[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1778 Reported in House (RH)]





                                                 Union Calendar No. 319

105th CONGRESS

  2d Session

                               H. R. 1778

                      [Report No. 105-133, Part I]

_______________________________________________________________________

                                 A BILL

                  To reform the Department of Defense.

_______________________________________________________________________

                              June 4, 1998

Committed to the Committee of the Whole House on the State of the Union 
                       and ordered to be printed





                                                 Union Calendar No. 319
105th CONGRESS
  2d Session
                                H. R. 1778

                      [Report No. 105-133, Part I]

                  To reform the Department of Defense.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 1997

 Mr. Spence (for himself and Mr. Dellums (by request)) introduced the 
    following bill; which was referred to the Committee on National 
     Security, and in addition to the Committees on Commerce, and 
  Transportation and Infrastructure, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

                             June 17, 1997

   Reported from the Committee on National Security with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             June 17, 1997

     Referral to the Committees on Commerce and Transportation and 
  Infrastructure extended for a period ending not later than July 18, 
                                  1997

                             June 17, 1997

    The bill and amendment recommended by the Committee on National 
 Security referred to the Committee on Government Reform and Oversight 
 for a period ending not later than July 18, 1997 for consideration of 
     such provisions of the bill and amendment as fall within the 
     jurisdiction of that committee pursuant to clause 1(g), rule X

                             July 18, 1997

     Referral to the Committees on Commerce, Government Reform and 
Oversight, and Transportation and Infrastructure extended for a period 
                ending not later than September 30, 1997

                           September 30, 1997

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
              period ending not later than March 30, 1998

                             March 30, 1998

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
              period ending not later than March 31, 1998

                             March 31, 1998

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
               period ending not later than April 1, 1998

                             April 1, 1998

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
              period ending not later than April 30, 1998

                             April 30, 1998

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
               period ending not later than June 2, 1998

                              June 2, 1998

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
               period ending not later than June 3, 1998

                              June 3, 1998

      Referral to the Committees on Commerce, Transportation and 
  Infrastructure, and Government Reform and Oversight extended for a 
               period ending not later than June 4, 1998

                              June 4, 1998

    Committees on Commerce, Transportation and Infrastructure, and 
Government Reform and Oversight discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on June 4, 
                                 1997]

_______________________________________________________________________

                                 A BILL


 
                  To reform the Department of Defense.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Defense Reform Act 
of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Congressional defense committees defined.

                   TITLE I--DEFENSE PERSONNEL REFORMS

Sec. 101. Reduction in personnel assigned to management headquarters 
                            and headquarters support activities.
Sec. 102. Additional reduction in defense acquisition workforce.
Sec. 103. Change in required reduction in annuity for certain defense 
                            acquisition personnel who are separated 
                            before age 55.
Sec. 104. Separation pay for defense acquisition personnel.
Sec. 105. Personnel reductions in United States Transportation Command.

              TITLE II--DEFENSE BUSINESS PRACTICES REFORMS

            Subtitle A--Competitive Procurement Requirements

Sec. 201. Competitive procurement of finance and accounting services.
Sec. 202. Competitive procurement of services to dispose of surplus 
                            defense property.
Sec. 203. Competitive procurement of functions performed by Defense 
                            Information Systems Agency.
Sec. 204. Competitive procurement of printing and duplication services.
Sec. 205. Competitive procurement of certain ophthalmic services.
Sec. 206. Increased use by Defense Agencies of contractors to perform 
                            commercial and industrial type functions.

                Subtitle B--Reform of Conversion Process

Sec. 211. Development of standard forms regarding performance work 
                            statement and request for proposal for 
                            conversion of certain operational functions 
                            of military installations.
Sec. 212. Study and notification requirements for conversion of 
                            commercial and industrial type functions to 
                            contractor performance.
Sec. 213. Collection and retention of cost information data on 
                            contracted out services and functions.

                       Subtitle C--Other Reforms

Sec. 221. Reduction in overhead costs of Inventory Control Points.
Sec. 222. Consolidation of procurement technical assistance and 
                            electronic commerce technical assistance.
Sec. 223. Permanent authority regarding conveyance of utility systems.

                TITLE III--DEFENSE ENVIRONMENTAL REFORMS

                Subtitle A--Superfund Reforms Generally

Sec. 301. Revision of methods of remediation.
Sec. 302. Requirement to consider reasonably anticipated future land 
                            use.
Sec. 303. Limitation on criminal liability of Federal officers, 
                            employees, and agents.
Sec. 304. State role at Federal facilities.

Subtitle B--Superfund and Other Environmental Law Reforms Applicable to 
             Department of Defense or Department of Energy

Sec. 311. Standards for remedial actions conducted at defense 
                            facilities not on the National Priorities 
                            List.
Sec. 312. Authority of Secretary of Defense and Secretary of Energy to 
                            terminate long-term operation and 
                            maintenance of remedial actions and 
                            corrective actions.
Sec. 313. Notification to Congress of costs of Department of Energy 
                            environmental compliance agreements.
Sec. 314. Clean Air Act standards for military sources.
Sec. 315. Authority of Administrator of Environmental Protection Agency 
                            with respect to application of Solid Waste 
                            Disposal Act to military munitions.

           TITLE IV--MISCELLANEOUS ADDITIONAL DEFENSE REFORMS

Sec. 401. Long-term charter contracts for acquisition of auxiliary 
                            vessels for the Department of Defense.
Sec. 402. Fiber-optics based telecommunications linkage of military 
                            installations.
Sec. 403. Repeal of requirement for contractor guarantees on major 
                            weapon systems.
Sec. 404. Requirements relating to micro-purchases of commercial items.
Sec. 405. Availability of simplified procedures to commercial item 
                            procurements.
Sec. 406. Termination of the Armed Services Patent Advisory Board.
Sec. 407. Coordination of Department of Defense criminal investigations 
                            and audits.
Sec. 408. Department of Defense boards, commissions, and advisory 
                            committees.

      TITLE V--COMMISSION ON DEFENSE ORGANIZATION AND STREAMLINING

Sec. 501. Establishment of Commission.
Sec. 502. Duties of Commission.
Sec. 503. Reports.
Sec. 504. Powers.
Sec. 505. Commission procedures.
Sec. 506. Personnel matters.
Sec. 507. Miscellaneous administrative provisions.
Sec. 508. Funding.
Sec. 509. Termination of the Commission.

SEC. 2. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

    For purposes of this Act, the term ``congressional defense 
committees'' means--
            (1) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            (2) the Committee on National Security and the Committee on 
        Appropriations of the House of Representatives.

                   TITLE I--DEFENSE PERSONNEL REFORMS

SEC. 101. REDUCTION IN PERSONNEL ASSIGNED TO MANAGEMENT HEADQUARTERS 
              AND HEADQUARTERS SUPPORT ACTIVITIES.

    (a) In General.--(1) Chapter 3 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 130a. Management headquarters and headquarters support 
              activities personnel: limitation
    ``(a) Limitation.--Effective October 1, 2001, the number of 
management headquarters and headquarters support activities personnel 
in the Department of Defense may not exceed the 75 percent of the 
baseline number.
    ``(b) Phased Reduction.--The number of management headquarters and 
headquarters support activities personnel in the Department of 
Defense--
            ``(1) as of October 1, 1998, may not exceed 90 percent of 
        the baseline number;
            ``(2) as of October 1, 1999, may not exceed 85 percent of 
        the baseline number; and
            ``(3) as of October 1, 2000, may not exceed 80 percent of 
        the baseline number.
    ``(c) Baseline Number.--In this section, the term `baseline number' 
means the number of management headquarters and headquarters support 
activities personnel in the Department of Defense as of October 1, 
1997.
    ``(d) Management Headquarters and Headquarters Support Activities 
Personnel Defined.--In this section:
            ``(1) The term `management headquarters and headquarters 
        support activities personnel' means military and civilian 
        personnel of the Department of Defense who are assigned to, or 
        employed in, functions in management headquarters activities or 
        in management headquarters support activities.
            ``(2) The terms `management headquarters activities' and 
        `management headquarters support activities' have the meanings 
        given those terms in Department of Defense Directive 5100.73, 
        entitled `Department of Defense Management Headquarters and 
        Headquarters Support Activities', as in effect on November 12, 
        1996.
    ``(e) Limitation on Reassignment of Functions.--In carrying out 
reductions in the number of personnel assigned to, or employed in, 
management headquarters and headquarters support activities in order to 
comply with this section, the Secretary of Defense and the Secretaries 
of the military departments may not reassign functions in order to 
evade the requirements of this section.
    ``(f) Flexibility.--If the Secretary of Defense determines, and 
certifies to Congress, that the limitation in subsection (b) with 
respect to any fiscal year would adversely affect United States 
national security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. If the Secretary of 
Defense determines, and certifies to Congress, that the limitation in 
subsection (a) during fiscal year 2001 would adversely affect United 
States national security, the Secretary may waive the limitation under 
that subsection with respect to that fiscal year. The authority under 
this subsection may be used only once, with respect to a single fiscal 
year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``130a. Management headquarters and headquarters support activities 
                            personnel: limitation.''.
    (b) Implementation Report.--Not later than January 15, 1998, the 
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to achieve the personnel reductions 
        required by section 130a of title 10, United States Code, as 
        added by subsection (a); and
            (2) including the recommendations of the Secretary 
        regarding--
                    (A) the revision, replacement, or augmentation of 
                Department of Defense Directive 5100.73, entitled 
                ``Department of Defense Management Headquarters and 
                Headquarters Support Activities'', as in effect on 
                November 12, 1996; and
                    (B) the revision of the definitions of the terms 
                ``management headquarters activities'' and ``management 
                headquarters support activities'' under that Directive 
                so that those terms apply uniformly throughout the 
                Department of Defense.
    (c) Codification of Prior Permanent Limitation on OSD Personnel.--
(1) Chapter 4 of title 10, United States Code, is amended by adding at 
the end a new section 143 consisting of--
            (A) a heading as follows:
``Sec. 143. Office of the Secretary of Defense personnel: limitation'';
        and
            (B) a text consisting of the text of subsections (a) 
        through (f) of section 903 of the National Defense 
        Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
        Stat. 2617).
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``143. Office of the Secretary of Defense personnel: limitation.''.
    (3) Section 903 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2617) is repealed.

SEC. 102. ADDITIONAL REDUCTION IN DEFENSE ACQUISITION WORKFORCE.

