[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4546 Enrolled Bill (ENR)]

        H.R.4546

                      One Hundred Seventh Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
          the twenty-third day of January, two thousand and two


                                 An Act


 
To authorize appropriations for fiscal year 2003 for military activities 
of the Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe personnel strengths 
   for such fiscal year for the Armed Forces, and for other purposes.

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

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Bob Stump National 
Defense Authorization Act for Fiscal Year 2003''.
    (b) Findings.--Congress makes the following findings:
        (1) Representative Bob Stump of Arizona was elected to the 
    House of Representatives in 1976 for service in the 95th Congress, 
    after serving in the Arizona legislature for 18 years and serving 
    as President of the Arizona State Senate from 1975 to 1976, and he 
    has been reelected to each subsequent Congress.
        (2) A World War II combat veteran, Representative Stump entered 
    service in the United States Navy in 1943, just after his 16th 
    birthday, and served aboard the USS LUNGA POINT and the USS TULAGI, 
    which participated in the invasions of Luzon, Iwo Jima, and 
    Okinawa.
        (3) Representative Stump was elected to the Committee on Armed 
    Services in 1978 and has served on nearly all of its subcommittees 
    and panels during 25 years of distinguished service on the 
    committee. He has served as chairman of the committee during the 
    107th Congress and has championed United States national security 
    as the paramount function of the Federal Government.
        (4) Also serving on the Committee on Veterans' Affairs of the 
    House of Representatives, chairing that committee from 1995 to 
    2000, and serving on the Permanent Select Committee on Intelligence 
    of the House of Representatives, including service as the ranking 
    minority member in 1985 and 1986, Representative Stump has 
    dedicated his entire congressional career to steadfastly supporting 
    America's courageous men and women in uniform both on and off the 
    battlefield.
        (5) Representative Stump's tireless efforts on behalf of those 
    in the military and veterans have been recognized with numerous 
    awards for outstanding service from active duty and reserve 
    military, veterans' service, military retiree, and industry 
    organizations.
        (6) During his tenure as chairman of the Committee on Armed 
    Services of the House of Representatives, Representative Stump 
    has--
            (A) overseen the largest sustained increase to defense 
        spending since the Reagan administration;
            (B) led efforts to improve the quality of military life, 
        including passage of the largest military pay raise since 1982;
            (C) supported military retirees, including efforts to 
        reverse concurrent receipt law and to save the Armed Forces 
        Retirement Homes;
            (D) championed military readiness by defending military 
        access to critical training facilities such Vieques, Puerto 
        Rico, expanding the National Training Center at Ft. Irwin, 
        California, and working to restore balance between 
        environmental concerns and military readiness requirements;
            (E) reinvigorated efforts to defend America against 
        ballistic missiles by supporting an increase in fiscal year 
        2002 of nearly 50 percent above the fiscal year 2001 level for 
        missile defense programs; and
            (F) honored America's war heroes by expanding Arlington 
        National Cemetery, establishing a site for the Air Force 
        Memorial, and assuring construction of the World War II 
        Memorial.
        (7) In recognition of his long record of accomplishments in 
    enhancing the national security of the United States and his 
    legislative victories on behalf of active duty service members, 
    reservists, guardsmen, and veterans, it is altogether fitting and 
    proper that this Act be named in honor of Representative Bob Stump 
    of Arizona, as provided in subsection (a).

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

    (a) Divisions.--This Act is organized into three divisions as 
follows:
        (1) Division A--Department of Defense Authorizations.
        (2) Division B--Military Construction Authorizations.
        (3) Division C--Department of Energy National Security 
    Authorizations and Other Authorizations.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:
Sec. 1. Short title; findings.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources. 
Sec. 112. Report on impact of Army aviation modernization plan on the 
          Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                        Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
          destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
          Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
          fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
          pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
          and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Defense health programs.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
          responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
          Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the objective 
          force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
          Systems non-line-of-sight cannon indirect fire capability for 
          the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
          program.
Sec. 218. Littoral combat ship program.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
          programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
          development, test, and evaluation related to system 
          improvements of programs transferred to military departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
          Area Defense Program pending submission of required life-cycle 
          cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
          Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
          Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
          interceptors.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
          facilities.
Sec. 233. Uniform financial management system for Department of Defense 
          test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                        Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
          laboratories.
Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
          contractors to submit proposals potentially beneficial for 
          combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
          Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
          advanced technology achievements and additional authority of 
          military departments and Defense Agencies to award prizes for 
          achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
          signatures intelligence capabilities of the United States 
          through incorporation of results of basic research on sensors.

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
          environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
          regarding unexploded ordnance, discarded military munitions, 
          and munitions constituents.
Sec. 313. Authority to carry out construction projects for environmental 
          responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military readiness 
          activities.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
          operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
          of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
          recreation programs.
Sec. 324. Rebate agreements under the special supplemental food program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
          for conversion of commercial or industrial type functions to 
          contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
          guard functions to meet increased requirements since September 
          11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level maintenance 
          and repair workloads that were performed at closed or 
          realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
          sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
          at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies affected 
          by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation provided 
          for teachers in the Department of Defense Overseas Dependents' 
          Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
          technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
          information assurance-enabled information technology products.
Sec. 353. Installation and connection policy and procedures regarding 
          Defense Switch Network.

                        Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
          operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
          fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
          and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
          modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, 
          historical artifacts, and condemned or obsolete combat 
          materiel.

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
          active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
          numbers of general and flag officers in certain grades.
Sec. 406. Increase in authorized strengths for Marine Corps officers on 
          active duty in the grade of colonel.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitation on non-dual status technicians.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of good-of-the-service waiver authority for officers 
          appointed to a Reserve Chief or Guard Director position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
          grant a waiver of required completion or sequencing for joint 
          professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
          aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
          requirement for retirement in grade for officers in grades 
          above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending review 
          of a recommendation for removal by a board of inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
          and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
          service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
          reserve component Special Operations Forces personnel engaged 
          in humanitarian assistance activities relating to clearing of 
          landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
          terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
          personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
          general for certain reserve component brigadier generals who 
          do not otherwise qualify for consideration for promotion under 
          the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
          mandatory retirement or separation of reserve component 
          officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
          national service.
Sec. 532. Authority for phased increase to 4,400 in authorized strengths 
          for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
          participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
          participants for benefits under student loan repayment 
          program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
          Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
          awarded for Operation Frequent Wind to Vietnam Service Medal.
Sec. 543. Korea Defense Service Medal.
Sec. 544. Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
          Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
          responsible for review and correction of military records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
          as proctors for administration of Armed Services Vocational 
          Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
          the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
          Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
          military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
          enlisted personnel for rest and recuperation absence upon 
          extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
          ordered to a nonforeign duty station outside continental 
          United States.

                           Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
          separate courses of basic instruction for judge advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
          Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
          components in emergency response to the terrorist attacks of 
          September 11, 2001.

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
          moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted personnel 
          occupying single Government quarters without adequate 
          availability of meals.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
          authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
          nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, 
          and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
          in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
          performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
          reserve service required for eligibility for retired pay for 
          non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
          extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
          living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
          program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
          limitations on claims against the Government for military 
          personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
          uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
          members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
          Bill arising from failure to participate satisfactorily in 
          military service to be considered debts owed to the United 
          States.
Sec. 643. Technical adjustments to authority for certain members to 
          transfer educational assistance under Montgomery GI Bill to 
          dependents.

                        Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
          members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
          at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
          37.

                    TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
          inpatient mental health care for medicare-eligible 
          beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote 
          locations after departure of sponsors for unaccompanied 
          assignments and eligibility of dependents of reserve component 
          members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program 
          benefits after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
          Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for 
          members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
          services contracts for the performance of health care 
          responsibilities at locations other than military medical 
          treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
          TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
          Veterans Affairs.

                           Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
          TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and 
          health care resources following domestic acts of terrorism or 
          domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
          Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
          and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
          resources.

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

              Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
          defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
          award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

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

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
          to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
          and procedures applicable to the civilian acquisition 
          workforce.
Sec. 814. Past performance given significant weight in renewal of 
          procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
          organizations or economic enterprises carrying out procurement 
          technical assistance programs in two or more service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
          and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
          requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
          survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

        Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
          negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
          defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
          contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General reviews 
          of the requirements.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
          tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services for 
          military installations.
Sec. 828. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
          resource shortfall for radiation-hardened electronics.

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
          administration of duties relating to homeland defense and 
          combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
          States.

                           Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
          future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
          and joint opposing forces.

                        Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of Department 
          of Defense Consequence Management Program Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
          2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
          fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
          enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
          exposure of personnel to pecuniary liability for loss of 
          Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
          suspense accounts and resolution of certain check issuance 
          discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
          or combating terrorism programs of the Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
          reserve service.
Sec. 1022. Annual long-range plan for the construction of naval vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of a 
          Navy ship with a version of the 155-millimeter Advanced Gun 
          System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
          ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
          structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                      Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
          delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply buried 
          targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
          other weapons.

                           Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
          applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress be 
          accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations conducted 
          as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
          at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as Defense 
          Access Road.

              Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
          aircraft and aircraft parts for use in responding to oil 
          spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
          security requirements; continued applicability of expiring 
          Governmentwide information security requirements to the 
          Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities abroad.

                        Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
          legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained by 
          Department of Defense for identification of human remains.
Sec. 1064. Enhanced authority to obtain foreign language services during 
          periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
          societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
          and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women Airforce 
          Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
          of Defense program to commemorate 50th anniversary of the 
          Korean War.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
          employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum 
          severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
          eligibility.
Sec. 1104. Certification for Department of Defense professional 
          accounting positions.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
          coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
          countries participating in NATO Partnership for Peace program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
          Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
          monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
          integration of all United States nonproliferation activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
          and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
          United States and China on cooperation in science and 
          technology.
Sec. 1208. Extension of certain counterproliferation activities and 
          programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
          contributions by foreign persons to efforts by countries of 
          proliferation concern to obtain weapons of mass destruction 
          and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
          exchanges between the Armed Forces of the United States and 
          the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
          under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
          material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
          reduction in states of the former Soviet Union.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
          homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of military 
          installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in supporting 
          homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
          local first responders.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
          the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of appropriations 
          reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
          2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
          2001 project.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
          2002 projects.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
          construction of public road near Aviano Air Base, Italy, to 
          replace road closed for force protection purposes.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 
          2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
          1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
          1997 project.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
          projects.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Modification of alternative authority for acquisition and 
          improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
          construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing construction 
          overseas.
Sec. 2805. Availability of energy cost savings realized at military 
          installations.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
          conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
          term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
          installations to be closed to persons who construct or provide 
          military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
          establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
          National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
          Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
          Virginia.

                        Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
          Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
          Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
          Quantico, and Prince William Forest Park, Virginia.

                     Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
          California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
          Nevada.

                        Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
          capacity, Marine Corps Base, Camp Lejeune, North Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
          related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
          closure list.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3141. Annual assessments and reports to the President and Congress 
          regarding the condition of the United States nuclear weapons 
          stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for resumption 
          by the United States of underground nuclear weapons tests.
Sec. 3143. Requirements for specific request for new or modified nuclear 
          weapons.
Sec. 3144. Database to track notification and resolution phases of 
          Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
          Penetrator program pending submission of report.

                    Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
          Department of Defense's Cooperative Threat Reduction program 
          relating to elimination of weapons grade plutonium production 
          in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
          programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
          protection, control, and accounting programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
          radiological, chemical, or biological weapons.
Sec. 3155. Cooperative program on research, development, and 
          demonstration of technology regarding nuclear or radiological 
          terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
          Control, and Accounting program of the Department of Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials and 
          security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
          materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
          Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
          enriched uranium and plutonium.

                        Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
          nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
          engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
          safety, and security of the United States nuclear stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
          accelerate the reduction of environmental risks and challenges 
          posed by the legacy of the Cold War.

 Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
          Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
          materials at Savannah River Site.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                   TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
          applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
          vessels.

              TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
          activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
          Department of Energy.

SEC. 3. 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 Armed Services and the Committee on 
    Appropriations of the House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS
                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. Defense Inspector General.
Sec. 106. Chemical Agents and Munitions Destruction, Defense.
Sec. 107. Defense health programs.

                        Subtitle B--Army Programs

Sec. 111. Pilot program on sales of manufactured articles and services 
          of certain Army industrial facilities without regard to 
          availability from domestic sources.
Sec. 112. Report on impact of Army aviation modernization plan on the 
          Army National Guard.
Sec. 113. Family of Medium Tactical Vehicles.

                        Subtitle C--Navy Programs

Sec. 121. Extension of multiyear procurement authority for DDG-51 class 
          destroyers.
Sec. 122. Sense of Congress on scope of conversion program for 
          Ticonderoga-class cruisers.
Sec. 123. Continuation of contract for operation of Champion-class T-5 
          fuel tanker vessels.

                     Subtitle D--Air Force Programs

Sec. 131. Multiyear procurement authority for C-130J aircraft program.
Sec. 132. Pathfinder programs.
Sec. 133. Leases for tanker aircraft under multiyear aircraft-lease 
          pilot program.

                       Subtitle E--Other Programs

Sec. 141. Destruction of existing stockpile of lethal chemical agents 
          and munitions.
Sec. 142. Report on unmanned aerial vehicle systems.
Sec. 143. Global Information Grid system.

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Army as follows:
        (1) For aircraft, $2,186,296,000.
        (2) For missiles, $1,152,299,000.
        (3) For weapons and tracked combat vehicles, $2,276,751,000.
        (4) For ammunition, $1,229,533,000.
        (5) For other procurement, $5,857,814,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2003 for procurement for the Navy as follows:
        (1) For aircraft, $8,979,275,000.
        (2) For weapons, including missiles and torpedoes, 
    $2,375,349,000.
        (3) For shipbuilding and conversion, $9,111,023,000.
        (4) For other procurement, $4,494,754,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2003 for procurement for the Marine Corps in the amount 
of $1,355,491,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2003 for procurement of ammunition 
for the Navy and the Marine Corps in the amount of $1,170,750,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Air Force as follows:
        (1) For aircraft, $12,676,505,000.
        (2) For missiles, $3,504,139,000.
        (3) For ammunition, $1,290,764,000.
        (4) For other procurement, $10,846,048,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for Defense-wide procurement in the amount of $3,691,604,000.

SEC. 105. DEFENSE INSPECTOR GENERAL.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for procurement for the Inspector General of the Department of Defense 
in the amount of $2,000,000.

SEC. 106. CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE.

    There is hereby authorized to be appropriated for fiscal year 2003 
the amount of $1,490,199,000 for--
        (1) the destruction of lethal chemical agents and munitions in 
    accordance with section 1412 of the Department of Defense 
    Authorization Act, 1986 (50 U.S.C. 1521); and
        (2) the destruction of chemical warfare materiel of the United 
    States that is not covered by section 1412 of such Act.

SEC. 107. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the Department of Defense for procurement for carrying out health 
care programs, projects, and activities of the Department of Defense in 
the total amount of $278,742,000.

                       Subtitle B--Army Programs

SEC. 111. PILOT PROGRAM ON SALES OF MANUFACTURED ARTICLES AND SERVICES 
              OF CERTAIN ARMY INDUSTRIAL FACILITIES WITHOUT REGARD TO 
              AVAILABILITY FROM DOMESTIC SOURCES.

    (a) Extension of Program.--Subsection (a) of section 141 of the 
National Defense Authorization Act for Fiscal Year 1998 (Public Law 
105-85; 10 U.S.C. 4543 note) is amended by striking ``through 2002'' in 
the first sentence and inserting ``through 2004''.
    (b) Use of Overhead Funds Made Surplus by Sales.--Such section is 
further amended--
        (1) by striking subsection (d);
        (2) by redesignating subsection (c) as subsection (d); and
        (3) by inserting after subsection (b) the following new 
    subsection (c):
    ``(c) Transfer of Certain Sums.--For each Army industrial facility 
participating in the pilot program that sells manufactured articles and 
services in a total amount in excess of $20,000,000 in any fiscal year, 
the amount equal to one-half of one percent of such total amount shall 
be transferred from the sums in the Army Working Capital Fund for 
unutilized plant capacity to appropriations available for the following 
fiscal year for the demilitarization of conventional ammunition by the 
Army.''.
    (c) Update of Inspector General's Review.--The Inspector General of 
the Department of Defense shall review the experience under the pilot 
program carried out under such section 141 and, not later than July 1, 
2003, submit to Congress a report on the results of the review. The 
report shall contain the views, information, and recommendations called 
for under subsection (d) of such section (as redesignated by subsection 
(b)(2)). In carrying out the review and preparing the report, the 
Inspector General shall take into consideration the report submitted to 
Congress under such subsection (as so redesignated).

SEC. 112. REPORT ON IMPACT OF ARMY AVIATION MODERNIZATION PLAN ON THE 
              ARMY NATIONAL GUARD.

    (a) Report by Chief of the National Guard Bureau.--The Chief of the 
National Guard Bureau shall submit to the Chief of Staff of the Army a 
report on the requirements for Army National Guard aviation. The report 
shall include the following:
        (1) An analysis of the impact of the Army Aviation 
    Modernization Plan on the ability of the Army National Guard to 
    conduct its aviation missions.
        (2) The plan under that aviation modernization plan for the 
    transfer of aircraft from the active component of the Army to the 
    Army reserve components, including a timeline for those transfers.
        (3) The progress, as of January 1, 2003, in carrying out the 
    transfers under the plan referred to in paragraph (2).
        (4) An evaluation of the suitability and cost effectiveness of 
    existing Commercial Off The Shelf light utility helicopters for 
    performance of Army National Guard utility aviation missions.
    (b) Comments and Recommendations by Chief of Staff of the Army.--
Not later than February 1, 2003, the Chief of Staff of the Army shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives the report 
received under subsection (a), together with any comments and 
recommendations that the Chief of Staff considers appropriate on the 
matters covered in the report.

SEC. 113. FAMILY OF MEDIUM TACTICAL VEHICLES.

    (a) Multiyear Procurement Authority.--Beginning with the fiscal 
year 2003 program year, the Secretary of the Army may, in accordance 
with section 2306b of title 10, United States Code, enter into a 
multiyear contract for the procurement of vehicles under the Family of 
Medium Tactical Vehicles program, subject to subsection (b).
    (b) Limitation.--The Secretary of the Army may not enter into a 
multiyear contract for the procurement of vehicles in the Family of 
Medium Tactical Vehicles authorized by subsection (a) until the 
Secretary submits to the congressional defense committees a written 
certification that--
        (1) all key performance parameters required in the initial 
    operational test and evaluation for that program have been met; and
        (2) the total cost through the use of such multiyear contract 
    of the procurement of the number of vehicles to be procured under 
    such contract is at least 10 percent less than the total cost of 
    the procurement of the same number of such vehicles through the use 
    of successive one-year contracts.
    (c) Waiver Authority.--The Secretary of Defense may waive 
subsection (b)(2) if the Secretary--
        (1) determines that using a multiyear contract for the 
    procurement of vehicles under the Family of Medium Tactical 
    Vehicles program is in the national security interests of the 
    United States;
        (2) certifies that the Army cannot achieve the savings 
    specified in subsection (b)(2); and
        (3) submits to the congressional defense committees, in 
    writing, a notification of the waiver together with a report 
    describing the reasons why the use of a multiyear contract for such 
    procurement is in the national security interests of the United 
    States and why the Army cannot achieve a 10 percent savings of the 
    total anticipated costs of carrying out the program through a 
    multiyear contract.

                       Subtitle C--Navy Programs

SEC. 121. EXTENSION OF MULTIYEAR PROCUREMENT AUTHORITY FOR DDG-51 CLASS 
              DESTROYERS.

    Section 122(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2446), as amended by section 
122 of Public Law 106-65 (113 Stat. 534) and section 122(a) of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-24), is 
further amended by striking ``October 1, 2005'' in the first sentence 
and inserting ``October 1, 2007''.

SEC. 122. SENSE OF CONGRESS ON SCOPE OF CONVERSION PROGRAM FOR 
              TICONDEROGA-CLASS CRUISERS.

    It is the sense of Congress that the Secretary of the Navy should 
maintain the scope of the conversion program for the Ticonderoga class 
of cruisers so that the program--
        (1) covers all 27 ships in that class of cruisers; and
        (2) provides for modernizing each of those ships to include an 
    appropriate mix of upgrades to ships' capabilities for theater 
    missile defense, naval fire support, and air dominance.

SEC. 123. CONTINUATION OF CONTRACT FOR OPERATION OF CHAMPION-CLASS T-5 
              FUEL TANKER VESSELS.

    The Department of the Navy contract in effect on the date of the 
enactment of this Act for the operation of five Champion-class T-5 fuel 
tanker vessels shall continue in effect with respect to the operation 
of each such vessel until the completion of the term of the contract 
or, if sooner for any such vessel, until the vessel is no longer used 
for purposes of the Military Sealift Command or any other Navy purpose.

                     Subtitle D--Air Force Programs

SEC. 131. MULTIYEAR PROCUREMENT AUTHORITY FOR C-130J AIRCRAFT PROGRAM.

    (a) Multiyear Authority.--Beginning with the fiscal year 2003 
program year, the Secretary of the Air Force may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract for procurement of up to 40 C-130J aircraft in the CC-130J 
configuration and up to 24 C-130J aircraft in the KC-130J 
configuration. Notwithstanding subsection (k) of such section, such a 
contract may be for a period of six program years.
    (b) Limitation.--The Secretary of the Air Force may not enter into 
a contract authorized by subsection (a) until--
        (1) testing of the CC-130J aircraft for qualification for use 
    in assault operations has been completed by the Air Force Flight 
    Test Center; and
        (2) Block 5.3 software upgrades have been installed on all C-
    130J and CC-130J aircraft in the inventory of the Air Force.

SEC. 132. PATHFINDER PROGRAMS.

    (a) Pathfinder Programs.--Not later than February 1, 2003, the 
Secretary of the Air Force shall submit to the congressional defense 
committees a list of Air Force programs that the Secretary has 
designated as acquisition reform pathfinder programs (hereinafter in 
this section referred to as ``pathfinder programs'').
    (b) Oversight of Pathfinder Programs.--The Secretary of Defense 
shall ensure that the Under Secretary of Defense for Acquisition, 
Technology and Logistics, the Director of Operational Test and 
Evaluation, and the Joint Requirements Oversight Council maintain 
oversight over each pathfinder program that qualifies as a major 
defense acquisition program under section 2430 of title 10, United 
States Code.
    (c) Report on Pathfinder Programs.--(1) Not later than March 15, 
2003, the Secretary of the Air Force shall submit to the congressional 
defense committees a report on pathfinder programs. For each such 
program, the report shall include a description of the following:
        (A) The management approach for that program and how that 
    approach will result in a disciplined, affordable and well-managed 
    acquisition program.
        (B) The acquisition strategy for that program and how that 
    acquisition strategy responds to approved operational requirements.
        (C) The test and evaluation plan for that program and how that 
    plan will provide adequate assessment of each pathfinder program.
        (D) The manner in which the acquisition plan for that program 
    considers cost, schedule, and technical risk.
        (E) The manner in which any innovative business practices 
    developed as a result of participation in the program could be 
    applied to other acquisition programs, and any impediments to 
    application of such practices to other programs.
    (2) For each such program, the report shall also set forth the 
following:
        (A) The manner in which the Under Secretary of Defense for 
    Acquisition, Technology, and Logistics will be involved in the 
    development, oversight, and approval of the program's management 
    approach, acquisition strategy, and acquisition approach.
        (B) The manner in which the Director of Operational Test and 
    Evaluation will be involved in the development, oversight, and 
    approval of the program's test and evaluation plan.
        (C) The manner in which an independent cost estimate for the 
    program will be developed by the Office of the Secretary of 
    Defense.
    (d) Applicability of Spiral Development Section.--Nothing in this 
section shall be construed to exempt any pathfinder program from the 
application of any provision of section 803(c).

SEC. 133. LEASES FOR TANKER AIRCRAFT UNDER MULTIYEAR AIRCRAFT-LEASE 
              PILOT PROGRAM.

    The Secretary of the Air Force may not enter into a lease for the 
acquisition of tanker aircraft for the Air Force under section 8159 of 
the Department of Defense Appropriations Act, 2002 (division A of 
Public Law 107-117; 115 Stat. 2284; 10 U.S.C. 2401a note) until--
        (1) the Secretary submits the report specified in subsection 
    (c)(6) of such section; and
        (2) either--
            (A) authorization and appropriation of funds necessary to 
        enter into such lease are provided by law; or
            (B) a new start reprogramming notification for the funds 
        necessary to enter into such lease has been submitted in 
        accordance with established procedures.

                       Subtitle E--Other Programs

SEC. 141. DESTRUCTION OF EXISTING STOCKPILE OF LETHAL CHEMICAL AGENTS 
              AND MUNITIONS.

    (a) Program Management.--The Secretary of Defense shall ensure that 
the program for destruction of the United States stockpile of lethal 
chemical agents and munitions is managed as a major defense acquisition 
program (as defined in section 2430 of title 10, United States Code) in 
accordance with the essential elements of such programs as may be 
determined by the Secretary.
    (b) Requirement for Under Secretary of Defense (Comptroller) Annual 
Certification.--Beginning with respect to the budget request for fiscal 
year 2004, the Under Secretary of Defense (Comptroller) shall submit to 
the congressional defense committees on an annual basis a certification 
that the budget request for the chemical agents and munitions 
destruction program has been submitted in accordance with the 
requirements of section 1412 of the Department of Defense Authorization 
Act, 1986 (50 U.S.C. 1521).

