 of title 10, United States Code, is amended by striking the third sentence and inserting the following new sentence: `The Judge Advocate General, while so serving, has the grade of lieutenant general.'.

      (2) REDESIGNATION OF ASSISTANT JUDGE ADVOCATE GENERAL AS DEPUTY JUDGE ADVOCATE GENERAL- Such section is further amended--

        (A) in subsection (a), by striking `Assistant Judge Advocate General' each place it appears and inserting `Deputy Judge Advocate General'; and

        (B) in subsection (d), by striking `Assistant Judge Advocate General' and inserting `Deputy Judge Advocate General'.

      (3) CLERICAL AMENDMENTS- (A) The heading of such section is amended to read as follows:

`Sec. 3037. Judge Advocate General, Deputy Judge Advocate General, and general officers of Judge Advocate General's Corps: appointment; duties'.

      (B) The table of sections at the beginning of chapter 305 of such title is amended by striking the item relating to section 3037 and inserting the following new item:

      `3037. Judge Advocate General, Deputy Judge Advocate General, and general officers of Judge Advocate General's Corps: appointment; duties.'.

    (b) Grade of Judge Advocate General of the Navy- Section 5148(b) of such title is amended by striking the last sentence and inserting the following new sentence: `The Judge Advocate General, while so serving, has the grade of vice admiral or lieutenant general, as appropriate.'.

    (c) Grade of Judge Advocate General of the Air Force- Section 8037(a) of such title is amended by striking the last sentence and inserting the following new sentence: `The Judge Advocate General, while so serving, has the grade of lieutenant general.'.

    (d) Increase in Number of Officers Serving in Grades Above Major General and Rear Admiral- Section 525(b) of such title is amended in paragraphs (1) and (2)(A) by striking `15.7 percent' each place it appears and inserting `16.3 percent'.

    (e) Legal Counsel to Chairman of the Joint Chiefs of Staff-

      (1) IN GENERAL- Chapter 5 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 156. Legal Counsel to the Chairman of the Joint Chiefs of Staff

    `(a) In General- There is a Legal Counsel to the Chairman of the Joint Chiefs of Staff.

    `(b) Selection for Appointment- Under regulations prescribed by the Secretary of Defense, the officer selected for appointment to serve as Legal Counsel to the Chairman of the Joint Chiefs of Staff shall be recommended by a board of officers convened by the Secretary of Defense that, insofar as practicable, is subject to the procedures applicable to selection boards convened under chapter 36 of this title.

    `(c) Grade- An officer appointed to serve as Legal Counsel to the Chairman of the Joint Chiefs of Staff shall, while so serving, hold the grade of brigadier general or rear admiral (lower half).

    `(d) Duties- The Legal Counsel of the Chairman of the Joint Chiefs of Staff shall perform such legal duties in support of the responsibilities of the Chairman of the Joint Chiefs of Staff as the Chairman may prescribe.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 5 of such title is amended by adding at the end the following new item:

      `156. Legal Counsel to the Chairman of the Joint Chiefs of Staff'.

    (f) Strategic Plan to Link General and Flag Officer Numbers, Assignments, and Development to the Missions and Requirements of the Department of Defense-

      (1) STRATEGIC PLAN REQUIRED- The Secretary of Defense shall develop a strategic plan linking the missions and requirements of the Department of Defense for general and flag officers to the statutory limits on the numbers of general and flag officers, and current assignment, promotion, and joint officer development policies for general and flag officers.

      (2) ADVICE OF CHAIRMAN OF JOINT CHIEFS OF STAFF- The Secretary shall develop the strategic plan required under paragraph (1) with the advice of the Chairman of the Joint Chiefs of Staff.

      (3) MATTERS TO BE INCLUDED- The strategic plan required under paragraph (1) shall include the following:

        (A) A description of the process for identification of the present and emerging requirements for general and flag officers and recommendations for meeting these requirements.

        (B) Identification of the numbers of general and flag officers by service, grade, and qualifications currently available compared with the numbers needed to meet existing statutory requirements in support of the overall missions of the Department of Defense.

        (C) An assessment of the problems or issues (and proposed solutions for any such problems or issues) arising from existing numerical limitations on the number and grade distribution of active and reserve component general and flag officers under sections 525, 526, and 12004 of title 10, United States Code.

        (D) A discussion of how wartime requirements for additional general or flag officers have been addressed in support of Operation Enduring Freedom and Operation Iraqi Freedom, including the usage of wartime or national emergency authorities.

        (E) An assessment of any problems or issues (and proposed solutions for any such problems or issues) arising from existing statutory provisions regarding general and flag officer assignments and grade requirements and the need, if any, for revision of provisions in title 10, United States Code, specific to individual general and flag officer positions along with recommendations to mitigate the need for routine legislative intervention as positions change to support organizational demands.

        (F) An assessment of the use currently being made of reserve component flag and general officers and discussion of barriers to the qualification, selection, and assignment of National Guard and Reserve officers for the broadest possible range of positions of importance and responsibility.

      (4) DEADLINE FOR SUBMISSION- The Secretary shall submit the plan required under paragraph (1) to the Committees on Armed Services of the Senate and the House of Representatives not later than March 1, 2009.

SEC. 544. PROHIBITION AGAINST MEMBERS OF THE ARMED FORCES PARTICIPATING IN CRIMINAL STREET GANGS.

    The Secretary of Defense shall prescribe regulations to prohibit the active participation by members of the Armed Forces in a criminal street gang.

Subtitle E--Military Leave

SEC. 551. TEMPORARY ENHANCEMENT OF CARRYOVER OF ACCUMULATED LEAVE FOR MEMBERS OF THE ARMED FORCES.

    (a) Temporary Increase in Accumulated Leave Carryover Amount- Section 701 of title 10, United States Code, is amended--

      (1) in subsection (b), by striking `subsection (f) and subsection (g)' and inserting `subsections (d), (f), and (g)'; and

      (2) by inserting after subsection (c) the following new subsection:

    `(d) Notwithstanding subsection (b), during the period beginning on October 1, 2008, through December 31, 2010, a member may accumulate up to 75 days of leave.'.

    (b) Conforming Amendments Related to High Deployment Members- Subsection (f) of such section is amended--

      (1) in paragraph (1)(A), by striking `any accumulated leave in excess of 60 days at the end of the fiscal year' and inserting `at the end of the fiscal year any accumulated leave in excess of the number of days of leave authorized to be accumulated under subsection (b) or (d)';

      (2) in paragraph (1)(C)--

        (A) by striking `60 days' and inserting `the days of leave authorized to be accumulated under subsection (b) or (d) that are'; and

        (B) by inserting `(or fourth fiscal year, if accumulated while subsection (d) is in effect)' after `third fiscal year'; and

      (3) in paragraph (2), by striking `except for this paragraph--' and all that follows through the end of the paragraph and inserting `except for this paragraph, would lose at the end of that fiscal year any accumulated leave in excess of the number of days of leave authorized to be accumulated under subsection (b) or (d), shall be permitted to retain such leave until the end of the second fiscal year after the fiscal year in which such service on active duty is terminated.'.

    (c) Conforming Amendment Related to Members in Missing Status- Subsection (g) of such section is amended by striking `60-day limitation in subsection (b) and the 90-day limitation in subsection (f)' and inserting `limitations in subsections (b), (d), and (f)'.

    (d) Pay- Section 501(b) of title 37, United States Code, is amended by adding at the end the following new paragraph:

    `(6) An enlisted member of the armed forces who would lose accumulated leave in excess of 120 days of leave under section 701(f)(1) of title 10 may elect to be paid in cash or by a check on the Treasurer of the United States for any leave in excess so accumulated for up to 30 days of such leave. A member may make an election under this paragraph only once.'.

SEC. 552. ENHANCEMENT OF REST AND RECUPERATION LEAVE.

    Section 705(b)(2) of title 10, United States Code, is amended by inserting `for members whose qualifying tour of duty is 12 months or less, or for not more than 20 days for members whose qualifying tour of duty is longer than 12 months,' after `for not more than 15 days'.

Subtitle F--Decorations and Awards

SEC. 561. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO LESLIE H. SABO, JR., FOR ACTS OF VALOR DURING THE VIETNAM WAR.

    (a) Authorization- Notwithstanding the time limitations specified in section 3744 of title 10, United States Code, or any other time limitation with respect to the awarding of certain medals to persons who served in the Armed Forces, the President is authorized and requested to award the Medal of Honor under section 3741 of such title to Leslie H. Sabo, Jr., for the acts of valor during the Vietnam War described in subsection (b).

    (b) Acts of Valor Described- The acts of valor referred to in subsection (a) are the actions of Leslie H. Sabo, Jr., on May 10, 1970, as a member of the United States Army serving in the grade of Specialist Four in the Republic of Vietnam with Company B of the 3d Battalion, 506th Infantry Regiment, 101st Airborne Division.

SEC. 562. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO HENRY SVEHLA FOR ACTS OF VALOR DURING THE KOREAN WAR.

    (a) Authorization- Notwithstanding the time limitations specified in section 3744 of title 10, United States Code, or any other time limitation with respect to the awarding of certain medals to persons who served in the Armed Forces, the President is authorized and requested to award the Medal of Honor under section 3741 of such title to Henry Svehla for the acts of valor described in subsection (b).

    (b) Acts of Valor Described- The acts of valor referred to in subsection (a) are the actions of Henry Svehla on June 12, 1952, as a member of the United States Army serving in the grade of Private First Class in Korea with Company F of the 32d Infantry Regiment, 7th Infantry Division.

SEC. 563. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO WOODROW W. KEEBLE FOR ACTS OF VALOR DURING THE KOREAN WAR.

    (a) Waiver of Time Limitations- Notwithstanding the time limitations specified in section 3744 of title 10, United States Code, or any other time limitation with respect to the awarding of certain medals to persons who served in the Armed Forces, the President is authorized and requested to award the Medal of Honor under section 3741 of such title to Woodrow W. Keeble for the acts of valor described in subsection (b).

    (b) Acts of Valor Described- The acts of valor referred to in subsection (a) are the actions of Woodrow W. Keeble of the United States Army as an acting platoon leader on October 20, 1950, during the Korean War.

SEC. 564. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO PRIVATE PHILIP G. SHADRACH FOR ACTS OF VALOR AS ONE OF ANDREWS' RAIDERS DURING THE CIVIL WAR.

    (a) Authorization- Notwithstanding the time limitations specified in section 3744 of title 10, United States Code, or any other time limitation with respect to the awarding of certain medals to persons who served in the Armed Forces, the President is authorized and requested to award the Medal of Honor under section 3741 of such title posthumously to Private Philip G. Shadrach of Company K, 2nd Ohio Volunteer Infantry Regiment for the acts of valor described in subsection (b).

    (b) Acts of Valor Described- The acts of valor referred to in subsection (a) are the actions of Philip G. Shadrach as one of Andrews' Raiders during the Civil War on April 12, 1862.

SEC. 565. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO PRIVATE GEORGE D. WILSON FOR ACTS OF VALOR AS ONE OF ANDREWS' RAIDERS DURING THE CIVIL WAR.

    (a) Authorization- The President is authorized and requested to award the Medal of Honor under section 3741 of title 10, United States Code, posthumously to Private George D. Wilson of Company B, 2nd Ohio Volunteer Infantry Regiment for the acts of valor described in subsection (b).

    (b) Acts of Valor Described- The acts of valor referred to in subsection (a) are the actions of George D. Wilson as one of Andrews' Raiders during the Civil War on April 12, 1862.

Subtitle G--Impact Aid and Defense Dependents Education System

SEC. 571. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Assistance to Schools With Significant Numbers of Military Dependent Students- Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities, $30,000,000 shall be available only for the purpose of providing assistance to local educational agencies under subsection (a) of section 572 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).

    (b) Assistance to Schools With Enrollment Changes Due to Base Closures, Force Structure Changes, or Force Relocations- Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities, $10,000,000 shall be available only for the purpose of providing assistance to local educational agencies under subsection (b) of such section 572.

    (c) Local Educational Agency Defined- In this section, the term `local educational agency' has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 572. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities, $5,000,000 shall be available for payments under section 363 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 U.S.C. 7703a).

SEC. 573. INCLUSION OF DEPENDENTS OF NON-DEPARTMENT OF DEFENSE EMPLOYEES EMPLOYED ON FEDERAL PROPERTY IN PLAN RELATING TO FORCE STRUCTURE CHANGES, RELOCATION OF MILITARY UNITS, OR BASE CLOSURES AND REALIGNMENTS.

    Section 574(e)(3) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2227; 20 U.S.C. 7703b note) is amended--

      (1) in subparagraph (A), by striking `and' at the end;

      (2) in subparagraph (B), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new subparagraph:

        `(C) elementary and secondary school students who are dependents of personnel who are not members of the Armed Forces or civilian employees of the Department of Defense but who are employed on Federal property.'.

SEC. 574. PAYMENT OF PRIVATE BOARDING SCHOOL TUITION FOR MILITARY DEPENDENTS IN OVERSEAS AREAS NOT SERVED BY DEFENSE DEPENDENTS' EDUCATION SYSTEM SCHOOLS.

    Section 1407(b)(1) of the Defense Dependents' Education Act of 1978 (20 U.S.C. 926(b)(1)) is amended by inserting after the first sentence the following new sentence: `Schools to which tuition may be paid under this subsection may include private boarding schools in the United States.'.

Subtitle H--Military Families

SEC. 581. DEPARTMENT OF DEFENSE MILITARY FAMILY READINESS COUNCIL AND POLICY AND PLANS FOR MILITARY FAMILY READINESS.

    (a) In General- Subchapter I of chapter 88 of title 10, United States Code, is amended by inserting after section 1781 the following new sections:

`Sec. 1781a. Department of Defense Military Family Readiness Council

    `(a) In General- There is in the Department of Defense the Department of Defense Military Family Readiness Council (in this section referred to as the `Council').

    `(b) Members- (1) The Council shall consist of the following members:

      `(A) The Under Secretary of Defense for Personnel and Readiness, who shall serve as chair of the Council.

      `(B) One representative of each of the Army, Navy, Marine Corps, and Air Force, who shall be appointed by the Secretary of Defense.

      `(C) Three individuals appointed by the Secretary of Defense from among representatives of military family organizations, including military family organizations of families of members of the regular components and of families of members of the reserve components.

      `(D) In addition to the representatives appointed under subparagraph (B), the senior enlisted advisors of the Army, Navy, Marine Corps, and Air Force, or the spouse of a senior enlisted member from each of the Army, Navy, Marine Corps, and Air Force.

    `(2) The term on the Council of the members appointed under paragraph (1)(C) shall be three years.

    `(c) Meetings- The Council shall meet not less often than twice each year.

    `(d) Duties- The duties of the Council shall include the following:

      `(1) To review and make recommendations to the Secretary of Defense regarding the policy and plans required under section 1781b of this title.

      `(2) To monitor requirements for the support of military family readiness by the Department of Defense.

      `(3) To evaluate and assess the effectiveness of the military family readiness programs and activities of the Department of Defense.

    `(e) Annual Reports- (1) Not later than February 1 each year, the Council shall submit to the Secretary of Defense and the congressional defense committees a report on military family readiness.

    `(2) Each report under this subsection shall include the following:

      `(A) An assessment of the adequacy and effectiveness of the military family readiness programs and activities of the Department of Defense during the preceding fiscal year in meeting the needs and requirements of military families.

      `(B) Recommendations on actions to be taken to improve the capability of the military family readiness programs and activities of the Department of Defense to meet the needs and requirements of military families, including actions relating to the allocation of funding and other resources to and among such programs and activities.

`Sec. 1781b. Department of Defense policy and plans for military family readiness

    `(a) Policy and Plans Required- The Secretary of Defense shall develop a policy and plans for the Department of Defense for the support of military family readiness.

    `(b) Purposes- The purposes of the policy and plans required under subsection (a) are as follows:

      `(1) To ensure that the military family readiness programs and activities of the Department of Defense are comprehensive, effective, and properly supported.

      `(2) To ensure that support is continuously available to military families in peacetime and in war, as well as during periods of force structure change and relocation of military units.

      `(3) To ensure that the military family readiness programs and activities of the Department of Defense are available to all military families, including military families of members of the regular components and military families of members of the reserve components.

      `(4) To make military family readiness an explicit element of applicable Department of Defense plans, programs, and budgeting activities, and that achievement of military family readiness is expressed through Department-wide goals that are identifiable and measurable.

      `(5) To ensure that the military family readiness programs and activities of the Department of Defense undergo continuous evaluation in order to ensure that resources are allocated and expended for such programs and activities to achieve Department-wide family readiness goals.

    `(c) Elements of Policy- The policy required under subsection (a) shall include the following elements:

      `(1) A list of military family readiness programs and activities.

      `(2) Department of Defense-wide goals for military family support, including joint programs, both for military families of members of the regular components and military families of members of the reserve components.

      `(3) Policies on access to military family support programs and activities based on military family populations served and geographical location.

      `(4) Metrics to measure the performance and effectiveness of the military family readiness programs and activities of the Department of Defense.

      `(5) A summary, by fiscal year, of the allocation of funds (including appropriated funds and nonappropriated funds) for major categories of military family readiness programs and activities of the Department of Defense, set forth for each of the military departments and for the Office of the Secretary of Defense.

    `(d) Annual Report- Not later than March 1, 2008, and each year thereafter, the Secretary of Defense shall submit to the congressional defense committees a report on the plans required under subsection (a) for the five-fiscal year period beginning with the fiscal year in which the report is submitted. Each report shall include the plans covered by the report and an assessment of the discharge by the Department of Defense of the previous plans submitted under this section.'.

    (b) Report on Military Family Readiness Policy- Not later than February 1, 2009, the Secretary of Defense shall submit to the congressional defense committees a report setting forth the policy developed under section 1781b of title 10, United States Code, as added by subsection (a).

    (c) Surveys of Military Families- Section 1782 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(d) Survey Required for Fiscal Year 2010- Notwithstanding subsection (a), during fiscal year 2010, the Secretary of Defense shall conduct a survey otherwise authorized under such subsection. Thereafter, additional surveys may be conducted not less often than once every three fiscal years.'.

    (d) Clerical Amendment- The table of sections at the beginning of subchapter I of chapter 88 of such title is amended by inserting after the item relating to section 1781 the following new items:

      `1781a. Department of Defense Military Family Readiness Council.

      `1781b. Department of Defense policy and plans for military family readiness.'.

SEC. 582. YELLOW RIBBON REINTEGRATION PROGRAM.

    (a) Establishment of Program- The Secretary of Defense shall establish a national combat veteran reintegration program to provide National Guard and Reserve members and their families with sufficient information, services, referral, and proactive outreach opportunities throughout the entire deployment cycle. This program shall be known as the Yellow Ribbon Reintegration Program.

    (b) Purpose of Program; Deployment Cycle- The Yellow Ribbon Reintegration Program shall consist of informational events and activities for members of the reserve components of the Armed Forces, their families, and community members to facilitate access to services supporting their health and well-being through the 4 phases of the deployment cycle:

      (1) Pre-Deployment.

      (2) Deployment.

      (3) Demobilization.

      (4) Post-Deployment-Reconstitution.

    (c) Executive Agent- The Secretary shall designate the Under Secretary of Defense for Personnel and Readiness as the Department of Defense executive agent for the Yellow Ribbon Reintegration Program.

    (d) Office for Reintegration Programs-

      (1) ESTABLISHMENT- The Under Secretary of Defense for Personnel and Readiness shall establish the Office for Reintegration Programs within the Office of the Secretary of Defense. The office shall administer all reintegration programs in coordination with State National Guard organizations. The office shall be responsible for coordination with existing National Guard and Reserve family and support programs. The Directors of the Army National Guard and Air National Guard and the Chiefs of the Army Reserve, Marine Corps Reserve, Navy Reserve, and Air Force Reserve may appoint liaison officers to coordinate with the permanent office staff. The office may also enter into partnerships with other public entities, including the Department of Health and Human Services, Substance Abuse and the Mental Health Services Administration, for access to necessary substance abuse and mental health treatment services from local State-licensed service providers.

      (2) CENTER FOR EXCELLENCE IN REINTEGRATION- The Office for Reintegration Programs shall establish a Center for Excellence in Reintegration within the office. The Center shall collect and analyze `lessons learned' and suggestions from State National Guard and Reserve organizations with existing or developing reintegration programs. The Center shall also assist in developing training aids and briefing materials and training representatives from State National Guard and Reserve organizations.

    (e) Advisory Board-

      (1) APPOINTMENT- The Secretary of Defense shall appoint an advisory board to analyze the Yellow Ribbon Reintegration Program and report on areas of success and areas for necessary improvements. The advisory board shall include the Director of the Army National Guard, the Director of the Air National Guard, Chiefs of the Army Reserve, Marine Corps Reserve, Navy Reserve, and Air Force Reserve, the Assistant Secretary of Defense for Reserve Affairs, an Adjutant General on a rotational basis as determined by the Chief of the National Guard Bureau, and any other Department of Defense, Federal Government agency, or outside organization as determined by the Secretary of Defense. The members of the advisory board may designate representatives in their stead.

      (2) SCHEDULE- The advisory board shall meet on a schedule determined by the Secretary of Defense.

      (3) INITIAL REPORTING REQUIREMENT- The advisory board shall issue internal reports as necessary and shall submit an initial report to the Committees on Armed Services of the Senate and House of Representatives not later than 180 days after the end of the 1-year period beginning on the date of the establishment of the Office for Reintegration Programs. The report shall contain--

        (A) an evaluation of the implementation of the Yellow Ribbon Reintegration Program by State National Guard and Reserve organizations;

        (B) an assessment of any unmet resource requirements; and

        (C) recommendations regarding closer coordination between the Office of Reintegration Programs and State National Guard and Reserve organizations.

      (4) ANNUAL REPORTS- The advisory board shall submit annual reports to the Committees on Armed Services of the Senate and the House of Representatives following the initial report by the first week in March of subsequent years following the initial report.

    (f) State Deployment Cycle Support Teams- The Office for Reintegration Programs may employ personnel to administer the Yellow Ribbon Reintegration Program at the State level. The primary function of team members shall be--

      (1) to implement the reintegration curriculum through the deployment cycle described in subsection (g);

      (2) to obtain necessary service providers; and

      (3) to educate service providers regarding the unique military nature of the reintegration program.

    (g) Operation of Program Through Deployment Cycle-

      (1) IN GENERAL- The Office for Reintegration Programs shall analyze the demographics, placement of State Family Assistance Centers and their resources before a mobilization alert is issued to affected State National Guard and Reserve organizations. The Office of Reintegration Programs shall consult with affected State National Guard and Reserve organizations following the issuance of a mobilization alert and implement the reintegration events in accordance with the Reintegration Program phase model.

      (2) PRE-DEPLOYMENT PHASE- The Pre-Deployment Phase shall constitute the time from first notification of mobilization until deployment of the mobilized National Guard or Reserve unit. Events and activities shall focus on providing education and ensuring the readiness of members of the unit, their families, and affected communities for the rigors of a combat deployment.

      (3) DEPLOYMENT PHASE- The Deployment Phase shall constitute the period from deployment of the mobilized National Guard or Reserve unit until the unit arrives at a demobilization station inside the continental United States. Events and services provided shall focus on the challenges and stress associated with separation and having a member in a combat zone. Information sessions shall utilize State National Guard and Reserve resources in coordination with the Employer Support of Guard and Reserve Office, Transition Assistance Advisors, and the State Family Programs Director.

      (4) DEMOBILIZATION PHASE-

        (A) IN GENERAL- The Demobilization Phase shall constitute the period from arrival of the National Guard or Reserve unit at the demobilization station until its departure for home station.

        (B) INITIAL REINTEGRATION ACTIVITY- The purpose of this reintegration program is to educate members about the resources that are available to them and to connect members to service providers who can assist them in overcoming the challenges of reintegration.

      (5) POST-DEPLOYMENT-RECONSTITUTION PHASE-

        (A) IN GENERAL- The Post-Deployment-Reconstitution Phase shall constitute the period from arrival at home station until 180 days following demobilization. Activities and services provided shall focus on reconnecting members with their families and communities and providing resources and information necessary for successful reintegration. Reintegration events shall begin with elements of the Initial Reintegration Activity program that were not completed during the Demobilization Phase.

        (B) 30-day, 60-DAY, AND 90-DAY REINTEGRATION ACTIVITIES- The State National Guard and Reserve organizations shall hold reintegration activities at the 30-day, 60-day, and 90-day interval following demobilization. These activities shall focus on reconnecting members and their families with the service providers from the Initial Reintegration Activity to ensure that members and their families understand what benefits they are entitled to and what resources are available to help them overcome the challenges of reintegration. The Reintegration Activities shall also provide a forum for members and their families to address negative behaviors related to combat stress and transition.

        (C) MEMBER PAY- Members shall receive appropriate pay for days spent attending the Reintegration Activities at the 30-day, 60-day, and 90-day intervals.

    (h) Outreach Services- As part of the Yellow Ribbon Reintegration Program, the Office for Reintegration Programs may develop programs of outreach to members of the Armed Forces and their family members to educate such members and their family members about the assistance and services available to them under the Yellow Ribbon Reintegration Program. Such assistance and services may include the following:

      (1) Marriage counseling.

      (2) Services for children.

      (3) Suicide prevention.

      (4) Substance abuse awareness and treatment.

      (5) Mental health awareness and treatment.

      (6) Financial counseling.

      (7) Anger management counseling.

      (8) Domestic violence awareness and prevention.

      (9) Employment assistance.

      (10) Preparing and updating family care plans.

      (11) Development of strategies for living with a member of the Armed Forces with post-traumatic stress disorder or traumatic brain injury.

      (12) Other services that may be appropriate to address the unique needs of members of the Armed Forces and their families who live in rural or remote areas with respect to family readiness and servicemember reintegration.

      (13) Assisting members of the Armed Forces and their families find and receive assistance with military family readiness and servicemember reintegration, including referral services.

      (14) Development of strategies and programs that recognize the need for long-term follow-up services for reintegrating members of the Armed Forces and their families for extended periods following deployments, including between deployments.

      (15) Assisting members of the Armed Forces and their families in receiving services and assistance from the Department of Veterans Affairs, including referral services.

SEC. 583. STUDY TO ENHANCE AND IMPROVE SUPPORT SERVICES AND PROGRAMS FOR FAMILIES OF MEMBERS OF REGULAR AND RESERVE COMPONENTS UNDERGOING DEPLOYMENT.

    (a) Study Required- The Secretary of Defense shall conduct a study to determine the most effective means to enhance and improve family support programs for families of deployed members of the regular and reserve components of the Armed Forces before, during, and after deployment. The study shall also take into account the potential to utilize non-governmental and local private sector entities and other Federal agencies having expertise in health and well-being of families, including family members who are children, infants, or toddlers.

    (b) Elements- The study shall include at a minimum the following:

      (1) The assessment of the types of information on health care and mental health benefits and services and other community resources that should be made available to members of the regular and reserve components and their families, including--

        (A) crisis services;

        (B) marriage and family counseling; and

        (C) financial counseling.

      (2) An assessment of means to improve support to the parents and caretakers of military dependent children in order to mitigate any adverse effects of the deployment of members on such children, including consideration of the following:

        (A) The need to develop materials for parents and other caretakers of children to assist in responding to the effects of such deployment on children, including extended and multiple deployments and reunion (and the death or injury of members during such deployment), and the role that parents and caretakers can play in addressing or mitigating such effects.

        (B) The potential best practices that are identified which build psychological and emotional resiliency in children in coping with deployment.

        (C) The potential to improve dissemination throughout the Armed Forces of the most effective practices for outreach, training, and building psychological and emotional resiliency in children.

        (D) The effectiveness of training materials for education, mental health, health, and family support professionals who provide services to parents and caretakers of military dependent children.

        (E) The requirement to develop programs and activities to increase awareness throughout the military and civilian communities of the effects of deployment of a military spouse or guardians for such children and their families and to increase collaboration within such communities to address and mitigate such effects.

        (F) The development of training for early child care and education, mental health, health care, and family support professionals to enhance the awareness of such professionals of their role in assisting families in addressing and mitigating the adverse implications of such deployment.

        (G) The conduct of research on best practices for building psychological and emotional resiliency in such children in coping with the deployment of such members.

      (3) An assessment of the effectiveness of family-to-family support programs--

        (A) in providing peer support for families of deployed members of the regular and reserve components;

        (B) in identifying and preventing family problems in such families;

        (C) in reducing adverse outcomes for children of such families, including poor academic performance, behavioral problems, stress, and anxiety;

        (D) in improving family readiness and post-deployment transition for such families; and

        (E) in utilizing spouses of members of the Armed Forces as counselors for families of deployed members, in order to assist such families in coping before, during, and after the deployment, and the best practices for training spouses of members of the Armed Forces to act as counselors for families of deployed members.

      (4) An assessment of the effectiveness of transition assistance programs and policies for families of members during post-deployment transition from a combat zone back to civilian or military communities--

        (A) in identifying signs and symptoms of mental health conditions for both service members and their families; and

        (B) in receiving information and resources available within the local communities to ease transition.

      (5) An assessment of the impact of multiple overseas deployments of members on their families, particularly in the case of members serving in Operation Iraqi Freedom and Operation Enduring Freedom, including financial impacts and emotional impacts.

      (6) An assessment of the most effective timing of providing information and support to the families of deployed members before, during, and after deployment, including at least six months after the date of return of deployed members.

      (7) An assessment of the need for additional long-term research on the effects of multiple wartime deployments on families, including children, and critical areas of focus that should be addressed by such research.

    (c) Report on Results of Study- Not later than 180 days after the date of enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report containing the results of the study conducted under subsection (a).

SEC. 584. PROTECTION OF CHILD CUSTODY ARRANGEMENTS FOR PARENTS WHO ARE MEMBERS OF THE ARMED FORCES DEPLOYED IN SUPPORT OF A CONTINGENCY OPERATION.

    (a) Protection of Servicemembers Against Default Judgments- Section 201(a) of the Servicemembers Civil Relief Act (50 U.S.C. App. 521(a)) is amended by inserting `, including any child custody proceeding,' after `proceeding'.

    (b) Stay of Proceedings When Servicemember Has Notice- Section 202(a) of the Servicemembers Civil Relief Act (50 U.S.C. App. 522(a)) is amended by inserting `, including any child custody proceeding,' after `civil action or proceeding'.

SEC. 585. FAMILY LEAVE IN CONNECTION WITH INJURED MEMBERS OF THE ARMED FORCES.

    (a) Servicemember Family Leave-

      (1) DEFINITIONS- Section 101 of the Family and Medical Leave Act of 1993 (29 U.S.C. 2611) is amended by adding at the end the following new paragraphs:

      `(14) ACTIVE DUTY- The term `active duty' means duty under a call or order to active duty under a provision of law referred to in section 101(a)(13)(B) of title 10, United States Code.

      `(15) CONTINGENCY OPERATION- The term `contingency operation' has the same meaning given such term in section 101(a)(13) of title 10, United States Code.

      `(16) COVERED SERVICEMEMBER- The term `covered servicemember' means a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness.

      `(17) OUTPATIENT STATUS- The term `outpatient status', with respect to a covered servicemember, means the status of a member of the Armed Forces assigned to--

        `(A) a military medical treatment facility as an outpatient; or

        `(B) a unit established for the purpose of providing command and control of members of the Armed Forces receiving medical care as outpatients.

      `(18) NEXT OF KIN- The term `next of kin', used with respect to an individual, means the nearest blood relative of that individual.

      `(19) SERIOUS INJURY OR ILLNESS- The term `serious injury or illness', in the case of a member of the Armed Forces, including a member of the National Guard or Reserves, means an injury or illness incurred by the member in line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties of the member's office, grade, rank, or rating.'.

      (2) ENTITLEMENT TO LEAVE- Section 102(a) of such Act (29 U.S.C. 2612(a)) is amended--

        (A) in paragraph (1), by adding at the end the following new subparagraph:

        `(E) Because of any qualifying exigency (as the Secretary shall, by regulation, determine) arising out of the fact that the spouse, or a son, daughter, or parent of the employee is on active duty (or has been notified of an impending call or order to active duty) in the Armed Forces in support of a contingency operation.'; and

        (B) by adding at the end the following new paragraphs:

      `(3) SERVICEMEMBER FAMILY LEAVE- Subject to section 103, an eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered servicemember shall be entitled to a total of 26 workweeks of leave during a 12-month period to care for the servicemember. The leave described in this paragraph shall only be available during a single 12-month period.

      `(4) COMBINED LEAVE TOTAL- During the single 12-month period described in paragraph (3), an eligible employee shall be entitled to a combined total of 26 workweeks of leave under paragraphs (1) and (3). Nothing in this paragraph shall be construed to limit the availability of leave under paragraph (1) during any other 12-month period.'.

      (3) REQUIREMENTS RELATING TO LEAVE-

        (A) SCHEDULE- Section 102(b) of such Act (29 U.S.C. 2612(b)) is amended--

          (i) in paragraph (1), in the second sentence--

            (I) by striking `section 103(b)(5)' and inserting `subsection (b)(5) or (f) (as appropriate) of section 103'; and

            (II) by inserting `or under subsection (a)(3)' after `subsection (a)(1)';

          (ii) in paragraph (1), by inserting after the second sentence the following new sentence: `Subject to subsection (e)(3) and section 103(f), leave under subsection (a)(1)(E) may be taken intermittently or on a reduced leave schedule.'; and

          (iii) in paragraph (2), by inserting `or under subsection (a)(3)' after `subsection (a)(1)'.

        (B) SUBSTITUTION OF PAID LEAVE- Section 102(d) of such Act (29 U.S.C. 2612(d)) is amended--

          (i) in paragraph (1)--

            (I) by inserting `(or 26 workweeks in the case of leave provided under subsection (a)(3))' after `12 workweeks' the first place it appears; and

            (II) by inserting `(or 26 workweeks, as appropriate)' after `12 workweeks' the second place it appears;

          (ii) in paragraph (2)(A), by striking `or (C)' and inserting `(C), or (E)'; and

          (iii) in paragraph (2)(B), by adding at the end the following: `An eligible employee may elect, or an employer may require the employee, to substitute any of the accrued paid vacation leave, personal leave, family leave, or medical or sick leave of the employee for leave provided under subsection (a)(3) for any part of the 26-week period of such leave under such subsection, except that nothing in this title requires an employer to provide paid sick leave or paid medical leave in any situation in which the employer would not normally provide any such paid leave.'.

        (C) NOTICE- Section 102(e) of such Act (29 U.S.C. 2612(e)) is amended--

          (i) in paragraph (2), by inserting `or under subsection (a)(3)' after `subsection (a)(1)'; and

          (ii) by adding at the end the following new paragraph:

      `(3) NOTICE FOR LEAVE DUE TO ACTIVE DUTY OF FAMILY MEMBER- In any case in which the necessity for leave under subsection (a)(1)(E) is foreseeable, whether because the spouse, or a son, daughter, or parent, of the employee is on active duty, or because of notification of an impending call or order to active duty in support of a contingency operation, the employee shall provide such notice to the employer as is reasonable and practicable.'.

        (D) SPOUSES EMPLOYED BY SAME EMPLOYER- Section 102(f) of such Act (29 U.S.C. 2612(f)) is amended--

          (i) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), and aligning the margins of the subparagraphs with the margins of section 102(e)(2)(A);

          (ii) by striking `In any' and inserting the following:

      `(1) IN GENERAL- In any'; and

          (iii) by adding at the end the following:

      `(2) SERVICEMEMBER FAMILY LEAVE-

        `(A) IN GENERAL- The aggregate number of workweeks of leave to which both that husband and wife may be entitled under subsection (a) may be limited to 26 workweeks during the single 12-month period described in subsection (a)(3) if the leave is--

          `(i) leave under subsection (a)(3); or

          `(ii) a combination of leave under subsection (a)(3) and leave described in paragraph (1).

        `(B) BOTH LIMITATIONS APPLICABLE- If the leave taken by the husband and wife includes leave described in paragraph (1), the limitation in paragraph (1) shall apply to the leave described in paragraph (1).'.

        (E) CERTIFICATION REQUIREMENTS- Section 103 of such Act (29 U.S.C. 2613) is amended--

          (i) in subsection (a)--

            (I) by striking `section 102(a)(1)' and inserting `paragraph (1) or paragraph (3) of section 102(a)'; and

            (II) by inserting `or of the next of kin of an individual in the case of leave taken under such paragraph (3),' after `parent of the employee,'; and

          (ii) by adding at the end the following:

    `(f) Certification Related to Active Duty or Call to Active Duty- An employer may require that a request for leave under section 102(a)(1)(E) be supported by a certification issued at such time and in such manner as the Secretary may by regulation prescribe. If the Secretary issues a regulation requiring such certification, the employee shall provide, in a timely manner, a copy of such certification to the employer.'.

        (F) FAILURE TO RETURN- Section 104(c) of such Act (29 U.S.C. 2614(c)) is amended--

          (i) in paragraph (2)(B)(i), by inserting `or under section 102(a)(3)' before the semicolon; and

          (ii) in paragraph (3)(A)--

            (I) in clause (i), by striking `or' at the end;

            (II) in clause (ii), by striking the period and inserting `; or'; and

            (III) by adding at the end the following:

          `(iii) a certification issued by the health care provider of the servicemember being cared for by the employee, in the case of an employee unable to return to work because of a condition specified in section 102(a)(3).'.

        (G) ENFORCEMENT- Section 107 of such Act (29 U.S.C. 2617) is amended, in subsection (a)(1)(A)(i)(II), by inserting `(or 26 weeks, in a case involving leave under section 102(a)(3))' after `12 weeks'.

        (H) INSTRUCTIONAL EMPLOYEES- Section 108 of such Act (29 U.S.C. 2618) is amended, in subsections (c)(1), (d)(2), and (d)(3), by inserting `or under section 102(a)(3)' after `section 102(a)(1)'.

    (b) Servicemember Family Leave for Civil Service Employees-

      (1) DEFINITIONS- Section 6381 of title 5, United States Code, is amended--

        (A) in paragraph (5), by striking `and' at the end;

        (B) in paragraph (6), by striking the period and inserting a semicolon; and

        (C) by adding at the end the following:

      `(7) the term `active duty' means duty under a call or order to active duty under a provision of law referred to in section 101(a)(13)(B) of title 10;

      `(8) the term `covered servicemember' means a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in an outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness;

      `(9) the term `outpatient status', with respect to a covered servicemember, means the status of a member of the Armed Forces assigned to--

        `(A) a military medical treatment facility as an outpatient; or

        `(B) a unit established for the purpose of providing command and control of members of the Armed Forces receiving medical care as outpatients;

      `(10) the term `next of kin', used with respect to an individual, means the nearest blood relative of that individual; and

      `(11) the term `serious injury or illness', in the case of a member of the Armed Forces, means an injury or illness incurred by the member in line of duty on active duty in the Armed Forces that may render the member medically unfit to perform the duties of the member's office, grade, rank, or rating.'.

      (2) ENTITLEMENT TO LEAVE- Section 6382(a) of such title is amended by adding at the end the following:

    `(3) Subject to section 6383, an employee who is the spouse, son, daughter, parent, or next of kin of a covered servicemember shall be entitled to a total of 26 administrative workweeks of leave during a 12-month period to care for the servicemember. The leave described in this paragraph shall only be available during a single 12-month period.

    `(4) During the single 12-month period described in paragraph (3), an employee shall be entitled to a combined total of 26 administrative workweeks of leave under paragraphs (1) and (3). Nothing in this paragraph shall be construed to limit the availability of leave under paragraph (1) during any other 12-month period.'.

      (3) REQUIREMENTS RELATING TO LEAVE-

        (A) SCHEDULE- Section 6382(b) of such title is amended--

          (i) in paragraph (1), in the second sentence--

            (I) by striking `section 6383(b)(5)' and inserting `subsection (b)(5) or (f) (as appropriate) of section 6383'; and

            (II) by inserting `or under subsection (a)(3)' after `subsection (a)(1)'; and

          (ii) in paragraph (2), by inserting `or under subsection (a)(3)' after `subsection (a)(1)'.

        (B) SUBSTITUTION OF PAID LEAVE- Section 6382(d) of such title is amended by adding at the end the following: `An employee may elect to substitute for leave under subsection (a)(3) any of the employee's accrued or accumulated annual or sick leave under subchapter I for any part of the 26-week period of leave under such subsection.'.

        (C) NOTICE- Section 6382(e) of such title is amended by inserting `or under subsection (a)(3)' after `subsection (a)(1)'.

        (D) CERTIFICATION- Section 6383 of such title is amended by adding at the end the following:

    `(f) An employing agency may require that a request for leave under section 6382(a)(3) be supported by a certification issued at such time and in such manner as the Office of Personnel Management may by regulation prescribe.'.

SEC. 586. FAMILY CARE PLANS AND DEFERMENT OF DEPLOYMENT OF SINGLE PARENT OR DUAL MILITARY COUPLES WITH MINOR DEPENDENTS.

    The Secretary of Defense shall establish appropriate procedures to ensure that an adequate family care plan is in place for a member of the Armed Forces with minor dependents who is a single parent or whose spouse is also a member of the Armed Forces when the member may be deployed in an area for which imminent danger pay is authorized under section 310 of title 37, United States Code. Such procedures should allow the member to request a deferment of deployment due to unforeseen circumstances, and the request for such a deferment should be considered and responded to promptly.

SEC. 587. EDUCATION AND TREATMENT SERVICES FOR MILITARY DEPENDENT CHILDREN WITH AUTISM.

    (a) Assessment of Availability of Services- The Secretary of Defense shall conduct a comprehensive assessment of the availability of Federal, State, and local education and treatment services on and in the vicinity of a covered military installation for children of members of the Armed Forces who are diagnosed with autism. This assessment shall include the following:

      (1) The local availability of adequate educational services for children with autism.

      (2) The local availability of adequate medical services for children with autism.

      (3) The local availability of supplemental services for children with autism.

      (4) The ease of access of children with autism to adequate educational services, such as the length of time on waiting lists.

    (b) Review of Best Practices- In preparing the assessment under subsection (a), the Secretary of Defense shall conduct a review of best practices in the United States in the provision of covered educational services and treatment services for children with autism, including an assessment of Federal and State education and treatment services for children with autism in each State, with an emphasis on locations where eligible members and eligible dependents reside. The Secretary of Defense shall conduct the review in coordination with the Secretary of Education.

    (c) Personnel Management Requirements-

      (1) LIMITED STATIONING OPTIONS- The Secretary of the military department concerned shall ensure that, whenever practicable, eligible members are only assigned to military installations that are identified in the report required by subsection (g)(1).

      (2) STABILIZATION POLICY- The Secretary of the military department concerned shall ensure that, whenever practicable, the families of eligible members residing at a military installation that is identified in such report are permitted to remain at that installation for a period of not less than 4 years.

    (d) Case Managers and Services-

      (1) CASE MANAGERS- The Secretary of the military department concerned shall ensure that eligible members are assigned case managers for both medical services and covered educational services for eligible dependents, which shall be required under the Exceptional Family Member Program pursuant to the policy established by the Secretary.

      (2) INDIVIDUALIZED SERVICES PLAN- The Secretary of the military department concerned shall provide for the voluntary development for eligible dependents of individualized autism services plans for use by case managers, caregivers, and families to ensure continuity of services throughout the active military service of eligible members.

      (3) AUTISM SUPPORT CENTERS- The Secretary of the military department concerned may establish local centers on military installations for the purpose of providing and coordinating autism services for eligible dependents.

      (4) PARTNERSHIPS AND CONTRACTS- The Secretary of the military department concerned is encouraged to enter into partnerships or contracts with other appropriate public and private entities to carry out the responsibilities of this section.

    (e) Demonstration Projects-

      (1) PROJECTS AUTHORIZED- The Secretary of Defense may conduct 1 or more demonstration projects to evaluate improved approaches to the provision of covered educational services and treatment services to eligible dependents for the purpose of evaluating strategies for integrated treatment and case manager services, including early intervention and diagnosis, medical care, parent involvement, special education services, intensive behavioral intervention, and language, communications, and other interventions considered appropriate by the Secretary.

      (2) CASE MANAGERS AND SERVICES PLAN- Each demonstration project shall include the assignment of case managers under paragraph (1) of subsection (d) and utilize the services plans prepared for eligible dependents under paragraph (2) of such subsection.

      (3) SUPERVISORY LEVEL PROVIDERS- The Secretary of Defense may utilize for purposes of the demonstration projects personnel who are professionals with a level (as determined by the Secretary) of post-secondary education that is appropriate for the provision of safe and effective services for autism and who are from an accredited educational facility in the mental health, human development, social work, or education field to act as supervisory level providers of behavioral intervention services for autism. In so acting, such personnel may be authorized--

        (A) to develop and monitor intensive behavior intervention plans for eligible dependents who are participating in the demonstration projects; and

        (B) to provide appropriate training in the provision of approved services to participating eligible dependents.

      (4) SERVICES UNDER CORPORATE SERVICES PROVIDER MODEL- In carrying out the demonstration projects, the Secretary of Defense may utilize a corporate services provider model. Employees of a provider under such a model shall include personnel who implement special educational and behavioral intervention plans for eligible dependents that are developed, reviewed, and maintained by supervisory level providers approved by the Secretary. In authorizing such a model, the Secretary shall establish--

        (A) minimum education, training, and experience criteria required to be met by employees who provide services to eligible dependents;

        (B) requirements for supervisory personnel and supervision, including requirements for supervisor credentials and for the frequency and intensity of supervision; and

        (C) such other requirements as the Secretary considers appropriate to ensure safety and the protection of the eligible dependents who receive services from such employees under the demonstration projects.

      (5) PERIOD- If the Secretary of Defense determines to conduct demonstration projects under this subsection, the Secretary shall commence such demonstration projects not later than 180 days after the date of the enactment of this Act. The demonstration projects shall be conducted for not less than 2 years.

      (6) EVALUATION- The Secretary of Defense shall conduct an evaluation of each demonstration project conducted under this section. The evaluation shall include the following:

        (A) An assessment of the extent to which the activities under the demonstration project contributed to positive outcomes for eligible dependents.

        (B) An assessment of the extent to which the activities under the demonstration project led to improvements in services and continuity of care for eligible dependents.

        (C) An assessment of the extent to which the activities under the demonstration project improved military family readiness and enhanced military retention.

    (f) Relationship to Other Benefits- Nothing in this section precludes the eligibility of members of the Armed Forces and their dependents for extended benefits under section 1079 of title 10, United States Code.

    (g) Reports-

      (1) REPORT IDENTIFYING COVERED MILITARY INSTALLATIONS- As a result of the assessment required by subsection (a), the Secretary of Defense shall submit to the congressional defense committees, not later than December 31, 2008, a report identifying those covered military installations that have covered educational services and facilities available (on the installation or in the vicinity of the installation) for eligible dependents that provide special education and related services consistent with the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).

      (2) REPORTS ON DEMONSTRATION PROJECTS- Not later than 30 months after the commencement of any demonstration project under subsection (e), the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the demonstration project. The report shall include a description of the project, the results of the evaluation under subsection (e)(6) with respect to the project, and a description of plans for the further provision of services for eligible dependents under the project.

    (h) Covered Educational Services Plan- After completing the assessment required by subsection (a) and the report required by subsection (g)(1), the Secretary of Defense shall develop a plan that would ensure that all eligible dependents are able to obtain covered educational services. In the event that eligible members are assigned to military installations that are not identified in the report required by subsection (g)(1), the plan should ensure that such eligible dependents are still able to obtain covered educational services, including by the use of authority granted to the Secretary under section 2164 of title 10, United States Code. The plan shall also include any legislative actions that the Secretary recommends to implement the plan and describe what funding or funding mechanisms may be needed to ensure eligible dependents obtain covered educational services. The Secretary shall submit the plan to the congressional defense committees not later than July 1, 2009.

    (i) Definitions- In this section:

      (1) The term `autism' refers to the Autism Spectrum Disorders, which are developmental disabilities that cause substantial impairments in the areas of social interaction, emotional regulation, communication, and the integration of higher-order cognitive processes and are often characterized by the presence of unusual behaviors and interests. The term includes autistic disorder, pervasive developmental disorder (not otherwise specified), and Asperger's syndrome.

      (2) The term `child' has the meaning given that term in section 1072 of title 10, United States Code.

      (3) The term `covered military installation' means a military installation at which at least 1,000 members of the Armed Forces are assigned who are eligible for an assignment accompanied by dependents.

      (4) The term `eligible member' means a member of the Armed Forces who--

        (A) has a dependent child who is diagnosed with autism; and

        (B) is enrolled in an Exceptional Family Member Program of the Department of Defense.

      (5) The term `eligible dependent' means a child of an eligible member who is diagnosed with autism.

      (6) The term `local educational agency' has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)), except that the term includes publicly financed schools in communities, Department of Defense domestic dependent elementary and secondary schools, and schools of the defense dependents' education system.

      (7) The term `covered educational services' includes behavioral intervention services for autism, such as Applied Behavioral Analysis.

SEC. 588. COMMENDATION OF EFFORTS OF PROJECT COMPASSION IN PAYING TRIBUTE TO MEMBERS OF THE ARMED FORCES WHO HAVE FALLEN IN THE SERVICE OF THE UNITED STATES.

    (a) Commendation- Congress, on the behalf of the people of the United States, commends Kaziah M. Hancock and the 4 other volunteer professional portrait artists of the nonprofit organization known as Project Compassion, as well as the entire Project Compassion organization, for their ongoing efforts to provide, without charge, to the family of each member of the Armed Forces who has died on active duty since September 11, 2001, a museum-quality original oil portrait of the member.

    (b) Sense of Congress- It is the sense of Congress that the people of the United States owe the deepest gratitude to Kaziah M. Hancock and the members of Project Compassion.

Subtitle I--Other Matters

SEC. 590. UNIFORM PERFORMANCE POLICIES FOR MILITARY BANDS AND OTHER MUSICAL UNITS.

    (a) In General-

      (1) CONSOLIDATION OF SEPARATE AUTHORITIES- Chapter 49 of title 10, United States Code, is amended by inserting after section 973 the following new section:

`Sec. 974. Uniform performance policies for military bands and other musical units

    `(a) Restrictions on Competition and Remuneration- Bands, ensembles, choruses, or similar musical units of the armed forces, including individual members of such a unit performing in an official capacity, may not--

      `(1) engage in the performance of music in competition with local civilian musicians; or

      `(2) receive remuneration for official performances.

    `(b) Members Performing in Personal Capacity- A member of a band, ensemble, chorus, or similar musical unit of the armed forces may engage in the performance of music in the member's personal capacity, as an individual or part of a group, for remuneration or otherwise, if the member--

      `(1) does not wear a military uniform for the performance;

      `(2) does not identify himself or herself as a member of the armed forces in connection with the performance; and

      `(3) complies with all other applicable regulations and standards of conduct.

    `(c) Recordings- (1) When authorized pursuant to regulations prescribed by the Secretary of Defense for purposes of this section, bands, ensembles, choruses, or similar musical units of the armed forces may produce recordings for distribution to the public, at a cost not to exceed production and distribution expenses.

    `(2) Amounts received in payment for recordings distributed to the public under this subsection shall be credited to the appropriation or account providing the funds for the production of such recordings. Any amounts so credited shall be merged with amounts in the appropriation or account to which credited, and shall be available for the same purposes, and subject to the same conditions and limitations, as amounts in such appropriation or account.

    `(d) Performance of Music in Competition With Local Civilian Musicians Defined- (1) In this section, the term `performance of music in competition with local civilian musicians' includes performances--

      `(A) that are more than incidental to events that are not supported solely by appropriated funds and are not free to the public; and

      `(B) of background, dinner, dance, or other social music at events, regardless of location, that are not supported solely by appropriated funds.

    `(2) The term does not include performances--

      `(A) at official Federal Government events that are supported solely by appropriated funds;

      `(B) at concerts, parades, and other events that are patriotic events or celebrations of national holidays and are free to the public; or

      `(C) that are incidental, such as short performances of military or patriotic music to open or close events, to events that are not supported solely by appropriated funds, in compliance with applicable rules and regulations.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 973 the following new item:

      `974. Uniform performance policies for military bands and other musical units.'.

    (b) Repeal of Separate Service Authorities-

      (1) REPEAL- Sections 3634, 6223, and 8634 of such title are repealed.

      (2) TABLE OF SECTIONS- (A) The table of sections at the beginning of chapter 349 of such title is amended by striking the item relating to section 3634.

      (B) The table of sections at the beginning of chapter 565 of such title is amended by striking the item relating to section 6223.

      (C) The table of sections at the beginning of chapter 849 of such title is amended by striking the item relating to section 8634.

SEC. 591. TRANSPORTATION OF REMAINS OF DECEASED MEMBERS OF THE ARMED FORCES AND CERTAIN OTHER PERSONS.

    Section 1482(a)(8) of title 10, United States Code, is amended by adding at the end the following new sentence: `When transportation of the remains includes transportation by aircraft under section 562 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 10 U.S.C. 1482 note), the Secretary concerned shall provide, to the maximum extent practicable, for delivery of the remains by air to the commercial, general aviation, or military airport nearest to the place selected by the designee.'.

SEC. 592. EXPANSION OF NUMBER OF ACADEMIES SUPPORTABLE IN ANY STATE UNDER STARBASE PROGRAM.

    Section 2193b(c)(3) of title 10, United States Code, is amended--

      (1) in subparagraph (A), by striking `more than two academies' and inserting `more than four academies'; and

      (2) in subparagraph (B), by striking `in excess of two' both places it appears and inserting `in excess of four'.

SEC. 593. GIFT ACCEPTANCE AUTHORITY.

    (a) Permanent Authority To Accept Gifts on Behalf of the Wounded- Section 2601(b) of title 10, United States Code, is amended by striking paragraph (4).

    (b) Limitation on Solicitation of Gifts- The Secretary of Defense shall prescribe regulations implementing sections 2601 and 2608 of title 10, United States Code, that prohibit the solicitation of any gift under such sections by any employee of the Department of Defense if the nature or circumstances of such solicitation would compromise the integrity or the appearance of integrity of any program of the Department of Defense or of any individual involved in such program.

SEC. 594. CONDUCT BY MEMBERS OF THE ARMED FORCES AND VETERANS OUT OF UNIFORM DURING HOISTING, LOWERING, OR PASSING OF UNITED STATES FLAG.

    Section 9 of title 4, United States Code, is amended by striking `all persons present' and all that follows through the end of the section and inserting the following: `all persons present in uniform should render the military salute. Members of the Armed Forces and veterans who are present but not in uniform may render the military salute. All other persons present should face the flag and stand at attention with their right hand over the heart, or if applicable, remove their headdress with their right hand and hold it at the left shoulder, the hand being over the heart. Citizens of other countries present should stand at attention. All such conduct toward the flag in a moving column should be rendered at the moment the flag passes.'.

SEC. 595. ANNUAL REPORT ON CASES REVIEWED BY NATIONAL COMMITTEE FOR EMPLOYER SUPPORT OF THE GUARD AND RESERVE.

    Section 4332 of title 38, United States Code, is amended--

      (1) by redesignating paragraphs (2), (3), (4), (5), and (6) as paragraphs (3), (4), (5), (6), and (7) respectively;

      (2) by inserting after paragraph (1) the following new paragraph (2):

      `(2) The number of cases reviewed by the Secretary of Defense under the National Committee for Employer Support of the Guard and Reserve of the Department of Defense during the fiscal year for which the report is made.'; and

      (3) in paragraph (5), as so redesignated, by striking `(2), or (3)' and inserting `(2), (3), or (4)'.

SEC. 596. MODIFICATION OF CERTIFICATE OF RELEASE OR DISCHARGE FROM ACTIVE DUTY (DD FORM 214).

    The Secretary of Defense, in consultation with the Secretary of Veterans Affairs, shall modify the Certificate of Release or Discharge from Active Duty (DD Form 214) in order to permit a member of the Armed Forces, upon discharge or release from active duty in the Armed Forces, to elect that the DD-214 issued with regard to the member be forwarded to the following:

      (1) The Central Office of the Department of Veterans Affairs in the District of Columbia.

      (2) The appropriate office of the Department of Veterans Affairs for the State or other locality in which the member will first reside after such discharge or release.

SEC. 597. REPORTS ON ADMINISTRATIVE SEPARATIONS OF MEMBERS OF THE ARMED FORCES FOR PERSONALITY DISORDER.

    (a) Secretary of Defense Report on Administrative Separations Based on Personality Disorder-

      (1) REPORT REQUIRED- Not later than April 1, 2008, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on all cases of administrative separation from the Armed Forces of covered members of the Armed Forces on the basis of a personality disorder.

      (2) ELEMENTS- The report required by paragraph (1) shall include the following:

        (A) A statement of the total number of cases, by Armed Force, in which covered members of the Armed Forces have been separated from the Armed Forces on the basis of a personality disorder, and an identification of the various forms of personality disorder forming the basis for such separations.

        (B) A statement of the total number of cases, by Armed Force, in which covered members of the Armed Forces who have served in Iraq and Afghanistan since October 2001 have been separated from the Armed Forces on the basis of a personality disorder, and the identification of the various forms of personality disorder forming the basis for such separations.

        (C) A summary of the policies, by Armed Force, controlling administrative separations of members of the Armed Forces based on personality disorder, and an evaluation of the adequacy of such policies for ensuring that covered members of the Armed Forces who may be eligible for disability evaluation due to mental health conditions are not separated from the Armed Forces on the basis of a personality disorder.

        (D) A discussion of measures being implemented to ensure that members of the Armed Forces who should be evaluated for disability separation or retirement due to mental health conditions are not processed for separation from the Armed Forces on the basis of a personality disorder, and recommendations regarding how members of the Armed Forces who may have been so separated from the Armed Forces should be provided with expedited review by the applicable board for the correction of military records.

    (b) Comptroller General Report on Policies on Administrative Separation Based on Personality Disorder-

      (1) REPORT REQUIRED- Not later than June 1, 2008, the Comptroller General shall submit to Congress a report evaluating the policies and procedures of the Department of Defense and of the military departments relating to the separation of members of the Armed Forces based on a personality disorder.

      (2) ELEMENTS- The report required by paragraph (1) shall--

        (A) include an audit of a sampling of cases to determine the validity and clinical efficacy of the policies and procedures referred to in paragraph (1) and the extent, if any, of the divergence between the terms of such policies and procedures and the implementation of such policies and procedures; and

        (B) include a determination by the Comptroller General of whether, and to what extent, the policies and procedures referred to in paragraph (1)--

          (i) deviate from standard clinical diagnostic practices and current clinical standards; and

          (ii) provide adequate safeguards aimed at ensuring that members of the Armed Forces who suffer from mental health conditions (including depression, post-traumatic stress disorder, or traumatic brain injury) resulting from service in a combat zone are not separated from the Armed Forces on the basis of a personality disorder.

      (3) ALTERNATIVE SUBMISSION METHOD- In lieu of submitting a separate report under this subsection, the Comptroller may include the evaluation, audit and determination required by this subsection as part of the study of mental health services required by section 723 of the Ronald W. Reagan National Defense Authorization Act of 2005 (Public Law 108-375; 118 Stat. 1989).

    (c) Covered Member of the Armed Forces Defined- In this section, the term `covered member of the Armed Forces' includes the following:

      (1) Any member of a regular component of the Armed Forces who has served in Iraq or Afghanistan since October 2001.

      (2) Any member of the Selected Reserve of the Ready Reserve of the Armed Forces who served on active duty in Iraq or Afghanistan since October 2001.

SEC. 598. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE VIETNAM WAR.

    (a) Commemorative Program Authorized- The Secretary of Defense may conduct a program to commemorate the 50th anniversary of the Vietnam War. In conducting the commemorative program, the Secretary shall coordinate, support, and facilitate other programs and activities of the Federal Government, State and local governments, and other persons and organizations in commemoration of the Vietnam War.

    (b) Schedule- The Secretary of Defense shall determine the schedule of major events and priority of efforts for the commemorative program in order to ensure achievement of the objectives specified in subsection (c).

    (c) Commemorative Activities and Objectives- The commemorative program may include activities and ceremonies to achieve the following objectives:

      (1) To thank and honor veterans of the Vietnam War, including personnel who were held as prisoners of war or listed as missing in action, for their service and sacrifice on behalf of the United States and to thank and honor the families of these veterans.

      (2) To highlight the service of the Armed Forces during the Vietnam War and the contributions of Federal agencies and governmental and non-governmental organizations that served with, or in support of, the Armed Forces.

      (3) To pay tribute to the contributions made on the home front by the people of the United States during the Vietnam War.

      (4) To highlight the advances in technology, science, and medicine related to military research conducted during the Vietnam War.

      (5) To recognize the contributions and sacrifices made by the allies of the United States during the Vietnam War.

    (d) Names and Symbols- The Secretary of Defense shall have the sole and exclusive right to use the name `The United States of America Vietnam War Commemoration', and such seal, emblems, and badges incorporating such name as the Secretary may lawfully adopt. Nothing in this section may be construed to supersede rights that are established or vested before the date of the enactment of this Act.

    (e) Commemorative Fund-

      (1) ESTABLISHMENT AND ADMINISTRATION- If the Secretary establishes the commemorative program under subsection (a), the Secretary the Treasury shall establish in the Treasury of the United States an account to be known as the `Department of Defense Vietnam War Commemoration Fund' (in this section referred to as the `Fund'). The Fund shall be administered by the Secretary of Defense.

      (2) USE OF FUND- The Secretary shall use the assets of the Fund only for the purpose of conducting the commemorative program and shall prescribe such regulations regarding the use of the Fund as the Secretary considers to be necessary.

      (3) DEPOSITS- There shall be deposited into the Fund--

        (A) amounts appropriated to the Fund;

        (B) proceeds derived from the Secretary's use of the exclusive rights described in subsection (d);

        (C) donations made in support of the commemorative program by private and corporate donors; and

        (D) funds transferred to the Fund by the Secretary from funds appropriated for fiscal year 2008 and subsequent years for the Department of Defense.