    (a) In General.--(1) Chapter 87 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1765. Limitations on number of personnel
    ``(a) Limitation.--Effective October 1, 2001, the number of defense 
acquisition personnel may not exceed the baseline number reduced by 
124,000.
    ``(b) Phased Reduction.--The number of the number of defense 
acquisition personnel--
            ``(1) as of October 1, 1998, may not exceed the baseline 
        number reduced by 40,000;
            ``(2) as of October 1, 1999, may not exceed the baseline 
        number reduced by 80,000; and
            ``(3) as of October 1, 2000, may not exceed the baseline 
        number reduced by 102,000;
    ``(c) Baseline Number.--For purposes of this section, the baseline 
number is the total number of defense acquisition personnel as of 
October 1, 1997.
    ``(d) Defense Acquisition Personnel Defined.--(1) In this section, 
the term `defense acquisition personnel' means military and civilian 
personnel (other than civilian personnel described in paragraph (2)) 
who are assigned to, or employed in, acquisition organizations of the 
Department of Defense (as specified in Department of Defense 
Instruction numbered 5000.58 dated January 14, 1992).
    ``(2) Such term does not include civilian employees of the 
Department of Defense who are employed at a maintenance depot.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1765. Limitations on number of personnel.''.
    (b) Implementation Report.--Not later than January 15, 1998, the 
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to achieve the personnel reductions 
        required by section 1765 of title 10, United States Code, as 
        added by subsection (a); and
            (2) containing any recommendations (including legislative 
        proposals) that the Secretary considers necessary to fully 
        achieve such reductions.
    (c) Technical Reference Correction.--Section 1721(c) of title 10, 
United States Code, is amended by striking out ``November 25, 1988'' 
and inserting in lieu thereof ``November 12, 1996''.

SEC. 103. CHANGE IN REQUIRED REDUCTION IN ANNUITY FOR CERTAIN DEFENSE 
              ACQUISITION PERSONNEL WHO ARE SEPARATED BEFORE AGE 55.

    (a) Alternative Reduction.--In the case of a civilian employee of 
the Department of Defense described in subsection (b) who is separated 
during fiscal year 1998 in the manner described in section 8336(d) of 
title 5, United States Code, the resulting reduction in annuity 
required to be made under section 8339(h) of such title shall be \1/12\ 
of 1 percent for each full month the employee is under 55 years of age 
at the date of separation (rather than \1/6\ of 1 percent).
    (b) Eligible Defense Acquisition Personnel.--A civilian employee of 
the Department of Defense referred to in subsection (a) is a civilian 
employee who, as of the date of separation--
            (1) is covered by the definition of ``defense acquisition 
        personnel'' in section 1765(d) of title 10, United States Code, 
        as added by section 102;
            (2) is serving in grade GS-13 of the General Schedule or 
        above; and
            (3) is 50 years of age or older.
    (c) Exception.--Subsection (a) shall not apply if the civilian 
employee accepts separation pay--
            (1) under section 5597 of title 5, United States Code; or
            (2) under section 104.
    (d) Reporting Requirements.--(1) Not later than March 31, 1998, the 
Secretary of Defense shall submit to Congress a report specifying--
            (A) the number of civilian employees of the Department of 
        Defense (by age and grade) who have received the alternative 
        annuity reduction authorized by this section; and
            (B) the anticipated number of such employees who will 
        receive the alternative annuity reduction during fiscal year 
        1998.
    (2) Not later than December 1, 1998, the Secretary of Defense shall 
submit to Congress a final report covering fiscal year 1998 and 
containing the information required by paragraph (1)(A).

SEC. 104. SEPARATION PAY FOR DEFENSE ACQUISITION PERSONNEL.

    (a) Availability of Separation Pay.--The Secretary of Defense may 
offer separation pay under this section to a civilian employee of the 
Department of Defense who--
            (1) is covered by the definition of ``defense acquisition 
        personnel'' in section 1765(d) of title 10, United States Code, 
        as added by section 102;
            (2) is separated during fiscal year 1998 in the manner 
        described in section 8336(d) of title 5, United States Code; 
        and
            (3) does not receive separation pay under the authority of 
        section 5597 of title 5, United States Code.
    (b) Payment, Amount, and Terms.--Subsections (d) and (g) of section 
5597 of title 5, United States Code, shall apply with respect to the 
manner in which, the amount of, and terms under which separation pay is 
provided under this section.
    (c) Effect on Other Separation Pay Authority.--The authority 
provided in this section may not be used to reduce the extent to which 
separation pay is provided during fiscal year 1998 under section 5597 
of title 5, United States Code, as proposed in the budget of the 
President for fiscal year 1998 submitted to Congress pursuant to 
section 1105 of title 31, United States Code.
    (d) Relationship to Other Special Authority.--A civilian employee 
who receives separation pay under this section may not also receive a 
change under section 103 in the reduction otherwise made to the 
employee's annuity under section 8339(h) of title 5, United States 
Code.
    (e) Report.--In the report required for fiscal year 1998 under 
section 4436(c) of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 5 U.S.C. 5597 note), the Secretary of 
Defense shall include, as a separate portion of the report, information 
on the manner in which the authority provided in this section was 
implemented and the effectiveness and costs of carrying out the 
authority.

SEC. 105. PERSONNEL REDUCTIONS IN UNITED STATES TRANSPORTATION COMMAND.

    (a) Purpose of Limitation.--The purpose of the limitation on the 
number of United States Transportation Command personnel established by 
section 165(d) of title 10, United States Code, as added by subsection 
(b), is to recognize and continue the effort of the Secretary of 
Defense to eliminate administrative duplication and inefficiencies in 
the United States Transportation Command.
    (b) Limitation.--Section 165 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(d) Limitation on United States Transportation Command 
Personnel.--(1) Effective October 1, 1998, the number of United States 
Transportation Command personnel may not exceed 66,238.
    ``(2) In this subsection, the term `United States Transportation 
Command personnel' means military and civilian personnel who are 
assigned to, or employed in, the United States Transportation Command 
(including the components of that combatant command).''.
    (c) Source of Reductions.--(1) In reducing the number of United 
States Transportation Command personnel in order to meet the limitation 
required by section 165(d) of title 10, United States Code, as added by 
subsection (b), the Secretary of Defense shall limit such reductions to 
United States Transportation Command personnel described in paragraph 
(2).
    (2) The United States Transportation Command personnel referred to 
in paragraph (1) are members of the Armed Forces and civilian personnel 
of the Department of Defense who are assigned to, or employed in, the 
United States Transportation Command (including the components of that 
combatant command) and who are in one of the following occupational 
classifications established to group similar occupations and work 
positions into a consistent structure:
            (A) Enlisted members in the Functional Support and 
        Administration classification (designated as occupational code 
        5XX), as described in Department of Defense Instruction 1312.1, 
        dated August 9, 1995, regarding ``Department of Defense 
        Occupational Information Collection and Reporting''.
            (B) Officers in the General Officers and Executives 
        classification (designated as occupational code 1XX), 
        Administrators (designated as occupational code 7XX), and 
        Supply, Procurement, and Allied Officers classification 
        (designated as occupational code 8XX), as described in such 
        instruction.
            (C) Civilian personnel in the Program Management 
        classification (designated as occupational code GS-0340), 
        Accounting and Budget classification (designated as 
        occupational code GS-0500 and related codes), Business and 
        Industry classification (designated as occupational code GS-
        1100 and related codes), and Supply classification (designated 
        as occupational code GS-2000 and related codes), as described 
        in Office of Personnel Management document El-12, dated 
        November 1, 1995, entitled ``Federal Occupational Groups''.

              TITLE II--DEFENSE BUSINESS PRACTICES REFORMS

            Subtitle A--Competitive Procurement Requirements

SEC. 201. COMPETITIVE PROCUREMENT OF FINANCE AND ACCOUNTING SERVICES.

    (a) Competitive Procurement Required.--Chapter 165 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2784. Competitive procurement of finance and accounting services
    ``(a) Competitive Procurement Required.--Beginning not later than 
October 1, 1998, the Secretary of Defense shall competitively procure 
finance and accounting services for the Department of Defense, 
including nonappropriated fund instrumentalities of the Department of 
Defense. The Secretary shall establish procedures to conduct 
competitions among private-sector sources and the Defense Finance and 
Accounting Service and other interested Federal agencies. Such 
procedures shall not permit a component of the Defense Finance and 
Accounting Service to compete against any other component of the 
Defense Finance and Accounting Service to provide such finance and 
accounting services.
    ``(b) Improvement of Competitive Ability.--Before conducting a 
competition under subsection (a) for the procurement of finance and 
accounting services that are being provided by a component of the 
Defense Finance and Accounting Service, the Secretary of Defense shall 
provide the component with an opportunity to establish its most 
efficient organization.
    ``(c) Reporting Requirements.--Not later than 90 days after the end 
of each fiscal year in which finance and accounting services are 
competitively procured under subsection (a), the Secretary of Defense 
shall submit to Congress a report specifying the total volume of 
finance and accounting services procured by the Department of Defense 
during that fiscal year--
            ``(1) from sources within the Department of Defense;
            ``(2) from private-sector sources; and
            ``(3) from other sources in the Federal Government.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2784. Competitive procurement of finance and accounting services.''.

SEC. 202. COMPETITIVE PROCUREMENT OF SERVICES TO DISPOSE OF SURPLUS 
              DEFENSE PROPERTY.

    (a) Competitive Procurement Required.--(1) Chapter 153 of title 10, 
United States Code, is amended by inserting after section 2572 the 
following new section:
``Sec. 2573. Competitive procurement of services to dispose of surplus 
              property
    ``(a) Competitive Procurement of Services.--Beginning not later 
than October 1, 1998, the Secretary of Defense shall competitively 
procure services for the Department of Defense in connection with the 
disposal of surplus property at each site at which the Defense 
Reutilization and Marketing Service operates. The Secretary shall 
establish procedures to conduct competitions among private-sector 
sources and the Defense Reutilization and Marketing Service and other 
interested Federal agencies for the performance of such services at a 
particular site.
    ``(b) Improvement of Competitive Ability.--Before conducting a 
competition under subsection (a) for the procurement of services 
described in such subsection that are being provided by a component of 
the Defense Reutilization and Marketing Service, the Secretary of 
Defense shall provide the component with an opportunity to establish 
its most efficient organization.
    ``(c) Reporting Requirements.--Not later than 90 days after the end 
of each fiscal year in which services for the disposal of surplus 
property are competitively procured under subsection (a), the Secretary 
of Defense shall submit to Congress a report specifying--
            ``(1) the type and volume of such services procured by the 
        Department of Defense during that fiscal year from the Defense 
        Reutilization and Marketing Service and from other sources;
            ``(2) the former sites of the Defense Reutilization and 
        Marketing Service operated during that fiscal year by 
        contractors (other than the Defense Reutilization and Marketing 
        Service); and
            ``(3) the total amount of any fees paid by such contractors 
        in connection with the performance of such services during that 
        fiscal year.
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to alter the requirements regarding the identification or 
demilitarization of an item of excess property or surplus property of 
the Department of Defense before the disposal of the item.
    ``(e) Definitions.--In this section:
            ``(1) The term `surplus property' means any personal excess 
        property which is not required for the needs and the discharge 
        of the responsibilities of all Federal agencies and the 
        disposal of which is the responsibility of the Department of 
        Defense.
            ``(2) The term `excess property' means any personal 
        property under the control of the Department of Defense which 
        is not required for its needs and the discharge of its 
        responsibilities, as determined by the Secretary of Defense.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2572 the 
following new item:

``2573. Competitive procurement of services to dispose of surplus 
                            property.''.
    (b) Implementation Report.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to implement the competitive 
        procurement requirements of section 2573 of title 10, United 
        States Code, as added by subsection (a); and
            (2) identifying other functions of the Defense 
        Reutilization and Marketing Service that the Secretary 
        considers suitable for performance by private-sector sources.