SEC. 142. REPORT ON UNMANNED AERIAL VEHICLE SYSTEMS.

    (a) Report.--Not later than January 1, 2003, the Secretary of 
Defense shall submit to Congress a report on unmanned aerial vehicle 
systems of the Department of Defense.
    (b) Matters To Be Included Concerning Unmanned Aerial Vehicle 
Systems.--The Secretary shall include in the report under subsection 
(a) the following, shown for each system referred to in that 
subsection:
        (1) A description of the infrastructure that the Department of 
    Defense has (or is planning) for the system.
        (2) A description of the operational requirements document 
    (ORD) for the system.
        (3) A description of the physical infrastructure of the 
    Department for training and basing.
        (4) A description of the manner in which the Department is 
    interfacing with the industrial base.
        (5) A description of the acquisition plan for the system.
        (6) A description of the process by which the Department will 
    ensure that any unmanned aerial vehicle program proceeding past the 
    science and technology stage does so only as part of an integrated, 
    overall Office of the Secretary of Defense strategy for acquisition 
    of unmanned aerial vehicles, such as that provided in the approved 
    Office of the Secretary of Defense unmanned aerial vehicle roadmap.
    (c) Suggestions for Changes in Law.--The Secretary shall also 
include in the report under subsection (a) such suggestions as the 
Secretary considers appropriate for changes in law that would 
facilitate the way the Department acquires unmanned aerial vehicle 
systems.

SEC. 143. GLOBAL INFORMATION GRID SYSTEM.

    None of the funds authorized to be appropriated by this Act for the 
Department of Defense system known as the Global Information Grid may 
be obligated until the Secretary of Defense submits to the 
congressional defense committees a plan to provide that, as part of the 
bandwidth expansion efforts for the system, the system will be designed 
and configured so as to ensure that information transmitted within the 
system is secure and protected from unauthorized access.

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

               Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
Sec. 202. Amount for defense science and technology.
Sec. 203. Defense health programs.

     Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. RAH-66 Comanche aircraft program.
Sec. 212. Extension of requirements relating to management 
          responsibility for naval mine countermeasures programs.
Sec. 213. Revised requirements for plan for Manufacturing Technology 
          Program.
Sec. 214. Advanced SEAL Delivery System.
Sec. 215. Army experimentation program regarding design of the objective 
          force.
Sec. 216. Program to provide Army with self-propelled Future Combat 
          Systems non-line-of-sight cannon indirect fire capability for 
          the objective force.
Sec. 217. Prohibition on transfer of Medical Free Electron Laser 
          program.
Sec. 218. Littoral combat ship program.

                  Subtitle C--Ballistic Missile Defense

Sec. 221. Report requirements relating to ballistic missile defense 
          programs.
Sec. 222. Responsibility of Missile Defense Agency for research, 
          development, test, and evaluation related to system 
          improvements of programs transferred to military departments.
Sec. 223. Limitation on obligation of funds for Theater High Altitude 
          Area Defense Program pending submission of required life-cycle 
          cost information.
Sec. 224. Provision of information on flight testing of Ground-based 
          Midcourse National Missile Defense system.
Sec. 225. References to new name for Ballistic Missile Defense 
          Organization.
Sec. 226. One-year limitation on use of funds for nuclear armed 
          interceptors.

   Subtitle D--Improved Management of Department of Defense Test and 
                          Evaluation Facilities

Sec. 231. Department of Defense Test Resource Management Center.
Sec. 232. Objective for institutional funding of test and evaluation 
          facilities.
Sec. 233. Uniform financial management system for Department of Defense 
          test and evaluation facilities.
Sec. 234. Test and evaluation workforce improvements.
Sec. 235. Compliance with testing requirements.

                        Subtitle E--Other Matters

Sec. 241. Pilot programs for revitalizing Department of Defense 
          laboratories.
Sec. 242. Technology Transition Initiative.
Sec. 243. Defense Acquisition Challenge Program.
Sec. 244. Encouragement of small businesses and nontraditional defense 
          contractors to submit proposals potentially beneficial for 
          combating terrorism.
Sec. 245. Vehicle fuel cell program.
Sec. 246. Defense nanotechnology research and development program.
Sec. 247. Activities of the Defense Experimental Program to Stimulate 
          Competitive Research.
Sec. 248. Four-year extension of authority of DARPA to award prizes for 
          advanced technology achievements and additional authority of 
          military departments and Defense Agencies to award prizes for 
          achievements in promoting education.
Sec. 249. Plan for five-year program for enhancement of measurement and 
          signatures intelligence capabilities of the United States 
          through incorporation of results of basic research on sensors.

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the use of the Department of Defense for research, development, 
test, and evaluation as follows:
        (1) For the Army, $7,158,256,000.
        (2) For the Navy, $13,244,164,000.
        (3) For the Air Force, $18,337,078,000.
        (4) For Defense-wide activities, $17,970,653,000, of which 
    $311,554,000 is authorized for the Director of Operational Test and 
    Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2003.--Of the amounts authorized to be appropriated 
by section 201, $10,384,658,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense category 6.1, 6.2, or 6.3.

SEC. 203. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the Department of Defense for research, development, test, and 
evaluation for carrying out health care programs, projects, and 
activities of the Department of Defense in the total amount of 
$67,214,000.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. RAH-66 COMANCHE AIRCRAFT PROGRAM.

    (a) Reports Required.--Not later than the end of each fiscal 
quarter of fiscal year 2003, the Secretary of the Army shall submit to 
the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on the progress 
of the restructured engineering and manufacturing development phase of 
the RAH-66 Comanche aircraft program.
    (b) Content.--The report shall include, at a minimum, the 
information relating to the program that the program manager provides 
to the Assistant Secretary of the Army for Acquisition, Logistics, and 
Technology with respect to--
        (1) cost, including funding and contracts;
        (2) schedule;
        (3) performance;
        (4) which goals are being met and which are not being met;
        (5) milestones events accomplished; and
        (6) significant events accomplished.

SEC. 212. EXTENSION OF REQUIREMENTS RELATING TO MANAGEMENT 
              RESPONSIBILITY FOR NAVAL MINE COUNTERMEASURES PROGRAMS.

    (a) In General.--Section 216 of the National Defense Authorization 
Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
1317), as most recently amended by section 211 of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (Public Law 
105-261; 112 Stat. 1946), is amended--
        (1) in subsection (a), by striking ``through 2003'' and 
    inserting ``through 2008'';
        (2) in subsection (b)--
            (A) by striking ``and'' at the end of paragraph (2);
            (B) by redesignating paragraph (3) as paragraph (4); and
            (C) by inserting after paragraph (2) the following new 
        paragraph:
        ``(3) the responsibilities of the Joint Requirements Oversight 
    Council under subsections (b) and (d) of section 181 of title 10, 
    United States Code, have been carried out with respect to the 
    updated mine countermeasures master plan, the budget resources for 
    mine countermeasures for that fiscal year, and the future years 
    defense program for mine countermeasures; and''; and
        (3) by adding at the end the following new subsection:
    ``(c) Notification of Proposed Changes.--Upon certifying under 
subsection (b) with respect to a fiscal year, the Secretary may not 
carry out any change to the naval mine countermeasures master plan or 
the budget resources for mine countermeasures with respect to that 
fiscal year until after the Under Secretary of Defense for Acquisition, 
Technology, and Logistics submits to the congressional defense 
committees a notification of the proposed change. Such notification 
shall describe the nature of the proposed change, the effect of the 
proposed change on the naval mine countermeasures program or related 
programs with respect to that fiscal year, and the effect of the 
proposed change on the validity of the decision to certify under 
subsection (b) with respect to that fiscal year.''.
    (b) Technical Amendments.--Such section is further amended--
        (1) in subsection (a), by striking ``Under Secretary of Defense 
    for Acquisition and Technology'' and inserting ``Under Secretary of 
    Defense for Acquisition, Technology, and Logistics''; and
        (2) in subsection (b)(2)--
            (A) by striking ``multiyear'' and inserting ``future 
        years''; and
            (B) by striking ``section 114a'' and inserting ``section 
        221''.

SEC. 213. REVISED REQUIREMENTS FOR PLAN FOR MANUFACTURING TECHNOLOGY 
              PROGRAM.

    (a) Streamlined Contents of Plan.--Subsection (e) of section 2521 
of title 10, United States Code, is amended by striking ``prepare a 
five-year plan'' in paragraph (1) and all that follows through the end 
of subparagraph (B) of paragraph (2) and inserting the following: 
``prepare and maintain a five-year plan for the program.
    ``(2) The plan shall establish the following:
        ``(A) The overall manufacturing technology objectives, 
    milestones, priorities, and investment strategy for the program.
        ``(B) The specific objectives of, and funding for the program 
    by, each military department and each Defense Agency participating 
    in the program.''.
    (b) Biennial Report.--Such subsection is further amended in 
paragraph (3)--
        (1) by striking ``annually'' and inserting ``biennially''; and
        (2) by striking ``for a fiscal year'' and inserting ``for each 
    even-numbered fiscal year''.

SEC. 214. ADVANCED SEAL DELIVERY SYSTEM.

    (a) Transfer of Funds.--To the extent provided in appropriations 
Acts, the amount described in subsection (b) shall be transferred to 
amounts available for fiscal year 2003 for research, development, test, 
and evaluation, Defense-Wide, and shall be available only for research, 
development, test, and evaluation relating to the Advanced SEAL 
Delivery System.
    (b) Amount To Be Transferred.--The amount referred to in subsection 
(a) is the amount of $13,700,000 that was authorized and appropriated 
for fiscal year 2002 for procurement of the Advanced SEAL Delivery 
System within amounts for Procurement, Defense-Wide.
    (c) Transfer Authority in Addition to Other Authority.--The 
transfer authority provided by this section is in addition to any other 
transfer authority provided by law.

SEC. 215. ARMY EXPERIMENTATION PROGRAM REGARDING DESIGN OF THE 
              OBJECTIVE FORCE.

    (a) Requirement for Report.--Not later than March 31, 2003, the 
Secretary of the Army shall submit to Congress a report on the 
experimentation program regarding design of the objective force that is 
required by subsection (g) of section 113 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001, as added by 
section 113 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1029).
    (b) Budget Display.--Amounts provided for the experimentation 
program in the budget for fiscal year 2004 that is submitted to 
Congress under section 1105(a) of title 31, United States Code, shall 
be displayed as a distinct program element in that budget and in the 
supporting documentation submitted to Congress by the Secretary of 
Defense.

SEC. 216. PROGRAM TO PROVIDE ARMY WITH SELF-PROPELLED FUTURE COMBAT 
              SYSTEMS NON-LINE-OF-SIGHT CANNON INDIRECT FIRE CAPABILITY 
              FOR THE OBJECTIVE FORCE.

    (a) Program Required.--The Secretary of Defense shall carry out a 
program to provide the Army, not later than fiscal year 2008, with a 
self-propelled Future Combat Systems non-line-of-sight cannon indirect 
fire capability to equip the objective force.
    (b) Report.--(1) The Secretary shall submit to the congressional 
defense committees, at the same time that the President submits the 
budget for a fiscal year referred to in paragraph (2) to Congress under 
section 1105(a) of title 31, United States Code, a report on the 
investments proposed to be made with respect to non-line-of-sight 
indirect fire programs for the Army. The report shall--
        (A) identify the amount proposed for expenditures for the 
    Crusader artillery system program for that fiscal year in the 
    future-years defense program that was submitted to Congress in 2002 
    under section 221 of title 10, United States Code; and
        (B) specify--
            (i) the manner in which the amount provided in that budget 
        would be expended for improved non-line-of-sight indirect fire 
        capabilities for the Army; and
            (ii) the extent to which expending such amount in such 
        manner would improve such capabilities for the Army.
    (2) The requirement to submit a report under paragraph (1) shall 
apply with respect to budgets for fiscal years 2004, 2005, 2006, 2007, 
and 2008.
    (c) Objective Force Defined.--In this section, the term ``objective 
force'' has the meaning given such term in section 113(f)(2) of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398; 114 Stat. 1654A-24).
    (d) Funding.--Of the amount authorized to be appropriated by 
section 201(1) for the Army for research, development, test, and 
evaluation, $368,500,000 shall be used only to develop and field a 
self-propelled Future Combat Systems non-line-of-sight cannon indirect 
fire artillery system and a resupply vehicle with respect to such 
system.

SEC. 217. PROHIBITION ON TRANSFER OF MEDICAL FREE ELECTRON LASER 
              PROGRAM.

    The Medical Free Electron Laser Program (PE 0602227D8Z) may not be 
transferred from the Department of Defense to the National Institutes 
of Health, or to any other department or agency of the Federal 
Government.

SEC. 218. LITTORAL COMBAT SHIP PROGRAM.

    (a) Amount for Program.--Of the amount authorized to be 
appropriated by section 201(2) for research, development, test, and 
evaluation, Navy, $4,000,000 may be available in program element 
0603563N, relating to Ship Concept Advanced Design, for requirements 
development for the littoral combat ship.
    (b) Limitation on Obligation of Funds.--The Secretary of the Navy 
may not obligate any funds for the construction of a littoral combat 
ship until after the Secretary submits the report required by 
subsection (c).
    (c) Report on Milestone A Plan and Schedule.--(1) The Secretary of 
the Navy shall submit to the congressional defense committees, at the 
same time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code, a 
report on development of the littoral combat ship.
    (2) The report shall address the plan and schedule for fulfilling 
the requirements of Department of Defense Instruction 5000-series for a 
major defense acquisition Milestone A decision for initiation of 
concept and technology development for the littoral combat ship, 
including the following such requirements:
        (A) Consideration of technology issues.
        (B) Market research.
        (C) Validated mission need statement.
        (D) Analysis of multiple concepts.
        (E) Test and evaluation master plan (evaluation strategy only).
        (F) Exit criteria.
        (G) Acquisition decision memorandum.
    (3) The report shall include a discussion of the Secretary's 
acquisition strategy for development of the littoral combat ship.
    (d) Requirements for Acquisition Strategy.--The Secretary shall 
ensure that the acquisition strategy for development of the littoral 
combat ship includes the following:
        (1) A concept and technology demonstration phase that is robust 
    and, in a manner and on a schedule that will inform the Navy's 
    decisions on the concepts, technologies, and capabilities to be 
    incorporated into the initial design of the littoral combat ship 
    and into follow-on designs, capitalizes upon ongoing and planned 
    experiments, demonstrations, and evaluations of--
            (A) existing, prototype, and experimental hull forms and 
        platforms, including the hull forms and platforms relating to--
                (i) the Coastal Waters Interdiction Platform;
                (ii) the Hybrid Deep Vee Demonstrator;
                (iii) the Littoral Support Craft (Experimental);
                (iv) the High Speed Vessel;
                (v) surface effects ships;
                (vi) Research Vessel Triton;
                (vii) the SLICE ship;
                (viii) other existing, prototype, and experimental 
            craft that the Secretary considers to be appropriate; and
                (ix) other existing ships capable of carrying the 
            desired payload packages;
            (B) ship and combat systems components;
            (C) command, control, and communications systems;
            (D) intelligence, surveillance, and reconnaissance systems;
            (E) weapons systems; and
            (F) support systems.
        (2) A description of the experiments, demonstrations, and 
    evaluations that are needed for support of design and development 
    decisionmaking for mission modules to be employed on the littoral 
    combat ship, including the mission modules for--
            (A) anti-submarine warfare;
            (B) mine countermeasures;
            (C) anti-ship defense; and
            (D) any other missions that may be envisioned for the ship.
        (3) An identification of the experiments, demonstrations, and 
    evaluations that would need to be accomplished during the concept 
    and technology demonstration phase and those that would need to be 
    accomplished during the system development and demonstration phase 
    (after a major defense acquisition Milestone B decision to enter 
    that phase).
        (4) A description of the potential trade-offs between program 
    requirements and capabilities, and the methodology (including life 
    cycle cost as an independent variable, speed as an independent 
    variable, and other applicable program attributes), needed to 
    arrive at a design for a littoral combat ship that can be approved 
    (pursuant to a major defense acquisition Milestone B decision) for 
    entry into the system development and demonstration phase.
        (5) An analysis of the adequacy of existing and planned 
    platforms to test the littoral ship concept prior to construction 
    of a littoral combat ship.

                 Subtitle C--Ballistic Missile Defense

SEC. 221. REPORT REQUIREMENTS RELATING TO BALLISTIC MISSILE DEFENSE 
              PROGRAMS.

    (a) Annual Submission of Current Performance Goals and Development 
Baselines.--(1) The Secretary of Defense shall submit to the 
congressional defense committees each year the performance goals and 
development baselines--
        (A) for those ballistic missile defense systems under 
    development by the Missile Defense Agency that could be fielded; 
    and
        (B) for any other ballistic missile defense program or project 
    that has been designated by Congress as a special interest item.
    (2) Such performance goals and development baselines shall be 
provided for each block of each such system.
    (3) The performance goals and development baselines under paragraph 
(1) shall be included annually with the defense budget justification 
materials submitted in support of the President's budget submitted to 
Congress under section 1105 of title 31, United States Code.
    (b) RDT&E Budget Justification Materials.--The budget justification 
materials submitted to Congress for any fiscal year in support of a 
request for the authorization and appropriation of funds for research, 
development, test, and evaluation for ballistic missile defense systems 
shall include a funding profile for each block of each such system that 
could be fielded that reflects the development baseline submitted 
pursuant to subsection (a) for that fiscal year.
    (c) Review of MDA Criteria in Relation to Military Requirements.--
(1) The Joint Requirements Oversight Council established under section 
181 of title 10, United States Code, shall review cost, schedule, and 
performance criteria for missile defense programs of the Missile 
Defense Agency in order to assess the validity of those criteria in 
relation to military requirements.
    (2) The Secretary shall include the results of such review with the 
first annual statement of program goals submitted to the congressional 
defense committees under section 232(c) of the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 U.S.C. 
2431 note) after the date of the enactment of this Act.

SEC. 222. RESPONSIBILITY OF MISSILE DEFENSE AGENCY FOR RESEARCH, 
              DEVELOPMENT, TEST, AND EVALUATION RELATED TO SYSTEM 
              IMPROVEMENTS OF PROGRAMS TRANSFERRED TO MILITARY 
              DEPARTMENTS.

    Section 224(e) of title 10, United States Code, is amended--
        (1) by striking ``before a'' and inserting ``for each'';
        (2) by striking ``is''; and
        (3) by striking ``roles and responsibilities'' and all that 
    follows through the period at the end and inserting 
    ``responsibility for research, development, test, and evaluation 
    related to system improvements for that program remains with the 
    Director.''.

SEC. 223. LIMITATION ON OBLIGATION OF FUNDS FOR THEATER HIGH ALTITUDE 
              AREA DEFENSE PROGRAM PENDING SUBMISSION OF REQUIRED LIFE-
              CYCLE COST INFORMATION.

    (a) Limitation Pending Submission of Certification.--Not more than 
85 percent of the amount specified in subsection (b) may be obligated 
until the Secretary of Defense submits to the congressional defense 
committees the estimated total life-cycle cost of the Theater High 
Altitude Area Defense (THAAD) program as required for programs in 
engineering and manufacturing development by section 232(d) of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 10 U.S.C. 2431 note).
    (b) Funds Subject to Limitation.--Subsection (a) applies to the 
amount authorized to be appropriated for fiscal year 2003 for the 
Missile Defense Agency for the Theater High Altitude Area Defense 
(THAAD) program.

SEC. 224. PROVISION OF INFORMATION ON FLIGHT TESTING OF GROUND-BASED 
              MIDCOURSE NATIONAL MISSILE DEFENSE SYSTEM.

    (a) Information To Be Furnished to Congressional Committees.--The 
Director of the Missile Defense Agency shall provide to the 
congressional defense committees information on the results of each 
flight test of the Ground-based Midcourse national missile defense 
system.
    (b) Content.--Information provided under subsection (a) on the 
results of a flight test shall include the following matters:
        (1) A thorough discussion of the content and objectives of the 
    test.
        (2) For each such test objective, a statement regarding whether 
    or not the objective was achieved.
        (3) For any such test objective not achieved--
            (A) a thorough discussion describing the reasons that the 
        objective was not achieved; and
            (B) a discussion of any plans for future tests to achieve 
        that objective.

SEC. 225. REFERENCES TO NEW NAME FOR BALLISTIC MISSILE DEFENSE 
              ORGANIZATION.

    (a) In General.--Any reference to the Ballistic Missile Defense 
Organization in any provision of law, regulation, map, document, 
record, or other paper of the United States shall be considered to be a 
reference to the Missile Defense Agency.
    (b) Conforming Amendments.--(1) Title 10, United States Code, is 
amended as follows:
        (A) Sections 203, 223, and 224 are each amended by striking 
    ``Ballistic Missile Defense Organization'' each place it appears 
    and inserting ``Missile Defense Agency''.
        (B)(i) The heading for section 203 is amended to read as 
    follows:

``Sec. 203. Director of Missile Defense Agency''.

        (ii) The item relating to section 203 in the table of sections 
    at the beginning of subchapter II of chapter 8 is amended to read 
    as follows:

``203. Director of Missile Defense Agency.''.

    (2) The National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107) is amended as follows:
        (A) Sections 232 (115 Stat. 1037; 10 U.S.C. 2431 note), 233 
    (115 Stat. 1039), and 235 (115 Stat. 1041) are each amended by 
    striking ``Ballistic Missile Defense Organization'' each place it 
    appears and inserting ``Missile Defense Agency''.
        (B) The heading for section 232 is amended to read as follows:

``SEC. 232. PROGRAM ELEMENTS FOR MISSILE DEFENSE AGENCY.''.

    (3) Section 3132 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-455; 10 U.S.C. 2431 note) is amended--
        (A) by striking ``Ballistic Missile Defense Organization'' each 
    place it appears and inserting ``Missile Defense Agency'';
        (B) in subsection (c), by striking ``BMDO'' and inserting 
    ``MDA''; and
        (C) by amending the heading to read as follows:

``SEC. 3132. ENHANCED COOPERATION BETWEEN NATIONAL NUCLEAR SECURITY 
              ADMINISTRATION AND MISSILE DEFENSE AGENCY.''.

    (4) The following provisions are each amended by striking 
``Ballistic Missile Defense Organization'' each place it appears and 
inserting ``Missile Defense Agency'':
        (A) Section 233 of the National Defense Authorization Act for 
    Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 223 note).
        (B) Section 243 of the National Defense Authorization Act for 
    Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2431 note).

SEC. 226. ONE-YEAR LIMITATION ON USE OF FUNDS FOR NUCLEAR ARMED 
              INTERCEPTORS.

    (a) Limitation.--None of the funds described in subsection (b) may 
be obligated for research, development, test, or evaluation, or for 
procurement, of a nuclear armed interceptor as a component of a missile 
defense system.
    (b) Covered Funds.--Subsection (a) applies to funds made available 
to the Department of Defense pursuant to an authorization of 
appropriations in this title or title I or to the Department of Energy 
pursuant to an authorization of appropriations in title XXXI.

   Subtitle D--Improved Management of Department of Defense Test and 
                         Evaluation Facilities

SEC. 231. DEPARTMENT OF DEFENSE TEST RESOURCE MANAGEMENT CENTER.