      (4) AVAILABILITY- Subject to subsection (g)(2), amounts deposited under paragraph (3) shall constitute the assets of the Fund and remain available until expended.

      (5) BUDGET REQUEST- The Secretary of Defense may establish a separate budget line for the commemorative program. In the budget justification materials submitted by the Secretary in support of the budget of the President for any fiscal year for which the Secretary establishes the separate budget line, the Secretary shall--

        (A) identify and explain any amounts expended for the commemorative program in the fiscal year preceding the budget request;

        (B) identify and explain the amounts being requested to support the commemorative program for the fiscal year of the budget request; and

        (C) present a summary of the fiscal status of the Fund.

    (f) Acceptance of Voluntary Services-

      (1) AUTHORITY TO ACCEPT SERVICES- Notwithstanding section 1342 of title 31, United States Code, the Secretary of Defense may accept from any person voluntary services to be provided in furtherance of the commemorative program. The Secretary of Defense shall prohibit the solicitation of any voluntary services if the nature or circumstances of such solicitation would compromise the integrity or the appearance of integrity of any program of the Department of Defense or of any individual involved in the program.

      (2) REIMBURSEMENT OF INCIDENTAL EXPENSES- The Secretary may provide for reimbursement of incidental expenses incurred by a person providing voluntary services under this subsection. The Secretary shall determine which expenses are eligible for reimbursement under this paragraph.

    (g) Final Report-

      (1) REPORT REQUIRED- Not later than 60 days after the end of the commemorative program, if established by the Secretary of Defense under subsection (a), the Secretary shall submit to Congress a report containing an accounting of--

        (A) all of the funds deposited into and expended from the Fund;

        (B) any other funds expended under this section; and

        (C) any unobligated funds remaining in the Fund.

      (2) TREATMENT OF UNOBLIGATED FUNDS- Unobligated amounts remaining in the Fund as of the end of the commemorative period specified in subsection (b) shall be held in the Fund until transferred by law.

    (h) Limitation on Expenditures- Total expenditures from the Fund, using amounts appropriated to the Department of Defense, may not exceed $5,000,000 for fiscal year 2008 or for any subsequent fiscal year to carry out the commemorative program.

    (i) Funding- Of the amount authorized to be appropriated pursuant to section 301(5) for Defense-wide activities, $1,000,000 shall be available for deposit in the Fund for fiscal year 2008 if the Fund is established under subsection (e).

SEC. 599. RECOGNITION OF MEMBERS OF THE MONUMENTS, FINE ARTS, AND ARCHIVES PROGRAM OF THE CIVIL AFFAIRS AND MILITARY GOVERNMENT SECTIONS OF THE ARMED FORCES DURING AND FOLLOWING WORLD WAR II.

    Congress hereby--

      (1) recognizes the men and women who served in the Monuments, Fine Arts, and Archives program (MFAA) under the Civil Affairs and Military Government Sections of the United States Armed Forces for their heroic role in the preservation, protection, and restitution of monuments, works of art, and other artifacts of inestimable cultural importance in Europe and Asia during and following World War II;

      (2) recognizes that without their dedication and service, many more of the world's artistic and historic treasures would have been destroyed or lost forever amidst the chaos and destruction of World War II;

      (3) acknowledges that the detailed catalogues, documentation, inventories, and photographs developed and compiled by MFAA personnel during and following World War II, have made, and continue to make, possible the restitution of stolen works of art to their rightful owners; and

      (4) commends and extols the members of the MFAA for establishing a precedent for action to protect cultural property in the event of armed conflict, and by their action setting a standard not just for one country, but for people of all nations to acknowledge and uphold.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

      Sec. 601. Fiscal year 2008 increase in military basic pay.

      Sec. 602. Basic allowance for housing for reserve component members without dependents who attend accession training while maintaining a primary residence.

      Sec. 603. Extension and enhancement of authority for temporary lodging expenses for members of the Armed Forces in areas subject to major disaster declaration or for installations experiencing sudden increase in personnel levels.

      Sec. 604. Income replacement payments for reserve component members experiencing extended and frequent mobilization for active duty service.

      Sec. 605. Midmonth payment of basic pay for contributions of members of the uniformed services participating in Thrift Savings Plan.

Subtitle B--Bonuses and Special and Incentive Pays

      Sec. 610. Correction of lapsed authorities for payment of bonuses, special pays, and similar benefits for members of the uniformed services.

      Sec. 611. Extension of certain bonus and special pay authorities for Reserve forces.

      Sec. 612. Extension of certain bonus and special pay authorities for health care professionals.

      Sec. 613. Extension of special pay and bonus authorities for nuclear officers.

      Sec. 614. Extension of authorities relating to payment of other bonuses and special pays.

      Sec. 615. Increase in incentive special pay and multiyear retention bonus for medical officers.

      Sec. 616. Increase in dental officer additional special pay.

      Sec. 617. Increase in maximum monthly rate of hardship duty pay and authority to provide hardship duty pay in a lump sum.

      Sec. 618. Definition of sea duty for career sea pay to include service as off-cycle crewmembers of multi-crew ships.

      Sec. 619. Reenlistment bonus for members of the Selected Reserve.

      Sec. 620. Availability of Selected Reserve accession bonus for persons who previously served in the Armed Forces for a short period.

      Sec. 621. Availability of nuclear officer continuation pay for officers with more than 26 years of commissioned service.

      Sec. 622. Waiver of years-of-service limitation on receipt of critical skills retention bonus.

      Sec. 623. Accession bonus for participants in the Armed Forces Health Professions Scholarship and Financial Assistance Program.

      Sec. 624. Payment of assignment incentive pay for Reserve members serving in combat zone for more than 22 months.

Subtitle C--Travel and Transportation Allowances

      Sec. 631. Payment of inactive duty training travel costs for certain Selected Reserve members.

      Sec. 632. Survivors of deceased members eligible for transportation to attend burial ceremonies.

      Sec. 633. Allowance for participation of Reserves in electronic screening.

      Sec. 634. Allowance for civilian clothing for members of the Armed Forces traveling in connection with medical evacuation.

      Sec. 635. Payment of moving expenses for Junior Reserve Officers' Training Corps instructors in hard-to-fill positions.

Subtitle D--Retired Pay and Survivor Benefits

      Sec. 641. Expansion of combat-related special compensation eligibility.

      Sec. 642. Inclusion of veterans with service-connected disabilities rated as total by reason of unemployability under termination of phase-in of concurrent receipt of retired pay and veterans' disability compensation.

      Sec. 643. Recoupment of annuity amounts previously paid, but subject to offset for dependency and indemnity compensation.

      Sec. 644. Special survivor indemnity allowance for persons affected by required Survivor Benefit Plan annuity offset for dependency and indemnity compensation.

      Sec. 645. Modification of authority of members of the Armed Forces to designate recipients for payment of death gratuity.

      Sec. 646. Clarification of application of retired pay multiplier percentage to members of the uniformed services with over 30 years of service.

      Sec. 647. Commencement of receipt of non-regular service retired pay by members of the Ready Reserve on active Federal status or active duty for significant periods.

      Sec. 648. Computation of years of service for purposes of retired pay for non-regular service.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

      Sec. 651. Authority to continue commissary and exchange benefits for certain involuntarily separated members of the Armed Forces.

      Sec. 652. Authorization of installment deductions from pay of employees of nonappropriated fund instrumentalities to collect indebtedness to the United States.

Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus Authorities

      Sec. 661. Consolidation of special pay, incentive pay, and bonus authorities of the uniformed services.

      Sec. 662. Transitional provisions.

Subtitle G--Other Matters

      Sec. 671. Referral bonus authorities.

      Sec. 672. Expansion of education loan repayment program for members of the Selected Reserve.

      Sec. 673. Ensuring entry into United States after time abroad for permanent resident alien military spouses and children.

      Sec. 674. Overseas naturalization for military spouses and children.

      Sec. 675. Modification of amount of back pay for members of Navy and Marine Corps selected for promotion while interned as prisoners of war during World War II to take into account changes in Consumer Price Index.

Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY.

    (a) Rescission of Prior Basic Pay Adjustment- The adjustment made as of January 1, 2008, pursuant to section 4 of Executive Order No. 13454 (issued January 4, 2008), in elements of compensation of members of the uniformed services pursuant to section 1009 of title 37, United States Code, is hereby rescinded in order to permit the 3.5 percent increase in monthly basic pay for members of the uniformed services required by subsection (b) to take effect as intended.

    (b) Increase in Basic Pay- Effective as of January 1, 2008, the rates of monthly basic pay for members of the uniformed services are increased by 3.5 percent.

SEC. 602. BASIC ALLOWANCE FOR HOUSING FOR RESERVE COMPONENT MEMBERS WITHOUT DEPENDENTS WHO ATTEND ACCESSION TRAINING WHILE MAINTAINING A PRIMARY RESIDENCE.

    (a) Availability of Allowance- Section 403(g)(1) of title 37, United States Code, is amended--

      (1) by inserting `to attend accession training,' after `active duty' the first place it appears; and

      (2) by inserting a comma after `contingency operation' the first place it appears.

    (b) Effective Date- The amendments made by subsection (a) shall apply with respect to months beginning on or after the date of the enactment of this Act.

SEC. 603. EXTENSION AND ENHANCEMENT OF AUTHORITY FOR TEMPORARY LODGING EXPENSES FOR MEMBERS OF THE ARMED FORCES IN AREAS SUBJECT TO MAJOR DISASTER DECLARATION OR FOR INSTALLATIONS EXPERIENCING SUDDEN INCREASE IN PERSONNEL LEVELS.

    (a) Maximum Period of Receipt of Expenses- Section 404a(c)(3) of title 37, United States Code, is amended by striking `20 days' and inserting `60 days'.

    (b) Extension of Authority for Increase in Certain BAH- Section 403(b)(7)(E) of such title is amended by striking `December 31, 2008' and inserting `December 31, 2009'.

SEC. 604. INCOME REPLACEMENT PAYMENTS FOR RESERVE COMPONENT MEMBERS EXPERIENCING EXTENDED AND FREQUENT MOBILIZATION FOR ACTIVE DUTY SERVICE.

    (a) Clarification Regarding When Payments Required- Subsection (a) of section 910 of title 37, United States Code, is amended by inserting before the period at the end of the first sentence the following: `, when the total monthly military compensation of the member is less than the average monthly civilian income of the member'.

    (b) Eligibility- Subsection (b) of such section is amended to read as follows:

    `(b) Eligibility- (1) A member of a reserve component is entitled to a payment under this section for any full month of active duty of the member, when the total monthly military compensation of the member is less than the average monthly civilian income of the member, while the member is on active duty under an involuntary mobilization order, following the date on which the member--

      `(A) completes 547 continuous days of service on active duty under an involuntary mobilization order;

      `(B) completes 730 cumulative days on active duty under an involuntary mobilization order during the previous 1,826 days; or

      `(C) is involuntarily mobilized for service on active duty for a period of 180 days or more within 180 days after the date of the member's separation from a previous period of active duty for a period of 180 days or more.

    `(2) The entitlement of a member of a reserve component to a payment under this section also shall commence or, if previously commenced under paragraph (1), shall continue if the member--

      `(A) satisfies the required number of days on active duty specified in subparagraph (A) or (B) of paragraph (1) or was involuntarily mobilized as provided in subparagraph (C) of such paragraph; and

      `(B) is retained on active duty under subparagraph (A) or (B) of section 12301(h)(1) of title 10 because of an injury or illness incurred or aggravated while the member was assigned to duty in an area for which special pay under section 310 of this title is available.'.

    (c) Termination of Authority- Subsection (g) of such section is amended to read as follows:

    `(g) Termination- No payment shall be made to a member under this section for months beginning after December 31, 2008, unless the entitlement of the member to payments under this section commenced on or before that date.'.

SEC. 605. MIDMONTH PAYMENT OF BASIC PAY FOR CONTRIBUTIONS OF MEMBERS OF THE UNIFORMED SERVICES PARTICIPATING IN THRIFT SAVINGS PLAN.

    (a) Semi-Monthly Deposit of Member's Contributions- Section 1014 of title 37, United States Code, is amended by adding at the end the following new subsection:

    `(c) With respect to a member of the uniformed services who has elected to participate in the Thrift Savings Plan under section 211 of this title, subsection (a) does not preclude the payment of an amount equal to one-half of the monthly deposit to the Thrift Savings Fund otherwise to be made by the member in participating in the Plan, which amount may be deposited in the Thrift Savings Fund at midmonth.'.

    (b) Semi-Monthly Repayment of Borrowed Amounts- Section 211 of such title is amended by adding at the end the following new subsection:

    `(e) Repayment of Amounts Borrowed From Member Account- If a loan is issued to a member under section 8433(g) of title 5 from funds in the member's account in the Thrift Savings Plan, repayment of the loan may be required on the same semi-monthly basis as authorized for contributions to the Thrift Savings Fund on behalf of the member under section 1014(c) of this title.'.

Subtitle B--Bonuses and Special and Incentive Pays

SEC. 610. CORRECTION OF LAPSED AUTHORITIES FOR PAYMENT OF BONUSES, SPECIAL PAYS, AND SIMILAR BENEFITS FOR MEMBERS OF THE UNIFORMED SERVICES.

    (a) Retroactive Effective Date for Payment Authorities- The amendments made by sections 611, 612, 613, and 614 shall take effect as of December 31, 2007.

    (b) Ratification of Existing Contingent Agreements- In the case of a provision of title 10 or 37, United States Code, amended by section 611, 612, 613, or 614 under which an individual must enter into an agreement with the Secretary concerned for receipt of a bonus, special pay, or similar benefit, the Secretary concerned may treat any agreement entered into under such a provision during the period beginning on January 1, 2008, and ending on the date of the enactment of this Act as having taken effect as of the date on which the agreement was signed by the individual.

    (c) Temporary Additional Agreement Authority-

      (1) AUTHORITY- In the case of a provision of title 10 or 37, United States Code, amended by section 611, 612, 613, or 614 under which an individual must enter into an agreement with the Secretary concerned for receipt of a bonus, special pay, or similar benefit, the Secretary concerned, during the 120-day period beginning on the date of the enactment of this Act, may treat any agreement entered into under such a provision by an individual described in paragraph (2) as having been signed by the individual during the period beginning on January 1, 2008, and ending on the date of the enactment of this Act.

      (2) COVERED INDIVIDUALS- An individual referred to in paragraph (1) is an individual who would have met all of the qualifications for a bonus, special pay, or similar benefit under a provision of title 10 or 37, United States Code, amended by section 611, 612, 613, or 614 at any time during the period beginning on January 1, 2008, and ending on the date of the enactment of this Act, but for the fact that the statutory authority for the bonus, special pay, or similar benefit lapsed on December 31, 2007.

    (d) Tax Treatment- The payment of a bonus, special pay, or similar benefit under a provision of title 10 or 37, United States Code, amended by section 611, 612, 613, or 614 to an individual who would have been entitled to the tax treatment accorded by section 112 of the Internal Revenue Code of 1986 on the date on which the member would have otherwise earned the bonus, special pay, or similar benefit, but for the fact that the statutory authority for the bonus, special pay, or similar benefit lapsed on December 31, 2007, shall be treated as covered by such section 112.

    (e) Retroactive Implementation of Army Referral Bonus- The Secretary of the Army may pay a bonus under section 3252 of title 10, United States Code, as added by section 671(a)(1), to an individual referred to in subsection (a)(2) of such section 3252 who made a referral, as described in subsection (b) of such section 3252, to an Army recruiter during the period beginning on January 1, 2008, and ending on the date of the enactment of this Act.

    (f) Secretary Concerned Defined- In this section, the term `Secretary concerned' has the meaning given that term in section 101(5) of title 37, United States Code.

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus- Section 308b(g) of title 37, United States Code, is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (b) Selected Reserve Affiliation or Enlistment Bonus- Section 308c(i) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (c) Special Pay for Enlisted Members Assigned to Certain High Priority Units- Section 308d(c) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (d) Ready Reserve Enlistment Bonus for Persons Without Prior Service- Section 308g(f)(2) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons With Prior Service- Section 308h(e) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (f) Selected Reserve Enlistment Bonus for Persons With Prior Service- Section 308i(f) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program- Section 2130a(a)(1) of title 10, United States Code, is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (b) Repayment of Education Loans for Certain Health Professionals Who Serve in the Selected Reserve- Section 16302(d) of such title is amended by striking `January 1, 2008' and inserting `January 1, 2009'.

    (c) Accession Bonus for Registered Nurses- Section 302d(a)(1) of title 37, United States Code, is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (d) Incentive Special Pay for Nurse Anesthetists- Section 302e(a)(1) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (e) Special Pay for Selected Reserve Health Professionals in Critically Short Wartime Specialties- Section 302g(e) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (f) Accession Bonus for Dental Officers- Section 302h(a)(1) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (g) Accession Bonus for Pharmacy Officers- Section 302j(a) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (h) Accession Bonus for Medical Officers in Critically Short Wartime Specialties- Section 302k(f) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (i) Accession Bonus for Dental Specialist Officers in Critically Short Wartime Specialties- Section 302l(g) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of Active Service- Section 312(f) of title 37, United States Code, is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (b) Nuclear Career Accession Bonus- Section 312b(c) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (c) Nuclear Career Annual Incentive Bonus- Section 312c(d) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus- Section 301b(a) of title 37, United States Code, is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (b) Reenlistment Bonus for Active Members- Section 308(g) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (c) Enlistment Bonus- Section 309(e) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (d) Retention Bonus for Members With Critical Military Skills or Assigned to High Priority Units- Section 323(i) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (e) Accession Bonus for New Officers in Critical Skills- Section 324(g) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (f) Incentive Bonus for Conversion to Military Occupational Specialty to Ease Personnel Shortage- Section 326(g) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (g) Accession Bonus for Officer Candidates- Section 330(f) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

    (h) Prohibition on Charges for Meals Received at Military Treatment Facilities by Members Receiving Continuous Care- Section 402(h)(3) of such title is amended by striking `December 31, 2007' and inserting `December 31, 2008'.

SEC. 615. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION BONUS FOR MEDICAL OFFICERS.

    (a) Incentive Special Pay- Section 302(b)(1) of title 37, United States Code, is amended by striking `$50,000' and inserting `$75,000'.

    (b) Multiyear Retention Bonus- Section 301d(a)(2) of title 37, United States Code, is amended by striking `$50,000' and inserting `$75,000'.

    (c) Effective Date- The amendments made by this section shall apply with respect to agreements entered into under section 301d(a) or 302b(c) of title 37, United States Code, on or after the date of the enactment of this Act.

SEC. 616. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

    (a) Increase- Section 302b(a)(4) of title 37, United States Code, is amended--

      (1) in the matter preceding subparagraph (A), by striking `at the following rates' and inserting `at a rate determined by the Secretary concerned, which rate may not exceed the following';

      (2) in subparagraph (A), by striking `$4,000' and inserting `$10,000'; and

      (3) in subparagraph (B), by striking `$6,000' and inserting `$12,000'.

    (b) Effective Date- The amendments made by this section shall apply with respect to agreements entered into under section 302b(b) of title 37, United States Code, on or after the date of the enactment of this Act.

SEC. 617. INCREASE IN MAXIMUM MONTHLY RATE OF HARDSHIP DUTY PAY AND AUTHORITY TO PROVIDE HARDSHIP DUTY PAY IN A LUMP SUM.

    Section 305 of title 37, United States Code, is amended to read as follows:

`Sec. 305. Special pay: hardship duty pay

    `(a) Special Pay Authorized- A member of a uniformed service who is entitled to basic pay may be paid special pay under this section while the member is performing duty that is designated by the Secretary of Defense as hardship duty.

    `(b) Payment on Monthly or Lump Sum Basis- Special pay payable under this section may be paid on a monthly basis or in a lump sum.

    `(c) Maximum Rate or Amount- (1) The monthly rate of special pay payable to a member under this section may not exceed $1,500.

    `(2) The amount of the lump sum payment of special pay payable to a member under this section may not exceed the product of--

      `(A) the maximum monthly rate in effect under paragraph (1) at the time the member qualifies for payment of special pay under this section; and

      `(B) the number of months during which the member will be performing the designated hardship duty.

    `(d) Relationship to Other Pay and Allowances- Special pay paid to a member under this section is in addition to any other pay and allowances to which the member is entitled.

    `(e) Repayment- A member who is paid special pay in a lump sum under this section, but who fails to perform the designated hardship duty during the months included in the calculation of the amount of the lump sum under subsection (c)(2), shall be subject to the repayment provisions of section 303a(e) of this title.

    `(f) Regulations- The Secretary of Defense shall prescribe regulations for the payment of hardship duty pay under this section, including the specific monthly rates at which the special pay will be available.'.

SEC. 618. DEFINITION OF SEA DUTY FOR CAREER SEA PAY TO INCLUDE SERVICE AS OFF-CYCLE CREWMEMBERS OF MULTI-CREW SHIPS.

    Section 305a(e)(1)(A) of title 37, United States Code, is amended--

      (1) by striking `or' at the end of clause (ii); and

      (2) by adding at the end the following new clause:

        `(iv) while serving as an off-cycle crewmember of a multi-crewed ship; or'.

SEC. 619. REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Minimum Term of Reenlistment or Enlistment Extension- Subsection (a)(2) of 308b of title 37, United States Code, is amended by striking `his enlistment for a period of three years or for a period of six years' and inserting `an enlistment for a period of at least three years'.

    (b) Maximum Bonus Amount- Subsection (b)(1) of such section is amended by striking `may not exceed' and all that follows through the end of the paragraph and inserting `may not exceed $15,000.'.

    (c) Conforming Amendments Regarding Eligibility Requirements- Subsection (c) of such section is amended--

      (1) by striking the subsection heading and all that follows through `(2) In the case' and inserting `Waiver of Condition on Eligibility- In the case'; and

      (2) by striking `paragraph (1)(B) or'.

    (d) Effective Date- The amendments made by this section shall apply with respect to reenlistments or extensions of enlistment that occur on or after the date of the enactment of this Act.

SEC. 620. AVAILABILITY OF SELECTED RESERVE ACCESSION BONUS FOR PERSONS WHO PREVIOUSLY SERVED IN THE ARMED FORCES FOR A SHORT PERIOD.

    Section 308c(c)(1) of title 37, United States Code, is amended by inserting before the semicolon the following: `or has served in the armed forces, but was released from such service before completing the basic training requirements of the armed force of which the person was a member and the service was characterized as either honorable or uncharacterized'.

SEC. 621. AVAILABILITY OF NUCLEAR OFFICER CONTINUATION PAY FOR OFFICERS WITH MORE THAN 26 YEARS OF COMMISSIONED SERVICE.

    (a) Increase- Section 312 of title 37, United States Code, is amended--

      (1) in subsection (a)(3), by striking `26 years' and inserting `30 years'; and

      (2) in subsection (e)(1), by striking `the end of 26 years of commissioned service' and inserting `the maximum number of years of commissioned service authorized by subsection (a)(3)'.

    (b) Effect on Existing Agreements- The Secretary of the Navy and an officer of the naval service who is a party to an agreement under section 312 of title 37, United States Code, that was entered into before the date of the enactment of this Act may revise the agreement to reflect the new limitation on the number of years of commissioned service that the officer may serve while remaining eligible for special pay under such section.

SEC. 622. WAIVER OF YEARS-OF-SERVICE LIMITATION ON RECEIPT OF CRITICAL SKILLS RETENTION BONUS.

    Section 323(e) of title 37, United States Code, is amended by adding at the end the following new paragraph:

    `(4) The Secretary of Defense, or the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Navy, may waive the limitations in paragraph (1) with respect to a member who, during the period of active duty or service in an active status in a reserve component for which the bonus is being offered, is assigned duties in a skill designated as critical under subsection (b)(1). The authority to grant a waiver under this paragraph may not be delegated below the Under Secretary of Defense for Personnel and Readiness or the Deputy Secretary of the Department of Homeland Security.'.

SEC. 623. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    (a) Accession Bonus Authorized- Subchapter I of chapter 105 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2128. Accession bonus for members of the program

    `(a) Availability of Bonus- The Secretary of Defense may offer a person who enters into an agreement under section 2122(a)(2) of this title an accession bonus of not more than $20,000 as part of the agreement.

    `(b) Relation to Other Payments- An accession bonus paid a person under this section is in addition to any other amounts payable to the person under this subchapter.

    `(c) Repayment- A person who receives an accession bonus under this section, but fails to comply with the agreement under section 2122(a)(2) of this title or to commence or complete the active duty obligation imposed by section 2123 of this title, shall be subject to the repayment provisions of section 303a(e) of title 37.'.

    (b) Clerical Amendment- The table of sections at the beginning of such subchapter is amended by adding at the end the following new item:

      `2128. Accession bonus for members of the program.'.

    (c) Effective Date- The amendment made by subsection (a) shall apply with respect to agreements entered into under section 2122(a)(2) of title 10, United States Code, on or after the date of the enactment of this Act.

SEC. 624. PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE MEMBERS SERVING IN COMBAT ZONE FOR MORE THAN 22 MONTHS.

    (a) Payment- The Secretary of a military department may pay assignment incentive pay under section 307a of title 37, United States Code, to a member of a reserve component under the jurisdiction of the Secretary for each month during the eligibility period of the member determined under subsection (b) during which the member served for any portion of the month in a combat zone associated with Operating Enduring Freedom or Operation Iraqi Freedom in excess of 22 months of qualifying service.

    (b) Eligibility Period- The eligibility period for a member extends from January 1, 2005, through the end of the active duty service of the member in a combat zone associated with Operating Enduring Freedom or Operation Iraqi Freedom if the service on active duty during the member's most recent period of mobilization to active duty began before January 19, 2007.

    (c) Amount of Payment- The monthly rate of incentive pay payable to a member under this section is $1,000.

    (d) Qualifying Service- For purposes of this section, qualifying service includes cumulative mobilized service on active duty under sections 12301(d), 12302, and 12304 of title 10, United States Code, during the period beginning on January 1, 2003, through the end of the member's active duty service during the member's most recent period of mobilization to active duty beginning before January 19, 2007.

Subtitle C--Travel and Transportation Allowances

SEC. 631. PAYMENT OF INACTIVE DUTY TRAINING TRAVEL COSTS FOR CERTAIN SELECTED RESERVE MEMBERS.

    (a) Payment of Travel Costs Authorized-

      (1) IN GENERAL- Chapter 7 of title 37, United States Code, is amended by inserting after section 408 the following new section:

`Sec. 408a. Travel and transportation allowances: inactive duty training outside of normal commuting distances

    `(a) Allowance Authorized- The Secretary concerned may reimburse an eligible member of the Selected Reserve of the Ready Reserve for travel expenses for travel to an inactive duty training location to perform inactive duty training when the member is required to commute a distance from the member's permanent residence to the inactive duty training location that is outside the normal commuting distance (as determined under the regulations prescribed under subsection (d)) for that commute.

    `(b) Eligible Members- To be eligible for reimbursement under subsection (a), a member of the Selected Reserve of the Ready Reserve must be--

      `(1) qualified in a skill designated as critically short by the Secretary concerned;

      `(2) assigned to a unit of the Selected Reserve with a critical manpower shortage or in a pay grade in the member's reserve component with a critical manpower shortage; or

      `(3) assigned to a unit or position that is disestablished or relocated as a result of defense base closure or realignment or another force structure reallocation.

    `(c) Maximum Reimbursement Amount- The amount of reimbursement provided a member under subsection (a) for each round trip to a training location may not exceed $300.

    `(d) Regulations- The Secretary concerned shall prescribe regulations to carry out this section. Regulations prescribed by the Secretary of a military department shall be subject to the approval of the Secretary of Defense.

    `(e) Termination- No reimbursement may be provided under this section for travel that occurs after December 31, 2010.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 408 the following new item:

      `408a. Travel and transportation allowances: inactive duty training outside of normal commuting distances.'.

    (b) Application of Amendment- No reimbursement may be provided under section 408a of title 37, United States Code, as added by subsection (a), for travel costs incurred before the date of the enactment of this Act.

SEC. 632. SURVIVORS OF DECEASED MEMBERS ELIGIBLE FOR TRANSPORTATION TO ATTEND BURIAL CEREMONIES.

    (a) Eligible Relatives- Paragraph (1) of section 411f(c) of title 37, United States Code, is amended--

      (1) by striking subparagraph (B) and inserting the following new subparagraph:

      `(B) The child or children of the deceased member (including stepchildren, adopted children, and illegitimate children).'; and

      (2) by adding at the end the following new subparagraphs:

      `(D) The sibling or siblings of the deceased member.

      `(E) The person who directs the disposition of the remains of the deceased member under section 1482(c) of title 10 or, in the case of a deceased member whose remains are commingled and buried in a common grave in a national cemetery, the person who would have been designated under such section to direct the disposition of the remains if individual identification had been made.'.

    (b) Other Persons- Paragraph (2) of such section is amended to read as follows:

    `(2) If no person described in subparagraphs (A) through (D) of paragraph (1) is provided travel and transportation allowances under subsection (a)(1), the travel and transportation allowances may be provided to one or two other persons who are closely related to the deceased member and are selected by the person referred to in paragraph (1)(E). A person provided travel and transportation allowances under this paragraph is in addition to the person referred to in paragraph (1)(E).'.

SEC. 633. ALLOWANCE FOR PARTICIPATION OF RESERVES IN ELECTRONIC SCREENING.

    (a) Allowance for Participation in Electronic Screening-

      (1) IN GENERAL- Chapter 7 of title 37, United States Code, is amended by inserting after section 433 the following new section:

`Sec. 433a. Allowance for participation in Ready Reserve screening

    `(a) Allowance Authorized- (1) Under regulations prescribed by the Secretaries concerned, a member of the Individual Ready Reserve may be paid a stipend for participation in the screening performed pursuant to section 10149 of title 10, in lieu of muster duty performed under section 12319 of title 10, if such participation is conducted through electronic means.

    `(2) The stipend paid a member under this section shall constitute the sole monetary allowance authorized for participation in the screening described in paragraph (1), and shall constitute payment in full to the member for participation in such screening, regardless of the grade or rank in which the member is serving.

    `(b) Maximum Payment- The aggregate amount of the stipend paid a member of the Individual Ready Reserve under this section in any calendar year may not exceed $50.

    `(c) Payment Requirements- (1) The stipend authorized by this section may not be disbursed in kind.

    `(2) Payment of a stipend to a member of the Individual Ready Reserve under this section for participation in screening shall be made on or after the date of participation in such screening, but not later than 30 days after such date.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 433 the following new item:

      `433a. Allowance for participation in Ready Reserve screening.'.

    (b) Bar to Dual Compensation- Section 206 of such title is amended by adding at the end the following new subsection:

    `(f) A member of the Individual Ready Reserve is not entitled to compensation under this section for participation in screening for which the member is paid a stipend under section 433a of this title.'.

    (c) Bar to Retirement Credit- Section 12732(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(8) Service in the screening performed pursuant to section 10149 of this title through electronic means, regardless of whether or not a stipend is paid the member concerned for such service under section 433a of title 37.'.

SEC. 634. ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF THE ARMED FORCES TRAVELING IN CONNECTION WITH MEDICAL EVACUATION.

    Section 1047(a) of title 10, United States Code, is amended by inserting `and luggage' after `civilian clothing' both places it appears.

SEC. 635. PAYMENT OF MOVING EXPENSES FOR JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTORS IN HARD-TO-FILL POSITIONS.

    Section 2031 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(f)(1) When determined by the Secretary of the military department concerned to be in the national interest and agreed upon by the institution concerned, the institution may reimburse a Junior Reserve Officers' Training Corps instructor for moving expenses incurred by the instructor to accept employment at the institution in a position that the Secretary concerned determines is hard-to-fill for geographic or economic reasons.

    `(2) As a condition on providing reimbursement under paragraph (1), the institution shall require the instructor to execute a written agreement to serve a minimum of two years of employment at the institution in the hard-to-fill position.

    `(3) Any reimbursement provided to an instructor under paragraph (1) is in addition to the minimum instructor pay otherwise payable to the instructor.

    `(4) The Secretary concerned shall reimburse an institution providing reimbursement to an instructor under paragraph (1) in an amount equal to the amount of the reimbursement paid by the institution under that paragraph. Any reimbursement provided by the Secretary concerned shall be provided from funds appropriated for that purpose.

    `(5) The provision of reimbursement under paragraph (1) or (4) shall be subject to regulations prescribed by the Secretary of Defense for purposes of this subsection.'.

Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY.

    (a) Expanded Eligibility for Chapter 61 Military Retirees- Subsection (c) of section 1413a of title 10, United States Code, is amended by striking `entitled to retired pay who--' and all that follows and inserting `who--

      `(1) is entitled to retired pay (other than by reason of section 12731b of this title); and

      `(2) has a combat-related disability.'.

    (b) Computation- Paragraph (3) of subsection (b) of such section is amended--

      (1) by striking `In the case of' and inserting the following:

        `(A) GENERAL RULE- In the case of'; and

      (2) by adding at the end the following new subparagraph:

        `(B) SPECIAL RULE FOR RETIREES WITH FEWER THAN 20 YEARS OF SERVICE- In the case of an eligible combat-related disabled uniformed services retiree who is retired under chapter 61 of this title with fewer than 20 years of creditable service, the amount of the payment under paragraph (1) for any month shall be reduced by the amount (if any) by which the amount of the member's retired pay under chapter 61 of this title exceeds the amount equal to 2 1/2 percent of the member's years of creditable service multiplied by the member's retired pay base under section 1406(b)(1) or 1407 of this title, whichever is applicable to the member.'.

    (c) Effective Date- The amendments made by this section shall take effect on January 1, 2008, and shall apply to payments for months beginning on or after that date.

SEC. 642. INCLUSION OF VETERANS WITH SERVICE-CONNECTED DISABILITIES RATED AS TOTAL BY REASON OF UNEMPLOYABILITY UNDER TERMINATION OF PHASE-IN OF CONCURRENT RECEIPT OF RETIRED PAY AND VETERANS' DISABILITY COMPENSATION.

    (a) Inclusion of Veterans- Section 1414(a)(1) of title 10, United States Code, is amended by striking `except that' and all that follows and inserting `except that payment of retired pay is subject to subsection (c) only during the period beginning on January 1, 2004, and ending on December 31, 2004, in the case of the following:

        `(A) A qualified retiree receiving veterans' disability compensation for a disability rated as 100 percent.

        `(B) A qualified retiree receiving veterans' disability compensation at the rate payable for a 100 percent disability by reason of a determination of individual unemployability.'.

    (b) Effective Date-

      (1) IN GENERAL- Subject to paragraph (2), the amendment made by subsection (a) shall take effect as of December 31, 2004.

      (2) TIMING OF PAYMENT OF RETROACTIVE BENEFITS- Any amount payable for a period before October 1, 2008, by reason of the amendment made by subsection (a) shall not be paid until after that date.

SEC. 643. RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, BUT SUBJECT TO OFFSET FOR DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Limitation on Recoupment; Notification Requirements- Section 1450(c) of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(3) LIMITATION ON RECOUPMENT OF OFFSET AMOUNT- Any amount subject to offset under this subsection that was previously paid to the surviving spouse or former spouse shall be recouped only to the extent that the amount paid exceeds any amount to be refunded under subsection (e). In notifying a surviving spouse or former spouse of the recoupment requirement, the Secretary shall provide the spouse or former spouse--

        `(A) a single notice of the net amount to be recouped or the net amount to be refunded, as applicable, under this subsection or subsection (e);

        `(B) a written explanation of the statutory requirements for recoupment of the offset amount and for refund of any applicable amount deducted from retired pay;

        `(C) a detailed accounting of how the offset amount being recouped and retired pay deduction amount being refunded were calculated; and

        `(D) contact information for a person who can provide information about the offset recoupment and retired pay deduction refund processes and answer questions the surviving spouse or former spouse may have about the requirements, processes, or amounts.'.

    (b) Application- Paragraph (3) of subsection (c) of section 1450 of title 10, United States Code, as added by subsection (a), shall apply with respect to the recoupment on or after April 1, 2008, of amounts subject to offset under such subsection.

SEC. 644. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR PERSONS AFFECTED BY REQUIRED SURVIVOR BENEFIT PLAN ANNUITY OFFSET FOR DEPENDENCY AND INDEMNITY COMPENSATION.

    Section 1450 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(m) Special Survivor Indemnity Allowance-

      `(1) PROVISION OF ALLOWANCE- The Secretary concerned shall pay a monthly special survivor indemnity allowance under this subsection to the surviving spouse or former spouse of a member of the uniformed services to whom section 1448 of this title applies if--

        `(A) the surviving spouse or former spouse is entitled to dependency and indemnity compensation under section 1311(a) of title 38;

        `(B) except for subsection (c) of this section, the surviving spouse or former spouse is eligible for an annuity by reason of a participant in the Plan under section 1448(a)(1) of this title; and

        `(C) the eligibility of the surviving spouse or former spouse for an annuity as described in subparagraph (B) is affected by subsection (c) of this section.

      `(2) AMOUNT OF PAYMENT- Subject to paragraph (3), the amount of the allowance paid to an eligible survivor under paragraph (1) for a month shall be equal to--

        `(A) for months during fiscal year 2009, $50;

        `(B) for months during fiscal year 2010, $60;

        `(C) for months during fiscal year 2011, $70;

        `(D) for months during fiscal year 2012, $80;

        `(E) for months during fiscal year 2013, $90; and

        `(F) for months after fiscal year 2013, $100.

      `(3) LIMITATION- The amount of the allowance paid to an eligible survivor under paragraph (1) for any month may not exceed the amount of the annuity for that month that is subject to offset under subsection (c).

      `(4) STATUS OF PAYMENTS- An allowance paid under this subsection does not constitute an annuity, and amounts so paid are not subject to adjustment under any other provision of law.

      `(5) SOURCE OF FUNDS- The special survivor indemnity allowance shall be paid from amounts in the Department of Defense Military Retirement Fund established under section 1461 of this title.

      `(6) EFFECTIVE DATE AND DURATION- This subsection shall only apply with respect to the month beginning on October 1, 2008, and subsequent months through the month ending on February 28, 2016. Effective on March 1, 2016, the authority provided by this subsection shall terminate. No special survivor indemnity allowance may be paid to any person by reason of this subsection for any period before October 1, 2008, or beginning on or after March 1, 2016.'.

SEC. 645. MODIFICATION OF AUTHORITY OF MEMBERS OF THE ARMED FORCES TO DESIGNATE RECIPIENTS FOR PAYMENT OF DEATH GRATUITY.

    (a) Authority to Designate Recipients- Section 1477 of title 10, United States Code, is amended--

      (1) by striking subsections (c) and (d);

      (2) by redesignating subsection (b) as subsection (d) and, in such subsection, by striking `Subsection (a)(2)' and inserting `Treatment of Children- Subsection (b)(2)'; and

      (3) by striking subsection (a) and inserting the following new subsections:

    `(a) Designation of Recipients- (1) On and after July 1, 2008, or such earlier date as the Secretary of Defense may prescribe, a person covered by section 1475 or 1476 of this title may designate one or more persons to receive all or a portion of the amount payable under section 1478 of this title. The designation of a person to receive a portion of the amount shall indicate the percentage of the amount, to be specified only in 10 percent increments, that the designated person may receive. The balance of the amount of the death gratuity, if any, shall be paid in accordance with subsection (b).

    `(2) If a person covered by section 1475 or 1476 of this title has a spouse, but designates a person other than the spouse to receive all or a portion of the amount payable under section 1478 of this title, the Secretary concerned shall provide notice of the designation to the spouse.

    `(b) Distribution of Remainder; Distribution in Absence of Designated Recipient- If a person covered by section 1475 or 1476 of this title does not make a designation under subsection (a) or designates only a portion of the amount payable under section 1478 of this title, the amount of the death gratuity not covered by a designation shall be paid as follows:

      `(1) To the surviving spouse of the person, if any.

      `(2) If there is no surviving spouse, to any surviving children (as prescribed by subsection (d)) of the person and the descendants of any deceased children by representation.

      `(3) If there is none of the above, to the surviving parents (as prescribed by subsection (c)) of the person or the survivor of them.

      `(4) If there is none of the above, to the duly-appointed executor or administrator of the estate of the person.

      `(5) If there is none of the above, to other next of kin of the person entitled under the laws of domicile of the person at the time of the person's death.

    `(c) Treatment of Parents- For purposes of subsection (b)(3), parents include fathers and mothers through adoption. However, only one father and one mother may be recognized in any case, and preference shall be given to those who exercised a parental relationship on the date, or most nearly before the date, on which the decedent entered a status described in section 1475 or 1476 of this title.'.

    (b) Clerical and Conforming Amendments- Subsection (e) of such section is amended--

      (1) by inserting `Effect of Death Before Receipt of Gratuity- ' after `(e)';

      (2) by striking `subsection (a) or (d)' and inserting `subsection (a) or (b)'; and

      (3) by striking `subsection (a).' and inserting `subsection (b)'.

    (c) Existing Designation Authority- The authority provided by subsection (d) of section 1477 of title 10, United States Code, as in effect on the day before the date of the enactment of this Act, shall remain available to persons covered by section 1475 or 1476 of such title until July 1, 2008, or such earlier date as the Secretary of Defense may prescribe, and any designation under such subsection made before July 1, 2008, or the earlier date prescribed by the Secretary, shall continue in effect until such time as the person who made the designation makes a new designation under such section 1477, as amended by subsection (a) of this section.

    (d) Regulations-

      (1) IN GENERAL- Not later than April 1, 2008, the Secretary of Defense shall prescribe regulations to implement the amendments to section 1477 of title 10, United States Code, made by subsection (a).

      (2) ELEMENTS- The regulations required by paragraph (1) shall include forms for the making of the designation contemplated by subsection (a) of section 1477 of title 10, United States Code, as amended by subsection (a) of this section, and instructions for members of the Armed Forces in the filling out of such forms.

SEC. 646. CLARIFICATION OF APPLICATION OF RETIRED PAY MULTIPLIER PERCENTAGE TO MEMBERS OF THE UNIFORMED SERVICES WITH OVER 30 YEARS OF SERVICE.

    (a) Computation of Retired and Retainer Pay for Members of Naval Service- The table in section 6333(a) of title 10, United States Code, is amended in Column 2 of Formula A by striking `75 percent.' and inserting `Retired pay multiplier prescribed under section 1409 for the years of service that may be credited to the member under section 1405.'.

    (b) Retired Pay for Certain Members Recalled to Active Duty- The table in section 1402(a) of such title is amended by striking Column 3.

    (c) Effective Date- The amendments made by subsections (a) and (b) shall take effect as of January 1, 2007, and shall apply with respect to retired pay and retainer pay payable on or after that date.

SEC. 647. COMMENCEMENT OF RECEIPT OF NON-REGULAR SERVICE RETIRED PAY BY MEMBERS OF THE READY RESERVE ON ACTIVE FEDERAL STATUS OR ACTIVE DUTY FOR SIGNIFICANT PERIODS.

    (a) Reduced Eligibility Age- Section 12731 of title 10, United States Code, is amended--

      (1) in subsection (a), by striking paragraph (1) and inserting the following:

      `(1) has attained the eligibility age applicable under subsection (f) to that person;'; and

      (2) by adding at the end the following new subsection:

    `(f)(1) Subject to paragraph (2), the eligibility age for purposes of subsection (a)(1) is 60 years of age.

    `(2)(A) In the case of a person who as a member of the Ready Reserve serves on active duty or performs active service described in subparagraph (B) after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008, the eligibility age for purposes of subsection (a)(1) shall be reduced below 60 years of age by three months for each aggregate of 90 days on which such person so performs in any fiscal year after such date, subject to subparagraph (C). A day of duty may be included in only one aggregate of 90 days for purposes of this subparagraph.

    `(B)(i) Service on active duty described in this subparagraph is service on active duty pursuant to a call or order to active duty under a provision of law referred to in section 101(a)(13)(B) or under section 12301(d) of this title. Such service does not include service on active duty pursuant to a call or order to active duty under section 12310 of this title.

    `(ii) Active service described in this subparagraph is also service under a call to active service authorized by the President or the Secretary of Defense under section 502(f) of title 32 for purposes of responding to a national emergency declared by the President or supported by Federal funds.

    `(C) The eligibility age for purposes of subsection (a)(1) may not be reduced below 50 years of age for any person under subparagraph (A).'.

    (b) Continuation of Age 60 as Minimum Age for Eligibility of Non-Regular Service Retirees for Health Care- Section 1074(b) of such title is amended--

      (1) by inserting `(1)' after `(b)'; and

      (2) by adding at the end the following new paragraph:

    `(2) Paragraph (1) does not apply to a member or former member entitled to retired pay for non-regular service under chapter 1223 of this title who is under 60 years of age.'.

    (c) Administration of Related Provisions of Law or Policy- With respect to any provision of law, or of any policy, regulation, or directive of the executive branch that refers to a member or former member of the uniformed services as being eligible for, or entitled to, retired pay under chapter 1223 of title 10, United States Code, but for the fact that the member or former member is under 60 years of age, such provision shall be carried out with respect to that member or former member by substituting for the reference to being 60 years of age a reference to having attained the eligibility age applicable under subsection (f) of section 12731 of title 10, United States Code (as added by subsection (a)), to such member or former member for qualification for such retired pay under subsection (a) of such section.

SEC. 648. COMPUTATION OF YEARS OF SERVICE FOR PURPOSES OF RETIRED PAY FOR NON-REGULAR SERVICE.

    Section 12733(3) of title 10, United States Code, is amended--

      (1) in subparagraph (B), by striking `and' at the end;

      (2) in subparagraph (C), by striking the period and inserting `before the year of service that includes October 30, 2007; and'; and

      (3) by adding at the end the following new subparagraph:

        `(D) 130 days in the year of service that includes October 30, 2007, and in any subsequent year of service.'.

Subtitle E--Commissary and Nonappropriated Fund Instrumentality Benefits

SEC. 651. AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE BENEFITS FOR CERTAIN INVOLUNTARILY SEPARATED MEMBERS OF THE ARMED FORCES.

    (a) Resumption for Members Involuntarily Separated From Active Duty- Section 1146 of title 10, United States Code, is amended--

      (1) by inserting `(a) Members Involuntarily Separated From Active Duty- ' before `The Secretary of Defense';

      (2) in the first sentence, by striking `October 1, 1990, and ending on December 31, 2001' and inserting `October 1, 2007, and ending on December 31, 2012'; and

      (3) in the second sentence, by striking `the period beginning on October 1, 1994, and ending on December 31, 2001' and inserting `the same period'.

    (b) Extension to Members Involuntarily Separated From Selected Reserve- Such section is further amended by adding at the end the following new subsection:

    `(b) Members Involuntarily Separated From Selected Reserve- The Secretary of Defense shall prescribe regulations to allow a member of the Selected Reserve of the Ready Reserve who is involuntarily separated from the Selected Reserve as a result of the exercise of the force shaping authority of the Secretary concerned under section 647 of this title or other force shaping authority during the period beginning on October 1, 2007, and ending on December 31, 2012, to continue to use commissary and exchange stores during the two-year period beginning on the date of the involuntary separation of the member in the same manner as a member on active duty. The Secretary of Homeland Security shall implement this provision for Coast Guard members involuntarily separated during the same period.'.

SEC. 652. AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY OF EMPLOYEES OF NONAPPROPRIATED FUND INSTRUMENTALITIES TO COLLECT INDEBTEDNESS TO THE UNITED STATES.

    Section 5514 of title 5, United States Code, is amended--

      (1) in subsection (a)(5), by inserting `any nonappropriated fund instrumentality described in section 2105(c) of this title,' after `Commission,'; and

      (2) by adding at the end the following new subsection:

    `(e) An employee of a nonappropriated fund instrumentality described in section 2105(c) of this title is deemed an employee covered by this section.'.

Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus Authorities

SEC. 661. CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES OF THE UNIFORMED SERVICES.

    (a) Consolidation- Chapter 5 of title 37, United States Code, is amended--

      (1) by inserting before section 301 the following subchapter heading:

`SUBCHAPTER I--EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES';

      and

      (2) by adding at the end the following new subchapters:

`SUBCHAPTER II--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS AUTHORITIES

`Sec. 331. General bonus authority for enlisted members

    `(a) Authority to Provide Bonus- The Secretary concerned may pay a bonus under this section to a person, including a member of the armed forces, who--

      `(1) enlists in an armed force;

      `(2) enlists in or affiliates with a reserve component of an armed force;

      `(3) reenlists, voluntarily extends an enlistment, or otherwise agrees to serve--

        `(A) for a specified period in a designated career field, skill, or unit of an armed force; or

        `(B) under other conditions of service in an armed force;

      `(4) transfers from a regular component of an armed force to a reserve component of that same armed force or from a reserve component of an armed force to the regular component of that same armed force; or

      `(5) transfers from a regular component or reserve component of an armed force to a regular component or reserve component of another armed force, subject to the approval of the Secretary with jurisdiction over the armed force to which the member is transferring.

    `(b) Service Eligibility- A bonus authorized by subsection (a) may be paid to a person or member only if the person or member agrees under subsection (d)--

      `(1) to serve for a specified period in a designated career field, skill, unit, or grade; or

      `(2) to meet some other condition or conditions of service imposed by the Secretary concerned.

    `(c) Maximum Amount and Method of Payment-

      `(1) MAXIMUM AMOUNT- The Secretary concerned shall determine the amount of a bonus to be paid under this section, except that--

        `(A) a bonus paid under paragraph (1) or (2) of subsection (a) may not exceed $50,000 for a minimum two-year period of obligated service agreed to under subsection (d);

        `(B) a bonus paid under paragraph (3) of subsection (a) may not exceed $30,000 for each year of obligated service in a regular component agreed to under subsection (d);

        `(C) a bonus paid under paragraph (3) of subsection (a) may not exceed $15,000 for each year of obligated service in a reserve component agreed to under subsection (d); and

        `(D) a bonus paid under paragraph (4) or (5) of subsection (a) may not exceed $10,000.

      `(2) LUMP SUM OR INSTALLMENTS- A bonus under this section may be paid in a lump sum or in periodic installments, as determined by the Secretary concerned.

      `(3) FIXING BONUS AMOUNT- Upon acceptance by the Secretary concerned of the written agreement required by subsection (d), the total amount of the bonus to be paid under the agreement shall be fixed.

    `(d) Written Agreement- To receive a bonus under this section, a person or member determined to be eligible for the bonus shall enter into a written agreement with the Secretary concerned that specifies--

      `(1) the amount of the bonus;

      `(2) the method of payment of the bonus under subsection (c)(2);

      `(3) the period of obligated service; and

      `(4) the type or conditions of the service.

    `(e) Relationship to Other Pay and Allowances- A bonus paid to a person or member under this section is in addition to any other pay and allowance to which the person or member is entitled.

    `(f) Relationship to Prohibition on Bounties- A bonus authorized under this section is not a bounty for purposes of section 514(a) of title 10.

    `(g) Repayment- A person or member who receives a bonus under this section and who fails to complete the period of service, or meet the conditions of service, for which the bonus is paid, as specified in the written agreement under subsection (d), shall be subject to the repayment provisions of section 373 of this title.

    `(h) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`Sec. 332. General bonus authority for officers

    `(a) Authority To Provide Bonus- The Secretary concerned may pay a bonus under this section to a person, including an officer in the uniformed services, who--

      `(1) accepts a commission or appointment as an officer in a uniformed service;

      `(2) affiliates with a reserve component of a uniformed service;

      `(3) agrees to remain on active duty or to serve in an active status for a specific period as an officer in a uniformed service;

      `(4) transfers from a regular component of a uniformed service to a reserve component of that same uniformed service or from a reserve component of a uniformed service to the regular component of that same uniformed service; or

      `(5) transfers from a regular component or reserve component of a uniformed service to a regular component or reserve component of another uniformed service, subject to the approval of the Secretary with jurisdiction over the uniformed service to which the member is transferring.

    `(b) Service Eligibility- A bonus authorized by subsection (a) may be paid to a person or officer only if the person or officer agrees under subsection (d)--

      `(1) to serve for a specified period in a designated career field, skill, unit, or grade; or

      `(2) to meet some other condition or conditions of service imposed by the Secretary concerned.

    `(c) Maximum Amount and Method of Payment-

      `(1) MAXIMUM AMOUNT- The Secretary concerned shall determine the amount of a bonus to be paid under this section, except that--

        `(A) a bonus paid under paragraph (1) of subsection (a) may not exceed $60,000 for a minimum three-year period of obligated service agreed to under subsection (d);

        `(B) a bonus paid under paragraph (2) of subsection (a) may not exceed $12,000 for a minimum three-year period of obligated service agreed to under subsection (d);

        `(C) a bonus paid under paragraph (3) of subsection (a) may not exceed $50,000 for each year of obligated service in a regular component agreed to under subsection (d);

        `(D) a bonus paid under paragraph (3) of subsection (a) may not exceed $12,000 for each year of obligated service in a reserve component agreed to under subsection (d); and

        `(E) a bonus paid under paragraph (4) or (5) of subsection (a) may not exceed $10,000.

      `(2) LUMP SUM OR INSTALLMENTS- A bonus under this section may be paid in a lump sum or in periodic installments, as determined by the Secretary concerned.

      `(3) FIXING BONUS AMOUNT- Upon acceptance by the Secretary concerned of the written agreement required by subsection (d), the total amount of the bonus to be paid under the agreement shall be fixed.

    `(d) Written Agreement- To receive a bonus under this section, a person or officer determined to be eligible for the bonus shall enter into a written agreement with the Secretary concerned that specifies--

      `(1) the amount of the bonus;

      `(2) the method of payment of the bonus under subsection (c)(2);

      `(3) the period of obligated service; and

      `(4) the type or conditions of the service.

    `(e) Relationship to Other Pay and Allowances- The bonus paid to a person or officer under this section is in addition to any other pay and allowance to which the person or officer is entitled.

    `(f) Repayment- A person or officer who receives a bonus under this section and who fails to complete the period of service, or meet the conditions of service, for which the bonus is paid, as specified in the written agreement under subsection (d), shall be subject to the repayment provisions of section 373 of this title.

    `(g) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`Sec. 333. Special bonus and incentive pay authorities for nuclear officers

    `(a) Nuclear Officer Bonus- The Secretary of the Navy may pay a nuclear officer bonus under this section to a person, including an officer in the Navy, who--

      `(1) is selected for the officer naval nuclear power training program in connection with the supervision, operation, and maintenance of naval nuclear propulsion plants and agrees to serve, upon completion of such training, on active duty in connection with the supervision, operation, and maintenance of naval nuclear propulsion plants; or

      `(2) has the current technical and operational qualification for duty in connection with the supervision, operation, and maintenance of naval nuclear propulsion plants and agrees to remain on active duty in connection with the supervision, operation, and maintenance of naval nuclear propulsion plants.

    `(b) Nuclear Officer Incentive Pay- The Secretary of the Navy may pay nuclear officer incentive pay under this section to an officer in the Navy who--

      `(1) is entitled to basic pay under section 204 of this title; and

      `(2) remains on active duty for a specified period while maintaining current technical and operational qualifications, as approved by the Secretary, for duty in connection with the supervision, operation, and maintenance of naval nuclear propulsion plants.

    `(c) Additional Eligibility Criteria- The Secretary of the Navy may impose such additional criteria for the receipt of a nuclear officer bonus or nuclear officer incentive pay under this section as the Secretary determines to be appropriate.

    `(d) Maximum Amount and Method of Payment-

      `(1) MAXIMUM AMOUNT- The Secretary of the Navy shall determine the amounts of a nuclear officer bonus or nuclear officer incentive pay to be paid under this section, except that--

        `(A) a nuclear officer bonus paid under subsection (a) may not exceed $35,000 for each 12-month period of the agreement under subsection (e); and

        `(B) the amount of nuclear officer incentive paid under subsection (b) may not exceed $25,000 for each 12-month period of qualifying service.

      `(2) LUMP SUM OR INSTALLMENTS- A nuclear officer bonus or nuclear officer incentive pay under this section may be paid in a lump sum or in periodic installments.

      `(3) FIXING BONUS AMOUNT- Upon acceptance by the Secretary concerned of the written agreement required by subsection (e), the total amount of the nuclear officer bonus to be paid under the agreement shall be fixed.

    `(e) Written Agreement for Bonus-

      `(1) AGREEMENT REQUIRED- To receive a nuclear officer bonus under subsection (a), a person or officer determined to be eligible for the bonus shall enter into a written agreement with the Secretary of the Navy that specifies--

        `(A) the amount of the bonus;

        `(B) the method of payment of the bonus under subsection (d)(2);

        `(C) the period of obligated service; and

        `(D) the type or conditions of the service.

      `(2) REPLACEMENT AGREEMENT- An officer who is performing obligated service under an agreement for a nuclear officer bonus may execute a new agreement to replace the existing agreement if the amount to be paid under the new agreement will be higher than the amount to be paid under the existing agreement. The period of the new agreement shall be equal to or exceed the remaining term of the period of the officer's existing agreement. If a new agreement is executed under this paragraph, the existing agreement shall be cancelled, effective on the day before an anniversary date of the existing agreement occurring after the date on which the amount to be paid under this paragraph is increased.

    `(f) Relationship to Other Pay and Allowances- A nuclear officer bonus or nuclear officer incentive pay paid to a person or officer under this section is in addition to any other pay and allowance to which the person or officer is entitled, except that a person or officer may not receive a payment under this section and section 332 or 353 of this title for the same skill and period of service.

    `(g) Repayment- A person or officer who receives a nuclear officer bonus or nuclear officer incentive pay under this section and who fails to complete the officer naval nuclear power training program, maintain required technical and operational qualifications, complete the period of service, or meet the types or conditions of service for which the bonus or incentive pay is paid, as specified in the written agreement under subsection (e) in the case of a nuclear officer bonus, shall be subject to the repayment provisions of section 373 of this title.

    `(h) Regulations- This section shall be administered under regulations prescribed by the Secretary of the Navy.

    `(i) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`Sec. 334. Special aviation incentive pay and bonus authorities for officers

    `(a) Aviation Incentive Pay- The Secretary concerned may pay aviation incentive pay under this section to an officer in a regular or reserve component of a uniformed service who--

      `(1) is entitled to basic pay under section 204 of this title or compensation under section 206 of this title;

      `(2) maintains, or is in training leading to, an aeronautical rating or designation that qualifies the officer to engage in operational flying duty or proficiency flying duty;

      `(3) engages in, or is in training leading to, frequent and regular performance of operational flying duty or proficiency flying duty;

      `(4) engages in or remains in aviation service for a specified period; and

      `(5) meets such other criteria as the Secretary concerned determines appropriate.

    `(b) Aviation Bonus- The Secretary concerned may pay an aviation bonus under this section to an officer in a regular or reserve component of a uniformed service who--

      `(1) is entitled to aviation incentive pay under subsection (a);

      `(2) has completed any active duty service commitment incurred for undergraduate aviator training or is within one year of completing such commitment;

      `(3) executes a written agreement to remain on active duty in a regular component or to serve in an active status in a reserve component in aviation service for at least one year; and

      `(4) meets such other criteria as the Secretary concerned determines appropriate.

    `(c) Maximum Amount and Method of Payment-

      `(1) MAXIMUM AMOUNT- The Secretary concerned shall determine the amount of a bonus or incentive pay to be paid under this section, except that--

        `(A) aviation incentive pay under subsection (a) shall be paid at a monthly rate, not to exceed $850 per month; and

        `(B) an aviation bonus under subsection (b) may not exceed $25,000 for each 12-month period of obligated service agreed to under subsection (d).

      `(2) LUMP SUM OR INSTALLMENTS- A bonus under this section may be paid in a lump sum or in periodic installments, as determined by the Secretary concerned.

      `(3) FIXING BONUS AMOUNT- Upon acceptance by the Secretary concerned of the written agreement required by subsection (d), the total amount of the bonus to be paid under the agreement shall be fixed.

    `(d) Written Agreement for Bonus- To receive an aviation officer bonus under this section, an officer determined to be eligible for the bonus shall enter into a written agreement with the Secretary concerned that specifies--

      `(1) the amount of the bonus;

      `(2) the method of payment of the bonus under subsection (c)(2);

      `(3) the period of obligated service; and

      `(4) the type or conditions of the service.

    `(e) Reserve Component Officers Performing Inactive Duty Training- A reserve component officer who is entitled to compensation under section 206 of this title and who is authorized aviation incentive pay under this section may be paid an amount of incentive pay that is proportionate to the compensation received under section 206 for inactive-duty training.

    `(f) Relationship to Other Pay and Allowances-

      `(1) AVIATION INCENTIVE PAY- Aviation incentive pay paid to an officer under subsection (a) shall be in addition to any other pay and allowance to which the officer is entitled, except that an officer may not receive a payment under such subsection and section 351 or 353 of this title for the same skill and period of service.

      `(2) AVIATION BONUS- An aviation bonus paid to an officer under subsection (b) shall be in addition to any other pay and allowance to which the officer is entitled, except that an officer may not receive a payment under such subsection and section 332 or 353 of this title for the same skill and period of service.

    `(g) Repayment- An officer who receives aviation incentive pay or an aviation bonus under this section and who fails to fulfill the eligibility requirements for the receipt of the incentive pay or bonus or complete the period of service for which the incentive pay or bonus is paid, as specified in the written agreement under subsection (d) in the case of a bonus, shall be subject to the repayment provisions of section 373 of this title.

    `(h) Definitions- In this section:

      `(1) The term `aviation service' means service performed by an officer in a regular or reserve component (except a flight surgeon or other medical officer) while holding an aeronautical rating or designation or while in training to receive an aeronautical rating or designation.