SEC. 203. COMPETITIVE PROCUREMENT OF FUNCTIONS PERFORMED BY DEFENSE 
              INFORMATION SYSTEMS AGENCY.

    (a) Competitive Procurement Required.--(1) Chapter 146 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 2474. Competitive procurement of information services
    ``(a) Competitive Procurement Required.--Beginning not later than 
October 1, 1998, the Secretary of Defense shall competitively procure 
those commercial and industrial type functions performed before that 
date by the Defense Information Systems Agency. The Secretary shall 
establish procedures to conduct competitions among private-sector 
sources and the Defense Information Systems Agency and other interested 
Federal agencies.
    ``(b) Improvement of Competitive Ability.--Before conducting a 
competition under subsection (a) for the procurement of information 
services that are being provided by a component of the Defense 
Information Systems Agency, the Secretary of Defense shall provide the 
component with an opportunity to establish its most efficient 
organization.
    ``(c) Exception for Classified Functions.--(1) The requirement of 
subsection (a) shall not apply to the procurement of services involving 
a classified function performed by the Defense Information Systems 
Agency.
    ``(2) In this subsection, the term `classified function' means any 
telecommunications or information services that--
            ``(A) involve intelligence activities;
            ``(B) involve cryptologic activities related to national 
        security;
            ``(C) involve command and control of military forces;
            ``(D) involve equipment that is an integral part of a 
        weapon or weapons system; or
            ``(E) are critical to the direct fulfillment of military or 
        intelligence missions (other than routine administrative and 
        business applications, such as payroll, finance, logistics, and 
        personnel management applications).
    ``(d) Reporting Requirements.--Not later than 90 days after the end 
of each fiscal year in which services are competitively procured under 
subsection (a), the Secretary of Defense shall submit to Congress a 
report specifying the type and volume of such services procured by the 
Department of Defense during that fiscal year--
            ``(1) from sources within the Department of Defense;
            ``(2) from private-sector sources; and
            ``(3) from other sources in the Federal Government.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2474. Competitive procurement of information services.''.
    (b) Implementation Report.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a report--
            (1) containing a plan to implement the competitive 
        procurement requirements of section 2474 of title 10, United 
        States Code, as added by subsection (a);
            (2) describing the services currently provided by the 
        Defense Information Systems Agency that will be affected by 
        such requirements; and
            (3) describing the manner in which the Secretary proposes 
        to change the support infrastructure of the Defense Information 
        Systems Agency to meet such requirements.

SEC. 204. COMPETITIVE PROCUREMENT OF PRINTING AND DUPLICATION SERVICES.

    (a) Extension.--Subsection (a) of section 351 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 266) is amended--
            (1) by striking out ``and 1997'' and inserting in lieu 
        thereof ``through 1998''; and
            (2) by striking out ``Defense Printing Service'' and 
        inserting in lieu thereof ``Defense Automation and Printing 
        Service''.
    (b) Prohibition on Surcharge for Services.--Such section is further 
amended by adding at the end the following new subsection:
    ``(d) Prohibition on Imposition of Surcharge.--The Defense 
Automation and Printing Service may not impose a surcharge on any 
printing and duplication service for the Department of Defense that is 
procured from a source outside of the Department.''.

SEC. 205. COMPETITIVE PROCUREMENT OF CERTAIN OPHTHALMIC SERVICES.

    (a) Competitive Procurement Required.--Beginning not later than 
October 1, 1998, the Secretary of Defense shall competitively procure 
from private-sector sources, or other sources outside of the Department 
of Defense, all ophthalmic services related to the provision of single 
vision and multivision eyeware for members of the Armed Forces, retired 
members, and certain covered beneficiaries under chapter 55 of title 
10, United States Code, who would otherwise receive such opthalmic 
services through the Department of Defense.
    (b) Exception.--Subsection (a) shall not apply to the extent that 
the Secretary of Defense determines that the use of sources within the 
Department of Defense to provide such ophthalmic services--
            (1) is necessary to meet the readiness requirements of the 
        Armed Forces; or
            (2) is more cost effective.
    (c) Completion of Existing Orders.--Subsection (a) shall not apply 
to orders for ophthalmic services received on or before September 30, 
1998.

SEC. 206. INCREASED USE BY DEFENSE AGENCIES OF CONTRACTORS TO PERFORM 
              COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS.

    (a) Increased Use Required.--Section 2461 of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(g) Increased Use of Contractors By Defense Agencies.--(1) In 
each fiscal year beginning after September 30, 1999, not less than 33 
percent of the commercial and industrial type functions of the Defense 
Agencies shall be performed by private contractors. The Secretary of 
Defense may achieve this goal before that date.
    ``(2) In this subsection, the term `Defense Agency' means a program 
activity specified in the table entitled `Program and Financing' for 
operation and maintenance, Defense-wide activities, in the budget of 
the President transmitted to Congress for fiscal year 1998 pursuant to 
section 1105 of title 31 (and any successor of such activity).''.
    (b) Implementation Plan.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a plan to accomplish the 
increased rate of outsourcing required by subsection (g) of section 
2461 of title 10, United States Code, as added by subsection (a). The 
plan shall identify the specific Defense Agency functions to be 
considered for contractor performance, the number of military and 
civilian positions affected, and relevant milestones for the 
outsourcing of the identified functions.

                Subtitle B--Reform of Conversion Process

SEC. 211. DEVELOPMENT OF STANDARD FORMS REGARDING PERFORMANCE WORK 
              STATEMENT AND REQUEST FOR PROPOSAL FOR CONVERSION OF 
              CERTAIN OPERATIONAL FUNCTIONS OF MILITARY INSTALLATIONS.

    (a) Standard Forms Required.--Chapter 146 of title 10, United 
States Code, is amended by inserting after section 2474, as added by 
section 203, the following new section:
``Sec. 2475. Military installations: use of standard forms in 
              conversion process
    ``(a) Standardization of Requirements.--(1) The Secretary of 
Defense shall develop standard forms (to be known as a `standard 
performance work statement' and a `standard request for proposal') to 
be used in the consideration for conversion to contractor performance 
of those commercial services and functions at military installations 
that have been converted to contractor performance at a rate of 50 
percent or more, as determined under subsection (c).
    ``(2) A separate standard form shall be developed for each service 
and function covered by paragraph (1) and the forms shall be used 
throughout the Department of Defense in lieu of the performance work 
statement and request for proposal otherwise required under the 
procedures and requirements of Office of Management and Budget Circular 
A-76 (or any successor administrative regulation or policy).
    ``(3) The Secretary shall develop and implement the standard forms 
not later than October 1, 1998.
    ``(b) Inapplicability of Elements of OMB Circular A-76.--On and 
after October 1, 1998, the procedures and requirements of Office of 
Management and Budget Circular A-76 regarding performance work 
statements and requests for proposals shall not apply with respect to 
the conversion to contractor performance at a military installation of 
a service or function for which a standard form is required under 
subsection (a).
    ``(c) Determination of Contractor Performance Percentage.--In 
determining the percentage at which a particular commercial service or 
function at military installations has been converted to contractor 
performance, the Secretary of Defense shall take into consideration all 
military installations and use the final estimate of the percentage of 
contractor performance of service and functions contained in the most 
recent commercial and industrial activity inventory database 
established under Office of Management and Budget Circular A-76.
    ``(d) Exclusion of Multi-Function Conversion.--If a commercial 
service or function for which a standard form is developed under 
subsection (a) is combined with another service or function (for which 
such a form is not required) for purposes of considering the services 
and functions at the military installation for conversion to contractor 
performance, a standard form developed under subsection (a) may not be 
used in the conversion process in lieu of the procedures and 
requirements of Office of Management and Budget Circular A-76 regarding 
performance work statements and requests for proposals.
    ``(e) Effect on Other Laws.--Nothing in this section shall be 
construed to supersede any other requirements or limitations, 
specifically contained in this chapter, on the conversion to contractor 
performance of activities performed by civilian employees of the 
Department of Defense.
    ``(f) Military Installation Defined.--In this section, the term 
`military installation' means a base camp, post, station, yard, center, 
homeport facility for any ship, or other activity under the 
jurisdiction of the Department of Defense, including any leased 
facility.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2474, as added by section 203, the following new item:

``2475. Military installations: use of standard forms in conversion 
                            process.''.

SEC. 212. STUDY AND NOTIFICATION REQUIREMENTS FOR CONVERSION OF 
              COMMERCIAL AND INDUSTRIAL TYPE FUNCTIONS TO CONTRACTOR 
              PERFORMANCE.

    (a) Notification.--Section 2461 of title 10, United States Code, is 
amended by striking out subsections (a) and (b) and inserting in lieu 
thereof the following new subsections:
    ``(a) Notification of Conversion Study.--(1) In the case of a 
commercial or industrial type function of the Department of Defense 
that on October 1, 1980, was being performed by Department of Defense 
civilian employees, the Secretary of Defense shall notify Congress of 
any decision to study the function for possible conversion to 
performance by a private contractor. The notification shall include 
information regarding the anticipated length and cost of the study.
    ``(2) A study of a commercial or industrial type function for 
possible conversion to contractor performance shall include the 
following:
            ``(A) A comparison of the performance of the function by 
        Department of Defense civilian employees and by private 
        contractor to determine whether contractor performance will 
        result in savings to the Government over the life of the 
        contract.
            ``(B) An examination of the potential economic effect on 
        employees who would be affected by the conversion, and the 
        potential economic effect on the local community and the United 
        States if more than 75 employees perform the function.
            ``(C) An examination of the effect of contracting for 
        performance of the function on the military mission of the 
        function.
    ``(b) Notification of Conversion Decision.--If, as a result of the 
completion of a study under subsection (a) regarding the possible 
conversion of a function to performance by a private contractor, a 
decision is made to convert the function to contractor performance, the 
Secretary of Defense shall notify Congress of the conversion decision. 
The notification shall--
            ``(1) indicate that the study conducted regarding 
        conversion of the function to performance by a private 
        contractor has been completed;
            ``(2) certify that the comparison required by subsection 
        (a)(2)(A) as part of the study demonstrates that the 
        performance of the function by a private contractor will result 
        in savings to the Government over the life of the contract;
            ``(3) certify that the entire comparison is available for 
        examination; and
            ``(4) contain a timetable for completing conversion of the 
        function to contractor performance.''.
    (b) Waiver for Small Functions.--Subsection (d) of such section is 
amended by striking out ``45 or fewer'' and inserting in lieu thereof 
``20 or fewer''.

SEC. 213. COLLECTION AND RETENTION OF COST INFORMATION DATA ON 
              CONTRACTED OUT SERVICES AND FUNCTIONS.