    (a) Establishment.--(1) Subchapter I of chapter 8 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 196. Department of Defense Test Resource Management Center

    ``(a) Establishment as Department of Defense Field Activity.--The 
Secretary of Defense shall establish within the Department of Defense 
under section 191 of this title a Department of Defense Test Resource 
Management Center (hereinafter in this section referred to as the 
`Center'). The Secretary shall designate the Center as a Department of 
Defense Field Activity.
    ``(b) Director and Deputy Director.--(1) At the head of the Center 
shall be a Director, selected by the Secretary from among commissioned 
officers of the armed forces on active duty. The Director, while so 
serving, holds the grade of lieutenant general or, in the case of an 
officer of the Navy, vice admiral.
    ``(2) There shall be a Deputy Director of the Center, selected by 
the Secretary from among senior civilian officers and employees of the 
Department of Defense who have substantial experience in the field of 
test and evaluation. The Deputy Director shall act for, and exercise 
the powers of, the Director when the Director is disabled or the 
position of Director is vacant.
    ``(c) Duties of Director.--The Director shall have the following 
duties:
        ``(1) To review and provide oversight of proposed Department of 
    Defense budgets and expenditures for--
            ``(A) the test and evaluation facilities and resources of 
        the Major Range and Test Facility Base of the Department of 
        Defense; and
            ``(B) all other test and evaluation facilities and 
        resources within and outside of the Department of Defense.
        ``(2) To complete and maintain the strategic plan required by 
    subsection (d).
        ``(3) To review proposed budgets under subsection (e) and 
    submit reports and certifications required by such subsection.
        ``(4) To administer the Central Test and Evaluation Investment 
    Program and the program of the Department of Defense for test and 
    evaluation science and technology.
    ``(d) Strategic Plan for Department of Defense Test and Evaluation 
Resources.--(1) Not less often than once every two fiscal years, the 
Director, in coordination with the Director of Operational Test and 
Evaluation, the Secretaries of the military departments, and the heads 
of Defense Agencies with test and evaluation responsibilities, shall 
complete a strategic plan reflecting the needs of the Department of 
Defense with respect to test and evaluation facilities and resources. 
Each such strategic plan shall cover the period of ten fiscal years 
beginning with the fiscal year in which the plan is submitted under 
paragraph (3). The strategic plan shall be based on a comprehensive 
review of the test and evaluation requirements of the Department and 
the adequacy of the test and evaluation facilities and resources of the 
Department to meet those requirements.
    ``(2) The strategic plan shall include the following:
        ``(A) An assessment of the test and evaluation requirements of 
    the Department for the period covered by the plan.
        ``(B) An identification of performance measures associated with 
    the successful achievement of test and evaluation objectives for 
    the period covered by the plan.
        ``(C) An assessment of the test and evaluation facilities and 
    resources that will be needed to meet such requirements and satisfy 
    such performance measures.
        ``(D) An assessment of the current state of the test and 
    evaluation facilities and resources of the Department.
        ``(E) An itemization of acquisitions, upgrades, and 
    improvements necessary to ensure that the test and evaluation 
    facilities and resources of the Department are adequate to meet 
    such requirements and satisfy such performance measures.
        ``(F) An assessment of the budgetary resources necessary to 
    implement such acquisitions, upgrades, and improvements.
    ``(3) Upon completing a strategic plan under paragraph (1), the 
Director shall submit to the Secretary of Defense a report on that 
plan. The report shall include the plan and a description of the review 
on which the plan is based.
    ``(4) Not later than 60 days after the date on which the report is 
submitted under paragraph (3), the Secretary of Defense shall transmit 
to the Committee on Armed Services and Committee on Appropriations of 
the Senate and the Committee on Armed Services and Committee on 
Appropriations of the House of Representatives the report, together 
with any comments with respect to the report that the Secretary 
considers appropriate.
    ``(e) Certification of Budgets.--(1) The Secretary of Defense, 
acting through the Under Secretary of Defense (Comptroller), shall 
require that the Secretary of each military department, the Director of 
Operational Test and Evaluation, and the head of each Defense Agency 
with test and evaluation responsibilities transmit such Secretary's, 
Director's, or head's proposed budget for test and evaluation 
activities for a fiscal year to the Director of the Center for review 
under paragraph (2) before submitting such proposed budget to the Under 
Secretary of Defense (Comptroller).
    ``(2)(A) The Director of the Center shall review each proposed 
budget transmitted under paragraph (1) and shall, not later than 
January 31 of the year preceding the fiscal year for which such budgets 
are proposed, submit to the Secretary of Defense a report containing 
the comments of the Director with respect to all such proposed budgets, 
together with the certification of the Director as to whether such 
proposed budgets are adequate.
    ``(B) The Director shall also submit, together with such report and 
such certification, an additional certification as to whether such 
proposed budgets provide balanced support for such strategic plan.
    ``(3) The Secretary of Defense shall, not later than March 31 of 
the year preceding the fiscal year for which such budgets are proposed, 
submit to Congress a report on those proposed budgets which the 
Director has not certified under paragraph (2)(A) to be adequate. The 
report shall include the following matters:
        ``(A) A discussion of the actions that the Secretary proposes 
    to take, together with any recommended legislation that the 
    Secretary considers appropriate, to address the inadequacy of the 
    proposed budgets.
        ``(B) Any additional comments that the Secretary considers 
    appropriate regarding the inadequacy of the proposed budgets.
    ``(f) Supervision of Director by Under Secretary.--The Director of 
the Center shall be subject to the supervision of the Under Secretary 
of Defense for Acquisition, Technology, and Logistics. The Director 
shall report directly to the Under Secretary, without the interposition 
of any other supervising official.
    ``(g) Administrative Support of Center.--The Secretary of Defense 
shall provide the Director with administrative support adequate for 
carrying out the Director's responsibilities under this section. The 
Secretary shall provide the support out of the headquarters activities 
of the Department or any other activities that the Secretary considers 
appropriate.
    ``(h) Definition.--In this section, the term `Major Range and Test 
Facility Base' means the test and evaluation facilities and resources 
that are designated by the Director of Operational Test and Evaluation 
as facilities and resources comprising the Major Range and Test 
Facility Base.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``196. Department of Defense Test Resource Management Center.''.

    (b) First Strategic Plan.--The first strategic plan required to be 
completed under subsection (d)(1) of section 196 of title 10, United 
States Code (as added by subsection (a)), shall be completed not later 
than six months after the date of the enactment of this Act.
    (c) Administration of CTEIP and DOD T&E S&T Programs.--The duty of 
the Director of the Department of Defense Test Resource Management 
Center to administer the programs specified in subsection (c)(4) of 
section 196 of title 10, United States Code (as added by subsection 
(a)), shall take effect, and such programs shall be placed under 
control of such Director, upon the beginning of the first fiscal year 
that begins after the report on the first strategic plan referred to 
subsection (b) is transmitted to the congressional committees required 
by subsection (d)(4) of such section 196.

SEC. 232. OBJECTIVE FOR INSTITUTIONAL FUNDING OF TEST AND EVALUATION 
              FACILITIES.

    (a) Funding Objective.--The Secretary of Defense shall establish 
the objective of ensuring that, by fiscal year 2006--
        (1) the institutional and overhead costs of a facility or 
    resource of a military department or Defense Agency that is within 
    the Major Range and Test Facility Base are fully funded through the 
    major test and evaluation investment accounts of the military 
    department or Defense Agency, the account of the Central Test and 
    Evaluation Investment Program of the Department of Defense, and 
    other appropriate accounts of the military department or Defense 
    Agency; and
        (2) the charge to an element of the Department of Defense for a 
    use by that element of such a facility or resource for testing 
    under a particular program is not more than the amount equal to the 
    direct costs of such use by that element.
    (b) Definitions.--In this section:
        (1) The term ``Major Range and Test Facility Base'' means the 
    test and evaluation facilities and resources that are designated by 
    the Director of Operational Test and Evaluation as facilities and 
    resources comprising the Major Range and Test Facility Base.
        (2) The term ``institutional and overhead costs'', with respect 
    to a facility or resource within the Major Range Test and Facility 
    Base--
            (A) means the costs of maintaining, operating, upgrading, 
        and modernizing the facility or resource; and
            (B) does not include any incremental cost of operating the 
        facility or resource that is attributable to the use of the 
        facility or resource for testing under a particular program.
        (3) The term ``direct costs'', with respect to a facility or 
    resource within the Major Range and Test Facility Base, means those 
    costs that are directly attributable to the use of the facility or 
    resource for testing under a particular program, over and above the 
    institutional and overhead costs with respect to the facility or 
    resource.

SEC. 233. UNIFORM FINANCIAL MANAGEMENT SYSTEM FOR DEPARTMENT OF DEFENSE 
              TEST AND EVALUATION FACILITIES.

    (a) Requirement for System.--The Secretary of Defense shall 
implement a single financial management and accounting system for all 
test and evaluation facilities of the Department of Defense. The 
Secretary shall implement such system as soon as practicable, and shall 
establish the objective that such system be implemented not later than 
September 30, 2006.
    (b) System Features.--The system required by subsection (a) shall 
be designed to achieve, at a minimum, the following functional 
objectives:
        (1) Enable managers within the Department of Defense to compare 
    the costs of carrying out test and evaluation activities in the 
    various facilities of the military departments.
        (2) Enable the Secretary of Defense--
            (A) to make prudent investment decisions; and
            (B) to reduce the extent to which unnecessary costs of 
        owning and operating test and evaluation facilities of the 
        Department of Defense are incurred.
        (3) Enable the Department of Defense to track the total cost of 
    test and evaluation activities.
        (4) Comply with the financial management architecture 
    established by the Secretary.

SEC. 234. TEST AND EVALUATION WORKFORCE IMPROVEMENTS.

    (a) Report on Capabilities.--Not later than March 15, 2003, the 
Under Secretary of Defense for Acquisition, Technology, and Logistics 
shall submit to Congress a report on the capabilities of the test and 
evaluation workforce of the Department of Defense. The Under Secretary 
shall consult with the Under Secretary of Defense for Personnel and 
Readiness and the Director of Operational Test and Evaluation in 
preparing the report.
    (b) Requirement for Plan.--(1) The report shall contain a plan for 
taking the actions necessary to ensure that the test and evaluation 
workforce of the Department of Defense is of sufficient size and has 
the expertise necessary to timely and accurately identify issues of 
military suitability and effectiveness of Department of Defense systems 
through testing of the systems.
    (2) The plan shall set forth objectives for the size, composition, 
and qualifications of the workforce, and shall specify the actions 
(including recruitment, retention, and training) and milestones for 
achieving the objectives.
    (c) Additional Matters.--The report shall also include the 
following matters:
        (1) An assessment of the changing size and demographics of the 
    test and evaluation workforce, including the impact of anticipated 
    retirements among the most experienced personnel over the period of 
    five fiscal years beginning with fiscal year 2003, together with a 
    discussion of the management actions necessary to address the 
    changes.
        (2) An assessment of the anticipated workloads and 
    responsibilities of the test and evaluation workforce over the 
    period of ten fiscal years beginning with fiscal year 2003, 
    together with the number and qualifications of military and 
    civilian personnel necessary to carry out such workloads and 
    responsibilities.
        (3) The Under Secretary's specific plans for using the 
    demonstration authority provided in section 4308 of the National 
    Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
    10 U.S.C. 1701 note) and other special personnel management 
    authorities of the Under Secretary to attract and retain qualified 
    personnel in the test and evaluation workforce.
        (4) Any recommended legislation or additional special authority 
    that the Under Secretary considers appropriate for facilitating the 
    recruitment and retention of qualified personnel for the test and 
    evaluation workforce.
        (5) Any other matters that are relevant to the capabilities of 
    the test and evaluation workforce.

SEC. 235. COMPLIANCE WITH TESTING REQUIREMENTS.

    (a) Annual OT&E Report.--Subsection (g) of section 139 of title 10, 
United States Code, is amended by inserting after the fourth sentence 
the following: ``The report for a fiscal year shall also include an 
assessment of the waivers of and deviations from requirements in test 
and evaluation master plans and other testing requirements that 
occurred during the fiscal year, any concerns raised by the waivers or 
deviations, and the actions that have been taken or are planned to be 
taken to address the concerns.''.
    (b) Reorganization of Provision.--Subsection (g) of such section, 
as amended by subsection (a), is further amended--
        (1) by inserting ``(1)'' after ``(g)'';
        (2) by designating the second sentence as paragraph (2);
        (3) by designating the third sentence as paragraph (3);
        (4) by designating the matter consisting of the fourth and 
    fifth sentences as paragraph (4); and
        (5) by designating the sixth sentence as paragraph (5).

                       Subtitle E--Other Matters

SEC. 241. PILOT PROGRAMS FOR REVITALIZING DEPARTMENT OF DEFENSE 
              LABORATORIES.

    (a) Additional Pilot Program.--(1) The Secretary of Defense may 
carry out a pilot program to demonstrate improved efficiency in the 
performance of research, development, test, and evaluation functions of 
the Department of Defense.
    (2) Under the pilot program, the Secretary of Defense shall provide 
the director of one science and technology laboratory, and the director 
of one test and evaluation laboratory, of each military department with 
authority for the following:
        (A) To use innovative methods of personnel management 
    appropriate for ensuring that the selected laboratories can--
            (i) employ and retain a workforce appropriately balanced 
        between permanent and temporary personnel and among workers 
        with appropriate levels of skills and experience; and
            (ii) effectively shape workforces to ensure that the 
        workforces have the necessary sets of skills and experience to 
        fulfill their organizational missions.
        (B) To develop or expand innovative methods of entering into 
    and expanding cooperative relationships and arrangements with 
    private sector organizations, educational institutions (including 
    primary and secondary schools), and State and local governments to 
    facilitate the training of a future scientific and technical 
    workforce that will contribute significantly to the accomplishment 
    of organizational missions.
        (C) To develop or expand innovative methods of establishing 
    cooperative relationships and arrangements with private sector 
    organizations and educational institutions to promote the 
    establishment of the technological industrial base in areas 
    critical for Department of Defense technological requirements.
        (D) To waive any restrictions not required by law that apply to 
    the demonstration and implementation of methods for achieving the 
    objectives set forth in subparagraphs (A), (B), and (C).
    (3) The Secretary may carry out the pilot program under this 
subsection at each selected laboratory for a period of three years 
beginning not later than March 1, 2003.
    (b) Relationship to Fiscal Years 1999 and 2000 Revitalization Pilot 
Programs.--The pilot program under this section is in addition to, but 
may be carried out in conjunction with, the fiscal years 1999 and 2000 
revitalization pilot programs.
    (c) Reports.--(1) Not later than January 1, 2003, the Secretary 
shall submit to Congress a report on the experience under the fiscal 
years 1999 and 2000 revitalization pilot programs in exercising the 
authorities provided for the administration of those programs. The 
report shall include a description of--
        (A) barriers to the exercise of the authorities that have been 
    encountered;
        (B) the proposed solutions for overcoming the barriers; and
        (C) the progress made in overcoming the barriers.
    (2) Not later than September 1, 2003, the Secretary of Defense 
shall submit to Congress a report on the implementation of the pilot 
program under subsection (a) and the fiscal years 1999 and 2000 
revitalization pilot programs. The report shall include, for each such 
pilot program, the following:
        (A) Each laboratory selected for the pilot program.
        (B) To the extent practicable, a description of the innovative 
    methods that are to be tested at each laboratory.
        (C) The criteria to be used for measuring the success of each 
    method to be tested.
    (3) Not later than 90 days after the expiration of the period for 
the participation of a laboratory in a pilot program referred to in 
paragraph (2), the Secretary of Defense shall submit to Congress a 
final report on the participation of that laboratory in the pilot 
program. The report shall include the following:
        (A) A description of the methods tested.
        (B) The results of the testing.
        (C) The lessons learned.
        (D) Any proposal for legislation that the Secretary recommends 
    on the basis of the experience at that laboratory under the pilot 
    program.
    (d) Extension of Authority for Other Revitalization Pilot 
Programs.--(1) Section 246(a)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
1956; 10 U.S.C. 2358 note) is amended by striking ``a period of three 
years'' and inserting ``up to six years''.
    (2) Section 245(a)(4) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 553; 10 U.S.C. 2358 
note) is amended by striking ``a period of three years'' and inserting 
``up to five years''.
    (e) Partnerships Under Pilot Program.--(1) The Secretary of Defense 
may authorize one or more laboratories and test centers participating 
in the pilot program under subsection (a) or in one of the fiscal years 
1999 and 2000 revitalization pilot programs to enter into a cooperative 
arrangement (in this subsection referred to as a ``public-private 
partnership'') with entities in the private sector and institutions of 
higher education for the performance of work.
    (2) A competitive process shall be used for the selection of 
entities outside the Government to participate in a public-private 
partnership.
    (3)(A) Not more than one public-private partnership may be 
established as a limited liability company.
    (B) An entity participating in a limited liability company as a 
party to a public-private partnership under the pilot program may 
contribute funds to the company, accept contributions of funds for the 
company, and provide materials, services, and use of facilities for 
research, technology, and infrastructure of the company, if it is 
determined under regulations prescribed by the Secretary of Defense 
that doing so will improve the efficiency of the performance of 
research, test, and evaluation functions of the Department of Defense.
    (f) Fiscal Years 1999 and 2000 Revitalization Pilot Programs 
Defined.--In this section, the term ``fiscal years 1999 and 2000 
revitalization pilot programs'' means--
        (1) the pilot programs authorized by section 246 of the Strom 
    Thurmond National Defense Authorization Act for Fiscal Year 1999 
    (Public Law 105-261; 112 Stat. 1955; 10 U.S.C. 2358 note); and
        (2) the pilot programs authorized by section 245 of the 
    National Defense Authorization Act for Fiscal Year 2000 (Public Law 
    106-65; 113 Stat. 552; 10 U.S.C. 2358 note).

SEC. 242. TECHNOLOGY TRANSITION INITIATIVE.

    (a) Establishment and Conduct.--(1) Chapter 139 of title 10, United 
States Code, is amended by inserting after section 2359 the following 
new section:

``Sec. 2359a. Technology Transition Initiative

    ``(a) Initiative Required.--The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall carry out an initiative, to be known as the Technology 
Transition Initiative (hereinafter in this section referred to as the 
`Initiative'), to facilitate the rapid transition of new technologies 
from science and technology programs of the Department of Defense into 
acquisition programs of the Department for the production of such 
technologies.
    ``(b) Objectives.--The objectives of the Initiative are as follows:
        ``(1) To accelerate the introduction of new technologies into 
    operational capabilities for the armed forces.
        ``(2) To successfully demonstrate new technologies in relevant 
    environments.
    ``(c) Management of Initiative.--(1) The Under Secretary shall 
designate a senior official of the Department of Defense (hereinafter 
in this section referred to as the `Manager') to manage the Initiative.
    ``(2) In managing the Initiative, the Manager shall--
        ``(A) report directly to the Under Secretary; and
        ``(B) obtain advice and other assistance from the Technology 
    Transition Council established under subsection (g).
    ``(3) The Manager shall--
        ``(A) in consultation with the Technology Transition Council 
    established under subsection (g), identify promising technology 
    transition projects that can contribute to meeting Department of 
    Defense technology goals and requirements;
        ``(B) identify potential sponsors in the Department of Defense 
    to manage such projects; and
        ``(C) provide funds under subsection (f) for those projects 
    that are selected under subsection (d)(2).
    ``(d) Selection of Projects.--(1) The science and technology and 
acquisition executives of each military department and each appropriate 
Defense Agency and the commanders of the unified and specified 
combatant commands may nominate technology transition projects for 
implementation under subsection (e) and shall submit a list of the 
projects so nominated to the Manager.
    ``(2) The Manager, in consultation with the Technology Transition 
Council established under subsection (g), shall select projects for 
implementation under subsection (e) from among the projects on the 
lists submitted under paragraph (1).
    ``(e) Implementation of Projects.--For each project selected under 
subsection (d)(2), the Manager shall designate a military department or 
Defense Agency to implement the project.
    ``(f) Funding of Projects.--(1) From funds made available to the 
Manager for the Initiative, the Manager shall, subject to paragraphs 
(2) and (3), provide funds for each project selected under subsection 
(d)(2) in an amount determined by mutual agreement between the Manager 
and the acquisition executive of the military department or Defense 
Agency concerned.
    ``(2) The amount of funds provided to a project under paragraph (1) 
shall be not less than the amount equal to 50 percent of the total cost 
of the project.
    ``(3) A project shall not be provided funds under this subsection 
for more than four fiscal years.
    ``(g) Technology Transition Council.--(1) There is a Technology 
Transition Council in the Department of Defense. The Council is 
composed of the following members:
        ``(A) The science and technology executive of each military 
    department and each Defense Agency.
        ``(B) The acquisition executive of each military department.
        ``(C) The members of the Joint Requirements Oversight Council.
    ``(2) The duty of the Council shall be to provide advice and 
assistance to the Manager under this section.
    ``(3) The Council shall meet not less often than semiannually to 
carry out its duty under paragraph (2).
    ``(h) Report.--Not later than March 31 of each year, the Under 
Secretary shall submit to the Committee on Armed Services and the 
Committee on Appropriations of the Senate and the Committee on Armed 
Services and the Committee on Appropriations of the House of 
Representatives a report on the activities carried out by the 
Initiative during the preceding fiscal year.
    ``(i) Definition.--In this section, the term `acquisition 
executive', with respect to a military department or Defense Agency, 
means the official designated as the senior procurement executive for 
that military department or Defense Agency for the purposes of section 
16(3) of the Office of Federal Procurement Policy Act (41 U.S.C. 
414(3)).''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2359 the 
following new item:

``2359a. Technology Transition Initiative.''.

    (b) Authorization of Appropriations.--Of the amount authorized to 
be appropriated under section 201(4), $25,430,000 may be available in 
program element 0603826D8Z for technology transition activities of the 
Department of Defense, including the Technology Transition Initiative 
required by section 2359a of title 10, United States Code (as added by 
subsection (a)), the Defense Acquisition Challenge Program required by 
section 2359b of title 10, United States Code (as added by section 
243), and Quick Reaction Special Projects.

SEC. 243. DEFENSE ACQUISITION CHALLENGE PROGRAM.

    (a) In General.--Chapter 139 of title 10, United States Code, is 
amended by inserting after section 2359a (as added by section 242) the 
following new section:

``Sec. 2359b. Defense Acquisition Challenge Program

    ``(a) Program Required.--(1) The Secretary of Defense, acting 
through the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall carry out a program to provide opportunities for the 
increased introduction of innovative and cost-saving technology in 
acquisition programs of the Department of Defense.
    ``(2) The program, to be known as the Defense Acquisition Challenge 
Program (hereinafter in this section referred to as the `Challenge 
Program'), shall provide any person or activity within or outside the 
Department of Defense with the opportunity to propose alternatives, to 
be known as challenge proposals, at the component, subsystem, or system 
level of an existing Department of Defense acquisition program that 
would result in improvements in performance, affordability, 
manufacturability, or operational capability of that acquisition 
program.
    ``(b) Panels.--The Under Secretary shall establish one or more 
panels of highly qualified scientists and engineers (hereinafter in 
this section referred to as `Panels') to provide preliminary 
evaluations of challenge proposals under subsection (c).
    ``(c) Preliminary Evaluation by Panels.--(1) Under procedures 
prescribed by the Under Secretary, a person or activity within or 
outside the Department of Defense may submit challenge proposals to a 
Panel, through the unsolicited proposal process or in response to a 
broad agency announcement.
    ``(2) The Under Secretary shall establish procedures pursuant to 
which appropriate officials of the Department of Defense may identify 
proposals submitted through the unsolicited proposal process as 
challenge proposals. The procedures shall provide for the expeditious 
referral of such proposals to a Panel for preliminary evaluation under 
this subsection.
    ``(3) The Under Secretary shall issue on an annual basis not less 
than one such broad agency announcement inviting interested parties to 
submit challenge proposals. Such announcements may also identify 
particular technology areas and acquisition programs that will be given 
priority in the evaluation of challenge proposals.
    ``(4) Under procedures established by the Under Secretary, a Panel 
shall carry out a preliminary evaluation of each challenge proposal 
submitted in response to a broad agency announcement, or submitted 
through the unsolicited proposal process and identified as a challenge 
proposal in accordance with paragraph (2), to determine each of the 
following:
        ``(A) Whether the challenge proposal has merit.
        ``(B) Whether the challenge proposal is likely to result in 
    improvements in performance, affordability, manufacturability, or 
    operational capability at the component, subsystem, or system level 
    of an acquisition program.
        ``(C) Whether the challenge proposal could be implemented in 
    the acquisition program rapidly, at an acceptable cost, and without 
    unacceptable disruption to the acquisition program.
    ``(5) The Under Secretary may establish procedures to ensure that 
the Challenge Program does not become an avenue for the repetitive 
submission of proposals that have been previously reviewed and found 
not to have merit.
    ``(6) If a Panel determines that a challenge proposal satisfies 
each of the criteria specified in paragraph (4), the person or activity 
submitting that challenge proposal shall be provided an opportunity to 
submit such challenge proposal for a full review and evaluation under 
subsection (d).
    ``(d) Full Review and Evaluation.--(1) Under procedures prescribed 
by the Under Secretary, for each challenge proposal submitted for a 
full review and evaluation as provided in subsection (c)(6), the office 
carrying out the acquisition program to which the proposal relates 
shall, in consultation with the prime system contractor carrying out 
such program, conduct a full review and evaluation of the proposal.
    ``(2) The full review and evaluation shall, independent of the 
determination of a Panel under subsection (c)(4), determine each of the 
matters specified in subparagraphs (A), (B), and (C) of such 
subsection. The full review and evaluation shall also include--
        ``(A) an assessment of the cost of adopting the challenge 
    proposal and implementing it in the acquisition program; and
        ``(B) consideration of any intellectual property issues 
    associated with the challenge proposal.
    ``(e) Action Upon Favorable Full Review and Evaluation.--(1) Under 
procedures prescribed by the Under Secretary, each challenge proposal 
determined under a full review and evaluation to satisfy each of the 
criteria specified in subsection (c)(4) with respect to an acquisition 
program shall be considered by the office carrying out the applicable 
acquisition program and the prime system contractor for incorporation 
into the acquisition program as a new technology insertion at the 
component, subsystem, or system level.
    ``(2) The Under Secretary shall encourage the adoption of each 
challenge proposal referred to in paragraph (1) by providing suitable 
incentives to the office carrying out the acquisition program and the 
prime system contractor carrying out such program.
    ``(f) Access to Technical Resources.--(1) Under procedures 
established by the Under Secretary, the technical resources of the 
laboratories, research, development, and engineering centers, test and 
evaluation activities, and other elements of the Department may be 
called upon to support the activities of the Challenge Program.
    ``(2) Funds available to carry out this program may be used to 
compensate such laboratories, centers, activities, and elements for 
technical assistance provided to a Panel pursuant to paragraph (1).
    ``(g) Elimination of Conflicts of Interest.--In carrying out each 
preliminary evaluation under subsection (c) and full review under 
subsection (d), the Under Secretary shall ensure the elimination of 
conflicts of interest.
    ``(h) Limitation on Use of Funds.--Funds made available for the 
Challenge Program may be used only for activities authorized by this 
section, and not for implementation of challenge proposals.
    ``(i) Annual Report.--The Under Secretary shall submit an annual 
report on the Challenge Program to Congress. The report shall be 
submitted at the same time as the President submits the budget for a 
fiscal year to Congress under section 1105(a) of title 31, and shall 
cover the conduct of the Challenge Program for the preceding fiscal 
year. The report shall include the number and scope of challenge 
proposals submitted, preliminarily evaluated, subjected to full review 
and evaluation, and adopted. No report is required for a fiscal year in 
which the Challenge Program is not carried out.
    ``(j) Termination of Authority.--The Secretary may not carry out 
the Challenge Program under this section after September 30, 2007.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2359a (as added by section 242) the following new item:

``2359b. Defense Acquisition Challenge Program.''.