      `(2) The term `operational flying duty' means flying performed under competent orders by rated or designated regular or reserve component officers while serving in assignments in which basic flying skills normally are maintained in the performance of assigned duties as determined by the Secretary concerned, and flying performed by members in training that leads to the award of an aeronautical rating or designation.

      `(3) The term `proficiency flying duty' means flying performed under competent orders by rated or designated regular or reserve component officers while serving in assignments in which such skills would normally not be maintained in the performance of assigned duties.

      `(4) The term `officer' includes an individual enlisted and designated as an aviation cadet under section 6911 of title 10.

    `(i) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`Sec. 335. Special bonus and incentive pay authorities for officers in health professions

    `(a) Health Professions Bonus- The Secretary concerned may pay a health professions bonus under this section to a person, including an officer in the uniformed services, who is a graduate of an accredited school in a health profession and who--

      `(1) accepts a commission or appointment as an officer in a regular or reserve component of a uniformed service, or affiliates with a reserve component of a uniformed service, and agrees to serve on active duty in a regular component or in an active status in a reserve component in a health profession;

      `(2) accepts a commission or appointment as an officer and whose health profession specialty is designated by the Secretary of Defense as a critically short wartime specialty; or

      `(3) agrees to remain on active duty or continue serving in an active status in a reserve component in a health profession.

    `(b) Health Professions Incentive Pay- The Secretary concerned may pay incentive pay under this section to an officer in a regular or reserve component of a uniformed service who--

      `(1) is entitled to basic pay under section 204 of this title or compensation under section 206 of this title; and

      `(2) is serving on active duty or in an active status in a designated health profession specialty or skill.

    `(c) Board Certification Incentive Pay- The Secretary concerned may pay board certification incentive pay under this section to an officer in a regular or reserve component of a uniformed service who--

      `(1) is entitled to basic pay under section 204 of this title or compensation under section 206 of this title;

      `(2) is board certified in a designated health profession specialty or skill; and

      `(3) is serving on active duty or in an active status in such designated health profession specialty or skill.

    `(d) Additional Eligibility Criteria- The Secretary concerned may impose such additional criteria for the receipt of a bonus or incentive pay under this section as the Secretary determines to be appropriate.

    `(e) Maximum Amount and Method of Payment-

      `(1) MAXIMUM AMOUNT- The Secretary concerned shall determine the amounts of a bonus or incentive pay to be paid under this section, except that--

        `(A) a health professions bonus paid under paragraph (1) of subsection (a) may not exceed $30,000 for each 12-month period of obligated service agreed to under subsection (f);

        `(B) a health professions bonus paid under paragraph (2) of subsection (a) may not exceed $100,000 for each 12-month period of obligated service agreed to under subsection (f);

        `(C) a health professions bonus paid under paragraph (3) of subsection (a) may not exceed $75,000 for each 12-month period of obligated service agreed to under subsection (f);

        `(D) health professions incentive pay under subsection (b) may be paid monthly and may not exceed, in any 12-month period--

          `(i) $100,000 for medical officers and dental surgeons; and

          `(ii) $15,000 for officers in other health professions; and

        `(E) board certification incentive pay under subsection (c) may not exceed $6,000 for each 12-month period an officer remains certified in the designated health profession specialty or skill.

      `(2) LUMP SUM OR INSTALLMENTS- A health professions bonus under subsection (a) may be paid in a lump sum or in periodic installments, as determined by the Secretary concerned. Board certification incentive pay under subsection (c) may be paid monthly, in a lump sum at the beginning of the certification period, or in periodic installments during the certification period, as determined by the Secretary concerned.

      `(3) FIXING BONUS AMOUNT- Upon acceptance by the Secretary concerned of the written agreement required by subsection (f), the total amount of the health professions bonus to be paid under the agreement shall be fixed.

    `(f) Written Agreement for Bonus- To receive a bonus under this section, an officer determined to be eligible for the bonus shall enter into a written agreement with the Secretary concerned that specifies--

      `(1) the amount of the bonus;

      `(2) the method of payment of the bonus under subsection (e)(2);

      `(3) the period of obligated service;

      `(4) whether the service will be performed on active duty or in an active status in a reserve component; and

      `(5) the type or conditions of the service.

    `(g) Reserve Component Officers- An officer in a reserve component authorized incentive pay under subsection (b) or (c) who is not serving on continuous active duty and is entitled to compensation under section 204 of this title or compensation under section 206 of this title may be paid a monthly amount of incentive pay that is proportionate to the basic pay or compensation received under this title.

    `(h) Relationship to Other Pay and Allowances-

      `(1) HEALTH PROFESSIONS BONUS- A bonus paid to a person or officer under subsection (a) shall be in addition to any other pay and allowance to which the person or officer is entitled, except that a person or officer may not receive a payment under such subsection and section 332 of this title for the same period of obligated service.

      `(2) HEALTH PROFESSIONS INCENTIVE PAY- Incentive pay paid to an officer under subsection (b) shall be in addition to any other pay and allowance to which an officer is entitled, except that an officer may not receive a payment under such subsection and section 353 of this title for the same skill and period of service.

      `(3) BOARD CERTIFICATION INCENTIVE PAY- Incentive pay paid to an officer under subsection (c) shall be in addition to any other pay and allowance to which an officer is entitled, except that an officer may not receive a payment under such subsection and section 353(b) of this title for the same skill and period of service covered by the certification.

    `(i) Repayment- An officer who receives a bonus or incentive pay under this section and who fails to fulfill the eligibility requirements for the receipt of the bonus or incentive pay or complete the period of service for which the bonus or incentive pay is paid, as specified in the written agreement under subsection (f) in the case of a bonus, shall be subject to the repayment provisions of section 373 of this title.

    `(j) Health Profession Defined- In this section, the term `health profession' means the following:

      `(1) Any health profession performed by officers in the Medical Corps of a uniformed service or by officers designated as a medical officer.

      `(2) Any health profession performed by officers in the Dental Corps of a uniformed service or by officers designated as a dental officer.

      `(3) Any health profession performed by officers in the Medical Service Corps of a uniformed service or by officers designated as a medical service officer or biomedical sciences officer.

      `(4) Any health profession performed by officers in the Medical Specialist Corps of a uniformed service or by officers designated as a medical specialist.

      `(5) Any health profession performed by officers of the Nurse Corps of a uniformed service or by officers designated as a nurse.

      `(6) Any health profession performed by officers in the Veterinary Corps of a uniformed service or by officers designated as a veterinary officer.

      `(7) Any health profession performed by officers designated as a physician assistant.

      `(8) Any health profession performed by officers in the regular or reserve corps of the Public Health Service.

    `(k) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`Sec. 351. Hazardous duty pay

    `(a) Hazardous Duty Pay- The Secretary concerned may pay hazardous duty pay under this section to a member of a regular or reserve component of the uniformed services entitled to basic pay under section 204 of this title or compensation under section 206 of this title who--

      `(1) performs duty in a hostile fire area designated by the Secretary concerned, is exposed to a hostile fire event, explosion of a hostile explosive device, or any other hostile action, or is on duty during a month in an area in which a hostile event occurred which placed the member in grave danger of physical injury;

      `(2) performs duty designated by the Secretary concerned as hazardous duty based upon the inherent dangers of that duty and risks of physical injury; or

      `(3) performs duty in a foreign area designated by the Secretary concerned as an area in which the member is subject to imminent danger of physical injury due to threat conditions.

    `(b) Maximum Amount- The amount of hazardous duty pay paid to a member under subsection (a) shall be based on the type of duty and the area in which the duty is performed, as follows:

      `(1) In the case of a member who performs duty in a designated hostile fire area, as described in subsection (a)(1), hazardous duty pay may not exceed $450 per month.

      `(2) In the case of a member who performs a designated hazardous duty, as described in subsection (a)(2), hazardous duty pay may not exceed $250 per month.

      `(3) In the case of a member who performs duty in a foreign area designated as an imminent danger area, as described in subsection (a)(3), hazardous duty pay may not exceed $250 per month.

    `(c) Method of Payment- Hazardous duty pay shall be paid on a monthly basis. A member who is eligible for hazardous duty pay by reason of subsection (a) shall receive the full monthly rate of hazardous duty pay authorized by the Secretary concerned under such paragraph, notwithstanding subsection (d).

    `(d) Reserve Component Members Performing Inactive Duty Training- A member of a reserve component entitled to compensation under section 206 of this title who is authorized hazardous duty pay under this section may be paid an amount of hazardous duty pay that is proportionate to the compensation received by the member under section 206 of this title for inactive-duty training.

    `(e) Administration and Retroactive Payments- The effective date for the designation of a hostile fire area, as described in paragraph (1) of subsection (a), and for the designation of a foreign area as an imminent danger area, as described in paragraph (3) of such subsection, may be a date that occurs before, on, or after the actual date of the designation by the Secretary concerned.

    `(f) Determination of Fact- Any determination of fact that is made in administering subsection (a) is conclusive. The determination may not be reviewed by any other officer or agency of the United States unless there has been fraud or gross negligence. However, the Secretary concerned may change the determination on the basis of new evidence or for other good cause. The regulations prescribed to administer this section shall define the activities that are considered hazardous for purposes of subsection (a)(2).

    `(g) Relationship to Other Pay and Allowances-

      `(1) IN ADDITION TO OTHER PAY AND ALLOWANCES- A member may be paid hazardous duty pay under this section in addition to any other pay and allowances to which the member is entitled. The regulations prescribed to administer this section shall address dual compensation under this section for multiple circumstances involving performance of a designated hazardous duty, as described in paragraph (2) of subsection (a), or for duty in certain designated areas, as described in paragraph (1) or (3) of such subsection, that is performed by a member during a single month of service.

      `(2) LIMITATION- A member may not receive hazardous duty pay under this section for a month for more than three qualifying instances described in subsection (a)(2).

    `(h) Prohibition on Variable Rates- The regulations prescribed to administer this section may not include varied criteria or rates for payment of hazardous duty for officers and enlisted members.

    `(i) Termination of Authority- No hazardous duty pay under this section may be paid after December 31, 2009.

`Sec. 352. Assignment pay or special duty pay

    `(a) Assignment or Special Duty Pay Authorized- The Secretary concerned may pay assignment or special duty pay under this section to a member of a regular or reserve component of the uniformed services who--

      `(1) is entitled to basic pay under section 204 of this title or compensation under section 206 of this title; and

      `(2) performs duties in an assignment, location, or unit designated by, and under the conditions of service specified by, the Secretary concerned.

    `(b) Maximum Amount and Method of Payment-

      `(1) LUMP SUM OR INSTALLMENTS- Assignment or special duty pay under subsection (a) may be paid monthly, in a lump sum, or in periodic installments other than monthly, as determined by the Secretary concerned.

      `(2) MAXIMUM MONTHLY AMOUNT- The maximum monthly amount of assignment or special duty pay may not exceed $5,000.

      `(3) MAXIMUM LUMP SUM AMOUNT- The amount of a lump sum payment of assignment or special duty pay payable to a member may not exceed the amount equal to the product of--

        `(A) the maximum monthly rate authorized under paragraph (2) at the time the member enters into a written agreement under subsection (c); and

        `(B) the number of continuous months in the period for which assignment or special duty pay will be paid pursuant to the agreement.

      `(4) MAXIMUM INSTALLMENT AMOUNT- The amount of each installment payment of assignment or special duty pay payable to a member on an installment basis may not exceed the amount equal to--

        `(A) the product of--

          `(i) a monthly rate specified in the written agreement entered into under subsection (c), which monthly rate may not exceed the maximum monthly rate authorized under paragraph (2) at the time the member enters into the agreement; and

          `(ii) the number of continuous months in the period for which the assignment or special duty pay will be paid; divided by

        `(B) the number of installments over such period.

      `(5) EFFECT OF EXTENSION- If a member extends an assignment or performance of duty specified in an agreement with the Secretary concerned under subsection (c), assignment or special duty pay for the period of the extension may be paid on a monthly basis, in a lump sum, or in installments, consistent with this subsection.

    `(c) Written Agreement-

      `(1) DISCRETIONARY FOR MONTHLY PAYMENTS- The Secretary concerned may require a member to enter into a written agreement with the Secretary in order to qualify for the payment of assignment or special duty pay on a monthly basis. The written agreement shall specify the period for which the assignment or special duty pay will be paid to the member and the monthly rate of the assignment or special duty pay.

      `(2) REQUIRED FOR LUMP SUM OR INSTALLMENT PAYMENTS- The Secretary concerned shall require a member to enter into a written agreement with the Secretary in order to qualify for payment of assignment or special duty pay on a lump sum or installment basis. The written agreement shall specify the period for which the assignment or special duty pay will be paid to the member and the amount of the lump sum or each periodic installment.

    `(d) Reserve Component Members Performing Inactive Duty Training- A member of a reserve component entitled to compensation under section 206 of this title who is authorized assignment or special duty pay under this section may be paid an amount of assignment or special duty pay that is proportionate to the compensation received by the member under section 206 of this title for inactive-duty training.

    `(e) Relationship to Other Pay and Allowances- Assignment or special duty pay paid to a member under this section is in addition to any other pay and allowances to which the member is entitled.

    `(f) Repayment- A member who receives assignment or special duty pay under this section and who fails to fulfill the eligibility requirements under subsection (a) for receipt of such pay shall be subject to the repayment provisions of section 373 of this title.

    `(g) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`Sec. 353. Skill incentive pay or proficiency bonus

    `(a) Skill Incentive Pay- The Secretary concerned may pay a monthly skill incentive pay to a member of a regular or reserve component of the uniformed services who--

      `(1) is entitled to basic pay under section 204 of this title or compensation under section 206 of this title; and

      `(2) serves in a career field or skill designated as critical by the Secretary concerned.

    `(b) Skill Proficiency Bonus- The Secretary concerned may pay a proficiency bonus to a member of a regular or reserve component of the uniformed services who--

      `(1) is entitled to basic pay under section 204 of this title or compensation under section 206 of this title; and

      `(2) is determined to have, and maintains, certified proficiency under subsection (d) in a skill designated as critical by the Secretary concerned.

    `(c) Maximum Amounts and Methods of Payment-

      `(1) SKILL INCENTIVE PAY- Skill incentive pay under subsection (a) shall be paid monthly in an amount not to exceed $1,000 per month.

      `(2) PROFICIENCY BONUS- A proficiency bonus under subsection (b) may be paid in a lump sum at the beginning of the proficiency certification period or in periodic installments during the proficiency certification period. The amount of the bonus may not exceed $12,000 for each 12-month period of certification. The Secretary concerned may not vary the criteria or rates for the proficiency bonus paid for officers and enlisted members.

    `(d) Certified Proficiency for Proficiency Bonus-

      `(1) CERTIFICATION REQUIRED- Proficiency in a designated critical skill for purposes of subsection (b) shall be subject to annual certification by the Secretary concerned.

      `(2) DURATION OF CERTIFICATION- A certification period for purposes of subsection (c)(2) shall expire at the end of the one-year period beginning on the first day of the first month beginning on or after the certification date.

      `(3) WAIVER- Notwithstanding paragraphs (1) and (2), the regulations prescribed to administer this section shall address the circumstances under which the Secretary concerned may waive the certification requirement under paragraph (1) or extend a certification period under paragraph (2).

    `(e) Written Agreement-

      `(1) DISCRETIONARY FOR SKILL INCENTIVE PAY- The Secretary concerned may require a member to enter into a written agreement with the Secretary in order to qualify for the payment of skill incentive pay under subsection (a). The written agreement shall specify the period for which the skill incentive pay will be paid to the member and the monthly rate of the pay.

      `(2) REQUIRED FOR PROFICIENCY BONUS- The Secretary concerned shall require a member to enter into a written agreement with the Secretary in order to qualify for payment of a proficiency bonus under subsection (b). The written agreement shall specify the amount of the proficiency bonus, the period for which the bonus will be paid, and the initial certification or recertification necessary for payment of the proficiency bonus.

    `(f) Reserve Component Members Performing Inactive Duty Training-

      `(1) PRORATION- A member of a reserve component entitled to compensation under section 206 of this title who is authorized skill incentive pay under subsection (a) or a skill proficiency bonus under subsection (b) may be paid an amount of the pay or bonus, as the case may be, that is proportionate to the compensation received by the member under section 206 of this title for inactive-duty training.

      `(2) EXCEPTION FOR FOREIGN LANGUAGE PROFICIENCY- No reduction in the amount of a skill proficiency bonus may be made under paragraph (1) in the case of a member of a reserve component who is authorized the bonus because of the member's proficiency in a foreign language.

    `(g) Repayment- A member who receives skill incentive pay or a proficiency bonus under this section and who fails to fulfill the eligibility requirement for receipt of the pay or bonus shall be subject to the repayment provisions of section 373 of this title.

    `(h) Relationship to Other Pays and Allowances- A member may not be paid more than one pay under this section in any month for the same period of service and skill. A member may be paid skill incentive pay or the proficiency bonus under this section in addition to any other pay and allowances to which the member is entitled, except that a member may not be paid skill incentive pay or a proficiency bonus under this section and hazardous duty pay under section 351 of this title for the same period of service in the same career field or skill.

    `(i) Termination of Authority- No agreement may be entered into under this section after December 31, 2009.

`SUBCHAPTER III--GENERAL PROVISIONS

`Sec. 371. Relationship to other incentives and pays

    `(a) Treatment- A bonus or incentive pay paid to a member of the uniformed services under subchapter II is in addition to any other pay and allowance to which a member is entitled, unless otherwise provided under this chapter.

    `(b) Exception- A member may not receive a bonus or incentive pay under both subchapter I and subchapter II for the same activity, skill, or period of service.

    `(c) Relationship to Other Computations- The amount of a bonus or incentive pay to which a member is entitled under subchapter II may not be included in computing the amount of--

      `(1) any increase in pay authorized by any other provision of this title; or

      `(2) any retired pay, retainer pay, separation pay, or disability severance pay.

`Sec. 372. Continuation of pays during hospitalization and rehabilitation resulting from wounds, injury, or illness incurred while on duty in a hostile fire area or exposed to an event of hostile fire or other hostile action

    `(a) Continuation of Pays- If a member of a regular or reserve component of a uniformed service incurs a wound, injury, or illness in the line of duty while serving in a combat operation or a combat zone, while serving in a hostile fire area, or while exposed to a hostile fire event, as described under section 351 of this title, and is hospitalized for treatment of the wound, injury, or illness, the Secretary concerned may continue to pay to the member, notwithstanding any provision of this chapter to the contrary, all pay and allowances (including any bonus, incentive pay, or similar benefit) that were being paid to the member at the time the member incurred the wound, injury, or illness.

    `(b) Duration- The payment of pay and allowances to a member under subsection (a) may continue until the end of the first month beginning after the earliest of the following dates:

      `(1) The date on which the member is returned for assignment to other than a medical or patient unit for duty.

      `(2) One year after the date on which the member is first hospitalized for the treatment of the wound, injury, or illness, except that the Secretary concerned may extend the termination date in six-month increments.

      `(3) The date on which the member is discharged, separated, or retired (including temporary disability retirement) from the uniformed services.

    `(c) Bonus, Incentive Pay, or Similar Benefit Defined- In this section, the term `bonus, incentive pay, or similar benefit' means a bonus, incentive pay, special pay, or similar payment paid to a member of the uniformed services under this title or title 10.

`Sec. 373. Repayment of unearned portion of bonus, incentive pay, or similar benefit when conditions of payment not met

    `(a) Repayment- Except as provided in subsection (b), a member of the uniformed services who is paid a bonus, incentive pay, or similar benefit, the receipt of which is contingent upon the member's satisfaction of certain service or eligibility requirements, shall repay to the United States any unearned portion of the bonus, incentive pay, or similar benefit if the member fails to satisfy any such service or eligibility requirement.

    `(b) Exceptions- The regulations prescribed to administer this section may specify procedures for determining the circumstances under which an exception to the required repayment may be granted.

    `(c) Effect of Bankruptcy- An obligation to repay the United States under this section is, for all purposes, a debt owed the United States. A discharge in bankruptcy under title 11 does not discharge a person from such debt if the discharge order is entered less than five years after--

      `(1) the date of the termination of the agreement or contract on which the debt is based; or

      `(2) in the absence of such an agreement or contract, the date of the termination of the service on which the debt is based.

    `(d) Definitions- In this section:

      `(1) The term `bonus, incentive pay, or similar benefit' means a bonus, incentive pay, special pay, or similar payment, or an educational benefit or stipend, paid to a member of the uniformed services under a provision of law that refers to the repayment requirements of this section or section 303a(e) of this title.

      `(2) The term `service', as used in subsection (c)(2), refers to an obligation willingly undertaken by a member of the uniformed services, in exchange for a bonus, incentive pay, or similar benefit offered by the Secretary concerned--

        `(A) to a member in a regular or reserve component who remains on active duty or in an active status;

        `(B) to perform duty in a specified skill, with or without a specified qualification or credential;

        `(C) to perform duty in a specified assignment, location or unit; or

        `(D) to perform duty for a specified period of time.

`Sec. 374. Regulations

    `This subchapter and subchapter II shall be administered under regulations prescribed by--

      `(1) the Secretary of Defense, with respect to the armed forces under the jurisdiction of the Secretary of Defense;

      `(2) the Secretary of Homeland Security, with respect to the Coast Guard when it is not operating as a service in the Navy;

      `(3) the Secretary of Health and Human Services, with respect to the commissioned corps of the Public Health Service; and

      `(4) the Secretary of Commerce, with respect to the National Oceanic and Atmospheric Administration.'.

    (b) Transfer of 15-Year Career Status Bonus to Subchapter II-

      (1) TRANSFER- Section 322 of title 37, United States Code, is transferred to appear after section 353 of subchapter II of chapter 5 of such title, as added by subsection (a), and is redesignated as section 354.

      (2) CONFORMING AMENDMENT- Subsection (f) of such section, as so transferred and redesignated, is amended by striking `section 303a(e)' and inserting `section 373'.

      (3) CROSS REFERENCES- Sections 1401a, 1409(b)(2), and 1410 of title 10, United States Code, are amended by striking `section 322' each place it appears and inserting `section 322 (as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2008) or section 354'.

    (c) Transfer of Retention Incentives for Members Qualified in Critical Military Skills or Assigned to High Priority Units-

      (1) TRANSFER- Section 323 of title 37, United States Code, as amended by sections 614 and 622, is transferred to appear after section 354 of subchapter II of chapter 5 of such title, as transferred and redesignated by subsection (b)(1), and is redesignated as section 355.

      (2) CONFORMING AMENDMENT- Subsection (g) of such section, as so transferred and redesignated, is amended by striking `section 303a(e)' and inserting `section 373'.

    (d) Clerical Amendment- The table of sections at the beginning of chapter 5 of title 37, United States Code, is amended to read as follows:

`subchapter i--existing special pay, incentive pay, and bonus authorities

      `Sec.

      `301. Incentive pay: hazardous duty.

      `301a. Incentive pay: aviation career.

      `301b. Special pay: aviation career officers extending period of active duty.

      `301c. Incentive pay: submarine duty.

      `301d. Multiyear retention bonus: medical officers of the armed forces.

      `301e. Multiyear retention bonus: dental officers of the armed forces.

      `302. Special pay: medical officers of the armed forces.

      `302a. Special pay: optometrists.

      `302b. Special pay: dental officers of the armed forces.

      `302c. Special pay: psychologists and nonphysician health care providers.

      `302d. Special pay: accession bonus for registered nurses.

      `302e. Special pay: nurse anesthetists.

      `302f. Special pay: reserve, recalled, or retained health care officers.

      `302g. Special pay: Selected Reserve health care professionals in critically short wartime specialties.

      `302h. Special pay: accession bonus for dental officers.

      `302i. Special pay: pharmacy officers.

      `302j. Special pay: accession bonus for pharmacy officers.

      `302k. Special pay: accession bonus for medical officers in critically short wartime specialties.

      `302l. Special pay: accession bonus for dental specialist officers in critically short wartime specialties.

      `303. Special pay: veterinarians.

      `303a. Special pay: general provisions.

      `303b. Waiver of board certification requirements.

      `304. Special pay: diving duty.

      `305. Special pay: hardship duty pay.

      `305a. Special pay: career sea pay.

      `305b. Special pay: service as member of Weapons of Mass Destruction Civil Support Team.

      `306. Special pay: officers holding positions of unusual responsibility and of critical nature.

      `306a. Special pay: members assigned to international military headquarters.

      `307. Special pay: special duty assignment pay for enlisted members.

      `307a. Special pay: assignment incentive pay.

      `308. Special pay: reenlistment bonus.

      `308b. Special pay: reenlistment bonus for members of the Selected Reserve.

      `308c. Special pay: bonus for affiliation or enlistment in the Selected Reserve.

      `308d. Special pay: members of the Selected Reserve assigned to certain high priority units.

      `308g. Special pay: bonus for enlistment in elements of the Ready Reserve other than the Selected Reserve.

      `308h. Special pay: bonus for reenlistment, enlistment, or voluntary extension of enlistment in elements of the Ready Reserve other than the Selected Reserve.

      `308i. Special pay: prior service enlistment bonus.

      `308j. Special pay: affiliation bonus for officers in the Selected Reserve.

      `309. Special pay: enlistment bonus.

      `310. Special pay: duty subject to hostile fire or imminent danger.

      `312. Special pay: nuclear-qualified officers extending period of active duty.

      `312b. Special pay: nuclear career accession bonus.

      `312c. Special pay: nuclear career annual incentive bonus.

      `314. Special pay or bonus: qualified members extending duty at designated locations overseas.

      `315. Special pay: engineering and scientific career continuation pay.

      `316. Special pay: bonus for members with foreign language proficiency.

      `317. Special pay: officers in critical acquisition positions extending period of active duty.

      `318. Special pay: special warfare officers extending period of active duty.

      `319. Special pay: surface warfare officer continuation pay.

      `320. Incentive pay: career enlisted flyers.

      `321. Special pay: judge advocate continuation pay.

      `324. Special pay: accession bonus for new officers in critical skills.

      `325. Incentive bonus: savings plan for education expenses and other contingencies.

      `326. Incentive bonus: conversion to military occupational specialty to ease personnel shortage.

      `327. Incentive bonus: transfer between armed forces.

      `328. Combat-related injury rehabilitation pay.

      `329. Incentive bonus: retired members and reserve component members volunteering for high-demand, low-density assignments.

      `330. Special pay: accession bonus for officer candidates.

`subchapter ii--consolidation of special pay, incentive pay, and bonus authorities

      `331. General bonus authority for enlisted members.

      `332. General bonus authority for officers.

      `333. Special bonus and incentive pay authorities for nuclear officers.

      `334. Special aviation incentive pay and bonus authorities for officers.

      `335. Special bonus and incentive pay authorities for officers in health professions.

      `351. Hazardous duty pay.

      `352. Assignment pay or special duty pay.

      `353. Skill incentive pay or proficiency bonus.

      `354. Special pay: 15-year career status bonus for members entering service on or after August 1, 1986.

      `355. Special pay: retention incentives for members qualified in critical military skills or assigned to high priority units.

`subchapter iii--general provisions

      `371. Relationship to other incentives and pays.

      `372. Continuation of pays during hospitalization and rehabilitation resulting from wounds, injury, or illness incurred while on duty in a hostile fire area or exposed to an event of hostile fire or other hostile action.

      `373. Repayment of unearned portion of bonus, incentive pay, or similar benefit when conditions of payment not met.

      `374. Regulations.'.

SEC. 662. TRANSITIONAL PROVISIONS.

    (a) Implementation Plan-

      (1) DEVELOPMENT- The Secretary of Defense shall develop a plan to implement subchapters II and III of chapter 5 of title 37, United States Code, as added by section 661(a), and to correspondingly transition all of the special and incentive pay programs for members of the uniformed services solely to provisions of such subchapters.

      (2) SUBMISSION- Not later than one year after the date of the enactment of this Act, the Secretary shall submit the implementation plan to the congressional defense committees.

    (b) Transition Period- During a transition period of not more than 10 years beginning on the date of the enactment of this Act, the Secretary of Defense, the Secretary of a military department, and the Secretaries referred to in subsection (d) may continue to use the authorities in provisions in subchapter I of chapter 5 of title 37, United States Code, as designated by section 661(a), but subject to the terms of such provisions and such modifications as the Secretary of Defense may include in the implementation plan, to provide bonuses and special and incentive pays for members of the uniformed services.

    (c) Notice of Implementation of New Authorities- Not less than 30 days before the date on which a special pay or bonus authority provided under subchapter II of chapter 5 of title 37, United States Code, as added by section 661(a), is first utilized, the Secretary of Defense shall submit to the congressional defense committees a notice of the implementation of the authority, including whether, as a result of implementation of the authority, a corresponding authority in subchapter I of such chapter, as designated by section 661(a), will no longer be used.

    (d) Coordination- The Secretary of Defense shall prepare the implementation plan in coordination with--

      (1) the Secretary of Homeland Security, with respect to the Coast Guard;

      (2) the Secretary of Health and Human Services, with respect to the commissioned corps of the Public Health Service; and

      (3) the Secretary of Commerce, with respect to the National Oceanic and Atmospheric Administration.

    (e) No Effect on Fiscal Year 2008 Obligations- During fiscal year 2008, obligations incurred under subchapters I, II, and III of chapter 5 of title 37, United States Code, as amended by section 661, to provide bonuses, incentive pays, special pays, and similar payments to members of the uniformed services under such subchapters may not exceed the obligations that would be incurred in the absence of the amendments made by such section.

Subtitle G--Other Matters

SEC. 671. REFERRAL BONUS AUTHORITIES.

    (a) Codification and Modification of Army Referral Bonus Authority-

      (1) ARMY REFERRAL BONUS- Chapter 333 of title 10, United States Code, is amended by inserting after section 3251 the following new section:

`Sec. 3252. Bonus to encourage Army personnel to refer persons for enlistment in the Army

    `(a) Authority To Pay Bonus-

      `(1) AUTHORITY- The Secretary of the Army may pay a bonus under this section to an individual referred to in paragraph (2) who refers to an Army recruiter a person who has not previously served in an armed force and who, after such referral, enlists in the regular component of the Army or in the Army National Guard or Army Reserve.

      `(2) INDIVIDUALS ELIGIBLE FOR BONUS- Subject to subsection (c), the following individuals are eligible for a referral bonus under this section:

        `(A) A member in the regular component of the Army.

        `(B) A member of the Army National Guard.

        `(C) A member of the Army Reserve.

        `(D) A member of the Army in a retired status, including a member under 60 years of age who, but for age, would be eligible for retired pay.

        `(E) A civilian employee of the Department of the Army.

    `(b) Referral- For purposes of this section, a referral for which a bonus may be paid under subsection (a) occurs--

      `(1) when the individual concerned contacts an Army recruiter on behalf of a person interested in enlisting in the Army; or

      `(2) when a person interested in enlisting in the Army contacts the Army recruiter and informs the recruiter of the role of the individual concerned in initially recruiting the person.

    `(c) Certain Referrals Ineligible-

      `(1) REFERRAL OF IMMEDIATE FAMILY- A member of the Army or civilian employee of the Department of the Army may not be paid a bonus under subsection (a) for the referral of an immediate family member.

      `(2) MEMBERS IN RECRUITING ROLES- A member of the Army or civilian employee of the Department of the Army serving in a recruiting or retention assignment, or assigned to other duties regarding which eligibility for a bonus under subsection (a) could (as determined by the Secretary) be perceived as creating a conflict of interest, may not be paid a bonus under subsection (a).

      `(3) JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTORS- A member of the Army detailed under subsection (c)(1) of section 2031 of this title to serve as an administrator or instructor in the Junior Reserve Officers' Training Corps program or a retired member of the Army employed as an administrator or instructor in the program under subsection (d) of such section may not be paid a bonus under subsection (a).

    `(d) Amount of Bonus- The amount of the bonus payable for a referral under subsection (a) may not exceed $2,000. The amount shall be payable as provided in subsection (e).

    `(e) Payment- A bonus payable for a referral of a person under subsection (a) shall be paid as follows:

      `(1) Not more than $1,000 shall be paid upon the commencement of basic training by the person.

      `(2) Not more than $1,000 shall be paid upon the completion of basic training and individual advanced training by the person.

    `(f) Relation to Prohibition on Bounties- The referral bonus authorized by this section is not a bounty for purposes of section 514(a) of this title.

    `(g) Coordination With Receipt of Retired Pay- A bonus paid under this section to a member of the Army in a retired status is in addition to any compensation to which the member is entitled under this title, title 37 or 38, or any other provision of law.

    `(h) Duration of Authority- A bonus may not be paid under subsection (a) with respect to any referral that occurs after December 31, 2008.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 3251 the following new item:

      `3252. Bonus to encourage Army personnel to refer persons for enlistment in the Army.'.

    (b) Bonus for Referral of Persons for Appointment as Officers To Serve in Health Professions-

      (1) HEALTH PROFESSIONS REFERRAL BONUS- Chapter 53 of such title is amended by inserting before section 1031 the following new section:

`Sec. 1030. Bonus to encourage Department of Defense personnel to refer persons for appointment as officers to serve in health professions

    `(a) Authority To Pay Bonus-

      `(1) AUTHORITY- The Secretary of Defense may authorize the appropriate Secretary to pay a bonus under this section to an individual referred to in paragraph (2) who refers to a military recruiter a person who has not previously served in an armed force and, after such referral, takes an oath of enlistment that leads to appointment as a commissioned officer, or accepts an appointment as a commissioned officer, in an armed force in a health profession designated by the appropriate Secretary for purposes of this section.

      `(2) INDIVIDUALS ELIGIBLE FOR BONUS- Subject to subsection (c), the following individuals are eligible for a referral bonus under this section:

        `(A) A member of the armed forces in a regular component of the armed forces.

        `(B) A member of the armed forces in a reserve component of the armed forces.

        `(C) A member of the armed forces in a retired status, including a member under 60 years of age who, but for age, would be eligible for retired or retainer pay.

        `(D) A civilian employee of a military department or the Department of Defense.

    `(b) Referral- For purposes of this section, a referral for which a bonus may be paid under subsection (a) occurs--

      `(1) when the individual concerned contacts a military recruiter on behalf of a person interested in taking an oath of enlistment that leads to appointment as a commissioned officer, or accepting an appointment as a commissioned officer, as applicable, in an armed force in a health profession; or

      `(2) when a person interested in taking an oath of enlistment that leads to appointment as a commissioned officer, or accepting an appointment as a commissioned officer, as applicable, in an armed force in a health profession contacts a military recruiter and informs the recruiter of the role of the individual concerned in initially recruiting the person.

    `(c) Certain Referrals Ineligible-

      `(1) REFERRAL OF IMMEDIATE FAMILY- A member of the armed forces or civilian employee of a military department or the Department of Defense may not be paid a bonus under subsection (a) for the referral of an immediate family member.

      `(2) MEMBERS IN RECRUITING ROLES- A member of the armed forces or civilian employee of a military department or the Department of Defense serving in a recruiting or retention assignment, or assigned to other duties regarding which eligibility for a bonus under subsection (a) could (as determined by the appropriate Secretary) be perceived as creating a conflict of interest, may not be paid a bonus under subsection (a).

      `(3) JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTORS- A member of the armed forces detailed under subsection (c)(1) of section 2031 of this title to serve as an administrator or instructor in the Junior Reserve Officers' Training Corps program or a retired member of the armed forces employed as an administrator or instructor in the program under subsection (d) of such section may not be paid a bonus under subsection (a).

    `(d) Amount of Bonus- The amount of the bonus payable for a referral under subsection (a) may not exceed $2,000. The amount shall be payable as provided in subsection (e).

    `(e) Payment- A bonus payable for a referral of a person under subsection (a) shall be paid as follows:

      `(1) Not more than $1,000 shall be paid upon the execution by the person of an agreement to serve as an officer in a health profession in an armed force for not less than 3 years,

      `(2) Not more than $1,000 shall be paid upon the completion by the person of the initial period of military training as an officer.

    `(f) Relation to Prohibition on Bounties- The referral bonus authorized by this section is not a bounty for purposes of section 514(a) of this title.

    `(g) Coordination With Receipt of Retired Pay- A bonus paid under this section to a member of the armed forces in a retired status is in addition to any compensation to which the member is entitled under this title, title 37 or 38, or any other provision of law.

    `(h) Appropriate Secretary Defined- In this section, the term `appropriate Secretary' means--

      `(1) the Secretary of the Army, with respect to matters concerning the Army;

      `(2) the Secretary of the Navy, with respect to matters concerning the Navy, the Marine Corps, and the Coast Guard when it is operating as a service in the Navy;

      `(3) the Secretary of the Air Force, with respect to matters concerning the Air Force; and

      `(4) the Secretary of Defense, with respect to personnel of the Department of Defense.

    `(i) Duration of Authority- A bonus may not be paid under subsection (a) with respect to any referral that occurs after December 31, 2008.'.

      (2) CLERICAL AMENDMENTS- The table of sections at the beginning of such chapter is amended by inserting before the item relating to section 1031 the following new item:

      `1030. Bonus to encourage Department of Defense personnel to refer persons for appointment as officers to serve in health professions.'.

    (c) Repeal of Superseded army Referral Bonus Authority-

      (1) REPEAL- Section 645 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) is repealed.

      (2) PAYMENT OF BONUSES UNDER SUPERSEDED AUTHORITY- Any bonus payable under section 645 of the National Defense Authorization Act for Fiscal Year 2006, as in effect before its repeal by paragraph (1), shall remain payable after that date and shall be paid in accordance with the provisions of such section, as in effect on the day before the date of the enactment of this Act.

SEC. 672. EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Additional Educational Loans Eligible for Repayment- Paragraph (1) of subsection (a) of section 16301 of title 10, United States Code, is amended--

      (1) by striking `or' at the end of subparagraph (B);

      (2) by striking the period at the end of subparagraph (C) and inserting `; or'; and

      (3) by inserting after subparagraph (C) the following new subparagraph:

      `(D) any loan incurred for educational purposes made by a lender that is--

        `(i) an agency or instrumentality of a State;

        `(ii) a financial or credit institution (including an insurance company) that is subject to examination and supervision by an agency of the United States or any State;

        `(iii) a pension fund approved by the Secretary for purposes of this section; or

        `(iv) a nonprofit private entity designated by a State, regulated by that State, and approved by the Secretary for purposes of this section.'.

    (b) Participation of Officers in Program- Such subsection is further amended--

      (1) in paragraph (2)--

        (A) by striking `Except as provided in paragraph (3), the Secretary' and inserting `The Secretary'; and

        (B) by striking `an enlisted member of the Selected Reserve of the Ready Reserve of an armed force in a reserve component and military specialty' and inserting `a member of the Selected Reserve of the Ready Reserve of an armed force in a reserve component and in an officer program or military specialty'; and

      (2) by striking paragraph (3).

    (c) Clerical Amendments-

      (1) SECTION HEADING- The heading of such section is amended to read as follows:

`Sec. 16301. Education loan repayment program: members of Selected Reserve'.

      (2) TABLE OF SECTIONS- The table of sections at the beginning of chapter 1609 of such title is amended by striking the item relating to section 16301 and inserting the following new item:

      `16301. Education loan repayment program: members of Selected Reserve.'.

SEC. 673. ENSURING ENTRY INTO UNITED STATES AFTER TIME ABROAD FOR PERMANENT RESIDENT ALIEN MILITARY SPOUSES AND CHILDREN.

    Section 284 of the Immigration and Nationality Act (8 U.S.C. 1354) is amended--

      (1) by striking `Nothing' and inserting `(a) Nothing'; and

      (2) by adding at the end the following new subsection:

    `(b) If a person lawfully admitted for permanent residence is the spouse or child of a member of the Armed Forces of the United States, is authorized to accompany the member and reside abroad with the member pursuant to the member's official orders, and is so accompanying and residing with the member (in marital union if a spouse), then the residence and physical presence of the person abroad shall not be treated as--

      `(1) an abandonment or relinquishment of lawful permanent resident status for purposes of clause (i) of section 101(a)(13)(C); or

      `(2) an absence from the United States for purposes of clause (ii) of such section.'.

SEC. 674. OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND CHILDREN.

    (a) Spouses- Section 319 of the Immigration and Nationality Act (8 U.S.C. 1430) is amended by adding at the end the following new subsection:

    `(e)(1) In the case of a person lawfully admitted for permanent residence in the United States who is the spouse of a member of the Armed Forces of the United States, is authorized to accompany such member and reside abroad with the member pursuant to the member's official orders, and is so accompanying and residing with the member in marital union, such residence and physical presence abroad shall be treated, for purposes of subsection (a) and section 316(a), as residence and physical presence in--

      `(A) the United States; and

      `(B) any State or district of the Department of Homeland Security in the United States.

    `(2) Notwithstanding any other provision of law, a spouse described in paragraph (1) shall be eligible for naturalization proceedings overseas pursuant to section 1701(d) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 8 U.S.C. 1443a).'.

    (b) Children- Section 322 of the Immigration and Nationality Act (8 U.S.C. 1433) is amended by adding at the end the following new subsection:

    `(d) In the case of a child of a member of the Armed Forces of the United States who is authorized to accompany such member and reside abroad with the member pursuant to the member's official orders, and is so accompanying and residing with the member--

      `(1) any period of time during which the member of the Armed Forces is residing abroad pursuant to official orders shall be treated, for purposes of subsection (a)(2)(A), as physical presence in the United States;

      `(2) subsection (a)(5) shall not apply; and

      `(3) the oath of allegiance described in subsection (b) may be subscribed to abroad pursuant to section 1701(d) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 8 U.S.C. 1443a).'.

    (c) Overseas Naturalization Authority- Section 1701(d) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 8 U.S.C. 1443a) is amended--

      (1) in the subsection heading, by inserting `and Their Spouses and Children' after `Forces'; and

      (2) by inserting `, and persons made eligible for naturalization by section 319(e) or 322(d) of such Act,' after `Armed Forces'.

    (d) Effective Date- The amendments made by this section shall take effect on the date of enactment of this Act and apply to any application for naturalization or issuance of a certificate of citizenship pending on or after such date.

SEC. 675. MODIFICATION OF AMOUNT OF BACK PAY FOR MEMBERS OF NAVY AND MARINE CORPS SELECTED FOR PROMOTION WHILE INTERNED AS PRISONERS OF WAR DURING WORLD WAR II TO TAKE INTO ACCOUNT CHANGES IN CONSUMER PRICE INDEX.

    (a) Modification- Section 667(c) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-170) is amended by adding at the end the following new paragraph:

    `(3) The amount determined for a person under paragraph (1) shall be increased to reflect increases in cost of living since the basic pay referred to in paragraph (1)(B) was paid to or for that person, calculated on the basis of the Consumer Price Index (all items--United States city average) published monthly by the Bureau of Labor Statistics.'.

    (b) Recalculation of Previous Payments- In the case of any payment of back pay made to or for a person under section 667 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 before the date of the enactment of this Act, the Secretary of the Navy shall--

      (1) recalculate the amount of back pay to which the person is entitled by reason of the amendment made by subsection (a); and

      (2) if the amount of back pay, as so recalculated, exceeds the amount of back pay so paid, pay the person, or the surviving spouse of the person, an amount equal to the excess.

TITLE VII--HEALTH CARE PROVISIONS

Subtitle A--Improvements to Military Health Benefits

      Sec. 701. One-year extension of prohibition on increases in certain health care costs for members of the uniformed services.

      Sec. 702. Temporary prohibition on increase in copayments under retail pharmacy system of pharmacy benefits program.

      Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal procurement of pharmaceuticals.

      Sec. 704. Stipend for members of reserve components for health care for certain dependents.

      Sec. 705. Authority for expansion of persons eligible for continued health benefits coverage.

      Sec. 706. Continuation of eligibility for TRICARE Standard coverage for certain members of the Selected Reserve.

      Sec. 707. Extension of pilot program for health care delivery.

      Sec. 708. Inclusion of mental health care in definition of health care and report on mental health care services.

Subtitle B--Studies and Reports

      Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE Extra.

      Sec. 712. Report on training in preservation of remains under combat or combat-related conditions.

      Sec. 713. Report on patient satisfaction surveys.

      Sec. 714. Report on medical physical examinations of members of the Armed Forces before their deployment.

      Sec. 715. Report and study on multiple vaccinations of members of the Armed Forces.

      Sec. 716. Review of gender- and ethnic group-specific mental health services and treatment for members of the Armed Forces.

      Sec. 717. Licensed mental health counselors and the TRICARE program.

      Sec. 718. Report on funding of the Department of Defense for health care.

Subtitle C--Other Matters

      Sec. 721. Prohibition on conversion of military medical and dental positions to civilian medical and dental positions.

      Sec. 722. Establishment of Joint Pathology Center.

Subtitle A--Improvements to Military Health Benefits

SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE COSTS FOR MEMBERS OF THE UNIFORMED SERVICES.

    (a) Charges Under Contracts for Medical Care- Section 1097(e) of title 10, United States Code, is amended by striking `September 30, 2007' and inserting `September 30, 2008'.

    (b) Charges for Inpatient Care- Section 1086(b)(3) of such title is amended by striking `September 30, 2007.' and inserting `September 30, 2008'.

    (c) Premiums Under TRICARE Coverage for Certain Members in the Selected Reserve- Section 1076d(d)(3) of such title is amended by striking `September 30, 2007' and inserting `September 30, 2008'.

SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    During the period beginning on October 1, 2007, and ending on September 30, 2008, the cost sharing requirements established under paragraph (6) of section 1074g(a) of title 10, United States Code, for pharmaceutical agents available through retail pharmacies covered by paragraph (2)(E)(ii) of such section may not exceed amounts as follows:

      (1) In the case of generic agents, $3.

      (2) In the case of formulary agents, $9.

      (3) In the case of nonformulary agents, $22.

SEC. 703. INCLUSION OF TRICARE RETAIL PHARMACY PROGRAM IN FEDERAL PROCUREMENT OF PHARMACEUTICALS.

    (a) In General- Section 1074g of title 10, United States Code, is amended--

      (1) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

      (2) by inserting after subsection (e) the following new subsection (f):

    `(f) Procurement of Pharmaceuticals by TRICARE Retail Pharmacy Program- With respect to any prescription filled on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008, the TRICARE retail pharmacy program shall be treated as an element of the Department of Defense for purposes of the procurement of drugs by Federal agencies under section 8126 of title 38 to the extent necessary to ensure that pharmaceuticals paid for by the Department of Defense that are provided by pharmacies under the program to eligible covered beneficiaries under this section are subject to the pricing standards in such section 8126.'.

    (b) Regulations- The Secretary of Defense shall, after consultation with the other administering Secretaries under chapter 55 of title 10, United States Code, modify the regulations under subsection (h) of section 1074g of title 10, United States Code (as redesignated by subsection (a)(1) of this section), to implement the requirements of subsection (f) of section 1074g of title 10, United States Code (as amended by subsection (a)(2) of this section). The Secretary shall so modify such regulations not later than December 31, 2007.

SEC. 704. STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR HEALTH CARE FOR CERTAIN DEPENDENTS.

    The Secretary of Defense may, pursuant to regulations prescribed by the Secretary, pay a stipend to a member of a reserve component of the Armed Forces who is called or ordered to active duty for a period of more than 30 days for purposes of maintaining civilian health care coverage for a dependant whom the Secretary determines to possess a special health care need that would be best met by remaining in the member's civilian health plan. In making such determination, the Secretary shall consider whether--

      (1) the dependent of the member was receiving treatment for the special health care need before the call or order to active duty of the member; and

      (2) the call or order to active duty would result in an interruption in treatment or a change in health care provider for such treatment.

SEC. 705. AUTHORITY FOR EXPANSION OF PERSONS ELIGIBLE FOR CONTINUED HEALTH BENEFITS COVERAGE.

    (a) Authority To Specify Additional Eligible Persons- Subsection (b) of section 1078a of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(4) Any other person specified in regulations prescribed by the Secretary of Defense for purposes of this paragraph who loses entitlement to health care services under this chapter or section 1145 of this title, subject to such terms and conditions as the Secretary shall prescribe in the regulations.'.

    (b) Election of Coverage- Subsection (d) of such section is amended by adding at the end the following new paragraph:

      `(4) In the case of a person described in subsection (b)(4), by such date as the Secretary shall prescribe in the regulations required for purposes of that subsection.'.

    (c) Period of Coverage- Subsection (g)(1) of such section is amended--

      (1) in subparagraph (B), by striking `and' at the end;

      (2) in subparagraph (C), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new subparagraph:

      `(D) in the case of a person described in subsection (b)(4), the date that is 36 months after the date on which the person loses entitlement to health care services as described in that subsection.'.

SEC. 706. CONTINUATION OF ELIGIBILITY FOR TRICARE STANDARD COVERAGE FOR CERTAIN MEMBERS OF THE SELECTED RESERVE.

    (a) In General- Section 706(f) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2282; 10 U.S.C. 1076d note) is amended--

      (1) by striking `Enrollments' and inserting `(1) Except as provided in paragraph (2), enrollments'; and

      (2) by adding at the end the following new paragraph:

    `(2) The enrollment of a member in TRICARE Standard that is in effect on the day before health care under TRICARE Standard is provided pursuant to the effective date in subsection (g) shall not be terminated by operation of the exclusion of eligibility under subsection (a)(2) of such section 1076d, as so amended, for the duration of the eligibility of the member under TRICARE Standard as in effect on October 16, 2006.'.

    (b) Effective Date- The amendments made by subsection (a) shall take effect on October 1, 2007.

SEC. 707. EXTENSION OF PILOT PROGRAM FOR HEALTH CARE DELIVERY.

    (a) Extension of Duration of Pilot Program- Section 721(e) of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1988; 10 U.S.C. 1092 note) is amended by striking `and 2007' and inserting `, 2007, 2008, 2009, and 2010'.

    (b) Extension of Report Deadline- Section 721(f) of such Act is amended by striking `July 1, 2007' and inserting `July 1, 2010'.

    (c) Revision in Selection Criteria- Section 721(d)(2) of such Act is amended by striking `expected to increase over the next five years' and inserting `has increased over the five years preceding 2008'.

    (d) Addition to Requirements of Pilot Program- Section 721(b) of such Act is amended--

      (1) by striking `and' at the end of paragraph (3);

      (2) by striking the period and inserting `; and' at the end of paragraph (4); and

      (3) by adding at the end the following:

      `(5) collaborate with State and local authorities to create an arrangement to share and exchange, between the Department of Defense and non-military health care systems, personal health information and data of military personnel and their families.'.

SEC. 708. INCLUSION OF MENTAL HEALTH CARE IN DEFINITION OF HEALTH CARE AND REPORT ON MENTAL HEALTH CARE SERVICES.

    (a) Inclusion of Mental Health Care in Definition of Health Care- Section 1072 of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(10) The term `health care' includes mental health care.'.

    (b) Report on Access to Mental Health Care Services- Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the adequacy of access to mental health services under the TRICARE program, including in the geographic areas where surveys on the continued viability of TRICARE Standard and TRICARE Extra are conducted under section 711 of this Act.

Subtitle B--Studies and Reports

SEC. 711. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD AND TRICARE EXTRA.

    (a) Requirement for Surveys-

      (1) IN GENERAL- The Secretary of Defense shall conduct surveys of health care providers and beneficiaries who use TRICARE in the United States to determine, utilizing a reconciliation of the responses of providers and beneficiaries to such surveys, each of the following:

        (A) How many health care providers in TRICARE Prime service areas selected under paragraph (3)(A) are accepting new patients under each of TRICARE Standard and TRICARE Extra.

        (B) How many health care providers in geographic areas in which TRICARE Prime is not offered are accepting patients under each of TRICARE Standard and TRICARE Extra.

        (C) The availability of mental health care providers in TRICARE Prime service areas selected under paragraph (3)(C) and in geographic areas in which TRICARE Prime is not offered.

      (2) BENCHMARKS- The Secretary shall establish for purposes of the surveys required by paragraph (1) benchmarks for primary care and specialty care providers, including mental health care providers, to be utilized to determine the adequacy of the availability of health care providers to beneficiaries eligible for TRICARE.

      (3) SCOPE OF SURVEYS- The Secretary shall carry out the surveys required by paragraph (1) as follows:

        (A) In the case of the surveys required by subparagraph (A) of that paragraph, in at least 20 TRICARE Prime service areas in the United States in each of fiscal years 2008 through 2011.

        (B) In the case of the surveys required by subparagraph (B) of that paragraph, in 20 geographic areas in which TRICARE Prime is not offered and in which significant numbers of beneficiaries who are members of the Selected Reserve reside.

        (C) In the case of the surveys required by subparagraph (C) of that paragraph, in at least 40 geographic areas.

      (4) PRIORITY FOR SURVEYS- In prioritizing the areas which are to be surveyed under paragraph (1), the Secretary shall--

        (A) consult with representatives of TRICARE beneficiaries and health care and mental health care providers to identify locations where TRICARE Standard beneficiaries are experiencing significant levels of access-to-care problems under TRICARE Standard or TRICARE Extra;

        (B) give a high priority to surveying health care and mental health care providers in such areas; and

        (C) give a high priority to surveying beneficiaries and providers located in geographic areas with high concentrations of members of the Selected Reserve.

      (5) INFORMATION FROM PROVIDERS- The surveys required by paragraph (1) shall include questions seeking to determine from health care and mental health care providers the following:

        (A) Whether the provider is aware of the TRICARE program.

        (B) What percentage of the provider's current patient population uses any form of TRICARE.

        (C) Whether the provider accepts patients for whom payment is made under the medicare program for health care and mental health care services.

        (D) If the provider accepts patients referred to in subparagraph (C), whether the provider would accept additional such patients who are not in the provider's current patient population.

      (6) INFORMATION FROM BENEFICIARIES- The surveys required by paragraph (1) shall include questions seeking information to determine from TRICARE beneficiaries whether they have difficulties in finding health care and mental health care providers willing to provide services under TRICARE Standard or TRICARE Extra.

    (b) GAO Review-

      (1) ONGOING REVIEW- The Comptroller General shall, on an ongoing basis, review--

        (A) the processes, procedures, and analysis used by the Department of Defense to determine the adequacy of the number of health care and mental health care providers--

          (i) that currently accept TRICARE Standard or TRICARE Extra beneficiaries as patients under TRICARE Standard in each TRICARE area as of the date of completion of the review; and

          (ii) that would accept TRICARE Standard or TRICARE Extra beneficiaries as new patients under TRICARE Standard or TRICARE Extra, as applicable, within a reasonable time after the date of completion of the review; and

        (B) the actions taken by the Department of Defense to ensure ready access of TRICARE Standard beneficiaries to health care and mental health care under TRICARE Standard in each TRICARE area, including any pending or resolved requests for waiver of payment limits in order to improve access to health care or mental health care in a specific geographic area.

      (2) REPORTS- The Comptroller General shall submit to the Committees on Armed Services of the Senate and the House of Representatives on a bi-annual basis a report on the results of the review under paragraph (1). Each report shall include the following:

        (A) An analysis of the adequacy of the surveys under subsection (a).

        (B) An identification of any impediments to achieving adequacy of availability of health care and mental health care under TRICARE Standard or TRICARE Extra.

        (C) An assessment of the adequacy of Department of Defense education programs to inform health care and mental health care providers about TRICARE Standard and TRICARE Extra.

        (D) An assessment of the adequacy of Department of Defense initiatives to encourage health care and mental health care providers to accept patients under TRICARE Standard and TRICARE Extra.

        (E) An assessment of the adequacy of information available to TRICARE Standard beneficiaries to facilitate access by such beneficiaries to health care and mental health care under TRICARE Standard and TRICARE Extra.

        (F) An assessment of any need for adjustment of health care and mental health care provider payment rates to attract participation in TRICARE Standard by appropriate numbers of health care and mental health care providers.

        (G) An assessment of the adequacy of Department of Defense programs to inform members of the Selected Reserve about the TRICARE Reserve Select program.

        (H) An assessment of the ability of TRICARE Reserve Select beneficiaries to receive care in their geographic area.

    (c) Effective Date- This section shall take effect on October 1, 2007.

    (d) Repeal of Superseded Requirements and Authority- Section 723 of the National Defense Authorization Act for Fiscal Year 2004 (10 U.S.C. 1073 note) is repealed, effective as of October 1, 2007.

    (e) Definitions- In this section:

      (1) The term `TRICARE Extra' means the option of the TRICARE program under which TRICARE Standard beneficiaries may obtain discounts on cost-sharing as a result of using TRICARE network providers.

      (2) The term `TRICARE Prime' means the managed care option of the TRICARE program.

      (3) The term `TRICARE Prime service area' means a geographic area designated by the Department of Defense in which managed care support contractors develop a managed care network under TRICARE Prime.

      (4) The term `TRICARE Standard' means the option of the TRICARE program that is also known as the Civilian Health and Medical Program of the Uniformed Services, as defined in section 1072(4) of title 10, United States Code.

      (5) The term `TRICARE Reserve Select' means the option of the TRICARE program that allows members of the Selected Reserve to enroll in TRICARE Standard, pursuant to section 1076d of title 10, United States Code.

      (6) The term `member of the Selected Reserve' means a member of the Selected Reserve of the Ready Reserve of a reserve component of the Armed Forces.

      (7) The term `United States' means the United States (as defined in section 101(a) of title 10, United States Code), its possessions (as defined in such section), and the Commonwealth of Puerto Rico.

SEC. 712. REPORT ON TRAINING IN PRESERVATION OF REMAINS UNDER COMBAT OR COMBAT-RELATED CONDITIONS.

    (a) Report Required- The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the requirements of section 567 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2224; 10 U.S.C. 1481 note).

    (b) Matters Covered- The report shall include a detailed description of the implementation of such section, including--

      (1) where the training program is taking place;

      (2) who is providing the training;

      (3) the number of each type of military health care professional trained to date; and

      (4) what the training covers.

    (c) Deadline- The report required by this section shall be submitted not later than 180 days after the date of the enactment of this Act.

SEC. 713. REPORT ON PATIENT SATISFACTION SURVEYS.

    (a) Report Required- Not later than March 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a report on the ongoing patient satisfaction surveys taking place in Department of Defense inpatient and outpatient settings at military treatment facilities.

    (b) Content- The report required under subsection (a) shall include the following:

      (1) The types of survey questions asked.

      (2) How frequently the surveying is conducted.

      (3) How often the results are analyzed and reported back to the treatment facilities.

      (4) To whom survey feedback is made available.

      (5) How best practices are incorporated for quality improvement.

      (6) An analysis of the effect of inpatient and outpatient surveys on quality improvement and a comparison of patient satisfaction survey programs with patient satisfaction survey programs used by other public and private health care systems and organizations.

    (c) Use of Report Information- The Secretary shall use information in the report as the basis for a plan for improvements in patient satisfaction surveys used to assess health care at military treatment facilities in order to ensure the provision of high quality health care and hospital services in such facilities.

SEC. 714. REPORT ON MEDICAL PHYSICAL EXAMINATIONS OF MEMBERS OF THE ARMED FORCES BEFORE THEIR DEPLOYMENT.

    Not later than April 1, 2008, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report setting forth the following:

      (1) A comparison of the policies of the military departments concerning medical physical examinations of members of the Armed Forces before their deployment, including an identification of instances in which a member (including a member of a reserve component) may be required to undergo multiple physical examinations, from the time of notification of an upcoming deployment through the period of preparation for deployment.

      (2) An assessment of the current policies related to, as well as the feasibility of, each of the following:

        (A) A single predeployment physical examination for members of the Armed Forces before their deployment.

        (B) A single system for tracking electronically the results of examinations under subparagraph (A) that can be shared among the military departments and thereby eliminate redundancy of medical physical examinations for members of the Armed Forces before their deployment.

SEC. 715. REPORT AND STUDY ON MULTIPLE VACCINATIONS OF MEMBERS OF THE ARMED FORCES.

    (a) Report Required- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the policies of the Department of Defense for administering and evaluating the vaccination of members of the Armed Forces.

    (b) Elements- The report required by subsection (a) shall include the following:

      (1) An assessment of the Department's policies governing the administration of multiple vaccinations in a 24-hour period, including the procedures providing for a full review of an individual's medical history prior to the administration of multiple vaccinations, and whether such policies and procedures differ for members of the Armed Forces on active duty and members of reserve components.

      (2) An assessment of how the Department's policies on multiple vaccinations in a 24-hour period conform to current regulations of the Food and Drug Administration and research performed or being performed by the Centers for Disease Control, other non-military Federal agencies, and non-Federal institutions on multiple vaccinations in a 24-hour period.

      (3) An assessment of the Department's procedures for initiating investigations of deaths of members of the Armed Forces in which vaccinations may have played a role, including whether such investigations can be requested by family members of the deceased individuals.

      (4) The number of deaths of members of the Armed Forces since May 18, 1998, that the Department has investigated for the potential role of vaccine administration, including both the number of deaths investigated that was alleged to have involved more than one vaccine administered in a given 24-hour period and the number of deaths investigated that was determined to have involved more than one vaccine administered in a given 24-hour period.

      (5) An assessment of the procedures for providing the Adjutants General of the various States and territories with up-to-date information on the effectiveness and potential allergic reactions and side effects of vaccines required to be taken by National Guard members.

      (6) An assessment of whether procedures are in place to provide that the Adjutants General of the various States and territories retain updated medical records of each National Guard member called up for active duty.

SEC. 716. REVIEW OF GENDER- AND ETHNIC GROUP-SPECIFIC MENTAL HEALTH SERVICES AND TREATMENT FOR MEMBERS OF THE ARMED FORCES.

    (a) Comprehensive Review- The Secretary of Defense shall conduct a comprehensive review of--

      (1) the need for gender- and ethnic group-specific mental health treatment and services for members of the Armed Forces; and

      (2) the efficacy and adequacy of existing gender- and ethnic group-specific mental health treatment programs and services for members of the Armed Forces, to include availability of and access to such programs.