    (a) Collection and Retention Required.--Section 2463 of title 10, 
United States Code, is amended--
            (1) by redesignating subsections (a) and (b) as subsections 
        (b) and (c), respectively; and
            (2) by inserting after the section heading the following 
        new subsection:
    ``(a) Requirements in Connection With Conversion to Contractor 
Performance.--With respect to each contract converting the performance 
of a service or function of the Department of Defense to contractor 
performance (and any extension of such a contract), the Secretary of 
Defense shall collect, during the term of the contract or extension, 
but not to exceed five years, cost information data regarding 
performance of the service or function by private contractor employees. 
The Secretary shall provide for the permanent retention of information 
collected under this subsection.''.
    (b) Conforming Amendments.--Such section is further amended--
            (1) in subsection (b), as redesignated by subsection 
        (a)(1)--
                    (A) by striking out the subsection heading and 
                inserting in lieu thereof ``Requirements in Connection 
                With Return to Employee Performance.--''; and
                    (B) by striking out ``to which this section 
                applies'' and inserting in lieu thereof ``described in 
                subsection (c),''; and
            (2) in subsection (c), as redesignated by subsection 
        (a)(1)--
                    (A) by striking out the subsection heading and 
                inserting in lieu thereof ``Covered Fiscal Years.--''; 
                and
                    (B) by striking out ``This section'' and inserting 
                in lieu thereof ``Subsection (b)''.
    (c) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2463. Collection and retention of cost information data on 
              contracted out services and functions''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 146 of title 10, United States Code, is 
amended to read as follows:

``2463. Collection and retention of cost information data on contracted 
                            out services and functions.''.

                       Subtitle C--Other Reforms

SEC. 221. REDUCTION IN OVERHEAD COSTS OF INVENTORY CONTROL POINTS.

    (a) Reduction in Costs Required.--The Secretary of Defense shall 
take such actions as may be necessary to reduce the annual overhead 
costs of the supply management activities of the Defense Logistics 
Agency and the military departments (known as Inventory Control Points) 
so that the annual overhead costs are not more than eight percent of 
annual net sales at standard price by the Inventory Control Points.
    (b) Time To Achieve Reduction.--The Secretary shall achieve the 
cost reductions required by subsection (a) not later than September 30, 
2000.
    (c) Implementation Plan.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to Congress a plan to achieve the 
reduction in overhead costs required by subsection (a).
    (d) Definitions.--For purposes of this section:
            (1) The term ``overhead costs'' means the total expenses of 
        the Inventory Control Points, excluding--
                    (A) annual materiel costs; and
                    (B) military and civilian personnel related costs, 
                defined as personnel compensation and benefits under 
                the March 1996 Department of Defense Financial 
                Management Regulations, Volume 2A, Chapter 1, Budget 
                Account Title File (Object Classification Name/Code), 
                object classifications 200, 211, 220, 221, 222, and 
                301.
            (2) The term ``net sales at standard price'' has the 
        meaning given that term in the March 1996 Department of Defense 
        Financial Management Regulations, Volume 2B, Chapter 9, and 
        displayed in ``Exhibit Fund--14 Revenue and Expenses'' for the 
        supply management business areas.

SEC. 222. CONSOLIDATION OF PROCUREMENT TECHNICAL ASSISTANCE AND 
              ELECTRONIC COMMERCE TECHNICAL ASSISTANCE.

    (a) Consolidation of Assistance.--Chapter 142 of title 10, United 
States Code, is amended as follows:
            (1) Sections 2412, 2414, 2417, and 2418 are each amended by 
        inserting ``and electronic commerce'' after ``procurement'' 
        each place it appears.
            (2) Section 2413 is amended--
                    (A) in subsection (b), by striking out 
                ``procurement technical assistance'' and inserting in 
                lieu thereof ``both procurement technical assistance 
                and electronic commerce technical assistance''; and
                    (B) in subsection (c), by inserting ``and 
                electronic commerce'' after ``procurement''.
    (b) Requirement To Use Competitive Procedures.--Section 2413 of 
such title is amended by adding at the end the following new 
subsection:
    ``(d) The Secretary shall use competitive procedures in entering 
into cooperative agreements under subsection (a).''.
    (c) Limitation on Use of Funds.--Section 2417 of such title is 
amended--
            (1) by striking out ``The Director'' and inserting in lieu 
        thereof the following: ``(b) Administrative Costs.--The 
        Director''; and
            (2) by inserting before subsection (b) (as designated by 
        paragraph (1)) the following:
    ``(a) Limitation on Use of Funds.--In any fiscal year the Secretary 
of Defense may use for the program authorized by this chapter only 
funds specifically appropriated for the program for that fiscal 
year.''.
    (d) Clerical Amendments.--(1) The heading for chapter 142 of such 
title is amended to read as follows:

``CHAPTER 142--PROCUREMENT AND ELECTRONIC COMMERCE TECHNICAL ASSISTANCE 
                               PROGRAM''.

    (2) The tables of chapters at the beginning of subtitle A, and at 
the beginning of part IV of subtitle A, of such title are each amended 
by striking out the item relating to chapter 142 and inserting in lieu 
thereof the following:

``142. Procurement and Electronic Commerce Technical            2411''.
                            Assistance Program.
    (3) The heading for section 2417 of such title is amended to read 
as follows:
``Sec. 2417. Funding provisions''.
    (4) The table of sections at the beginning of chapter 142 of such 
title is amended by striking out the item relating to section 2417 and 
inserting in lieu thereof the following:

``2417. Funding provisions.''.

SEC. 223. PERMANENT AUTHORITY REGARDING CONVEYANCE OF UTILITY SYSTEMS.

    (a) In General.--Chapter 159 of title 10, United States Code, is 
amended by inserting after section 2687 the following new section:
``Sec. 2688. Utility systems: permanent conveyance authority
    ``(a) Conveyance Authority.--The Secretary of a military department 
may convey a utility system, or part of a utility system, under the 
jurisdiction of the Secretary to a municipal, private, regional, 
district, or cooperative utility company or other entity. The 
conveyance may consist of all right, title, and interest of the United 
States in the utility system or such lesser estate as the Secretary 
considers appropriate to serve the interests of the United States.
    ``(b) Utility System Defined.--In this section, the term `utility 
system' includes the following:
            ``(1) Electrical generation and supply systems.
            ``(2) Water supply and treatment systems.
            ``(3) Wastewater collection and treatment systems.
            ``(4) Steam or hot or chilled water generation and supply 
        systems.
            ``(5) Natural gas supply systems.
            ``(6) Sanitary landfills or lands to be used for sanitary 
        landfills.
            ``(7) Similar utility systems.
    ``(c) Consideration.--(1) The Secretary of a military department 
may accept consideration received for a conveyance under subsection (a) 
in the form of a cash payment or a reduction in utility rate charges 
for a period of time sufficient to amortize the monetary value of the 
utility system, including any real property interests, conveyed.
    ``(2) Cash payments received shall be credited to an appropriation 
account designated as appropriate by the Secretary of Defense. Amounts 
so credited shall be available for the same time period as the 
appropriation credited and shall be used only for the purposes 
authorized for that appropriation.
    ``(d) Congressional Notification.--A conveyance may not be made 
under subsection (a) until--
            ``(1) the Secretary of the military department concerned 
        submits to the appropriate committees of Congress (as defined 
        in section 2801(c)(4) of this title) a report containing an 
        economic analysis (based upon accepted life-cycle costing 
        procedures approved by the Secretary of Defense) which 
        demonstrates that the full cost to the United States of the 
        proposed conveyance is cost-effective when compared with 
        alternative means of furnishing the same utility systems; and
            ``(2) a period of 21 days has elapsed after the date on 
        which the report is received by the committees.
    ``(e) Additional Terms and Conditions.--The Secretary of the 
military department concerned may require such additional terms and 
conditions in a conveyance entered into under subsection (a) as the 
Secretary considers appropriate to protect the interests of the United 
States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2687 the following new item:

``2688. Utility systems: permanent conveyance authority.''.

                    TITLE III--ENVIRONMENTAL REFORMS

                Subtitle A--Superfund Reforms Generally

SEC. 301. REVISION OF METHODS OF REMEDIATION.

    Section 121(b) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9621(b)) is amended 
by striking out paragraphs (1) and (2) and inserting in lieu thereof 
the following:
            ``(1) Methods of remediation.--(A) Remedies selected at 
        individual facilities shall be protective of human health and 
        the environment over the long term. A remedial action may 
        achieve protection of human health and the environment 
        through--
                    ``(i) treatment that reduces the toxicity, 
                mobility, or volume of hazardous substances, 
                pollutants, or contaminants;
                    ``(ii) containment or other engineering controls to 
                limit exposure;
                    ``(iii) a combination of treatment and containment; 
                or
                    ``(iv) other methods of protection.
            ``(B) The method or methods of remediation appropriate for 
        a given facility shall be determined through the evaluation of 
        remedial alternatives and the selection process under paragraph 
        (2). When determining the appropriate remedial method, 
        treatment is to be preferred for hot spots as defined under 
        paragraph (2)(C).
            ``(2) Appropriate remedial action.--
                    ``(A) In general.--The President shall identify and 
                select an appropriate remedy that minimizes exposures 
                by comparing alternative remedies and balancing the 
                following factors with respect to each such remedy:
                            ``(i) The effectiveness of the remedy, 
                        including its implementability.
                            ``(ii) The long-term reliability of the 
                        remedy, that is, its capability to achieve 
                        long-term protection of human health and the 
                        environment considering the preference for 
                        treatment of hot spots.
                            ``(iii) The short-term risk posed by the 
                        implementation of the remedy to the affected 
                        community, to those engaged in the cleanup 
                        effort, and to the environment.
                            ``(iv) The acceptability of the remedy to 
                        the affected community.
                            ``(v) The reasonableness of the cost of the 
                        remedy.
                            ``(vi) The results of any risk assessments 
                        conducted with respect to the remedy.
                            ``(vii) The costs, both direct and 
                        indirect, of the remedy.
                    ``(B) Deferral of remedial action.--The President 
                may defer the selection of a remedial action if the 
                President determines that--
                            ``(i) the hazardous substance, pollutant, 
                        or contaminant can be contained in a manner 
                        sufficient to protect human health and the 
                        environment; and
                            ``(ii) an innovative technology is expected 
                        to be available in the near future that will 
                        provide a more cost-effective remedy.
                    ``(C) Hot spots.--The following shall apply to the 
                remediation of hot spots:
                            ``(i) For purposes of this section, the 
                        term `hot spot' means a discrete area within a 
                        facility that contains hazardous substances, 
                        pollutants or contaminants (I) that are present 
                        in high concentrations, are highly mobile, and 
                        cannot be reliably contained; or (II) that 
                        would present a significant risk to human 
                        health or the environment. The President shall 
                        develop guidelines for the identification of 
                        hot spots. Such guidelines shall recommend 
                        appropriate field investigations that will not 
                        require extraordinarily complex or costly 
                        measures.
                            ``(ii) In determining an appropriate remedy 
                        for hot spots, the President shall consider the 
                        factors under subparagraph (A). With respect to 
                        the factor in clause (v) of subparagraph (A), 
                        the President shall use a higher threshold for 
                        evaluating the reasonableness of costs for hot 
                        spot treatment relative to the remediation of 
                        non-hot spot materials.
                            ``(iii) The President shall select a remedy 
                        requiring treatment of materials constituting 
                        hot spots to the maximum extent practicable, 
                        consistent with the protection of human health 
                        and the environment. In such instances, the 
                        President shall select an interim containment 
                        remedy for such hot spot subject to adequate 
                        monitoring and public reporting to ensure its 
                        continued integrity and shall review the 
                        interim containment remedy in accordance with 
                        subsection (c). When the appropriate treatment 
                        technology becomes available, as determined by 
                        the President, that remedy shall be considered 
                        in accordance with this section.
                            ``(iv) Notwithstanding the presence of a 
                        hot spot, the President may select a final 
                        containment remedy for hot spots at landfills 
                        and mining sites or similar facilities under 
                        the following circumstances:
                                    ``(I) The hot spot is small 
                                relative to the overall volume of waste 
                                or contamination being addressed, the 
                                hot spot is not readily identifiable 
                                and accessible, and without the 
                                presence of the hot spot containment 
                                would have been selected as the 
                                appropriate remedy under subparagraph 
                                (A) for the larger body of waste or 
                                area of contamination in which the hot 
                                spot is located.
                                    ``(II) The volume and a real extent 
                                of the hot spot is extraordinary 
                                compared to other facilities, and it is 
                                highly unlikely due to the size and 
                                other characteristics of the hot spot 
                                that any treatment technology will be 
                                developed that could be implemented at 
                                reasonable cost.
        Where final containment for a hot spot is selected, the 
        President shall publish an explanation of the basis for that 
        decision.
            ``(3) Generic remedies.--In order to streamline the remedy 
        selection process and to facilitate rapid voluntary action, the 
        President shall establish, taking into account the reasonably 
        anticipated future land uses at the facility and the factors 
        enumerated in paragraph (1)(A)(i), cost-effective generic 
        remedies for categories of facilities, and expedited procedures 
        that include community involvement for selecting generic 
        remedies at an individual facility. To be eligible for 
        selection at a facility, a generic remedy shall be protective 
        of human health and the environment at that facility. In 
        appropriate cases, the President may select a generic remedy 
        without considering alternatives to the generic remedy.
            ``(4) Institutional controls.--Whenever the President 
        selects a remedial action which relies on restrictions on the 
        use of land, water, or other resources to achieve protection of 
        human health and the environment, the President shall specify 
        the nature of the restrictions required to achieve such 
        protections, including restrictions on the permissible uses of 
        land, prohibitions on specified activities upon the property, 
        restrictions on the drilling of wells or the use of ground 
        water, or restrictions on the use of surface water, and may 
        ensure that such restrictions are incorporated into a hazardous 
        substance easement. In reviewing remedial action alternatives 
        which would require the use of such restrictions and providing 
        opportunity for public comment on those alterations, the 
        President shall identify the nature of any institutional 
        controls that would be required to implement such restrictions, 
        known or anticipated affected persons, the likely duration of 
        such restrictions, and the anticipated costs of acquiring any 
        appropriate hazardous substance easements and enforcing the 
        appropriate restrictions.''.