SEC. 244. ENCOURAGEMENT OF SMALL BUSINESSES AND NONTRADITIONAL DEFENSE 
              CONTRACTORS TO SUBMIT PROPOSALS POTENTIALLY BENEFICIAL 
              FOR COMBATING TERRORISM.

    (a) Establishment of Outreach Program.--During fiscal years 2003, 
2004, and 2005, the Secretary of Defense, acting through the Under 
Secretary of Defense for Acquisition, Technology, and Logistics, shall 
carry out a program of outreach to small businesses and nontraditional 
defense contractors for the purpose set forth in subsection (b).
    (b) Purpose.--The purpose of the outreach program is to provide a 
process for reviewing and evaluating research activities of, and new 
technologies being developed by, small businesses and nontraditional 
defense contractors that have the potential for meeting a defense 
requirement or technology development goal of the Department of Defense 
that relates to the mission of the Department of Defense to combat 
terrorism.
    (c) Goals.--The goals of the outreach program are as follows:
        (1) To increase efforts within the Department of Defense to 
    survey and identify research activities and new technologies 
    described in subsection (b).
        (2) To provide the Under Secretary of Defense for Acquisition, 
    Technology, and Logistics with a source of expert advice on new 
    technologies for combating terrorism.
        (3) To increase efforts to educate nontraditional defense 
    contractors on Department of Defense acquisition processes, 
    including regulations, procedures, funding opportunities, military 
    needs and requirements, and technology transfer so as to encourage 
    such contractors to submit proposals regarding research activities 
    and new technologies described in subsection (b).
        (4) To increase efforts to provide timely response by the 
    Department of Defense to acquisition proposals (including 
    unsolicited proposals) submitted to the Department by small 
    businesses and by nontraditional defense contractors regarding 
    research activities and new technologies described in subsection 
    (b), including through the use of electronic transactions to 
    facilitate the processing of such proposals.
    (d) Review Panel.--(1) The Secretary shall appoint, under the 
outreach program, a panel for the review and evaluation of acquisition 
proposals described in subsection (c)(4).
    (2) The panel shall be composed of qualified personnel from the 
military departments, relevant Defense Agencies, industry, academia, 
and other private sector organizations.
    (3) Under procedures prescribed by the Under Secretary of Defense 
for Acquisition, Technology, and Logistics, a small business or 
nontraditional defense contractor may submit acquisition proposals for 
consideration under the program through the unsolicited proposal 
process or in response to a broad agency announcement. The Under 
Secretary shall issue on an annual basis not less than one such broad 
agency announcement inviting parties to submit proposals.
    (4) Under procedures prescribed by the Under Secretary, the panel 
shall review and evaluate acquisition proposals selected by the panel. 
An acquisition proposal shall be selected for review and evaluation if 
the panel determines that the acquisition proposal may present a unique 
and valuable approach for meeting a defense requirement or technology 
development goal of the Department of Defense that relates to the 
mission of the Department of Defense to combat terrorism. In carrying 
out its duties under this paragraph, the panel may act through 
representatives designated by the panel.
    (5) The panel shall--
        (A) not later than 60 days after the date on which the panel 
    receives an acquisition proposal described in subsection (c)(4), 
    transmit to the small business or nontraditional defense contractor 
    that submitted the proposal a notification regarding whether the 
    acquisition proposal has been selected under paragraph (4) for 
    review and evaluation;
        (B) to the maximum extent practicable, complete the review and 
    evaluation of each selected acquisition proposal not later than 120 
    days after the date on which such proposal is selected under 
    paragraph (4); and
        (C) after completing the review and evaluation of an 
    acquisition proposal, transmit the results of that review and 
    evaluation to the small business or nontraditional defense 
    contractor that submitted the proposal.
    (6) The Secretary shall ensure that the panel, in reviewing and 
evaluating acquisition proposals under this subsection, has the 
authority to obtain assistance, to a reasonable extent, from the 
appropriate technical resources of the laboratories, research, 
development, and engineering centers, test and evaluation activities, 
and other elements of the Department of Defense.
    (7) If, after completing review and evaluation of an acquisition 
proposal, the panel determines that such proposal represents a unique 
and valuable approach for meeting a defense requirement or technology 
development goal of the Department of Defense that relates to the 
mission of the Department of Defense to combat terrorism, the panel 
shall submit that determination to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, together with any 
recommendations that the panel considers appropriate regarding such 
proposal.
    (8) The Under Secretary of Defense for Acquisition, Technology, and 
Logistics may provide funding for acquisition proposals with respect to 
which the panel has submitted a determination under paragraph (7) 
through appropriate accounts of the military departments, Defense 
Agencies, the Small Business Innovative Research program, or any other 
acquisition program.
    (9) The Secretary of Defense shall ensure that a member of the 
panel has no conflict of interest with respect to the review and 
evaluation of an acquisition proposal by the panel.
    (e) Nontraditional Defense Contractor Defined.--In this section, 
the term ``nontraditional defense contractor'' means an entity that has 
not, for at least one year prior to the date of the enactment of this 
Act, entered into, or performed with respect to, any contract described 
in paragraph (1) or (2) of section 845(e) of the National Defense 
Authorization Act for Fiscal Year 1994 (10 U.S.C. 2371 note).

SEC. 245. VEHICLE FUEL CELL PROGRAM.

    (a) Program Required.--The Secretary of Defense shall carry out a 
program for the development of vehicle fuel cell technology.
    (b) Goals and Objectives.--The goals and objectives of the program 
shall be as follows:
        (1) To identify and support technological advances that are 
    necessary for the development of fuel cell technology for use in 
    vehicles of types to be used by the Department of Defense.
        (2) To ensure that critical technology advances are shared 
    among the various fuel cell technology programs within the Federal 
    Government.
        (3) To maximize the leverage of Federal funds that are used for 
    the development of fuel cell technology.
    (c) Content of Program.--The program shall include--
        (1) development of vehicle propulsion technologies and fuel 
    cell auxiliary power units, together with pilot projects for the 
    demonstration of such technologies, as appropriate; and
        (2) development of technologies necessary to address critical 
    issues with respect to vehicle fuel cells, such as issues relating 
    to hydrogen storage and hydrogen fuel infrastructure.
    (d) Cooperation With Industry.--(1) The Secretary shall carry out 
the program in cooperation with companies selected by the Secretary. 
The Secretary shall select such companies from among--
        (A) companies in the automobile and truck manufacturing 
    industry;
        (B) companies in the business of supplying systems and 
    components to that industry; and
        (C) companies in any other industries that the Secretary 
    considers appropriate.
    (2) The Secretary may enter into a cooperative agreement with one 
or more companies selected under paragraph (1) to establish an entity 
for carrying out activities required by subsection (c).
    (3) The Secretary shall ensure that companies referred to in 
paragraph (1) collectively contribute, in cash or in kind, not less 
than one-half of the total cost of carrying out the program under this 
section.
    (e) Coordination With Other Federal Agencies.--The Secretary shall 
carry out the program using a coordinating mechanism for sharing 
information and resources with the Department of Energy and other 
Federal agencies.
    (f) Intial Funding.--Of the funds authorized to be appropriated by 
section 201(4), $10,000,000 shall be available for the program required 
by this section.

SEC. 246. DEFENSE NANOTECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Establishment.--The Secretary of Defense shall carry out a 
defense nanotechnology research and development program.
    (b) Purposes.--The purposes of the program are as follows:
        (1) To ensure United States global superiority in 
    nanotechnology necessary for meeting national security 
    requirements.
        (2) To coordinate all nanoscale research and development within 
    the Department of Defense, and to provide for interagency 
    cooperation and collaboration on nanoscale research and development 
    between the Department of Defense and other departments and 
    agencies of the United States that are involved in nanoscale 
    research and development.
        (3) To develop and manage a portfolio of fundamental and 
    applied nanoscience and engineering research initiatives that is 
    stable, consistent, and balanced across scientific disciplines.
        (4) To accelerate the transition and deployment of technologies 
    and concepts derived from nanoscale research and development into 
    the Armed Forces, and to establish policies, procedures, and 
    standards for measuring the success of such efforts.
        (5) To collect, synthesize, and disseminate critical 
    information on nanoscale research and development.
    (c) Administration.--In carrying out the program, the Secretary 
shall act through the Director of Defense Research and Engineering, who 
shall supervise the planning, management, and coordination of the 
program. The Director, in consultation with the Secretaries of the 
military departments and the heads of participating Defense Agencies 
and other departments and agencies of the United States, shall--
        (1) prescribe a set of long-term challenges and a set of 
    specific technical goals for the program;
        (2) develop a coordinated and integrated research and 
    investment plan for meeting the long-term challenges and achieving 
    the specific technical goals that builds upon the Department's 
    increased investment in nanotechnology research and development and 
    the National Nanotechnology Initiative; and
        (3) develop memoranda of agreement, joint funding agreements, 
    and other cooperative arrangements necessary for meeting the long-
    term challenges and achieving the specific technical goals.
    (d) Annual Report.--Not later than March 1 of each of 2004, 2005, 
2006, and 2007, the Director of Defense Research and Engineering shall 
submit to the congressional defense committees a report on the program. 
The report shall contain the following matters:
        (1) A review of--
            (A) the long-term challenges and specific technical goals 
        of the program; and
            (B) the progress made toward meeting those challenges and 
        achieving those goals.
        (2) An assessment of current and proposed funding levels, 
    including the adequacy of such funding levels to support program 
    activities.
        (3) A review of the coordination of activities within the 
    Department of Defense, with other departments and agencies, and 
    with the National Nanotechnology Initiative.
        (4) An assessment of the extent to which effective technology 
    transition paths have been established as a result of activities 
    under the program.
        (5) Recommendations for additional program activities to meet 
    emerging national security requirements.

SEC. 247. ACTIVITIES OF THE DEFENSE EXPERIMENTAL PROGRAM TO STIMULATE 
              COMPETITIVE RESEARCH.

    Subsection (c) of section 257 of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 2358 note) is 
amended--
        (1) in paragraph (1), by striking ``research grants'' and 
    inserting ``grants for research and instrumentation to support such 
    research''; and
        (2) by adding at the end the following new paragraph:
        ``(3) Any other activities that are determined necessary to 
    further the achievement of the objectives of the program.''.

SEC. 248. FOUR-YEAR EXTENSION OF AUTHORITY OF DARPA TO AWARD PRIZES FOR 
              ADVANCED TECHNOLOGY ACHIEVEMENTS AND ADDITIONAL AUTHORITY 
              OF MILITARY DEPARTMENTS AND DEFENSE AGENCIES TO AWARD 
              PRIZES FOR ACHIEVEMENTS IN PROMOTING EDUCATION.

    (a) Extension.--Section 2374a(f) of title 10, United States Code, 
is amended by striking ``September 30, 2003'' and inserting ``September 
30, 2007''.
    (b) Report on Administration of Program.--(1) Not later than 
December 31, 2002, the Director of the Defense Advanced Research 
Projects Agency shall submit to the congressional defense committees a 
report on the proposal of the Director for the administration of the 
program to award prizes for advanced technology achievements under 
section 2374a of title 10, United States Code.
    (2) The report shall include the following:
        (A) The results of consultations by the Director with officials 
    of the military departments regarding the technology areas for 
    which competitive prizes would be established.
        (B) A description of the proposed goals of the competitions 
    that would be established under the program, including the 
    technology areas to be promoted by the competitions and the 
    relationship of such areas to military missions of the Department 
    of Defense.
        (C) The proposed rules for the competitions that would be 
    established under the program and a description of the proposed 
    management of the competitions.
        (D) A description of the manner in which the amounts of the 
    cash prizes awarded and claimed under the program would be 
    allocated among the accounts of the Defense Advanced Research 
    Projects Agency for recording as obligations and expenditures.
        (E) For each competition that would be established under the 
    program, a statement of the reasons why the competition is a 
    preferable means of promoting basic, advanced, and applied 
    research, advanced technology development, or prototype projects, 
    rather than other means of promoting such activities, including 
    contracts, grants, cooperative agreements, and other transactions.
    (c) Additional Authority to Award Cash Prizes for Promoting 
Education in Support of DoD Missions.--(1) Chapter 139 of title 10, 
United States Code, is amended by adding at the end the following new 
section:

``Sec. 2374b. Prizes for achievements in promoting science, 
            mathematics, engineering, or technology education

    ``(a) Authority.--The Secretaries of the military departments and 
the heads of defense agencies may each carry out a program to award 
cash prizes in recognition of outstanding achievements that are 
designed to promote science, mathematics, engineering, or technology 
education in support of the missions of the Department of Defense.
    ``(b) Competition Requirements.--Each program under subsection (a) 
shall use a competitive process for the selection of recipients of cash 
prizes.
    ``(c) Limitation.--For any single program under subsection (a), the 
total amount made available for award of cash prizes in a fiscal year 
may not exceed $1,000,000.
    ``(d) Relationship to Other Authority.--The program under 
subsection (a) may be carried out in conjunction with or in addition to 
the exercise of any other authority to acquire, support, or stimulate 
basic and applied research, advanced technology development, or 
prototype development projects.
    ``(e) Annual Report.--Promptly after the end of each fiscal year, 
each Secretary of a military department and each head of a defense 
agency carrying out a program under subsection (a) shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the administration of that program for that 
fiscal year.
    ``(f) Period of Authority.--The authority to award prizes under 
subsection (a) shall terminate at the end of September 30, 2006.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2374b. Prizes for achievements in promoting science, mathematics, 
          engineering, or technology education.''.

SEC. 249. PLAN FOR FIVE-YEAR PROGRAM FOR ENHANCEMENT OF MEASUREMENT AND 
              SIGNATURES INTELLIGENCE CAPABILITIES OF THE UNITED STATES 
              THROUGH INCORPORATION OF RESULTS OF BASIC RESEARCH ON 
              SENSORS.

    (a) Congressional Finding.--Congress finds that the national 
interest will be served by the rapid exploitation of basic research on 
sensors for purposes of enhancing the measurement and signatures 
intelligence (MASINT) capabilities of the United States.
    (b) Plan for Research Program.--(1) Not later than March 31, 2003, 
the Secretary of Defense shall submit to Congress a plan for a five-
year program of research intended to provide for the incorporation of 
the results of basic research on sensors into the measurement and 
signatures intelligence systems of the United States, to the extent the 
results of such research is applicable to such systems. Such program 
shall include the review and assessment of basic research on sensors 
for purpose of such incorporation, including both basic research on 
sensors conducted by the Government and basic research on sensors 
conducted by non-governmental entities.
    (2) The plan submitted under paragraph (1) shall provide that the 
activities to be carried out under the program provided for in the plan 
shall be carried out by a consortium consisting of such governmental 
and non-governmental entities as the Secretary considers appropriate 
for purposes of incorporating the broadest practicable range of sensor 
capabilities into the systems referred to in paragraph (1). The 
consortium may include national laboratories, universities, and private 
sector entities.
    (3) The plan shall include a proposal for the funding of activities 
under the five-year program provided for in the plan, including cost-
sharing by non-governmental participants in the consortium under 
paragraph (2).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Grant to National Guard Youth Foundation.

                  Subtitle B--Environmental Provisions

Sec. 311. Enhancement of authority on cooperative agreements for 
          environmental purposes.
Sec. 312. Single point of contact for policy and budgeting issues 
          regarding unexploded ordnance, discarded military munitions, 
          and munitions constituents.
Sec. 313. Authority to carry out construction projects for environmental 
          responses.
Sec. 314. Procurement of environmentally preferable procurement items.
Sec. 315. Incidental taking of migratory birds during military readiness 
          activities.

   Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

Sec. 321. Authority for each military department to provide base 
          operating support to Fisher Houses.
Sec. 322. Use of commissary stores and MWR retail facilities by members 
          of National Guard serving in national emergency.
Sec. 323. Uniform funding and management of morale, welfare, and 
          recreation programs.
Sec. 324. Rebate agreements under the special supplemental food program.

                 Subtitle D--Workplace and Depot Issues

Sec. 331. Notification requirements in connection with required studies 
          for conversion of commercial or industrial type functions to 
          contractor performance.
Sec. 332. Temporary authority for contractor performance of security-
          guard functions to meet increased requirements since September 
          11, 2001.
Sec. 333. Repeal of obsolete provision regarding depot-level maintenance 
          and repair workloads that were performed at closed or 
          realigned military installations.
Sec. 334. Exclusion of certain expenditures from limitation on private 
          sector performance of depot-level maintenance.

                Subtitle E--Defense Dependents Education

Sec. 341. Assistance to local educational agencies that benefit 
          dependents of members of the Armed Forces and Department of 
          Defense civilian employees.
Sec. 342. Housing benefits for unaccompanied teachers required to live 
          at Guantanamo Bay Naval Station, Cuba.
Sec. 343. Options for funding dependent summer school programs.
Sec. 344. Impact aid eligibility for local educational agencies affected 
          by privatization of military housing.
Sec. 345. Comptroller General study of adequacy of compensation provided 
          for teachers in the Department of Defense Overseas Dependents' 
          Schools.

                   Subtitle F--Information Technology

Sec. 351. Annual submission of information regarding information 
          technology capital assets.
Sec. 352. Policy regarding acquisition of information assurance and 
          information assurance-enabled information technology products.
Sec. 353. Installation and connection policy and procedures regarding 
          Defense Switch Network.

                        Subtitle G--Other Matters

Sec. 361. Distribution of monthly reports on allocation of funds within 
          operation and maintenance budget subactivities.
Sec. 362. Continuation of arsenal support program initiative.
Sec. 363. Extension of work safety demonstration program.
Sec. 364. Condition on authority of Defense Security Service to impose 
          fees on fee-for-service basis.
Sec. 365. Logistics support and services for weapon systems contractors.
Sec. 366. Training range sustainment plan, Global Status of Resources 
          and Training System, and training range inventory.
Sec. 367. Engineering study and environmental analysis of road 
          modifications in vicinity of Fort Belvoir, Virginia.
Sec. 368. Reauthorization of warranty claims recovery pilot program.
Sec. 369. Expanded eligibility for loan, gift, or exchange of documents, 
          historical artifacts, and condemned or obsolete combat 
          materiel.

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for expenses, not otherwise provided for, for 
operation and maintenance, in amounts as follows:
        (1) For the Army, $23,922,251,000.
        (2) For the Navy, $29,264,939,000.
        (3) For the Marine Corps, $3,559,636,000.
        (4) For the Air Force, $27,419,488,000.
        (5) For Defense-wide activities, $14,145,310,000.
        (6) For the Army Reserve, $1,985,110,000.
        (7) For the Naval Reserve, $1,233,759,000.
        (8) For the Marine Corps Reserve, $189,532,000.
        (9) For the Air Force Reserve, $2,160,604,000.
        (10) For the Army National Guard, $4,155,067,000.
        (11) For the Air National Guard, $4,104,810,000.
        (12) For the Defense Inspector General, $155,165,000.
        (13) For the United States Court of Appeals for the Armed 
    Forces, $9,614,000.
        (14) For Environmental Restoration, Army, $395,900,000.
        (15) For Environmental Restoration, Navy, $256,948,000.
        (16) For Environmental Restoration, Air Force, $389,773,000.
        (17) For Environmental Restoration, Defense-wide, $23,498,000.
        (18) For Environmental Restoration, Formerly Used Defense 
    Sites, $252,102,000.
        (19) For Overseas Humanitarian, Disaster, and Civic Aid 
    programs, $58,400,000.
        (20) For Drug Interdiction and Counter-drug Activities, 
    Defense-wide, $859,907,000.
        (21) For the Kaho'olawe Island Conveyance, Remediation, and 
    Environmental Restoration Trust Fund, $25,000,000.
        (22) For Defense Health Program, $14,123,038,000.
        (23) For Cooperative Threat Reduction programs, $416,700,000.
        (24) For Support for International Sporting Competitions, 
    Defense, $19,000,000.
        (25) For overseas contingency operations transfer fund, 
    $17,844,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2003 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
        (1) For the Defense Working Capital Funds, $387,156,000
        (2) For the National Defense Sealift Fund, $934,129,000.
        (3) For the Defense Commissary Agency Working Capital Fund, 
    $969,200,000.
        (4) For the Pentagon Reservation Maintenance Revolving Fund, 
    $328,000,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2003 
from the Armed Forces Retirement Home Trust Fund the sum of $69,921,000 
for the operation of the Armed Forces Retirement Home.

SEC. 304. GRANT TO NATIONAL GUARD YOUTH FOUNDATION.

    Of the amount authorized to be appropriated by section 301(5) for 
administrative and service-wide activities for civil-military programs, 
the Secretary of Defense may use up to $2,500,000 to make a grant to 
the National Guard Youth Foundation to support the efforts of the 
Foundation to mobilize individuals, groups, and organizations to build 
and strengthen the character and competence of youth in the United 
States.

                  Subtitle B--Environmental Provisions

SEC. 311. ENHANCEMENT OF AUTHORITY ON COOPERATIVE AGREEMENTS FOR 
              ENVIRONMENTAL PURPOSES.

    Section 2701(d) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking ``paragraph (2)'' and 
    inserting ``paragraph (3)'';
        (2) by redesignating paragraphs (2) and (3) as paragraphs (3) 
    and (4), respectively; and
        (3) by inserting after paragraph (1) the following new 
    paragraph (2):
        ``(2) Cross-fiscal year agreements.--An agreement with an 
    agency under paragraph (1) may be for a period that begins in one 
    fiscal year and ends in another fiscal year so long as the period 
    of the agreement does not exceed two years.''.

SEC. 312. SINGLE POINT OF CONTACT FOR POLICY AND BUDGETING ISSUES 
              REGARDING UNEXPLODED ORDNANCE, DISCARDED MILITARY 
              MUNITIONS, AND MUNITIONS CONSTITUENTS.

    Section 2701 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(k) UXO Program Manager.--(1) The Secretary of Defense shall 
establish a program manager who shall serve as the single point of 
contact in the Department of Defense for policy and budgeting issues 
involving the characterization, remediation, and management of 
explosive and related risks with respect to unexploded ordnance, 
discarded military munitions, and munitions constituents at defense 
sites (as such terms are defined in section 2710 of this title) that 
pose a threat to human health or safety.
    ``(2) The authority to establish the program manager may be 
delegated to the Secretary of a military department, who may delegate 
the authority to the Under Secretary of that military department. The 
authority may not be further delegated.
    ``(3) The program manager may establish an independent advisory and 
review panel that may include representatives of the National Academy 
of Sciences, nongovernmental organizations with expertise regarding 
unexploded ordnance, discarded military munitions, or munitions 
constituents, the Environmental Protection Agency, States (as defined 
in section 2710 of this title), and tribal governments. If established, 
the panel shall report annually to Congress on progress made by the 
Department of Defense to address unexploded ordnance, discarded 
military munitions, or munitions constituents at defense sites and make 
such recommendations as the panel considers appropriate.''.

SEC. 313. AUTHORITY TO CARRY OUT CONSTRUCTION PROJECTS FOR 
              ENVIRONMENTAL RESPONSES.

    (a) Restatement and Modification of Authority.--Chapter 160 of 
title 10, United States Code, is amended--
        (1) by redesignating section 2707 as section 2700 and 
    transferring such section to appear immediately after the table of 
    sections at the beginning of such chapter; and
        (2) by inserting after section 2706 the following new section 
    2707:

``Sec. 2707. Environmental restoration projects for environmental 
            responses

    ``(a) Environmental Restoration Projects Authorized.--The Secretary 
of Defense or the Secretary of a military department may carry out an 
environmental restoration project if that Secretary determines that the 
project is necessary to carry out a response under this chapter or 
CERCLA.
    ``(b) Treatment of Project.--Any construction, development, 
conversion, or extension of a structure, and any installation of 
equipment, that is included in an environmental restoration project 
under this section may not be considered military construction (as that 
term is defined in section 2801(a) of this title).
    ``(c) Source of Funds.--Funds authorized for deposit in an account 
established by section 2703(a) of this title shall be the only source 
of funds to conduct an environmental restoration project under this 
section.
    ``(d) Environmental Restoration Project Defined.--In this section, 
the term `environmental restoration project' includes any construction, 
development, conversion, or extension of a structure, or installation 
of equipment, in direct support of a response.''.
    (b) Repeal of Superseded Provision.--Section 2810 of such title is 
repealed.
    (c) Conforming Amendments.--Chapter 160 of such title is further 
amended--
        (1) in section 2700 (as redesignated by subsection (a))--
            (A) by redesignating paragraphs (1) and (2) as paragraphs 
        (2) and (3), respectively; and
            (B) by inserting after ``In this chapter:'' the following 
        new paragraph:
        ``(1) The term `CERCLA' means the Comprehensive Environmental 
    Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 
    et seq.).''; and
        (2) in section 2701(a)(2), by striking ``the Comprehensive 
    Environmental Response, Compensation, and Liability Act of 1980 
    (hereinafter in this chapter referred to as `CERCLA') (42 U.S.C. 
    9601 et seq.)'' and inserting ``CERCLA''.
    (d) Clerical Amendments.--(1) The table of sections at the 
beginning of chapter 160 of such title is amended--
        (A) by inserting before the item relating to section 2701 the 
    following new item:

``2700. Definitions.'';

    and

        (B) by striking the item relating to section 2707 and inserting 
    the following new item:

``2707. Environmental restoration projects for environmental 
          responses.''.