    (b) Elements- The review required by subsection (a) shall include, but not be limited to, an assessment of the following:

      (1) The need for gender- and ethnic group-specific mental health outreach, prevention, and treatment services for members of the Armed Forces.

      (2) The access to and efficacy of existing gender- and ethnic group-specific mental health outreach, prevention, and treatment services and programs (including substance abuse programs).

      (3) The availability of gender- and ethnic group-specific services and treatment for members of the Armed Forces who experienced sexual assault or abuse.

      (4) The access to and need for treatment facilities focusing on the gender- and ethnic group-specific mental health care needs of members of the Armed Forces.

      (5) The need for further clinical research on the gender- and ethnic group-specific needs of members of the Armed Forces who served in a combat zone.

    (c) Report- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the review required by subsection (a).

SEC. 717. LICENSED MENTAL HEALTH COUNSELORS AND THE TRICARE PROGRAM.

    (a) Regulations- The Secretary of Defense shall prescribe regulations to establish criteria that licensed or certified mental health counselors shall meet in order to be able to independently provide care to TRICARE beneficiaries and receive payment under the TRICARE program for such services. The criteria shall include requirements for education level, licensure, certification, and clinical experience as considered appropriate by the Secretary.

    (b) Study Required- The Secretary of Defense shall enter into a contract with the Institute of Medicine of the National Academy of Sciences, or another similarly qualified independent academic medical organization, for the purpose of--

      (1) conducting an independent study of the credentials, preparation, and training of individuals practicing as licensed mental health counselors; and

      (2) making recommendations for permitting licensed mental health counselors to practice independently under the TRICARE program.

    (c) Elements of Study-

      (1) EDUCATIONAL REQUIREMENTS- The study required by subsection (b) shall provide for an assessment of the educational requirements and curricula relevant to mental health practice for licensed mental health counselors, including types of degrees recognized, certification standards for graduate programs for such profession, and recognition of undergraduate coursework for completion of graduate degree requirements.

      (2) LICENSING REQUIREMENTS- The study required by subsection (b) shall provide for an assessment of State licensing requirements for licensed mental health counselors, including for each level of licensure if a State issues more than one type of license for the profession. The assessment shall examine requirements in the areas of education, training, examination, continuing education, and ethical standards, and shall include an evaluation of the extent to which States authorize members of the licensed mental health counselor profession to diagnose and treat mental illnesses.

      (3) CLINICAL EXPERIENCE REQUIREMENTS- The study required by subsection (b) shall provide for an analysis of the requirements for clinical experience for a licensed mental health counselor to be recognized under regulations for the TRICARE program, and recommendations, if any, for standardization or adjustment of such requirements.

      (4) INDEPENDENT PRACTICE UNDER OTHER FEDERAL PROGRAMS- The study required by subsection (b) shall provide for an assessment of the extent to which licensed mental health counselors are authorized to practice independently under other Federal programs (such as the Medicare program, the Department of Veterans Affairs, the Indian Health Service, and Head Start), and a review of the relationship, if any, between recognition of mental health professions under the Medicare program and independent practice authority for such profession under the TRICARE program.

      (5) INDEPENDENT PRACTICE UNDER FEHBP- The study required by subsection (b) shall provide for an assessment of the extent to which licensed mental health counselors are authorized to practice independently under the Federal Employee Health Benefits Program and private insurance plans. The assessment shall identify the States having laws requiring private insurers to cover, or offer coverage of, the services of members of licensed mental health counselors and shall identify the conditions, if any, that are placed on coverage of practitioners under the profession by insurance plans and how frequently these types of conditions are used by insurers.

      (6) HISTORICAL REVIEW OF REGULATIONS- The study required by subsection (b) shall provide for a review of the history of regulations prescribed by the Department of Defense regarding which members of the mental health profession are recognized as providers under the TRICARE program as independent practitioners, and an examination of the recognition by the Department of third-party certification for members of such profession.

      (7) CLINICAL CAPABILITIES STUDIES- The study required by subsection (b) shall include a review of outcome studies and of the literature regarding the comparative quality and effectiveness of care provided by licensed mental health counselors and provide an independent review of the findings.

    (d) Recommendations for TRICARE Independent Practice Authority- The recommendations provided under subsection (b)(2) shall include recommendations regarding modifications of current policy for the TRICARE program with respect to allowing licensed mental health counselors to practice independently under the TRICARE program.

    (e) Report- Not later than March 1, 2009, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the review required by subsection (b).

SEC. 718. REPORT ON FUNDING OF THE DEPARTMENT OF DEFENSE FOR HEALTH CARE.

    (a) Report- If the President submits to Congress the budget for a fiscal year under section 1105 of title 31, United States Code, and the aggregate amount included in that budget for the Department of Defense for health care for such fiscal year is less than the aggregate amount provided by Congress for the Department for health care for the preceding fiscal year, and, in the case of the Department, the total allocation from the Defense Health Program to any military department is less than the total of such allocation in the preceding fiscal year, the President shall submit to Congress a report on--

      (1) the reasons for the determination that inclusion of a lesser aggregate amount or allocation to any military department is in the national interest; and

      (2) the anticipated effects of the inclusion of such lesser aggregate amount or allocation to any military department on the access to and delivery of medical and support services to members of the Armed Forces and their family members.

    (b) Termination- The section shall not be in effect after December 31, 2017.

Subtitle C--Other Matters

SEC. 721. PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND DENTAL POSITIONS TO CIVILIAN MEDICAL AND DENTAL POSITIONS.

    (a) Prohibition- The Secretary of a military department may not convert any military medical or dental position to a civilian medical or dental position during the period beginning on October 1, 2007, and ending on September 30, 2012.

    (b) Restoration of Certain Positions to Military Positions- In the case of any military medical or dental position that is converted to a civilian medical or dental position during the period beginning on October 1, 2004, and ending on September 30, 2008, if the position is not filled by a civilian by September 30, 2008, the Secretary of the military department concerned shall restore the position to a military medical or dental position that can be filled only by a member of the Armed Forces who is a health professional.

    (c) Report-

      (1) REQUIREMENT- The Secretary of Defense shall submit to the congressional defense committees a report on conversions made during fiscal year 2007 not later than 180 days after the enactment of this Act.

      (2) MATTERS COVERED- The report shall include the following:

        (A) The number of military medical or dental positions, by grade or band and specialty, converted to civilian medical or dental positions.

        (B) The results of a market survey in each affected area of the availability of civilian medical and dental care providers in such area in order to determine whether there were civilian medical and dental care providers available in such area adequate to fill the civilian positions created by the conversion of military medical and dental positions to civilian positions in such area.

        (C) An analysis, by affected area, showing the extent to which access to health care and cost of health care was affected in both the direct care and purchased care systems, including an assessment of the effect of any increased shifts in patient load from the direct care to the purchased care system, or any delays in receipt of care in either the direct or purchased care system because of the conversions.

        (D) The extent to which military medical and dental positions converted to civilian medical or dental positions affected recruiting and retention of uniformed medical and dental personnel.

        (E) A comparison of the full costs for the military medical and dental positions converted with the full costs for civilian medical and dental positions, including expenses such as recruiting, salary, benefits, training, and any other costs the Department identifies.

        (F) An assessment showing that the military medical or dental positions converted were in excess of the military medical and dental positions needed to meet medical and dental readiness requirements of the uniformed services, as determined jointly by all the uniformed services.

    (d) Definitions- In this section:

      (1) The term `military medical or dental position' means a position for the performance of health care functions within the Armed Forces held by a member of the Armed Forces.

      (2) The term `civilian medical or dental position' means a position for the performance of health care functions within the Department of Defense held by an employee of the Department or of a contractor of the Department.

      (3) The term `uniformed services' has the meaning given that term in section 1072(1) of title 10, United States Code.

      (4) The term `conversion', with respect to a military medical or dental position, means a change of the position to a civilian medical or dental position, effective as of the date of the manning authorization document of the military department making the change (through a change in designation from military to civilian in the document, the elimination of the listing of the position as a military position in the document, or through any other means indicating the change in the document or otherwise).

    (e) Repeal- Section 742 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2306) is repealed.

SEC. 722. ESTABLISHMENT OF JOINT PATHOLOGY CENTER.

    (a) Findings- Congress makes the following findings:

      (1) The Secretary of Defense proposed to disestablish all elements of the Armed Forces Institute of Pathology, except the National Medical Museum and the Tissue Repository, as part of the recommendations of the Secretary for the closure of Walter Reed Army Medical Center in the 2005 round of defense base closure and realignment.

      (2) The Defense Base Closure and Realignment Commission altered, but did not reject, the proposal of the Secretary of Defense to disestablish the Armed Forces Institute of Pathology.

      (3) The Commission's recommendation that the Armed Forces Institute of Pathology's `capabilities not specified in this recommendation will be absorbed into other DOD, Federal, or civilian facilities' provides the flexibility to retain a Joint Pathology Center as a Department of Defense or Federal entity.

    (b) Sense of Congress- It is the sense of Congress that the Armed Forces Institute of Pathology has provided important medical benefits to the Armed Forces and to the United States and that the Federal Government should retain a Joint Pathology Center.

    (c) Establishment-

      (1) ESTABLISHMENT REQUIRED- The President shall establish and maintain a Joint Pathology Center that shall function as the reference center in pathology for the Federal Government.

      (2) ESTABLISHMENT WITHIN DOD- Except as provided in paragraph (3), the Joint Pathology Center shall be established in the Department of Defense, consistent with the final recommendations of the 2005 Defense Base Closure and Realignment Commission, as approved by the President.

      (3) ESTABLISHMENT IN ANOTHER DEPARTMENT- If the President makes a determination, within 180 days after the date of the enactment of this Act, that the Joint Pathology Center cannot be established in the Department of Defense, the Joint Pathology Center shall be established as an element of a Federal agency other than the Department of Defense. The President shall incorporate the selection of such agency into the determination made under this paragraph.

    (d) Services- The Joint Pathology Center shall provide, at a minimum, the following:

      (1) Diagnostic pathology consultation services in medicine, dentistry, and veterinary sciences.

      (2) Pathology education, to include graduate medical education, including residency and fellowship programs, and continuing medical education.

      (3) Diagnostic pathology research.

      (4) Maintenance and continued modernization of the Tissue Repository and, as appropriate, utilization of the Repository in conducting the activities described in paragraphs (1) through (3).

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

      Sec. 800. Short title.

Subtitle A--Acquisition Policy and Management

      Sec. 801. Internal controls for procurements on behalf of the Department of Defense by certain non-Defense agencies.

      Sec. 802. Lead systems integrators.

      Sec. 803. Reinvestment in domestic sources of strategic materials.

      Sec. 804. Clarification of the protection of strategic materials critical to national security.

      Sec. 805. Procurement of commercial services.

      Sec. 806. Specification of amounts requested for procurement of contract services.

      Sec. 807. Inventories and reviews of contracts for services.

      Sec. 808. Independent management reviews of contracts for services.

      Sec. 809. Implementation and enforcement of requirements applicable to undefinitized contractual actions.

      Sec. 810. Clarification of limited acquisition authority for Special Operations Command.

Subtitle B--Provisions Relating to Major Defense Acquisition Programs

      Sec. 811. Requirements applicable to multiyear contracts for the procurement of major systems of the Department of Defense.

      Sec. 812. Changes to Milestone B certifications.

      Sec. 813. Comptroller General report on Department of Defense organization and structure for major defense acquisition programs.

      Sec. 814. Clarification of submission of cost or pricing data on noncommercial modifications of commercial items.

      Sec. 815. Clarification of rules regarding the procurement of commercial items.

      Sec. 816. Review of systemic deficiencies on major defense acquisition programs.

      Sec. 817. Investment strategy for major defense acquisition programs.

      Sec. 818. Report on implementation of recommendations on total ownership cost for major weapon systems.

Subtitle C--Amendments to General Contracting Authorities, Procedures, and Limitations

      Sec. 821. Plan for restricting Government-unique contract clauses on commercial contracts.

      Sec. 822. Extension of authority for use of simplified acquisition procedures for certain commercial items.

      Sec. 823. Five-year extension of authority to carry out certain prototype projects.

      Sec. 824. Exemption of Special Operations Command from certain requirements for certain contracts relating to vessels, aircraft, and combat vehicles.

      Sec. 825. Provision of authority to maintain equipment to unified combatant command for joint warfighting.

      Sec. 826. Market research.

      Sec. 827. Modification of competition requirements for purchases from Federal Prison Industries.

      Sec. 828. Multiyear contract authority for electricity from renewable energy sources.

      Sec. 829. Procurement of fire resistant rayon fiber for the production of uniforms from foreign sources.

      Sec. 830. Comptroller General review of noncompetitive awards of congressional and executive branch interest items.

Subtitle D--Accountability in Contracting

      Sec. 841. Commission on Wartime Contracting in Iraq and Afghanistan.

      Sec. 842. Investigation of waste, fraud, and abuse in wartime contracts and contracting processes in Iraq and Afghanistan.

      Sec. 843. Enhanced competition requirements for task and delivery order contracts.

      Sec. 844. Public disclosure of justification and approval documents for noncompetitive contracts.

      Sec. 845. Disclosure of government contractor audit findings.

      Sec. 846. Protection for contractor employees from reprisal for disclosure of certain information.

      Sec. 847. Requirements for senior Department of Defense officials seeking employment with defense contractors.

      Sec. 848. Report on contractor ethics programs of Major Defense contractors.

      Sec. 849. Contingency contracting training for personnel outside the acquisition workforce and evaluations of Army Commission recommendations.

Subtitle E--Acquisition Workforce Provisions

      Sec. 851. Requirement for section on defense acquisition workforce in strategic human capital plan.

      Sec. 852. Department of Defense Acquisition Workforce Development Fund.

      Sec. 853. Extension of authority to fill shortage category positions for certain Federal acquisition positions.

      Sec. 854. Repeal of sunset of acquisition workforce training fund.

      Sec. 855. Federal acquisition workforce improvements.

Subtitle F--Contracts in Iraq and Afghanistan

      Sec. 861. Memorandum of understanding on matters relating to contracting.

      Sec. 862. Contractors performing private security functions in areas of combat operations.

      Sec. 863. Comptroller General reviews and reports on contracting in Iraq and Afghanistan.

      Sec. 864. Definitions and other general provisions.

Subtitle G--Defense Materiel Readiness Board

      Sec. 871. Establishment of Defense Materiel Readiness Board.

      Sec. 872. Critical materiel readiness shortfalls.

Subtitle H--Other Matters

      Sec. 881. Clearinghouse for rapid identification and dissemination of commercial information technologies.

      Sec. 882. Authority to license certain military designations and likenesses of weapons systems to toy and hobby manufacturers.

      Sec. 883. Modifications to limitation on contracts to acquire military flight simulator.

      Sec. 884. Requirements relating to waivers of certain domestic source limitations relating to specialty metals.

      Sec. 885. Telephone services for military personnel serving in combat zones.

      Sec. 886. Enhanced authority to acquire products and services produced in Iraq and Afghanistan.

      Sec. 887. Defense Science Board review of Department of Defense policies and procedures for the acquisition of information technology.

      Sec. 888. Green procurement policy.

      Sec. 889. Comptroller General review of use of authority under the Defense Production Act of 1950.

      Sec. 890. Prevention of export control violations.

      Sec. 891. Procurement goal for Native Hawaiian-serving institutions and Alaska Native-serving institutions.

      Sec. 892. Competition for procurement of small arms supplied to Iraq and Afghanistan.

SEC. 800. SHORT TITLE.

    This title may be cited as the `Acquisition Improvement and Accountability Act of 2007'.

Subtitle A--Acquisition Policy and Management

SEC. 801. INTERNAL CONTROLS FOR PROCUREMENTS ON BEHALF OF THE DEPARTMENT OF DEFENSE BY CERTAIN NON-DEFENSE AGENCIES.

    (a) Inspectors General Reviews and Determinations-

      (1) IN GENERAL- For each covered non-defense agency, the Inspector General of the Department of Defense and the Inspector General of such covered non-defense agency shall, not later than the date specified in paragraph (2), jointly--

        (A) review--

          (i) the procurement policies, procedures, and internal controls of such covered non-defense agency that are applicable to the procurement of property and services on behalf of the Department by such covered non-defense agency; and

          (ii) the administration of such policies, procedures, and internal controls; and

        (B) determine in writing whether such covered non-defense agency is or is not compliant with defense procurement requirements.

      (2) DEADLINE FOR REVIEWS AND DETERMINATIONS- The reviews and determinations required by paragraph (1) shall take place as follows:

        (A) In the case of the General Services Administration, by not later than March 15, 2010.

        (B) In the case of each of the Department of the Treasury, the Department of the Interior, and the National Aeronautics and Space Administration, by not later than March 15, 2011.

        (C) In the case of each of the Department of Veterans Affairs and the National Institutes of Health, by not later than March 15, 2012.

      (3) SEPARATE REVIEWS AND DETERMINATIONS- The Inspector General of the Department of Defense and the Inspector General of a covered non-defense agency may by joint agreement conduct separate reviews of the procurement of property and services on behalf of the Department of Defense that are conducted by separate business units, or under separate government-wide acquisition contracts, of the covered non-defense agency. If such separate reviews are conducted, the Inspectors General shall make a separate determination under paragraph (1)(B) with respect to each such separate review.

      (4) MEMORANDA OF UNDERSTANDING FOR REVIEWS AND DETERMINATIONS- Not later than one year before a review and determination is required under this subsection with respect to a covered non-defense agency, the Inspector General of the Department of Defense and the Inspector General of the covered non-defense agency shall enter into a memorandum of understanding with each other to carry out such review and determination.

      (5) TERMINATION OF NON-COMPLIANCE DETERMINATION- If the Inspector General of the Department of Defense and the Inspector General of a covered non-defense agency determine, pursuant to paragraph (1)(B), that a covered non-defense agency is not compliant with defense procurement requirements, the Inspectors General shall terminate such a determination effective on the date on which the Inspectors General jointly--

        (A) determine that the non-defense agency is compliant with defense procurement requirements; and

        (B) notify the Secretary of Defense of that determination.

      (6) RESOLUTION OF DISAGREEMENTS- If the Inspector General of the Department of Defense and the Inspector General of a covered non-defense agency are unable to agree on a joint determination under this subsection, a determination by the Inspector General of the Department of Defense under this subsection shall be conclusive for the purposes of this section.

    (b) Limitation on Procurements on Behalf of Department of Defense-

      (1) Except as provided in paragraph (2), an acquisition official of the Department of Defense may place an order, make a purchase, or otherwise procure property or services for the Department of Defense in excess of the simplified acquisition threshold through a non-defense agency only if--

        (A) in the case of a procurement by any non-defense agency in any fiscal year, the head of the non-defense agency has certified that the non-defense agency will comply with defense procurement requirements for the fiscal year;

        (B) in the case of--

          (i) a procurement by a covered non-defense agency in a fiscal year for which a memorandum of understanding is required by subsection (a)(4), the Inspector General of the Department of Defense and the Inspector General of the covered non-defense agency have entered into such a memorandum of understanding; or

          (ii) a procurement by a covered non-defense agency in a fiscal year following the Inspectors General review and determination required by subsection (a), the Inspectors General have determined that a covered non-defense agency is compliant with defense procurement requirements or have terminated a prior determination of non-compliance in accordance with subsection (a)(5); and

        (C) the procurement is not otherwise prohibited by section 817 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) or section 811 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163).

      (2) EXCEPTION FOR PROCUREMENTS OF NECESSARY PROPERTY AND SERVICES-

        (A) IN GENERAL- The limitation in paragraph (1) shall not apply to the procurement of property and services on behalf of the Department of Defense by a non-defense agency during any fiscal year for which there is in effect a written determination of the Under Secretary of Defense for Acquisition, Technology, and Logistics that it is necessary in the interest of the Department of Defense to procure property and services through the non-defense agency during such fiscal year.

        (B) SCOPE OF PARTICULAR EXCEPTION- A written determination with respect to a non-defense agency under subparagraph (A) shall apply to any category of procurements through the non-defense agency that is specified in the determination.

    (c) Guidance on Interagency Contracting-

      (1) REQUIREMENT- Not later than 180 days after the date of enactment of this Act, the Secretary of Defense shall issue guidance on the use of interagency contracting by the Department of Defense.

      (2) MATTERS COVERED- The guidance required by paragraph (1) shall address the circumstances in which it is appropriate for Department of Defense acquisition officials to procure goods or services through a contract entered into by an agency outside the Department of Defense. At a minimum, the guidance shall address--

        (A) the circumstances in which it is appropriate for such acquisition officials to use direct acquisitions;

        (B) the circumstances in which it is appropriate for such acquisition officials to use assisted acquisitions;

        (C) the circumstances in which it is appropriate for such acquisition officials to use interagency contracting to acquire items unique to the Department of Defense and the procedures for approving such interagency contracting;

        (D) the circumstances in which it is appropriate for such acquisition officials to use interagency contracting to acquire items that are already being provided under a contract awarded by the Department of Defense;

        (E) tools that should be used by such acquisition officials to determine whether items are already being provided under a contract awarded by the Department of Defense; and

        (F) procedures for ensuring that defense procurement requirements are identified and communicated to outside agencies involved in interagency contracting.

    (d) Compliance With Defense Procurement Requirements- For the purposes of this section, a non-defense agency is compliant with defense procurement requirements if the procurement policies, procedures, and internal controls of the non-defense agency applicable to the procurement of products and services on behalf of the Department of Defense, and the manner in which they are administered, are adequate to ensure the compliance of the non-defense agency with the requirements of laws and regulations (including applicable Department of Defense financial management regulations) that apply to procurements of property and services made directly by the Department of Defense.

    (e) Treatment of Procurements for Fiscal Year Purposes- For the purposes of this section, a procurement shall be treated as being made during a particular fiscal year to the extent that funds are obligated by the Department of Defense for the procurement in that fiscal year.

    (f) Definitions- In this section:

      (1) NON-DEFENSE AGENCY- The term `non-defense agency' means any department or agency of the Federal Government other than the Department of Defense. Such term includes a covered non-defense agency.

      (2) COVERED NON-DEFENSE AGENCY- The term `covered non-defense agency' means each of the following:

        (A) The General Services Administration.

        (B) The Department of the Treasury.

        (C) The Department of the Interior.

        (D) The National Aeronautics and Space Administration.

        (E) The Department of Veterans Affairs.

        (F) The National Institutes of Health.

      (3) GOVERNMENT-WIDE ACQUISITION CONTRACT- The term `government-wide acquisition contract' means a task or delivery order contract that--

        (A) is entered into by a non-defense agency; and

        (B) may be used as the contract under which property or services are procured for one or more other departments or agencies of the Federal Government.

      (4) SIMPLIFIED ACQUISITION THRESHOLD- The term `simplified acquisition threshold' has the meaning provided by section 2302(7) of title 10, United States Code.

      (5) INTERAGENCY CONTRACTING- The term `interagency contracting' means the exercise of the authority under section 1535 of title 31, United States Code, or other statutory authority, for Federal agencies to purchase goods and services under contracts entered into or administered by other agencies.

      (6) ACQUISITION OFFICIAL- The term `acquisition official', with respect to the Department of Defense, means--

        (A) a contracting officer of the Department of Defense; or

        (B) any other Department of Defense official authorized to approve a direct acquisition or an assisted acquisition on behalf of the Department of Defense.

      (7) DIRECT ACQUISITION- The term `direct acquisition', with respect to the Department of Defense, means the type of interagency contracting through which the Department of Defense orders an item or service from a government-wide acquisition contract maintained by a non-defense agency.

      (8) ASSISTED ACQUISITION- The term `assisted acquisition', with respect to the Department of Defense, means the type of interagency contracting through which acquisition officials of a non-defense agency award a contract or task or delivery order for the procurement of goods or services on behalf of the Department of Defense.

SEC. 802. LEAD SYSTEMS INTEGRATORS.

    (a) Prohibitions on the Use of Lead Systems Integrators-

      (1) PROHIBITION ON NEW LEAD SYSTEMS INTEGRATORS- Effective October 1, 2010, the Department of Defense may not award a new contract for lead systems integrator functions in the acquisition of a major system to any entity that was not performing lead systems integrator functions in the acquisition of the major system prior to the date of the enactment of this Act.

      (2) PROHIBITION ON LEAD SYSTEMS INTEGRATORS BEYOND LOW-RATE INITIAL PRODUCTION- Effective on the date of the enactment of this Act, the Department of Defense may award a new contract for lead systems integrator functions in the acquisition of a major system only if--

        (A) the major system has not yet proceeded beyond low-rate initial production; or

        (B) the Secretary of Defense determines in writing that it would not be practicable to carry out the acquisition without continuing to use a contractor to perform lead systems integrator functions and that doing so is in the best interest of the Department.

      (3) REQUIREMENTS RELATING TO DETERMINATIONS- A determination under paragraph (2)(B)--

        (A) shall specify the reasons why it would not be practicable to carry out the acquisition without continuing to use a contractor to perform lead systems integrator functions (including a discussion of alternatives, such as the use of the Department of Defense workforce, or a system engineering and technical assistance contractor);

        (B) shall include a plan for phasing out the use of contracted lead systems integrator functions over the shortest period of time consistent with the interest of the national defense;

        (C) may not be delegated below the level of the Under Secretary of Defense for Acquisition, Technology, and Logistics; and

        (D) shall be provided to the Committees on Armed Services of the Senate and the House of Representatives at least 45 days before the award of a contract pursuant to the determination.

    (b) Acquisition Workforce-

      (1) REQUIREMENT- The Secretary of Defense shall ensure that the acquisition workforce is of the appropriate size and skill level necessary--

        (A) to accomplish inherently governmental functions related to acquisition of major systems; and

        (B) to effectuate the purpose of subsection (a) to minimize and eventually eliminate the use of contractors to perform lead systems integrator functions.

      (2) REPORT- The Secretary shall include an update on the progress made in complying with paragraph (1) in the annual report required by section 820 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2330).

    (c) Exception for Contracts for Other Management Services- The Department of Defense may continue to award contracts for the procurement of services the primary purpose of which is to perform acquisition support functions with respect to the development or production of a major system, if the following conditions are met with respect to each such contract:

      (1) The contract prohibits the contractor from performing inherently governmental functions.

      (2) The Department of Defense organization responsible for the development or production of the major system ensures that Federal employees are responsible for--

        (A) determining courses of action to be taken in the best interest of the government; and

        (B) determining best technical performance for the warfighter.

      (3) The contract requires that the prime contractor for the contract may not advise or recommend the award of a contract or subcontract for the development or production of the major system to an entity owned in whole or in part by the prime contractor.

    (d) Definitions- In this section:

      (1) LEAD SYSTEMS INTEGRATOR- The term `lead systems integrator' means--

        (A) a prime contractor for the development or production of a major system, if the prime contractor is not expected at the time of award to perform a substantial portion of the work on the system and the major subsystems; or

        (B) a prime contractor under a contract for the procurement of services the primary purpose of which is to perform acquisition functions closely associated with inherently governmental functions with respect to the development or production of a major system.

      (2) MAJOR SYSTEM- The term `major system' has the meaning given such term in section 2302d of title 10, United States Code.

      (3) LOW-RATE INITIAL PRODUCTION- The term `low-rate initial production' has the meaning given such term in section 2400 of title 10, United States Code.

SEC. 803. REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC MATERIALS.

    (a) Assessment Required- Not later than 180 days after the date of the enactment of this Act, the Strategic Materials Protection Board established pursuant to section 187 of title 10, United States Code, shall perform an assessment of the extent to which domestic producers of strategic materials are investing and planning to invest on a sustained basis in the processes, infrastructure, workforce training, and facilities required for the continued domestic production of such materials to meet national defense requirements.

    (b) Cooperation of Domestic Producers- The Department of Defense may take into consideration the degree of cooperation of any domestic producer of strategic materials with the assessment conducted under subsection (a) when determining how much weight to accord any comments provided by such domestic producer regarding a proposed waiver of domestic source limitations pursuant to section 2533b of title 10, United States Code.

    (c) Report to Congressional Defense Committees- The Board shall include the findings and recommendations of the assessment required by subsection (a) in the first report submitted to Congress pursuant to section 187(d) of title 10, United States Code, after the completion of such assessment.

    (d) Definition- The term `strategic material' means--

      (1) a material designated as critical to national security by the Strategic Materials Protection Board in accordance with section 187 of title 10, United States Code; or

      (2) a specialty metal as defined by section 2533b of title 10, United States Code.

SEC. 804. CLARIFICATION OF THE PROTECTION OF STRATEGIC MATERIALS CRITICAL TO NATIONAL SECURITY.

    (a) Prohibition- Subsection (a) of section 2533b of title 10, United States Code, is amended--

      (1) by striking `Except as provided in subsections (b) through (j), funds appropriated or otherwise available to the Department of Defense may not be used for the procurement of--' and inserting `Except as provided in subsections (b) through (m), the acquisition by the Department of Defense of the following items is prohibited:';

      (2) in paragraph (1)--

        (A) by striking `the following' and inserting `The following'; and

        (B) by striking `; or' and inserting a period; and

      (3) in paragraph (2), by striking `a speciality' and inserting `A specialty'.

    (b) Applicability to Acquisition of Commercial Items- Subsection (h) of such section is amended to read as follows:

    `(h) Applicability to Acquisitions of Commercial Items- (1) Except as provided in paragraphs (2) and (3), this section applies to acquisitions of commercial items, notwithstanding sections 34 and 35 of the Office of Federal Procurement Policy Act (41 U.S.C. 430 and 431).

    `(2) This section does not apply to contracts or subcontracts for the acquisition of commercially available off-the-shelf items, as defined in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431(c)), other than--

      `(A) contracts or subcontracts for the acquisition of specialty metals, including mill products, such as bar, billet, slab, wire, plate and sheet, that have not been incorporated into end items, subsystems, assemblies, or components;

      `(B) contracts or subcontracts for the acquisition of forgings or castings of specialty metals, unless such forgings or castings are incorporated into commercially available off-the-shelf end items, subsystems, or assemblies;

      `(C) contracts or subcontracts for commercially available high performance magnets unless such high performance magnets are incorporated into commercially available off-the-shelf-end items or subsystems; and

      `(D) contracts or subcontracts for commercially available off-the-shelf fasteners, unless such fasteners are--

        `(i) incorporated into commercially available off-the-shelf end items, subsystems, assemblies, or components; or

        `(ii) purchased as provided in paragraph (3).

    `(3) This section does not apply to fasteners that are commercial items that are purchased under a contract or subcontract with a manufacturer of such fasteners, if the manufacturer has certified that it will purchase, during the relevant calendar year, an amount of domestically melted specialty metal, in the required form, for use in the production of such fasteners for sale to the Department of Defense and other customers, that is not less than 50 percent of the total amount of the specialty metal that it will purchase to carry out the production of such fasteners.'.

    (c) Electronic Components- Subsection (g) of such section is amended by striking `commercially available' and all that follows through the end of the subsection and inserting `electronic components, unless the Secretary of Defense, upon the recommendation of the Strategic Materials Protection Board pursuant to section 187 of this title, determines that the domestic availability of a particular electronic component is critical to national security.'.

    (d) Additional Exceptions- Section 2533b of title 10, United States Code, as amended by subsections (a), (b), and (c), is further amended--

      (1) by redesignating subsections (i) and (j) as subsections (l) and (m), respectively; and

      (2) by inserting after subsection (h) the following new subsections:

    `(i) Exceptions for Purchases of Specialty Metals Below Minimum Threshold- (1) Notwithstanding subsection (a), the Secretary of Defense or the Secretary of a military department may accept delivery of an item containing specialty metals that were not melted in the United States if the total amount of noncompliant specialty metals in the item does not exceed 2 percent of the total weight of specialty metals in the item.

    `(2) This subsection does not apply to high performance magnets.

    `(j) Streamlined Compliance for Commercial Derivative Military Articles- (1) Subsection (a) shall not apply to an item acquired under a prime contract if the Secretary of Defense or the Secretary of a military department determines that--

      `(A) the item is a commercial derivative military article; and

      `(B) the contractor certifies that the contractor and its subcontractors have entered into a contractual agreement, or agreements, to purchase an amount of domestically melted specialty metal in the required form, for use during the period of contract performance in the production of the commercial derivative military article and the related commercial article, that is not less than the greater of--

        `(i) an amount equivalent to 120 percent of the amount of specialty metal that is required to carry out the production of the commercial derivative military article (including the work performed under each subcontract); or

        `(ii) an amount equivalent to 50 percent of the amount of specialty metal that is purchased by the contractor and its subcontractors for use during such period in the production of the commercial derivative military article and the related commercial article.

    `(2) For the purposes of this subsection, the amount of specialty metal that is required to carry out the production of the commercial derivative military article includes specialty metal contained in any item, including commercially available off-the-shelf items, incorporated into such commercial derivative military article.

    `(k) National Security Waiver- (1) Notwithstanding subsection (a), the Secretary of Defense may accept the delivery of an end item containing noncompliant materials if the Secretary determines in writing that acceptance of such end item is necessary to the national security interests of the United States.

    `(2) A written determination under paragraph (1)--

      `(A) may not be delegated below the level of the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition, Technology, and Logistics;

      `(B) shall specify the quantity of end items to which the waiver applies and the time period over which the waiver applies; and

      `(C) shall be provided to the congressional defense committees prior to making such a determination (except that in the case of an urgent national security requirement, such certification may be provided to the defense committees up to 7 days after it is made).

    `(3)(A) In any case in which the Secretary makes a determination under paragraph (1), the Secretary shall determine whether or not the noncompliance was knowing and willful.

    `(B) If the Secretary determines that the noncompliance was not knowing or willful, the Secretary shall ensure that the contractor or subcontractor responsible for the noncompliance develops and implements an effective plan to ensure future compliance.

    `(C) If the Secretary determines that the noncompliance was knowing or willful, the Secretary shall--

      `(i) require the development and implementation of a plan to ensure future compliance; and

      `(ii) consider suspending or debarring the contractor or subcontractor until such time as the contractor or subcontractor has effectively addressed the issues that lead to such noncompliance.'.

    (e) Additional Definitions- Subsection (m) of section 2533b of title 10, United States Code, as redesignated by subsection (c), is further amended by adding at the end the following:

      `(3) The term `acquisition' has the meaning provided in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

      `(4) The term `required form' shall not apply to end items or to their components at any tier. The term `required form' means in the form of mill product, such as bar, billet, wire, slab, plate or sheet, and in the grade appropriate for the production of--

        `(A) a finished end item delivered to the Department of Defense; or

        `(B) a finished component assembled into an end item delivered to the Department of Defense.

      `(5) The term `commercially available off-the-shelf', has the meaning provided in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431(c)).

      `(6) The term `assemblies' means items forming a portion of a system or subsystem that can be provisioned and replaced as an entity and which incorporates multiple, replaceable parts.

      `(7) The term `commercial derivative military article' means an item procured by the Department of Defense that is or will be produced using the same production facilities, a common supply chain, and the same or similar production processes that are used for the production of articles predominantly used by the general public or by nongovernmental entities for purposes other than governmental purposes.

      `(8) The term `subsystem' means a functional grouping of items that combine to perform a major function within an end item, such as electrical power, attitude control, and propulsion.

      `(9) The term `end item' means the final production product when assembled or completed, and ready for issue, delivery, or deployment.

      `(10) The term `subcontract' includes a subcontract at any tier.'.

    (f) Conforming Amendments- Section 2533b of title 10, United States Code, is further amended--

      (1) in subsection (c)--

        (A) in the heading, by striking `Procurements' and inserting `Acquisitions'; and

        (B) in paragraphs (1) and (2), by striking `Procurements' and inserting `Acquisitions';

      (2) in subsection (d), by striking `procurement' each place it appears and inserting `acquisition'; and

      (3) in subsections (f) and (g), by striking `procurements' each place it appears and inserting `acquisitions'.

    (g) Implementation- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations on the implementation of this section and the amendments made by this section, including specific guidance on how thresholds established in subsections (h)(3), (i) and (j) of section 2533b of title 10, United States Code, as amended by this section, should be implemented.

    (h) Revision of Domestic Nonavailability Determinations and Rules- No later than 180 days after the date of the enactment of this Act, any domestic nonavailability determination under section 2533b of title 10, United States Code, including a class deviation, or rules made by the Department of Defense between December 6, 2006, and the date of the enactment of this Act, shall be reviewed and amended, as necessary, to comply with the amendments made by this section. This requirement shall not apply to a domestic nonavailability determination that applies to--

      (1) an individual contract that was entered into before the date of the enactment of this Act; or

      (2) an individual Department of Defense program, except to the extent that such domestic nonavailability determination applies to contracts entered into after the date of the enactment of this Act.

    (i) Transparency Requirement for Commercially Available Off-the-Shelf Item Exception- The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives, not later than December 30, 2008, a report on the use of authority provided under subsection (h) of section 2533b of title 10, United States Code, as amended by this section. Such report shall include, at a minimum, a description of types of items being procured as commercially available off-the-shelf items under such subsection and incorporated into noncommercial items. The Secretary shall submit an update of such report to such committees not later than December 30, 2009.

SEC. 805. PROCUREMENT OF COMMERCIAL SERVICES.

    (a) Regulations Required- Not later than 180 days after the date of the enactment of this Act , the Secretary of Defense shall modify the regulations of the Department of Defense for the procurement of commercial services for or on behalf of the Department of Defense.

    (b) Applicability of Commercial Procedures-

      (1) SERVICES OF A TYPE SOLD IN MARKETPLACE- The regulations modified pursuant to subsection (a) shall ensure that services that are not offered and sold competitively in substantial quantities in the commercial marketplace, but are of a type offered and sold competitively in substantial quantities in the commercial marketplace, may be treated as commercial items for purposes of section 2306a of title 10, United States Code (relating to truth in negotiations), only if the contracting officer determines in writing that the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price for such services.

      (2) INFORMATION SUBMITTED- To the extent necessary to make a determination under paragraph (1), the contracting officer may request the offeror to submit--

        (A) prices paid for the same or similar commercial items under comparable terms and conditions by both government and commercial customers; and

        (B) if the contracting officer determines that the information described in subparagraph (A) is not sufficient to determine the reasonableness of price, other relevant information regarding the basis for price or cost, including information on labor costs, material costs, and overhead rates.

    (c) Time-and-Materials Contracts-

      (1) COMMERCIAL ITEM ACQUISITIONS- The regulations modified pursuant to subsection (a) shall ensure that procedures applicable to time-and-materials contracts and labor-hour contracts for commercial item acquisitions may be used only for the following:

        (A) Services procured for support of a commercial item, as described in section 4(12)(E) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)(E)).

        (B) Emergency repair services.

        (C) Any other commercial services only to the extent that the head of the agency concerned approves a determination in writing by the contracting officer that--

          (i) the services to be acquired are commercial services as defined in section 4(12)(F) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)(F));

          (ii) if the services to be acquired are subject to subsection (b), the offeror of the services has submitted sufficient information in accordance with that subsection;

          (iii) such services are commonly sold to the general public through use of time-and-materials or labor-hour contracts; and

          (iv) the use of a time-and-materials or labor-hour contract type is in the best interest of the Government.

      (2) NON-COMMERCIAL ITEM ACQUISITIONS- Nothing in this subsection shall be construed to preclude the use of procedures applicable to time-and-materials contracts and labor-hour contracts for non-commercial item acquisitions for the acquisition of any category of services.

SEC. 806. SPECIFICATION OF AMOUNTS REQUESTED FOR PROCUREMENT OF CONTRACT SERVICES.

    (a) Specification of Amounts Requested- The budget justification materials submitted to Congress in support of the budget of the Department of Defense for any fiscal year after fiscal year 2009 shall identify clearly and separately the amounts requested in each budget account for the procurement of contract services.

    (b) Information Provided- For each budget account, the materials submitted shall clearly identify--

      (1) the amount requested for each Department of Defense component, installation, or activity; and

      (2) the amount requested for each type of service to be provided.

    (c) Contract Services Defined- In this section, the term `contract services'--

      (1) means services from contractors; but

      (2) excludes services relating to research and development and services relating to military construction.

SEC. 807. INVENTORIES AND REVIEWS OF CONTRACTS FOR SERVICES.

    (a) Inventory Requirement- Section 2330a of title 10, United States Code, is amended--

      (1) by redesignating subsection (d) as subsection (g);

      (2) by striking subsection (c) and inserting the following:

    `(c) Inventory- (1) Not later than the end of the third quarter of each fiscal year, the Secretary of Defense shall submit to Congress an annual inventory of the activities performed during the preceding fiscal year pursuant to contracts for services for or on behalf of the Department of Defense. The entry for an activity on an inventory under this subsection shall include, for the fiscal year covered by such entry, the following:

      `(A) The functions and missions performed by the contractor.

      `(B) The contracting organization, the component of the Department of Defense administering the contract, and the organization whose requirements are being met through contractor performance of the function.

      `(C) The funding source for the contract under which the function is performed by appropriation and operating agency.

      `(D) The fiscal year for which the activity first appeared on an inventory under this section.

      `(E) The number of full-time contractor employees (or its equivalent) paid for the performance of the activity.

      `(F) A determination whether the contract pursuant to which the activity is performed is a personal services contract.

      `(G) A summary of the data required to be collected for the activity under subsection (a).

    `(2) The inventory required under this subsection shall be submitted in unclassified form, but may include a classified annex.

    `(d) Public Availability of Inventories- Not later than 30 days after the date on which an inventory under subsection (c) is required to be submitted to Congress, the Secretary shall--

      `(1) make the inventory available to the public; and

      `(2) publish in the Federal Register a notice that the inventory is available to the public.

    `(e) Review and Planning Requirements- Within 90 days after the date on which an inventory is submitted under subsection (c), the Secretary of the military department or head of the Defense Agency responsible for activities in the inventory shall--

      `(1) review the contracts and activities in the inventory for which such Secretary or agency head is responsible;

      `(2) ensure that--

        `(A) each contract on the list that is a personal services contract has been entered into, and is being performed, in accordance with applicable statutory and regulatory requirements;

        `(B) the activities on the list do not include any inherently governmental functions; and

        `(C) to the maximum extent practicable, the activities on the list do not include any functions closely associated with inherently governmental functions;

      `(3) identify activities that should be considered for conversion--

        `(A) to performance by civilian employees of the Department of Defense pursuant to section 2463 of this title; or

        `(B) to an acquisition approach that would be more advantageous to the Department of Defense; and

      `(4) develop a plan to provide for appropriate consideration of the conversion of activities identified under paragraph (3) within a reasonable period of time.

    `(f) Rule of Construction- Nothing in this section shall be construed to authorize the performance of personal services by a contractor except where expressly authorized by a provision of law other than this section.'; and

      (3) by adding at the end of subsection (g) (as so redesignated) the following new paragraphs:

      `(3) FUNCTION CLOSELY ASSOCIATED WITH INHERENTLY GOVERNMENTAL FUNCTIONS- The term `function closely associated with inherently governmental functions' has the meaning given that term in section 2383(b)(3) of this title.

      `(4) INHERENTLY GOVERNMENTAL FUNCTIONS- The term `inherently governmental functions' has the meaning given that term in section 2383(b)(2) of this title.

      `(5) PERSONAL SERVICES CONTRACT- The term `personal services contract' means a contract under which, as a result of its terms or conditions or the manner of its administration during performance, contractor personnel are subject to the relatively continuous supervision and control of one or more Government officers or employees, except that the giving of an order for a specific article or service, with the right to reject the finished product or result, is not the type of supervision or control that makes a contract a personal services contract.'.

    (b) Effective Date-

      (1) The amendments made by subsection (a) shall be effective upon the date of the enactment of this Act.

      (2) The first inventory required by section 2330a(c) of title 10, United States Code, as added by subsection (a), shall be submitted not later than the end of the third quarter of fiscal year 2008.

SEC. 808. INDEPENDENT MANAGEMENT REVIEWS OF CONTRACTS FOR SERVICES.

    (a) Guidance and Instructions- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance, with detailed implementation instructions, for the Department of Defense to provide for periodic independent management reviews of contracts for services. The independent management review guidance and instructions issued pursuant to this subsection shall be designed to evaluate, at a minimum--

      (1) contract performance in terms of cost, schedule, and requirements;

      (2) the use of contracting mechanisms, including the use of competition, the contract structure and type, the definition of contract requirements, cost or pricing methods, the award and negotiation of task orders, and management and oversight mechanisms;

      (3) the contractor's use, management, and oversight of subcontractors;

      (4) the staffing of contract management and oversight functions; and

      (5) the extent of any pass-throughs, and excessive pass-through charges (as defined in section 852 of the John Warner National Defense Authorization Act for Fiscal Year 2007), by the contractor.

    (b) Additional Subject of Review- In addition to the matters required by subsection (a), the guidance and instructions issued pursuant to subsection (a) shall provide for procedures for the periodic review of contracts under which one contractor provides oversight for services performed by other contractors. In particular, the procedures shall be designed to evaluate, at a minimum--

      (1) the extent of the agency's reliance on the contractor to perform acquisition functions closely associated with inherently governmental functions as defined in section 2383(b)(3) of title 10, United States Code; and

      (2) the financial interest of any prime contractor performing acquisition functions described in paragraph (1) in any contract or subcontract with regard to which the contractor provided advice or recommendations to the agency.

    (c) Elements- The guidance and instructions issued pursuant to subsection (a) shall address, at a minimum--

      (1) the contracts subject to independent management reviews, including any applicable thresholds and exceptions;

      (2) the frequency with which independent management reviews shall be conducted;

      (3) the composition of teams designated to perform independent management reviews;

      (4) any phase-in requirements needed to ensure that qualified staff are available to perform independent management reviews;

      (5) procedures for tracking the implementation of recommendations made by independent management review teams; and

      (6) procedures for developing and disseminating lessons learned from independent management reviews.

    (c) Reports-

      (1) REPORT ON GUIDANCE AND INSTRUCTION- Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report setting forth the guidance and instructions issued pursuant to subsection (a).

      (2) GAO REPORT ON IMPLEMENTATION- Not later than two years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the implementation of the guidance and instructions issued pursuant to subsection (a).

SEC. 809. IMPLEMENTATION AND ENFORCEMENT OF REQUIREMENTS APPLICABLE TO UNDEFINITIZED CONTRACTUAL ACTIONS.

    (a) Guidance and Instructions- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall issue guidance, with detailed implementation instructions, for the Department of Defense to ensure the implementation and enforcement of requirements applicable to undefinitized contractual actions.

    (b) Elements- The guidance and instructions issued pursuant to subsection (a) shall address, at a minimum--

      (1) the circumstances in which it is, and is not, appropriate for Department of Defense officials to use undefinitized contractual actions;

      (2) approval requirements (including thresholds) for the use of undefinitized contractual actions;

      (3) procedures for ensuring that timelines for the definitization of undefinitized contractual actions are met;

      (4) procedures for ensuring compliance with regulatory limitations on the obligation of funds pursuant to undefinitized contractual actions;

      (5) procedures for ensuring compliance with regulatory limitations on profit or fee with respect to costs incurred before the definitization of an undefinitized contractual action; and

      (6) reporting requirements for undefinitized contractual actions that fail to meet required timelines for definitization or fail to comply with regulatory limitations on the obligation of funds or on profit or fee.

    (c) Reports-

      (1) REPORT ON GUIDANCE AND INSTRUCTIONS- Not later than 210 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report setting forth the guidance and instructions issued pursuant to subsection (a).

      (2) GAO REPORT- Not later than two years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the extent to which the guidance and instructions issued pursuant to subsection (a) have resulted in improvements to--

        (A) the level of insight that senior Department of Defense officials have into the use of undefinitized contractual actions;

        (B) the appropriate use of undefinitized contractual actions;

        (C) the timely definitization of undefinitized contractual actions; and

        (D) the negotiation of appropriate profits and fees for undefinitized contractual actions.

SEC. 810. CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR SPECIAL OPERATIONS COMMAND.

    Section 167(e)(4) of title 10, United States Code, is amended--

      (1) by redesignating subparagraph (C) as subparagraph (D); and

      (2) by inserting after subparagraph (B) the following new subparagraph:

    `(C)(i) The staff of the commander shall include a command acquisition executive, who shall be responsible for the overall supervision of acquisition matters for the special operations command. The command acquisition executive shall have the authority to--

      `(I) negotiate memoranda of agreement with the military departments to carry out the acquisition of equipment, material, supplies, and services described in subparagraph (A) on behalf of the command;

      `(II) supervise the acquisition of equipment, material, supplies, and services described in subparagraph (A), regardless of whether such acquisition is carried out by the command, or by a military department pursuant to a delegation of authority by the command;

      `(III) represent the command in discussions with the military departments regarding acquisition programs for which the command is a customer; and

      `(IV) work with the military departments to ensure that the command is appropriately represented in any joint working group or integrated product team regarding acquisition programs for which the command is a customer.

    `(ii) The command acquisition executive of the special operations command shall be included on the distribution list for acquisition directives and instructions of the Department of Defense.'.

Subtitle B--Provisions Relating to Major Defense Acquisition Programs

SEC. 811. REQUIREMENTS APPLICABLE TO MULTIYEAR CONTRACTS FOR THE PROCUREMENT OF MAJOR SYSTEMS OF THE DEPARTMENT OF DEFENSE.

    (a) Additional Requirements Applicable to Multiyear Contracts- Section 2306b of title 10, United States Code, is amended as follows:

      (1) Subsection (a) of such section is amended by adding at the end the following new paragraph:

      `(7) In the case of a contract in an amount equal to or greater than $500,000,000, that the conditions required by subparagraphs (C) through (F) of paragraph (1) of subsection (i) will be met, in accordance with the Secretary's certification and determination under such subsection, by such contract.'.

      (2) Subsection (i)(1) of such section is amended by inserting after `unless' the following: `the Secretary of Defense certifies in writing by no later than March 1 of the year in which the Secretary requests legislative authority to enter into such contract that'.

      (3) Subsection (i)(1) of such section is further amended--

        (A) by redesignating subparagraph (B) as subparagraph (G); and

        (B) by striking subparagraph (A) and inserting the following:

      `(A) The Secretary has determined that each of the requirements in paragraphs (1) through (6) of subsection (a) will be met by such contract and has provided the basis for such determination to the congressional defense committees.

      `(B) The Secretary's determination under subparagraph (A) was made after the completion of a cost analysis performed by the Cost Analysis Improvement Group of the Department of Defense and such analysis supports the findings.

      `(C) The system being acquired pursuant to such contract has not been determined to have experienced cost growth in excess of the critical cost growth threshold pursuant to section 2433(d) of this title within 5 years prior to the date the Secretary anticipates such contract (or a contract for advance procurement entered into consistent with the authorization for such contract) will be awarded.

      `(D) A sufficient number of end items of the system being acquired under such contract have been delivered at or within the most current estimates of the program acquisition unit cost or procurement unit cost for such system to determine that current estimates of such unit costs are realistic.

      `(E) During the fiscal year in which such contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program for such fiscal year will include the funding required to execute the program without cancellation.

      `(F) The contract is a fixed price type contract.'.

      (4) Subsection (i) of such section is further amended by adding at the end the following new paragraphs:

    `(5) The Secretary may make the certification under paragraph (1) notwithstanding the fact that one or more of the conditions of such certification are not met if the Secretary determines that, due to exceptional circumstances, proceeding with a multiyear contract under this section is in the best interest of the Department of Defense and the Secretary provides the basis for such determination with the certification.

    `(6) The Secretary of Defense may not delegate the authority to make the certification under paragraph (1) or the determination under paragraph (5) to an official below the level of Under Secretary of Defense for Acquisition, Technology, and Logistics.

    `(7) The Secretary of Defense shall send a notification containing the findings of the agency head under subsection (a), and the basis for such findings, 30 days prior to the award of a multiyear contract for a defense acquisition program that has been specifically authorized by law.'.

      (5) Such section is further amended by adding at the end the following new subsection:

    `(m) Increased Funding and Reprogramming Requests- Any request for increased funding for the procurement of a major system under a multiyear contract authorized under this section shall be accompanied by an explanation of how the request for increased funding affects the determinations made by the Secretary under subsection (i).'.

    (b) Applicability- The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply with respect to multiyear contracts for the purchase of major systems for which legislative authority is requested on or after that date.

SEC. 812. CHANGES TO MILESTONE B CERTIFICATIONS.

    Section 2366a of title 10, United States Code, is amended--

      (1) by amending subsection (a) to read as follows:

    `(a) Certification- A major defense acquisition program may not receive Milestone B approval, or Key Decision Point B approval in the case of a space program, until the milestone decision authority--

      `(1) has received a business case analysis and certifies on the basis of the analysis that--

        `(A) the program is affordable when considering the ability of the Department of Defense to accomplish the program's mission using alternative systems;

        `(B) the program is affordable when considering the per unit cost and the total acquisition cost in the context of the total resources available during the period covered by the future-years defense program submitted during the fiscal year in which the certification is made;

        `(C) reasonable cost and schedule estimates have been developed to execute the product development and production plan under the program; and

        `(D) funding is available to execute the product development and production plan under the program, through the period covered by the future-years defense program submitted during the fiscal year in which the certification is made, consistent with the estimates described in subparagraph (C) for the program; and

      `(2) further certifies that--

        `(A) appropriate market research has been conducted prior to technology development to reduce duplication of existing technology and products;

        `(B) the Department of Defense has completed an analysis of alternatives with respect to the program;

        `(C) the Joint Requirements Oversight Council has accomplished its duties with respect to the program pursuant to section 181(b) of this title, including an analysis of the operational requirements for the program;

        `(D) the technology in the program has been demonstrated in a relevant environment;

        `(E) the program demonstrates a high likelihood of accomplishing its intended mission; and

        `(F) the program complies with all relevant policies, regulations, and directives of the Department of Defense.';

      (2) by redesignating subsections (b), (c), (d), and (e) as subsections (c), (d), (e), and (f), respectively;

      (3) by inserting after subsection (a) the following new subsection (b):

    `(b) Changes to Certification- (1) The program manager for a major defense acquisition program that has received certification under subsection (a) shall immediately notify the milestone decision authority of any changes to the program that--

      `(A) alter the substantive basis for the certification of the milestone decision authority relating to any component of such certification specified in paragraph (1) or (2) of subsection (a); or

      `(B) otherwise cause the program to deviate significantly from the material provided to the milestone decision authority in support of such certification.

    `(2) Upon receipt of information under paragraph (1), the milestone decision authority may withdraw the certification concerned or rescind Milestone B approval (or Key Decision Point B approval in the case of a space program) if the milestone decision authority determines that such certification or approval is no longer valid.';

      (4) in subsection (c), as redesignated by paragraph (1)--

        (A) by inserting `(1)' before `The certification'; and

        (B) by adding at the end the following new paragraph (2):

    `(2) A summary of any information provided to the milestone decision authority pursuant to subsection (b) and a description of the actions taken as a result of such information shall be submitted with the first Selected Acquisition Report submitted under section 2432 of this title after receipt of such information by the milestone decision authority.';

      (5) in subsection (d), as so redesignated--

        (A) by striking `authority may waive' and inserting the following: `authority may, at the time of Milestone B approval (or Key Decision Point B approval in the case of a space program) or at the time that such milestone decision authority withdraws a certification or rescinds Milestone B approval (or Key Decision Point B approval in the case of a space program) pursuant to subsection (b)(2), waive'; and

        (B) by striking `paragraph (1), (2), (3), (4), (5), (6), (7), (8), or (9)' and inserting `paragraph (1) or (2)'; and

      (6) in subsection (e), as so redesignated, by striking `subsection (c)' and inserting `subsection (d)'.

SEC. 813. COMPTROLLER GENERAL REPORT ON DEPARTMENT OF DEFENSE ORGANIZATION AND STRUCTURE FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required- Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on potential modifications of the organization and structure of the Department of Defense for major defense acquisition programs.

    (b) Elements- The report required by subsection (a) shall include the results of a review, conducted by the Comptroller General for purposes of the report, regarding the feasibility and advisability of, at a minimum, the following:

      (1) Revising the acquisition process for major defense acquisition programs by establishing shorter, more frequent acquisition program milestones.

      (2) Requiring certifications of program status to the defense acquisition executive and Congress prior to milestone approval for major defense acquisition programs.

      (3) Establishing a new office (to be known as the `Office of Independent Assessment') to provide independent cost estimates and performance estimates for major defense acquisition programs.

      (4) Requiring the milestone decision authority for a major defense acquisition program to specify, at the time of Milestone B approval, or Key Decision Point B approval, as applicable, the period of time that will be required to deliver an initial operational capability to the relevant combatant commanders.

      (5) Establishing a materiel solutions process for addressing identified gaps in critical warfighting capabilities, under which process the Under Secretary of Defense for Acquisition, Technology, and Logistics circulates among the military departments and appropriate Defense Agencies a request for proposals for technologies and systems to address such gaps.

      (6) Modifying the role played by chiefs of staff of the Armed Forces in the requirements, resource allocation, and acquisition processes.

      (7) Establishing a process in which the commanders of combatant commands assess, and provide input on, the capabilities needed to successfully accomplish the missions in the operational and contingency plans of their commands over a long-term planning horizon of 15 years or more, taking into account expected changes in threats, the geo-political environment, and doctrine, training, and operational concepts.

    (c) Consultation- In conducting the review required under subsection (b) for the report required by subsection (a), the Comptroller General shall obtain the views of the following:

      (1) Senior acquisition officials currently serving in the Department of Defense.

      (2) Senior military officers involved in setting requirements for the joint staff, the Armed Forces, and the combatant commands currently serving in the Department of Defense.

      (3) Individuals who formerly served as senior acquisition officials in the Department of Defense.

      (4) Participants in previous reviews of the organization and structure of the Department of Defense for the acquisition of major weapon systems, including the President's Blue Ribbon Commission on Defense Management in 1986.

      (5) Other experts on the acquisition of major weapon systems.

      (6) Appropriate experts in the Government Accountability Office.

SEC. 814. CLARIFICATION OF SUBMISSION OF COST OR PRICING DATA ON NONCOMMERCIAL MODIFICATIONS OF COMMERCIAL ITEMS.

    (a) Measurement of Percentage at Contract Award- Section 2306a(b)(3)(A) of title 10, United States Code, is amended by inserting after `total price of the contract' the following: `(at the time of contract award)'.

    (b) Harmonization of Thresholds for Cost or Pricing Data- Section 2306a(b)(3)(A) of title 10, United States Code, is amended by striking `$500,000' and inserting `the amount specified in subsection (a)(1)(A)(i), as adjusted from time to time under subsection (a)(7),'.

SEC. 815. CLARIFICATION OF RULES REGARDING THE PROCUREMENT OF COMMERCIAL ITEMS.

    (a) Treatment of Subsystems, Components, and Spare Parts as Commercial Items-

      (1) IN GENERAL- Section 2379 of title 10, United States Code, is amended--

        (A) in subsection (a)--

          (i) by redesignating paragraph (2) as paragraph (3);

          (ii) in paragraph (1)(B), by striking `and' at the end; and

          (iii) by inserting after paragraph (1), the following:

      `(2) the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price for such system; and';

        (B) by striking subsection (b) and inserting the following new subsection (b):

    `(b) Treatment of Subsystems as Commercial Items- A subsystem of a major weapon system (other than a commercially available off-the-shelf item as defined in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431(c))) shall be treated as a commercial item and purchased under procedures established for the procurement of commercial items only if--

      `(1) the subsystem is intended for a major weapon system that is being purchased, or has been purchased, under procedures established for the procurement of commercial items in accordance with the requirements of subsection (a); or

      `(2) the contracting officer determines in writing that--

        `(A) the subsystem is a commercial item, as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)); and

        `(B) the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price for such subsystem.';

        (C) by redesignating subsections (c) and (d) as subsections (e) and (f), respectively; and

        (D) by inserting after subsection (b) the following new subsections (c) and (d):

    `(c) Treatment of Components and Spare Parts as Commercial Items- (1) A component or spare part for a major weapon system (other than a commercially available off-the-shelf item as defined in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431(c))) may be treated as a commercial item for the purposes of section 2306a of this title only if--

      `(A) the component or spare part is intended for--

        `(i) a major weapon system that is being purchased, or has been purchased, under procedures established for the procurement of commercial items in accordance with the requirements of subsection (a); or

        `(ii) a subsystem of a major weapon system that is being purchased, or has been purchased, under procedures established for the procurement of commercial items in accordance with the requirements of subsection (b); or

      `(B) the contracting officer determines in writing that--

        `(i) the component or spare part is a commercial item, as defined in section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)); and

        `(ii) the offeror has submitted sufficient information to evaluate, through price analysis, the reasonableness of the price for such component or spare part.

    `(2) This subsection shall apply only to components and spare parts that are acquired by the Department of Defense through a prime contract or a modification to a prime contract (or through a subcontract under a prime contract or modification to a prime contract on which the prime contractor adds no, or negligible, value).

    `(d) Information Submitted- To the extent necessary to make a determination under subsection (a)(2), (b)(2), or (c)(1)(B), the contracting officer may request the offeror to submit--

      `(1) prices paid for the same or similar commercial items under comparable terms and conditions by both government and commercial customers; and

      `(2) if the contracting officer determines that the information described in paragraph (1) is not sufficient to determine the reasonableness of price, other relevant information regarding the basis for price or cost, including information on labor costs, material costs, and overhead rates.'.

      (2) CONFORMING AMENDMENT TO TECHNICAL DATA PROVISION- Section 2321(f)(2) of such title is amended by striking `(whether or not under a contract for commercial items)' and inserting `(other than technical data for a commercially available off-the-shelf item as defined in section 35(c) of the Office of Federal Procurement Policy Act (41 U.S.C. 431(c)))'.

    (b) Sales of Commercial Items to Nongovernmental Entities- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall modify the regulations of the Department of Defense on the procurement of commercial items in order to clarify that the terms `general public' and `nongovernmental entities' in such regulations do not include the Federal Government or a State, local, or foreign government.