SEC. 302. REQUIREMENT TO CONSIDER REASONABLY ANTICIPATED FUTURE LAND 
              USE.

    Section 121(b) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9621(b)) is further 
amended by adding at the end the following:
            ``(5) Land use.--(A) Before selecting a remedy under 
        subsection (a), the President shall identify the reasonably 
        anticipated future uses of land at a facility as required by 
        this Act. In identifying reasonably anticipated future land 
        uses, the President shall consider factors that include the 
        factors listed in subparagraph (B). In the case of a military 
        installation that is not scheduled for closure or realignment, 
        the President shall consider such factors to the maximum extent 
        practicable.
            ``(B) The factors referred to in subparagraph (A) are as 
        follows:
                    ``(i) Views expressed by members of the affected 
                community.
                    ``(ii) With respect to a Federal facility scheduled 
                for closure or a portion of a Federal facility 
                scheduled for transfer from the ownership or control of 
                the Federal Government to another entity, any joint 
                consensus recommendation of a technical review 
                committee established for a facility of the Department 
                of Defense pursuant to section 2705(c) of title 10, 
                United States Code, a restoration advisory board 
                established for such a facility pursuant to section 
                2705(d) of such title, a local land use redevelopment 
                authority, and another appropriate State agency, or, 
                with respect to a defense nuclear facility of the 
                Department of Energy, a citizen advisory board.
                    ``(iii) The land use history of the facility and 
                surrounding properties, the current land uses of the 
                facility and surrounding properties, recent development 
                patterns in the area where the facility is located, and 
                population projections for that area.
                    ``(iv) Federal or State land use designations, 
                including Federal facilities and national parks, State 
                ground water or surface water recharge areas 
                established under a State's comprehensive protection 
                plan for ground water or surface water, and 
                recreational areas.
                    ``(v) The current land use zoning and future land 
                use plans of the local government with land use 
                regulatory authority.
                    ``(vi) The potential for economic redevelopment.
                    ``(vii) The proximity of the contamination to 
                residences, sensitive populations or ecosystems, 
                natural resources, or areas of unique historic or 
                cultural significance.
                    ``(viii) Current plans for the facility by the 
                property owner or owners, not including potential 
                voluntary remedial measures.''.

SEC. 303. LIMITATION ON CRIMINAL LIABILITY OF FEDERAL OFFICERS, 
              EMPLOYEES, AND AGENTS.

    Section 120 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9620) is amended by 
adding at the end the following:
    ``(k) Criminal Liability.--Notwithstanding any other provision of 
this Act or any other law, an officer, employee, or agent of the United 
States shall not be held criminally liable for a failure to comply, in 
any fiscal year, with a requirement to take a response action at a 
facility that is owned or operated by a department, agency, or 
instrumentality of the United States, under this Act, the Solid Waste 
Disposal Act (42 U.S.C. 6901 et seq.), or any other Federal or State 
law unless--
            ``(1) the officer, employee, or agent has not fully 
        performed any direct responsibility or delegated responsibility 
        that the officer, employee, or agent had under Executive Order 
        12088 (42 U.S.C. 4321 note) or any other delegation of 
        authority to ensure that a request for funds sufficient to take 
        the response action was included in the President's budget 
        request under section 1105 of title 31, United States Code, for 
        that fiscal year; or
            ``(2) appropriated funds were available to pay for the 
        response action.''.

SEC. 304. STATE ROLE AT FEDERAL FACILITIES.

    Subsection (g) of section 120 of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9620) is 
amended to read as follows:
    ``(g) Transfer of Authorities.--
            ``(1) State application for transfer of authorities.--A 
        State may apply to the Administrator to exercise the 
        authorities vested in the Administrator under subsections (e) 
        and (h) (other than subsection (h)(2)) of this section at any 
        or all facilities owned or operated by any department, agency, 
        or instrumentality of the United States (including the 
        executive, legislative, and judicial branches of government), 
        including the authority--
                    ``(A) to review and approve all documents prepared 
                in connection with any such investigation and study;
                    ``(B) to review and select remedies pursuant to 
                subsection (e)(4)(A); and
                    ``(C) to enter into agreements with departments, 
                agencies, and instrumentalities of the United States in 
                accordance with subsection (e)(2), and to enter into 
                consent decrees with other potentially responsible 
                parties in accordance with subsection (e)(6).
            ``(2) Transfer of authorities.--(A) The Administrator may 
        enter into a contract or cooperative agreement to transfer some 
        or all of the authorities described in paragraph (1) if the 
        Administrator makes the determinations in subparagraph (B) and 
        the State agrees to the conditions in subparagraph (C).
            ``(B) The determinations to be made by the Administrator 
        under subparagraph (A) are the following:
                    ``(i) The State has the ability to exercise such 
                authorities in accordance with this Act, including 
                adequate legal authority, financial and personnel 
                resources, organization, and expertise.
                    ``(ii) The State demonstrates experience in 
                exercising similar authorities.
            ``(C) The conditions to be agreed to by the State under 
        subparagraph (A) are the following:
                    ``(i) The State will not redelegate any of the 
                authorities transferred to it by the Administrator, 
                except as provided in the transfer agreement.
                    ``(ii) In the case of a State that is authorized to 
                implement a State hazardous waste program pursuant to 
                section 3006 of the Solid Waste Disposal Act (42 U.S.C. 
                6926), the State will not exercise the authorities 
                under that Act at the same time and at the same site as 
                it exercises the authorities transferred to it under 
                this subsection, with respect to a release or threat of 
                release being addressed by the authorities transferred 
                to it.
                    ``(iii) The State will exercise the authorities 
                transferred to it with respect to each department, 
                agency, and instrumentality of the United States in the 
                same manner and to the same extent, both procedurally 
                and substantively, as it exercises the authorities with 
                respect to any non-Federal entity.
            ``(3) Effect of authorization under solid waste disposal 
        act.--In the review by the Administrator of an application of a 
        State for transfer of authorities under this subsection, if the 
        State is authorized to implement a State hazardous waste 
        program pursuant to section 3006 of the Solid Waste Disposal 
        Act (42 U.S.C. 6926), the following provisions apply:
                    ``(A) With respect to a State that is a signatory 
                to an interagency agreement under subsection (e)(2) 
                that is in effect on the effective date of this 
                subsection, the Administrator, in making the 
                determinations referred to in paragraph (2), shall 
                accord substantial weight to the State's hazardous 
                waste program authorization and the Administrator's 
                findings in approving such authorization.
                    ``(B) With respect to a State whose authorization 
                under such section 3006 includes authorization to 
                implement the corrective action provisions of the Solid 
                Waste Disposal Act, the Administrator shall approve the 
                application and provide for the orderly transfer of 
                authorities as expeditiously as possible, but in no 
                case later than 6 months after the date of receipt of 
                the application, unless the parties agree to another 
                deadline.
            ``(4) Effect of transfer.--Any State to which authorities 
        are transferred under this subsection shall not be deemed to be 
        an agent of the President but shall exercise such authorities 
        in its own name, and the Administrator may transfer to a State 
        only those authorities of the Administrator identified in this 
        subsection.
            ``(5) Deadlines.--Except as provided in paragraph (3)(B), 
        the Administrator shall make a determination on an application 
        from a State under this subsection not later than 90 days after 
        the date the Administrator receives the application.
            ``(6) Withdrawal of authorities.--
                    ``(A) In general.--The Administrator may withdraw 
                the authorities transferred under this subsection in 
                whole or in part if the Administrator determines--
                            ``(i) that the State, in whole or in part, 
                        is exercising such authorities in a manner 
                        clearly inconsistent with the requirements of 
                        this Act; or
                            ``(ii) in the case of a State that was 
                        approved under paragraph (3)(B), that the State 
                        is no longer authorized to implement the 
corrective action provisions of the Solid Waste Disposal Act.
                    ``(B) Requirement of written notice.--At least 90 
                days before withdrawing any such transferred 
                authorities from a State, the Administrator shall 
                provide to the State a written explanation of the 
                reasons for the proposed withdrawal and afford an 
                opportunity to the State to discuss the withdrawal and 
                to propose actions to correct any deficiencies.
            ``(7) Enforcement and remedy selection.--
                    ``(A) In general.--An interagency agreement under 
                this section between a State (including States which 
                are parties to such agreements through the exercise of 
                the Administrator's authorities pursuant to a 
                cooperative agreement or contract under this 
                subsection) and any department, agency, or 
                instrumentality of the United States, shall be 
                enforceable by the State or the Federal department, 
                agency, or instrumentality in the United States 
                district court for the district in which the facility 
                is located. The district court shall have the 
                jurisdiction to enforce compliance with any provision, 
                standard, regulation, condition, requirement, order, or 
                final determination which has become effective under 
                such agreement, and to impose any appropriate civil 
                penalty provided for any violation of the agreement, 
                not to exceed $25,000 per day.
                    ``(B) Failure to concur in remedy selection.--
                            ``(i) In general.--At Federal facilities 
                        where the Administrator's authorities under 
                        subsection (e)(4) have been transferred to the 
                        State pursuant to this section, and the State 
                        does not concur in the remedy selection 
                        proposed by the Federal agency, the parties 
                        shall enter into dispute resolution as provided 
                        in the interagency agreement, provided that the 
                        final level for such disputes concerning remedy 
                        selection shall be to the head of the Federal 
                        department, agency, or instrumentality and the 
                        Governor of the State.
                            ``(ii) State remedy selection.--If no 
                        agreement is reached between the head of the 
                        Federal department, agency, or instrumentality 
                        and the Governor, the State may issue the final 
                        determination, except that the State shall pay 
                        or assure the payment of any additional costs 
                        attributable to carrying out the remedial 
                        action selected by the State.
            ``(8) Limitation.--Except for authorities that are 
        transferred by the Administrator to a State pursuant to this 
        subsection, or that are transferred by the Administrator to an 
        officer or employee of the Environmental Protection Agency, no 
        authority vested in the Administrator under this section may be 
        transferred, by Executive order of the President or otherwise, 
        to any other officer or employee of the United States or to any 
        other person. Except as necessary to specifically implement the 
        transfer of the Administrator's authorities to a State pursuant 
        to this subsection, nothing in this subsection shall be 
        construed as altering, modifying, or impairing in any manner, 
        or authorizing the unilateral modification of, any terms of any 
        agreement, permit, administrative, or judicial order, decree, 
        or interagency agreement existing on the effective date of this 
        subsection. Any other modifications or revisions of an 
        interagency agreement entered into under this section shall 
        require the consent of all parties to such agreement, and 
        absent such consent the agreement shall remain unchanged. 
        Nothing in this subsection shall affect the exercise by a State 
        of any other authorities that may be applicable to facilities 
        in such State.''.