    (2) The table of sections at the beginning of chapter 169 of such 
title is amended by striking the item relating to section 2810.

SEC. 314. PROCUREMENT OF ENVIRONMENTALLY PREFERABLE PROCUREMENT ITEMS.

    (a) Tracking System.--The Secretary of Defense shall develop and 
implement an effective and efficient tracking system to identify the 
extent to which the Defense Logistics Agency procures environmentally 
preferable procurement items or procurement items made with recovered 
material. The system shall provide for the separate tracking, to the 
maximum extent practicable, of the procurement of each category of 
procurement items that, as of the date of the enactment of this Act, 
has been determined to be environmentally preferable or made with 
recovered material.
    (b) Assessment of Training and Education.--The Secretary of Defense 
shall assess the need to establish a program, or enhance existing 
programs, for training and educating Department of Defense procurement 
officials to ensure that they are aware of any Department requirements, 
preferences, or goals for the procurement of environmentally preferable 
procurement items or procurement items made with recovered material.
    (c) Reporting Requirement.--Not later than March 1, 2004, and each 
March 1 thereafter through 2007, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report detailing the 
results obtained from the tracking system developed under subsection 
(a).
    (d) Relation to Other Laws.--Nothing in this section shall be 
construed to alter the requirements of the Solid Waste Disposal Act (40 
U.S.C. 6901 et seq.).
    (e) Definitions.--In this section:
        (1) The term ``environmentally preferable'', in the case of a 
    procurement item, means that the item has a lesser or reduced 
    effect on human health and the environment when compared with 
    competing products that serve the same purpose. The comparison may 
    consider raw materials acquisition, production, manufacturing, 
    packaging, distribution, reuse, operation, maintenance, or disposal 
    of the product.
        (2) The terms ``procurement item'' and ``recovered material'' 
    have the meanings given such terms in section 1004 of the Solid 
    Waste Disposal Act (40 U.S.C. 6903).

SEC. 315. INCIDENTAL TAKING OF MIGRATORY BIRDS DURING MILITARY 
              READINESS ACTIVITIES.

    (a) Interim Authority for Incidental Takings.--During the period 
described in subsection (c), section 2 of the Migratory Bird Treaty Act 
(16 U.S.C. 703) shall not apply to the incidental taking of a migratory 
bird by a member of the Armed Forces during a military readiness 
activity authorized by the Secretary of Defense or the Secretary of the 
military department concerned.
    (b) Identification of Measures to Minimize Impact of Activities.--
During the periods described in subsections (c) and (d), the Secretary 
of Defense shall, in consultation with the Secretary of the Interior, 
identify measures--
        (1) to minimize and mitigate, to the extent practicable, any 
    adverse impacts of authorized military readiness activities on 
    affected species of migratory birds; and
        (2) to monitor the impacts of such military readiness 
    activities on affected species of migratory birds.
    (c) Period of Application for Interim Authority.--The period 
described in this subsection is the period beginning on the date of the 
enactment of this Act and ending on the date on which the Secretary of 
the Interior publishes in the Federal Register a notice that--
        (1) regulations authorizing the incidental taking of migratory 
    birds by members of the Armed Forces have been prescribed in 
    accordance with the requirements of subsection (d);
        (2) all legal challenges to the regulations and to the manner 
    of their promulgation (if any) have been exhausted as provided in 
    subsection (e); and
        (3) the regulations have taken effect.
    (d) Incidental Takings After Interim Period.--(1) Not later than 
the expiration of the one-year period beginning on the date of the 
enactment of this Act, the Secretary of the Interior shall exercise the 
authority of that Secretary under section 3(a) of the Migratory Bird 
Treaty Act (16 U.S.C. 704(a)) to prescribe regulations to exempt the 
Armed Forces for the incidental taking of migratory birds during 
military readiness activities authorized by the Secretary of Defense or 
the Secretary of the military department concerned.
    (2) The Secretary of the Interior shall exercise authority under 
paragraph (1) with the concurrence of the Secretary of Defense.
    (e) Limitation on Judicial Review.--An action seeking judicial 
review of regulations prescribed pursuant to this section or of the 
manner of their promulgation must be filed in the appropriate Federal 
court by not later than the expiration of the 120-day period beginning 
on the date on which such regulations are published in the Federal 
Register. Upon the expiration of such period and the exhaustion of any 
legal challenges to the regulations pursuant to any action filed in 
such period, there shall be no further judicial review of such 
regulations or of the manner of their promulgation.
    (f) Military Readiness Activity.--(1) In this section the term 
``military readiness activity'' includes--
        (A) all training and operations of the Armed Forces that relate 
    to combat; and
        (B) the adequate and realistic testing of military equipment, 
    vehicles, weapons, and sensors for proper operation and suitability 
    for combat use.
    (2) The term does not include--
        (A) the routine operation of installation operating support 
    functions, such as administrative offices, military exchanges, 
    commissaries, water treatment facilities, storage facilities, 
    schools, housing, motor pools, laundries, morale, welfare, and 
    recreation activities, shops, and mess halls;
        (B) the operation of industrial activities; or
        (C) the construction or demolition of facilities used for a 
    purpose described in subparagraph (A) or (B).

  Subtitle C--Commissaries and Nonappropriated Fund Instrumentalities

SEC. 321. AUTHORITY FOR EACH MILITARY DEPARTMENT TO PROVIDE BASE 
              OPERATING SUPPORT TO FISHER HOUSES.

    Section 2493(f) of title 10, United States Code, is amended to read 
as follows:
    ``(f) Base Operating Support.--The Secretary of a military 
department may provide base operating support for Fisher Houses 
associated with health care facilities of that military department.''.

SEC. 322. USE OF COMMISSARY STORES AND MWR RETAIL FACILITIES BY MEMBERS 
              OF NATIONAL GUARD SERVING IN NATIONAL EMERGENCY.

    (a) Additional Basis for Authorized Use.--Section 1063a of title 
10, United States Code, is amended--
        (1) in subsection (a), by inserting ``or national emergency'' 
    after ``federally declared disaster''; and
        (2) in subsection (c), by adding at the end the following new 
    paragraph:
        ``(3) National emergency.--The term `national emergency' means 
    a national emergency declared by the President or Congress.''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:

``Sec. 1063a. Use of commissary stores and MWR retail facilities: 
            members of National Guard serving in federally declared 
            disaster or national emergency''.

    (2) The table of sections at the beginning of chapter 54 of such 
title is amended by striking the item relating to section 1063a and 
inserting the following new item:

``1063a. Use of commissary stores and MWR retail facilities: members of 
          National Guard serving in federally declared disaster or 
          national emergency.''.

SEC. 323. UNIFORM FUNDING AND MANAGEMENT OF MORALE, WELFARE, AND 
              RECREATION PROGRAMS.

    (a) In General.--Chapter 147 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2494. Uniform funding and management of morale, welfare, and 
            recreation programs

    ``(a) Authority for Uniform Funding and Management.--Under 
regulations prescribed by the Secretary of Defense, funds appropriated 
to the Department of Defense and available for morale, welfare, and 
recreation programs may be treated as nonappropriated funds and 
expended in accordance with laws applicable to the expenditures of 
nonappropriated funds. When made available for morale, welfare, and 
recreation programs under such regulations, appropriated funds shall be 
considered to be nonappropriated funds for all purposes and shall 
remain available until expended.
    ``(b) Conditions on Availability.--Funds appropriated to the 
Department of Defense may be made available to support a morale, 
welfare, or recreation program only if the program is authorized to 
receive appropriated fund support and only in the amounts the program 
is authorized to receive.
    ``(c) Conversion of Employment Positions.--(1) The Secretary of 
Defense may identify positions of employees in morale, welfare, and 
recreation programs within the Department of Defense who are paid with 
appropriated funds whose status may be converted from the status of an 
employee paid with appropriated funds to the status of an employee of a 
nonappropriated fund instrumentality.
    ``(2) The status of an employee in a position identified by the 
Secretary under paragraph (1) may, with the consent of the employee, be 
converted to the status of an employee of a nonappropriated fund 
instrumentality. An employee who does not consent to the conversion may 
not be removed from the position because of the failure to provide such 
consent.
    ``(3) The conversion of an employee from the status of an employee 
paid by appropriated funds to the status of an employee of a 
nonappropriated fund instrumentality shall be without a break in 
service for the concerned employee. The conversion shall not entitle an 
employee to severance pay, back pay or separation pay under subchapter 
IX of chapter 55 of title 5, or be considered an involuntary separation 
or other adverse personnel action entitling an employee to any right or 
benefit under such title or any other provision of law or regulation.
    ``(4) In this subsection, the term `an employee of a 
nonappropriated fund instrumentality' means an employee described in 
section 2105(c) of title 5.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2494. Uniform funding and management of morale, welfare, and 
          recreation programs.''.

SEC. 324. REBATE AGREEMENTS UNDER THE SPECIAL SUPPLEMENTAL FOOD 
              PROGRAM.

    (a) Applicability to Navy Exchange Markets.--Paragraph (1)(A) of 
section 1060a(e) of title 10, United States Code, is amended by 
inserting ``or Navy Exchange Markets'' after ``commissary stores''.
    (b) Increased Maximum Period of Agreement.--Paragraph (3) of such 
section is amended by striking ``subsection may not exceed one year'' 
in the first sentence and inserting ``subsection, including any period 
of extension of the contract by modification of the contract, exercise 
of an option, or other cause, may not exceed three years''.

                 Subtitle D--Workplace and Depot Issues

SEC. 331. NOTIFICATION REQUIREMENTS IN CONNECTION WITH REQUIRED STUDIES 
              FOR CONVERSION OF COMMERCIAL OR INDUSTRIAL TYPE FUNCTIONS 
              TO CONTRACTOR PERFORMANCE.

    Subsection (c) of section 2461 of title 10, United States Code, is 
amended to read as follows:
    ``(c) Submission of Analysis Results.--(1) Upon the completion of 
an analysis of a commercial or industrial type function described in 
subsection (a) for possible change to performance by the private 
sector, the Secretary of Defense shall submit to Congress a report 
containing the results of the analysis, including the results of the 
examinations required by subsection (b)(3).
    ``(2) The report shall also contain the following:
        ``(A) The date when the analysis of the function was commenced.
        ``(B) The Secretary's certification that the Government 
    calculation of the cost of performance of the function by 
    Department of Defense civilian employees is based on an estimate of 
    the most cost effective manner for performance of the function by 
    Department of Defense civilian employees.
        ``(C) The number of Department of Defense civilian employees 
    who were performing the function when the analysis was commenced 
    and the number of such employees whose employment was or will be 
    terminated or otherwise affected by changing to performance of the 
    function by the private sector or by implementation of the most 
    efficient organization of the function.
        ``(D) The Secretary's certification that the factors considered 
    in the examinations performed under subsection (b)(3), and in the 
    making of the decision regarding changing to performance of the 
    function by the private sector or retaining performance in the most 
    efficient organization of the function, did not include any 
    predetermined personnel constraint or limitation in terms of man 
    years, end strength, full-time equivalent positions, or maximum 
    number of employees.
        ``(E) A statement of the potential economic effect of 
    implementing the decision regarding changing to performance of the 
    function by the private sector or retaining performance in the most 
    efficient organization of the function on each affected local 
    community, as determined in the examination under subsection 
    (b)(3)(B)(ii).
        ``(F) A schedule for completing the change to performance of 
    the function by the private sector or implementing the most 
    efficient organization of the function.
        ``(G) In the case of a commercial or industrial type function 
    performed at a Center of Industrial and Technical Excellence 
    designated under section 2474(a) of this title or an Army 
    ammunition plant, a description of the effect that the manner of 
    performance of the function, and administration of the resulting 
    contract if any, will have on the overhead costs of the center or 
    ammunition plant, as the case may be.
        ``(H) The Secretary's certification that the entire analysis is 
    available for examination.
    ``(3)(A) If a decision is made to change the commercial or 
industrial type function that was the subject of the analysis to 
performance by the private sector, the change of the function to 
contractor performance may not begin until after the submission of the 
report required by paragraph (1).
    ``(B) Notwithstanding subparagraph (A), in the case of a commercial 
or industrial type function performed at a Center of Industrial and 
Technical Excellence designated under section 2474(a) of this title or 
an Army ammunition plant, the change of the function to contractor 
performance may not begin until at least 60 days after the submission 
of the report.''.

SEC. 332. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF SECURITY-
              GUARD FUNCTIONS TO MEET INCREASED REQUIREMENTS SINCE 
              SEPTEMBER 11, 2001.

    (a) Contract Authority.--The Secretary of Defense or the Secretary 
of a military department may enter into a contract for any increased 
performance of security-guard functions at a military installation or 
facility under the jurisdiction of the Secretary undertaken in response 
to the terrorist attacks on the United States on September 11, 2001, 
and may waive the prohibition under section 2465(a) of title 10, United 
States Code, with respect to such contract, if--
        (1) without the contract, members of the Armed Forces are or 
    would be used to perform the increased security-guard functions; 
    and
        (2) the Secretary concerned determines that--
            (A) the recruiting and training standards for the personnel 
        who are to perform the security-guard functions at the 
        installation or facility under the contract are comparable to 
        the recruiting and training standards for the personnel of the 
        Department of Defense who perform security-guard functions at 
        military installations and facilities under the jurisdiction of 
        the Secretary;
            (B) the contractor personnel performing such functions 
        under the contract will be effectively supervised, reviewed, 
        and evaluated; and
            (C) the performance of such functions by the contractor 
        personnel will not result in a reduction in the security of the 
        installation or facility.
    (b) Increased Performance Defined.--In this section, the term 
``increased performance'', with respect to security-guard functions at 
a military installation or facility, means--
        (1) in the case of an installation or facility where no 
    security-guard functions were performed as of September 10, 2001, 
    the entire scope or extent of the performance of security-guard 
    functions at the installation or facility after such date; and
        (2) in the case of an installation or facility where security-
    guard functions were performed within a lesser scope of 
    requirements or to a lesser extent as of September 10, 2001, than 
    after such date, the increment of the performance of security-guard 
    functions at the installation or facility that exceeds such lesser 
    scope of requirements or extent of performance.
    (c) Expiration of Authority.--The authority for contractor 
performance of security-guard functions under this section shall 
terminate at the end of the three-year period beginning on the date of 
the enactment of this Act. The term of any contract entered into using 
the authority provided by this section may not extend beyond the end of 
such period.
    (d) Needs Assessment and Plan.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall--
        (1) identify any requirements for the performance of security-
    guard functions at military installations and facilities under the 
    jurisdiction of the Secretary or the Secretary of a military 
    department that are expected to continue for more than three years 
    after the date of the enactment of this Act and, in the absence of 
    further action by the Secretary or Congress, would otherwise be 
    performed by members of the Armed Forces; and
        (2) submit to the congressional defense committees a plan for 
    meeting those requirements on a long-term basis.

SEC. 333. REPEAL OF OBSOLETE PROVISION REGARDING DEPOT-LEVEL 
              MAINTENANCE AND REPAIR WORKLOADS THAT WERE PERFORMED AT 
              CLOSED OR REALIGNED MILITARY INSTALLATIONS.

    (a) Repeal.--Section 2469a of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 146 of such title is amended by striking the item relating to 
section 2469a.

SEC. 334. EXCLUSION OF CERTAIN EXPENDITURES FROM LIMITATION ON PRIVATE 
              SECTOR PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    Section 2474(f) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking ``Amounts expended out of 
    funds described in paragraph (2) for the performance of a depot-
    level maintenance and repair workload by non-Federal Government 
    personnel at a Center of Industrial and Technical Excellence'' and 
    inserting ``Amounts expended for the performance of a depot-level 
    maintenance and repair workload by non-Federal Government personnel 
    at a Center of Industrial and Technical Excellence under any 
    contract entered into during fiscal years 2003 through 2006'';
        (2) by striking paragraph (2); and
        (3) by redesignating paragraph (3) as paragraph (2).

                Subtitle E--Defense Dependents Education

SEC. 341. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT 
              DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT 
              OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Continuation of Department of Defense Program for Fiscal Year 
2003.--Of the amount authorized to be appropriated pursuant to section 
301(5) for operation and maintenance for Defense-wide activities, 
$30,000,000 shall be available only for the purpose of providing 
educational agencies assistance to local educational agencies.
    (b) Notification.--Not later than June 30, 2003, the Secretary of 
Defense shall notify each local educational agency that is eligible for 
educational agencies assistance for fiscal year 2003 of--
        (1) that agency's eligibility for the assistance; and
        (2) the amount of the assistance for which that agency is 
    eligible.
    (c) Disbursement of Funds.--The Secretary of Defense shall disburse 
funds made available under subsection (a) not later than 30 days after 
the date on which notification to the eligible local educational 
agencies is provided pursuant to subsection (b).
    (d) Definitions.--In this section:
        (1) The term ``educational agencies assistance'' means 
    assistance authorized under section 386(b) of the National Defense 
    Authorization Act for Fiscal Year 1993 (Public Law 102-484; 20 
    U.S.C. 7703 note).
        (2) The term ``local educational agency'' has the meaning given 
    that term in section 8013(9) of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 7713(9)).

SEC. 342. HOUSING BENEFITS FOR UNACCOMPANIED TEACHERS REQUIRED TO LIVE 
              AT GUANTANAMO BAY NAVAL STATION, CUBA.

    Section 7 of the Defense Department Overseas Teachers Pay and 
Personnel Practices Act (20 U.S.C. 905) is amended by adding at the end 
the following new subsection:
    ``(f)(1) A teacher assigned to teach at Guantanamo Bay Naval 
Station, Cuba, who is not accompanied at such station by any dependent 
shall be offered for lease any available military family housing at 
such station that is suitable for occupancy by the teacher and is not 
needed to house members of the armed forces and dependents accompanying 
them or other civilian personnel and any dependents accompanying them.
    ``(2) For any period for which military family housing is leased 
under paragraph (1) to a teacher described in such paragraph, the 
teacher shall receive a quarters allowance in the amount determined 
under subsection (b). The teacher is entitled to such quarters 
allowance without regard to whether other Government furnished quarters 
are available for occupancy by the teacher without charge to the 
teacher.''.

SEC. 343. OPTIONS FOR FUNDING DEPENDENT SUMMER SCHOOL PROGRAMS.

    Section 1402(d)(2) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 921(d)(2)) is amended to read as follows:
    ``(2) The Secretary shall provide any summer school program under 
this subsection on the same financial basis as programs offered during 
the regular school year, except that the Secretary may charge 
reasonable fees for all or portions of such summer school programs to 
the extent that the Secretary determines appropriate.''.

SEC. 344. IMPACT AID ELIGIBILITY FOR LOCAL EDUCATIONAL AGENCIES 
              AFFECTED BY PRIVATIZATION OF MILITARY HOUSING.

    Section 8003(b)(2) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7703(b)(2)) is amended by adding at the end the 
following:
            ``(H) Eligibility for heavily impacted local educational 
        agencies affected by privatization of military housing.--
                ``(i) Eligibility.--For any fiscal year beginning with 
            fiscal year 2003, a heavily impacted local educational 
            agency that received a basic support payment under 
            subparagraph (A) for the prior fiscal year, but is 
            ineligible for such payment for the current fiscal year 
            under subparagraph (B) or (C), as the case may be, by 
            reason of the conversion of military housing units to 
            private housing described in clause (iii), shall be deemed 
            to meet the eligibility requirements under subparagraph (B) 
            or (C), as the case may be, for the period during which the 
            housing units are undergoing such conversion.
                ``(ii) Amount of payment.--The amount of a payment to a 
            heavily impacted local educational agency for a fiscal year 
            by reason of the application of clause (i), and calculated 
            in accordance with subparagraph (D) or (E) (as the case may 
            be), shall be based on the number of children in average 
            daily attendance in the schools of such agency for the 
            fiscal year.
                ``(iii) Conversion of military housing units to private 
            housing described.--For purposes of clause (i), `conversion 
            of military housing units to private housing' means the 
            conversion of military housing units to private housing 
            units pursuant to subchapter IV of chapter 169 of title 10, 
            United States Code, or pursuant to any other related 
            provision of law.''.

SEC. 345. COMPTROLLER GENERAL STUDY OF ADEQUACY OF COMPENSATION 
              PROVIDED FOR TEACHERS IN THE DEPARTMENT OF DEFENSE 
              OVERSEAS DEPENDENTS' SCHOOLS.

    (a) Additional Consideration for Study.--Subsection (b) of section 
354 of the National Defense Authorization Act for Fiscal Year 2002 
(Public Law 107-107; 115 Stat. 1064) is amended by inserting after 
paragraph (2) the following new paragraph:
        ``(3) Whether the process for setting teacher compensation is 
    efficient and cost effective.''.
    (b) Extension of Time for Reporting.--Subsection (c) of such 
section is amended by striking ``May 1, 2002'' and inserting ``December 
12, 2002''.

                   Subtitle F--Information Technology

SEC. 351. ANNUAL SUBMISSION OF INFORMATION REGARDING INFORMATION 
              TECHNOLOGY CAPITAL ASSETS.

    (a) Requirement To Submit Information.--Not later than 30 days 
after the date on which the President submits the budget for a fiscal 
year to Congress pursuant to section 1105 of title 31, United States 
Code, the Secretary of Defense shall submit to Congress information on 
the following information technology capital assets, including 
information technology capital assets that are a national security 
system, of the Department of Defense:
        (1) Information technology capital assets not covered by 
    paragraph (2) that have an estimated total cost for the fiscal year 
    for which the budget is submitted in excess of $10,000,000.
        (2) Information technology capital assets that have an 
    estimated total cost for the fiscal year for which the budget is 
    submitted in excess of $30,000,000 and an estimated total life 
    cycle cost (as computed in fiscal year 2003 constant dollars) in 
    excess of $120,000,000.
    (b) Required Information For Low-Threshold Assets.--With respect to 
each information technology capital asset described in subsection 
(a)(1), the Secretary of Defense shall include the following 
information:
        (1) The name of the information technology capital asset.
        (2) The function of the asset.
        (3) The total cost of the asset for the fiscal year for which 
    the budget is submitted, the current fiscal year, and the preceding 
    fiscal year.
    (c) Required Information For High-Threshold Assets.--With respect 
to each information technology capital asset described in subsection 
(a)(2), the Secretary of Defense shall include the following 
information:
        (1) The name and identifying acronym of the information 
    technology capital asset.
        (2) The date of initiation of the asset.
        (3) A summary of performance measurements and metrics.
        (4) The total amount of funds, by appropriation account, 
    appropriated and obligated for prior fiscal years, with a specific 
    breakout of such information for the two preceding fiscal years.
        (5) The funds, by appropriation account, requested for the next 
    fiscal year.
        (6) The name of each prime contractor and the work to be 
    performed.
        (7) Program management and management oversight information.
        (8) The original baseline cost and most current baseline 
    information.
        (9) Information regarding compliance with the provisions of law 
    enacted or amended by the Government Performance Results Act of 
    1993 (Public Law 103-62; 107 Stat. 285) and the Clinger-Cohen Act 
    of 1996 (divisions D and E of Public Law 104-106; 110 Stat. 642).
    (d) Total Cost Determinations.--In estimating the total cost for a 
fiscal year or total life cycle cost of an information technology 
capital asset, the Secretary of Defense shall consider research and 
development costs, procurement costs, and operation and maintenance 
costs related to the information technology capital asset.
    (e) Definitions.--In this section:
        (1) The term ``information technology'' has the meaning given 
    that term in section 11101 of title 40, United States Code.
        (2) The term ``capital asset'' has the meaning given that term 
    in Office of Management and Budget Circular A-11.
        (3) The term ``national security system'' has the meaning given 
    that term in section 11103 of title 40, United States Code.

SEC. 352. POLICY REGARDING ACQUISITION OF INFORMATION ASSURANCE AND 
              INFORMATION ASSURANCE-ENABLED INFORMATION TECHNOLOGY 
              PRODUCTS.

    (a) Establishment of Policy.--The Secretary of Defense shall 
establish a policy to limit the acquisition of information assurance 
and information assurance-enabled information technology products to 
those products that have been evaluated and validated in accordance 
with appropriate criteria, schemes, or programs.
    (b) Waiver.--As part of the policy, the Secretary of Defense shall 
authorize specified officials of the Department of Defense to waive the 
limitations of the policy upon a determination in writing that 
application of the limitations to the acquisition of a particular 
information assurance or information assurance-enabled information 
technology product would not be in the national security interest of 
the United States.
    (c) Implementation.--The Secretary of Defense shall ensure that the 
policy is uniformly implemented throughout the Department of Defense.

SEC. 353. INSTALLATION AND CONNECTION POLICY AND PROCEDURES REGARDING 
              DEFENSE SWITCH NETWORK.