SEC. 816. REVIEW OF SYSTEMIC DEFICIENCIES ON MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Annual Review- The Under Secretary of Defense for Acquisition, Technology, and Logistics shall conduct an annual review of systemic deficiencies in the major defense acquisition programs of the Department of Defense for each fiscal year in which three or more major defense acquisition programs--

      (1) experience a critical cost growth threshold breach;

      (2) have a section 2366a certification withdrawn; or

      (3) have a Milestone A approval or Key Decision Point A approval rescinded, by the milestone decision authority under subsection (b) of section 2366b of title 10, United States Code, as added by section 943 of this Act.

    (b) Content of Review- The review conducted under subsection (a) shall--

      (1) identify common factors, including any systemic deficiencies in the budget, requirements, and acquisition policies and practices, that may have contributed to problems with major defense acquisition programs covered by the criteria in subsection (a);

      (2) assess the adequacy of corrective actions taken or to be taken to address cost growth or other performance deficiencies in programs covered by the criteria in subsection (a); and

      (3) make recommendations for any changes in budget, requirements, and acquisition policies and practices that may be appropriate to avoid similar problems with major defense acquisition programs in the future.

    (c) Definitions- In this section:

      (1) CRITICAL COST GROWTH THRESHOLD BREACH- The term `critical cost growth threshold breach' means a determination under section 2433(d) of title 10, United States Code, by the Secretary of a military department with respect to a major defense acquisition program that the program acquisition unit cost has increased by a percentage equal to or greater than the critical cost growth threshold or that the procurement unit cost has increased by a percentage equal to or greater than the critical cost growth threshold.

      (2) SECTION 2366a CERTIFICATION- The term `section 2366a certification' means a certification with respect to a major defense acquisition program under section 2366a(a) of title 10, United States Code, by the milestone decision authority.

    (d) Report- Not later than July 15, 2008, and not later than August 15 of each year from 2009 through 2012, the Secretary of Defense shall submit to the congressional defense committees a report on the results of the annual review conducted (if any) for the preceding fiscal year under subsection (a).

    (e) Sunset- The requirement to conduct an annual review under subsection (a) shall terminate on September 30, 2012.

SEC. 817. INVESTMENT STRATEGY FOR MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required- Not later than May 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a report on the strategies of the Department of Defense for balancing the allocation of funds and other resources among major defense acquisition programs.

    (b) Elements- The report required by subsection (a) shall address, at a minimum, the ability of the organizations, policies, and procedures of the Department of Defense to provide for--

      (1) establishing priorities among needed capabilities under major defense acquisition programs, and assessing the resources (including funds, technologies, time, and personnel) needed to achieve such capabilities;

      (2) balancing the cost, schedule, and requirements of major defense acquisition programs, including those within the same functional or mission area, to ensure the most efficient use of resources; and

      (3) ensuring that the budget, requirements, and acquisition processes of the Department of Defense work in a complementary manner to achieve desired results.

    (c) Role of Tri-Chair Committee in Resource Allocation-

      (1) IN GENERAL- The report required by subsection (a) shall also address the role of the committee described in paragraph (2) in the resource allocation process for major defense acquisition programs.

      (2) COMMITTEE- The committee described in this paragraph is a committee (to be known as the `Tri-Chair Committee') composed of the following:

        (A) The Under Secretary of Defense for Acquisition, Technology, and Logistics, who is one of the chairs of the committee.

        (B) The Vice Chairman of the Joint Chiefs of Staff, who is one of the chairs of the committee.

        (C) The Director of Program Analysis and Evaluation, who is one of the chairs of the committee.

        (D) Any other appropriate officials of the Department of Defense, as jointly agreed upon by the Under Secretary and the Vice Chairman.

    (d) Changes in Law- The report required by subsection (a) shall, to the maximum extent practicable, include a discussion of any changes in the budget, acquisition, and requirements processes of the Department of Defense undertaken as a result of changes in law pursuant to any section in this Act.

    (e) Recommendations- The report required by subsection (a) shall include any recommendations, including recommendations for legislative action, that the Secretary considers appropriate to improve the organizations, policies, and procedures described in the report.

SEC. 818. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS ON TOTAL OWNERSHIP COST FOR MAJOR WEAPON SYSTEMS.

    (a) Report Required- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the extent of the implementation of the recommendations set forth in the February 2003 report of the Government Accountability Office entitled `Setting Requirements Differently Could Reduce Weapon Systems' Total Ownership Costs'.

    (b) Elements- The report required by subsection (a) shall include the following:

      (1) For each recommendation described in subsection (a) that has been implemented, or that the Secretary plans to implement--

        (A) a summary of all actions that have been taken to implement such recommendation; and

        (B) a schedule, with specific milestones, for completing the implementation of such recommendation.

      (2) For each recommendation that the Secretary has not implemented and does not plan to implement--

        (A) the reasons for the decision not to implement such recommendation; and

        (B) a summary of any alternative actions the Secretary plans to take to address the purposes underlying such recommendation.

      (3) A summary of any additional actions the Secretary has taken or plans to take to ensure that total ownership cost is appropriately considered in the requirements process for major weapon systems.

Subtitle C--Amendments to General Contracting Authorities, Procedures, and Limitations

SEC. 821. PLAN FOR RESTRICTING GOVERNMENT-UNIQUE CONTRACT CLAUSES ON COMMERCIAL CONTRACTS.

    (a) Plan- The Under Secretary of Defense for Acquisition, Technology, and Logistics shall develop and implement a plan to minimize the number of government-unique contract clauses used in commercial contracts by restricting the clauses to the following:

      (1) Government-unique clauses authorized by law or regulation.

      (2) Any additional clauses that are relevant and necessary to a specific contract.

    (b) Commercial Contract- In this section:

      (1) The term `commercial contract' means a contract awarded by the Federal Government for the procurement of a commercial item.

      (2) The term `commercial item' has the meaning provided by section 4(12) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)).

SEC. 822. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION PROCEDURES FOR CERTAIN COMMERCIAL ITEMS.

    (a) Extension- Section 4202(e) of the Clinger-Cohen Act of 1996 (division D of Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by striking `January 1, 2008' and inserting `January 1, 2010'.

    (b) Report- Not later than March 1, 2008, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the use by the Department of Defense of the authority provided by section 4202(e) of the Clinger-Cohen Act of 1996 (10 U.S.C. 2304 note). The report shall include, at a minimum, the following:

      (1) Summary data on the use of the authority.

      (2) Specific examples of the use of the authority.

      (3) An evaluation of potential benefits and costs of extending the authority after January 1, 2010.

SEC. 823. FIVE-YEAR EXTENSION OF AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE PROJECTS.

    Section 845(i) of the National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended by striking `September 30, 2008' and inserting `September 30, 2013'.

SEC. 824. EXEMPTION OF SPECIAL OPERATIONS COMMAND FROM CERTAIN REQUIREMENTS FOR CERTAIN CONTRACTS RELATING TO VESSELS, AIRCRAFT, AND COMBAT VEHICLES.

    Section 2401(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    `(5) In the case of a contract described in subsection (a)(1)(B), the commander of the special operations command may make a contract without regard to this subsection if--

      `(A) funds are available and obligated for the full cost of the contract (including termination costs) on or before the date the contract is awarded;

      `(B) the Secretary of Defense submits to the congressional defense committees a certification that there is no alternative for meeting urgent operational requirements other than making the contract; and

      `(C) a period of 30 days of continuous session of Congress has expired following the date on which the certification was received by such committees.'.

SEC. 825. PROVISION OF AUTHORITY TO MAINTAIN EQUIPMENT TO UNIFIED COMBATANT COMMAND FOR JOINT WARFIGHTING.

    (a) Authority- Section 167a of title 10, United States Code, is amended--

      (1) in subsection (a), by striking `and acquire' and inserting `, acquire, and maintain';

      (2) by redesignating subsection (f) as subsection (g); and

      (3) by inserting after subsection (e) the following new subsection:

    `(f) Limitation on Authority To Maintain Equipment- The authority delegated under subsection (a) to maintain equipment is subject to the availability of funds authorized and appropriated specifically for that purpose.'.

    (b) Two-Year Extension- Subsection (g) of such section, as so redesignated, is amended--

      (1) by striking `through 2008' and inserting `through 2010'; and

      (2) by striking `September 30, 2008' and inserting `September 30, 2010'.

SEC. 826. MARKET RESEARCH.

    (a) Additional Requirements- Subsection (c) of section 2377 of title 10, United States Code, is amended--

      (1) in paragraph (1)--

        (A) by striking `and' at the end of subparagraph (A);

        (B) by striking the period at the end of subparagraph (B) and inserting `; and'; and

        (C) by adding at the end the following:

        `(C) before awarding a task order or delivery order in excess of the simplified acquisition threshold.'; and

      (2) by adding at the end the following:

    `(4) The head of an agency shall take appropriate steps to ensure that any prime contractor of a contract (or task order or delivery order) in an amount in excess of $5,000,000 for the procurement of items other than commercial items engages in such market research as may be necessary to carry out the requirements of subsection (b)(2) before making purchases for or on behalf of the Department of Defense.'.

    (b) Requirement To Develop Training and Tools- The Secretary of Defense shall develop training to assist contracting officers, and market research tools to assist such officers and prime contractors, in performing appropriate market research as required by subsection (c) of section 2377 of title 10, United States Code, as amended by this section.

SEC. 827. MODIFICATION OF COMPETITION REQUIREMENTS FOR PURCHASES FROM FEDERAL PRISON INDUSTRIES.

    (a) Modification of Competition Requirements-

      (1) IN GENERAL- Section 2410n of title 10, United States Code, is amended by striking subsections (a) and (b) and inserting the following new subsections (a) and (b):

    `(a) Products for Which Federal Prison Industries Does Not Have Significant Market Share- (1) Before purchasing a product listed in the latest edition of the Federal Prison Industries catalog under section 4124(d) of title 18 for which Federal Prison Industries does not have a significant market share, the Secretary of Defense shall conduct market research to determine whether the product is comparable to products available from the private sector that best meet the needs of the Department in terms of price, quality, and time of delivery.

    `(2) If the Secretary determines that a Federal Prison Industries product described in paragraph (1) is not comparable in price, quality, or time of delivery to products of the private sector that best meets the needs of the Department in terms of price, quality, and time of delivery, the Secretary shall use competitive procedures for the procurement of the product, or shall make an individual purchase under a multiple award contract in accordance with the competition requirements applicable to such contract. In conducting such a competition, the Secretary shall consider a timely offer from Federal Prison Industries.

    `(b) Products for Which Federal Prison Industries Has Significant Market Share- (1) The Secretary of Defense may purchase a product listed in the latest edition of the Federal Prison Industries catalog for which Federal Prison Industries has a significant market share only if the Secretary uses competitive procedures for the procurement of the product or makes an individual purchase under a multiple award contract in accordance with the competition requirements applicable to such contract. In conducting such a competition, the Secretary shall consider a timely offer from Federal Prison Industries.

    `(2) For purposes of this subsection, Federal Prison Industries shall be treated as having a significant share of the market for a product if the Secretary, in consultation with the Administrator of Federal Procurement Policy, determines that the Federal Prison Industries share of the Department of Defense market for the category of products including such product is greater than 5 percent.'.

      (2) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect 60 days after the date of the enactment of this Act.

    (b) List of Products for Which Federal Prison Industries Has Significant Market Share-

      (1) INITIAL LIST- Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall publish a list of product categories for which Federal Prison Industries' share of the Department of Defense market is greater than 5 percent, based on the most recent fiscal year for which data is available.

      (2) MODIFICATION- The Secretary may modify the list published under paragraph (1) at any time if the Secretary determines that new data require adding a product category to the list or omitting a product category from the list.

      (3) CONSULTATION- The Secretary shall carry out this subsection in consultation with the Administrator for Federal Procurement Policy.

SEC. 828. MULTIYEAR CONTRACT AUTHORITY FOR ELECTRICITY FROM RENEWABLE ENERGY SOURCES.

    (a) Multiyear Contract Authority- Chapter 141 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2410q. Multiyear contracts: purchase of electricity from renewable energy sources

    `(a) Multiyear Contracts Authorized- Subject to subsection (b), the Secretary of Defense may enter into a contract for a period not to exceed 10 years for the purchase of electricity from sources of renewable energy, as that term is defined in section 203(b)(2) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)(2)).

    `(b) Limitations on Contracts for Periods in Excess of Five Years- The Secretary may exercise the authority in subsection (a) to enter into a contract for a period in excess of five years only if the Secretary determines, on the basis of a business case analysis prepared by the Department of Defense, that--

      `(1) the proposed purchase of electricity under such contract is cost effective for the Department of Defense; and

      `(2) it would not be possible to purchase electricity from the source in an economical manner without the use of a contract for a period in excess of five years.

    `(c) Relationship to Other Multiyear Contracting Authority- Nothing in this section shall be construed to preclude the Department of Defense from using other multiyear contracting authority of the Department to purchase renewable energy.'.

    (b) Clerical Amendment- The table of sections at the beginning of chapter 141 of such title is amended by adding at the end the following new item:

      `2410q. Multiyear contracts: purchase of electricity from renewable energy sources.'.

SEC. 829. PROCUREMENT OF FIRE RESISTANT RAYON FIBER FOR THE PRODUCTION OF UNIFORMS FROM FOREIGN SOURCES.

    (a) Authority To Procure- The Secretary of Defense may procure fire resistant rayon fiber for the production of uniforms that is manufactured in a foreign country referred to in subsection (d) if the Secretary determines either of the following:

      (1) That fire resistant rayon fiber for the production of uniforms is not available from sources within the national technology and industrial base.

      (2) That--

        (A) procuring fire resistant rayon fiber manufactured from suppliers within the national technology and industrial base would result in sole-source contracts or subcontracts for the supply of fire resistant rayon fiber; and

        (B) such sole-source contracts or subcontracts would not be in the best interests of the Government or consistent with the objectives of section 2304 of title 10, United States Code.

    (b) Submission to Congress- Not later than 30 days after making a determination under subsection (a), the Secretary shall submit to Congress a copy of the determination.

    (c) Applicability to Subcontracts- The authority under subsection (a) applies with respect to subcontracts under Department of Defense contracts as well as to such contracts.

    (d) Foreign Countries Covered- The authority under subsection (a) applies with respect to a foreign country that--

      (1) is a party to a defense memorandum of understanding entered into under section 2531 of title 10, United States Code; and

      (2) does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.

    (e) National Technology and Industrial Base Defined- In this section, the term `national technology and industrial base' has the meaning given that term in section 2500 of title 10, United States Code.

    (f) Sunset- The authority under subsection (a) shall expire on the date that is five years after the date of the enactment of this Act.

SEC. 830. COMPTROLLER GENERAL REVIEW OF NONCOMPETITIVE AWARDS OF CONGRESSIONAL AND EXECUTIVE BRANCH INTEREST ITEMS.

    Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report on the use of procedures other than competitive procedures in the award of contracts by the Department of Defense. The report shall compare the procedures used by the Department of Defense for the award of funds for new projects pursuant to congressionally directed spending items, as defined in rule XLIV of the Standing Rules of the Senate, or congressional earmarks, as defined in rule XXI of the Rules of the House of Representatives, with the procedures used by the Department of Defense for the award of funds for new projects of special interest to senior executive branch officials.

Subtitle D--Accountability in Contracting

SEC. 841. COMMISSION ON WARTIME CONTRACTING IN IRAQ AND AFGHANISTAN.

    (a) Establishment- There is hereby established a commission to be known as the `Commission on Wartime Contracting' (in this section referred to as the `Commission').

    (b) Membership Matters-

      (1) MEMBERSHIP- The Commission shall be composed of 8 members, as follows:

        (A) 2 members shall be appointed by the majority leader of the Senate, in consultation with the Chairmen of the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Foreign Relations of the Senate.

        (B) 2 members shall be appointed by the Speaker of the House of Representatives, in consultation with the Chairmen of the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Foreign Affairs of the House of Representatives.

        (C) 1 member shall be appointed by the minority leader of the Senate, in consultation with the Ranking Minority Members of the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Foreign Relations of the Senate.

        (D) 1 member shall be appointed by the minority leader of the House of Representatives, in consultation with the Ranking Minority Member of the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Foreign Affairs of the House of Representatives.

        (E) 2 members shall be appointed by the President, in consultation with the Secretary of Defense and the Secretary of State.

      (2) DEADLINE FOR APPOINTMENTS- All appointments to the Commission shall be made not later than 120 days after the date of the enactment of this Act.

      (3) CO-CHAIRMEN- The Commission shall have two co-chairmen, including--

        (A) a co-chairman who shall be a member of the Commission jointly designated by the Speaker of the House of Representatives and the majority leader of the Senate; and

        (B) a co-chairman who shall be a member of the Commission jointly designated by the minority leader of the House of Representatives and the minority leader of the Senate.

      (4) VACANCY- In the event of a vacancy in a seat on the Commission, the individual appointed to fill the vacant seat shall be--

        (A) appointed by the same officer (or the officer's successor) who made the appointment to the seat when the Commission was first established; and

        (B) if the officer in subparagraph (A) is of a party other than the party of the officer who made the appointment to the seat when the Commission was first established, chosen in consultation with the senior officers in the Senate and the House of Representatives of the party which is the party of the officer who made the appointment to the seat when the Commission was first established.

    (c) Duties-

      (1) GENERAL DUTIES- The Commission shall study the following matters:

        (A) Federal agency contracting for the reconstruction of Iraq and Afghanistan.

        (B) Federal agency contracting for the logistical support of coalition forces operating in Iraq and Afghanistan.

        (C) Federal agency contracting for the performance of security functions in Iraq and Afghanistan.

      (2) SCOPE OF CONTRACTING COVERED- The Federal agency contracting covered by this subsection includes contracts entered into both in the United States and abroad for the performance of activities described in paragraph (1).

      (3) PARTICULAR DUTIES- In carrying out the study under this subsection, the Commission shall assess--

        (A) the extent of the reliance of the Federal Government on contractors to perform functions (including security functions) in Iraq and Afghanistan and the impact of this reliance on the achievement of the objectives of the United States;

        (B) the performance exhibited by Federal contractors for the contracts under review pursuant to paragraph (1), and the mechanisms used to evaluate contractor performance;

        (C) the extent of waste, fraud, and abuse under such contracts;

        (D) the extent to which those responsible for such waste, fraud, and abuse have been held financially or legally accountable;

        (E) the appropriateness of the organizational structure, policies, practices, and resources of the Department of Defense and the Department of State for handling program management and contracting for the programs and contracts under review pursuant to paragraph (1);

        (F) the extent to which contractors under such contracts have engaged in the misuse of force or have used force in a manner inconsistent with the objectives of the operational field commander; and

        (G) the extent of potential violations of the laws of war, Federal law, or other applicable legal standards by contractors under such contracts.

    (d) Reports-

      (1) INTERIM REPORT- On March 1, 2009, the Commission shall submit to Congress an interim report on the study carried out under subsection (c), including the results and findings of the study as of that date.

      (2) OTHER REPORTS- The Commission may from time to time submit to Congress such other reports on the study carried out under subsection (c) as the Commission considers appropriate.

      (3) FINAL REPORT- Not later than two years after the date of the appointment of all of the members of the Commission under subsection (b), the Commission shall submit to Congress a final report on the study carried out under subsection (c). The report shall--

        (A) include the findings of the Commission;

        (B) identify lessons learned relating to contingency program management and contingency contracting covered by the study; and

        (C) include specific recommendations for improvements to be made in--

          (i) the process for defining requirements and developing statements of work for contracts in contingency contracting;

          (ii) the process for awarding contracts and task or delivery orders in contingency contracting;

          (iii) the process for contingency program management;

          (iv) the process for identifying, addressing, and providing accountability for waste, fraud, and abuse in contingency contracting;

          (v) the process for determining which functions are inherently governmental and which functions are appropriate for performance by contractors in a contingency operation (including during combat operations), especially whether providing security in an area of combat operations is inherently governmental;

          (vi) the organizational structure, resources, policies, and practices of the Department of Defense and the Department of State for performing contingency program management; and

          (vii) the process by which roles and responsibilities with respect to management and oversight of contracts in contingency contracting are distributed among the various departments and agencies of the Federal Government, and interagency coordination and communication mechanisms associated with contingency contracting.

    (e) Other Powers and Authorities-

      (1) HEARINGS AND EVIDENCE- The Commission or, on the authority of the Commission, any portion thereof, may, for the purpose of carrying out this section--

        (A) hold such hearings and sit and act at such times and places, take such testimony, receive such evidence, administer such oaths (provided that the quorum for a hearing shall be three members of the Commission); and

        (B) provide for the attendance and testimony of such witnesses and the production of such books, records, correspondence, memoranda, papers, and documents;

      as the Commission, or such portion thereof, may determine advisable.

      (2) INABILITY TO OBTAIN DOCUMENTS OR TESTIMONY- In the event the Commission is unable to obtain testimony or documents needed to conduct its work, the Commission shall notify the committees of Congress of jurisdiction and appropriate investigative authorities.

      (3) ACCESS TO INFORMATION- The Commission may secure directly from the Department of Defense and any other department or agency of the Federal Government any information or assistance that the Commission considers necessary to enable the Commission to carry out the requirements of this section. Upon request of the Commission, the head of such department or agency shall furnish such information expeditiously to the Commission. Whenever information or assistance requested by the Commission is unreasonably refused or not provided, the Commission shall report the circumstances to Congress without delay.

      (4) PERSONNEL- The Commission shall have the authorities provided in section 3161 of title 5, United States Code, and shall be subject to the conditions set forth in such section, except to the extent that such conditions would be inconsistent with the requirements of this section.

      (5) DETAILEES- Any employee of the Federal Government may be detailed to the Commission without reimbursement from the Commission, and such detailee shall retain the rights, status, and privileges of his or her regular employment without interruption.

      (6) SECURITY CLEARANCES- The appropriate departments or agencies of the Federal Government shall cooperate with the Commission in expeditiously providing to the Commission members and staff appropriate security clearances to the extent possible pursuant to existing procedures and requirements, except that no person shall be provided with access to classified information under this section without the appropriate security clearances.

      (7) VIOLATIONS OF LAW-

        (A) REFERRAL TO ATTORNEY GENERAL- The Commission may refer to the Attorney General any violation or potential violation of law identified by the Commission in carrying out its duties under this section.

        (B) REPORTS ON RESULTS OF REFERRAL- The Attorney General shall submit to Congress a report on each prosecution, conviction, resolution, or other disposition that results from a referral made under this subparagraph.

    (f) Termination- The Commission shall terminate on the date that is 60 days after the date of the submittal of its final report under subsection (d)(3).

    (g) Definitions- In this section:

      (1) CONTINGENCY CONTRACTING- The term `contingency contracting' means all stages of the process of acquiring property or services during a contingency operation.

      (2) CONTINGENCY OPERATION- The term `contingency operation' has the meaning given that term in section 101 of title 10, United States Code.

      (3) CONTINGENCY PROGRAM MANAGEMENT- The term `contingency program management' means the process of planning, organizing, staffing, controlling, and leading the combined efforts of participating personnel for the management of a specific acquisition program or programs during contingency operations.

SEC. 842. INVESTIGATION OF WASTE, FRAUD, AND ABUSE IN WARTIME CONTRACTS AND CONTRACTING PROCESSES IN IRAQ AND AFGHANISTAN.

    (a) Audits Required- Thorough audits shall be performed in accordance with this section to identify potential waste, fraud, and abuse in the performance of--

      (1) Department of Defense contracts, subcontracts, and task and delivery orders for the logistical support of coalition forces in Iraq and Afghanistan; and

      (2) Federal agency contracts, subcontracts, and task and delivery orders for the performance of security and reconstruction functions in Iraq and Afghanistan.

    (b) Audit Plans-

      (1) The Department of Defense Inspector General shall develop a comprehensive plan for a series of audits of contracts, subcontracts, and task and delivery orders covered by subsection (a)(1), consistent with the requirements of subsection (g), in consultation with other Inspectors General specified in subsection (c) with regard to any contracts, subcontracts, or task or delivery orders over which such Inspectors General have jurisdiction.

      (2) The Special Inspector General for Iraq Reconstruction shall develop a comprehensive plan for a series of audits of contracts, subcontracts, and task and delivery orders covered by subsection (a)(2) relating to Iraq, consistent with the requirements of subsection (h), in consultation with other Inspectors General specified in subsection (c) with regard to any contracts, subcontracts, or task or delivery orders over which such Inspectors General have jurisdiction.

      (3) The Special Inspector General for Afghanistan Reconstruction shall develop a comprehensive plan for a series of audits of contracts, subcontracts, and task and delivery orders covered by subsection (a)(2) relating to Afghanistan, consistent with the requirements of subsection (h), in consultation with other Inspectors General specified in subsection (c) with regard to any contracts, subcontracts, or task or delivery orders over which such Inspectors General have jurisdiction.

    (c) Performance of Audits by Certain Inspectors General- The Special Inspector General for Iraq Reconstruction, during such period as such office exists, the Special Inspector General for Afghanistan Reconstruction, during such period as such office exists, the Inspector General of the Department of Defense, the Inspector General of the Department of State, and the Inspector General of the United States Agency for International Development shall perform such audits as required by subsection (a) and identified in the audit plans developed pursuant to subsection (b) as fall within the respective scope of their duties as specified in law.

    (d) Coordination of Audits- The Inspectors General specified in subsection (c) shall work to coordinate the performance of the audits required by subsection (a) and identified in the audit plans developed under subsection (b) including through councils and working groups composed of such Inspectors General.

    (e) Joint Audits- If one or more audits required by subsection (a) and identified in an audit plan developed under subsection (b) falls within the scope of the duties of more than one of the Inspectors General specified in subsection (c), and such Inspectors General agree that such audit or audits are best pursued jointly, such Inspectors General shall enter into a memorandum of understanding relating to the performance of such audit or audits.

    (f) Separate Audits- If one or more audits required by subsection (a) and identified in an audit plan developed under subsection (b) falls within the scope of the duties of more than one of the Inspectors General specified in subsection (c), and such Inspectors General do not agree that such audit or audits are best pursued jointly, such audit or audits shall be separately performed by one or more of the Inspectors General concerned.

    (g) Scope of Audits of Contracts- Audits conducted pursuant to subsection (a)(1) shall examine, at a minimum, one or more of the following issues:

      (1) The manner in which contract requirements were developed.

      (2) The procedures under which contracts or task or delivery orders were awarded.

      (3) The terms and conditions of contracts or task or delivery orders.

      (4) The staffing and method of performance of contractors, including cost controls.

      (5) The efficacy of Department of Defense management and oversight, including the adequacy of staffing and training of officials responsible for such management and oversight.

      (6) The flow of information from contractors to officials responsible for contract management and oversight.

    (h) Scope of Audits of Other Contracts- Audits conducted pursuant to subsection (a)(2) shall examine, at a minimum, one or more of the following issues:

      (1) The manner in which contract requirements were developed and contracts or task and delivery orders were awarded.

      (2) The manner in which the Federal agency exercised control over the performance of contractors.

      (3) The extent to which operational field commanders were able to coordinate or direct the performance of contractors in an area of combat operations.

      (4) The degree to which contractor employees were properly screened, selected, trained, and equipped for the functions to be performed.

      (5) The nature and extent of any incidents of misconduct or unlawful activity by contractor employees.

      (6) The nature and extent of any activity by contractor employees that was inconsistent with the objectives of operational field commanders.

      (7) The extent to which any incidents of misconduct or unlawful activity were reported, documented, investigated, and (where appropriate) prosecuted.

    (i) Independent Conduct of Audit Functions- All audit functions under this section, including audit planning and coordination, shall be performed by the relevant Inspectors General in an independent manner, without consultation with the Commission established pursuant to section 841 of this Act. All audit reports resulting from such audits shall be available to the Commission.

SEC. 843. ENHANCED COMPETITION REQUIREMENTS FOR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Defense Contracts-

      (1) LIMITATION ON SINGLE AWARD CONTRACTS- Section 2304a(d) of title 10, United States Code, is amended--

        (A) by redesignating paragraph (3) as paragraph (4); and

        (B) by inserting after paragraph (2) the following new paragraph (3):

    `(3)(A) No task or delivery order contract in an amount estimated to exceed $100,000,000 (including all options) may be awarded to a single source unless the head of the agency determines in writing that--

      `(i) the task or delivery orders expected under the contract are so integrally related that only a single source can reasonably perform the work;

      `(ii) the contract provides only for firm, fixed price task orders or delivery orders for--

        `(I) products for which unit prices are established in the contract; or

        `(II) services for which prices are established in the contract for the specific tasks to be performed;

      `(iii) only one source is qualified and capable of performing the work at a reasonable price to the government; or

      `(iv) because of exceptional circumstances, it is necessary in the public interest to award the contract to a single source.

    `(B) The head of the agency shall notify Congress within 30 days after any determination under subparagraph (A)(iv).'.

      (2) ENHANCED COMPETITION FOR ORDERS IN EXCESS OF $5,000,000- Section 2304c of such title is amended--

        (A) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively;

        (B) by inserting after subsection (c) the following new subsection (d):

    `(d) Enhanced Competition for Orders in Excess of $5,000,000- In the case of a task or delivery order in excess of $5,000,000, the requirement to provide all contractors a fair opportunity to be considered under subsection (b) is not met unless all such contractors are provided, at a minimum--

      `(1) a notice of the task or delivery order that includes a clear statement of the agency's requirements;

      `(2) a reasonable period of time to provide a proposal in response to the notice;

      `(3) disclosure of the significant factors and subfactors, including cost or price, that the agency expects to consider in evaluating such proposals, and their relative importance;

      `(4) in the case of an award that is to be made on a best value basis, a written statement documenting the basis for the award and the relative importance of quality and price or cost factors; and

      `(5) an opportunity for a post-award debriefing consistent with the requirements of section 2305(b)(5) of this title.'; and

        (C) by striking subsection (e), as redesignated by paragraph (1), and inserting the following new subsection (e):

    `(e) Protests- (1) A protest is not authorized in connection with the issuance or proposed issuance of a task or delivery order except for--

      `(A) a protest on the ground that the order increases the scope, period, or maximum value of the contract under which the order is issued; or

      `(B) a protest of an order valued in excess of $10,000,000.

    `(2) Notwithstanding section 3556 of title 31, the Comptroller General of the United States shall have exclusive jurisdiction of a protest authorized under paragraph (1)(B).

    `(3) This subsection shall be in effect for three years, beginning on the date that is 120 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008.'.

      (3) EFFECTIVE DATES-

        (A) SINGLE AWARD CONTRACTS- The amendments made by paragraph (1) shall take effect on the date that is 120 days after the date of the enactment of this Act, and shall apply with respect to any contract awarded on or after such date.

        (B) ORDERS IN EXCESS OF $5,000,000- The amendments made by paragraph (2) shall take effect on the date that is 120 days after the date of the enactment of this Act, and shall apply with respect to any task or delivery order awarded on or after such date.

    (b) Civilian Agency Contracts-

      (1) LIMITATION ON SINGLE AWARD CONTRACTS- Section 303H(d) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253h(d)) is amended--

        (A) by redesignating paragraph (3) as paragraph (4); and

        (B) by inserting after paragraph (2) the following new paragraph (3):

    `(3)(A) No task or delivery order contract in an amount estimated to exceed $100,000,000 (including all options) may be awarded to a single source unless the head of the executive agency determines in writing that--

      `(i) the task or delivery orders expected under the contract are so integrally related that only a single source can reasonably perform the work;

      `(ii) the contract provides only for firm, fixed price task orders or delivery orders for--

        `(I) products for which unit prices are established in the contract; or

        `(II) services for which prices are established in the contract for the specific tasks to be performed;

      `(iii) only one source is qualified and capable of performing the work at a reasonable price to the government; or

      `(iv) because of exceptional circumstances, it is necessary in the public interest to award the contract to a single source.

    `(B) The head of the executive agency shall notify Congress within 30 days after any determination under subparagraph (A)(iv).'.

      (2) ENHANCED COMPETITION FOR ORDERS IN EXCESS OF $5,000,000- Section 303J of such Act (41 U.S.C. 253j) is amended--

        (A) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively;

        (B) by inserting after subsection (c) the following new subsection (d):

    `(d) Enhanced Competition for Orders in Excess of $5,000,000- In the case of a task or delivery order in excess of $5,000,000, the requirement to provide all contractors a fair opportunity to be considered under subsection (b) is not met unless all such contractors are provided, at a minimum--

      `(1) a notice of the task or delivery order that includes a clear statement of the executive agency's requirements;

      `(2) a reasonable period of time to provide a proposal in response to the notice;

      `(3) disclosure of the significant factors and subfactors, including cost or price, that the executive agency expects to consider in evaluating such proposals, and their relative importance;

      `(4) in the case of an award that is to be made on a best value basis, a written statement documenting the basis for the award and the relative importance of quality and price or cost factors; and

      `(5) an opportunity for a post-award debriefing consistent with the requirements of section 303B(e).'; and

        (C) by striking subsection (e), as redesignated by paragraph (1), and inserting the following new subsection (e):

    `(e) Protests- (1) A protest is not authorized in connection with the issuance or proposed issuance of a task or delivery order except for--

      `(A) a protest on the ground that the order increases the scope, period, or maximum value of the contract under which the order is issued; or

      `(B) a protest of an order valued in excess of $10,000,000.

    `(2) Notwithstanding section 3556 of title 31, United States Code, the Comptroller General of the United States shall have exclusive jurisdiction of a protest authorized under paragraph (1)(B).

    `(3) This subsection shall be in effect for three years, beginning on the date that is 120 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008.'.

      (3) EFFECTIVE DATES-

        (A) SINGLE AWARD CONTRACTS- The amendments made by paragraph (1) shall take effect on the date that is 120 days after the date of the enactment of this Act, and shall apply with respect to any contract awarded on or after such date.

        (B) ORDERS IN EXCESS OF $5,000,000- The amendments made by paragraph (2) shall take effect on the date that is 120 days after the date of the enactment of this Act, and shall apply with respect to any task or delivery order awarded on or after such date.

SEC. 844. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS FOR NONCOMPETITIVE CONTRACTS.

    (a) Civilian Agency Contracts-

      (1) IN GENERAL- Section 303 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253) is amended by adding at the end the following new subsection:

    `(j)(1)(A) Except as provided in subparagraph (B), in the case of a procurement permitted by subsection (c), the head of an executive agency shall make publicly available, within 14 days after the award of the contract, the documents containing the justification and approval required by subsection (f)(1) with respect to the procurement.

    `(B) In the case of a procurement permitted by subsection (c)(2), subparagraph (A) shall be applied by substituting `30 days' for `14 days'.

    `(2) The documents shall be made available on the website of the agency and through a government-wide website selected by the Administrator for Federal Procurement Policy.

    `(3) This subsection does not require the public availability of information that is exempt from public disclosure under section 552(b) of title 5, United States Code.'.

      (2) CONFORMING AMENDMENT- Section 303(f) of such Act is amended--

        (A) by striking paragraph (4); and

        (B) by redesignating paragraph (5) as paragraph (4).

    (b) Defense Agency Contracts-

      (1) IN GENERAL- Section 2304 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(l)(1)(A) Except as provided in subparagraph (B), in the case of a procurement permitted by subsection (c), the head of an agency shall make publicly available, within 14 days after the award of the contract, the documents containing the justification and approval required by subsection (f)(1) with respect to the procurement.

    `(B) In the case of a procurement permitted by subsection (c)(2), subparagraph (A) shall be applied by substituting `30 days' for `14 days'.

    `(2) The documents shall be made available on the website of the agency and through a government-wide website selected by the Administrator for Federal Procurement Policy.

    `(3) This subsection does not require the public availability of information that is exempt from public disclosure under section 552(b) of title 5.'.

      (2) CONFORMING AMENDMENT- Section 2304(f) of such title is amended--

        (A) by striking paragraph (4); and

        (B) by redesignating paragraphs (5) and (6) as paragraphs (4) and (5), respectively.

SEC. 845. DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS.

    (a) Required Annex on Significant Audit Findings-

      (1) IN GENERAL- Each Inspector General appointed under the Inspector General Act of 1978 shall submit, as part of the semiannual report submitted to Congress pursuant to section 5 of such Act, an annex on final, completed contract audit reports issued to the contracting activity containing significant audit findings issued during the period covered by the semiannual report concerned.

      (2) ELEMENTS- Such annex shall include--

        (A) a list of such contract audit reports;

        (B) for each audit report, a brief description of the nature of the significant audit findings in the report; and

        (C) for each audit report, the specific amounts of costs identified as unsupported, questioned, or disallowed.

      (3) INFORMATION EXEMPT FROM PUBLIC DISCLOSURE- (A) Nothing in this subsection shall be construed to require the release of information to the public that is exempt from public disclosure under section 552(b) of title 5, United States Code.

      (B) For each element required by paragraph (2), the Inspector General concerned shall note each instance where information has been redacted in accordance with the requirements of section 552(b) of title 5, United States Code, and submit an unredacted annex to the committees listed in subsection (d)(2) within 7 days after the issuance of the semiannual report.

    (b) Defense Contract Audit Agency Included- For purposes of subsection (a), audits of the Defense Contract Audit Agency shall be included in the annex provided by the Inspector General of the Department of Defense if they include significant audit findings.

    (c) Exception- Subsection (a) shall not apply to an Inspector General if no audits described in such subsection were issued during the covered period.

    (d) Submission of Individual Audits-

      (1) REQUIREMENT- The head of each Federal department or agency shall provide, within 14 days after a request in writing by the chairman or ranking member of any committee listed in paragraph (2), a full and unredacted copy of any audit described in subsection (a). Such copy shall include an identification of information in the audit exempt from public disclosure under section 552(b) of title 5, United States Code.

      (2) COMMITTEES- The committees listed in this paragraph are the following:

        (A) The Committee on Oversight and Government Reform of the House of Representatives.

        (B) The Committee on Homeland Security and Governmental Affairs of the Senate.

        (C) The Committees on Appropriations of the House of Representatives and the Senate.

        (D) With respect to the Department of Defense and the Department of Energy, the Committees on Armed Services of the Senate and House of Representatives.

        (E) The Committees of primary jurisdiction over the agency or department to which the request is made.

    (e) Classified Information- Nothing in this section shall be interpreted to require the handling of classified information or information relating to intelligence sources and methods in a manner inconsistent with any law, regulation, executive order, or rule of the House of Representatives or of the Senate relating to the handling or protection of such information.

    (f) Definitions- In this section:

      (1) SIGNIFICANT AUDIT FINDINGS- The term `significant audit findings' includes--

        (A) unsupported, questioned, or disallowed costs in an amount in excess of $10,000,000; or

        (B) other findings that the Inspector General of the agency or department concerned determines to be significant.

      (2) CONTRACT- The term `contract' includes a contract, an order placed under a task or delivery order contract, or a subcontract.

SEC. 846. PROTECTION FOR CONTRACTOR EMPLOYEES FROM REPRISAL FOR DISCLOSURE OF CERTAIN INFORMATION.

    (a) Increased Protection From Reprisal- Subsection (a) of section 2409 of title 10, United States Code, is amended--

      (1) by striking `disclosing to a Member of Congress' and inserting `disclosing to a Member of Congress, a representative of a committee of Congress, an Inspector General, the Government Accountability Office, a Department of Defense employee responsible for contract oversight or management,'; and

      (2) by striking `information relating to a substantial violation of law related to a contract (including the competition for or negotiation of a contract)' and inserting `information that the employee reasonably believes is evidence of gross mismanagement of a Department of Defense contract or grant, a gross waste of Department of Defense funds, a substantial and specific danger to public health or safety, or a violation of law related to a Department of Defense contract (including the competition for or negotiation of a contract) or grant'.

    (b) Clarification of Inspector General Determination- Subsection (b) of such section is amended--

      (1) by inserting `(1)' after `Investigation of Complaints- ';

      (2) by striking `an agency' and inserting `the Department of Defense, or the Inspector General of the National Aeronautics and Space Administration in the case of a complaint regarding the National Aeronautics and Space Administration'; and

      (3) by adding at the end the following new paragraph:

    `(2)(A) Except as provided under subparagraph (B), the Inspector General shall make a determination that a complaint is frivolous or submit a report under paragraph (1) within 180 days after receiving the complaint.

    `(B) If the Inspector General is unable to complete an investigation in time to submit a report within the 180-day period specified in subparagraph (A) and the person submitting the complaint agrees to an extension of time, the Inspector General shall submit a report under paragraph (1) within such additional period of time as shall be agreed upon between the Inspector General and the person submitting the complaint.'.

    (c) Acceleration of Schedule for Denying Relief or Providing Remedy- Subsection (c) of such section is amended--

      (1) in paragraph (1), by striking `If the head of the agency determines that a contractor has subjected a person to a reprisal prohibited by subsection (a), the head of the agency may' and inserting after `(1)' the following: `Not later than 30 days after receiving an Inspector General report pursuant to subsection (b), the head of the agency concerned shall determine whether there is sufficient basis to conclude that the contractor concerned has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall';

      (2) by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively; and

      (3) by inserting after paragraph (1) the following new paragraphs:

    `(2) If the head of an executive agency issues an order denying relief under paragraph (1) or has not issued an order within 210 days after the submission of a complaint under subsection (b), or in the case of an extension of time under paragraph (b)(2)(B), not later than 30 days after the expiration of the extension of time, and there is no showing that such delay is due to the bad faith of the complainant, the complainant shall be deemed to have exhausted all administrative remedies with respect to the complaint, and the complainant may bring a de novo action at law or equity against the contractor to seek compensatory damages and other relief available under this section in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy. Such an action shall, at the request of either party to the action, be tried by the court with a jury.

    `(3) An Inspector General determination and an agency head order denying relief under paragraph (2) shall be admissible in evidence in any de novo action at law or equity brought pursuant to this subsection.'.

    (d) Definitions- Subsection (e) of such section is amended--

      (1) in paragraph (4), by inserting `or a grant' after `a contract'; and

      (2) by inserting before the period at the end the following: `and any Inspector General that receives funding from, or has oversight over contracts awarded for or on behalf of, the Secretary of Defense'.

SEC. 847. REQUIREMENTS FOR SENIOR DEPARTMENT OF DEFENSE OFFICIALS SEEKING EMPLOYMENT WITH DEFENSE CONTRACTORS.

    (a) Requirement to Seek and Obtain Written Opinion-

      (1) REQUEST- An official or former official of the Department of Defense described in subsection (c) who, within two years after leaving service in the Department of Defense, expects to receive compensation from a Department of Defense contractor, shall, prior to accepting such compensation, request a written opinion regarding the applicability of post-employment restrictions to activities that the official or former official may undertake on behalf of a contractor.

      (2) SUBMISSION OF REQUEST- A request for a written opinion under paragraph (1) shall be submitted in writing to an ethics official of the Department of Defense having responsibility for the organization in which the official or former official serves or served and shall set forth all information relevant to the request, including information relating to government positions held and major duties in those positions, actions taken concerning future employment, positions sought, and future job descriptions, if applicable.

      (3) WRITTEN OPINION- Not later than 30 days after receiving a request by an official or former official of the Department of Defense described in subsection (c), the appropriate ethics counselor shall provide such official or former official a written opinion regarding the applicability or inapplicability of post-employment restrictions to activities that the official or former official may undertake on behalf of a contractor.

      (4) CONTRACTOR REQUIREMENT- A Department of Defense contractor may not knowingly provide compensation to a former Department of Defense official described in subsection (c) within two years after such former official leaves service in the Department of Defense, without first determining that the former official has sought and received (or has not received after 30 days of seeking) a written opinion from the appropriate ethics counselor regarding the applicability of post-employment restrictions to the activities that the former official is expected to undertake on behalf of the contractor.

      (5) ADMINISTRATIVE ACTIONS- In the event that an official or former official of the Department of Defense described in subsection (c), or a Department of Defense contractor, knowingly fails to comply with the requirements of this subsection, the Secretary of Defense may take any of the administrative actions set forth in section 27(e) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(e)) that the Secretary of Defense determines to be appropriate.

    (b) Recordkeeping Requirement-

      (1) DATABASE- Each request for a written opinion made pursuant to this section, and each written opinion provided pursuant to such a request, shall be retained by the Department of Defense in a central database or repository for not less than five years beginning on the date on which the written opinion was provided.

      (2) INSPECTOR GENERAL REVIEW- The Inspector General of the Department of Defense shall conduct periodic reviews to ensure that written opinions are being provided and retained in accordance with the requirements of this section. The first such review shall be conducted no later than two years after the date of the enactment of this Act.

    (c) Covered Department of Defense Officials- An official or former official of the Department of Defense is covered by the requirements of this section if such official or former official--

      (1) participated personally and substantially in an acquisition as defined in section 4(16) of the Office of Federal Procurement Policy Act with a value in excess of $10,000,000 and serves or served--

        (A) in an Executive Schedule position under subchapter II of chapter 53 of title 5, United States Code;

        (B) in a position in the Senior Executive Service under subchapter VIII of chapter 53 of title 5, United States Code; or

        (C) in a general or flag officer position compensated at a rate of pay for grade O-7 or above under section 201 of title 37, United States Code; or

      (2) serves or served as a program manager, deputy program manager, procuring contracting officer, administrative contracting officer, source selection authority, member of the source selection evaluation board, or chief of a financial or technical evaluation team for a contract in an amount in excess of $10,000,000.

    (d) Definition- In this section, the term `post-employment restrictions' includes--

      (1) section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423);

      (2) section 207 of title 18, United States Code; and

      (3) any other statute or regulation restricting the employment or activities of individuals who leave government service in the Department of Defense.

SEC. 848. REPORT ON CONTRACTOR ETHICS PROGRAMS OF MAJOR DEFENSE CONTRACTORS.

    (a) Report Required- Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the internal ethics programs of major defense contractors.

    (b) Elements- The report required by subsection (a) shall address, at a minimum--

      (1) the extent to which major defense contractors have internal ethics programs in place;

      (2) the extent to which the ethics programs described in paragraph (1) include--

        (A) the availability of internal mechanisms, such as hotlines, for contractor employees to report conduct that may violate applicable requirements of law or regulation;

        (B) notification to contractor employees of the availability of external mechanisms, such as the hotline of the Inspector General of the Department of Defense, for the reporting of conduct that may violate applicable requirements of law or regulation;

        (C) notification to contractor employees of their right to be free from reprisal for disclosing a substantial violation of law related to a contract, in accordance with section 2409 of title 10, United States Code;

        (D) ethics training programs for contractor officers and employees;

        (E) internal audit or review programs to identify and address conduct that may violate applicable requirements of law or regulation;

        (F) self-reporting requirements, under which contractors report conduct that may violate applicable requirements of law or regulation to appropriate government officials;

        (G) disciplinary action for contractor employees whose conduct is determined to have violated applicable requirements of law or regulation; and

        (H) appropriate management oversight to ensure the successful implementation of such ethics programs;

      (3) the extent to which the Department of Defense monitors or approves the ethics programs of major defense contractors; and

      (4) the advantages and disadvantages of legislation requiring that defense contractors develop internal ethics programs and requiring that specific elements be included in such ethics programs.

    (c) Access to Information- In accordance with the contract clause required pursuant to section 2313(c) of title 10, United States Code, each major defense contractor shall provide the Comptroller General access to information requested by the Comptroller General that is within the scope of the report required by this section.

    (d) Major Defense Contractor Defined- In this section, the term `major defense contractor' means any company that was awarded contracts by the Department of Defense during fiscal year 2006 in amounts totaling more than $500,000,000.

SEC. 849. CONTINGENCY CONTRACTING TRAINING FOR PERSONNEL OUTSIDE THE ACQUISITION WORKFORCE AND EVALUATIONS OF ARMY COMMISSION RECOMMENDATIONS.

    (a) Training Requirement- Section 2333 of title 10, United States Code is amended--

      (1) by redesignating subsection (e) as subsection (f); and

      (2) by inserting after subsection (d) the following new subsection (e):

    `(e) Training for Personnel Outside Acquisition Workforce- (1) The joint policy for requirements definition, contingency program management, and contingency contracting required by subsection (a) shall provide for training of military personnel outside the acquisition workforce (including operational field commanders and officers performing key staff functions for operational field commanders) who are expected to have acquisition responsibility, including oversight duties associated with contracts or contractors, during combat operations, post-conflict operations, and contingency operations.

    `(2) Training under paragraph (1) shall be sufficient to ensure that the military personnel referred to in that paragraph understand the scope and scale of contractor support they will experience in contingency operations and are prepared for their roles and responsibilities with regard to requirements definition, program management (including contractor oversight), and contingency contracting.

    `(3) The joint policy shall also provide for the incorporation of contractors and contract operations in mission readiness exercises for operations that will include contracting and contractor support.'.

    (b) Organizational Requirements-

      (1) EVALUATION BY THE SECRETARY OF DEFENSE- The Secretary of Defense, in consultation with the Chairman of the Joint Chiefs of Staff, shall evaluate the recommendations included in the report of the Commission on Army Acquisition and Program Management in Expeditionary Operations and shall determine the extent to which such recommendations are applicable to the other Armed Forces. Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit a report to the congressional defense committees with the conclusions of this evaluation and a description of the Secretary's plans for implementing the Commission's recommendations for Armed Forces other than the Army.

      (2) EVALUATION BY THE SECRETARY OF THE ARMY- The Secretary of the Army, in consultation with the Chief of Staff of the Army, shall evaluate the recommendations included in the report of the Commission on Army Acquisition and Program Management in Expeditionary Operations. Not later than 120 days after the date of the enactment of this Act, the Secretary of the Army shall submit to the congressional defense committees a report detailing the Secretary's plans for implementation of the recommendations of the Commission. The report shall include the following:

        (A) For each recommendation that has been implemented, or that the Secretary plans to implement--

          (i) a summary of all actions that have been taken to implement such recommendation; and

          (ii) a schedule, with specific milestones, for completing the implementation of such recommendation.

        (B) For each recommendation that the Secretary has not implemented and does not plan to implement--

          (i) the reasons for the decision not to implement such recommendation; and

          (ii) a summary of any alternative actions the Secretary plans to take to address the purposes underlying such recommendation.

        (C) For each recommendation that would require legislation to implement, the Secretary's recommendations regarding such legislation.

    (c) Comptroller General Report- Section 854(c) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2346) is amended by adding at the end the following new paragraph:

      `(3) COMPTROLLER GENERAL REPORT- Not later than 180 days after the date on which the Secretary of Defense submits the final report required by paragraph (2), the Comptroller General of the United States shall--

        `(A) review the joint policies developed by the Secretary, including the implementation of such policies; and

        `(B) submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the extent to which such policies, and the implementation of such policies, comply with the requirements of section 2333 of title 10, United States Code (as so amended).'.

Subtitle E--Acquisition Workforce Provisions

SEC. 851. REQUIREMENT FOR SECTION ON DEFENSE ACQUISITION WORKFORCE IN STRATEGIC HUMAN CAPITAL PLAN.

    (a) In General- In the update of the strategic human capital plan for 2008, and in each subsequent update, the Secretary of Defense shall include a separate section focused on the defense acquisition workforce, including both military and civilian personnel.

    (b) Funding- The section shall contain--

      (1) an identification of the funding programmed for defense acquisition workforce improvements, including a specific identification of funding provided in the Department of Defense Acquisition Workforce Fund established under section 1705 of title 10, United States Code (as added by section 852 of this Act);

      (2) an identification of the funding programmed for defense acquisition workforce training in the future-years defense program, including a specific identification of funding provided by the acquisition workforce training fund established under section 37(h)(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 433(h)(3));

      (3) a description of how the funding identified pursuant to paragraphs (1) and (2) will be implemented during the fiscal year concerned to address the areas of need identified in accordance with subsection (c);

      (4) a statement of whether the funding identified under paragraphs (1) and (2) is being fully used; and

      (5) a description of any continuing shortfall in funding available for the defense acquisition workforce.

    (c) Areas of Need- The section also shall identify any areas of need in the defense acquisition workforce, including--

      (1) gaps in the skills and competencies of the current or projected defense acquisition workforce;

      (2) changes to the types of skills needed in the current or projected defense acquisition workforce;

      (3) incentives to retain in the defense acquisition workforce qualified, experienced defense acquisition workforce personnel; and

      (4) incentives for attracting new, high-quality personnel to the defense acquisition workforce.

    (d) Strategic Human Capital Plan Defined- In this section, the term `strategic human capital plan' means the strategic human capital plan required under section 1122 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3452; 10 U.S.C. prec. 1580 note).

SEC. 852. DEPARTMENT OF DEFENSE ACQUISITION WORKFORCE DEVELOPMENT FUND.

    (a) In General-

      (1) ESTABLISHMENT OF FUND- Chapter 87 of title 10, United States Code, is amended by inserting after section 1704 the following new section:

`Sec. 1705. Department of Defense Acquisition Workforce Development Fund

    `(a) Establishment- The Secretary of Defense shall establish a fund to be known as the `Department of Defense Acquisition Workforce Fund' (in this section referred to as the `Fund') to provide funds, in addition to other funds that may be available, for the recruitment, training, and retention of acquisition personnel of the Department of Defense.

    `(b) Purpose- The purpose of the Fund is to ensure that the Department of Defense acquisition workforce has the capacity, in both personnel and skills, needed to properly perform its mission, provide appropriate oversight of contractor performance, and ensure that the Department receives the best value for the expenditure of public resources.

    `(c) Management- The Fund shall be managed by a senior official of the Department of Defense designated by the Under Secretary of Defense for Acquisition, Technology, and Logistics for that purpose, from among persons with an extensive background in management relating to acquisition and personnel.

    `(d) Elements-

      `(1) IN GENERAL- The Fund shall consist of amounts as follows:

        `(A) Amounts credited to the Fund under paragraph (2).

        `(B) Any other amounts appropriated to, credited to, or deposited into the Fund by law.

      `(2) CREDITS TO THE FUND- (A) There shall be credited to the Fund an amount equal to the applicable percentage for a fiscal year of all amounts expended by the Department of Defense in such fiscal year for contract services, other than services relating to research and development and services relating to military construction.

      `(B) Not later than 30 days after the end of the third fiscal year quarter of fiscal year 2008, and 30 days after the end of each fiscal year quarter thereafter, the head of each military department and Defense Agency shall remit to the Secretary of Defense an amount equal to the applicable percentage for such fiscal year of the amount expended by such military department or Defense Agency, as the case may be, during such fiscal year quarter for services covered by subparagraph (A). Any amount so remitted shall be credited to the Fund under subparagraph (A).

      `(C) For purposes of this paragraph, the applicable percentage for a fiscal year is a percentage as follows:

        `(i) For fiscal year 2008, 0.5 percent.

        `(ii) For fiscal year 2009, 1 percent.

        `(iii) For fiscal year 2010, 1.5 percent.

        `(iv) For any fiscal year after fiscal year 2010, 2 percent.

      `(D) The Secretary of Defense may reduce a percentage established in subparagraph (C) for any fiscal year, if he determines that the application of such percentage would result in the crediting of an amount greater than is reasonably needed for the purpose of the Fund. In no event may the Secretary reduce a percentage for any fiscal year below a percentage that results in the deposit in a fiscal year of an amount equal to the following:

        `(i) For fiscal year 2008, $300,000,000.

        `(ii) For fiscal year 2009, $400,000,000.

        `(iii) For fiscal year 2010, $500,000,000.

        `(iv) For any fiscal year after fiscal year 2010, $600,000,000.

    `(e) Availability of Funds-

      `(1) IN GENERAL- Subject to the provisions of this subsection, amounts in the Fund shall be available to the Secretary of Defense for expenditure, or for transfer to a military department or Defense Agency, for the recruitment, training, and retention of acquisition personnel of the Department of Defense for the purpose of the Fund, including for the provision of training and retention incentives to the acquisition workforce of the Department.

      `(2) PROHIBITION- Amounts in the Fund may not be obligated for any purpose other than purposes described in paragraph (1) or otherwise in accordance with this subsection.

      `(3) GUIDANCE- The Under Secretary of Defense for Acquisition, Technology, and Logistics, acting through the senior official designated to manage the Fund, shall issue guidance for the administration of the Fund. Such guidance shall include provisions--

        `(A) identifying areas of need in the acquisition workforce for which amounts in the Fund may be used, including--

          `(i) changes to the types of skills needed in the acquisition workforce;

          `(ii) incentives to retain in the acquisition workforce qualified, experienced acquisition workforce personnel; and

          `(iii) incentives for attracting new, high-quality personnel to the acquisition workforce;

        `(B) describing the manner and timing for applications for amounts in the Fund to be submitted;

        `(C) describing the evaluation criteria to be used for approving or prioritizing applications for amounts in the Fund in any fiscal year; and

        `(D) describing measurable objectives of performance for determining whether amounts in the Fund are being used in compliance with this section.

      `(4) LIMITATION ON PAYMENTS TO OR FOR CONTRACTORS- Amounts in the Fund shall not be available for payments to contractors or contractor employees, other than for the purpose of providing advanced training to Department of Defense employees.

      `(5) PROHIBITION ON PAYMENT OF BASE SALARY OF CURRENT EMPLOYEES- Amounts in the Fund may not be used to pay the base salary of any person who was an employee of the Department as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008.

      `(6) DURATION OF AVAILABILITY- Amounts credited to the Fund under subsection (d)(2) shall remain available for expenditure in the fiscal year for which credited and the two succeeding fiscal years.

    `(f) Annual Report- Not later than 60 days after the end of each fiscal year beginning with fiscal year 2008, the Secretary of Defense shall submit to the congressional defense committees a report on the operation of the Fund during such fiscal year. Each report shall include, for the fiscal year covered by such report, the following:

      `(1) A statement of the amounts remitted to the Secretary for crediting to the Fund for such fiscal year by each military department and Defense Agency, and a statement of the amounts credited to the Fund for such fiscal year.

      `(2) A description of the expenditures made from the Fund (including expenditures following a transfer of amounts in the Fund to a military department or Defense Agency) in such fiscal year, including the purpose of such expenditures.

      `(3) A description and assessment of improvements in the Department of Defense acquisition workforce resulting from such expenditures.

      `(4) Recommendations for additional authorities to fulfill the purpose of the Fund.

      `(5) A statement of the balance remaining in the Fund at the end of such fiscal year.

    `(g) Acquisition Workforce Defined- In this section, the term `acquisition workforce' means personnel in positions designated under section 1721 of this title as acquisition positions for purposes of this chapter.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of subchapter I of such chapter is amended by inserting after the item relating to section 1704 the following new item:

      `1705. Department of Defense Acquisition Workforce Development Fund.'.

    (b) Effective Date- Section 1705 of title 10, United States Code, as added by subsection (a), shall take effect on the date of the enactment of this Act.

SEC. 853. EXTENSION OF AUTHORITY TO FILL SHORTAGE CATEGORY POSITIONS FOR CERTAIN FEDERAL ACQUISITION POSITIONS.

    Section 1413(b) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1665) is amended by striking `September 30, 2007' and inserting `September 30, 2012'.

SEC. 854. REPEAL OF SUNSET OF ACQUISITION WORKFORCE TRAINING FUND.

    Section 37(h)(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 433(h)(3)) is amended by striking subparagraph (H).

SEC. 855. FEDERAL ACQUISITION WORKFORCE IMPROVEMENTS.

    (a) Associate Administrator for Acquisition Workforce Programs- The Administrator for Federal Procurement Policy shall designate a member of the Senior Executive Service as the Associate Administrator for Acquisition Workforce Programs. The Associate Administrator for Acquisition Workforce Programs shall be located in the Federal Acquisition Institute (or its successor). The Associate Administrator shall be responsible for--

      (1) supervising the acquisition workforce training fund established under section 37(h)(3) of the Office of Federal Procurement Policy Act (41 U. S. C. 433(h)(3));

      (2) developing, in coordination with Chief Acquisition Officers and Chief Human Capital Officers, a strategic human capital plan for the acquisition workforce of the Federal Government;

      (3) reviewing and providing input to individual agency acquisition workforce succession plans;

      (4) recommending to the Administrator and other senior government officials appropriate programs, policies, and practices to increase the quantity and quality of the Federal acquisition workforce; and

      (5) carrying out such other functions as the Administrator may assign.

    (b) Acquisition and Contracting Training Programs Within Executive Agencies-

      (1) REQUIREMENT- The head of each executive agency, after consultation with the Associate Administrator for Acquisition Workforce Programs, shall establish and operate acquisition and contracting training programs. Such programs shall--

        (A) have curricula covering a broad range of acquisition and contracting disciplines corresponding to the specific acquisition and contracting needs of the agency involved;

        (B) be developed and applied according to rigorous standards; and

        (C) be designed to maximize efficiency, through the use of self-paced courses, online courses, on-the-job training, and the use of remote instructors, wherever such features can be applied without reducing the effectiveness of the training or negatively affecting academic standards.

      (2) CHIEF ACQUISITION OFFICER AUTHORITIES AND RESPONSIBILITIES- Subject to the authority, direction, and control of the head of an executive agency, the Chief Acquisition Officer for such agency shall carry out all powers, functions, and duties of the head of the agency with respect to implementation of this subsection. The Chief Acquisition Officer shall ensure that the policies established by the head of the agency in accordance with this subsection are implemented throughout the agency.

    (c) Government-Wide Policies and Evaluation- The Administrator for Federal Procurement Policy shall issue policies to promote the development of performance standards for training and uniform implementation of this section by executive agencies, with due regard for differences in program requirements among agencies that may be appropriate and warranted in view of the agency mission. The Administrator shall evaluate the implementation of the provisions of subsection (b) by executive agencies.

    (d) Acquisition and Contracting Training Reporting- The Administrator for Federal Procurement Policy shall ensure that the heads of executive agencies collect and maintain standardized information on the acquisition and contracting workforce related to the implementation of subsection (b).