Subtitle B--Superfund and Other Environmental Law Reforms Applicable to 
             Department of Defense or Department of Energy

SEC. 311. STANDARDS FOR REMEDIAL ACTIONS CONDUCTED AT DEFENSE 
              FACILITIES NOT ON THE NATIONAL PRIORITIES LIST.

    Section 2701(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) Exemption of remedial actions conducted at facilities 
        not listed on the national priorities list from certain 
        requirement.--Notwithstanding subsection (a)(2) and paragraph 
        (1) of this subsection, the requirement of section 121(d)(2) of 
        CERCLA (42 U.S.C. 9621(d)(2)) relating to the attainment of a 
        relevant and appropriate standard, requirement, criteria, or 
        limitation shall not apply to a remedial action conducted at a 
        facility under the jurisdiction of the Secretary of Defense if 
        the facility is not listed on the National Priorities List 
        under CERCLA.''.

SEC. 312. AUTHORITY OF SECRETARY OF DEFENSE AND SECRETARY OF ENERGY TO 
              TERMINATE LONG-TERM OPERATION AND MAINTENANCE OF REMEDIAL 
              ACTIONS AND CORRECTIVE ACTIONS.

    (a) Remedial Actions.--Section 120 of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 (42 
U.S.C. 9621), as amended by section 303, is further amended by adding 
at the end the following new subsection:
    ``(l) Termination of Long-Term Operation and Maintenance.--The 
Secretary of Defense, with respect to any site or facility of the 
Department of Defense, and the Secretary of Energy, with respect to any 
site or facility of the Department of Energy, may terminate the long-
term operation and maintenance of a completed remedial action in any 
case in which the Secretary determines, with the concurrence of the 
Administrator or appropriate State or local authorities, that the 
release or threat of release of hazardous substances, pollutants, or 
contaminants at the site or facility is no longer a threat to human 
health and the environment.''.
    (b) Corrective Actions.--Section 3004(u) of the Solid Waste 
Disposal Act (42 U.S.C. 6924(u)) is amended by adding at the end the 
following: ``The Secretary of Defense, with respect to any site or 
facility of the Department of Defense, and the Secretary of Energy, 
with respect to any site or facility of the Department of Energy, may 
terminate the long-term operation and maintenance of a completed 
corrective action in any case in which the Secretary determines, with 
the concurrence of the Administrator or appropriate State or local 
authorities, that the release of hazardous waste or constituents at the 
site or facility is no longer a threat to human health and the 
environment.''.

SEC. 313. NOTIFICATION TO CONGRESS OF COSTS OF DEPARTMENT OF ENERGY 
              ENVIRONMENTAL COMPLIANCE AGREEMENTS.

    (a) Notice to Congress.--The Secretary of Energy may not enter into 
an environmental compliance agreement, or agree to a major modification 
of such an agreement, until after the Secretary submits to Congress the 
following information with respect to the agreement or modification:
            (1) The total cost of carrying out the agreement or 
        modification, and the total cost of other options considered 
        for carrying out the requirements that are the subject of the 
        agreement or modification.
            (2) An estimate of the budget authority and outlays, by 
        year, required while the agreement or modification is in 
        effect.
            (3) The projected cost of carrying out each milestone in 
        the agreement or modification, and the schedule for the 
        initiation of activities under each milestone.
            (4) An estimate of the monetary penalties that may be 
        assessed by the Environmental Protection Agency or the State 
        concerned against the Department of Energy for failure to 
        adhere to the terms of the compliance agreement.
    (b) Definition.--In this section, the term ``environmental 
compliance agreement'' means an interagency agreement under section 
120(e)(2) of the Comprehensive Environmental Response, Compensation, 
and Liability Act of 1980 (42 U.S.C. 9620(e)(2)) entered into by the 
Secretary of Energy, the Administrator of the Environmental Protection 
Agency, and the State in which a facility of the Department of Energy 
is located that provides for compliance by the Department of Energy at 
that facility with the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9061 et sec.).
    (c) Calculation of 90 Days.--For purposes of subsection (a), the 
continuity of a session of Congress is broken only by an adjournment of 
the Congress sine die, and the days on which either House is not in 
session because of an adjournment of more than three days to a day 
certain are excluded in the computation of the 90-day period.

SEC. 314. CLEAN AIR ACT STANDARDS FOR MILITARY SOURCES.

    (a) Continued Effectiveness of Exemptions.--Any exemption described 
in subsection (b) for property owned or operated by the Armed Forces 
that is in effect on the date of the enactment of this Act shall remain 
in effect with respect to any covered requirement that is adopted after 
such date of enactment.
    (b) Covered Exemptions.--Subsection (a) applies to any exemption 
from a covered requirement that is issued--
            (1) by the Administrator of the Environmental Protection 
        Agency pursuant to rulemaking authority under the Clean Air Act 
        (42 U.S.C. 7401 et seq.); or
            (2) by a State in its State implementation plan for that 
        Act.
    (c) Covered Requirements.--In this section, the term ``covered 
requirement'' means a requirement referred to in section 118(a) of the 
Clean Air Act (42 U.S.C. 7418(a)) that relates to ozone or particulate 
matter.

SEC. 315. AUTHORITY OF ADMINISTRATOR OF ENVIRONMENTAL PROTECTION AGENCY 
              WITH RESPECT TO APPLICATION OF SOLID WASTE DISPOSAL ACT 
              TO MILITARY MUNITIONS.

    Section 3004(y) of the Solid Waste Disposal Act (42 U.S.C. 6924(y)) 
is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following:
    ``(2) The Administrator shall exempt unexpended military munitions 
from regulation under this Act upon a finding by the Administrator that 
such military munitions are subject to management under another Federal 
law or regulation and that such other federal law or regulation is 
sufficiently protective of human health and the environment so as to 
make additional regulations under this Act duplicative or 
unnecessary.''.

           TITLE IV--MISCELLANEOUS ADDITIONAL DEFENSE REFORMS

SEC. 401. LONG-TERM CHARTER CONTRACTS FOR ACQUISITION OF AUXILIARY 
              VESSELS FOR THE DEPARTMENT OF DEFENSE.

    (a) Program Authorization.--Chapter 631 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 7233. Auxiliary vessels: authority for long-term charter 
              contracts
    ``(a) Authorized Contracts.--After September 30, 1998, the 
Secretary of the Navy, subject to subsection (b), may enter into a 
contract for the long-term lease or charter of a newly built surface 
vessel, under which the contractor agrees to provide a crew for the 
vessel for the term of the long-term lease or charter, for any of the 
following:
            ``(1) The combat logistics force of the Navy.
            ``(2) The strategic sealift program of the Navy.
            ``(3) Other auxiliary support vessels for the Department of 
        Defense.
    ``(b) Contracts Required To Be Authorized by Law.--A contract may 
be entered into under this section with respect to specific vessels 
only if the Secretary is specifically authorized by law to enter into 
such a contract with respect to those vessels.
    ``(c) Funds for Contract Payments.--The Secretary may make payments 
for contracts entered into under this section using funds available for 
obligation during the fiscal year for which the payments are required 
to be made. Any such contract shall provide that the United States will 
not be required to make a payment under the contract (other than a 
termination payment, if required) before October 1, 2000.
    ``(d) Budgeting Provisions.--Any contract entered into under this 
section shall be treated as a multiyear service contract and as an 
operating lease for purposes of any provision of law relating to the 
Federal budget and Federal budget accounting procedures, including part 
C of title II of the Balanced Budget and Emergency Deficit Control Act 
of 1985 (2 U.S.C. 900 et seq.), and any regulation or directive 
(including any directive of the Office of Management and Budget) 
prescribed with respect to the Federal budget and Federal budget 
accounting procedures.
    ``(e) Term of Contract.--In this section, the term `long-term lease 
or charter' means a lease, charter, service contract, or conditional 
sale agreement with respect to a vessel the term of which (including 
any option period) is for a period of 20 years or more.
    ``(f) Option To Buy.--A contract entered into under the authority 
of this section may contain options for the United States to purchase 
one or more of the vessels covered by the contract at any time during, 
or at the end of, the contract period (including any option period) 
upon payment of an amount not in excess of the unamortized portion of 
the cost of the vessels plus amounts incurred in connection with the 
termination of the financing arrangements associated with the vessels.
    ``(g) Domestic Construction.--The Secretary shall require in any 
contract entered into under this section that each vessel to which the 
contract applies--
            ``(1) shall have been constructed in a shipyard within the 
        United States; and
            ``(2) upon delivery, shall be documented under the laws of 
        the United States.
    ``(h) Vessel Crewing.--The Secretary shall require in any contract 
entered into under this section that the crew of any vessel to which 
the contract applies be comprised of private sector commercial 
mariners.
    ``(i) Contingent Waiver of Other Provisions of Law.--A contract 
authorized by this section may be entered into without regard to 
section 2401 or 2401a of this title if the Secretary of Defense makes 
the following findings with respect to that contract:
            ``(1) The need for the vessels or services to be provided 
        under the contract is expected to remain substantially 
        unchanged during the contemplated contract or option period.
            ``(2) There is a reasonable expectation that throughout the 
        contemplated contract or option period the Secretary of the 
        Navy (or, if the contract is for services to be provided to, 
        and funded by, another military department, the Secretary of 
        that military department) will request funding for the contract 
        at the level required to avoid contract cancellation.
            ``(3) The use of such contract or the exercise of such 
        option is in the interest of the national defense.
    ``(j) Source of Funds for Termination Liability.--If a contract 
entered into under this section is terminated, the costs of such 
termination may be paid from--
            ``(1) amounts originally made available for performance of 
        the contract;
            ``(2) amounts currently available for operation and 
        maintenance of the type of vessels or services concerned and 
        not otherwise obligated; or
            ``(3) funds appropriated for those costs.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7233. Auxiliary vessels: authority for long-term charter 
                            contracts.''.