    (a) Establishment of Policy and Procedures.--Not later than 180 
days after the date of the enactment of this Act, the Secretary of 
Defense shall establish clear and uniform policy and procedures, 
applicable to the military departments and Defense Agencies, regarding 
the installation and connection of telecom switches to the Defense 
Switch Network.
    (b) Elements of Policy and Procedures.--The policy and procedures 
shall address at a minimum the following:
        (1) Clear interoperability and compatibility requirements for 
    procuring, certifying, installing, and connecting telecom switches 
    to the Defense Switch Network.
        (2) Current, complete, and enforceable testing, validation, and 
    certification procedures needed to ensure the interoperability and 
    compatibility requirements are satisfied.
    (c) Exceptions.--(1) The Secretary of Defense may specify certain 
circumstances in which--
        (A) the requirements for testing, validation, and certification 
    of telecom switches may be waived; or
        (B) interim authority for the installation and connection of 
    telecom switches to the Defense Switch Network may be granted.
    (2) Only the Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence may approve a waiver or grant of 
interim authority under paragraph (1). The authority to approve such a 
waiver or grant of interim authority may not be delegated.
    (3) The Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence shall consult with the Chairman of the 
Joint Chiefs of Staff before approving a waiver or grant of interim 
authority under paragraph (1).
    (d) Inventory of Defense Switch Network.--The Secretary of Defense 
shall prepare and maintain an inventory of all telecom switches that, 
as of the date on which the Secretary issues the policy and 
procedures--
        (1) are installed or connected to the Defense Switch Network; 
    but
        (2) have not been tested, validated, and certified by the 
    Defense Information Systems Agency (Joint Interoperability Test 
    Center).
    (e) Interoperability Risks.--On an ongoing basis, the Secretary of 
Defense shall--
        (1) identify and assess the interoperability risks that are 
    associated with the installation or connection of uncertified 
    switches to the Defense Switch Network and the maintenance of such 
    switches on the Defense Switch Network; and
        (2) develop and implement a plan to eliminate or mitigate such 
    risks as identified.
    (f) Telecom Switch Defined.--In this section, the term ``telecom 
switch'' means hardware or software designed to send and receive voice, 
data, or video signals across a network that provides customer voice, 
data, or video equipment access to the Defense Switch Network or public 
switched telecommunications networks.

                       Subtitle G--Other Matters

SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLOCATION OF FUNDS WITHIN 
              OPERATION AND MAINTENANCE BUDGET SUBACTIVITIES.

    (a) Designation of Recipients.--Subsection (a) of section 228 of 
title 10, United States Code, is amended by striking ``to Congress'' 
and inserting ``to the congressional defense committees''.
    (b) Congressional Defense Committees Defined.--Subsection (e) of 
such section is amended--
        (1) by striking ``(e) O&M Budget Activity Defined.--For 
    purposes of this section, the'' and inserting the following:
    ``(e) Definitions.--In this section:
        ``(1) The''; and
        (2) by adding at the end the following new paragraph:
        ``(2) The term `congressional defense committees' means the 
    Committee on Armed Services and the Committee on Appropriations of 
    the Senate and the Committee on Armed Services and the Committee on 
    Appropriations of the House of Representatives.''.

SEC. 362. CONTINUATION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    (a) Extension Through Fiscal Year 2004.--Subsection (a) of section 
343 of the Floyd D. Spence National Defense Authorization Act for 
Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 
1654A-65) is amended by striking ``and 2002'' and inserting ``through 
2004''.
    (b) Reporting Requirements.--Subsection (g) of such section is 
amended--
        (1) in paragraph (1), by striking ``2002'' and inserting 
    ``2004''; and
        (2) in paragraph (2), by striking the first sentence and 
    inserting the following new sentence: ``Not later than July 1, 
    2003, the Secretary of the Army shall submit to the congressional 
    defense committees a report on the results of the demonstration 
    program since its implementation, including the Secretary's views 
    regarding the benefits of the program for Army manufacturing 
    arsenals and the Department of the Army and the success of the 
    program in achieving the purposes specified in subsection (b).''.

SEC. 363. EXTENSION OF WORK SAFETY DEMONSTRATION PROGRAM.

    (a) Extension.--Section 1112 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 (as enacted into law by 
Public Law 106-398; 114 Stat. 1654A-313) is amended--
        (1) in subsection (d), by striking ``September 30, 2002'' and 
    inserting ``September 30, 2003''; and
        (2) in subsection (e)(2), by striking ``December 1, 2002'' and 
    inserting ``December 1, 2003''.
    (b) Revision of Reporting Requirements.--Subsection (e)(2) of such 
section is further amended by striking ``fiscal year 2002'' both places 
it appears and inserting ``fiscal years 2002 and 2003''.

SEC. 364. CONDITION ON AUTHORITY OF DEFENSE SECURITY SERVICE TO IMPOSE 
              FEES ON FEE-FOR-SERVICE BASIS.

    The Secretary of Defense may not authorize the Defense Security 
Service to impose fees on a fee-for-service basis for the investigative 
services provided by the Defense Security Service unless the Secretary 
certifies in advance to the Committee on Armed Services of the House of 
Representatives and the Committee on Armed Services of the Senate that 
the Defense Security Service has the financial systems in place to 
determine accurately the cost of such services.

SEC. 365. LOGISTICS SUPPORT AND SERVICES FOR WEAPON SYSTEMS 
              CONTRACTORS.

    (a) Authority.--The Secretary of Defense may make available 
logistics support and logistics services to a contractor in support of 
the performance by the contractor of a contract for the construction, 
modification, or maintenance of a weapon system that is entered into by 
an official of the Department of Defense.
    (b) Support Contracts.--Any logistics support and logistics 
services to be provided under this section to a contractor in support 
of the performance of a contract described in subsection (a) shall be 
provided under a separate contract that is entered into by the Director 
of the Defense Logistics Agency with that contractor. The requirements 
of section 2208(h) of title 10, United States Code, and the regulations 
prescribed pursuant to such section shall apply to the contract between 
the Director of the Defense Logistics Agency and the contractor.
    (c) Scope of Support and Services.--The logistics support and 
logistics services that may be provided under this section in support 
of the performance of a contract described in subsection (a) are the 
distribution, disposal, and cataloging of materiel and repair parts 
necessary for the performance of that contract.
    (d) Limitations.--(1) The number of contracts described in 
subsection (a) for which the Secretary of Defense makes logistics 
support and logistics services available under the authority of this 
section may not exceed five contracts. The total amount of the 
estimated costs of all such contracts for which logistics support and 
logistics services are made available under this section may not exceed 
$100,000,000.
    (2) No contract entered into by the Director of the Defense 
Logistics Agency under subsection (b) may be for a period in excess of 
five years, including periods for which the contract is extended under 
options to extend the contract.
    (e) Regulations.--Before exercising the authority under this 
section, the Secretary of Defense shall prescribe in regulations such 
requirements, conditions, and restrictions as the Secretary determines 
appropriate to ensure that logistics support and logistics services are 
provided under this section only when it is in the best interests of 
the United States to do so. The regulations shall include, at a 
minimum, the following:
        (1) A requirement for the authority under this section to be 
    used only for providing logistics support and logistics services in 
    support of the performance of a contract that is entered into using 
    competitive procedures (as defined in section 4 of the Office of 
    Federal Procurement Policy Act (41 U.S.C. 403)).
        (2) A requirement for the solicitation of offers for a contract 
    described in subsection (a), for which logistics support and 
    logistics services are to be made available under this section, to 
    include--
            (A) a statement that the logistics support and logistics 
        services are to be made available under the authority of this 
        section to any contractor awarded the contract, but only on a 
        basis that does not require acceptance of the support and 
        services; and
            (B) a description of the range of the logistics support and 
        logistics services that are to be made available to the 
        contractor.
        (3) A requirement for the rates charged a contractor for 
    logistics support and logistics services provided to a contractor 
    under this section to reflect the full cost to the United States of 
    the resources used in providing the support and services, including 
    the costs of resources used, but not paid for, by the Department of 
    Defense.
        (4) With respect to a contract described in subsection (a) that 
    is being performed for a department or agency outside the 
    Department of Defense, a prohibition, in accordance with applicable 
    contracting procedures, on the imposition of any charge on that 
    department or agency for any effort of Department of Defense 
    personnel or the contractor to correct deficiencies in the 
    performance of such contract.
        (5) A prohibition on the imposition of any charge on a 
    contractor for any effort of the contractor to correct a deficiency 
    in the performance of logistics support and logistics services 
    provided to the contractor under this section.
    (f) Relationship to Treaty Obligations.--The Secretary shall ensure 
that the exercise of authority under this section does not conflict 
with any obligation of the United States under any treaty or other 
international agreement.
    (g) Termination of Authority.--(1) The authority provided in this 
section shall expire on September 30, 2007.
    (2) The expiration of the authority under this section does not 
terminate--
        (A) any contract that was entered into by the Director of the 
    Defense Logistics Agency under subsection (b) before the date 
    specified in paragraph (1) or any obligation to provide logistics 
    support and logistics services under that contract; or
        (B) any authority to enter into a contract described in 
    subsection (a) for which a solicitation of offers was issued in 
    accordance with the regulations prescribed pursuant to subsection 
    (e)(2) before the date specified in paragraph (1) or to provide 
    logistics support and logistics services to the contractor with 
    respect to that contract in accordance with this section.

SEC. 366. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL STATUS OF RESOURCES 
              AND TRAINING SYSTEM, AND TRAINING RANGE INVENTORY.

    (a) Plan Required.--(1) The Secretary of Defense shall develop a 
comprehensive plan for using existing authorities available to the 
Secretary of Defense and the Secretaries of the military departments to 
address training constraints caused by limitations on the use of 
military lands, marine areas, and airspace that are available in the 
United States and overseas for training of the Armed Forces.
    (2) As part of the preparation of the plan, the Secretary of 
Defense shall conduct the following:
        (A) An assessment of current and future training range 
    requirements of the Armed Forces.
        (B) An evaluation of the adequacy of current Department of 
    Defense resources (including virtual and constructive training 
    assets as well as military lands, marine areas, and airspace 
    available in the United States and overseas) to meet those current 
    and future training range requirements.
    (3) The plan shall include the following:
        (A) Proposals to enhance training range capabilities and 
    address any shortfalls in current Department of Defense resources 
    identified pursuant to the assessment and evaluation conducted 
    under paragraph (2).
        (B) Goals and milestones for tracking planned actions and 
    measuring progress.
        (C) Projected funding requirements for implementing planned 
    actions.
        (D) Designation of an office in the Office of the Secretary of 
    Defense and in each of the military departments that will have lead 
    responsibility for overseeing implementation of the plan.
    (4) At the same time as the President submits to Congress the 
budget for fiscal year 2004, the Secretary of Defense shall submit to 
Congress a report describing the progress made in implementing this 
subsection, including--
        (A) the plan developed under paragraph (1);
        (B) the results of the assessment and evaluation conducted 
    under paragraph (2); and
        (C) any recommendations that the Secretary may have for 
    legislative or regulatory changes to address training constraints 
    identified pursuant to this section.
    (5) At the same time as the President submits to Congress the 
budget for each of fiscal years 2005 through 2008, the Secretary shall 
submit to Congress a report describing the progress made in 
implementing the plan and any additional actions taken, or to be taken, 
to address training constraints caused by limitations on the use of 
military lands, marine areas, and airspace.
    (b) Readiness Reporting Improvement.--Not later than June 30, 2003, 
the Secretary of Defense, using existing measures within the authority 
of the Secretary, shall submit to Congress a report on the plans of the 
Department of Defense to improve the Global Status of Resources and 
Training System to reflect the readiness impact that training 
constraints caused by limitations on the use of military lands, marine 
areas, and airspace have on specific units of the Armed Forces.
    (c) Training Range Inventory.--(1) The Secretary of Defense shall 
develop and maintain a training range inventory for each of the Armed 
Forces--
        (A) to identify all available operational training ranges;
        (B) to identify all training capacities and capabilities 
    available at each training range; and
        (C) to identify training constraints caused by limitations on 
    the use of military lands, marine areas, and airspace at each 
    training range.
    (2) The Secretary of Defense shall submit an initial inventory to 
Congress at the same time as the President submits the budget for 
fiscal year 2004 and shall submit an updated inventory to Congress at 
the same time as the President submits the budget for fiscal years 2005 
through 2008.
    (d) GAO Evaluation.--The Secretary of Defense shall transmit copies 
of each report required by subsections (a) and (b) to the Comptroller 
General. Within 60 days after receiving a report, the Comptroller 
General shall submit to Congress an evaluation of the report.
    (e) Armed Forces Defined.--In this section, the term ``Armed 
Forces'' means the Army, Navy, Air Force, and Marine Corps.

SEC. 367. ENGINEERING STUDY AND ENVIRONMENTAL ANALYSIS OF ROAD 
              MODIFICATIONS IN VICINITY OF FORT BELVOIR, VIRGINIA.

    (a) Study and Analysis.--(1) The Secretary of the Army shall 
conduct a preliminary engineering study and environmental analysis to 
evaluate the feasibility of establishing a connector road between 
Richmond Highway (United States Route 1) and Telegraph Road in order to 
provide an alternative to Beulah Road (State Route 613) and Woodlawn 
Road (State Route 618) at Fort Belvoir, Virginia, which were closed as 
a force protection measure.
    (2) It is the sense of Congress that the study and analysis should 
consider as one alternative the extension of Old Mill Road between 
Richmond Highway and Telegraph Road.
    (b) Consultation.--The study required by subsection (a) shall be 
conducted in consultation with the Department of Transportation of the 
Commonwealth of Virginia and Fairfax County, Virginia.
    (c) Report.--The Secretary shall submit to Congress a summary 
report on the study and analysis required by subsection (a). The 
summary report shall be submitted together with the budget 
justification materials in support of the budget of the President for 
fiscal year 2006 that is submitted to Congress under section 1105(a) of 
title 31, United States Code.
    (d) Funding.--Of the amount authorized to be appropriated by 
section 301(a)(1) for the Army for operation and maintenance, 
$5,000,000 may be made available for the study and analysis required by 
subsection (a).

SEC. 368. REAUTHORIZATION OF WARRANTY CLAIMS RECOVERY PILOT PROGRAM.

    Section 391 of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 10 U.S.C. 2304 note), as amended by 
section 364 of Public Law 107-107 (115 Stat. 1068), is further 
amended--
        (1) in subsection (f), by striking ``September 30, 2003'' and 
    inserting ``September 30, 2004''; and
        (2) by striking subsection (g).

SEC. 369. EXPANDED ELIGIBILITY FOR LOAN, GIFT, OR EXCHANGE OF 
              DOCUMENTS, HISTORICAL ARTIFACTS, AND CONDEMNED OR 
              OBSOLETE COMBAT MATERIEL.

    Section 2572(a)(3) of title 10, United States Code, is amended by 
inserting before the period the following: ``or a nonprofit military 
aviation heritage foundation or association incorporated in a State''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent end strength minimum levels.
Sec. 403. Expanded authority for administrative increases in statutory 
          active-duty end strengths.
Sec. 404. General and flag officer management.
Sec. 405. Extension of certain authorities relating to management of 
          numbers of general and flag officers in certain grades.
Sec. 406. Increase in authorized strengths for Marine Corps officers on 
          active duty in the grade of colonel.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
          reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2003 limitation on non-dual status technicians.

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2003, as follows:
        (1) The Army, 480,000.
        (2) The Navy, 375,700.
        (3) The Marine Corps, 175,000.
        (4) The Air Force, 359,000.

SEC. 402. REVISION IN PERMANENT END STRENGTH MINIMUM LEVELS.

    (a) Revised End Strength Floors.--Subsection (b) of section 691 of 
title 10, United States Code, is amended--
        (1) in paragraph (2), by striking ``376,000'' and inserting 
    ``375,700'';
        (2) in paragraph (3), by striking ``172,600'' and inserting 
    ``175,000''; and
        (3) in paragraph (4), by striking ``358,800'' and inserting 
    ``359,000''.
    (b) Repeal of Secretary of Defense Flexibility Authority.--
Subsection (e) of such section is repealed.

SEC. 403. EXPANDED AUTHORITY FOR ADMINISTRATIVE INCREASES IN STATUTORY 
              ACTIVE-DUTY END STRENGTHS.

    (a) Secretary of Defense Authority.--Subsection (c)(1) of section 
115 of title 10, United States Code, is amended by striking ``2 
percent'' and inserting ``3 percent''.
    (b) Service Secretary Authority.--Such section is further amended 
by inserting after subsection (e) the following new subsection:
    ``(f) Upon determination by the Secretary of a military department 
that such action would enhance manning and readiness in essential units 
or in critical specialties or ratings, the Secretary may increase the 
end strength authorized pursuant to subsection (a)(1)(A) for a fiscal 
year for the armed force under the jurisdiction of that Secretary or, 
in the case of the Secretary of the Navy, for any of the armed forces 
under the jurisdiction of that Secretary. Any such increase for a 
fiscal year--
        ``(1) shall be by a number equal to not more than 2 percent of 
    such authorized end strength; and
        ``(2) shall be counted as part of the increase for that armed 
    force for that fiscal year authorized under subsection (c)(1).''.

SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.

    (a) Exclusion of Senior Military Assistant to the Secretary of 
Defense from Limitation on Active Duty Officers in Grades Above Major 
General and Rear Admiral.--Effective on the date specified in 
subsection (d), section 525(b) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(8) An officer while serving in a position designated by the 
Secretary of Defense as Senior Military Assistant to the Secretary of 
Defense, if serving in the grade of lieutenant general or vice admiral, 
is in addition to the number that otherwise would be permitted for that 
officer's armed force for that grade under paragraph (1) or (2). Only 
one officer may be designated as Senior Military Assistant to the 
Secretary of Defense for purposes of this paragraph.''.
    (b) Increase in Number of Lieutenant Generals Authorized for the 
Marine Corps.--Paragraph (2)(B) of such section is amended by striking 
``16.2 percent'' and inserting ``17.5 percent''.
    (c) Review of Active Duty and Reserve General and Flag Officer 
Authorizations.--(1) The Secretary of Defense shall submit to Congress 
a report containing any recommendations of the Secretary (together with 
the rationale of the Secretary for the recommendations) concerning the 
following:
        (A) Revision of the limitations on general and flag officer 
    grade authorizations and distribution in grade prescribed by 
    sections 525, 526, and 12004 of title 10, United States Code.
        (B) Statutory designation of the positions and grades of any 
    additional general and flag officers in the commands specified in 
    chapter 1006 of title 10, United States Code, and the reserve 
    component offices specified in sections 3038, 5143, 5144, and 8038 
    of such title.
    (2) The provisions of subsection (b) through (e) of section 1213 of 
the National Defense Authorization Act for Fiscal Year 1997 (Public Law 
104-201; 110 Stat. 2694) shall apply to the report under paragraph (1) 
in the same manner as they applied to the report required by subsection 
(a) of that section.
    (d) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the receipt by Congress of the report 
required by subsection (c).

SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING TO MANAGEMENT OF 
              NUMBERS OF GENERAL AND FLAG OFFICERS IN CERTAIN GRADES.

    (a) Senior Joint Officer Positions.--Section 604(c) of title 10, 
United States Code, is amended by striking ``September 30, 2003'' and 
inserting ``December 31, 2004''.
    (b) Distribution of Officers on Active Duty in General and Flag 
Officer Grades.--Section 525(b)(5)(C) of such title is amended by 
striking ``September 30, 2003'' and inserting ``December 31, 2004''.
    (c) Authorized Strength for General and Flag Officers on Active 
Duty.--Section 526(b)(3) of such title is amended by striking ``October 
1, 2002'' and inserting ``December 31, 2004''.

SEC. 406. INCREASE IN AUTHORIZED STRENGTHS FOR MARINE CORPS OFFICERS ON 
              ACTIVE DUTY IN THE GRADE OF COLONEL.

    The table in section 523(a)(1) of title 10, United States Code, is 
amended by striking the figures under the heading ``Colonel'' in the 
portion of the table relating to the Marine Corps and inserting the 
following:

     ``571
      632
      653
      673
      694
      715
      735''.

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths for 
Selected Reserve personnel of the reserve components as of September 
30, 2003, as follows:
        (1) The Army National Guard of the United States, 350,000.
        (2) The Army Reserve, 205,000.
        (3) The Naval Reserve, 87,800.
        (4) The Marine Corps Reserve, 39,558.
        (5) The Air National Guard of the United States, 106,600.
        (6) The Air Force Reserve, 75,600.
        (7) The Coast Guard Reserve, 9,000.
    (b) Adjustments.--The end strengths prescribed by subsection (a) 
for the Selected Reserve of any reserve component shall be 
proportionately reduced by--
        (1) the total authorized strength of units organized to serve 
    as units of the Selected Reserve of such component which are on 
    active duty (other than for training) at the end of the fiscal 
    year; and
        (2) the total number of individual members not in units 
    organized to serve as units of the Selected Reserve of such 
    component who are on active duty (other than for training or for 
    unsatisfactory participation in training) without their consent at 
    the end of the fiscal year.
Whenever such units or such individual members are released from active 
duty during any fiscal year, the end strength prescribed for such 
fiscal year for the Selected Reserve of such reserve component shall be 
proportionately increased by the total authorized strengths of such 
units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE 
              RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve 
components of the Armed Forces are authorized, as of September 30, 
2003, the following number of Reserves to be serving on full-time 
active duty or full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, recruiting, 
instructing, or training the reserve components:
        (1) The Army National Guard of the United States, 24,562.
        (2) The Army Reserve, 14,070.
        (3) The Naval Reserve, 14,572.
        (4) The Marine Corps Reserve, 2,261.
        (5) The Air National Guard of the United States, 11,727.
        (6) The Air Force Reserve, 1,498.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the 
last day of fiscal year 2003 for the reserve components of the Army and 
the Air Force (notwithstanding section 129 of title 10, United States 
Code) shall be the following:
        (1) For the Army National Guard of the United States, 24,102.
        (2) For the Army Reserve, 6,599.
        (3) For the Air National Guard of the United States, 22,495.
        (4) For the Air Force Reserve, 9,911.

SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STATUS TECHNICIANS.

    (a) Army.--The number of non-dual status technicians employed by 
the reserve components of the Army as of September 30, 2003, may not 
exceed the following:
        (1) For the Army Reserve, 995.
        (2) For the Army National Guard of the United States, 1,600, to 
    be counted within the limitation specified in section 10217(c)(2) 
    of title 10, United States Code.
    (b) Air Force.--The number of non-dual status technicians employed 
by the reserve components of the Army and the Air Force as of September 
30, 2003, may not exceed the following:
        (1) For the Air Force Reserve, 90.
        (2) For the Air National Guard of the United States, 350, to be 
    counted within the limitation specified in section 10217(c)(2) of 
    title 10, United States Code.
    (c) Non-Dual Status Technicians Defined.--In this section, the term 
``non-dual status technician'' has the meaning given that term in 
section 10217(a) of title 10, United States Code.
    (d) Technical Amendments.--Section 10217(c)(2) of title 10, United 
States Code, is amended--
        (1) in the first sentence, by striking ``Effective October 1, 
    2002, the'' and inserting ``The''; and
        (2) in the second sentence, by striking ``after the preceding 
    sentence takes effect''.

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2003 a total of 
$93,829,525,000. The authorization in the preceding sentence supersedes 
any other authorization of appropriations (definite or indefinite) for 
such purpose for fiscal year 2003.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Extension of good-of-the-service waiver authority for officers 
          appointed to a Reserve Chief or Guard Director position.
Sec. 502. Exclusion of certain officers from limitation on authority to 
          grant a waiver of required completion or sequencing for joint 
          professional military education.
Sec. 503. Extension and codification of authority for recall of retired 
          aviators to active duty.
Sec. 504. Grades for certain positions.
Sec. 505. Reinstatement of authority to reduce three-year time-in-grade 
          requirement for retirement in grade for officers in grades 
          above major and lieutenant commander.
Sec. 506. Authority to require that an officer take leave pending review 
          of a recommendation for removal by a board of inquiry.

                Subtitle B--Reserve Component Management

Sec. 511. Reviews of National Guard strength accounting and management 
          and other issues.
Sec. 512. Courts-martial for the National Guard when not in Federal 
          service.
Sec. 513. Fiscal year 2003 funding for military personnel costs of 
          reserve component Special Operations Forces personnel engaged 
          in humanitarian assistance activities relating to clearing of 
          landmines.
Sec. 514. Use of Reserves to perform duties relating to defense against 
          terrorism.
Sec. 515. Repeal of prohibition on use of Air Force Reserve AGR 
          personnel for Air Force base security functions.

         Subtitle C--Reserve Component Officer Personnel Policy

Sec. 521. Eligibility for consideration for promotion to grade of major 
          general for certain reserve component brigadier generals who 
          do not otherwise qualify for consideration for promotion under 
          the one-year rule.
Sec. 522. Authority for limited extension of medical deferment of 
          mandatory retirement or separation of reserve component 
          officers.

        Subtitle D--Enlistment, Education, and Training Programs

Sec. 531. Enlistment incentives for pursuit of skills to facilitate 
          national service.
Sec. 532. Authority for phased increase to 4,400 in authorized strengths 
          for the service academies.
Sec. 533. Enhancement of reserve component delayed training program.
Sec. 534. Review of Armed Forces programs for preparation for, 
          participation in, and conduct of athletic competitions.
Sec. 535. Repeal of bar to eligibility of Army College First program 
          participants for benefits under student loan repayment 
          program.

           Subtitle E--Decorations, Awards, and Commendations

Sec. 541. Waiver of time limitations for award of Army Distinguished-
          Service Cross to certain persons.
Sec. 542. Option to convert award of Armed Forces Expeditionary Medal 
          awarded for Operation Frequent Wind to Vietnam Service Medal.
Sec. 543 . Korea Defense Service Medal.
Sec. 544 . Commendation of military chaplains.