    (e) Acquisition Workforce Human Capital Succession Plan-

      (1) IN GENERAL- Not later than 1 year after the date of the enactment of this Act, each Chief Acquisition Officer for an executive agency shall develop, in consultation with the Chief Human Capital Officer for the agency and the Associate Administrator for Acquisition Workforce Programs, a succession plan consistent with the agency's strategic human capital plan for the recruitment, development, and retention of the agency's acquisition workforce, with a particular focus on warranted contracting officers and program managers of the agency.

      (2) CONTENT OF PLAN- The acquisition workforce succession plan shall address--

        (A) recruitment goals for personnel from procurement intern programs;

        (B) the agency's acquisition workforce training needs;

        (C) actions to retain high performing acquisition professionals who possess critical relevant skills;

        (D) recruitment goals for personnel from the Federal Career Intern Program; and

        (E) recruitment goals for personnel from the Presidential Management Fellows Program.

    (f) Training in the Acquisition of Architect and Engineering Services- The Administrator for Federal Procurement Policy shall ensure that a sufficient number of Federal employees are trained in the acquisition of architect and engineering services.

    (g) Utilization of Recruitment and Retention Authorities- The Administrator for Federal Procurement Policy, in coordination with the Director of the Office of Personnel Management, shall encourage executive agencies to utilize existing authorities, including direct hire authority and tuition assistance programs, to recruit and retain acquisition personnel and consider recruiting acquisition personnel who may be retiring from the private sector, consistent with existing laws and regulations.

    (h) Definitions- In this section:

      (1) EXECUTIVE AGENCY- The term `executive agency' has the meaning provided in section 4(1) of the Office of Federal Procurement Policy Act (41 U.S.C. 403(1)).

      (2) CHIEF ACQUISITION OFFICER- The term `Chief Acquisition Officer' means a Chief Acquisition Officer for an executive agency appointed pursuant to section 16 of the Office of Federal Procurement Policy Act (41 U.S.C. 414).

Subtitle F--Contracts in Iraq and Afghanistan

SEC. 861. MEMORANDUM OF UNDERSTANDING ON MATTERS RELATING TO CONTRACTING.

    (a) Memorandum of Understanding Required- The Secretary of Defense, the Secretary of State, and the Administrator of the United States Agency for International Development shall, not later than July 1, 2008, enter into a memorandum of understanding regarding matters relating to contracting for contracts in Iraq or Afghanistan.

    (b) Matters Covered- The memorandum of understanding required by subsection (a) shall address, at a minimum, the following:

      (1) Identification of the major categories of contracts in Iraq or Afghanistan being awarded by the Department of Defense, the Department of State, or the United States Agency for International Development.

      (2) Identification of the roles and responsibilities of each department or agency for matters relating to contracting for contracts in Iraq or Afghanistan.

      (3) Responsibility for establishing procedures for, and the coordination of, movement of contractor personnel in Iraq or Afghanistan.

      (4) Identification of common databases that will serve as repositories of information on contracts in Iraq or Afghanistan and contractor personnel in Iraq or Afghanistan, including agreement on the elements to be included in the databases, including, at a minimum--

        (A) with respect to each contract--

          (i) a brief description of the contract (to the extent consistent with security considerations);

          (ii) the total value of the contract; and

          (iii) whether the contract was awarded competitively; and

        (B) with respect to contractor personnel--

          (i) the total number of personnel employed on contracts in Iraq or Afghanistan;

          (ii) the total number of personnel performing security functions under contracts in Iraq or Afghanistan; and

          (iii) the total number of personnel working under contracts in Iraq or Afghanistan who have been killed or wounded.

      (5) Responsibility for maintaining and updating information in the common databases identified under paragraph (4).

      (6) Responsibility for the collection and referral to the appropriate Government agency of any information relating to offenses under chapter 47 of title 10, United States Code (the Uniform Code of Military Justice) or chapter 212 of title 18, United States Code (commonly referred to as the Military Extraterritorial Jurisdiction Act), including a clarification of responsibilities under section 802(a)(10) of title 10, United States Code (article 2(a) of the Uniform Code of Military Justice), as amended by section 552 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364).

    (c) Implementation of Memorandum of Understanding- Not later than 120 days after the memorandum of understanding required by subsection (a) is signed, the Secretary of Defense, the Secretary of State, and the Administrator of the United States Agency for International Development shall issue such policies or guidance and prescribe such regulations as are necessary to implement the memorandum of understanding for the relevant matters pertaining to their respective agencies.

    (d) Copies Provided to Congress-

      (1) MEMORANDUM OF UNDERSTANDING- Copies of the memorandum of understanding required by subsection (a) shall be provided to the relevant committees of Congress within 30 days after the memorandum is signed.

      (2) REPORT ON IMPLEMENTATION- Not later than 180 days after the memorandum of understanding required by subsection (a) is signed, the Secretary of Defense, the Secretary of State, and the Administrator of the United States Agency for International Development shall each provide a report to the relevant committees of Congress on the implementation of the memorandum of understanding.

      (3) DATABASES- The Secretary of Defense, the Secretary of State, or the Administrator of the United States Agency for International Development shall provide access to the common databases identified under subsection (b)(4) to the relevant committees of Congress.

      (4) CONTRACTS- Effective on the date of the enactment of this Act, copies of any contracts in Iraq or Afghanistan awarded after December 1, 2007, shall be provided to any of the relevant committees of Congress within 15 days after the submission of a request for such contract or contracts from such committee to the department or agency managing the contract.

SEC. 862. CONTRACTORS PERFORMING PRIVATE SECURITY FUNCTIONS IN AREAS OF COMBAT OPERATIONS.

    (a) Regulations on Contractors Performing Private Security Functions-

      (1) IN GENERAL- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Secretary of State, shall prescribe regulations on the selection, training, equipping, and conduct of personnel performing private security functions under a covered contract in an area of combat operations.

      (2) ELEMENTS- The regulations prescribed under subsection (a) shall, at a minimum, establish--

        (A) a process for registering, processing, accounting for, and keeping appropriate records of personnel performing private security functions in an area of combat operations;

        (B) a process for authorizing and accounting for weapons to be carried by, or available to be used by, personnel performing private security functions in an area of combat operations;

        (C) a process for the registration and identification of armored vehicles, helicopters, and other military vehicles operated by contractors performing private security functions in an area of combat operations;

        (D) a process under which contractors are required to report all incidents, and persons other than contractors are permitted to report incidents, in which--

          (i) a weapon is discharged by personnel performing private security functions in an area of combat operations;

          (ii) personnel performing private security functions in an area of combat operations are killed or injured; or

          (iii) persons are killed or injured, or property is destroyed, as a result of conduct by contractor personnel;

        (E) a process for the independent review and, if practicable, investigation of--

          (i) incidents reported pursuant to subparagraph (D); and

          (ii) incidents of alleged misconduct by personnel performing private security functions in an area of combat operations;

        (F) requirements for qualification, training, screening (including, if practicable, through background checks), and security for personnel performing private security functions in an area of combat operations;

        (G) guidance to the commanders of the combatant commands on the issuance of--

          (i) orders, directives, and instructions to contractors performing private security functions relating to equipment, force protection, security, health, safety, or relations and interaction with locals;

          (ii) predeployment training requirements for personnel performing private security functions in an area of combat operations, addressing the requirements of this section, resources and assistance available to contractor personnel, country information and cultural training, and guidance on working with host country nationals and military; and

          (iii) rules on the use of force for personnel performing private security functions in an area of combat operations;

        (H) a process by which a commander of a combatant command may request an action described in subsection (b)(3); and

        (I) a process by which the training requirements referred to in subparagraph (G)(ii) shall be implemented.

      (3) AVAILABILITY OF ORDERS, DIRECTIVES, AND INSTRUCTIONS- The regulations prescribed under subsection (a) shall include mechanisms to ensure the provision and availability of the orders, directives, and instructions referred to in paragraph (2)(G)(i) to contractors referred to in that paragraph, including through the maintenance of a single location (including an Internet website, to the extent consistent with security considerations) at or through which such contractors may access such orders, directives, and instructions.

    (b) Contract Clause on Contractors Performing Private Security Functions-

      (1) REQUIREMENT UNDER FAR- Not later than 180 days after the date of the enactment of this Act, the Federal Acquisition Regulation issued in accordance with section 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) shall be revised to require the insertion into each covered contract (or, in the case of a task order, the contract under which the task order is issued) of a contract clause addressing the selection, training, equipping, and conduct of personnel performing private security functions under such contract.

      (2) CLAUSE REQUIREMENT- The contract clause required by paragraph (1) shall require, at a minimum, that the contractor concerned shall--

        (A) comply with regulations prescribed under subsection (a), including any revisions or updates to such regulations, and follow the procedures established in such regulations for--

          (i) registering, processing, accounting for, and keeping appropriate records of personnel performing private security functions in an area of combat operations;

          (ii) authorizing and accounting of weapons to be carried by, or available to be used by, personnel performing private security functions in an area of combat operations;

          (iii) registration and identification of armored vehicles, helicopters, and other military vehicles operated by contractors and subcontractors performing private security functions in an area of combat operations; and

          (iv) the reporting of incidents in which--

            (I) a weapon is discharged by personnel performing private security functions in an area of combat operations;

            (II) personnel performing private security functions in an area of combat operations are killed or injured; or

            (III) persons are killed or injured, or property is destroyed, as a result of conduct by contractor personnel;

        (B) ensure that all personnel performing private security functions under such contract are briefed on and understand their obligation to comply with--

          (i) qualification, training, screening (including, if practicable, through background checks), and security requirements established by the Secretary of Defense for personnel performing private security functions in an area of combat operations;

          (ii) applicable laws and regulations of the United States and the host country, and applicable treaties and international agreements, regarding the performance of the functions of the contractor;

          (iii) orders, directives, and instructions issued by the applicable commander of a combatant command relating to equipment, force protection, security, health, safety, or relations and interaction with locals; and

          (iv) rules on the use of force issued by the applicable commander of a combatant command for personnel performing private security functions in an area of combat operations; and

        (C) cooperate with any investigation conducted by the Department of Defense pursuant to subsection (a)(2)(E) by providing access to employees of the contractor and relevant information in the possession of the contractor regarding the incident concerned.

      (3) NONCOMPLIANCE OF PERSONNEL WITH CLAUSE- The contracting officer for a covered contract may direct the contractor, at its own expense, to remove or replace any personnel performing private security functions in an area of combat operations who violate or fail to comply with applicable requirements of the clause required by this subsection. If the violation or failure to comply is a gross violation or failure or is repeated, the contract may be terminated for default.

      (4) APPLICABILITY- The contract clause required by this subsection shall be included in all covered contracts awarded on or after the date that is 180 days after the date of the enactment of this Act. Federal agencies shall make best efforts to provide for the inclusion of the contract clause required by this subsection in covered contracts awarded before such date.

      (5) INSPECTOR GENERAL REPORT ON PILOT PROGRAM ON IMPOSITION OF FINES FOR NONCOMPLIANCE OF PERSONNEL WITH CLAUSE- Not later than March 30, 2008, the Inspector General of the Department of Defense shall submit to Congress a report assessing the feasibility and advisability of carrying out a pilot program for the imposition of fines on contractors for personnel who violate or fail to comply with applicable requirements of the clause required by this section as a mechanism for enhancing the compliance of such personnel with the clause. The report shall include--

        (A) an assessment of the feasibility and advisability of carrying out the pilot program; and

        (B) if the Inspector General determines that carrying out the pilot program is feasible and advisable--

          (i) recommendations on the range of contracts and subcontracts to which the pilot program should apply; and

          (ii) a schedule of fines to be imposed under the pilot program for various types of personnel actions or failures.

    (c) Areas of Combat Operations-

      (1) DESIGNATION- The Secretary of Defense shall designate the areas constituting an area of combat operations for purposes of this section by not later than 120 days after the date of the enactment of this Act.

      (2) PARTICULAR AREAS- Iraq and Afghanistan shall be included in the areas designated as an area of combat operations under paragraph (1).

      (3) ADDITIONAL AREAS- The Secretary may designate any additional area as an area constituting an area of combat operations for purposes of this section if the Secretary determines that the presence or potential of combat operations in such area warrants designation of such area as an area of combat operations for purposes of this section.

      (4) MODIFICATION OR ELIMINATION OF DESIGNATION- The Secretary may modify or cease the designation of an area under this subsection as an area of combat operations if the Secretary determines that combat operations are no longer ongoing in such area.

    (d) Exception- The requirements of this section shall not apply to contracts entered into by elements of the intelligence community in support of intelligence activities.

SEC. 863. COMPTROLLER GENERAL REVIEWS AND REPORTS ON CONTRACTING IN IRAQ AND AFGHANISTAN.

    (a) Reviews and Reports Required-

      (1) IN GENERAL- Every 12 months, the Comptroller General shall review contracts in Iraq or Afghanistan and submit to the relevant committees of Congress a report on such review.

      (2) MATTERS COVERED- A report under this subsection shall cover the following with respect to the contracts in Iraq or Afghanistan reviewed for the report:

        (A) Total number of contracts and task orders awarded during the period covered by the report.

        (B) Total number of active contracts and task orders.

        (C) Total value of all contracts and task orders awarded during the reporting period.

        (D) Total value of active contracts and task orders.

        (E) The extent to which such contracts have used competitive procedures.

        (F) Total number of contractor personnel working on contracts during the reporting period.

        (G) Total number of contractor personnel, on average, who are performing security functions during the reporting period.

        (H) The number of contractor personnel killed or wounded during the reporting period.

        (I) Information on any specific contract or class of contracts that the Comptroller General determines raises issues of significant concern.

      (3) SUBMISSION OF REPORTS- The Comptroller General shall submit an initial report under this subsection not later than October 1, 2008, and shall submit an updated report every year thereafter until October 1, 2010.

    (b) Access to Databases on Contracts- The Secretary of Defense and the Secretary of State shall provide full access to the databases described in section 861(b)(4) to the Comptroller General for purposes of the reviews carried out under this section.

SEC. 864. DEFINITIONS AND OTHER GENERAL PROVISIONS.

    (a) Definitions- In this subtitle:

      (1) MATTERS RELATING TO CONTRACTING- The term `matters relating to contracting', with respect to contracts in Iraq and Afghanistan, means all matters relating to awarding, funding, managing, tracking, monitoring, and providing oversight to contracts and contractor personnel.

      (2) CONTRACT IN IRAQ OR AFGHANISTAN- The term `contract in Iraq or Afghanistan' means a contract with the Department of Defense, the Department of State, or the United States Agency for International Development, a subcontract at any tier issued under such a contract, or a task order or delivery order at any tier issued under such a contract (including a contract, subcontract, or task order or delivery order issued by another Government agency for the Department of Defense, the Department of State, or the United States Agency for International Development), if the contract, subcontract, or task order or delivery order involves worked performed in Iraq or Afghanistan for a period longer than 14 days.

      (3) COVERED CONTRACT- The term `covered contract' means--

        (A) a contract of a Federal agency for the performance of services in an area of combat operations, as designated by the Secretary of Defense under subsection (c) of section 862;

        (B) a subcontract at any tier under such a contract; or

        (C) a task order or delivery order issued under such a contract or subcontract.

      (4) CONTRACTOR- The term `contractor', with respect to a covered contract, means the contractor or subcontractor carrying out the covered contract.

      (5) PRIVATE SECURITY FUNCTIONS- The term `private security functions' means activities engaged in by a contractor under a covered contract as follows:

        (A) Guarding of personnel, facilities, or property of a Federal agency, the contractor or subcontractor, or a third party.

        (B) Any other activity for which personnel are required to carry weapons in the performance of their duties.

      (6) RELEVANT COMMITTEES OF CONGRESS- The term `relevant committees of Congress' means each of the following committees:

        (A) The Committees on Armed Services of the Senate and the House of Representatives.

        (B) The Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives.

        (C) The Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives.

        (D) For purposes of contracts relating to the National Foreign Intelligence Program, the Select Committee on Intelligence of the Senate and the Permanent Select Committee on Intelligence of the House of Representatives.

    (b) Classified Information- Nothing in this subtitle shall be interpreted to require the handling of classified information or information relating to intelligence sources and methods in a manner inconsistent with any law, regulation, executive order, or rule of the House of Representatives or of the Senate relating to the handling or protection of such information.

Subtitle G--Defense Materiel Readiness Board

SEC. 871. ESTABLISHMENT OF DEFENSE MATERIEL READINESS BOARD.

    (a) Establishment- Not later than 6 months after the date of the enactment of this Act, the Secretary of Defense shall establish a Defense Materiel Readiness Board (in this subtitle referred to as the `Board') within the Office of the Secretary of Defense.

    (b) Membership- The Secretary shall appoint the chairman and the members of the Board from among officers of the Armed Forces with expertise in matters relevant to the function of the Board to assess materiel readiness and evaluate plans and policies relating to materiel readiness. At a minimum, the Board shall include representatives of the Joint Chiefs of Staff, each of the Armed Forces, and each of the reserve components of the Armed Forces.

    (c) Staff- The Secretary of Defense shall assign staff, and request the Secretaries of the military departments to assign staff, as necessary to assist the Board in carrying out its duties.

    (d) Functions- The Board shall provide independent assessments of materiel readiness, materiel readiness shortfalls, and materiel readiness plans to the Secretary of Defense and the Congress. To carry out such functions, the Board shall--

      (1) monitor and assess the materiel readiness of the Armed Forces;

      (2) assist the Secretary of Defense in the identification of deficiencies in the materiel readiness of the Armed Forces caused by shortfalls in weapons systems, equipment, and supplies;

      (3) identify shortfalls in materiel readiness, including critical materiel readiness shortfalls, for purposes of the Secretary's designations under section 872 and the funding needed to address such shortfalls;

      (4) assess the adequacy of current Department of Defense plans, policies, and programs to address shortfalls in materiel readiness, including critical materiel readiness shortfalls (as designated by the Secretary under section 872), and to sustain and improve materiel readiness;

      (5) assist the Secretary of Defense in determining whether the industrial capacity of the Department of Defense and of the defense industrial base is being best utilized to support the materiel readiness needs of the Armed Forces;

      (6) review and assess Department of Defense systems for measuring the status of current materiel readiness of the Armed Forces; and

      (7) make recommendations with respect to materiel readiness funding, measurement techniques, plans, policies, and programs.

    (e) Reports- The Board shall submit to the Secretary of Defense a report summarizing its findings and recommendations not less than once every six months. Within 30 days after receiving a report from the Board, the Secretary shall forward the report in its entirety, together with his comments, to the congressional defense committees. The report shall be submitted in unclassified form. To the extent necessary, the report may be accompanied by a classified annex.

SEC. 872. CRITICAL MATERIEL READINESS SHORTFALLS.

    (a) Designation of Critical Materiel Readiness Shortfalls-

      (1) DESIGNATION- The Secretary of Defense may designate any requirement of the Armed Forces for equipment or supplies as a critical materiel readiness shortfall if there is a shortfall in the required equipment or supplies that materially reduces readiness of the Armed Forces and that--

        (A) cannot be adequately addressed by identifying acceptable substitute capabilities or cross leveling of equipment that does not unacceptably reduce the readiness of other Armed Forces; and

        (B) that is likely to persist for more than two years based on currently projected budgets and schedules for deliveries of equipment and supplies.

      (2) CONSIDERATION OF BOARD FINDINGS AND RECOMMENDATIONS- In making any such designation, the Secretary shall take into consideration the findings and recommendations of the Defense Materiel Readiness Board.

    (b) Measures to Address Critical Materiel Readiness Shortfalls- The Secretary of Defense shall ensure that critical materiel readiness shortfalls designated pursuant to subsection (a)(1) are transmitted to the relevant officials of the Department of Defense responsible for requirements, budgets, and acquisition, and that such officials prioritize and address such shortfalls in the shortest time frame practicable.

    (c) Transfer Authority-

      (1) IN GENERAL- The amounts of authorizations that the Secretary may transfer under the authority of section 1001 of this Act is hereby increased by $2,000,000,000.

      (2) LIMITATIONS- The additional transfer authority provided by this section--

        (A) may be made only from authorizations to the Department of Defense for fiscal year 2008;

        (B) may be exercised solely for the purpose of addressing critical materiel readiness shortfalls as designated by the Secretary of Defense under subsection (a); and

        (C) is subject to the same terms, conditions, and procedures as other transfer authority under section 1001 of this Act.

    (d) Strategic Readiness Fund-

      (1) ESTABLISHMENT- There is established on the books of the Treasury a fund to be known as the Department of Defense Strategic Readiness Fund (in this subsection referred to as the `Fund'), which shall be administered by the Secretary of the Treasury.

      (2) PURPOSES- The Fund shall be used to address critical materiel readiness shortfalls as designated by the Secretary of Defense under subsection (a).

      (3) ASSETS OF FUND- There shall be deposited into the Fund any amount appropriated to the Fund, which shall constitute the assets of the Fund.

      (4) LIMITATION- The procurement unit cost (as defined in section 2432(a) of title 10, United States Code) of any item purchased using assets of the Fund, whether such assets are in the Fund or after such assets have been transferred from the Fund using the authority provided in subsection (c), shall not exceed $30,000,000.

    (e) Multiyear Contract Notification-

      (1) NOTIFICATION- If the Secretary of a military department makes the determination described in paragraph (2) with respect to the use of a multiyear contract, the Secretary shall notify the congressional defense committees within 30 days of the determination and provide a detailed description of the proposed multiyear contract.

      (2) DETERMINATION- The determination referred to in paragraph (1) is a determination by the Secretary of a military department that the use of a multiyear contract to procure an item to address a critical materiel readiness shortfall--

        (A) will significantly accelerate efforts to address a critical materiel readiness shortfall;

        (B) will provide savings compared to the total anticipated costs of carrying out the contract through annual contracts; and

        (C) will serve the interest of national security.

    (f) Definition- In this section, the term `critical materiel readiness shortfall' means a critical materiel readiness shortfall designated by the Secretary of Defense under this section.

Subtitle H--Other Matters

SEC. 881. CLEARINGHOUSE FOR RAPID IDENTIFICATION AND DISSEMINATION OF COMMERCIAL INFORMATION TECHNOLOGIES.

    (a) Requirement to Establish Clearinghouse- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, acting through the Assistant Secretary of Defense for Networks and Information Integration, shall establish a clearinghouse for identifying, assessing, and disseminating knowledge about readily available information technologies (with an emphasis on commercial off-the-shelf information technologies) that could support the warfighting mission of the Department of Defense.

    (b) Responsibilities- The clearinghouse established pursuant to subsection (a) shall be responsible for the following:

      (1) Developing a process to rapidly assess and set priorities and needs for significant information technology needs of the Department of Defense that could be met by commercial technologies, including a process for--

        (A) aligning priorities and needs with the requirements of the commanders of the combatant command; and

        (B) proposing recommendations to the commanders of the combatant command of feasible technical solutions for further evaluation.

      (2) Identifying and assessing emerging commercial technologies (including commercial off-the-shelf technologies) that could support the warfighting mission of the Department of Defense, including the priorities and needs identified pursuant to paragraph (1).

      (3) Disseminating information about commercial technologies identified pursuant to paragraph (2) to commanders of combatant commands and other potential users of such technologies.

      (4) Identifying gaps in commercial technologies and working to stimulate investment in research and development in the public and private sectors to address those gaps.

      (5) Enhancing internal data and communications systems of the Department of Defense for sharing and retaining information regarding commercial technology priorities and needs, technologies available to meet such priorities and needs, and ongoing research and development directed toward gaps in such technologies.

      (6) Developing mechanisms, including web-based mechanisms, to facilitate communications with industry regarding the priorities and needs of the Department of Defense identified pursuant to paragraph (1) and commercial technologies available to address such priorities and needs.

      (7) Assisting in the development of guides to help small information technology companies with promising technologies to understand and navigate the funding and acquisition processes of the Department of Defense.

      (8) Developing methods to measure how well processes developed by the clearinghouse are being utilized and to collect data on an ongoing basis to assess the benefits of commercial technologies that are procured on the recommendation of the clearinghouse.

    (c) Personnel- The Secretary of Defense, acting through the Assistant Secretary of Defense for Networks and Information Integration, shall provide for the hiring and support of employees (including detailees from other components of the Department of Defense and from other Federal departments or agencies) to assist in identifying, assessing, and disseminating information regarding commercial technologies under this section.

    (d) Report to Congress- Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the implementation of this section.

SEC. 882. AUTHORITY TO LICENSE CERTAIN MILITARY DESIGNATIONS AND LIKENESSES OF WEAPONS SYSTEMS TO TOY AND HOBBY MANUFACTURERS.

    (a) Authority to License Certain Items- Section 2260 of title 10, United States Code, is amended--

      (1) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and

      (2) by inserting after subsection (b) the following new subsection:

    `(c) Licenses for Qualifying Companies- (1) The Secretary concerned may license trademarks, service marks, certification marks, and collective marks owned or controlled by the Secretary relating to military designations and likenesses of military weapons systems to any qualifying company upon receipt of a request from the company.

    `(2) For purposes of paragraph (1), a qualifying company is any United States company that--

      `(A) is a toy or hobby manufacturer; and

      `(B) is determined by the Secretary concerned to be qualified in accordance with such criteria as determined appropriate by the Secretary of Defense.

    `(3) The fee for a license under this subsection shall not exceed by more than a nominal amount the amount needed to recover all costs of the Department of Defense in processing the request for the license and supplying the license.

    `(4) A license to a qualifying company under this subsection shall provide that the license may not be transferred, sold, or relicensed by the qualifying company.

    `(5) A license under this subsection shall not be an exclusive license.'.

    (b) Effective Date- The Secretary of Defense shall prescribe regulations to implement the amendment made by this section not later than 180 days after the date of the enactment of this Act.

SEC. 883. MODIFICATIONS TO LIMITATION ON CONTRACTS TO ACQUIRE MILITARY FLIGHT SIMULATOR.

    (a) Effect on Existing Contracts- Section 832 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2331) is amended by adding at the end the following new subsection:

    `(e) Effect on Existing Contracts- The limitation in subsection (a) does not apply to any service contract of a military department to acquire a military flight simulator, or to any renewal or extension of, or follow-on contract to, such a contract, if--

      `(1) the contract was in effect as of October 17, 2006;

      `(2) the number of flight simulators to be acquired under the contract (or renewal, extension, or follow-on) will not result in the total number of flight simulators acquired by the military department concerned through service contracts to exceed the total number of flight simulators to be acquired under all service contracts of such department for such simulators in effect as of October 17, 2006; and

      `(3) in the case of a renewal or extension of, or follow-on contract to, the contract, the Secretary of the military department concerned provides to the congressional defense committees a written notice of the decision to exercise an option to renew or extend the contract, or to issue a solicitation for bids or proposals using competitive procedures for a follow-on contract, and an economic analysis as described in subsection (c) supporting the decision, at least 30 days before carrying out such decision.'.

    (b) Change in Grounds for Waiver- Section 832(c)(1) of such Act, as redesignated by subsection (a), is amend by striking `necessary for national security purposes' and inserting `in the national interest'.

SEC. 884. REQUIREMENTS RELATING TO WAIVERS OF CERTAIN DOMESTIC SOURCE LIMITATIONS RELATING TO SPECIALTY METALS.

    (a) Notice Requirement- At least 30 days prior to making a domestic nonavailability determination pursuant to section 2533b(b) of title 10, United States Code, that would apply to more than one contract of the Department of Defense, the Secretary of Defense shall, to the maximum extent practicable and in a manner consistent with the protection of national security information and confidential business information--

      (1) publish a notice on the website maintained by the General Services Administration known as FedBizOpps.gov (or any successor site) of the Secretary's intent to make the domestic nonavailability determination; and

      (2) solicit information relevant to such notice from interested parties, including producers of specialty metal mill products.

    (b) Determination- (1) The Secretary shall take into consideration all information submitted pursuant to subsection (a) in making a domestic nonavailability determination pursuant to section 2533b(b) of title 10, United States Code, that would apply to more than one contract of the Department of Defense, and may also consider other relevant information that cannot be made part of the public record consistent with the protection of national security information and confidential business information.

    (2) The Secretary shall ensure that any such determination and the rationale for such determination is made publicly available to the maximum extent consistent with the protection of national security information and confidential business information.

SEC. 885. TELEPHONE SERVICES FOR MILITARY PERSONNEL SERVING IN COMBAT ZONES.

    (a) Competitive Procedures Required-

      (1) REQUIREMENT- When the Secretary of Defense considers it necessary to provide morale, welfare, and recreation telephone services for military personnel serving in combat zones, the Secretary shall use competitive procedures when entering into a contract to provide those services.

      (2) REVIEW AND DETERMINATION- Before soliciting bids or proposals for new contracts, or considering extensions to existing contracts, to provide morale, welfare, and recreation telephone services for military personnel serving in combat zones, the Secretary shall review and determine whether it is in the best interest of the Department to require bids or proposals, or adjustments for the purpose of extending a contract, to include options that minimize the cost of the telephone services to individual users while providing individual users the flexibility of using phone cards from other than the prospective contractor. The Secretary shall submit the results of this review and determination to the Committees on Armed Services of the Senate and the House of Representatives.

    (b) Effective Date-

      (1) REQUIREMENT- Subsection (a)(1) shall apply to any new contract to provide morale, welfare, and recreation telephone services for military personnel serving in combat zones that is entered into after the date of the enactment of this Act.

      (2) REVIEW AND DETERMINATION- Subsection (a)(2) shall apply to any new contract or extension to an existing contract to provide morale, welfare, and recreation telephone services for military personnel serving in combat zones that is entered into or agreed upon after the date of the enactment of this Act.

SEC. 886. ENHANCED AUTHORITY TO ACQUIRE PRODUCTS AND SERVICES PRODUCED IN IRAQ AND AFGHANISTAN.

    (a) In General- In the case of a product or service to be acquired in support of military operations or stability operations in Iraq or Afghanistan (including security, transition, reconstruction, and humanitarian relief activities) for which the Secretary of Defense makes a determination described in subsection (b), the Secretary may conduct a procurement in which--

      (1) competition is limited to products or services that are from Iraq or Afghanistan;

      (2) procedures other than competitive procedures are used to award a contract to a particular source or sources from Iraq or Afghanistan; or

      (3) a preference is provided for products or services that are from Iraq or Afghanistan.

    (b) Determination- A determination described in this subsection is a determination by the Secretary that--

      (1) the product or service concerned is to be used only by the military forces, police, or other security personnel of Iraq or Afghanistan; or

      (2) it is in the national security interest of the United States to limit competition, use procedures other than competitive procedures, or provide a preference as described in subsection (a) because--

        (A) such limitation, procedure, or preference is necessary to provide a stable source of jobs in Iraq or Afghanistan; and

        (B) such limitation, procedure, or preference will not adversely affect--

          (i) military operations or stability operations in Iraq or Afghanistan; or

          (ii) the United States industrial base.

    (c) Products, Services, and Sources From Iraq or Afghanistan- For the purposes of this section:

      (1) A product is from Iraq or Afghanistan if it is mined, produced, or manufactured in Iraq or Afghanistan.

      (2) A service is from Iraq or Afghanistan if it is performed in Iraq or Afghanistan by citizens or permanent resident aliens of Iraq or Afghanistan.

      (3) A source is from Iraq or Afghanistan if it--

        (A) is located in Iraq or Afghanistan; and

        (B) offers products or services that are from Iraq or Afghanistan.

SEC. 887. DEFENSE SCIENCE BOARD REVIEW OF DEPARTMENT OF DEFENSE POLICIES AND PROCEDURES FOR THE ACQUISITION OF INFORMATION TECHNOLOGY.

    (a) Review Required- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall direct the Defense Science Board to carry out a review of Department of Defense policies and procedures for the acquisition of information technology.

    (b) Matters To Be Addressed- The matters addressed by the review required by subsection (a) shall include the following:

      (1) Department of Defense policies and procedures for acquiring national security systems, business information systems, and other information technology.

      (2) The roles and responsibilities in implementing such policies and procedures of--

        (A) the Under Secretary of Defense for Acquisition, Technology, and Logistics;

        (B) the Chief Information Officer of the Department of Defense;

        (C) the Director of the Business Transformation Agency;

        (D) the service acquisition executives;

        (E) the chief information officers of the military departments;

        (F) Defense Agency acquisition officials;

        (G) the information officers of the Defense Agencies; and

        (H) the Director of Operational Test and Evaluation and the heads of the operational test organizations of the military departments and the Defense Agencies.

      (3) The application of such policies and procedures to information technologies that are an integral part of weapons or weapon systems.

      (4) The requirements of subtitle III of title 40, United States Code, and chapter 35 of title 44, United States Code, regarding performance-based and results-based management, capital planning, and investment control in the acquisition of information technology.

      (5) Department of Defense policies and procedures for maximizing the usage of commercial information technology while ensuring the security of the microelectronics, software, and networks of the Department.

      (6) The suitability of Department of Defense acquisition regulations, including Department of Defense Directive 5000.1 and the accompanying milestones, to the acquisition of information technology systems.

      (7) The adequacy and transparency of metrics used by the Department of Defense for the acquisition of information technology systems.

      (8) The effectiveness of existing statutory and regulatory reporting requirements for the acquisition of information technology systems.

      (9) The adequacy of operational and development test resources (including infrastructure and personnel), policies, and procedures to ensure appropriate testing of information technology systems both during development and before operational use.

      (10) The appropriate policies and procedures for technology assessment, development, and operational testing for purposes of the adoption of commercial technologies into information technology systems.

    (c) Report Required- Not later than one year after the date of enactment of this Act, the Secretary shall submit to the congressional defense committees a report on the results of the review required by subsection (a). The report shall include the findings and recommendations of the Defense Science Board pursuant to the review, including such recommendations for legislative or administrative action as the Board considers appropriate, together with any comments the Secretary considers appropriate.

SEC. 888. GREEN PROCUREMENT POLICY.

    (a) Sense of Congress- It is the sense of Congress that the Department of Defense should establish a system to document and track the use of environmentally preferable products and services.

    (b) Report- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report on a plan to increase the usage of environmentally friendly products that minimize potential impacts to human health and the environment at all Department of Defense facilities inside and outside the United States, including through the direct purchase of products and the purchase of products by facility maintenance contractors. The report shall also cover consideration of the budgetary impact of implementation of the plan.

SEC. 889. COMPTROLLER GENERAL REVIEW OF USE OF AUTHORITY UNDER THE DEFENSE PRODUCTION ACT OF 1950.

    (a) Thorough Review Required- The Comptroller General of the United States (in this section referred to as the `Comptroller') shall conduct a thorough review of the application of the Defense Production Act of 1950, covering the period beginning on the date of the enactment of the Defense Production Act Reauthorization of 2003 (Public Law 108-195) and ending on the date of the enactment of this Act.

    (b) Considerations- In conducting the review required by this section, the Comptroller shall examine--

      (1) the relevance and utility of the authorities provided under the Defense Production Act of 1950 to meet the security challenges of the 21st Century;

      (2) the manner in which the authorities provided under such Act have been used by the Federal Government--

        (A) to meet security challenges;

        (B) to meet current and future defense requirements;

        (C) to meet current and future energy requirements;

        (D) to meet current and future domestic emergency and disaster response and recovery requirements;

        (E) to reduce the interruption of critical infrastructure operations during a terrorist attack, natural catastrophe, or other similar national emergency; and

        (F) to safeguard critical components of the United States industrial base, including American aerospace and shipbuilding industries;

      (3) the economic impact of foreign offset contracts;

      (4) the relative merit of developing rapid and standardized systems for use of the authorities provided under the Defense Production Act of 1950, by any Federal agency; and

      (5) such other issues as the Comptroller determines relevant.

    (c) Report to Congress- Not later than 150 days after the date of the enactment of this Act, the Comptroller shall submit to the Committees on Armed Services and on Banking, Housing, and Urban Affairs of the Senate and the Committees on Armed Services and on Financial Services of the House of Representatives a report on the review conducted under this section.

    (d) Rules of Construction on Protection of Information- Notwithstanding any other provision of law--

      (1) the provisions of section 705(d) of the Defense Production Act of 1950 (50 U.S.C. App. 2155(d)) shall not apply to information sought or obtained by the Comptroller for purposes of the review required by this section; and

      (2) provisions of law pertaining to the protection of classified information or proprietary information otherwise applicable to information sought or obtained by the Comptroller in carrying out this section shall not be affected by any provision of this section.

SEC. 890. PREVENTION OF EXPORT CONTROL VIOLATIONS.

    (a) Prevention of Export Control Violations- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe regulations requiring any contractor under a contract with the Department of Defense to provide goods or technology that is subject to export controls under the Arms Export Control Act or the Export Administration of 1979 (as continued in effect under the International Emergency Economic Powers Act) to comply with those Acts and applicable regulations with respect to such goods and technology, including the International Traffic in Arms Regulations and the Export Administration Regulations. Regulations prescribed under this subsection shall include a contract clause enforcing such requirement.

    (b) Training on Export Controls- The Secretary of Defense shall ensure that any contractor under a contract with the Department of Defense to provide goods or technology that is subject to export controls under the Arms Export Control Act or the Export Administration of 1979 (as continued in effect under the International Emergency Economic Powers Act) is made aware of any relevant resources made available by the Department of State and the Department of Commerce to assist in compliance with the requirement established by subsection (a) and the need for a corporate compliance plan and periodic internal audits of corporate performance under such plan.

    (c) Report- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report assessing the utility of--

      (1) requiring defense contractors (or subcontractors at any tier) to periodically report on measures taken to ensure compliance with the International Traffic in Arms Regulations and the Export Administration Regulations;

      (2) requiring periodic audits of defense contractors (or subcontractors at any tier) to ensure compliance with all provisions of the International Traffic in Arms Regulations and the Export Administration Regulations;

      (3) requiring defense contractors to maintain a corporate training plan to disseminate information to appropriate contractor personnel regarding the applicability of the Arms Export Control Act and the Export Administration Act of 1979; and

      (4) requiring a designated corporate liaison, available for training provided by the United States Government, whose primary responsibility would be contractor compliance with the Arms Export Control Act and the Export Administration Act of 1979.

    (d) Definitions- In this section:

      (1) EXPORT ADMINISTRATION REGULATIONS- The term `Export Administration Regulations' means those regulations contained in sections 730 through 774 of title 15, Code of Federal Regulations (or successor regulations).

      (2) INTERNATIONAL TRAFFIC IN ARMS REGULATIONS- The term `International Traffic in Arms Regulations' means those regulations contained in sections 120 through 130 of title 22, Code of Federal Regulations (or successor regulations).

SEC. 891. PROCUREMENT GOAL FOR NATIVE HAWAIIAN-SERVING INSTITUTIONS AND ALASKA NATIVE-SERVING INSTITUTIONS.

    Section 2323 of title 10, United States Code, is amended--

      (1) in subsection (a)(1)--

        (A) by striking `and' at the end of subparagraph (C);

        (B) by striking the period at the end of subparagraph (D) and inserting `; and'; and

        (C) by adding at the end the following new subparagraph:

        `(E) Native Hawaiian-serving institutions and Alaska Native-serving institutions (as defined in section 317 of the Higher Education Act of 1965).';

      (2) in subsection (a)(2), by inserting after `Hispanic-serving institutions,' the following: `Native Hawaiian-serving institutions and Alaska Native-serving institutions,';

      (3) in subsection (c)(1), by inserting after `Hispanic-serving institutions,' the following: `Native Hawaiian-serving institutions and Alaska Native-serving institutions,'; and

      (4) in subsection (c)(3), by inserting after `Hispanic-serving institutions,' the following: `to Native Hawaiian-serving institutions and Alaska Native-serving institutions,'.

SEC. 892. COMPETITION FOR PROCUREMENT OF SMALL ARMS SUPPLIED TO IRAQ AND AFGHANISTAN.

    (a) Competition Requirement- For the procurement of pistols and other weapons described in subsection (b), the Secretary of Defense shall ensure, consistent with the provisions of section 2304 of title 10, United States Code, that--

      (1) full and open competition is obtained to the maximum extent practicable;

      (2) no responsible United States manufacturer is excluded from competing for such procurements; and

      (3) products manufactured in the United States are not excluded from the competition.

    (b) Procurements Covered- This section applies to the procurement of the following:

      (1) Pistols and other weapons less than 0.50 caliber for assistance to the Army of Iraq, the Iraqi Police Forces, and other Iraqi security organizations.

      (2) Pistols and other weapons less than 0.50 caliber for assistance to the Army of Afghanistan, the Afghani Police Forces, and other Afghani security organizations.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Department of Defense Management

      Sec. 901. Repeal of limitation on major Department of Defense headquarters activities personnel and related report.

      Sec. 902. Flexibility to adjust the number of deputy chiefs and assistant chiefs.

      Sec. 903. Change in eligibility requirements for appointment to Department of Defense leadership positions.

      Sec. 904. Management of the Department of Defense.

      Sec. 905. Revision in guidance relating to combatant command acquisition authority.

      Sec. 906. Department of Defense Board of Actuaries.

      Sec. 907. Modification of background requirement of individuals appointed as Under Secretary of Defense for Acquisition, Technology, and Logistics.

      Sec. 908. Assistant Secretaries of the military departments for acquisition matters; principal military deputies.

      Sec. 909. Sense of Congress on term of Office of the Director of Operational Test and Evaluation.

Subtitle B--Space Activities

      Sec. 911. Space protection strategy.

      Sec. 912. Biennial report on management of space cadre within the Department of Defense.

      Sec. 913. Additional report on oversight of acquisition for defense space programs.

Subtitle C--Chemical Demilitarization Program

      Sec. 921. Chemical demilitarization citizens advisory commissions.

      Sec. 922. Sense of Congress on completion of destruction of United States chemical weapons stockpile.

      Sec. 923. Repeal of certain qualifications requirement for director of chemical demilitarization management organization.

      Sec. 924. Modification of termination of assistance to State and local governments after completion of the destruction of the United States chemical weapons stockpile.

Subtitle D--Intelligence-Related Matters

      Sec. 931. Technical amendments to title 10, United States Code, arising from enactment of the Intelligence Reform and Terrorism Prevention Act of 2004.

Subtitle E--Roles and Missions Analysis

      Sec. 941. Requirement for quadrennial roles and missions review.

      Sec. 942. Joint Requirements Oversight Council additional duties relating to core mission areas.

      Sec. 943. Requirement for certification of major systems prior to technology development.

      Sec. 944. Presentation of future-years mission budget by core mission area.

Subtitle F--Other Matters

      Sec. 951. Department of Defense consideration of effect of climate change on Department facilities, capabilities, and missions.

      Sec. 952. Interagency policy coordination.

      Sec. 953. Expansion of employment creditable under service agreements under National Security Education Program.

      Sec. 954. Board of Regents for the Uniformed Services University of the Health Sciences.

      Sec. 955. Establishment of Department of Defense School of Nursing.

      Sec. 956. Inclusion of commanders of Western Hemisphere combatant commands in Board of Visitors of Western Hemisphere Institute for Security Cooperation.

      Sec. 957. Comptroller General assessment of reorganization of the Office of the Under Secretary of Defense for Policy.

      Sec. 958. Report on foreign language proficiency.

Subtitle A--Department of Defense Management

SEC. 901. REPEAL OF LIMITATION ON MAJOR DEPARTMENT OF DEFENSE HEADQUARTERS ACTIVITIES PERSONNEL AND RELATED REPORT.

    (a) Repeal of Limitation-

      (1) REPEAL- Section 130a of title 10, United States Code, is repealed.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 3 of such title is amended by striking the item relating to section 130a.

    (b) Report Required- The Secretary of Defense shall include a report with the defense budget materials for each fiscal year that includes the following information:

      (1) The average number of military personnel and civilian employees of the Department of Defense assigned to major Department of Defense headquarters activities for each component of the Department of Defense during the preceding fiscal year.

      (2) The total increase in personnel assigned to major headquarters activities, if any, during the preceding fiscal year--

        (A) attributable to the replacement of contract personnel with military personnel or civilian employees of the Department of Defense, including the number of positions associated with the replacement of contract personnel performing inherently governmental functions; and

        (B) attributable to reasons other than the replacement of contract personnel with military personnel or civilian employees of the Department, such as workload or operational demand increases.

      (3) An estimate of the cost savings, if any, associated with the elimination of contracts for the performance of major headquarters activities.

      (4) The number of military personnel and civilian employees of the Department of Defense assigned to major headquarters activities for each component of the Department of Defense as of October 1 of the preceding fiscal year.

    (c) Definitions- In this section:

      (1) DEFENSE BUDGET MATERIALS- The term `defense budget materials', with respect to a fiscal year, means the materials submitted to Congress by the Secretary of Defense in support of the budget for that fiscal year that is submitted to Congress by the President under section 1105 of title 31, United States Code.

      (2) CONTRACT PERSONNEL- The term `contract personnel' means persons hired under a contract with the Department of Defense for the performance of major Department of Defense headquarters activities.

SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEPUTY CHIEFS AND ASSISTANT CHIEFS.

    (a) Army- Section 3035(b) of title 10, United States Code, is amended to read as follows:

    `(b) The Secretary of the Army shall prescribe the number of Deputy Chiefs of Staff and Assistant Chiefs of Staff, for a total of not more than eight positions.'.

    (b) Navy-

      (1) DEPUTY CHIEFS OF NAVAL OPERATIONS- Section 5036(a) of title 10, United States Code, is amended--

        (A) by striking `There are in the Office of the Chief of Naval Operations not more than five Deputy Chiefs of Naval Operations,' and inserting `There are Deputy Chiefs of Naval Operations in the Office of the Chief of Naval Operations,'; and

        (B) by adding at the end the following: `The Secretary of the Navy shall prescribe the number of Deputy Chiefs of Naval Operations under this section and Assistant Chiefs of Naval Operations under section 5037 of this title, for a total of not more than eight positions.'.

      (2) ASSISTANT CHIEFS OF NAVAL OPERATIONS- Section 5037(a) of such title is amended--

        (A) by striking `There are in the Office of the Chief of Naval Operations not more than three Assistant Chiefs of Naval Operations,' and inserting `There are Assistant Chiefs of Naval Operations in the Office of the Chief of Naval Operations,'; and

        (B) by adding at the end the following: `The Secretary of the Navy shall prescribe the number of Assistant Chiefs of Naval Operations in accordance with section 5036(a) of this title.'.

    (c) Air Force- Section 8035(b) of title 10, United States Code, is amended to read as follows:

    `(b) The Secretary of the Air Force shall prescribe the number of Deputy Chiefs of Staff and Assistant Chiefs of Staff, for a total of not more than eight positions.'.

SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR APPOINTMENT TO DEPARTMENT OF DEFENSE LEADERSHIP POSITIONS.

    (a) Secretary of Defense- Section 113(a) of title 10, United States Code, is amended by striking `10' and inserting `seven'.

    (b) Deputy Secretary of Defense- Section 132(a) of such title is amended by striking `ten' and inserting `seven'.

    (c) Under Secretary of Defense for Policy- Section 134(a) of such title is amended by striking `10' and inserting `seven'.

SEC. 904. MANAGEMENT OF THE DEPARTMENT OF DEFENSE.

    (a) Assignment of Management Duties and Designation of a Chief Management Officer and Deputy Chief Management Officer of the Department of Defense-

      (1) ESTABLISHMENT OF POSITION- Section 132 of title 10, United States Code is amended--

        (A) by redesignating subsection (c) as subsection (d); and

        (B) by inserting after subsection (b) the following new subsection (c):

    `(c) The Deputy Secretary serves as the Chief Management Officer of the Department of Defense. The Deputy Secretary shall be assisted in this capacity by a Deputy Chief Management Officer, who shall be appointed from civilian life by the President, by and with the advice and consent of the Senate.'.

      (2) ASSIGNMENT OF DUTIES-

        (A) The Secretary of Defense shall assign duties and authorities relating to the management of the business operations of the Department of Defense.

        (B) The Secretary shall assign such duties and authorities to the Chief Management Officer as are necessary for that official to effectively and efficiently organize the business operations of the Department of Defense.

        (C) The Secretary shall assign such duties and authorities to the Deputy Chief Management Officer as are necessary for that official to assist the Chief Management Officer to effectively and efficiently organize the business operations of the Department of Defense.

        (D) The Deputy Chief Management Officer shall perform the duties and have the authorities assigned by the Secretary under subparagraph (C) and perform such duties and have such authorities as are delegated by the Chief Management Officer.

      (3) EXECUTIVE SCHEDULE LEVEL III- Section 5314 of title 5, United States Code, is amended by inserting after the item relating to the Under Secretary of Defense for Intelligence the following new item:

      `Deputy Chief Management Officer of the Department of Defense.'.

      (4) PLACEMENT IN OSD- Section 131(b)(2) of title 10, United States Code, is amended--

        (A) by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and

        (B) by inserting after paragraph (2) the following new paragraph (3):

      `(3) The Deputy Chief Management Officer of the Department of Defense.'.

    (b) Assignment of Management Duties and Designation of the Chief Management Officers of the Military Departments-

      (1) The Secretary of a military department shall assign duties and authorities relating to the management of the business operations of such military department.

      (2) The Secretary of a military department, in assigning duties and authorities under paragraph (1) shall designate the Under Secretary of such military department to have the primary management responsibility for business operations, to be known in the performance of such duties as the Chief Management Officer.

      (3) The Secretary shall assign such duties and authorities to the Chief Management Officer as are necessary for that official to effectively and efficiently organize the business operations of the military department concerned.

      (4) The Chief Management Officer of each military department shall promptly provide such information relating to the business operations of such department to the Chief Management Officer and Deputy Chief Management Officer of the Department of Defense as is necessary to assist those officials in the performance of their duties.

    (c) Management of Defense Business Transformation Agency- Section 192(e)(2) of title 10, United States Code, is amended by striking `that the Agency' and all that follows and inserting `that the Director of the Agency shall report directly to the Deputy Chief Management Officer of the Department of Defense.'.

    (d) Strategic Management Plan Required-

      (1) REQUIREMENT- The Secretary of Defense, acting through the Chief Management Officer of the Department of Defense, shall develop a strategic management plan for the Department of Defense.

      (2) MATTERS COVERED- Such plan shall include, at a minimum, detailed descriptions of--

        (A) performance goals and measures for improving and evaluating the overall efficiency and effectiveness of the business operations of the Department of Defense and achieving an integrated management system for business support areas within the Department of Defense;

        (B) key initiatives to be undertaken by the Department of Defense to achieve the performance goals under subparagraph (A), together with related resource needs;

        (C) procedures to monitor the progress of the Department of Defense in meeting performance goals and measures under subparagraph (A);

        (D) procedures to review and approve plans and budgets for changes in business operations, including any proposed changes to policies, procedures, processes, and systems, to ensure the compatibility of such plans and budgets with the strategic management plan of the Department of Defense; and

        (E) procedures to oversee the development of, and review and approve, all budget requests for defense business systems.

      (3) UPDATES- The Secretary of Defense, acting through the Chief Management Officer, shall update the strategic management plan no later than July 1, 2009, and every two years thereafter and provide a copy to the Committees on Armed Services of the Senate and the House of Representatives.

    (e) Report- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall provide to the Committees on Armed Services of the Senate and the House of Representatives a report on the implementation of this section and a copy of the strategic management plan required by subsection (d).

SEC. 905. REVISION IN GUIDANCE RELATING TO COMBATANT COMMAND ACQUISITION AUTHORITY.

    Subparagraph (B) of section 905(b)(1) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2353) is amended by striking `and mutually supportive of'.

SEC. 906. DEPARTMENT OF DEFENSE BOARD OF ACTUARIES.

    (a) Establishment-

      (1) IN GENERAL- Chapter 7 of title 10, United States Code, is amended by inserting after section 182 the following new section:

`Sec. 183. Department of Defense Board of Actuaries

    `(a) In General- There shall be in the Department of Defense a Department of Defense Board of Actuaries (hereinafter in this section referred to as the `Board').

    `(b) Members- (1) The Board shall consist of three members who shall be appointed by the Secretary of Defense from among qualified professional actuaries who are members of the Society of Actuaries.

    `(2) The members of the Board shall serve for a term of 15 years, except that a member of the Board appointed to fill a vacancy occurring before the end of the term for which the member's predecessor was appointed shall only serve until the end of such term. A member may serve after the end of the member's term until the member's successor takes office.

    `(3) A member of the Board may be removed by the Secretary of Defense only for misconduct or failure to perform functions vested in the Board.

    `(4) A member of the Board who is not an employee of the United States is entitled to receive pay at the daily equivalent of the annual rate of basic pay of the highest rate of basic pay then currently being paid under the General Schedule of subchapter III of chapter 53 of title 5 for each day the member is engaged in the performance of the duties of the Board and is entitled to travel expenses, including a per diem allowance, in accordance with section 5703 of that title in connection with such duties.

    `(c) Duties- The Board shall have the following duties:

      `(1) To review valuations of the Department of Defense Military Retirement Fund in accordance with section 1465(c) of this title and submit to the President and Congress, not less often than once every four years, a report on the status of that Fund, including such recommendations for modifications to the funding or amortization of that Fund as the Board considers appropriate and necessary to maintain that Fund on a sound actuarial basis.

      `(2) To review valuations of the Department of Defense Education Benefits Fund in accordance with section 2006(e) of this title and make recommendations to the President and Congress on such modifications to the funding or amortization of that Fund as the Board considers appropriate to maintain that Fund on a sound actuarial basis.

      `(3) To review valuations of such other funds as the Secretary of Defense shall specify for purposes of this section and make recommendations to the President and Congress on such modifications to the funding or amortization of such funds as the Board considers appropriate to maintain such funds on a sound actuarial basis.

    `(d) Records- The Secretary of Defense shall ensure that the Board has access to such records regarding the funds referred to in subsection (c) as the Board shall require to determine the actuarial status of such funds.

    `(e) Reports- (1) The Board shall submit to the Secretary of Defense on an annual basis a report on the actuarial status of each of the following:

      `(A) The Department of Defense Military Retirement Fund.

      `(B) The Department of Defense Education Benefits Fund.

      `(C) Each other fund specified by Secretary under subsection (c)(3).

    `(2) The Board shall also furnish its advice and opinion on matters referred to it by the Secretary.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 182 the following new item:

      `183. Department of Defense Board of Actuaries'.

      (3) INITIAL SERVICE AS BOARD MEMBERS- Each member of the Department of Defense Retirement Board of Actuaries or the Department of Defense Education Benefits Board of Actuaries as of the date of the enactment of this Act shall serve as an initial member of the Department of Defense Board of Actuaries under section 183 of title 10, United States Code (as added by paragraph (1)), from that date until the date otherwise provided for the completion of such individual's term as a member of the Department of Defense Retirement Board of Actuaries or the Department of Defense Education Benefits Board of Actuaries, as the case may be, unless earlier removed by the Secretary of Defense.

    (b) Termination of Existing Boards of Actuaries-

      (1) DEPARTMENT OF DEFENSE RETIREMENT BOARD OF ACTUARIES- (A) Section 1464 of title 10, United States Code, is repealed.

      (B) The table of sections at the beginning of chapter 74 of such title is amended by striking the item relating to section 1464.

      (2) DEPARTMENT OF DEFENSE EDUCATION BENEFITS BOARD OF ACTUARIES- Section 2006 of such title is amended--

        (A) in subsection (c)(1), by striking `subsection (g)' and inserting `subsection (f)';

        (B) by striking subsection (e);

        (C) by redesignating subsections (f), (g), and (h) as subsections (e), (f), and (g), respectively;

        (D) in subsection (e), as redesignated by subparagraph (C), by striking `subsection (g)' in paragraph (5) and inserting `subsection (f)'; and

        (E) in subsection (f), as so redesignated--

          (i) in paragraph (2)(A), by striking `subsection (f)(3)' and inserting `subsection (e)(3)'; and

          (ii) in paragraph (2)(B), by striking `subsection (f)(4)' and inserting `subsection (e)(4)'.

    (c) Conforming Amendments-

      (1) Section 1175(h)(4) of title 10, United States Code, is amended by striking `Retirement' the first place it appears.

      (2) Section 1460(b) of such title is amended by striking `Retirement'.

      (3) Section 1466(c)(3) of such title is amended by striking `Retirement'.

      (4) Section 12521(6) of such title is amended by striking `Department of Defense Education Benefits Board of Actuaries referred to in section 2006(e)(1) of this title' and inserting `Department of Defense Board of Actuaries under section 183 of this title'.

SEC. 907. MODIFICATION OF BACKGROUND REQUIREMENT OF INDIVIDUALS APPOINTED AS UNDER SECRETARY OF DEFENSE FOR ACQUISITION, TECHNOLOGY, AND LOGISTICS.

    Section 133(a) of title 10, United States Code, is amended by striking `in the private sector'.

SEC. 908. ASSISTANT SECRETARIES OF THE MILITARY DEPARTMENTS FOR ACQUISITION MATTERS; PRINCIPAL MILITARY DEPUTIES.

    (a) Department of the Army- Section 3016(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

    `(5)(A) One of the Assistant Secretaries shall be the Assistant Secretary of the Army for Acquisition, Technology, and Logistics. The principal duty of the Assistant Secretary shall be the overall supervision of acquisition, technology, and logistics matters of the Department of the Army.

    `(B) The Assistant Secretary shall have a Principal Military Deputy, who shall be a lieutenant general of the Army on active duty. The Principal Military Deputy shall be appointed from among officers who have significant experience in the areas of acquisition and program management. The position of Principal Military Deputy shall be designated as a critical acquisition position under section 1733 of this title.'.

    (b) Department of the Navy- Section 5016(b) of such title is amended by adding at the end the following new paragraph:

    `(4)(A) One of the Assistant Secretaries shall be the Assistant Secretary of the Navy for Research, Development, and Acquisition. The principal duty of the Assistant Secretary shall be the overall supervision of research, development, and acquisition matters of the Department of the Navy.

    `(B) The Assistant Secretary shall have a Principal Military Deputy, who shall be a vice admiral of the Navy or a lieutenant general of the Marine Corps on active duty. The Principal Military Deputy shall be appointed from among officers who have significant experience in the areas of acquisition and program management. The position of Principal Military Deputy shall be designated as a critical acquisition position under section 1733 of this title.'.

    (c) Department of the Air Force- Section 8016(b) of such title is amended by adding at the end the following new paragraph:

    `(4)(A) One of the Assistant Secretaries shall be the Assistant Secretary of the Air Force for Acquisition. The principal duty of the Assistant Secretary shall be the overall supervision of acquisition matters of the Department of the Air Force.

    `(B) The Assistant Secretary shall have a Principal Military Deputy, who shall be a lieutenant general of the Air Force on active duty. The Principal Military Deputy shall be appointed from among officers who have significant experience in the areas of acquisition and program management. The position of Principal Military Deputy shall be designated as a critical acquisition position under section 1733 of this title.'.

    (d) Duty of Principal Military Deputies To Inform Service Chiefs on Major Defense Acquisition Programs- Each Principal Military Deputy to a service acquisition executive shall be responsible for keeping the Chief of Staff of the Armed Forces concerned informed of the progress of major defense acquisition programs.

SEC. 909. SENSE OF CONGRESS ON TERM OF OFFICE OF THE DIRECTOR OF OPERATIONAL TEST AND EVALUATION.

    It is the sense of Congress that the term of office of the Director of Operational Test and Evaluation of the Department of Defense should be not less than five years.

Subtitle B--Space Activities

SEC. 911. SPACE PROTECTION STRATEGY.

    (a) Sense of Congress- It is the Sense of Congress that the United States should place greater priority on the protection of national security space systems.

    (b) Strategy- The Secretary of Defense, in conjunction with the Director of National Intelligence, shall develop a strategy, to be known as the Space Protection Strategy, for the development and fielding by the United States of the capabilities that are necessary to ensure freedom of action in space for the United States.

    (c) Matters Included- The strategy required by subsection (b) shall include each of the following:

      (1) An identification of the threats to, and the vulnerabilities of, the national security space systems of the United States.

      (2) A description of the capabilities currently contained in the program of record of the Department of Defense and the intelligence community that ensure freedom of action in space.

      (3) For each period covered by the strategy, a description of the capabilities that are needed for the period, including--

        (A) the hardware, software, and other materials or services to be developed or procured;

        (B) the management and organizational changes to be achieved; and

        (C) concepts of operations, tactics, techniques, and procedures to be employed.

      (4) For each period covered by the strategy, an assessment of the gaps and shortfalls between the capabilities that are needed for the period and the capabilities currently contained in the program of record.

      (5) For each period covered by the strategy, a comprehensive plan for investment in capabilities that identifies specific program and technology investments to be made in that period.

      (6) A description of the current processes by which the systems protection requirements of the Department of Defense and the intelligence community are addressed in space acquisition programs and during key milestone decisions, an assessment of the adequacy of those processes, and an identification of the actions of the Department and the intelligence community for addressing any inadequacies in those processes.

      (7) A description of the current processes by which the Department of Defense and the intelligence community program and budget for capabilities (including capabilities that are incorporated into single programs and capabilities that span multiple programs), an assessment of the adequacy of those processes, and an identification of the actions of the Department and the intelligence community for addressing any inadequacies in those processes.

      (8) A description of the organizational and management structure of the Department of Defense and the intelligence community for addressing policy, planning, acquisition, and operations with respect to capabilities, a description of the roles and responsibilities of each organization, and an identification of the actions of the Department and the intelligence community for addressing any inadequacies in that structure.

    (d) Periods Covered- The strategy required by subsection (b) shall cover the following periods:

      (1) Fiscal years 2008 through 2013.

      (2) Fiscal years 2014 through 2019.

      (3) Fiscal years 2020 through 2025.

    (e) Definitions- In this section--

      (1) the term `capabilities' means space, airborne, and ground systems and capabilities for space situational awareness and for space systems protection; and

      (2) the term `intelligence community' has the meaning given such term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).