SEC. 402. FIBER-OPTICS BASED TELECOMMUNICATIONS LINKAGE OF MILITARY 
              INSTALLATIONS.

    (a) Installation Required.--In at least one metropolitan area of 
the United States containing multiple military installations of one or 
more military department or Defense Agency, the Secretary of Defense 
shall provide for the installation of fiber-optics based 
telecommunications technology to link as many of the installations in 
the area as practicable in a privately dedicated telecommunications 
network. The Secretary shall use a competitive process to provide for 
the installation of the telecommunications network through one or more 
new contracts.
    (b) Features of Network.--The telecommunications network shall 
provide direct access to local and long distance telephone carriers, 
allow for transmission of both classified and unclassified information, 
and take advantage of the various capabilities of fiber-optics based 
telecommunications technology.
    (c) Time for Installation.--The telecommunications network or 
networks to be installed under this section shall be installed and 
operational not later than September 30, 1999.
    (d) Report on Implementation.--Not later than March 1, 1998, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the implementation of subsections (a) and (b), 
including the metropolitan area or areas selected for the 
telecommunications network, the estimated cost of the network, and 
potential areas for the future use of such fiber-optics based 
telecommunications technology.

SEC. 403. REPEAL OF REQUIREMENT FOR CONTRACTOR GUARANTEES ON MAJOR 
              WEAPON SYSTEMS.

    (a) Repeal.--Section 2403 of title 10, United States Code, is 
repealed.
    (b) Clerical and Conforming Amendments.--(1) The table of sections 
at the beginning of chapter 141 of such title is amended by striking 
out the item relating to section 2403.
    (2) Section 803 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2604; 10 U.S.C. 2430 
note) is amended--
            (A) in subsection (a), by striking out ``2403,'';
            (B) by striking out subsection (c); and
            (C) by redesignating subsection (d) as subsection (c).

SEC. 404. REQUIREMENTS RELATING TO MICRO-PURCHASES OF COMMERCIAL ITEMS.

    (a) In General.--Section 2304 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(l) Micro-Purchases.--(1) A contracting officer may not award a 
contract or issue a purchase order to buy commercial items for an 
amount equal to or less than the micro-purchase threshold unless a 
member of the Senior Executive Service or a general or flag officer 
makes a written determination that--
            ``(A) the source or sources available for the commercial 
        item do not accept a preferred micro-purchase method, and the 
        contracting officer is seeking a source that does accept such a 
        method; or
            ``(B) the nature of the commercial item necessitates a 
        contract or purchase order so that terms and conditions can be 
        specified.
    ``(2) In this subsection:
            ``(A) The term `micro-purchase threshold' has the meaning 
        provided in section 32 of the Office of Federal Procurement 
        Policy Act (41 U.S.C. 428).
            ``(B) The term `preferred micro-purchase method' means the 
        use of the Government-wide commercial purchase card or any 
        other method for carrying out micro-purchases that Secretary of 
        Defense prescribes in the regulations implementing this 
        subsection.
    ``(3) The Secretary of Defense shall prescribe regulations to 
implement this subsection. The regulations shall include such 
additional preferred methods of carrying out micro-purchases, and such 
exceptions to the requirement of paragraph (1), as the Secretary 
considers appropriate.''.
    (b) Effective Date.--Subsection (l) of section 2304 of title 10, 
United States Code, as added by subsection (a), shall apply with 
respect to micro-purchases made on or after October 1, 1997.

SEC. 405. AVAILABILITY OF SIMPLIFIED PROCEDURES TO COMMERCIAL ITEM 
              PROCUREMENTS.

    (a) Armed Services Acquisitions.--Section 2304(g) of title 10, 
United States Code, is amended in paragraph (1)(B) by striking out 
``only''.
    (b) Civilian Agency Acquisitions.--Section 303(g) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253(g)) is 
amended in paragraph (1)(B) by striking out ``only''.

SEC. 406. TERMINATION OF THE ARMED SERVICES PATENT ADVISORY BOARD.

    (a) Termination of Board.--The organization within the Department 
of Defense known as the Armed Services Patent Advisory Board is 
terminated. No funds available for the Department of Defense may be 
used for the operation of that Board after the date specified in 
subsection (c).
    (b) Transfer of Functions.--All functions performed on the day 
before the date of the enactment of this Act by the Armed Services 
Patent Advisory Board (including performance of the responsibilities of 
the Department of Defense for security review of patent applications 
under chapter 17 of title 35, United States Code) shall be transferred 
to the Defense Technology Security Administration.
    (c) Effective Date.--Subsection (a) shall take effect at the end of 
the 120-day period beginning on the date of the enactment of this Act.

SEC. 407. COORDINATION OF DEPARTMENT OF DEFENSE CRIMINAL INVESTIGATIONS 
              AND AUDITS.

    (a) Board on Criminal Investigations.--Chapter 7 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 182. Board on Criminal Investigations
    ``(a) Establishment.--(1) There is in the Department of Defense a 
Board on Criminal Investigations. The Board consists of the following 
officials:
            ``(A) The Assistant Secretary of Defense for Command, 
        Control, Communications, and Intelligence.
            ``(B) The head of the Army Criminal Investigation Command.
            ``(C) The head of the Naval Criminal Investigative Service.
            ``(D) The head of the Air Force Office of Special 
        Investigations.
    ``(2) To ensure cooperation between the military department 
criminal investigative organizations and the Defense Criminal 
Investigative Service, the Inspector General of the Department of 
Defense shall serve as a nonvoting member of the Board.
    ``(b) Functions of Board.--The Board shall provide for coordination 
and cooperation between the military department criminal investigative 
organizations so as to avoid duplication of effort and minimize 
resources available to the military department criminal investigative 
organizations.
    ``(c) Regional Working Groups.--The Board shall establish working 
groups at the regional level to address and resolve issues of 
jurisdictional responsibility that may arise regarding criminal 
investigations involving a military department criminal investigative 
organization. A working group shall consist of managers or supervisors 
of the military department criminal investigative organizations who 
have the authority to make binding decisions regarding which 
organization will conduct a particular criminal investigation or 
whether a criminal investigation should be conducted jointly.
    ``(d) Authority of Assistant Secretary.--In the event that a 
regional working group or the Board is unable to resolve an issue of 
investigative responsibility, the Assistant Secretary of Defense for 
Command, Control, Communications, and Intelligence shall have the 
responsibility to make a final determination regarding the issue.
    ``(e) Military Department Criminal Investigative Organization 
Defined.--In this section, the term `military department criminal 
investigative organization' means any of the following:
            ``(1) The Army Criminal Investigation Command.
            ``(2) The Naval Criminal Investigative Service.
            ``(3) The Air Force Office of Special Investigations.''.
    (b) Board on Audits.--Such chapter is further amended by inserting 
after section 182, as added by subsection (a), the following new 
section:
``Sec. 183. Board on Audits
    ``(a) Establishment.--(1) There is in the Department of Defense a 
Board on Audits. The Board consists of the following officials:
            ``(A) The Under Secretary of Defense (Comptroller).
            ``(B) The Auditor General of the Army.
            ``(C) The Auditor General of the Navy.
            ``(D) The Auditor General of the Air Force.
            ``(E) The director of the Defense Contract Audit Agency.
    ``(2) To ensure cooperation between the defense auditing 
organizations and the Office of the Inspector General of the Department 
of Defense, the Inspector General of the Department of Defense shall 
serve as a nonvoting member of the Board.
    ``(b) Functions of Board.--The Board shall provide for coordination 
and cooperation between the defense auditing organizations so as to 
avoid duplication of effort and maximize resources available to the 
defense auditing organization.
    ``(c) Regional Working Groups.--The Board shall establish working 
groups at the regional level to address and resolve issues of 
jurisdictional responsibility that may arise regarding audits involving 
a defense auditing organization. A working group shall consist of 
managers or supervisors of the defense auditing organizations who have 
the authority to make binding decisions regarding which defense 
auditing organization will conduct a particular audit or whether an 
audit should be conducted jointly.
    ``(d) Authority of Under Secretary of Defense (Comptroller).--In 
the event that a regional working group or the Board is unable to 
resolve an issue of jurisdictional responsibility, the Under Secretary 
of Defense (Comptroller) shall have the responsibility to make a final 
determination regarding the issue.
    ``(e) Defense Auditing Organization Defined.--In this section, the 
term `defense auditing organization' means any of the following:
            ``(1) The Army Audit Agency.
            ``(2) The Naval Audit Service.
            ``(3) The Air Force Audit Agency.
            ``(4) The Defense Contract Audit Agency.''.
    (c) Working Guidance.--Not later than December 31, 1997, the 
Secretary of Defense shall prescribe such policies as may be necessary 
for the operation of the Board on Criminal Investigations and the Board 
on Audits established pursuant to the amendments made by this section.
    (d) Clerical Amendments.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new items:

``182. Board on Criminal Investigations.
``183. Board on Audits.''.

SEC. 408. DEPARTMENT OF DEFENSE BOARDS, COMMISSIONS, AND ADVISORY 
              COMMITTEES.