                   Subtitle F--Administrative Matters

Sec. 551. Staffing and funding for Defense Prisoner of War/Missing 
          Personnel Office.
Sec. 552. Three-year freeze on reductions of personnel of agencies 
          responsible for review and correction of military records.
Sec. 553. Authority for acceptance of voluntary services of individuals 
          as proctors for administration of Armed Services Vocational 
          Aptitude Battery test.
Sec. 554. Extension of temporary early retirement authority.

Subtitle G--Matters Relating to Minorities and Women in the Armed Forces

Sec. 561. Surveys of racial and ethnic issues and of gender issues in 
          the Armed Forces.
Sec. 562. Annual report on status of female members of the Armed Forces.
Sec. 563. Wear of abayas by female members of the Armed Forces in Saudi 
          Arabia.

                          Subtitle H--Benefits

Sec. 571. Department of Defense support for persons participating in 
          military funeral honors details.
Sec. 572. Emergency leave of absence program.
Sec. 573. Enhanced flexibility in medical loan repayment program.
Sec. 574. Destinations authorized for Government paid transportation of 
          enlisted personnel for rest and recuperation absence upon 
          extending duty at designated locations overseas.
Sec. 575. Vehicle storage in lieu of transportation when member is 
          ordered to a nonforeign duty station outside continental 
          United States.

                           Subtitle I--Reports

Sec. 581. Quadrennial quality of life review.
Sec. 582. Report on desirability and feasibility of consolidating 
          separate courses of basic instruction for judge advocates.
Sec. 583. Reports on efforts to resolve status of Captain Michael Scott 
          Speicher, United States Navy.
Sec. 584. Report on volunteer services of members of the reserve 
          components in emergency response to the terrorist attacks of 
          September 11, 2001.

                  Subtitle A--Officer Personnel Policy

SEC. 501. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER AUTHORITY FOR 
              OFFICERS APPOINTED TO A RESERVE CHIEF OR GUARD DIRECTOR 
              POSITION.

    (a) Waiver of Requirement for Significant Joint Duty Experience.--
Sections 3038(b)(4), 5143(b)(4), 5144(b)(4), 8038(b)(4), and 
10506(a)(3)(D) of title 10, United States Code, are each amended by 
striking ``October 1, 2003'' and inserting ``December 31, 2004''.
    (b) Report on Future Implementation of Requirement.--Not later than 
May 1, 2003, the Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives a report--
        (1) setting forth the steps that have been taken by the 
    Secretary, the Secretaries of the military departments, and the 
    Chairman of the Joint Chiefs of Staff to ensure that Reserve and 
    National Guard officers receive significant joint duty experience; 
    and
        (2) specifying the date by which no further extension of the 
    waiver authority under the sections amended by subsection (a) will 
    be required.

SEC. 502. EXCLUSION OF CERTAIN OFFICERS FROM LIMITATION ON AUTHORITY TO 
              GRANT A WAIVER OF REQUIRED COMPLETION OR SEQUENCING FOR 
              JOINT PROFESSIONAL MILITARY EDUCATION.

    (a) Exclusion From Limitation.--There shall be excluded from 
counting for purposes of the 10-percent limitation set forth in the 
last sentence of section 661(c)(3)(D) of title 10, United States Code 
(limiting the authority to grant waivers related to sequencing or 
completion of program of joint professional military education), any 
officer selected for the joint specialty who--
        (1) on December 28, 2001, met the requirements of section 
    661(c) of such title for nomination for the joint specialty, but 
    who had not been nominated for that specialty before that date by 
    the Secretary of the military department concerned; and
        (2) before the date of the enactment of this Act was 
    automatically nominated for the joint specialty as a result of 
    section 661(b)(2) of such title.
    (b) Termination.--The provisions of subsection (a) shall terminate 
on October 1, 2006.
    (c) Cross-Reference Correction.--Section 661(c)(3)(E) of title 10, 
United States Code, is amended by striking ``subparagraph'' and 
inserting ``paragraph''.

SEC. 503. EXTENSION AND CODIFICATION OF AUTHORITY FOR RECALL OF RETIRED 
              AVIATORS TO ACTIVE DUTY.

    (a) In General.--(1) Chapter 39 of title 10, United States Code, is 
amended by inserting after section 688 the following new section:

``Sec. 688a. Retired aviators: temporary authority to order to active 
            duty

    ``(a) Authority.--The Secretary of a military department may order 
to active duty a retired officer having expertise as an aviator to fill 
staff positions normally filled by aviators on active duty. Any such 
order may be made only with the consent of the officer ordered to 
active duty and in accordance with an agreement between the Secretary 
and the officer.
    ``(b) Duration.--The period of active duty of an officer under an 
order to active duty under subsection (a) shall be specified in the 
agreement entered into under that subsection.
    ``(c) Limitation.--No more than a total of 500 officers may be on 
active duty at any time under subsection (a).
    ``(d) Relationship to Other Authority.--The authority to order a 
retired officer to active duty under this section is in addition to the 
authority under section 688 of this title or any other provision of law 
authorizing the Secretary concerned to order a retired member to active 
duty.
    ``(e) Inapplicability of Certain Provisions.--Officers ordered to 
active duty under subsection (a) shall not be counted for purposes of 
section 688 or 690 of this title.
    ``(f) Expiration of Authority.--An officer may not be ordered to 
active duty under this section after September 30, 2008.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 688 the 
following new item:

``688a. Retired aviators: temporary authority to order to active 
          duty.''.

    (b) Grade in Which Ordered to Active Duty and Upon Release From 
Active Duty.--(1) Section 689 of such title is amended by inserting 
``or 688a'' after ``section 688'' each place it appears.
    (2) The provisions of section 689(d) of title 10, United States 
Code, shall apply with respect to an officer ordered to active duty 
under section 501 of the National Defense Authorization Act for Fiscal 
Year 2000 (Public Law 106-65; 113 Stat. 589) before the date of the 
enactment of this Act in the same manner as such provisions apply to an 
officer ordered to active duty under section 688 of such title.
    (c) Transition Provision.--Any officer ordered to active duty under 
section 501 of the National Defense Authorization Act for Fiscal Year 
2000 (Public Law 106-65; 113 Stat. 589) who continues on active duty 
under such order to active duty after the date of the enactment of this 
Act shall be counted for purposes of the limitation under subsection 
(c) of section 688a of title 10, United States Code, as added by 
subsection (a).

SEC. 504. GRADES FOR CERTAIN POSITIONS.

    (a) Heads of Nurse Corps.--(1) Section 3069(b) of title 10, United 
States Code, is amended by striking ``brigadier general'' in the second 
sentence and inserting ``major general''.
    (2) The first sentence of section 5150(c) of such title is 
amended--
        (A) by inserting ``rear admiral, in the case of an officer in 
    the Nurse Corps, or'' after ``for promotion to the grade of''; and
        (B) by inserting ``, in the case of an officer in the Medical 
    Service Corps'' after ``rear admiral (lower half)''.
    (3) Section 8069(b) of such title is amended by striking 
``brigadier general'' in the second sentence and inserting ``major 
general''.
    (b) Chief of Veterinary Corps of the Army.--(1) Chapter 307 of such 
title is amended by adding at the end the following new section:

``Sec. 3084. Chief of Veterinary Corps; grade

    ``The Chief of the Veterinary Corps of the Army serves in the grade 
of brigadier general. An officer appointed to that position who holds a 
lower grade shall be appointed in the grade of brigadier general.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3084. Chief of Veterinary Corps: grade.''.

    (c) Chief of Legislative Liaison of the Army.--(1)(A) Chapter 303 
of such title is amended by adding at the end the following new 
section:

``Sec. 3023. Chief of Legislative Liaison

    ``(a) There is a Chief of Legislative Liaison in the Department of 
the Army. An officer assigned to that position shall be an officer in 
the grade of major general.
    ``(b) The Chief of Legislative Liaison shall perform legislative 
affairs functions as specified for the Office of the Secretary of the 
Army by section 3014(c)(1)(F) of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3023. Chief of Legislative Liaison.''.

    (2) Section 3014(b) of such title is amended--
        (A) by redesignating paragraphs (6) and (7) as paragraphs (7) 
    and (8), respectively; and
        (B) by inserting after paragraph (5) the following new 
    paragraph (6):
        ``(6) The Chief of Legislative Liaison.''.
    (d) Legislative Affairs Positions of the Navy and Marine Corps.--
(1)(A) Chapter 503 of such title is amended by adding at the end the 
following new section:

``Sec. 5027. Chief of Legislative Affairs

    ``(a) There is a Chief of Legislative Affairs in the Department of 
the Navy. An officer assigned to that position shall be an officer in 
the grade of rear admiral.
    ``(b) The Chief of Legislative Affairs shall perform legislative 
affairs functions as specified for the Office of the Secretary of the 
Navy by section 5014(c)(1)(F) of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5027. Chief of Legislative Affairs.''.

    (2) Section 5014(b) of such title is amended--
        (A) by redesignating paragraphs (6) and (7) as paragraphs (7) 
    and (8), respectively; and
        (B) by inserting after paragraph (5) the following new 
    paragraph (6):
        ``(6) The Chief of Legislative Affairs.''.
    (3)(A) Chapter 506 of such title is amended by adding at the end 
the following new section:

``Sec. 5047. Legislative Assistant to the Commandant

    ``There is in the Marine Corps a Legislative Assistant to the 
Commandant. An officer assigned to that position shall be in a grade 
above colonel.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``5047. Legislative Assistant to the Commandant.''.

    (e) Chief of Legislative Liaison of the Air Force.--(1)(A) Chapter 
803 of such title is amended by adding at the end the following new 
section:

``Sec. 8023. Chief of Legislative Liaison

    ``(a) There is a Chief of Legislative Liaison in the Department of 
the Air Force. An officer assigned to that position shall be an officer 
in the grade of major general.
    ``(b) The Chief of Legislative Liaison shall perform legislative 
affairs functions as specified for the Office of the Secretary of the 
Air Force by section 8014(c)(1)(F) of this title.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8023. Chief of Legislative Liaison.''.

    (2) Section 8014(b) of such title is amended--
        (A) by redesignating paragraphs (5) and (6) as paragraphs (6) 
    and (7), respectively; and
        (B) by inserting after paragraph (4) the following new 
    paragraph (5):
        ``(5) The Chief of Legislative Liaison.''.
    (f) Technical Amendment To Provide Correct Statutory Title of 
Grade.--Section 5022(a)(2) of such title is amended by striking 
``(upper half)''.

SEC. 505. REINSTATEMENT OF AUTHORITY TO REDUCE THREE-YEAR TIME-IN-GRADE 
              REQUIREMENT FOR RETIREMENT IN GRADE FOR OFFICERS IN 
              GRADES ABOVE MAJOR AND LIEUTENANT COMMANDER.

    (a) Officers on Active Duty.--Subsection (a)(2) of section 1370 of 
title 10, United States Code, is amended--
        (1) in subparagraph (A), by striking ``during the period 
    beginning on October 1, 1990, and ending on December 31, 2001'' and 
    inserting ``during the period beginning on October 1, 2002, and 
    ending on December 31, 2003'';
        (2) by redesignating subparagraphs (B) and (C) as subparagraphs 
    (D) and (E), respectively; and
        (3) by inserting after subparagraph (A) the following new 
    subparagraphs (B) and (C):
    ``(B) In the case of an officer to be retired in a general or flag 
officer grade, authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may be 
exercised with respect to that officer only if approved by the 
Secretary of Defense or another civilian official in the Office of the 
Secretary of Defense appointed by the President, by and with the advice 
and consent of the Senate.
    ``(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may be 
delegated within that military department only to a civilian official 
of that military department appointed by the President, by and with the 
advice and consent of the Senate.''.
    (b) Reserve Officers.--Subsection (d) of such section is amended--
        (1) by designating the second sentence of paragraph (5) as 
    paragraph (6) and in that paragraph by striking ``this paragraph'' 
    and inserting ``paragraph (5)''; and
        (2) in paragraph (5)--
            (A) by inserting ``(A)'' after ``(5)'';
            (B) by striking ``in the case of retirements effective 
        during the period beginning on October 17, 1998, and ending on 
        December 31, 2001'' and inserting ``in the case of transfers to 
        the Retired Reserve and discharges of retirement-qualified 
        officers effective during the period beginning on October 1, 
        2002, and ending on December 31, 2003''; and
            (C) by adding at the end (before paragraph (6) as 
        designated by paragraph (1) of this subsection) the following 
        new subparagraphs:
    ``(B) In the case of a person who, upon transfer to the Retired 
Reserve or discharge, is to be credited with satisfactory service in a 
general or flag officer grade under paragraph (1), authority provided 
by the Secretary of Defense to the Secretary of a military department 
under subparagraph (A) may be exercised with respect to that person 
only if approved by the Secretary of Defense or another civilian 
official in the Office of the Secretary of Defense appointed by the 
President, by and with the advice and consent of the Senate.
    ``(C) Authority provided by the Secretary of Defense to the 
Secretary of a military department under subparagraph (A) may be 
delegated within that military department only to a civilian official 
of that military department appointed by the President, by and with the 
advice and consent of the Senate.''.
    (c) Advance Notice to Congress.--Such section is further amended by 
adding at the end the following new subsection:
    ``(e) Advance Notice to Congressional Committees.--(1) In the case 
of an officer to be retired in a grade that is a general or flag 
officer grade who is eligible to retire in that grade only by reason of 
an exercise of authority under paragraph (2) of subsection (a) to 
reduce the three-year service-in-grade requirement otherwise applicable 
under that paragraph, the Secretary of Defense, before the officer is 
retired in that grade, shall notify the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives of the exercise of authority under that paragraph with 
respect to that officer.
    ``(2) In the case of a person to be credited under subsection (d) 
with satisfactory service in a grade that is a general or flag officer 
grade who is eligible to be credited with such service in that grade 
only by reason of an exercise of authority under paragraph (5) of that 
subsection to reduce the three-year service-in-grade requirement 
otherwise applicable under paragraph (3)(A) of that subsection, the 
Secretary of Defense, before the person is credited with such 
satisfactory service in that grade, shall notify the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives of the exercise of authority under paragraph (5) of 
that subsection with respect to that officer.
    ``(3) In the case of an officer to whom subsection (c) applies, the 
requirement for notification under paragraph (1) is satisfied if the 
notification is included in the certification submitted with respect to 
that officer under paragraph (1) of such subsection.''.

SEC. 506. AUTHORITY TO REQUIRE THAT AN OFFICER TAKE LEAVE PENDING 
              REVIEW OF A RECOMMENDATION FOR REMOVAL BY A BOARD OF 
              INQUIRY.

    (a) Requirement.--Section 1182(c) of title 10, United States Code, 
is amended--
        (1) by inserting ``(1)'' after ``(c)''; and
        (2) by adding at the end the following new paragraph:
    ``(2) Under regulations prescribed by the Secretary concerned, an 
officer as to whom a board of inquiry makes a recommendation under 
paragraph (1) that the officer not be retained on active duty may be 
required to take leave pending the completion of the officer's case 
under this chapter. The officer may be required to begin such leave at 
any time following the officer's receipt of the report of the board of 
inquiry, including the board's recommendation for removal from active 
duty, and the expiration of any period allowed for submission by the 
officer of a rebuttal to that report. The leave may be continued until 
the date on which action by the Secretary concerned on the officer's 
case is completed or may be terminated at any earlier time.''.
    (b) Payment for Mandatory Excess Leave Upon Disapproval of Certain 
Involuntary Separation Recommendations.--Chapter 40 of such title is 
amended by inserting after section 707 the following new section:

``Sec. 707a. Payment upon disapproval of certain board of inquiry 
            recommendations for excess leave required to be taken

    ``(a) An officer--
        ``(1) who is required to take leave under section 1182(c)(2) of 
    this title, any period of which is charged as excess leave under 
    section 706(a) of this title, and
        ``(2) whose recommendation for removal from active duty in a 
    report of a board of inquiry is not approved by the Secretary 
    concerned under section 1184 of this title,
shall be paid, as provided in subsection (b), for the period of leave 
charged as excess leave.
    ``(b)(1) An officer entitled to be paid under this section shall be 
deemed, for purposes of this section, to have accrued pay and 
allowances for each day of leave required to be taken under section 
1182(c)(2) of this title that is charged as excess leave (except any 
day of accrued leave for which the officer has been paid under section 
706(b)(1) of this title and which has been charged as excess leave).
    ``(2) The officer shall be paid the amount of pay and allowances 
that is deemed to have accrued to the officer under paragraph (1), 
reduced by the total amount of his income from wages, salaries, tips, 
other personal service income, unemployment compensation, and public 
assistance benefits from any Government agency during the period the 
officer is deemed to have accrued pay and allowances. Except as 
provided in paragraph (3), such payment shall be made within 60 days 
after the date on which the Secretary concerned decides not to remove 
the officer from active duty.
    ``(3) If an officer is entitled to be paid under this section, but 
fails to provide sufficient information in a timely manner regarding 
the officer's income when such information is requested under 
regulations prescribed under subsection (c), the period of time 
prescribed in paragraph (2) shall be extended until 30 days after the 
date on which the member provides the information requested.
    ``(c) This section shall be administered under uniform regulations 
prescribed by the Secretaries concerned. The regulations may provide 
for the method of determining an officer's income during any period the 
officer is deemed to have accrued pay and allowances, including a 
requirement that the officer provide income tax returns and other 
documentation to verify the amount of the officer's income.''.
    (c) Conforming Amendments.--(1) Section 706 of such title is 
amended--
        (A) by inserting ``or 1182(c)(2)'' after ``section 876a'' in 
    subsections (a), (b)(1), (b)(2), and (c); and
        (B) by striking ``section 707'' in subsection (b)(2) and 
    inserting ``sections 707 and 707a''.
    (2) The heading for such section is amended to read as follows:

``Sec. 706. Administration of leave required to be taken''.

    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 40 of such title is amended--
        (1) by striking the item relating to section 706 and inserting 
    the following:

``706. Administration of leave required to be taken.'';

    and
        (2) by inserting after the item relating to section 707 the 
    following new item:

``707a. Payment upon disapproval of certain board of inquiry 
          recommendations for excess leave required to be taken.''.

                Subtitle B--Reserve Component Management

SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH ACCOUNTING AND MANAGEMENT 
              AND OTHER ISSUES.

    (a) Comptroller General Assessments.--Not later than one year after 
the date of the enactment of this Act, the Comptroller General shall 
submit to Congress a report on management of the National Guard. The 
report shall include the following:
        (1) The Comptroller General's assessment of the effectiveness 
    of the implementation of Department of Defense plans for improving 
    management and accounting for personnel strengths in the National 
    Guard, including an assessment of the process that the Department 
    of Defense, the National Guard Bureau, the Army National Guard and 
    State-level National Guard leadership, and leadership in the other 
    reserve components have for identifying and addressing in a timely 
    manner specific units in which nonparticipation rates are 
    significantly in excess of the established norms.
        (2) The Comptroller General's assessment of the effectiveness 
    of the process for Federal recognition of senior National Guard 
    officers and recommendations for improvement to that process.
        (3) The Comptroller General's assessment of the process for, 
    and the nature and extent of, the administrative or judicial 
    corrective action taken by the Secretary of Defense, the Secretary 
    of the Army, and the Secretary of the Air Force as a result of 
    Inspector General investigations or other investigations in which 
    allegations against senior National Guard officers are 
    substantiated in whole or in part.
        (4) The Comptroller General's determination of the 
    effectiveness of the Federal protections provided for members or 
    employees of the National Guard who report allegations of waste, 
    fraud, abuse, or mismanagement and the nature and extent to which 
    corrective action is taken against those in the National Guard who 
    retaliate against such members or employees.
    (b) Secretary of Defense Report on Different Army and Air Force 
Procedures.--Not later than six months after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the differing Army and Air Force policies for taking adverse 
administrative actions against National Guard officers in a State 
status. The report shall include the Secretary's determination as to 
whether changes should be made in those policies.

SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD WHEN NOT IN FEDERAL 
              SERVICE.

    (a) Manner of Prescribing Punishments.--Section 326 of title 32, 
United States Code, is amended by adding at the end the following new 
sentence: ``Punishments shall be as provided by the laws of the 
respective States and Territories, Puerto Rico, and the District of 
Columbia.''.
    (b) Convening Authority.--Section 327 of such title is amended to 
read as follows:

``Sec. 327. Courts-martial of National Guard not in Federal service: 
            convening authority

    ``(a) In the National Guard not in Federal service, general, 
special, and summary courts-martial may be convened as provided by the 
laws of the respective States and Territories, Puerto Rico, and the 
District of Columbia.
    ``(b) In the National Guard not in Federal service--
        ``(1) general courts-martial may be convened by the President;
        ``(2) special courts-martial may be convened--
            ``(A) by the commanding officer of a garrison, fort, post, 
        camp, air base, auxiliary air base, or other place where 
        members of the National Guard are on duty; or
            ``(B) by the commanding officer of a division, brigade, 
        regiment, wing, group, detached battalion, separate squadron, 
        or other detached command; and
        ``(3) summary courts-martial may be convened--
            ``(A) by the commanding officer of a garrison, fort, post, 
        camp, air base, auxiliary air base, or other place where 
        members of the National Guard are on duty; or
            ``(B) by the commanding officer of a division, brigade, 
        regiment, wing, group, detached battalion, detached squadron, 
        detached company, or other detachment.
    ``(c) The convening authorities provided under subsection (b) are 
in addition to the convening authorities provided under subsection 
(a).''.
    (c) Repeal of Superseded and Obsolete Provisions.--(1) Sections 
328, 329, 330, 331, 332, and 333 of title 32, United States Code, are 
repealed.
    (2) The provisions of law repealed by paragraph (1) shall continue 
to apply with respect to courts-martial convened in the National Guard 
not in Federal service before the date of the enactment of this Act.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 3 of such title is amended by striking the items relating to 
sections 327, 328, 329, 330, 331, 332, and 333 and inserting the 
following:

``327. Courts-martial of National Guard not in Federal service: 
          convening authority.''.

    (e) Models for State Code of Military Justice and State Manual for 
Courts-Martial.--(1) The Secretary of Defense shall prepare a model 
State code of military justice and a model State manual for courts-
martial to recommend to the States for use with respect to the National 
Guard not in Federal service. Both such models shall be consistent with 
the recommendations contained in the report that was issued in 1998 by 
the Department of Defense Panel to Study Military Justice in the 
National Guard not in Federal Service.
    (2) The Secretary shall ensure that adequate support for the 
preparation of the model State code of military justice and the model 
State manual for courts-martial (including the detailing of attorneys 
and other personnel) is provided by the General Counsel of the 
Department of Defense, the Secretary of the Army, the Secretary of the 
Air Force, and the Chief of the National Guard Bureau.
    (3) If the funds available to the Chief of the National Guard 
Bureau are insufficient for paying the cost of the National Guard 
Bureau support required under paragraph (2) (including increased costs 
of pay of members of the National Guard for additional active duty 
necessitated by such requirement and increased cost of detailed 
attorneys and other staff, allowances, and travel expenses related to 
such support), the Secretary shall, upon request made by the Chief of 
the Bureau, provide such additional funding as the Secretary determines 
necessary to satisfy the requirement for such support.
    (4) Not later than one year after the date of the enactment of this 
Act, the Secretary shall submit a report on the actions taken to carry 
out this subsection to the Committee on Armed Services of the Senate 
and the Committee on Armed Services of the House of Representatives. 
The report shall include proposals in final form of both the model 
State code of military justice and the model State manual for courts-
martial required by paragraph (1), together with a discussion of the 
efforts being made to present those proposals to the States for their 
consideration for enactment or adoption, respectively.
    (5) In this subsection, the term ``State'' includes the District of 
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and 
Guam.

SEC. 513. FISCAL YEAR 2003 FUNDING FOR MILITARY PERSONNEL COSTS OF 
              RESERVE COMPONENT SPECIAL OPERATIONS FORCES PERSONNEL 
              ENGAGED IN HUMANITARIAN ASSISTANCE ACTIVITIES RELATING TO 
              CLEARING OF LANDMINES.

    (a) Use of Reserve Component Military Personnel Funds.--Fiscal year 
2003 reserve component military personnel funds may be used for 
military personnel expenses of reserve component Special Operations 
forces that are incurred during fiscal year 2003 in connection with 
landmine clearance assistance, notwithstanding section 401(c)(1) of 
title 10, United States Code.
    (b) Reimbursement Requirement.--Fiscal year 2003 reserve component 
military personnel funds shall be reimbursed from fiscal year 2003 
landmine clearance assistance funds for all military personnel expenses 
of reserve component Special Operations forces that are incurred during 
fiscal year 2003 in connection with landmine clearance assistance. Such 
reimbursement shall be made in each instance to the reserve component 
military personnel account that incurred the expense.
    (c) Limitation.--The amount of reserve component military personnel 
expenses incurred during fiscal year 2003 for landmine clearance 
assistance may not exceed 10 percent of the amount of fiscal year 2003 
landmine clearance assistance funds.
    (d) Definitions.--For purposes of this section:
        (1) Landmine clearance assistance.--The term ``landmine 
    clearance assistance'' means humanitarian and civic assistance 
    provided under section 401 of title 10, United States Code, that is 
    described in subsection (e)(5) of that section.
        (2) Fiscal year 2003 landmine clearance assistance funds.--The 
    term ``fiscal year 2003 landmine clearance assistance funds'' means 
    the total amount appropriated for fiscal year 2003 in operations 
    and maintenance accounts of the Department of Defense that is 
    provided for landmine clearance assistance.
        (3) Fiscal year 2003 reserve component military personnel 
    funds.--The term ``fiscal year 2003 reserve component military 
    personnel funds'' means amounts appropriated for fiscal year 2003 
    for military personnel expenses of a reserve component of the 
    Department of Defense.
        (4) Military personnel expenses.--The term ``military personnel 
    expenses'' means expenses properly chargeable to a military 
    personnel account of the Department of Defense.
    (e) Legislative Proposal.--The Secretary of Defense shall submit to 
Congress, as part of the budget request of the Department of Defense 
for fiscal year 2004, a legislative proposal that would ensure that 
military personnel expenses for both active and reserve component 
military personnel providing landmine clearance assistance are 
specified in detail and are budgeted to be authorized and appropriated 
from the appropriate military personnel accounts.