    (f) Report; Biennial Update-

      (1) REPORT- Not later than six months after the date of the enactment of this Act, the Secretary of Defense, in conjunction with the Director of National Intelligence, shall submit to Congress a report on the strategy required by subsection (b), including each of the matters required by subsection (c).

      (2) BIENNIAL UPDATE- Not later than March 15 of each even-numbered year after 2008, the Secretary of Defense, in conjunction with the Director of National Intelligence, shall submit to Congress an update to the report required by paragraph (1).

      (3) CLASSIFICATION- The report required by paragraph (1), and each update required by paragraph (2), shall be in unclassified form, but may include a classified annex.

    (g) Conforming Repeal- Section 911 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3405; 10 U.S.C. 2271 note) is repealed.

SEC. 912. BIENNIAL REPORT ON MANAGEMENT OF SPACE CADRE WITHIN THE DEPARTMENT OF DEFENSE.

    (a) In General- Chapter 23 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 490. Space cadre management: biennial report

    `(a) Requirement- The Secretary of Defense and each Secretary of a military department shall develop metrics and use these metrics to identify, track, and manage space cadre personnel within the Department of Defense to ensure the Department has sufficient numbers of personnel with the expertise, training, and experience to meet current and future national security space needs.

    `(b) Biennial Report Required-

      `(1) IN GENERAL- Not later than 180 days after the date of the enactment of this section, and every even-numbered year thereafter, the Secretary of Defense shall submit to the congressional defense committees a report on the management of the space cadre.

      `(2) MATTERS INCLUDED- The report required by paragraph (1) shall include--

        `(A) the number of active duty, reserve duty, and government civilian space-coded billets that--

          `(i) are authorized or permitted to be maintained for each military department and defense agency;

          `(ii) are needed or required for each military department and defense agency for the year in which the submission of the report is required; and

          `(iii) are needed or required for each military department and defense agency for each of the five years following the date of the submission of the report;

        `(B) the actual number of active duty, reserve duty, and government civilian personnel that are coded or classified as space cadre personnel within the Department of Defense, including the military departments and defense agencies;

        `(C) the number of personnel recruited or hired as accessions to serve in billets coded or classified as space cadre personnel for each military department and defense agency;

        `(D) the number of personnel serving in billets coded or classified as space cadre personnel that discontinued serving each military department and defense agency during the preceding calendar year;

        `(E) for each of the reporting requirements in subparagraphs (A) through (D), further classification of the number of personnel by--

          `(i) space operators, acquisition personnel, engineers, scientists, program managers, and other space-related areas identified by the Department;

          `(ii) expertise or technical specialization area--

            `(I) such as communications, missile warning, spacelift, and any other space-related specialties identified by the Department or classifications used by the Department; and

            `(II) consistent with section 1721 of this title for acquisition personnel;

          `(iii) rank for active duty and reserve duty personnel and grade for government civilian personnel;

          `(iv) qualification, expertise, or proficiency level consistent with service and agency-defined qualification, expertise, or proficiency levels; and

          `(v) any other such space-related classification categories used by the Department or military departments; and

        `(F) any other metrics identified by the Department to improve the identification, tracking, training, and management of space cadre personnel.

      `(3) ASSESSMENTS- The report required by paragraph (1) shall also include the Secretary's assessment of the state of the Department's space cadre, the Secretary's assessment of the space cadres of the military departments, and a description of efforts to ensure the Department has a space cadre sufficient to meet current and future national security space needs.'.

    (b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `490. Space cadre management: biennial report.'.

SEC. 913. ADDITIONAL REPORT ON OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE PROGRAMS.

    Section 911(b)(1) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2621) is amended by inserting `, and March 15, 2008,' after `March 15, 2003,'.

Subtitle C--Chemical Demilitarization Program

SEC. 921. CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMISSIONS.

    (a) Functions- Section 172 of the National Defense Authorization Act for Fiscal Year 1993 (50 U.S.C. 1521 note) is amended--

      (1) in each of subsections (b) and (f), by striking `Assistant Secretary of the Army (Research, Development and Acquisition)' and inserting `Assistant Secretary of the Army (Acquisition, Logistics, and Technology)'; and

      (2) in subsection (g), by striking `Assistant Secretary of the Army (Research, Development, and Acquisition)' and inserting `Assistant Secretary of the Army (Acquisition, Logistics, and Technology)'.

    (b) Termination- Such section is further amended in subsection (h) by striking `after the stockpile located in that commission's State has been destroyed' and inserting `after the closure activities required pursuant to regulations promulgated by the Administrator of the Environmental Protection Agency pursuant to the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) have been completed for the chemical agent destruction facility in the commission's State, or upon the request of the Governor of the commission's State, whichever occurs first'.

SEC. 922. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED STATES CHEMICAL WEAPONS STOCKPILE.

    (a) Findings- Congress makes the following findings:

      (1) The Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction, done at Paris on January 13, 1993 (commonly referred to as the `Chemical Weapons Convention'), requires that destruction of the entire United States chemical weapons stockpile be completed by not later than April 29, 2007.

      (2) In 2006, under the terms of the Chemical Weapons Convention, the United States requested and received a one-time, 5-year extension of its chemical weapons destruction deadline to April 29, 2012.

      (3) On April 10, 2006, the Secretary of Defense notified Congress that the United States would not meet even the extended deadline under the Chemical Weapons Convention for destruction of the United States chemical weapons stockpile, but would `continue working diligently to minimize the time to complete destruction without sacrificing safety and security' and would also `continue requesting resources needed to complete destruction as close to April 2012 as practicable'.

      (4) The United States chemical demilitarization program has met its one percent, 20 percent, and extended 45 percent destruction deadlines under the Chemical Weapons Convention.

      (5) Destroying the remaining stockpile of United States chemical weapons is imperative for public safety and homeland security, and doing so by April 2012, in accordance with the current destruction deadline provided under the Chemical Weapons Convention, is required by United States law.

      (6) The elimination of chemical weapons anywhere they exist in the world, and the prevention of their proliferation, is of utmost importance to the national security of the United States.

      (7) Section 921(b)(3) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2359) contained a sense of Congress urging the Secretary of Defense to ensure the elimination of the United States chemical weapons stockpile in the shortest time possible, consistent with the requirement to protect public health, safety, and the environment.

      (8) Section 921(b)(4) of that Act contained a sense of Congress urging the Secretary of Defense to propose a credible treatment and disposal process with the support of affected communities. In this regard, any such process should provide for sufficient communication and consultation between representatives of the Department of Defense and representatives of affected States and communities.

    (b) Sense of Congress- It is the sense of Congress that--

      (1) the United States is, and must remain, committed to making every effort to safely dispose of its entire chemical weapons stockpile by April 2012, the current destruction deadline provided under the Chemical Weapons Convention, or as soon thereafter as possible, and must carry out all of its other obligations under the Convention; and

      (2) the Secretary of Defense should make every effort to plan for, and to request in the annual budget of the President submitted to Congress adequate funding to complete, the elimination of the United States chemical weapons stockpile in accordance with United States obligations under the Chemical Weapons Convention and in a manner that will protect public health, safety, and the environment, as required by law.

    (c) Reports Required-

      (1) IN GENERAL- Not later than March 15, 2008, and every 180 days thereafter until the year in which the United States completes the destruction of its entire stockpile of chemical weapons under the terms of the Chemical Weapons Convention, the Secretary of Defense shall submit to the members and committees of Congress referred to in paragraph (3) a report on the implementation by the United States of its chemical weapons destruction obligations under the Chemical Weapons Convention.

      (2) ELEMENTS- Each report under paragraph (1) shall include the following:

        (A) The anticipated schedule at the time of such report for the completion of destruction of chemical agents, munitions, and materiel at each chemical weapons demilitarization facility in the United States.

        (B) A description of the options and alternatives for accelerating the completion of chemical weapons destruction at each such facility, particularly in time to meet the destruction deadline of April 29, 2012, currently provided by the Chemical Weapons Convention, and by December 31, 2017.

        (C) A description of the funding required to achieve each of the options for destruction described under subparagraph (B), and a detailed life-cycle cost estimate for each of the affected facilities included in each such funding profile.

        (D) A description of all actions being taken by the United States to accelerate the destruction of its entire stockpile of chemical weapons, agents, and materiel in order to meet the current destruction deadline under the Chemical Weapons Convention of April 29, 2012, or as soon thereafter as possible.

      (3) MEMBERS AND COMMITTEES OF CONGRESS- The members and committees of Congress referred to in this paragraph are--

        (A) the majority leader of the Senate, the minority leader of the Senate, and the Committees on Armed Services and Appropriations of the Senate; and

        (B) the Speaker of the House of Representatives, the majority leader of the House of Representatives, the minority leader of the House of Representatives, and the Committees on Armed Services and Appropriations of the House of Representatives.

SEC. 923. REPEAL OF CERTAIN QUALIFICATIONS REQUIREMENT FOR DIRECTOR OF CHEMICAL DEMILITARIZATION MANAGEMENT ORGANIZATION.

    Section 1412(e)(3) of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521(e)(3)) is amended--

      (1) in subparagraph (A), by adding `and' at the end;

      (2) by striking subparagraph (B); and

      (3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 924. MODIFICATION OF TERMINATION OF ASSISTANCE TO STATE AND LOCAL GOVERNMENTS AFTER COMPLETION OF THE DESTRUCTION OF THE UNITED STATES CHEMICAL WEAPONS STOCKPILE.

    Subparagraph (B) of section 1412(c)(5) of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521(c)(5)) is amended to read as follows:

    `(B) Assistance may be provided under this paragraph for capabilities to respond to emergencies involving an installation or facility as described in subparagraph (A) until the earlier of the following:

      `(i) The date of the completion of all grants and cooperative agreements with respect to the installation or facility for purposes of this paragraph between the Federal Emergency Management Agency and the State and local governments concerned.

      `(ii) The date that is 180 days after the date of the completion of the destruction of lethal chemical agents and munitions at the installation or facility.'.

Subtitle D--Intelligence-Related Matters

SEC. 931. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES CODE, ARISING FROM ENACTMENT OF THE INTELLIGENCE REFORM AND TERRORISM PREVENTION ACT OF 2004.

    (a) References to Head of Intelligence Community- Title 10, United States Code, is amended by striking `Director of Central Intelligence' each place it appears in the following provisions and inserting `Director of National Intelligence':

      (1) Section 192(c)(2).

      (2) Section 193(d)(2).

      (3) Section 193(e).

      (4) Section 201(a).

      (5) Section 201(c)(1).

      (6) Section 425(a).

      (7) Section 426(a)(3).

      (8) Section 426(b)(2).

      (9) Section 441(c).

      (10) Section 441(d).

      (11) Section 443(d).

      (12) Section 2273(b)(1).

      (13) Section 2723(a).

    (b) References to Head of Central Intelligence Agency- Such title is further amended by striking `Director of Central Intelligence' each place it appears in the following provisions and inserting `Director of the Central Intelligence Agency':

      (1) Section 431(b)(1).

      (2) Section 444.

      (3) Section 1089(g).

    (c) Other Amendments-

      (1) SUBSECTION HEADINGS-

        (A) SECTION 441(c)- The heading of subsection (c) of section 441 of such title is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

        (B) SECTION 443(d)- The heading of subsection (d) of section 443 of such title is amended by striking `Director of Central Intelligence' and inserting `Director of National Intelligence'.

      (2) SECTION 201- Section 201 of such title is further amended--

        (A) in subsection (b)(1), to read as follows:

      `(1) In the event of a vacancy in a position referred to in paragraph (2), before appointing an individual to fill the vacancy or recommending to the President an individual to be nominated to fill the vacancy, the Secretary of Defense shall obtain the concurrence of the Director of National Intelligence as provided in section 106(b) of the National Security Act of 1947 (50 U.S.C. 403-6(b)).'; and

        (B) in subsection (c)(1), by striking `National Foreign Intelligence Program' and inserting `National Intelligence Program'.

Subtitle E--Roles and Missions Analysis

SEC. 941. REQUIREMENT FOR QUADRENNIAL ROLES AND MISSIONS REVIEW.

    (a) Requirement for Review-

      (1) IN GENERAL- Chapter 2 of title 10, United States Code, is amended by inserting after section 118a the following new section:

`Sec. 118b. Quadrennial roles and missions review

    `(a) Review Required- The Secretary of Defense shall every four years conduct a comprehensive assessment (to be known as the `quadrennial roles and missions review') of the roles and missions of the armed forces and the core competencies and capabilities of the Department of Defense to perform and support such roles and missions.

    `(b) Independent Military Assessment of Roles and Missions- (1) In each year in which the Secretary of Defense is required to conduct a comprehensive assessment pursuant to subsection (a), the Chairman of the Joint Chiefs of Staff shall prepare and submit to the Secretary the Chairman's assessment of the roles and missions of the armed forces and the assignment of functions to the armed forces, together with any recommendations for changes in assignment that the Chairman considers necessary to achieve maximum efficiency and effectiveness of the armed forces.

    `(2) The Chairman's assessment shall be conducted so as to--

      `(A) organize the significant missions of the armed forces into core mission areas that cover broad areas of military activity;

      `(B) ensure that core mission areas are defined and functions are assigned so as to avoid unnecessary duplication of effort among the armed forces; and

      `(C) provide the Chairman's recommendations with regard to issues to be addressed by the Secretary of Defense under subsection (c).

    `(c) Identification of Core Mission Areas and Core Competencies and Capabilities- Upon receipt of the Chairman's assessment, and after giving appropriate consideration to the Chairman's recommendations, the Secretary of Defense shall identify--

      `(1) the core mission areas of the armed forces;

      `(2) the core competencies and capabilities that are associated with the performance or support of a core mission area identified pursuant to paragraph (1);

      `(3) the elements of the Department of Defense (including any other office, agency, activity, or command described in section 111(b) of this title) that are responsible for providing the core competencies and capabilities required to effectively perform the core missions identified pursuant to paragraph (1);

      `(4) any gaps in the ability of the elements (or other office, agency activity, or command) of the Department of Defense to provide core competencies and capabilities required to effectively perform the core missions identified pursuant to paragraph (1);

      `(5) any unnecessary duplication of core competencies and capabilities between defense components; and

      `(6) a plan for addressing any gaps or unnecessary duplication identified pursuant to paragraph (4) or paragraph (5).

    `(d) Report- The Secretary shall submit a report on the quadrennial roles and missions review to the Committees on Armed Services of the Senate and the House of Representatives. The report shall be submitted in the year following the year in which the review is conducted, but not later than the date on which the President submits the budget for the next fiscal year to Congress under section 1105(a) of title 31.'.

    (b) Repeal of Superseded Provision- Section 118(e) of title 10, United States Code, is amended--

      (1) by striking paragraph (2); and

      (2) by redesignating paragraph (3) as paragraph (2).

    (c) Timing of Quadrennial Roles and Missions Review-

      (1) FIRST REVIEW- The first quadrennial roles and missions review under section 118b of title 10, United States Code, as added by subsection (a), shall be conducted during 2008.

      (2) SUBSEQUENT REVIEWS- Subsequent reviews shall be conducted every four years, beginning in 2011.

SEC. 942. JOINT REQUIREMENTS OVERSIGHT COUNCIL ADDITIONAL DUTIES RELATING TO CORE MISSION AREAS.

    (a) Revisions in Mission- Subsection (b) of section 181 of title 10, United States Code, is amended to read as follows:

    `(b) Mission- In addition to other matters assigned to it by the President or Secretary of Defense, the Joint Requirements Oversight Council shall--

      `(1) assist the Chairman of the Joint Chiefs of Staff--

        `(A) in identifying, assessing, and approving joint military requirements (including existing systems and equipment) to meet the national military strategy; and

        `(B) in identifying the core mission area associated with each such requirement;

      `(2) assist the Chairman in establishing and assigning priority levels for joint military requirements;

      `(3) assist the Chairman in reviewing the estimated level of resources required in the fulfillment of each joint military requirement and in ensuring that such resource level is consistent with the level of priority assigned to such requirement; and

      `(4) assist acquisition officials in identifying alternatives to any acquisition program that meet joint military requirements for the purposes of section 2366a(a)(4), section 2366b(b), and section 2433(e)(2) of this title.'.

    (b) Advisors- Section 181 of such title is amended--

      (1) by redesignating subsection (d) as subsection (f); and

      (2) by inserting after subsection (c) the following new subsection (d):

    `(d) Advisors- The Under Secretary of Defense for Acquisition, Technology, and Logistics, the Under Secretary of Defense (Comptroller), and the Director of the Office of Program Analysis and Evaluation shall serve as advisors to the Council on matters within their authority and expertise.'.

    (c) Organization- Section 181 of such title is further amended by inserting after subsection (d) (as inserted by subsection (b)) the following new subsection (e):

    `(e) Organization- The Joint Requirements Oversight Council shall conduct periodic reviews of joint military requirements within a core mission area of the Department of Defense. In any such review of a core mission area, the officer or official assigned to lead the review shall have a deputy from a different military department.'.

    (d) Definitions- Section 181 of such title is further amended by adding at the end the following new subsection:

    `(g) Definitions- In this section:

      `(1) The term `joint military requirement' means a capability necessary to fulfill a gap in a core mission area of the Department of Defense.

      `(2) The term `core mission area' means a core mission area of the Department of Defense identified under the most recent quadrennial roles and missions review pursuant to section 118b of this title.'.

    (e) Consultation- Section 2433(e)(2) of such title is amended by inserting `, after consultation with the Joint Requirements Oversight Council regarding program requirements,' after `Secretary of Defense' in the matter preceding subparagraph (A).

    (f) Deadlines- Effective June 1, 2009, all joint military requirements documents of the Joint Requirements Oversight Council produced to carry out its mission under section 181(b)(1) of title 10, United States Code, shall reference the core mission areas organized and defined under section 118b of such title. Not later than October 1, 2009, all such documents produced before June 1, 2009, shall reference such structure.

SEC. 943. REQUIREMENT FOR CERTIFICATION OF MAJOR SYSTEMS PRIOR TO TECHNOLOGY DEVELOPMENT.

    (a) Requirement for Certification-

      (1) IN GENERAL- Chapter 139 of title 10, United States Code, is amended by inserting after section 2366a the following new section:

`Sec. 2366b. Major defense acquisition programs: certification required before Milestone A or Key Decision Point A approval

    `(a) Certification- A major defense acquisition program may not receive Milestone A approval, or Key Decision Point A approval in the case of a space program, until the Milestone Decision Authority certifies, after consultation with the Joint Requirements Oversight Council on matters related to program requirements and military needs--

      `(1) that the system fulfills an approved initial capabilities document;

      `(2) that the system is being executed by an entity with a relevant core competency as identified by the Secretary of Defense under section 118b of this title;

      `(3) if the system duplicates a capability already provided by an existing system, the duplication provided by such system is necessary and appropriate; and

      `(4) that a cost estimate for the system has been submitted and that the level of resources required to develop and procure the system is consistent with the priority level assigned by the Joint Requirements Oversight Council.

    `(b) Notification- With respect to a major system certified by the Milestone Decision Authority under subsection (a), if the projected cost of the system, at any time prior to Milestone B approval, exceeds the cost estimate for the system submitted at the time of the certification by at least 25 percent, the program manager for the system concerned shall notify the Milestone Decision Authority. The Milestone Decision Authority, in consultation with the Joint Requirements Oversight Council on matters related to program requirements and military needs, shall determine whether the level of resources required to develop and procure the system remains consistent with the priority level assigned by the Joint Requirements Oversight Council. The Milestone Decision Authority may withdraw the certification concerned or rescind Milestone A approval (or Key Decision Point A approval in the case of a space program) if the Milestone Decision Authority determines that such action is in the interest of national defense.

    ` (c)Definitions- In this section:

      `(1) The term `major system' has the meaning provided in section 2302(5) of this title.

      `(2) The term `initial capabilities document' means any capabilities requirement document approved by the Joint Requirements Oversight Council that establishes the need for a materiel approach to resolve a capability gap.

      `(3) The term `technology development program' means a coordinated effort to assess technologies and refine user performance parameters to fulfill a capability gap identified in an initial capabilities document.

      `(4) The term `entity' means an entity listed in section 125a(a) of this title.

      `(5) The term `Milestone B approval' has the meaning provided that term in section 2366(e)(7) of this title.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `2366b. Major defense acquisition programs: certification required before Milestone A or Key Decision Point A approval.'.

    (b) Review of Department of Defense Acquisition Directives- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall review Department of Defense Directive 5000.1 and associated guidance, and the manner in which such directive and guidance have been implemented, and take appropriate steps to ensure that the Department does not commence a technology development program for a major weapon system without Milestone A approval (or Key Decision Point A approval in the case of a space program).

    (c) Effective Date- Section 2366b of title 10, United States Code, as added by subsection (a), shall apply to major systems on and after March 1, 2008.

SEC. 944. PRESENTATION OF FUTURE-YEARS MISSION BUDGET BY CORE MISSION AREA.

    (a) Time of Submission of Future-Years Mission Budget- The second sentence of section 222(a) of title 10, United States Code, is amended to read as follows: `That budget shall be submitted for any fiscal year with the future-years defense program submitted under section 221 of this title.'.

    (b) Organization of Future-Years Mission Budget- The second sentence of section 222(b) of such title is amended by striking `on the basis' and all that follows through the end of the sentence and inserting the following: `on the basis of both major force programs and the core mission areas identified under the most recent quadrennial roles and missions review pursuant to section 118b of this title.'.

    (c) Effective Date- The amendments made by this section shall apply with respect to the future-years mission budget for fiscal year 2010 and each fiscal year thereafter.

Subtitle F--Other Matters

SEC. 951. DEPARTMENT OF DEFENSE CONSIDERATION OF EFFECT OF CLIMATE CHANGE ON DEPARTMENT FACILITIES, CAPABILITIES, AND MISSIONS.

    (a) Consideration of Climate Change Effect- Section 118 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(g) Consideration of Effect of Climate Change on Department Facilities, Capabilities, and Missions- (1) The first national security strategy and national defense strategy prepared after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008 shall include guidance for military planners--

      `(A) to assess the risks of projected climate change to current and future missions of the armed forces;

      `(B) to update defense plans based on these assessments, including working with allies and partners to incorporate climate mitigation strategies, capacity building, and relevant research and development; and

      `(C) to develop the capabilities needed to reduce future impacts.

    `(2) The first quadrennial defense review prepared after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2008 shall also examine the capabilities of the armed forces to respond to the consequences of climate change, in particular, preparedness for natural disasters from extreme weather events and other missions the armed forces may be asked to support inside the United States and overseas.

    `(3) For planning purposes to comply with the requirements of this subsection, the Secretary of Defense shall use--

      `(A) the mid-range projections of the fourth assessment report of the Intergovernmental Panel on Climate Change;

      `(B) subsequent mid-range consensus climate projections if more recent information is available when the next national security strategy, national defense strategy, or quadrennial defense review, as the case may be, is conducted; and

      `(C) findings of appropriate and available estimations or studies of the anticipated strategic, social, political, and economic effects of global climate change and the implications of such effects on the national security of the United States.

    `(4) In this subsection, the term `national security strategy' means the annual national security strategy report of the President under section 108 of the National Security Act of 1947 (50 U.S.C. 404a).'.

    (b) Implementation- The Secretary of Defense shall ensure that subsection (g) of section 118 of title 10, United States Code, as added by subsection (a), is implemented in a manner that does not have a negative impact on the national security of the United States.

SEC. 952. INTERAGENCY POLICY COORDINATION.

    (a) Plan Required- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall develop and submit to Congress a plan to improve and reform the Department of Defense's participation in and contribution to the interagency coordination process on national security issues.

    (b) Elements- The elements of the plan shall include the following:

      (1) Assigning either the Under Secretary of Defense for Policy or another official to be the lead policy official for improving and reforming the interagency coordination process on national security issues for the Department of Defense, with an explanation of any decision to name an official other than the Under Secretary and the relative advantages and disadvantages of such decision.

      (2) Giving the official assigned under paragraph (1) the following responsibilities:

        (A) To be the lead person at the Department of Defense for the development of policy affecting the national security interagency process.

        (B) To serve, or designate a person to serve, as the representative of the Department of Defense in Federal Government forums established to address interagency policy, planning, or reforms.

        (C) To advocate, on behalf of the Secretary, for greater interagency coordination and contributions in the execution of the National Security Strategy and particularly specific operational objectives undertaken pursuant to that strategy.

        (D) To make recommendations to the Secretary of Defense on changes to existing Department of Defense regulations or laws to improve the interagency process.

        (E) To serve as the coordinator for all planning and training assistance that is--

          (i) designed to improve the interagency process or the capabilities of other agencies to work with the Department of Defense; and

          (ii) provided by the Department of Defense at the request of other agencies.

        (F) To serve as the lead official in Department of Defense for the development of deployable joint interagency task forces.

    (c) Factors To Be Considered- In drafting the plan, the Secretary of Defense shall also consider the following factors:

      (1) How the official assigned under subsection (b)(1) shall provide input to the Secretary of Defense on an ongoing basis on how to incorporate the need to coordinate with other agencies into the establishment and reform of combatant commands.

      (2) How such official shall develop and make recommendations to the Secretary of Defense on a regular or an ongoing basis on changes to military and civilian personnel to improve interagency coordination.

      (3) How such official shall work with the combatant command that has the mission for joint warfighting experimentation and other interested agencies to develop exercises to test and validate interagency planning and capabilities.

      (4) How such official shall lead, coordinate, or participate in after-action reviews of operations, tests, and exercises to capture lessons learned regarding the functioning of the interagency process and how those lessons learned will be disseminated.

      (5) The role of such official in ensuring that future defense planning guidance takes into account the capabilities and needs of other agencies.

    (d) Recommendation on Changes in Law- The Secretary of Defense may submit with the plan or with any future budget submissions recommendations for any changes to law that are required to enhance the ability of the official assigned under subsection (b)(1) in the Department of Defense to coordinate defense interagency efforts or to improve the ability of the Department of Defense to work with other agencies.

    (e) Annual Report- If an official is named by the Secretary of Defense under subsection (b)(1), the official shall annually submit to Congress a report, beginning in the fiscal year following the naming of the official, on those actions taken by the Department of Defense to enhance national security interagency coordination, the views of the Department of Defense on efforts and challenges in improving the ability of agencies to work together, and suggestions on changes needed to laws or regulations that would enhance the coordination of efforts of agencies.

    (f) Definition- In this section, the term `interagency coordination', within the context of Department of Defense involvement, means the coordination that occurs between elements of the Department of Defense and engaged Federal Government agencies for the purpose of achieving an objective.

    (g) Construction- Nothing in this provision shall be construed as preventing the Secretary of Defense from naming an official with the responsibilities listed in subsection (b) before the submission of the report required under this section.

SEC. 953. EXPANSION OF EMPLOYMENT CREDITABLE UNDER SERVICE AGREEMENTS UNDER NATIONAL SECURITY EDUCATION PROGRAM.

    Paragraph (2) of subsection (b) of section 802 of the David L. Boren National Security Education Act of 1991 (50 U.S.C. 1902), as most recently amended by section 945 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2367), is amended--

      (1) in subparagraph (A)--

        (A) in clause (i) by striking `or' at the end; and

        (B) by adding at the end the following:

          `(iii) for not less than one academic year in a position in the field of education in a discipline related to the study supported by the program if the recipient demonstrates to the Secretary of Defense that no position is available in the departments, agencies, and offices covered by clauses (i) and (ii); or'; and

      (2) in subparagraph (B)--

        (A) in clause (i) by striking `or' at the end;

        (B) in clause (ii) by striking `and' at the end and inserting `or'; and

        (C) by adding at the end the following:

          `(iii) for not less than one academic year in a position in the field of education in a discipline related to the study supported by the program if the recipient demonstrates to the Secretary of Defense that no position is available in the departments, agencies, and offices covered by clauses (i) and (ii); and'.

SEC. 954. BOARD OF REGENTS FOR THE UNIFORMED SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    (a) Reorganization and Amendment of Board of Regents Provisions-

      (1) IN GENERAL- Chapter 104 of title 10, United States Code, is amended by inserting after section 2113 the following new section:

`Sec. 2113a. Board of Regents

    `(a) In General- To assist the Secretary of Defense in an advisory capacity, there is a Board of Regents of the University.

    `(b) Membership- The Board shall consist of--

      `(1) nine persons outstanding in the fields of health and health education who shall be appointed from civilian life by the Secretary of Defense;

      `(2) the Secretary of Defense, or his designee, who shall be an ex officio member;

      `(3) the surgeons general of the uniformed services, who shall be ex officio members; and

      `(4) the President of the University, who shall be a nonvoting ex officio member.

    `(c) Term of Office- The term of office of each member of the Board (other than ex officio members) shall be six years except that--

      `(1) any member appointed to fill a vacancy occurring before the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term; and

      `(2) any member whose term of office has expired shall continue to serve until his successor is appointed.

    `(d) Chairman- One of the members of the Board (other than an ex officio member) shall be designated by the Secretary as Chairman. He shall be the presiding officer of the Board.

    `(e) Compensation- Members of the Board (other than ex officio members) while attending conferences or meetings or while otherwise performing their duties as members shall be entitled to receive compensation at a rate to be fixed by the Secretary and shall also be entitled to receive an allowance for necessary travel expenses while so serving away from their place of residence.

    `(f) Meetings- The Board shall meet at least once a quarter.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `2113a. Board of Regents.'.

      (3) CONFORMING AMENDMENTS-

        (A) Section 2113 of title 10, United States Code, is amended--

          (i) in subsection (a), by striking `To assist' and all that follows through the end of paragraph (4);

          (ii) by striking subsections (b), (c), and (e);

          (iii) by redesignating subsections (d), (f), (g), (h), (i), and (j) as subsections (b), (c), (d), (e), (f), and (g), respectively; and

          (iv) in subsection (b), as so redesignated, by striking `who shall also serve as a nonvoting ex officio member of the Board'.

        (B) Section 2114(h) of such title is amended by striking `2113(h)' and inserting `2113(e)'.

    (b) Statutory Redesignation of Dean as President-

      (1) Subsection 2113 of such title is further amended by striking `Dean' each place it appears in subsections (b) and (c)(1), as redesignated by subsection (a)(3), and inserting `President'.

      (2) Section 2114(e) of such title is amended by striking `Dean' each place it appears in paragraphs (3) and (5).

SEC. 955. ESTABLISHMENT OF DEPARTMENT OF DEFENSE SCHOOL OF NURSING.

    (a) Establishment Plan Required- Not later than February 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a plan to establish a School of Nursing within the Uniformed Services University of the Health Sciences. The Secretary shall develop the plan in consultation with the Board of Regents of the Uniformed Services University of the Health Sciences and submit the plan to the Board of Regents for review and to solicit the Board's recommendations.

    (b) Programs of Instruction- In consultation with the Secretaries of the military departments, the Secretary of Defense shall include in the plan required by subsection (a) programs of instruction for the School of Nursing that would lead to the award of a bachelor of science in nursing and such other baccalaureate or graduate degrees in nursing as the Secretary considers appropriate. The plan shall also address the enrollment as students of enlisted members and officers of the Armed Forces and civilians for the purpose of commissioning them as military nursing officers upon graduation. The graduates of such a program of instruction shall be fully eligible to meet credentialing and licensing requirements of the military departments and at least one State in their program of study.

    (c) Consideration of Certain Programs- In developing the plan under subsection (a), the Secretary shall consider the inclusion of the following types of programs:

      (1) A program to enroll students who already possess an associate degree in nursing so that they can earn a bachelor of science in nursing.

      (2) A program to enroll students who already possess other associate degrees so that they can earn a bachelor of science in nursing.

      (3) A program to enroll students who already possess an associate degree in nursing so that they can earn a master of science in nursing.

      (4) A program to enroll students who already possess a bachelor of science in nursing so that they can earn a master of science in nursing.

    (d) Other Considerations- The plan required by subsection (a) shall also include the following:

      (1) The results of a study of the nursing shortage in the Department of Defense and the reasons for such shortages.

      (2) Details of the curriculum and degree requirements for each category of students at the School of Nursing, if established.

      (3) An analysis of the contributions to overall medical readiness that will be made by the School of Nursing.

      (4) Proposals for the development of the School of Nursing to be phased in over a period of time.

      (5) Faculty requirements based on degree requirements and numbers of projected students, to include the source and number of faculty required.

      (6) Projected number of graduates per year for each of the first 15 years of operation.

      (7) Predicted accession sources, military career paths, and service commitments and retention rates of School of Nursing graduates, to include the retention of enlisted personnel accessed into the school.

      (8) Administrative and instructional facilities required, and the likely initial and final location of clinical training institutions.

      (9) Plan for accreditation by a nationally recognized nursing school accrediting body.

      (10) Projected faculty, administration, instruction, and facilities costs for the School of Nursing beginning in fiscal year 2009 and continuing through fiscal year 2024, including the cost analysis of developing the School of Nursing and the cost of additional administrative support for the Uniformed Services University of the Health Sciences on account of the establishment of the school.

    (e) Effect on Current Programs- Notwithstanding the development of the plan under subsection (a), the Secretary shall ensure that graduate degree programs in nursing, including advanced practice nursing, continue.

    (f) Effect on Other Recruitment Efforts- Nothing in this section shall be construed as limiting or terminating any current or future program related to the recruitment, accession, training, or retention of military nurses.

    (g) Establishment Authority-

      (1) ESTABLISHMENT- Chapter 104 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2117. School of Nursing

    `(a) Establishment Authorized- The Secretary of Defense may establish a School of Nursing within the University. The School of Nursing may include a program that awards a bachelor of science in nursing.

    `(b) Phased Development- The School of Nursing may be developed in phases as determined appropriate by the Secretary.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `2117. School of Nursing.'.

SEC. 956. INCLUSION OF COMMANDERS OF WESTERN HEMISPHERE COMBATANT COMMANDS IN BOARD OF VISITORS OF WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    Subparagraph (F) of section 2166(e)(1) of title 10, United States Code, is amended to read as follows:

      `(F) The commanders of the combatant commands having geographic responsibility for the Western Hemisphere, or the designees of those officers.'.

SEC. 957. COMPTROLLER GENERAL ASSESSMENT OF REORGANIZATION OF THE OFFICE OF THE UNDER SECRETARY OF DEFENSE FOR POLICY.

    (a) Assessment Required- Not later than June 1, 2008, the Comptroller General of the United States shall submit to the congressional defense committees a report containing an assessment of the most recent reorganization of the office of the Under Secretary of Defense for Policy, including an assessment with respect to the matters set forth in subsection (b).

    (b) Matters To Be Assessed- The matters to be included in the assessment required by subsection (a) are as follows:

      (1) The manner in which the reorganization of the office furthers, or will further, its stated purposes in the short-term and long-term, including the manner in which the reorganization enhances, or will enhance, the ability of the Department of Defense--

        (A) to address current security priorities, including on-going military operations in Iraq, Afghanistan, and elsewhere;

        (B) to manage geopolitical defense relationships; and

        (C) to anticipate future strategic shifts in those relationships.

      (2) The manner in which and the extent to which the reorganization adheres to generally accepted principles of effective organization, such as establishing clear goals, identifying clear lines of authority and accountability, and developing an effective human capital strategy.

      (3) The extent to which the Department has developed detailed implementation plans for the reorganization, and the current status of the implementation of all aspects of the reorganization.

      (4) The extent to which the Department has worked to mitigate congressional concerns and address other challenges that have arisen since the reorganization was announced.

      (5) The manner in which the Department plans to evaluate progress in achieving the stated goals of the reorganization and what measurements, if any, the Department has established to assess the results of the reorganization.

      (6) The impact of the large increase in responsibilities for the Assistant Secretary of Defense for Special Operations and Low Intensity Conflict and Interdependent Capabilities under the reorganization on the ability of the Assistant Secretary to carry out the principal duties of the Assistant Secretary under law.

      (7) The possible decrease in attention given to special operations issues resulting from the increase in responsibilities for the Assistant Secretary of Defense for Special Operations and Low Intensity Conflict and Interdependent Capabilities, including responsibility under the reorganization for each of the following:

        (A) Strategic capabilities.

        (B) Forces transformation.

        (C) Major budget programs.

      (8) The possible diffusion of attention from counternarcotics, counterproliferation, and global threat issues resulting from the merging of those responsibilities under a single Deputy Assistant Secretary of Defense for Counternarcotics, Counterproliferation, and Global Threats.

      (9) The impact of the reorganization on counternarcotics program execution.

      (10) The unique placement under the reorganization of both functional and regional issue responsibilities under the Assistant Secretary of Defense for Homeland Defense and Americas' Security Affairs.

      (11) The differentiation between the responsibilities of the Deputy Assistant Secretary of Defense for Partnership Strategy and the Deputy Assistant Secretary of Defense for Coalition Affairs and the relationship between such officials.

SEC. 958. REPORT ON FOREIGN LANGUAGE PROFICIENCY.

    (a) In General- Not later than 240 days after the date of the enactment of this Act, and annually thereafter until the date referred to in subsection (d), the Secretary of Defense, in conjunction with the Secretary of each military department, shall submit to the congressional defense committees a report on the foreign language proficiency of the personnel of the Department of Defense.

    (b) Contents- Each report submitted under subsection (a) shall include--

      (1) the number of positions, identified by each foreign language and dialect, for each military department and Defense Agency concerned that--

        (A) require proficiency in that foreign language or dialect for the year in which the submission of the report is required;

        (B) are anticipated to require proficiency in that foreign language or dialect for each of the five years following the date of the submission of the report; and

        (C) are authorized in the future-years defense plan to be maintained for proficiency in a foreign language or dialect;

      (2) the number of personnel for each military department and Defense Agency, identified by each foreign language and dialect, that are serving in a position that requires proficiency in the foreign language or dialect--

        (A) to perform the primary duty of the position; and

        (B) that meet the required level of proficiency of the Interagency Language Roundtable;

      (3) the number of personnel for each military department and Defense Agency, identified by each foreign language and dialect, that are recruited or hired as accessions to serve in a position that requires proficiency in the foreign language or dialect;

      (4) the number of personnel for each military department and Defense Agency, identified by each foreign language and dialect, that served in a position that requires proficiency in the foreign language or dialect and discontinued service during the preceding calendar year;

      (5) the number of positions that require proficiency in a foreign language or dialect that are fulfilled by contractors;

      (6) the percentage of work requiring linguistic skills that is fulfilled by personnel of the intelligence community (as defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4))); and

      (7) an assessment of the foreign language capacity and capabilities of each military department and Defense Agency and of the Department of Defense as a whole.

    (c) Non-Military Personnel- Except as provided in paragraphs (6) and (7) of subsection (b), a report submitted under subsection (a) shall cover only members of the Armed Forces on active duty and reserve duty assigned to the military departments concerned or to the Department of Defense.

    (d) Termination of Requirement- The duty to submit a report under subsection (a) shall terminate on December 31, 2013.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

      Sec. 1001. General transfer authority.

      Sec. 1002. United States contribution to NATO common-funded budgets in fiscal year 2008.

      Sec. 1003. Authorization of additional emergency supplemental appropriations for fiscal year 2007.

      Sec. 1004. Modification of fiscal year 2007 general transfer authority.

      Sec. 1005. Financial management transformation initiative for the Defense Agencies.

      Sec. 1006. Repeal of requirement for two-year budget cycle for the Department of Defense.

Subtitle B--Policy Relating to Vessels and Shipyards

      Sec. 1011. Limitation on leasing of vessels.

      Sec. 1012. Policy relating to major combatant vessels of the strike forces of the United States Navy.

Subtitle C--Counter-Drug Activities

      Sec. 1021. Extension of authority for joint task forces to provide support to law enforcement agencies conducting counter-terrorism activities.

      Sec. 1022. Expansion of authority to provide additional support for counter-drug activities in certain foreign countries.

      Sec. 1023. Report on counternarcotics assistance for the Government of Haiti.

Subtitle D--Miscellaneous Authorities and Limitations

      Sec. 1031. Provision of Air Force support and services to foreign military and state aircraft.

      Sec. 1032. Department of Defense participation in Strategic Airlift Capability Partnership.

      Sec. 1033. Improved authority to provide rewards for assistance in combating terrorism.

      Sec. 1034. Support for non-Federal development and testing of material for chemical agent defense.

      Sec. 1035. Prohibition on sale of F-14 fighter aircraft and related parts.

Subtitle E--Reports

      Sec. 1041. Extension and modification of report relating to hardened and deeply buried targets.

      Sec. 1042. Report on joint modeling and simulation activities.

      Sec. 1043. Renewal of submittal of plans for prompt global strike capability.

      Sec. 1044. Report on workforce required to support the nuclear missions of the Navy and the Department of Energy.

      Sec. 1045. Comptroller General report on Defense Finance and Accounting Service response to Butterbaugh v. Department of Justice.

      Sec. 1046. Study on size and mix of airlift force.

      Sec. 1047. Report on feasibility of establishing a domestic military aviation national training center.

      Sec. 1048. Limited field user evaluations for combat helmet pad suspension systems.

      Sec. 1049. Study on national security interagency system.

      Sec. 1050. Report on solid rocket motor industrial base.

      Sec. 1051. Reports on establishment of a memorial for members of the Armed Forces who died in the air crash in Bakers Creek, Australia, and establishment of other memorials in Arlington National Cemetery.

Subtitle F--Other Matters

      Sec. 1061. Reimbursement for National Guard support provided to Federal agencies.

      Sec. 1062. Congressional Commission on the Strategic Posture of the United States.

      Sec. 1063. Technical and clerical amendments.

      Sec. 1064. Repeal of certification requirement.

      Sec. 1065. Maintenance of capability for space-based nuclear detection.

      Sec. 1066. Sense of Congress regarding detainees at Naval Station, Guantanamo Bay, Cuba.

      Sec. 1067. A report on transferring individuals detained at Naval Station, Guantanamo Bay, Cuba.

      Sec. 1068. Repeal of provisions in section 1076 of Public Law 109-364 relating to use of Armed Forces in major public emergencies.

      Sec. 1069. Standards required for entry to military installations in United States.

      Sec. 1070. Revised nuclear posture review.

      Sec. 1071. Termination of Commission on the Implementation of the New Strategic Posture of the United States.

      Sec. 1072. Security clearances; limitations.

      Sec. 1073. Improvements in the process for the issuance of security clearances.

      Sec. 1074. Protection of certain individuals.

      Sec. 1075. Modification of authorities on Commission to Assess the Threat to the United States from Electromagnetic Pulse Attack.

      Sec. 1076. Sense of Congress on Small Business Innovation Research Program.

      Sec. 1077. Revision of proficiency flying definition.

      Sec. 1078. Qualifications for public aircraft status of aircraft under contract with the Armed Forces.

      Sec. 1079. Communications with the Committees on Armed Services of the Senate and the House of Representatives.

      Sec. 1080. Retention of reimbursement for provision of reciprocal fire protection services.

      Sec. 1081. Pilot program on commercial fee-for-service air refueling support for the Air Force.

      Sec. 1082. Advisory panel on Department of Defense capabilities for support of civil authorities after certain incidents.

      Sec. 1083. Terrorism exception to immunity.

Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations-

      (1) AUTHORITY- Upon determination 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 for fiscal year 2008 between any such authorizations for that fiscal year (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) LIMITATION- Except as provided in paragraph (3), the total amount of authorizations that the Secretary may transfer under the authority of this section may not exceed $5,000,000,000.

      (3) EXCEPTION FOR TRANSFERS BETWEEN MILITARY PERSONNEL AUTHORIZATIONS- A transfer of funds between military personnel authorizations under title IV shall not be counted toward the dollar limitation in paragraph (2).

    (b) Limitations- The authority provided by this section to transfer authorizations--

      (1) may only be used to provide authority for items that have a higher priority than the items from which authority is transferred; and

      (2) may not be used to provide authority for an item that has been denied authorization by Congress.

    (c) Effect on Authorization Amounts- A transfer made from one account to another under the authority of this section shall be deemed to increase the amount authorized for the account to which the amount is transferred by an amount equal to the amount transferred.

    (d) Notice to Congress- The Secretary shall promptly notify Congress of each transfer made under subsection (a).

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN FISCAL YEAR 2008.

    (a) Fiscal Year 2008 Limitation- The total amount contributed by the Secretary of Defense in fiscal year 2008 for the common-funded budgets of NATO may be any amount up to, but not in excess of, the amount specified in subsection (b) (rather than the maximum amount that would otherwise be applicable to those contributions under the fiscal year 1998 baseline limitation).

    (b) Total Amount- The amount of the limitation applicable under subsection (a) is the sum of the following:

      (1) The amounts of unexpended balances, as of the end of fiscal year 2007, of funds appropriated for fiscal years before fiscal year 2008 for payments for those budgets.

      (2) The amount specified in subsection (c)(1).

      (3) The amount specified in subsection (c)(2).

      (4) The total amount of the contributions authorized to be made under section 2501.

    (c) Authorized Amounts- Amounts authorized to be appropriated by titles II and III of this Act are available for contributions for the common-funded budgets of NATO as follows:

      (1) Of the amount provided in section 201(1), $1,031,000 for the Civil Budget.

      (2) Of the amount provided in section 301(1), $362,159,000 for the Military Budget.

    (d) Definitions- For purposes of this section:

      (1) COMMON-FUNDED BUDGETS OF NATO- The term `common-funded budgets of NATO' means the Military Budget, the Security Investment Program, and the Civil Budget of the North Atlantic Treaty Organization (and any successor or additional account or program of NATO).

      (2) FISCAL YEAR 1998 BASELINE LIMITATION- The term `fiscal year 1998 baseline limitation' means the maximum annual amount of Department of Defense contributions for common-funded budgets of NATO that is set forth as the annual limitation in section 3(2)(C)(ii) of the resolution of the Senate giving the advice and consent of the Senate to the ratification of the Protocols to the North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, and the Czech Republic (as defined in section 4(7) of that resolution), approved by the Senate on April 30, 1998.

SEC. 1003. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2007.

    Amounts authorized to be appropriated to the Department of Defense for fiscal year 2007 in the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) are hereby adjusted, with respect to any such authorized amount, by the amount by which appropriations pursuant to such authorization are increased by a supplemental appropriation or by a transfer of funds, or decreased by a rescission, or any thereof, pursuant to the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (Public Law 110-28).

SEC. 1004. MODIFICATION OF FISCAL YEAR 2007 GENERAL TRANSFER AUTHORITY.

    Section 1001(a) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2371) is amended by adding at the end the following new paragraph:

      `(3) EXCEPTION FOR CERTAIN TRANSFERS- The following transfers of funds shall be not be counted toward the limitation in paragraph (2) on the amount that may be transferred under this section:

        `(A) The transfer of funds to the Iraq Security Forces Fund under reprogramming FY07-07-R PA.

        `(B) The transfer of funds to the Joint Improvised Explosive Device Defeat Fund under reprogramming FY07-11 PA.

        `(C) The transfer of funds back from the accounts referred to in subparagraphs (A) and (B) to restore the sources used in the reprogrammings referred to in such subparagraphs.'.

SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE FOR THE DEFENSE AGENCIES.

    (a) Financial Management Transformation Initiative-

      (1) IN GENERAL- The Director of the Business Transformation Agency of the Department of Defense shall carry out an initiative for financial management transformation in the Defense Agencies. The initiative shall be known as the `Defense Agencies Initiative' (in this section referred to as the `Initiative').

      (2) SCOPE OF AUTHORITY- In carrying out the Initiative, the Director of the Business Transformation Agency may require the heads of the Defense Agencies to carry out actions that are within the purpose and scope of the Initiative.

    (b) Purposes- The purposes of Initiative shall be as follows:

      (1) To eliminate or replace financial management systems of the Defense Agencies that are duplicative, redundant, or fail to comply with the standards set forth in subsection (d).

      (2) To transform the budget, finance, and accounting operations of the Defense Agencies to enable the Defense Agencies to achieve accurate and reliable financial information needed to support financial accountability and effective and efficient management decisions.

    (c) Required Elements- The Initiative shall include, to the maximum extent practicable--

      (1) the utilization of commercial, off-the-shelf technologies and web-based solutions;

      (2) a standardized technical environment and an open and accessible architecture; and

      (3) the implementation of common business processes, shared services, and common data structures.

    (d) Standards- In carrying out the Initiative, the Director of the Business Transformation Agency shall ensure that the Initiative is consistent with--

      (1) the requirements of the Business Enterprise Architecture and Transition Plan developed pursuant to section 2222 of title 10, United States Code;

      (2) the Standard Financial Information Structure of the Department of Defense;

      (3) the Federal Financial Management Improvement Act of 1996 (and the amendments made by that Act); and

      (4) other applicable requirements of law and regulation.

    (e) Scope- The Initiative shall be designed to provide, at a minimum, capabilities in the major process areas for both general fund and working capital fund operations of the Defense Agencies as follows:

      (1) Budget formulation.

      (2) Budget to report, including general ledger and trial balance.

      (3) Procure to pay, including commitments, obligations, and accounts payable.

      (4) Order to fulfill, including billing and accounts receivable.

      (5) Cost accounting.

      (6) Acquire to retire (account management).

      (7) Time and attendance and employee entitlement.

      (8) Grants financial management.

    (f) Consultation- In carrying out subsections (d) and (e), the Director of the Business Transformation Agency shall consult with the Comptroller of the Department of Defense to ensure that any financial management systems developed for the Defense Agencies, and any changes to the budget, finance, and accounting operations of the Defense Agencies, are consistent with the financial standards and requirements of the Department of Defense.

    (g) Program Control- In carrying out the Initiative, the Director of the Business Transformation Agency shall establish--

      (1) a board (to be known as the `Configuration Control Board') to manage scope and cost changes to the Initiative; and

      (2) a program management office (to be known as the `Program Management Office') to control and enforce assumptions made in the acquisition plan, the cost estimate, and the system integration contract for the Initiative, as directed by the Configuration Control Board.

    (h) Plan on Development and Implementation of Initiative- Not later than six months after the date of the enactment of this Act, the Director of the Business Transformation Agency shall submit to the congressional defense committees a plan for the development and implementation of the Initiative. The plan shall provide for the implementation of an initial capability under the Initiative as follows:

      (1) In at least one Defense Agency by not later than eight months after the date of the enactment of this Act.

      (2) In not less than five Defense Agencies by not later than 18 months after the date of the enactment of this Act.

SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE FOR THE DEPARTMENT OF DEFENSE.

    Section 1405 of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 99 Stat. 744; 31 U.S.C. 1105 note) is repealed.

Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. LIMITATION ON LEASING OF VESSELS.

    Section 2401 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(h) The Secretary of a military department may make a contract for the lease of a vessel or for the provision of a service through use by a contractor of a vessel, the term of which is for a period of greater than two years, but less than five years, only if--

      `(1) the Secretary has notified the Committee on Armed Services and the Committee on Appropriations of the Senate and the Committee on Armed Services and the Committee on Appropriations of the House of Representatives of the proposed contract and included in such notification--

        `(A) a detailed description of the terms of the proposed contract and a justification for entering into the proposed contract rather than obtaining the capability provided for by the lease, charter, or services involved through purchase of the vessel;

        `(B) a determination that entering into the proposed contract as a means of obtaining the vessel is the most cost-effective means of obtaining such vessel; and

        `(C) a plan for meeting the requirement provided by the proposed contract upon completion of the term of the lease contract; and

      `(2) a period of 30 days of continuous session of Congress has expired following the date on which notice was received by such committees.'.

SEC. 1012. POLICY RELATING TO MAJOR COMBATANT VESSELS OF THE STRIKE FORCES OF THE UNITED STATES NAVY.

    (a) Integrated Nuclear Power Systems- It is the policy of the United States to construct the major combatant vessels of the strike forces of the United States Navy, including all new classes of such vessels, with integrated nuclear power systems.

    (b) Requirement To Request Nuclear Vessels- If a request is submitted to Congress in the budget for a fiscal year for construction of a new class of major combatant vessel for the strike forces of the United States, the request shall be for such a vessel with an integrated nuclear power system, unless the Secretary of Defense submits with the request a notification to Congress that the inclusion of an integrated nuclear power system in such vessel is not in the national interest.

    (c) Definitions- In this section:

      (1) MAJOR COMBATANT VESSELS OF THE STRIKE FORCES OF THE UNITED STATES NAVY- The term `major combatant vessels of the strike forces of the United States Navy' means the following:

        (A) Submarines.

        (B) Aircraft carriers.

        (C) Cruisers, battleships, or other large surface combatants whose primary mission includes protection of carrier strike groups, expeditionary strike groups, and vessels comprising a sea base.

      (2) INTEGRATED NUCLEAR POWER SYSTEM- The term `integrated nuclear power system' means a ship engineering system that uses a naval nuclear reactor as its energy source and generates sufficient electric energy to provide power to the ship's electrical loads, including its combat systems and propulsion motors.

      (3) BUDGET- The term `budget' means the budget that is submitted to Congress by the President under section 1105(a) of title 31, United States Code.

Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING COUNTER-TERRORISM ACTIVITIES.

    Section 1022(b) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 371 note) is amended by striking `and 2007' and inserting `through 2008'.

SEC. 1022. EXPANSION OF AUTHORITY TO PROVIDE ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES IN CERTAIN FOREIGN COUNTRIES.

    Subsection (b) of section 1033 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881), as amended by section 1021(b) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136, 117 Stat. 1593) and section 1022(b) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2382), is further amended by adding at the end the following new paragraphs:

      `(17) The Government of Mexico.

      `(18) The Government of the Dominican Republic.'.

SEC. 1023. REPORT ON COUNTERNARCOTICS ASSISTANCE FOR THE GOVERNMENT OF HAITI.

    (a) Report Required- Not later than 120 days after the date of the enactment of this Act, the President shall submit to Congress a report on counternarcotics assistance for the Government of Haiti.

    (b) Matters to Be Included- The report required by subsection (a) shall include the following:

      (1) A description and assessment of the counternarcotics assistance provided to the Government of Haiti by the Department of Defense, the Department of State, the Department of Homeland Security, and the Department of Justice.

      (2) A description and assessment of any impediments to increasing counternarcotics assistance to the Government of Haiti.

      (3) An assessment of the potential for the provision of counternarcotics assistance for the Government of Haiti through the United Nations Stabilization Mission in Haiti.

    (c) Form- The report required by subsection (a) shall be submitted in unclassified form, but may include a classified annex.

Subtitle D--Miscellaneous Authorities and Limitations

SEC. 1031. PROVISION OF AIR FORCE SUPPORT AND SERVICES TO FOREIGN MILITARY AND STATE AIRCRAFT.

    (a) Provision of Support and Services-

      (1) IN GENERAL- Section 9626 of title 10, United States Code, is amended to read as follows:

`Sec. 9626. Aircraft supplies and services: foreign military or other state aircraft

    `(a) Provision of Supplies and Services on Reimbursable Basis- (1) The Secretary of the Air Force may, under such regulations as the Secretary may prescribe and when in the best interests of the United States, provide any of the supplies or services described in paragraph (2) to military and other state aircraft of a foreign country, on a reimbursable basis without an advance of funds, if similar supplies and services are furnished on a like basis to military aircraft and other state aircraft of the United States by the foreign country concerned.

    `(2) The supplies and services described in this paragraph are supplies and services as follows:

      `(A) Routine airport services, including landing and takeoff assistance, servicing aircraft with fuel, use of runways, parking and servicing, and loading and unloading of baggage and cargo.

      `(B) Miscellaneous supplies, including Air Force-owned fuel, provisions, spare parts, and general stores, but not including ammunition.

    `(b) Provision of Routine Airport Services on Non-Reimbursable Basis- (1) Routine airport services may be provided under this section at no cost to a foreign country--

      `(A) if such services are provided by Air Force personnel and equipment without direct cost to the Air Force; or

      `(B) if such services are provided under an agreement with the foreign country that provides for the reciprocal furnishing by the foreign country of routine airport services, as defined in that agreement, to military and other state aircraft of the United States without reimbursement.

    `(2) If routine airport services are provided under this section by a working-capital fund activity of the Air Force under section 2208 of this title and such activity is not reimbursed directly for the costs incurred by the activity in providing such services by reason of paragraph (1)(B), the working-capital fund activity shall be reimbursed for such costs out of funds currently available to the Air Force for operation and maintenance.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 939 of such title is amended by striking the item relating to section 9626 and inserting the following new item:

      `9626. Aircraft supplies and services: foreign military or other state aircraft.'.

    (b) Conforming Amendment- Section 9629(3) of such title is amended by striking `for aircraft of a foreign military or air attache'.

SEC. 1032. DEPARTMENT OF DEFENSE PARTICIPATION IN STRATEGIC AIRLIFT CAPABILITY PARTNERSHIP.

    (a) Authority To Participate in Partnership-

      (1) MEMORANDUM OF UNDERSTANDING- The Secretary of Defense may enter into a multilateral memorandum of understanding authorizing the Strategic Airlift Capability Partnership to conduct activities necessary to accomplish its purpose, including--

        (A) the acquisition, equipping, ownership, and operation of strategic airlift aircraft; and

        (B) the acquisition or transfer of airlift and airlift-related services and supplies among members of the Strategic Airlift Capability Partnership, or between the Partnership and non-member countries or international organizations, on a reimbursable basis or by replacement-in-kind or exchange of airlift or airlift-related services of an equal value.

      (2) PAYMENTS- From funds available to the Department of Defense for such purpose, the Secretary of Defense may pay the United States equitable share of the recurring and non-recurring costs of the activities and operations of the Strategic Airlift Capability Partnership, including costs associated with procurement of aircraft components and spare parts, maintenance, facilities, and training, and the costs of claims.

    (b) Authorities Under Partnership- In carrying out the memorandum of understanding entered into under subsection (a), the Secretary of Defense may do the following:

      (1) Waive reimbursement of the United States for the cost of the following functions performed by Department of Defense personnel with respect to the Strategic Airlift Capability Partnership:

        (A) Auditing.

        (B) Quality assurance.

        (C) Inspection.

        (D) Contract administration.

        (E) Acceptance testing.

        (F) Certification services.

        (G) Planning, programming, and management services.

      (2) Waive the imposition of any surcharge for administrative services provided by the United States that would otherwise be chargeable against the Strategic Airlift Capability Partnership.

      (3) Pay the salaries, travel, lodging, and subsistence expenses of Department of Defense personnel assigned for duty to the Strategic Airlift Capability Partnership without seeking reimbursement or cost-sharing for such expenses.

    (c) Crediting of Receipts- Any amount received by the United States in carrying out the memorandum of understanding entered into under subsection (a) shall be credited, as elected by the Secretary of Defense, to the following:

      (1) The appropriation, fund, or account used in incurring the obligation for which such amount is received.

      (2) An appropriation, fund, or account currently providing funds for the purposes for which such obligation was made.

    (d) Authority To Transfer Aircraft-

      (1) TRANSFER AUTHORITY- The Secretary of Defense may transfer one strategic airlift aircraft to the Strategic Airlift Capability Partnership in accordance with the terms and conditions of the memorandum of understanding entered into under subsection (a).

      (2) REPORT- Not later than 30 days before the date on which the Secretary transfers a strategic airlift aircraft under paragraph (1), the Secretary shall submit to the congressional defense committees a report on the strategic airlift aircraft to be transferred, including the type of strategic airlift aircraft to be transferred and the tail registration or serial number of such aircraft.

    (e) Strategic Airlift Capability Partnership Defined- In this section the term `Strategic Airlift Capability Partnership' means the strategic airlift capability consortium established by the United States and other participating countries.

SEC. 1033. IMPROVED AUTHORITY TO PROVIDE REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

    (a) Increased Amounts- Section 127b of title 10, United States Code, is amended--

      (1) in subsection (b), by striking `$200,000' and inserting `$5,000,000';

      (2) in subsection (c)(1)(B), by striking `$50,000' and inserting `$1,000,000'; and

      (3) in subsection (d)(2), by striking `$100,000' and inserting `$2,000,000'.

    (b) Involvement of Allied Forces- Such section is further amended--

      (1) in subsection (a)--

        (A) in the matter preceding paragraph (1), by inserting after `United States Government personnel' the following: `, or government personnel of allied forces participating in a combined operation with the armed forces,';

        (B) in paragraph (1), by inserting after `armed forces' the following: `, or of allied forces participating in a combined operation with the armed forces,'; and

        (C) in paragraph (2), by inserting after `armed forces' the following: `, or of allied forces participating in a combined operation with the armed forces'; and

      (2) in subsection (c), by adding at the end the following:

    `(3)(A) Subject to subparagraphs (B) and (C), an official who has authority delegated under paragraph (1) or (2) may use that authority, acting through government personnel of allied forces, to offer and make rewards.

    `(B) The Secretary of Defense shall prescribe policies and procedures for making rewards in the manner described in subparagraph (A), which shall include guidance for the accountability of funds used for making rewards in that manner. The policies and procedures shall not take effect until 30 days after the date on which the Secretary submits the policies and procedures to the congressional defense committees. Rewards may not be made in the manner described in subparagraph (A) except under policies and procedures that have taken effect.

    `(C) Rewards may not be made in the manner described in subparagraph (A) after September 30, 2009.

    `(D) Not later than April 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a report on the implementation of this paragraph. The report shall identify each reward made in the manner described in subparagraph (A) and, for each such reward--

      `(i) identify the type, amount, and recipient of the reward;

      `(ii) explain the reason for making the reward; and

      `(iii) assess the success of the reward in advancing the effort to combat terrorism.'.

    (c) Annual Report to Include Specific Information on Additional Authority- Section 127b of title 10, United States Code, is further amended in subsection (f)(2) by adding at the end the following new subparagraph:

      `(D) Information on the implementation of paragraph (3) of subsection (c).'.

SEC. 1034. SUPPORT FOR NON-FEDERAL DEVELOPMENT AND TESTING OF MATERIAL FOR CHEMICAL AGENT DEFENSE.