    (a) Termination of Existing Advisory Committees.--(1) Effective 
December 31, 1998, any advisory committee established in, or 
administered or funded (in whole or in part) by, the Department of 
Defense that (A) is in existence on the day before the date of the 
enactment of this Act, and (B) was not established by law, or expressly 
continued by law, after January 1, 1995, is terminated.
    (2) For purposes of this section, the term ``advisory committee'' 
means an entity that is subject to the provisions of the Federal 
Advisory Committee Act (5 U.S.C. App.).
    (b) Report on Committees for Which Continuation Is Requested.--Not 
later than March 1, 1998, the Secretary of Defense shall submit to 
Congress a report setting forth those advisory committees subject to 
subsection (a) that the Secretary proposes to continue. The Secretary 
shall include in the report, for each such committee, the justification 
for continuing the committee and a statement of the costs of such 
continuation over the next four fiscal years. The Secretary shall 
include in the report a proposal for any legislation that may be 
required for the continuations proposed in the report.
    (c) Policy for Future DOD Advisory Committees.--(1) Chapter 7 of 
title 10, United States Code, is amended by inserting after section 
183, as added by section 407(b), the following new section:
``Sec. 184. Boards, commissions, and other advisory committees: 
              limitations
    ``(a) Limitation on Establishment.--No advisory committee may be 
established in, or administered or funded (in whole or in part) by, the 
Department of Defense except as specifically provided by law after the 
date of the enactment of this section.
    ``(b) Termination of Advisory Committees.--Each advisory committee 
of the Department of Defense (whether established by law, by the 
President, or by the Secretary of Defense) shall terminate not later 
than the expiration of the four-year period beginning on the date of 
its establishment or on the date of the most recent continuation of the 
advisory committee by law.
    ``(c) Exception for Temporary Advisory Committees.--Subsection (a) 
does not apply to an advisory committee established for a period of one 
year or less for the purpose (as set forth in the charter of the 
advisory committee) of examining a matter that is critical to the 
national security of the United States.
    ``(d) Annual Report.--Not later than March 1 of each year 
(beginning in 1999), the Secretary of Defense shall submit to Congress 
a report on advisory committees of the Department of Defense. In each 
such report, the Secretary shall identify each advisory committee that 
the Secretary proposes to support during the next fiscal year and shall 
set forth the justification for each such committee and the projected 
costs for that committee for the next fiscal year. In the case of any 
advisory committee that is to terminate in the year following the year 
in which the report is submitted pursuant to subsection (b) and that 
the Secretary proposes be continued by law, the Secretary shall include 
in the report a request for continuation of the committee and a 
justification and cost estimate for such continuation.
    ``(e) Advisory Committee Defined.--In this section, the term 
`advisory committee' means an entity that is subject to the provisions 
of the Federal Advisory Committee Act (5 U.S.C. App.).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 183, as added 
by section 407(d), the following new item:

``184. Boards, commissions, and other advisory committees: 
                            limitations.''.

      TITLE V--COMMISSION ON DEFENSE ORGANIZATION AND STREAMLINING

SEC. 501. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Commission on Defense Organization and Streamlining'' 
(hereinafter in this title referred to as the ``Commission'').
    (b) Composition.--The Commission shall be composed of nine members, 
appointed as follows:
            (1) Two members shall be appointed by the chairman of the 
        Committee on National Security of the House of Representatives.
            (2) Two members shall be appointed by the ranking minority 
        party member of the Committee on National Security of the House 
        of Representatives.
            (3) Two members shall be appointed by the chairman of the 
        Committee on Armed Services of the Senate.
            (4) Two members shall be appointed by the ranking minority 
        party member of the Committee on Armed Services of the Senate.
            (5) One member, who shall serve as chairman of the 
        Commission, shall be appointed by at least three of the Members 
        of Congress referred to in paragraphs (1) through (4) acting 
        jointly.
    (c) Qualifications.--Members of the Commission shall be appointed 
from among private United States citizens with knowledge and expertise 
in organization and management matters.
    (d) 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.
    (e) Initial Organization Requirements.--(1) All appointments to the 
Commission shall be made not later than 30 days after the date of the 
enactment of this Act.
    (2) The Commission shall convene its first meeting not later than 
30 days after the date on which all members of the Commission have been 
appointed.
    (f) Security Clearances.--The Secretary of Defense shall expedite 
the processing of appropriate security clearances for members of the 
Commission.

SEC. 502. DUTIES OF COMMISSION.

    (a) In General.--(1) The Commission shall examine the missions, 
functions, and responsibilities of the Office of the Secretary of 
Defense, the management headquarters and headquarters support 
activities of the military departments and Defense Agencies, and the 
various acquisition organizations of the Department of Defense (and the 
relationships among such Office, activities, and organizations).
    (2) On the basis of such examination, the Commission shall propose 
alternative organizational structures and alternative allocations of 
authorities as it considers appropriate.
    (b) Duplication and Redundancy.--In carrying out its duties, the 
Commission shall identify areas of duplication and recommend options to 
streamline, reduce, and eliminate redundancies.
    (c) Special Requirements Regarding Office of Secretary.--The 
examination of the missions, functions, and responsibilities of the 
Office of the Secretary of Defense shall include the following:
            (1) An assessment of the appropriate functions of the 
        Office and whether the Office of the Secretary of Defense or 
        some of its component parts should be organized along mission 
        lines.
            (2) An assessment of the adequacy of the present 
        organizational structure to efficiently and effectively support 
        the Secretary in carrying out responsibilities in a manner that 
        ensures civilian authority in the Department of Defense.
            (3) An assessment of the extent of unnecessary duplication 
        of functions between the Office of the Secretary of Defense and 
        the Joint Staff.
            (4) An assessment of the extent of unnecessary duplication 
        of functions between the Office of the Secretary of Defense and 
        the military departments.
            (5) An assessment of the appropriate number of Under 
        Secretaries of Defense, Assistant Secretaries of Defense, 
        Deputy Under Secretaries of Defense, and Deputy Assistant 
        Secretaries of Defense.
            (6) An assessment of any benefits or efficiencies derived 
        from decentralizing certain functions currently performed by 
        the Office of the Secretary of Defense.
    (d) Special Requirements Regarding Headquarters.--The examination 
of the missions, functions, and responsibilities of the management 
headquarters and headquarters support activities of the military 
departments and Defense Agencies shall include the following:
            (1) An assessment on the adequacy of the present 
        headquarters organization structure to efficiently and 
        effectively support the mission of the military departments and 
        the Defense Agencies.
            (2) An assessment of options to reduce the number of 
        personnel assigned to such headquarters staffs and headquarters 
        support activities.
            (3) An assessment of the extent of unnecessary duplication 
        of functions between the Office of the Secretary of Defense and 
        headquarters staffs of the military departments and the Defense 
        Agencies.
            (4) An assessment of the possible benefits that could be 
        derived from further functional consolidation between the 
        civilian secretariat of the military departments and the staffs 
        of the military service chiefs.
            (5) An assessment of the possible benefits that could be 
        derived from reducing the number of civilian officers in the 
        military departments who are appointed by and with the advice 
        and consent of the Senate.
    (e) Special Requirements Regarding Acquisition Organizations.--The 
examination of the missions, functions, and responsibilities of the 
various acquisition organizations of the Department of Defense shall 
include the following:
            (1) An assessment of benefits of consolidation or selected 
        elimination of Department of Defense acquisition organizations.
            (2) An assessment of the opportunities to streamline the 
        defense acquisition infrastructure that were realized as a 
        result of the enactment of the Federal Acquisition Streamlining 
        Act of 1994 (Public Law 103-355) and the Clinger-Cohen Act of 
        1996 (divisions D and E of Public Law 104-106) or as result of 
        other acquisition reform initiatives implemented 
        administratively during the period from 1993 through 1997.
            (3) An assessment of such other defense acquisition 
        infrastructure streamlining or restructuring options as the 
        Commission considers appropriate.
    (f) Cooperation From Government Officials.--In carrying out its 
duties, the Commission should receive the full and timely cooperation 
of the Secretary of Defense and any other United States Government 
official responsible for providing the Commission with analyses, 
briefings, and other information necessary for the fulfillment of its 
responsibilities.

SEC. 503. REPORTS.

    The Commission shall submit to Congress an interim report 
containing its preliminary findings and conclusions not later than 
March 15, 1998, and a final report containing its findings and 
conclusions not later than July 15, 1998.

SEC. 504. POWERS.

    (a) Hearings.--The Commission or, at its direction, any panel or 
member of the Commission, may, for the purpose of carrying out the 
provisions of this title, hold hearings, sit and act at times and 
places, take testimony, receive evidence, and administer oaths to the 
extent that the Commission or any panel or member considers advisable.
    (b) Information.--The Commission may secure directly from the 
Department of Defense and any other Federal department or agency 
information that the Commission considers necessary to enable the 
Commission to carry out its responsibilities under this title.

SEC. 505. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet at the call of the 
Chairman.
    (b) Quorum.--(1) Five members of the Commission shall constitute a 
quorum other than for the purpose of holding hearings.
    (2) The Commission shall act by resolution agreed to by a majority 
of the members of the Commission.
    (c) Commission.--The Commission may establish panels composed of 
less than full membership of the Commission for the purpose of carrying 
out the Commission's duties. The actions of each such panel shall be 
subject to the review and control of the Commission. Any findings and 
determinations made by such a panel shall not be considered the 
findings and determinations of the Commission unless approved by the 
Commission.
    (d) Authority of Individuals To Act for Commission.--Any member or 
agent of the Commission may, if authorized by the Commission, take any 
action which the Commission is authorized to take under this title.

SEC. 506. PERSONNEL MATTERS.

    (a) Pay of Members.--Members of the Commission shall serve without 
pay by reason of their work on the Commission.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--(1) The chairman of the Commission may, without regard 
to the provisions of title 5, United States Code, governing 
appointments in the competitive service, appoint a staff director and 
such additional personnel as may be necessary to enable the Commission 
to perform its duties. The appointment of a staff director shall be 
subject to the approval of the Commission.
    (2) The chairman of the Commission may fix the pay of the staff 
director and other personnel without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of title 5, United States 
Code, relating to classification of positions and General Schedule pay 
rates, except that the rate of pay fixed under this paragraph for the 
staff director may not exceed the rate payable for level V of the 
Executive Schedule under section 5316 of such title and the rate of pay 
for other personnel may not exceed the maximum rate payable for grade 
GS-15 of the General Schedule.
    (d) Detail of Government Employees.--Upon request of the chairman 
of the Commission, the head of any Federal department or agency may 
detail, on a nonreimbursable basis, any personnel of that department or 
agency to the Commission to assist it in carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--The 
chairman of the Commission may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay payable for level V of the Executive Schedule under 
section 5316 of such title.

SEC. 507. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal and Printing Services.--The Commission may use the 
United States mails and obtain printing and binding services in the 
same manner and under the same conditions as other departments and 
agencies of the Federal Government.
    (b) Miscellaneous Administrative and Support Services.--The 
Secretary of Defense shall furnish the Commission, on a reimbursable 
basis, any administrative and support services requested by the 
Commission.

SEC. 508. FUNDING.

    Funds for activities of the Commission shall be provided from 
amounts appropriated for the Department of Defense for operation and 
maintenance for Defense-wide activities for fiscal year 1998. Upon 
receipt of a written certification from the Chairman of the Commission 
specifying the funds required for the activities of the Commission, the 
Secretary of Defense shall promptly disburse to the Commission, from 
such amounts, the funds required by the Commission as stated in such 
certification.

SEC. 509. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the date of the 
submission of its final report under section 503.