    (a) Authority to Provide Toxic Chemicals or Precursors-

      (1) IN GENERAL- The Secretary of Defense, in coordination with the heads of other elements of the Federal Government, may make available, to a State, a unit of local government, or a private entity incorporated in the United States, small quantities of a toxic chemical or precursor for the development or testing, in the United States, of material that is designed to be used for protective purposes.

      (2) TERMS AND CONDITIONS- Any use of the authority under paragraph (1) shall be subject to such terms and conditions as the Secretary considers appropriate.

    (b) Payment of Costs and Disposition of Funds-

      (1) IN GENERAL- The Secretary shall ensure, through the advance payment required by paragraph (2) and through any other payments that may be required, that a recipient of toxic chemicals or precursors under subsection (a) pays for all actual costs, including direct and indirect costs, associated with providing the toxic chemicals or precursors.

      (2) ADVANCE PAYMENT- In carrying out paragraph (1), the Secretary shall require each recipient to make an advance payment in an amount that the Secretary determines will equal all such actual costs.

      (3) CREDITS- A payment received under this subsection shall be credited to the account that was used to cover the costs for which the payment was provided. Amounts so credited shall be merged with amounts in that account, and shall be available for the same purposes, and subject to the same conditions and limitations, as other amounts in that account.

    (c) Chemical Weapons Convention- The Secretary shall ensure that toxic chemicals and precursors are made available under this section for uses and in quantities that comply with the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction, signed at Paris on January 13, 1993, and entered into force with respect to the United States on April 29, 1997.

    (d) Report-

      (1) Not later than March 15, 2008, and each year thereafter, the Secretary shall submit to Congress a report on the use of the authority under subsection (a) during the previous calendar year. The report shall include a description of each use of the authority and specify what material was made available and to whom it was made available.

      (2) Each report under paragraph (1) shall be submitted in unclassified form, but may include a classified annex.

    (e) Definitions- In this section, the terms `precursor', `protective purposes', and `toxic chemical' have the meanings given those terms in the convention referred to in subsection (c), in paragraph 2, paragraph 9(b), and paragraph 1, respectively, of article II of that convention.

SEC. 1035. PROHIBITION ON SALE OF F-14 FIGHTER AIRCRAFT AND RELATED PARTS.

    (a) Prohibition on Sale by Department of Defense-

      (1) IN GENERAL- Except as provided in paragraph (2), the Department of Defense may not sell (whether directly or indirectly) any F-14 fighter aircraft, any parts unique to the F-14 fighter aircraft, or any tooling or dies used in the manufacture of such aircraft or parts, whether such sales occur through the Defense Reutilization and Marketing Service or through another agency or element of the Department.

      (2) EXCEPTION- Paragraph (1) shall not apply with respect to the sale of F-14 fighter aircraft or parts for F-14 fighter aircraft to a museum or similar organization located in the United States that is involved in the preservation of F-14 fighter aircraft for historical purposes.

    (b) Prohibition on Export License- No license for the export of any F-14 fighter aircraft, any parts unique to the F-14 fighter aircraft, or any tooling or dies used in the manufacture of such aircraft or parts may be issued by the United States Government to a non-United States person or entity.

Subtitle E--Reports

SEC. 1041. EXTENSION AND MODIFICATION OF REPORT RELATING TO HARDENED AND DEEPLY BURIED TARGETS.

    Section 1032 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2643; 10 U.S.C. 2358 note) is amended--

      (1) in the heading, by striking `annual report on weapons' and inserting `report on weapons and capabilities';

      (2) in subsection (a)--

        (A) in the heading, by striking `Annual';

        (B) by striking `April 1 of each year' and inserting `March 1, 2009, and every two years thereafter,';

        (C) by striking `Director of Central Intelligence' and inserting `Director of National Intelligence';

        (D) by striking `the preceding fiscal year' and inserting `the preceding two fiscal years and planned for the current fiscal year and the next fiscal year'; and

        (E) by striking `to develop weapons' and inserting `to develop weapons and capabilities';

      (3) in subsection (b)--

        (A) in the matter preceding paragraph (1), by striking `The report for a fiscal year' and inserting `A report submitted';

        (B) in paragraph (1), by striking `were undertaken during that fiscal year' and inserting `were or will be undertaken during the four-fiscal-year period covered by the report'; and

        (C) in paragraph (2) in the matter preceding subparagraph (A), by striking `were undertaken during such fiscal year' and inserting `were or will be undertaken during the four-fiscal-year period covered by the report'; and

      (4) in subsection (d), by striking `April 1, 2007' and inserting `March 1, 2013'.

SEC. 1042. REPORT ON JOINT MODELING AND SIMULATION ACTIVITIES.

    (a) Report Required- Not later than December 31, 2008, the Secretary of Defense shall submit to the congressional defense committees a report that describes current and planned joint modeling and simulation activities within the Department of Defense.

    (b) Matters to Be Included- The report under subsection (a) shall include the following:

      (1) An identification and description of how joint modeling and simulation activities support the development of capabilities to meet joint and service-unique military requirements and needs, in areas including but not limited to joint training, experimentation, systems acquisition, test and evaluation, assessment, and planning.

      (2) A description of how joint modeling and simulation activities are supportive of Department-level strategies and goals.

      (3) For each appropriate element of the Department of Defense and each appropriate combatant command--

        (A) An identification of modeling and simulation capabilities; and

        (B) A description of plans and programs to continuously introduce new modeling and simulation technologies so as to enhance defense capabilities.

      (4) A description of incentives and plans to reduce or divest duplicative or outdated capabilities as necessary.

      (5) Plans or activities to allow non-defense users to access defense joint modeling and simulation activities, as appropriate.

      (6) Budget and resource estimates, including government and contractor personnel requirements, for planned joint modeling and simulation activities.

      (7) A description of the relationship and coordination between and among joint modeling and simulation activities and the modeling and simulation activities of elements of the Department of Defense, Federal agencies, State and local governments, academia, private industry, United States and international standards organizations, and international partners.

      (8) Any other matters the Secretary considers appropriate.

    (c) Consultation- The report under (a) shall be developed in consultation with appropriate military departments, Defense Agencies, combatant commands, and other defense activities.

SEC. 1043. RENEWAL OF SUBMITTAL OF PLANS FOR PROMPT GLOBAL STRIKE CAPABILITY.

    Section 1032(b)(1) of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1605; 10 U.S.C. 113 note) is amended by inserting `and each of 2007, 2008, and 2009,' after `2004, 2005, and 2006,'.

SEC. 1044. REPORT ON WORKFORCE REQUIRED TO SUPPORT THE NUCLEAR MISSIONS OF THE NAVY AND THE DEPARTMENT OF ENERGY.

    (a) In General- Not later than one year after the date of the enactment of this Act, the Secretary of Defense and the Secretary of Energy shall each submit to Congress a report on the requirements for a workforce to support the nuclear missions of the Navy and the Department of Energy during the 10-year period beginning on the date of the report.

    (b) Elements- Each report shall include--

      (1) a description of the projected nuclear missions of the Navy and the Department of Energy during the 10-year period beginning on the date of the report;

      (2) an assessment of existing knowledge retention programs within the Department of Defense, the Department of Energy, the national laboratories, and federally funded research facilities that support the nuclear missions of the Navy and the Department of Energy, and any planned changes in those programs; and

      (3) a plan to address anticipated workforce attrition, retirement, and recruiting trends during that period and ensure an adequate workforce in support of the nuclear missions of the Navy and the Department of Energy.

SEC. 1045. COMPTROLLER GENERAL REPORT ON DEFENSE FINANCE AND ACCOUNTING SERVICE RESPONSE TO BUTTERBAUGH V. DEPARTMENT OF JUSTICE.

    (a) In General- Not later than 180 days after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional defense committees a report setting forth an assessment by the Comptroller General of the response of the Defense Finance and Accounting Service to the decision in Butterbaugh v. Department of Justice (336 F.3d 1332 (2003)).

    (b) Elements- The report required by subsection (a) shall include the following:

      (1) An estimate of the number of members of the reserve components of the Armed Forces, both past and present, who are entitled to compensation under the decision in Butterbaugh v. Department of Justice.

      (2) An assessment of the current policies, procedures, and timeliness of the Defense Finance and Accounting Service in implementing and resolving claims under the decision in Butterbaugh v. Department of Justice.

      (3) An assessment whether or not the decisions made by the Defense Finance and Accounting Service in implementing the decision in Butterbaugh v. Department of Justice follow a consistent pattern of resolution.

      (4) An assessment of whether or not the decisions made by the Defense Finance and Accounting Service in implementing the decision in Butterbaugh v. Department of Justice are resolving claims by providing more compensation than an individual has been able to prove, under the rule of construction that laws providing benefits to veterans are liberally construed in favor of the veteran.

      (5) An estimate of the total amount of compensation payable to members of the reserve components of the Armed Forces, both past and present, as a result of the recent decision in Hernandez v. Department of the Air Force (No. 2006-3375, slip op.) that leave can be reimbursed for Reserve service before 1994, when Congress enacted chapter 43 of title 38, United States Code (commonly referred to as the `Uniformed Services Employment and Reemployment Rights Act').

      (6) A comparative assessment of the handling of claims by the Defense Finance and Accounting Service under the decision in Butterbaugh v. Department of Justice with the handling of claims by other Federal agencies (selected by the Comptroller General for purposes of the comparative assessment) under that decision.

      (7) A statement of the number of claims by members of the reserve components of the Armed Forces under the decision in Butterbaugh v. Department of Justice that have been adjudicated by the Defense Finance and Accounting Service.

      (8) A statement of the number of claims by members of the reserve components of the Armed Forces under the decision in Butterbaugh v. Department of Justice that have been denied by the Defense Finance and Accounting Service.

      (9) A comparative assessment of the average amount of time required for the Defense Finance and Accounting Service to resolve a claim under the decision in Butterbaugh v. Department of Justice with the average amount of time required by other Federal agencies (as so selected) to resolve a claim under that decision.

      (10) A comparative statement of the backlog of claims with the Defense Finance and Accounting Service under the decision in Butterbaugh v. Department of Justice with the backlog of claims of other Federal agencies (as so selected) under that decision.

      (11) An estimate of the amount of time required for the Defense Finance and Accounting Service to resolve all outstanding claims under the decision in Butterbaugh v. Department of Justice.

      (12) An assessment of the reasonableness of the requirement of the Defense Finance and Accounting Service for the submittal by members of the reserve components of the Armed Forces of supporting documentation for claims under the decision in Butterbaugh v. Department of Justice.

      (13) A comparative assessment of the requirement of the Defense Finance and Accounting Service for the submittal by members of the reserve components of the Armed Forces of supporting documentation for claims under the decision in Butterbaugh v. Department of Justice with the requirement of other Federal agencies (as so selected) for the submittal by such members of supporting documentation for such claims.

      (14) Such recommendations for legislative action as the Comptroller General considers appropriate in light of the decision in Butterbaugh v. Department of Justice and the decision in Hernandez v. Department of the Air Force.

SEC. 1046. STUDY ON SIZE AND MIX OF AIRLIFT FORCE.

    (a) Study Required- The Secretary of Defense shall conduct a requirements-based study on alternatives for the proper size and mix of fixed-wing intratheater and intertheater airlift assets to meet the National Military Strategy for each of the following timeframes: fiscal year 2012, 2018, and 2024. The study shall--

      (1) focus on organic and commercially programmed airlift capabilities;

      (2) analyze the full-spectrum lifecycle costs of the various alternatives for organic models of each of the following aircraft: C-5A/B/C/M, C-17A, KC-X, KC-10, KC-135R, C-130E/H/J, Joint Cargo Aircraft; and

      (3) incorporate the augmentation capability, viability, and feasibility of the Civil Reserve Air Fleet during activation stages I, II, and III.

    (b) Use of Ffrdc- The Secretary shall select, to carry out the study required by subsection (a), a federally funded research and development center that has experience and expertise in conducting similar studies.

    (c) Study Plan- The study required by subsection (a) shall be carried out under a study plan. The study plan shall be developed as follows:

      (1) The center selected under subsection (b) shall develop the study plan and shall, not later than 60 days after the date of enactment of this Act, submit the study plan to the congressional defense committees, the Secretary, and the Comptroller General of the United States.

      (2) The Comptroller General shall review the study plan to determine whether it is complete and objective, and whether it has any flaws or weaknesses in scope or methodology, and shall, not later than 30 days after receiving the study plan, submit to the Secretary and the center a report that contains the results of that review and provides any recommendations that the Comptroller General considers appropriate for improvements to the study plan.

      (3) The center shall modify the study plan to incorporate the recommendations under paragraph (2) and shall, not later than 45 days after receiving that report, submit to the Secretary and the congressional defense committees a report on those modifications. The report shall describe each modification and, if the modifications do not incorporate one or more of the recommendations, shall explain the reasons for not doing so.

    (d) Elements of Study Plan- The study plan required by subsection (c) shall address, at minimum, the following:

      (1) A description of lift requirements and operating profiles for airlift aircraft required to meet the National Military Strategy, including assumptions regarding the following:

        (A) Current and future military combat and support missions.

        (B) The planned force structure growth of the military services.

        (C) Potential changes in lift requirements, including the deployment of the Future Combat Systems by the Army.

        (D) New capability in airlift to be provided by the KC(X) aircraft and the expected utilization of such capability, including its use in intratheater lift.

        (E) The utilization of intertheater lift aircraft in intratheater combat mission support roles.

        (F) The availability and application of Civil Reserve Air Fleet assets in future military scenarios.

        (G) Air mobility requirements associated with the Global Rebasing Initiative of the Department of Defense.

        (H) Air mobility requirements in support of worldwide peacekeeping and humanitarian missions.

        (I) Air mobility requirements in support of homeland defense and national emergencies.

        (J) The viability and capability of the Civil Reserve Air Fleet to augment organic forces in both friendly and hostile environments.

        (K) An assessment of the Civil Reserve Air Fleet to adequately augment the organic fleet as it relates to commercial inventory management restructuring in response to future commercial markets, streamlining of operations, efficiency measures, or downsizing of the participant.

      (2) An evaluation of the state of the current airlift fleet of the Air Force, including assessments of the following:

        (A) The extent to which the increased use of airlift aircraft in on-going operations is affecting the programmed service life of the aircraft of that fleet.

        (B) The adequacy of the current airlift force, including whether or not a minimum of 299 strategic airlift aircraft for the Air Force is sufficient to support future expeditionary combat and non-combat missions, as well as domestic and training mission demands consistent with the requirements of meeting the National Military Strategy.

        (C) The optimal mix of C-5 and C-17 aircraft for the strategic airlift fleet of the Air Force, to include the following:

          (i) The cost-effectiveness of modernizing various iterations of the C-5A and C-5B/C aircraft fleet versus procuring additional C-17 aircraft.

          (ii) The military capability, operational availability, usefulness, and service life of the C-5A/B/C/M aircraft and the C-17 aircraft. Such an assessment shall examine appropriate metrics, such as aircraft availability rates, departure rates, and mission capable rates, in each of the following cases:

            (I) Completion of the Avionics Modernization Program and the Reliability Enhancement and Re-engining Program.

            (II) Partial completion of the Avionics Modernization Program and the Reliability Enhancement and Re-engining Program, with partial completion of either such program being considered the point at which the continued execution of each program is no longer supported by the cost-effectiveness analysis.

          (iii) At what specific fleet inventory for each organic aircraft, to include air refueling aircraft used in the airlift role, would it impede the ability of Civil Reserve Air Fleet participants to remain a viable augmentation option.

        (D) An analysis and assessment of the lessons that may be learned from the experience of the Air Force in restarting the production line for the C-5 aircraft after having closed the line for several years, and recommendations for the actions that the Department of Defense should take to ensure that the production line for the C-17 aircraft could be restarted if necessary, including--

          (i) an analysis of the methods that were used and costs that were incurred in closing and re-opening the production line for the C-5 aircraft;

          (ii) an assessment of the methods and actions that should be employed and the expected costs and risks of closing and re-opening the production line for the C-17 aircraft in view of that experience.

        Such analysis and assessment should deal with issues such as production work force, production facilities, tooling, industrial base suppliers, contractor logistics support versus organic maintenance, and diminished manufacturing sources.

        (E) Assessing the military capability, operational availability, usefulness, service life and optimal mix of intra-theater airlift aircraft, to include--

          (i) the cost-effectiveness of procuring the Joint Cargo Aircraft versus procuring additional C-130J or refurbishing C-130E/H platforms to meet intra-theater airlift requirements of the combatant commander and component commands; and

          (ii) the cost-effectiveness of procuring additional C-17 aircraft versus procuring additional C-130J platforms or refurbishing C-130E/H platforms to meet intra-theater airlift requirements of the combatant commander and component commands.

      (3) Each analysis required by paragraph (2) shall include--

        (A) a description of the assumptions and sensitivity analysis utilized in the study regarding aircraft performances and cargo loading factors; and

        (B) a comprehensive statement of the data and assumptions utilized in making the program life cycle cost estimates and a comparison of cost and risk associated with the optimally mixed fleet of airlift aircraft versus the program of record airlift aircraft fleet.

    (e) Utilization of Other Studies- The study required by subsection (a) shall build upon the results of the 2005 Mobility Capabilities Studies, the on-going Intra-theater Airlift Fleet Mix Analysis, the Intra-theater Lift Capabilities Study, the Joint Future Theater Airlift Capabilities Analysis, and other appropriate studies and analyses, such as Fleet Viability Board Reports or special aircraft assessments. The study shall also include any testing data collected on modernization, recapitalization, and upgrade efforts of current organic aircraft.

    (f) Collaboration With United States Transportation Command- In conducting the study required by subsection (a) and preparing the report required by subsection (c)(3), the center shall collaborate with the commander of the United States Transportation Command.

    (g) Collaboration With Cost Analysis Improvement Group- In conducting the study required by subsection (a) and constructing the analysis required by subsection (a)(2), the center shall collaborate with the Cost Analysis Improvement Group of the Department of Defense.

    (h) Report- Not later than January 10, 2009, the center selected under subsection (b) shall submit to the Secretary and the congressional defense committees a report on the study required by subsection (a). The report shall be submitted in unclassified form, but shall include a classified annex.

SEC. 1047. REPORT ON FEASIBILITY OF ESTABLISHING A DOMESTIC MILITARY AVIATION NATIONAL TRAINING CENTER.

    (a) In General- Not later than June 1, 2008, the Secretary of Defense shall submit to the congressional defense committees a report to determine the feasibility of establishing a Border State Aviation Training Center (BSATC) to support the current and future requirements of the existing RC-26 training site for counterdrug activities, located at the Fixed Wing Army National Guard Aviation Training Site (FWAATS), including the domestic reconnaissance and surveillance missions of the National Guard in support of local, State, and Federal law enforcement agencies, provided that the activities to be conducted at the BSATC shall not duplicate or displace any activity or program at the RC-26 training site or the FWAATS.

    (b) Content- The report required under subsection (a) shall--

      (1) examine the current and past requirements of RC-26 aircraft in support of local, State, and Federal law enforcement and determine the number of additional aircraft required to provide such support for each State that borders Canada, Mexico, or the Gulf of Mexico;

      (2) determine the number of military and civilian personnel required to run a RC-26 domestic training center meeting the requirements identified under paragraph (1);

      (3) determine the requirements and cost of locating such a training center at a military installation for the purpose of preempting and responding to security threats and responding to crises; and

      (4) include a comprehensive review of the number and type of intelligence, reconnaissance, and surveillance platforms needed for the National Guard to effectively provide domestic operations and civil support (including homeland defense and counterdrug) to local, State, and Federal law enforcement and first responder entities and how those platforms would provide additional capabilities not currently available from the assets of other local, State, and Federal agencies.

    (c) Consultation- In preparing the report required under subsection (a), the Secretary of Defense shall consult with the Adjutant General of each State that borders Canada, Mexico, or the Gulf of Mexico, the Adjutant General of the State of West Virginia, and the National Guard Bureau.

SEC. 1048. LIMITED FIELD USER EVALUATIONS FOR COMBAT HELMET PAD SUSPENSION SYSTEMS.

    (a) In General- The Secretary of Defense shall carry out a limited field user evaluation and operational assessment of qualified combat helmet pad suspension systems. The evaluation and assessment shall be carried out using verified product representative samples from combat helmet pad suspension systems that are qualified as of the date of the enactment of this Act.

    (b) Report- Not later than September 30, 2008, the Secretary shall submit to the congressional defense committees a report on the results of the limited field user evaluation and operational assessment.

    (c) Funding- The limited field user evaluation and operational assessment required by subsection (a) shall be conducted using funds appropriated pursuant to an authorization of appropriations or otherwise made available for fiscal year 2008 for operation and maintenance, Army, for soldier protection and safety.

SEC. 1049. STUDY ON NATIONAL SECURITY INTERAGENCY SYSTEM.

    (a) Study Required- Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall enter into an agreement with an independent, non-profit, non-partisan organization to conduct a study on the national security interagency system.

    (b) Report- The agreement entered into under subsection (a) shall require the organization to submit to Congress and the President a report containing the results of the study conducted pursuant to such agreement and any recommendations for changes to the national security interagency system (including legislative or regulatory changes) identified by the organization as a result of the study.

    (c) Submittal Date- The agreement entered into under subsection (a) shall require the organization to submit the report required under subsection (a) not later than September 1, 2008.

    (d) National Security Interagency System Defined- In this section, the term `national security interagency system' means the structures, mechanisms, and processes by which the departments, agencies, and elements of the Federal Government that have national security missions coordinate and integrate their policies, capabilities, expertise, and activities to accomplish such missions.

    (e) Funding- Of the amount authorized to be appropriated by section 301(5) for operation and maintenance for Defense-wide activities, not more than $3,000,000 may be available to carry out this section.

SEC. 1050. REPORT ON SOLID ROCKET MOTOR INDUSTRIAL BASE.

    (a) Report- Not later than 190 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the status, capability, viability, and capacity of the solid rocket motor industrial base in the United States.

    (b) Content- The report required under subsection (a) shall include the following:

      (1) An assessment of the ability to maintain the Minuteman III intercontinental ballistic missile through its planned operational life.

      (2) An assessment of the ability to maintain the Trident II D-5 submarine launched ballistic missile through its planned operational life.

      (3) An assessment of the ability to maintain all other space launch, missile defense, and other vehicles with solid rocket motors, through their planned operational lifetimes.

      (4) An assessment of the ability to support projected future requirements for vehicles with solid rocket motors to support space launch, missile defense, or any range of ballistic missiles determined to be necessary to meet defense needs or other requirements of the United States Government.

      (5) An assessment of the required materials, the supplier base, the production facilities, and the production workforce needed to ensure that current and future requirements could be met.

      (6) An assessment of the adequacy of the current and projected industrial base support programs to support the full range of projected future requirements identified in paragraph (4).

SEC. 1051. REPORTS ON ESTABLISHMENT OF A MEMORIAL FOR MEMBERS OF THE ARMED FORCES WHO DIED IN THE AIR CRASH IN BAKERS CREEK, AUSTRALIA, AND ESTABLISHMENT OF OTHER MEMORIALS IN ARLINGTON NATIONAL CEMETERY.

    (a) Bakers Creek Memorial- Not later than April 1, 2008, the Secretary of the Army shall submit to the Committee on Armed Services and the Committee on Veterans' Affairs of the House of Representatives and the Committee on Armed Services and the Committee on Veterans' Affairs of the Senate a report containing a discussion of locations outside of Arlington National Cemetery that would serve as a suitable location for the establishment of a memorial to honor the memory of the 40 members of the Armed Forces of the United States who lost their lives in the air crash at Bakers Creek, Australia, on June 14, 1943.

    (b) Memorials in Arlington National Cemetery- Not later than April 1, 2008, the Secretary of the Army shall submit to the congressional committees specified in subsection (a) a report containing--

      (1) recommendations to implement the results of the study regarding proposals for the construction of new memorials in Arlington National Cemetery that was conducted pursuant to section 2897 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2157); and

      (2) proposed legislation, if necessary, to implement the results of the study.

Subtitle F--Other Matters

SEC. 1061. REIMBURSEMENT FOR NATIONAL GUARD SUPPORT PROVIDED TO FEDERAL AGENCIES.

    Section 377 of title 10, United States Code, is amended--

      (1) in subsection (a), by striking `To the extent' and inserting `Subject to subsection (c), to the extent'; and

      (2) by striking subsection (b) and inserting the following new subsections:

    `(b)(1) Subject to subsection (c), the Secretary of Defense shall require a Federal agency to which law enforcement support or support to a national special security event is provided by National Guard personnel performing duty under section 502(f) of title 32 to reimburse the Department of Defense for the costs of that support, notwithstanding any other provision of law. No other provision of this chapter shall apply to such support.

    `(2) Any funds received by the Department of Defense under this subsection as reimbursement for support provided by personnel of the National Guard shall be credited, at the election of the Secretary of Defense, to the following:

      `(A) The appropriation, fund, or account used to fund the support.

      `(B) The appropriation, fund, or account currently available for reimbursement purposes.

    `(c) An agency to which support is provided under this chapter or section 502(f) of title 32 is not required to reimburse the Department of Defense for such support if the Secretary of Defense waives reimbursement. The Secretary may waive the reimbursement requirement under this subsection if such support--

      `(1) is provided in the normal course of military training or operations; or

      `(2) results in a benefit to the element of the Department of Defense or personnel of the National Guard providing the support that is substantially equivalent to that which would otherwise be obtained from military operations or training.'.

SEC. 1062. CONGRESSIONAL COMMISSION ON THE STRATEGIC POSTURE OF THE UNITED STATES.

    (a) Establishment- There is hereby established a commission to be known as the `Congressional Commission on the Strategic Posture of the United States'. The purpose of the commission is to examine and make recommendations with respect to the long-term strategic posture of the United States.

    (b) Composition-

      (1) MEMBERSHIP- The commission shall be composed of 12 members appointed as follows:

        (A) Three by the chairman of the Committee on Armed Services of the House of Representatives.

        (B) Three by the ranking minority member of the Committee on Armed Services of the House of Representatives.

        (C) Three by the chairman of the Committee on Armed Services of the Senate.

        (D) Three by the ranking minority member of the Committee on Armed Services of the Senate.

      (2) CHAIRMAN; VICE CHAIRMAN-

        (A) CHAIRMAN- The chairman of the Committee on Armed Services of the House of Representatives and the chairman of the Committee on Armed Services of the Senate shall jointly designate one member of the commission to serve as chairman of the commission.

        (B) VICE CHAIRMAN- The ranking minority member of the Committee on Armed Services of the House of Representatives and the ranking minority member of the Committee on Armed Services of the Senate shall jointly designate one member of the commission to serve as vice chairman of the commission.

      (3) PERIOD OF APPOINTMENT; VACANCIES- Members shall be appointed for the life of the commission. Any vacancy in the commission shall be filled in the same manner as the original appointment.

    (c) Duties-

      (1) REVIEW- The commission shall conduct a review of the strategic posture of the United States, including a strategic threat assessment and a detailed review of nuclear weapons policy, strategy, and force structure.

      (2) ASSESSMENT AND RECOMMENDATIONS-

        (A) ASSESSMENT- The commission shall assess the benefits and risks associated with the current strategic posture and nuclear weapons policies of the United States.

        (B) RECOMMENDATIONS- The commission shall make recommendations as to the most appropriate strategic posture and most effective nuclear weapons strategy.

    (d) Cooperation From Government-

      (1) COOPERATION- In carrying out its duties, the commission shall receive the full and timely cooperation of the Secretary of Defense, the Secretary of Energy, the Secretary of State, the Director of National Intelligence, and any other United States Government official in providing the commission with analyses, briefings, and other information necessary for the fulfillment of its responsibilities.

      (2) LIAISON- The Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of National Intelligence shall each designate at least one officer or employee of the Department of Defense, the Department of Energy, the Department of State, and the intelligence community, respectively, to serve as a liaison officer between the department (or the intelligence community, as the case may be) and the commission.

    (e) Report- Not later than December 1, 2008, the commission shall submit to the President, the Secretary of Defense, the Secretary of Energy, the Secretary of State, the Committee on Armed Services of the Senate, and the Committee on Armed Services of the House of Representatives a report on the commission's findings, conclusions, and recommendations. The report shall identify the strategic posture and nuclear weapons strategy recommended under subsection (c)(2)(B) and shall include--

      (1) the military capabilities and force structure necessary to support the strategy, including both nuclear and non-nuclear capabilities that might support the strategy;

      (2) the number of nuclear weapons required to support the strategy, including the number of replacement warheads required, if any;

      (3) the appropriate qualitative analysis, including force-on-force exchange modeling, to calculate the effectiveness of the strategy under various scenarios;

      (4) the nuclear infrastructure (that is, the size of the nuclear complex) required to support the strategy;

      (5) an assessment of the role of missile defenses in the strategy;

      (6) an assessment of the role of nonproliferation programs in the strategy;

      (7) the political and military implications of the strategy for the United States and its allies; and

      (8) any other information or recommendations relating to the strategy (or to the strategic posture) that the commission considers appropriate.

    (f) Funding- Of the amounts appropriated or otherwise made available pursuant to this Act to the Department of Defense, $5,000,000 is available to fund the activities of the commission.

    (g) Termination- The commission shall terminate on June 1, 2009.

SEC. 1063. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code- Title 10, United States Code, is amended as follows:

      (1) Chapter 3 is amended--

        (A) by redesignating the section 127c added by section 1201(a) of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2410) as section 127d and transferring that section so as to appear immediately after the section 127c added by section 1231(a) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3467); and

        (B) by revising the table of sections at the beginning of such chapter to reflect the redesignation and transfer made by paragraph (1).

      (2) Section 629(d)(1) is amended by inserting a comma after `(a)'.

      (3) Section 662(b) is amended by striking `paragraphs (1), (2), and (3) of subsection (a)' and inserting `paragraphs (1) and (2) of subsection (a)'.

      (4) Subsections (c) and (d) of section 948r are each amended by striking `Defense Treatment Act of 2005' each place it appears and inserting `Detainee Treatment Act of 2005'.

      (5) The table of sections at the beginning of subchapter VI of chapter 47A is amended by striking the item relating to section 950j and inserting the following:

      `950j. Finality of proceedings, findings, and sentences.'.

      (6) Section 950f(b) is amended by striking `No person may be serve' and inserting `No person may serve'.

      (7) The heading for section 950j is amended by striking `Finality or' and inserting `Finality of'.

      (8) Section 1034(b)(2) is amended by inserting `unfavorable' before `action' the second place it appears.

      (9) Section 1588(d)(1)(B) is amended by striking `the Act of March 9, 1920, commonly known as the `Suits in Admiralty Act' (41 Stat. 525; 46 U.S.C. App. 741 et seq.) and the Act of March 3, 1925, commonly known as the `Public Vessels Act' (43 Stat. 1112; 46 U.S.C. App. 781 et seq.)' and inserting `chapters 309 and 311 of title 46'.

      (10) The table of sections at the beginning of chapter 137 is amended by striking the item relating to section 2333 and inserting the following new item:

      `2333. Joint policies on requirements definition, contingency program management, and contingency contracting.'.

      (11) The table of sections at the beginning of chapter 141 is amended by inserting a period at the end of the item relating to section 2410p.

      (12) The table of sections at the beginning of chapter 152 is amended by inserting a period at the end of the item relating to section 2567.

      (13) Section 2583(e) is amended by striking `Dogs' and inserting `Animals'.

      (14) Section 2668(e) is amended by striking `and (d)' and inserting `and (e)'.

      (15) Section 12304(a) is amended by striking the second period at the end.

      (16) Section 14310(d)(1) is amended by inserting a comma after `(a)'.

    (b) Title 37, United States Code- Section 302c(d)(1) of title 37, United States Code, is amended by striking `Services Corps' and inserting `Service Corps'.

    (c) John Warner National Defense Authorization Act for Fiscal Year 2007- Effective as of October 17, 2006, and as if included therein as enacted, the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109-364) is amended as follows:

      (1) Section 333(a) (120 Stat. 2151) is amended--

        (A) by striking `Section 332(c)' and inserting `Section 332'; and

        (B) in paragraph (1), by inserting `in subsection (c),' after `(1)'.

      (2) Section 348(2) (120 Stat. 2159) is amended by striking `60 days of' and inserting `60 days after'.

      (3) Section 511(a)(2)(D)(i) (120 Stat. 2182) is amended by inserting a comma after `title'.

      (4) Section 591(b)(1) (120 Stat. 2233) is amended by inserting a period after `this title'.

      (5) Section 606(b)(1)(A) (120 Stat. 2246) is amended by striking `in' and inserting `In'.

      (6) Section 670(b) (120 Stat. 2269) is amended by striking `such title' and inserting `such chapter'.

      (7) Section 673 (120 Stat. 2271) is amended--

        (A) in subsection (a)(1), by inserting `the second place it appears' before `and inserting';

        (B) in subsection (b)(1)--

          (i) by striking `Section' and inserting `Subsection (a) of section'; and

          (ii) by inserting `the second place it appears' before `and inserting'; and

        (C) in subsection (c)(1), by inserting `the second place it appears' before `and inserting'.

      (8) Section 842(a)(2) (120 Stat. 2337) is amended by striking `adding at the end' and inserting `inserting after the item relating to section 2533a'.

      (9) Section 1017(b)(2) (120 Stat. 2379; 10 U.S.C. 2631 note) is amended by striking `section 27' and all that follows through the period at the end and inserting `sections 12112 and 50501 and chapter 551 of title 46, United States Code.'.

      (10) Section 1071(f) (120 Stat. 2402) is amended by striking `identical' both places it appears.

      (11) Section 1231(d) (120 Stat. 2430; 22 U.S.C. 2776a(d)) is amended by striking `note'.

      (12) Section 2404(b)(2)(A)(ii) (120 Stat. 2459) is amended by striking `2906 of such Act' and inserting `2906A of such Act'.

      (13) Section 2831 (120 Stat. 2480) is amended--

        (A) by striking `Section 2667(d)' and inserting `Section 2667(e)'; and

        (B) by inserting `as redesignated by section 662(b)(1) of this Act,' after `Code,'.

    (d) Public Law 109-366- Effective as of October 17, 2006, and as if included therein as enacted, Public Law 109-366 is amended as follows:

      (1) Section 8(a)(3) (120 Stat. 2636) is amended by inserting a semicolon after `subsection'.

      (2) Section 9(1) (120 Stat. 2636) is amended by striking `No. 1.' and inserting `No. 1,'.

    (e) National Defense Authorization Act for Fiscal Year 2006- Effective as of January 6, 2006, and as if included therein as enacted, the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) is amended as follows:

      (1) Section 571 (119 Stat. 3270) is amended by striking `931 et seq.)' and inserting `921 et seq.)'.

      (2) Section 1052(j) (119 Stat. 3435) is amended by striking `Section 1049' and inserting `Section 1409'.

    (f) Military Commissions Act of 2006- Section 7 of the Military Commissions Act of 2006 (Public Law 109-366) is amended by striking `added by added by' and inserting `added by'.

    (g) National Defense Authorization Act for Fiscal Year 2004- The National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) is amended as follows:

      (1) Section 706(a) (117 Stat. 1529; 10 U.S.C. 1076b note) is amended by striking `those program' and inserting `those programs'.

      (2) Section 1413(a) (117 Stat. 1665; 41 U.S.C. 433 note) is amended by striking `(A))' and inserting `(A)))'.

      (3) Section 1602(e)(3) (117 Stat. 1683; 10 U.S.C. 2302 note) is amended by inserting `Security' after `Health'.

    (h) National Defense Authorization Act for Fiscal Year 1994- Section 845(a) of the National Defense Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note) is amended--

      (1) in paragraph (2)(A), by inserting `Research' after `Defense Advanced'; and

      (2) in paragraph (3), by inserting `Research' after `Defense Advanced'.

    (i) National Defense Authorization Act for Fiscal Year 1993- Section 722(a)(1) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 1073 note) is amended by striking `155 Stat.' and inserting `115 Stat.'.

SEC. 1064. REPEAL OF CERTIFICATION REQUIREMENT.

    Section 1063 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3445) is repealed.

SEC. 1065. MAINTENANCE OF CAPABILITY FOR SPACE-BASED NUCLEAR DETECTION.

    The Secretary of Defense shall maintain the capability for space-based nuclear detection at a level that meets or exceeds the level of capability as of the date of the enactment of this Act.

SEC. 1066. SENSE OF CONGRESS REGARDING DETAINEES AT NAVAL STATION, GUANTANAMO BAY, CUBA.

    It is the sense of Congress that--

      (1) the Nation extends its gratitude to the military personnel who guard and interrogate some of the world's most dangerous men every day at Naval Station, Guantanamo Bay, Cuba;

      (2) the United States Government should urge the international community, in general, and in particular, the home countries of the detainees who remain in detention despite having been ordered released by a Department of Defense administrative review board, to work with the Department of Defense to facilitate and expedite the repatriation of such detainees;

      (3) detainees at Guantanamo Bay, to the maximum extent possible, should be charged and expeditiously prosecuted for crimes committed against the United States; and

      (4) operations at Guantanamo Bay should be carried out in a way that upholds the national interest and core values of the American people.

SEC. 1067. A REPORT ON TRANSFERRING INDIVIDUALS DETAINED AT NAVAL STATION, GUANTANAMO BAY, CUBA.

    (a) Report Required- Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report that contains the Secretary's plan for each individual presently detained at Naval Station, Guantanamo Bay, Cuba, under the control of the Joint Task Force Guantanamo, who is or has ever been classified as an `enemy combatant' (referred to in this section as a `detainee').

    (b) Contents of Report- The report required under subsection (a) shall include each of the following:

      (1) An identification of the number of detainees who, as of December 31, 2007, the Department estimates--

        (A) will have been or will be charged with one or more crimes and may, therefore, be tried before a military commission;

        (B) will be subject of an order calling for the release or transfer of the detainee from the Guantanamo Bay facility; or

        (C) will not have been charged with any crimes and will not be subject to an order calling for the release or transfer of the detainee from the Guantanamo Bay facility, but whom the Department wishes to continue to detain.

      (2) A description of the actions required to be undertaken, by the Secretary of Defense, possibly the heads of other Federal agencies, and Congress, to ensure that detainees who are subject to an order calling for their release or transfer from the Guantanamo Bay facility have, in fact, been released.

    (c) Form- The report required by subsection (a) shall be submitted in unclassified form but may contain a classified annex.

SEC. 1068. REPEAL OF PROVISIONS IN SECTION 1076 OF PUBLIC LAW 109-364 RELATING TO USE OF ARMED FORCES IN MAJOR PUBLIC EMERGENCIES.

    (a) Interference With State and Federal Laws-

      (1) IN GENERAL- Section 333 of title 10, United States Code, is amended to read as follows:

`Sec. 333. Interference with State and Federal law

    `The President, by using the militia or the armed forces, or both, or by any other means, shall take such measures as he considers necessary to suppress, in a State, any insurrection, domestic violence, unlawful combination, or conspiracy, if it--

      `(1) so hinders the execution of the laws of that State, and of the United States within the State, that any part or class of its people is deprived of a right, privilege, immunity, or protection named in the Constitution and secured by law, and the constituted authorities of that State are unable, fail, or refuse to protect that right, privilege, or immunity, or to give that protection; or

      `(2) opposes or obstructs the execution of the laws of the United States or impedes the course of justice under those laws.

    In any situation covered by clause (1), the State shall be considered to have denied the equal protection of the laws secured by the Constitution.'.

      (2) PROCLAMATION TO DISPERSE- Section 334 of such title is amended by striking `or those obstructing the enforcement of the laws' after `insurgents'.

      (3) HEADING AMENDMENT- The heading of chapter 15 of such title is amended to read as follows:

`CHAPTER 15--INSURRECTION'.

      (4) CLERICAL AMENDMENTS-

        (A) The table of sections at the beginning of chapter 15 of such title is amended by striking the item relating to section 333 and inserting the following new item:

      `333. Interference with State and Federal law.'.

        (B) The tables of chapters at the beginning of subtitle A of title 10, United States Code, and at the beginning of part I of such subtitle, are each amended by striking the item relating to chapter 15 and inserting the following new item:

331'.

    (b) Repeal of Section Relating to Provision of Supplies, Services, and Equipment-

      (1) IN GENERAL- Section 2567 of title 10, United States Code, is repealed.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 152 of such title is amended by striking the item relating to section 2567.

    (c) Conforming Amendment- Section 12304(c) of such title is amended by striking `Except to perform' and all that follows through `this section' and inserting `No unit or member of a reserve component may be ordered to active duty under this section to perform any of the functions authorized by chapter 15 or section 12406 of this title or, except as provided in subsection (b),'.

    (d) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. 1069. STANDARDS REQUIRED FOR ENTRY TO MILITARY INSTALLATIONS IN UNITED STATES.

    (a) Development of Standards-

      (1) ACCESS STANDARDS FOR VISITORS- The Secretary of Defense shall develop access standards applicable to all military installations in the United States. The standards shall require screening standards appropriate to the type of installation involved, the security level, category of individuals authorized to visit the installation, and level of access to be granted, including--

        (A) protocols to determine the fitness of the individual to enter an installation; and

        (B) standards and methods for verifying the identity of the individual.

      (2) ADDITIONAL CRITERIA- The standards required under paragraph (1) may--

        (A) provide for expedited access to a military installation for Department of Defense personnel and employees and family members of personnel who reside on the installation;

        (B) provide for closer scrutiny of categories of individuals determined by the Secretary of Defense to pose a higher potential security risk; and

        (C) in the case of an installation that the Secretary determines contains particularly sensitive facilities, provide additional screening requirements, as well as physical and other security measures for the installation.

    (b) Use of Technology- The Secretary of Defense is encouraged to procure and field existing identification screening technology and to develop additional technology only to the extent necessary to assist commanders of military installations in implementing the standards developed under this section at points of entry for such installations.

    (c) Deadlines-

      (1) DEVELOPMENT AND IMPLEMENTATION- The Secretary of Defense shall develop the standards required under this section by not later than July 1, 2008, and implement such standards by not later than January 1, 2009.

      (2) SUBMISSION TO CONGRESS- Not later than August 1, 2009, the Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives the standards implemented pursuant to paragraph (1).

SEC. 1070. REVISED NUCLEAR POSTURE REVIEW.

    (a) Requirement for Comprehensive Review- In order to clarify United States nuclear deterrence policy and strategy for the near term, the Secretary of Defense shall conduct a comprehensive review of the nuclear posture of the United States for the next 5 to 10 years. The Secretary shall conduct the review in consultation with the Secretary of Energy and the Secretary of State.

    (b) Elements of Review- The nuclear posture review shall include the following elements:

      (1) The role of nuclear forces in United States military strategy, planning, and programming.

      (2) The policy requirements and objectives for the United States to maintain a safe, reliable, and credible nuclear deterrence posture.

      (3) The relationship among United States nuclear deterrence policy, targeting strategy, and arms control objectives.

      (4) The role that missile defense capabilities and conventional strike forces play in determining the role and size of nuclear forces.

      (5) The levels and composition of the nuclear delivery systems that will be required for implementing the United States national and military strategy, including any plans for replacing or modifying existing systems.

      (6) The nuclear weapons complex that will be required for implementing the United States national and military strategy, including any plans to modernize or modify the complex.

      (7) The active and inactive nuclear weapons stockpile that will be required for implementing the United States national and military strategy, including any plans for replacing or modifying warheads.

    (c) Report to Congress- The Secretary of Defense shall submit to Congress, in unclassified and classified forms as necessary, a report on the results of the nuclear posture review conducted under this section. The report shall be submitted concurrently with the quadrennial defense review required to be submitted under section 118 of title 10, United States Code, in 2009.

    (d) Sense of Congress- It is the sense of Congress that the nuclear posture review conducted under this section should be used as a basis for establishing future United States arms control objectives and negotiating positions.

SEC. 1071. TERMINATION OF COMMISSION ON THE IMPLEMENTATION OF THE NEW STRATEGIC POSTURE OF THE UNITED STATES.

    Section 1051 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3431) is repealed.

SEC. 1072. SECURITY CLEARANCES; LIMITATIONS.

    (a) In General- Title III of the Intelligence Reform and Terrorism Prevention Act of 2004 (50 U.S.C. 435b) is amended by adding at the end the following new section:

`SEC. 3002. SECURITY CLEARANCES; LIMITATIONS.

    `(a) Definitions- In this section:

      `(1) CONTROLLED SUBSTANCE- The term `controlled substance' has the meaning given that term in section 102 of the Controlled Substances Act (21 U.S.C. 802).

      `(2) COVERED PERSON- The term `covered person' means--

        `(A) an officer or employee of a Federal agency;

        `(B) a member of the Army, Navy, Air Force, or Marine Corps who is on active duty or is in an active status; and

        `(C) an officer or employee of a contractor of a Federal agency.

      `(3) RESTRICTED DATA- The term `Restricted Data' has the meaning given that term in section 11 of the Atomic Energy Act of 1954 (42 U.S.C. 2014).

      `(4) SPECIAL ACCESS PROGRAM- The term `special access program' has the meaning given that term in section 4.1 of Executive Order No. 12958 (60 Fed. Reg. 19825).

    `(b) Prohibition- After January 1, 2008, the head of a Federal agency may not grant or renew a security clearance for a covered person who is an unlawful user of a controlled substance or an addict (as defined in section 102(1) of the Controlled Substances Act (21 U.S.C. 802)).

    `(c) Disqualification-

      `(1) IN GENERAL- After January 1, 2008, absent an express written waiver granted in accordance with paragraph (2), the head of a Federal agency may not grant or renew a security clearance described in paragraph (3) for a covered person who--

        `(A) has been convicted in any court of the United States of a crime, was sentenced to imprisonment for a term exceeding 1 year, and was incarcerated as a result of that sentence for not less than 1 year;

        `(B) has been discharged or dismissed from the Armed Forces under dishonorable conditions; or

        `(C) is mentally incompetent, as determined by an adjudicating authority, based on an evaluation by a duly qualified mental health professional employed by, or acceptable to and approved by, the United States Government and in accordance with the adjudicative guidelines required by subsection (d).

      `(2) WAIVER AUTHORITY- In a meritorious case, an exception to the disqualification in this subsection may be authorized if there are mitigating factors. Any such waiver may be authorized only in accordance with--

        `(A) standards and procedures prescribed by, or under the authority of, an Executive order or other guidance issued by the President; or

        `(B) the adjudicative guidelines required by subsection (d).

      `(3) COVERED SECURITY CLEARANCES- This subsection applies to security clearances that provide for access to--

        `(A) special access programs;

        `(B) Restricted Data; or

        `(C) any other information commonly referred to as `sensitive compartmented information'.

      `(4) ANNUAL REPORT-

        `(A) REQUIREMENT FOR REPORT- Not later than February 1 of each year, the head of a Federal agency shall submit a report to the appropriate committees of Congress if such agency employs or employed a person for whom a waiver was granted in accordance with paragraph (2) during the preceding year. Such annual report shall not reveal the identity of such person, but shall include for each waiver issued the disqualifying factor under paragraph (1) and the reasons for the waiver of the disqualifying factor.

        `(B) DEFINITIONS- In this paragraph:

          `(i) APPROPRIATE COMMITTEES OF CONGRESS- The term `appropriate committees of Congress' means, with respect to a report submitted under subparagraph (A) by the head of a Federal agency--

            `(I) the congressional defense committees;

            `(II) the congressional intelligence committees;

            `(III) the Committee on Homeland Security and Governmental Affairs of the Senate;

            `(IV) the Committee on Oversight and Government Reform of the House of Representatives; and

            `(V) each Committee of the Senate or the House of Representatives with oversight authority over such Federal agency.

          `(ii) CONGRESSIONAL DEFENSE COMMITTEES- The term `congressional defense committees' has the meaning given that term in section 101(a)(16) of title 10, United States Code.

          `(iii) CONGRESSIONAL INTELLIGENCE COMMITTEES- The term `congressional intelligence committees' has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 401a).

    `(d) Adjudicative Guidelines-

      `(1) REQUIREMENT TO ESTABLISH- The President shall establish adjudicative guidelines for determining eligibility for access to classified information.

      `(2) REQUIREMENTS RELATED TO MENTAL HEALTH- The guidelines required by paragraph (1) shall--

        `(A) include procedures and standards under which a covered person is determined to be mentally incompetent and provide a means to appeal such a determination; and

        `(B) require that no negative inference concerning the standards in the guidelines may be raised solely on the basis of seeking mental health counseling.'.

    (b) Conforming Amendments-

      (1) REPEAL- Section 986 of title 10, United States Code, is repealed.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 49 of such title is amended by striking the item relating to section 986.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on January 1, 2008.

SEC. 1073. IMPROVEMENTS IN THE PROCESS FOR THE ISSUANCE OF SECURITY CLEARANCES.

    (a) Demonstration Project- Not later than 6 months after the date of the enactment of this Act, the Secretary of Defense and the Director of National Intelligence shall implement a demonstration project that applies new and innovative approaches to improve the processing of requests for security clearances.

    (b) Evaluation- Not later than 1 year after the date of the enactment of this Act, the Secretary of Defense and the Director of National Intelligence shall carry out an evaluation of the process for issuing security clearances and develop a specific plan and schedule for replacing such process with an improved process.

    (c) Report- Not later than 30 days after the date of the completion of the evaluation required by subsection (b), the Secretary of Defense and the Director of National Intelligence shall submit to Congress a report on--

      (1) the results of the demonstration project carried out pursuant to subsection (a);

      (2) the results of the evaluation carried out under subsection (b); and

      (3) the recommended specific plan and schedule for replacing the existing process for issuing security clearances with an improved process.

SEC. 1074. PROTECTION OF CERTAIN INDIVIDUALS.

    (a) Protection for Department Leadership- The Secretary of Defense, under regulations prescribed by the Secretary and in accordance with guidelines approved by the Secretary and the Attorney General, may authorize qualified members of the Armed Forces and qualified civilian employees of the Department of Defense to provide physical protection and personal security within the United States to the following persons who, by nature of their positions, require continuous security and protection:

      (1) Secretary of Defense.

      (2) Deputy Secretary of Defense.

      (3) Chairman of the Joint Chiefs of Staff.

      (4) Vice Chairman of the Joint Chiefs of Staff.

      (5) Secretaries of the military departments.

      (6) Chiefs of the Services.

      (7) Commanders of combatant commands.

    (b) Protection for Additional Personnel-

      (1) AUTHORITY TO PROVIDE- The Secretary of Defense, under regulations prescribed by the Secretary and in accordance with guidelines approved by the Secretary and the Attorney General, may authorize qualified members of the Armed Forces and qualified civilian employees of the Department of Defense to provide physical protection and personal security within the United States to individuals other than individuals described in paragraphs (1) through (7) of subsection (a) if the Secretary determines that such protection and security are necessary because--

        (A) there is an imminent and credible threat to the safety of the individual for whom protection is to be provided; or

        (B) compelling operational considerations make such protection essential to the conduct of official Department of Defense business.

      (2) PERSONNEL- Individuals authorized to receive physical protection and personal security under this subsection include the following:

        (A) Any official, military member, or employee of the Department of Defense.

        (B) A former or retired official who faces serious and credible threats arising from duties performed while employed by the Department for a period of up to two years beginning on the date on which the official separates from the Department.

        (C) A head of a foreign state, an official representative of a foreign government, or any other distinguished foreign visitor to the United States who is primarily conducting official business with the Department of Defense.

        (D) Any member of the immediate family of a person authorized to receive physical protection and personal security under this section.

        (E) An individual who has been designated by the President, and who has received the advice and consent of the Senate, to serve as Secretary of Defense, but who has not yet been appointed as Secretary of Defense.

      (3) LIMITATION ON DELEGATION- The authority of the Secretary of Defense to authorize the provision of physical protection and personal security under this subsection may be delegated only to the Deputy Secretary of Defense.

      (4) REQUIREMENT FOR WRITTEN DETERMINATION- A determination of the Secretary of Defense to provide physical protection and personal security under this subsection shall be in writing, shall be based on a threat assessment by an appropriate law enforcement, security, or intelligence organization, and shall include the name and title of the officer, employee, or other individual affected, the reason for such determination, the duration of the authorized protection and security for such officer, employee, or individual, and the nature of the arrangements for the protection and security.

      (5) DURATION OF PROTECTION-

        (A) INITIAL PERIOD OF PROTECTION- After making a written determination under paragraph (4), the Secretary of Defense may provide protection and security to an individual under this subsection for an initial period of not more than 90 calendar days.

        (B) SUBSEQUENT PERIOD- If, at the end of the period that protection and security is provided to an individual under subsection (A), the Secretary determines that a condition described in subparagraph (A) or (B) of paragraph (1) continues to exist with respect to the individual, the Secretary may extend the period that such protection and security is provided for additional 60-day periods. The Secretary shall review such a determination at the end of each 60-day period to determine whether to continue to provide such protection and security.

        (C) REQUIREMENT FOR COMPLIANCE WITH REGULATIONS- Protection and personal security provided under subparagraph (B) shall be provided in accordance with the regulations and guidelines referred to in paragraph (1).

      (6) SUBMISSION TO CONGRESS-

        (A) IN GENERAL- The Secretary of Defense shall submit to the congressional defense committees each determination made under paragraph (4) to provide protection and security to an individual and of each determination under paragraph (5)(B) to extend such protection and security, together with the justification for such determination, not later than 15 days after the date on which the determination is made.

        (B) FORM OF REPORT- A report submitted under subparagraph (A) may be made in classified form.

        (C) REGULATIONS AND GUIDELINES- The Secretary of Defense shall submit to the congressional defense committees the regulations and guidelines prescribed pursuant to paragraph (1) not less than 20 days before the date on which such regulations take effect.

    (c) Definitions- In this section:

      (1) CONGRESSIONAL DEFENSE COMMITTEES- The term `congressional defense committees' means the Committee on Appropriations and the Committee on Armed Services of the Senate and the Committee on Appropriations and the Committee on Armed Services of the House of Representatives.

      (2) QUALIFIED MEMBERS OF THE ARMED FORCES AND QUALIFIED CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE- The terms `qualified members of the Armed Forces' and `qualified civilian employees of the Department of Defense' refer collectively to members or employees who are assigned to investigative, law enforcement, or security duties of any of the following:

        (A) The Army Criminal Investigation Command.

        (B) The Naval Criminal Investigative Service.

        (C) The Air Force Office of Special Investigations.

        (D) The Defense Criminal Investigative Service.

        (E) The Pentagon Force Protection Agency.

    (d) Construction-

      (1) NO ADDITIONAL LAW ENFORCEMENT OR ARREST AUTHORITY- Other than the authority to provide protection and security under this section, nothing in this section may be construed to bestow any additional law enforcement or arrest authority upon the qualified members of the Armed Forces and qualified civilian employees of the Department of Defense.

      (2) POSSE COMITATUS- Nothing in this section shall be construed to abridge section 1385 of title 18, United States Code.

      (3) AUTHORITIES OF OTHER DEPARTMENTS- Nothing in this section may be construed to preclude or limit, in any way, the express or implied powers of the Secretary of Defense or other Department of Defense officials, or the duties and authorities of the Secretary of State, the Director of the United States Secret Service, the Director of the United States Marshals Service, or any other Federal law enforcement agency.

SEC. 1075. MODIFICATION OF AUTHORITIES ON COMMISSION TO ASSESS THE THREAT TO THE UNITED STATES FROM ELECTROMAGNETIC PULSE ATTACK.

    (a) Extension of Date of Submittal of Final Report- Section 1403(a) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 50 U.S.C. 2301 note) is amended by striking `June 30, 2007' and inserting `November 30, 2008'.

    (b) Coordination of Work With Department of Homeland Security- Section 1404 of such Act is amended by adding at the end the following new subsection:

    `(c) Coordination With Department of Homeland Security- The Commission and the Secretary of Homeland Security shall jointly ensure that the work of the Commission with respect to electromagnetic pulse attack on electricity infrastructure, and protection against such attack, is coordinated with Department of Homeland Security efforts on such matters.'.

    (c) Limitation on Department of Defense Funding- The aggregate amount of funds provided by the Department of Defense to the Commission to Assess the Threat to the United States from Electromagnetic Pulse Attack for purposes of the preparation and submittal of the final report required by section 1403(a) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as amended by subsection (a)), whether by transfer or otherwise and including funds provided the Commission before the date of the enactment of this Act, shall not exceed $5,600,000.

SEC. 1076. SENSE OF CONGRESS ON SMALL BUSINESS INNOVATION RESEARCH PROGRAM.

    It is the sense of Congress that--

      (1) the Department of Defense's Small Business Innovation Research program has been effective in supporting the performance of the missions of the Department of Defense, by stimulating technological innovation through investments in small business research activities;

      (2) the Department of Defense's Small Business Innovation Research program has transitioned a number of technologies and systems into operational use by warfighters; and

      (3) the Department of Defense's Small Business Innovation Research program should be reauthorized so as to ensure that the program's activities can continue seamlessly, efficiently, and effectively.

SEC. 1077. REVISION OF PROFICIENCY FLYING DEFINITION.

    Subsection (c) of section 2245 of title 10, United States Code, is amended to read as follows:

    `(c) In this section, the term `proficiency flying' means flying performed under competent orders by a rated or designated member of the armed forces while serving in a non-aviation assignment or in an assignment in which skills would normally not be maintained in the performance of assigned duties.'.

SEC. 1078. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS OF AIRCRAFT UNDER CONTRACT WITH THE ARMED FORCES.

    (a) Definition of Public Aircraft- Section 40102(a)(41)(E) of title 49, United States Code, is amended--

      (1) by inserting `or other commercial air service' after `transportation'; and

      (2) by adding at the end the following: `In the preceding sentence, the term `other commercial air service' means an aircraft operation that (i) is within the United States territorial airspace; (ii) the Administrator of the Federal Aviation Administration determines is available for compensation or hire to the public, and (iii) must comply with all applicable civil aircraft rules under title 14, Code of Federal Regulations.'.

    (b) Aircraft Operated by the Armed Forces- Section 40125(c)(1)(C) of such title is amended by inserting `or other commercial air service' after `transportation'.

    (c) Conforming Amendments-

      (1) Section 40125(b) of such title is amended by striking `40102(a)(37)' and inserting `40102(a)(41)'.

      (2) Section 40125(c)(1) of such title is amended by striking `40102(a)(37)(E)' and inserting `40102(a)(41)(E)'.

SEC. 1079. COMMUNICATIONS WITH THE COMMITTEES ON ARMED SERVICES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES.

    (a) Requests of Committees- The Director of the National Counterterrorism Center, the Director of a national intelligence center, or the head of any element of the intelligence community shall, not later than 45 days after receiving a written request from the Chair or ranking minority member of the Committee on Armed Services of the Senate or the Committee on Armed Services of the House of Representatives for any existing intelligence assessment, report, estimate, or legal opinion relating to matters within the jurisdiction of such Committee, make available to such committee such assessment, report, estimate, or legal opinion, as the case may be.

    (b) Assertion of Privilege-

      (1) IN GENERAL- In response to a request covered by subsection (a), the Director of the National Counterterrorism Center, the Director of a national intelligence center, or the head of any element of the intelligence community shall provide to the Committee making such request the document or information covered by such request unless the President determines that such document or information shall not be provided because the President is asserting a privilege pursuant to the Constitution of the United States.

      (2) SUBMISSION TO CONGRESS- The White House Counsel shall submit to Congress in writing any assertion by the President under paragraph (1) of a privilege pursuant to the Constitution.

    (c) Definitions- In this section:

      (1) INTELLIGENCE COMMUNITY- The term `intelligence community' has the meaning given the term in section 3(4) of the National Security Act of 1947 (50 U.S.C. 401a(4)).

      (2) INTELLIGENCE ASSESSMENT- The term `intelligence assessment' means an intelligence-related analytical study of a subject of policy significance and does not include building-block papers, research projects, and reference aids.

      (3) INTELLIGENCE ESTIMATE- The term `intelligence estimate' means an appraisal of available intelligence relating to a specific situation or condition with a view to determining the courses of action open to an enemy or potential enemy and the probable order of adoption of such courses of action.

SEC. 1080. RETENTION OF REIMBURSEMENT FOR PROVISION OF RECIPROCAL FIRE PROTECTION SERVICES.

    Section 5 of the Act of May 27, 1955 (chapter 105; 69 Stat. 67; 42 U.S.C. 1856d) is amended--

      (1) by striking `Funds' and inserting `(a) Funds'; and

      (2) by adding at the end the following new subsection:

    `(b) Notwithstanding the provisions of subsection (a), all sums received for any Department of Defense activity for fire protection rendered pursuant to this Act shall be credited to the appropriation fund or account from which the expenses were paid. Amounts so credited shall be merged with funds in such appropriation fund or account and shall be available for the same purposes and subject to the same limitations as the funds with which the funds are merged.'.

SEC. 1081. PILOT PROGRAM ON COMMERCIAL FEE-FOR-SERVICE AIR REFUELING SUPPORT FOR THE AIR FORCE.

    (a) Pilot Program Required- The Secretary of the Air Force shall conduct, as soon as practicable after the date of the enactment of this Act, a pilot program to assess the feasibility and advisability of utilizing commercial fee-for-service air refueling tanker aircraft for Air Force operations. The duration of the pilot program shall be at least five years after commencement of the program.

    (b) Purpose-

      (1) IN GENERAL- The pilot program required by subsection (a) shall evaluate the feasibility of fee-for-service air refueling to support, augment, or enhance the air refueling mission of the Air Force by utilizing commercial air refueling providers on a fee-for-service basis.

      (2) ELEMENTS- In order to achieve the purpose of the pilot program, the Secretary of the Air Force shall--

        (A) demonstrate and validate a comprehensive strategy for air refueling on a fee-for-service basis by evaluating all mission areas, including testing support, training support to receiving aircraft, homeland defense support, deployment support, air bridge support, aeromedical evacuation, and emergency air refueling; and

        (B) integrate fee-for-service air refueling described in