SEC. 514. USE OF RESERVES TO PERFORM DUTIES RELATING TO DEFENSE AGAINST 
              TERRORISM.

    (a) Use of Reserves To Perform Duties Relating to Defense Against 
Terrorism.--Section 12304(b) of title 10, United States Code, is 
amended by striking ``involving'' and all that follows and inserting 
``involving--
        ``(1) a use or threatened use of a weapon of mass destruction; 
    or
        ``(2) a terrorist attack or threatened terrorist attack in the 
    United States that results, or could result, in catastrophic loss 
    of life or property.''.
    (b) Conforming Amendment Relating to Full-Time Support of Guard and 
Reserve Personnel.--Section 12310(c)(1) of such title is amended by 
striking ``involving'' and all that follows and inserting ``involving--
        ``(A) the use of a weapon of mass destruction (as defined in 
    section 12304(i)(2) of this title); or
        ``(B) a terrorist attack or threatened terrorist attack in the 
    United States that results, or could result, in catastrophic loss 
    of life or property.''.

SEC. 515. REPEAL OF PROHIBITION ON USE OF AIR FORCE RESERVE AGR 
              PERSONNEL FOR AIR FORCE BASE SECURITY FUNCTIONS.

    (a) Repeal.--Section 12551 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1215 of such title is amended by striking the item relating to 
section 12551.

         Subtitle C--Reserve Component Officer Personnel Policy

SEC. 521. ELIGIBILITY FOR CONSIDERATION FOR PROMOTION TO GRADE OF MAJOR 
              GENERAL FOR CERTAIN RESERVE COMPONENT BRIGADIER GENERALS 
              WHO DO NOT OTHERWISE QUALIFY FOR CONSIDERATION FOR 
              PROMOTION UNDER THE ONE-YEAR RULE.

    Section 14301(g) of title 10, United States Code, is amended to 
read as follows:
    ``(g) Brigadier Generals.--(1) An officer who is a reserve 
component brigadier general of the Army or the Air Force who is not 
eligible for consideration for promotion under subsection (a) because 
the officer is not on the reserve active status list (as required by 
paragraph (1) of that subsection for such eligibility) is nevertheless 
eligible for consideration for promotion to the grade of major general 
by a promotion board convened under section 14101(a) of this title if--
        ``(A) as of the date of the convening of the promotion board, 
    the officer has been in an inactive status for less than one year; 
    and
        ``(B) immediately before the date of the officer's most recent 
    transfer to an inactive status, the officer had continuously served 
    on the reserve active status list or the active-duty list (or a 
    combination of the reserve active status list and the active-duty 
    list) for at least one year.
    ``(2) An officer who is a reserve component brigadier general of 
the Army or the Air Force who is on the reserve active status list but 
who is not eligible for consideration for promotion under subsection 
(a) because the officer's service does not meet the one-year-of-
continuous-service requirement under paragraph (2) of that subsection 
is nevertheless eligible for consideration for promotion to the grade 
of major general by a promotion board convened under section 14101(a) 
of this title if--
        ``(A) the officer was transferred from an inactive status to 
    the reserve active status list during the one-year period preceding 
    the date of the convening of the promotion board;
        ``(B) immediately before the date of the officer's most recent 
    transfer to an active status, the officer had been in an inactive 
    status for less than one year; and
        ``(C) immediately before the date of the officer's most recent 
    transfer to an inactive status, the officer had continuously served 
    for at least one year on the reserve active status list or the 
    active-duty list (or a combination of the reserve active status 
    list and the active-duty list).''.

SEC. 522. AUTHORITY FOR LIMITED EXTENSION OF MEDICAL DEFERMENT OF 
              MANDATORY RETIREMENT OR SEPARATION OF RESERVE COMPONENT 
              OFFICERS.

    (a) Authority.--Chapter 1407 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 14519. Deferment of retirement or separation for medical reasons

    ``(a) Authority.--If, in the case of an officer required to be 
retired or separated under this chapter or chapter 1409 of this title, 
the Secretary concerned determines that the evaluation of the physical 
condition of the officer and determination of the officer's entitlement 
to retirement or separation for physical disability require 
hospitalization or medical observation and that such hospitalization or 
medical observation cannot be completed with confidence in a manner 
consistent with the officer's well being before the date on which the 
officer would otherwise be required to retire or be separated, the 
Secretary may defer the retirement or separation of the officer.
    ``(b) Period of Deferment.--A deferral of retirement or separation 
under subsection (a) may not extend for more than 30 days after the 
completion of the evaluation requiring hospitalization or medical 
observation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``14519. Deferment of retirement or separation for medical reasons.''.

        Subtitle D--Enlistment, Education, and Training Programs

SEC. 531. ENLISTMENT INCENTIVES FOR PURSUIT OF SKILLS TO FACILITATE 
              NATIONAL SERVICE.

    (a) Authority.--(1) Chapter 31 of title 10, United States Code, is 
amended by inserting after section 509 the following new section:

``Sec. 510. Enlistment incentives for pursuit of skills to facilitate 
            national service

    ``(a) Enlistment Incentive Program.--The Secretary of Defense shall 
carry out an enlistment incentive program in accordance with this 
section under which a person who is a National Call to Service 
participant shall be entitled to one of the incentives specified in 
subsection (e). The program shall be carried out during the period 
ending on December 31, 2007, and may be carried out after that date.
    ``(b) National Call to Service Participant.--In this section, the 
term `National Call to Service participant' means a person who has not 
previously served in the armed forces who enters into an original 
enlistment pursuant to a written agreement with the Secretary of a 
military department (in such form and manner as may be prescribed by 
that Secretary) under which the person agrees to perform a period of 
national service as specified in subsection (c).
    ``(c) National Service.--The total period of national service to 
which a National Call to Service participant is obligated under the 
agreement under this section shall be specified in the agreement. Under 
the agreement, the participant shall--
        ``(1) upon completion of initial entry training (as prescribed 
    by the Secretary of Defense), serve on active duty in a military 
    occupational specialty designated by the Secretary of Defense under 
    subsection (d) for a period of 15 months;
        ``(2) upon completion of the period of active duty specified in 
    paragraph (1) and without a break in service, serve either (A) an 
    additional period of active duty as determined by the Secretary of 
    Defense, or (B) a period of 24 months in an active status in the 
    Selected Reserve; and
        ``(3) upon completion of the period of service specified in 
    paragraph (2), and without a break in service, serve the remaining 
    period of obligated service specified in the agreement--
            ``(A) on active duty in the armed forces;
            ``(B) in the Selected Reserve;
            ``(C) in the Individual Ready Reserve;
            ``(D) in the Peace Corps, Americorps, or another national 
        service program jointly designated by the Secretary of Defense 
        and the head of such program for purposes of this section; or
            ``(E) in any combination of service referred to in 
        subparagraphs (A) through (D) that is approved by the Secretary 
        of the military department concerned pursuant to regulations 
        prescribed by the Secretary of Defense and specified in the 
        agreement.
    ``(d) Designated Military Occupational Specialties.--The Secretary 
of Defense shall designate military occupational specialties for 
purposes of subsection (c)(1). Such military occupational specialties 
shall be military occupational specialties that, as determined by the 
Secretary, will facilitate pursuit of national service by National Call 
to Service participants.
    ``(e) Incentives.--The incentives specified in this subsection are 
as follows:
        ``(1) Payment of a bonus in the amount of $5,000.
        ``(2) Payment in an amount not to exceed $18,000 of outstanding 
    principal and interest on qualifying student loans of the National 
    Call to Service participant.
        ``(3) Entitlement to an allowance for educational assistance at 
    the monthly rate equal to the monthly rate payable for basic 
    educational assistance allowances under section 3015(a)(1) of title 
    38 for a total of 12 months.
        ``(4) Entitlement to an allowance for educational assistance at 
    the monthly rate equal to 50 percent of the monthly rate payable 
    for basic educational assistance allowances under section 
    3015(b)(1) of title 38 for a total of 36 months.
    ``(f) Election of Incentive.--A National Call to Service 
participant shall elect in the agreement under subsection (b) which 
incentive under subsection (e) to receive. An election under this 
subsection is irrevocable.
    ``(g) Payment of Bonus Amounts.--(1) Payment to a National Call to 
Service participant of the bonus elected by the National Call to 
Service participant under subsection (e)(1) shall be made in such time 
and manner as the Secretary of Defense shall prescribe.
    ``(2)(A) Payment of outstanding principal and interest on the 
qualifying student loans of a National Call to Service participant, as 
elected under subsection (e)(2), shall be made in such time and manner 
as the Secretary of Defense shall prescribe.
    ``(B) Payment under this paragraph of the outstanding principal and 
interest on the qualifying student loans of a National Call to Service 
participant shall be made to the holder of such student loans, as 
identified by the National Call to Service participant to the Secretary 
of the military department concerned for purposes of such payment.
    ``(3) Payment of a bonus or incentive in accordance with this 
subsection shall be made by the Secretary of the military department 
concerned.
    ``(h) Coordination With Montgomery GI Bill Benefits.--(1)(A) 
Subject to subparagraph (B), a National Call to Service participant who 
elects an incentive under paragraph (3) or (4) of subsection (e) is not 
entitled to additional educational assistance under chapter 1606 of 
this title or to basic educational assistance under subchapter II of 
chapter 30 of title 38.
    ``(B) If a National Call to Service participant meets all 
eligibility requirements specified in chapter 1606 of this title or 
chapter 30 of title 38 for entitlement to allowances for educational 
assistance under either such chapter, the participant may become 
eligible for allowances for educational assistance benefits under 
either such chapter up to the maximum allowance provided less the total 
amount of allowance paid under paragraph (3) or (4) of subsection (e).
    ``(2)(A) The Secretary of Defense shall, to the maximum extent 
practicable, administer the receipt by National Call to Service 
participants of incentives under paragraph (3) or (4) of subsection (e) 
as if such National Call to Service participants were, in receiving 
such incentives, receiving educational assistance for members of the 
Selected Reserve under chapter 1606 of this title.
    ``(B) The Secretary of Defense shall, in consultation with the 
Secretary of Veterans Affairs, prescribe regulations for purposes of 
subparagraph (A). Such regulations shall, to the maximum extent 
practicable, take into account the administrative provisions of 
chapters 30 and 36 of title 38 that are specified in section 16136 of 
this title.
    ``(3)(A) Except as provided in paragraph (1), nothing in this 
section shall prohibit a National Call to Service participant who 
satisfies through service under subsection (c) the eligibility 
requirements for educational assistance under chapter 1606 of this 
title or basic educational assistance under chapter 30 of title 38 from 
an entitlement to such educational assistance under chapter 1606 of 
this title or basic educational assistance under chapter 30 of title 
38, as the case may be.
    ``(B)(i) A participant who made an election not to receive 
educational assistance under either such chapter at the applicable time 
specified under law or who was denied the opportunity to make an 
election may revoke that election or make an initial election, as the 
case may be, at such time and in such manner as the Secretary concerned 
may specify. A revocation or initial election under the preceding 
sentence is irrevocable.
    ``(ii) The participant making a revocation or initial election 
under clause (i) shall be eligible for educational assistance under 
either such chapter at such time as the participant satisfies through 
service the applicable eligibility requirements under either such 
chapter.
    ``(i) Repayment.--(1) If a National Call to Service participant who 
has entered into an agreement under subsection (b) and received or 
benefited from an incentive under subsection (e)(1) or (e)(2) fails to 
complete the total period of service specified in such agreement, the 
National Call to Service participant shall refund to the United States 
the amount that bears the same ratio to the amount of the incentive as 
the uncompleted part of such service bears to the total period of such 
service.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
reimbursement required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered into 
less than five years after the termination of an agreement entered into 
under subsection (b) does not discharge the person signing the 
agreement from a debt arising under the agreement or under paragraph 
(1).
    ``(j) Funding.--Amounts for payment of incentives under subsection 
(e), including payment of allowances for educational assistance under 
that subsection, shall be derived from amounts available to the 
Secretary of the military department concerned for payment of pay, 
allowances, and other expenses of the members of the armed force 
concerned.
    ``(k) Regulations.--The Secretary of Defense and the Secretaries of 
the military departments shall prescribe regulations for purposes of 
the program under this section.
    ``(l) Definitions.--In this section:
        ``(1) The term `Americorps' means the Americorps program 
    carried out under subtitle C of title I of the National and 
    Community Service Act of 1990 (42 U.S.C. 12571 et seq.).
        ``(2) The term `qualifying student loan' means a loan, the 
    proceeds of which were used to pay any part or all of the cost of 
    attendance (as defined in section 472 of the Higher Education Act 
    of 1965 (20 U.S.C. 1087ll) at an institution of higher education 
    (as defined in section 101 of the Higher Education Act of 1965 (20 
    U.S.C. 1001).
        ``(3) The term `Secretary of a military department' includes, 
    with respect to matters concerning the Coast Guard when it is not 
    operating as a service in the Navy, the Secretary of the Department 
    in which the Coast Guard is operating.''.
    (2) The table of sections at the beginning of that chapter is 
amended by inserting after the item relating to section 509 the 
following new item:

``510. Enlistment incentives for pursuit of skills to facilitate 
          national service.''.

    (b) Commencement of Program.--The Secretary of Defense shall 
prescribe the date on which the program provided for section 510 of 
title 10, United States Code, as added by subsection (a), shall 
commence. Such date shall be not later than October 1, 2003.
    (c) Conforming Repeal.--Section 3264 of title 10, United States 
Code, is repealed. The table of sections at the beginning of chapter 
333 of such title is amended by striking the item relating to section 
3264.
    (d) Implementation Report.--Not later than March 31, 2003, the 
Secretary of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report on the 
Secretary's plans for implementation of section 510 of title 10, United 
States Code, as added by subsection (a).
    (e) Effectiveness Reports.--Not later than March 31, 2005, and 
March 31, 2007, the Secretary of Defense shall submit to the committees 
specified in subsection (d) reports on the effectiveness of the program 
under section 510 of title 10, United States Code, as added by 
subsection (a), in attracting new recruits to national service.

SEC. 532. AUTHORITY FOR PHASED INCREASE TO 4,400 IN AUTHORIZED 
              STRENGTHS FOR THE SERVICE ACADEMIES.

    (a) Military Academy.--Section 4342 of title 10, United States 
Code, is amended--
        (1) in subsection (a), by inserting before the period at the 
    end of the first sentence the following: ``or such higher number as 
    may be prescribed by the Secretary of the Army under subsection 
    (j)''; and
        (2) by adding at the end the following new subsection:
    ``(j)(1) Beginning with the 2003-2004 academic year, the Secretary 
of the Army may prescribe annual increases in the cadet strength limit 
in effect under subsection (a). For any academic year, any such 
increase shall be by no more than 100 cadets or such lesser number as 
applies under paragraph (3) for that year. Such annual increases may be 
prescribed until the cadet strength limit is 4,400. However, no 
increase may be prescribed for any academic year after the 2007-2008 
academic year.
    ``(2) Any increase in the cadet strength limit under paragraph (1) 
with respect to an academic year shall be prescribed not later than the 
date on which the budget of the President is submitted to Congress 
under section 1105 of title 31 for the fiscal year beginning in the 
same year as the year in which that academic year begins. Whenever the 
Secretary prescribes such an increase, the Secretary shall submit to 
Congress a notice in writing of the increase. The notice shall state 
the amount of the increase in the cadet strength limit and the new 
cadet strength limit, as so increased, and the amount of the increase 
in Senior Army Reserve Officers' Training Corps enrollment under each 
of sections 2104 and 2107 of this title.
    ``(3) The amount of an increase under paragraph (1) in the cadet 
strength limit for an academic year may not exceed the increase (if 
any) for the preceding academic year in the total number of cadets 
enrolled in the Army Senior Reserve Officers' Training Corps program 
under chapter 103 of this title who have entered into an agreement 
under section 2104 or 2107 of this title.
    ``(4) In this subsection, the term `cadet strength limit' means the 
authorized maximum strength of the Corps of Cadets of the Academy.''.
    (b) Naval Academy.--Section 6954 of title 10, United States Code, 
is amended--
        (1) in subsection (a), by inserting before the period at the 
    end of the first sentence the following: ``or such higher number as 
    may be prescribed by the Secretary of the Navy under subsection 
    (h)''; and
        (2) by adding at the end the following new subsection:
    ``(h)(1) Beginning with the 2003-2004 academic year, the Secretary 
of the Navy may prescribe annual increases in the midshipmen strength 
limit in effect under subsection (a). For any academic year, any such 
increase shall be by no more than 100 midshipmen or such lesser number 
as applies under paragraph (3) for that year. Such annual increases may 
be prescribed until the midshipmen strength limit is 4,400. However, no 
increase may be prescribed for any academic year after the 2007-2008 
academic year.
    ``(2) Any increase in the midshipmen strength limit under paragraph 
(1) with respect to an academic year shall be prescribed not later than 
the date on which the budget of the President is submitted to Congress 
under section 1105 of title 31 for the fiscal year beginning in the 
same year as the year in which that academic year begins. Whenever the 
Secretary prescribes such an increase, the Secretary shall submit to 
Congress a notice in writing of the increase. The notice shall state 
the amount of the increase in the midshipmen strength limit and the new 
midshipmen strength limit, as so increased, and the amount of the 
increase in Senior Navy Reserve Officers' Training Corps enrollment 
under each of sections 2104 and 2107 of this title.
    ``(3) The amount of an increase under paragraph (1) in the 
midshipmen strength limit for an academic year may not exceed the 
increase (if any) for the preceding academic year in the total number 
of midshipmen enrolled in the Navy Senior Reserve Officers' Training 
Corps program under chapter 103 of this title who have entered into an 
agreement under section 2104 or 2107 of this title.
    ``(4) In this subsection, the term `midshipmen strength limit' 
means the authorized maximum strength of the Brigade of Midshipmen.''.
    (c) Air Force Academy.--Section 9342 of title 10, United States 
Code, is amended--
        (1) in subsection (a), by inserting before the period at the 
    end of the first sentence the following: ``or such higher number as 
    may be prescribed by the Secretary of the Air Force under 
    subsection (j)''; and
        (2) by adding at the end the following new subsection:
    ``(j)(1) Beginning with the 2003-2004 academic year, the Secretary 
of the Air Force may prescribe annual increases in the cadet strength 
limit in effect under subsection (a). For any academic year, any such 
increase shall be by no more than 100 cadets or such lesser number as 
applies under paragraph (3) for that year. Such annual increases may be 
prescribed until the cadet strength limit is 4,400. However, no 
increase may be prescribed for any academic year after the 2007-2008 
academic year.
    ``(2) Any increase in the cadet strength limit under paragraph (1) 
with respect to an academic year shall be prescribed not later than the 
date on which the budget of the President is submitted to Congress 
under sections 1105 of title 31 for the fiscal year beginning in the 
same year as the year in which that academic year begins. Whenever the 
Secretary prescribes such an increase, the Secretary shall submit to 
Congress a notice in writing of the increase. The notice shall state 
the amount of the increase in the cadet strength limit and the new 
cadet strength limit, as so increased, and the amount of the increase 
in Senior Air Force Reserve Officers' Training Corps enrollment under 
each of sections 2104 and 2107 of this title.
    ``(3) The amount of an increase under paragraph (1) in the cadet 
strength limit for an academic year may not exceed the increase (if 
any) for the preceding academic year in the total number of cadets 
enrolled in the Air Force Senior Reserve Officers' Training Corps 
program under chapter 103 of this title who have entered into an 
agreement under section 2104 or 2107 of this title.
    ``(4) In this subsection, the term `cadet strength limit' means the 
authorized maximum strength of Air Force Cadets of the Academy.''.
    (d) Target for Increases in Number of ROTC Scholarship 
Participants.--Section 2107 of such title is amended by adding at the 
end the following new subsection:
    ``(i) The Secretary of each military department shall seek to 
achieve an increase in the number of agreements entered into under this 
section so as to achieve an increase, by the 2006-2007 academic year, 
of not less than 400 in the number of cadets or midshipmen, as the case 
may be, enrolled under this section, compared to such number enrolled 
for the 2002-2003 academic year. In the case of the Secretary of the 
Navy, the Secretary shall seek to ensure that not less than one-third 
of such increase in agreements under this section are with students 
enrolled (or seeking to enroll) in programs of study leading to a 
baccalaureate degree in nuclear engineering or another appropriate 
technical, scientific, or engineering field of study.''.
    (e) Repeal of Limit on Number of ROTC Scholarships.--Section 2107 
of such title is further amended by striking the first sentence of 
subsection (h)(1).
    (f) Repeal of Obsolete Language.--Section 4342(i) of such title is 
amended by striking ``(beginning with the 2001-2002 academic year)''.

SEC. 533. ENHANCEMENT OF RESERVE COMPONENT DELAYED TRAINING PROGRAM.

    (a) Increase in Time Following Enlistment for Commencement of 
Initial Period of Active Duty for Training.--Section 12103(d) of title 
10, United States Code, is amended by striking ``270 days'' in the last 
sentence and inserting ``one year''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to enlistments under section 12103(d) of title 10, 
United States Code, after the end of the 90-day period beginning on the 
date of the enactment of this Act.
    (c) Transition.--In the case of a person who enlisted under section 
12103(d) of title 10, United States Code, before the date of the 
enactment of this Act and who as of such date has not commenced the 
required initial period of active duty for training under that section, 
the amendment made by subsection (a) may be applied to that person, but 
only with the agreement of that person and the Secretary concerned.

SEC. 534. REVIEW OF ARMED FORCES PROGRAMS FOR PREPARATION FOR, 
              PARTICIPATION IN, AND CONDUCT OF ATHLETIC COMPETITIONS.

    (a) Requirement for Review.--The Secretary of Defense shall conduct 
a comprehensive review of the programs of the active and reserve 
components of the Armed Forces for preparation for, participation in, 
and conduct of athletic competitions.
    (b) Consideration of Funding.--The matters reviewed under 
subsection (a) shall include the funding sources that are currently 
available for the programs referred to in such subsection and any 
relevant limitations on the use of such funding sources.
    (c) Report.--Not later than March 3, 2003, the Secretary shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the Secretary's findings and conclusions 
resulting from the review. The report shall include the following 
matters:
        (1) The Secretary's views on the adequacy of the existing 
    funding sources for the programs referred to in subsection (a).
        (2) Any recommendations that the Secretary may have regarding 
    limitations on the use of such funding sources or any inadequacies 
    in the funding for such programs.
        (3) An assessment of the issues related to, and recommendations 
    of the Secretary for, achieving consistent funding and policy 
    treatment with regard to participation by active and reserve 
    component personnel in athletic competitions.
        (4) Any recommended legislation that the Secretary considers 
    appropriate regarding such programs.

SEC. 535. REPEAL OF BAR TO ELIGIBILITY OF ARMY COLLEGE FIRST PROGRAM 
              PARTICIPANTS FOR BENEFITS UNDER STUDENT LOAN REPAYMENT 
              PROGRAM.

    Subsection (e) of section 573 of the National Defense Authorization 
Act for Fiscal Year 2000 (Public Law 106-65; 10 U.S.C. 513 note) is 
repealed.

                   Subtitle E--Decorations and Awards

SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF ARMY DISTINGUISHED-
              SERVICE CROSS TO CERTAIN PERSONS.

    (a) Waiver.--Any limitation established by law or policy for the 
time within which a recommendation for the award of a military 
decoration or award must be submitted shall not apply to awards of 
decorations described in subsection (b), the award of each such 
decoration having been determined by the Secretary of the Army to be 
warranted in accordance with section 1130 of title 10, United States 
Code.
    (b) Distinguished-Service Cross of the Army.--Subsection (a) 
applies to the award of the Distinguished-Service Cross of the Army as 
follows:
        (1) To Henry Johnson of Albany, New York, for extraordinary 
    heroism in France during the period of May 13 to 15, 1918, while 
    serving as a member of the Army.
        (2) To Hilliard Carter of Jackson, Mississippi, for 
    extraordinary heroism in actions near Troung Loung, Republic of 
    Vietnam, on September 28, 1966, while serving as a member of the 
    Army.
        (3) To Albert C. Welch of Florrisant, Colorado, for 
    extraordinary heroism in actions in Ong Thanh, Binh Long Province, 
    Republic of Vietnam, on October 17, 1967, while serving as a member 
    of the Army.

SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES EXPEDITIONARY MEDAL 
              AWARDED FOR OPERATION FREQUENT WIND TO VIETNAM SERVICE 
              MEDAL.

    (a) In General.--The Secretary of the military department concerned 
shall, upon the application of an individual who is an eligible Vietnam 
evacuation veteran, award that individual the Vietnam Service Medal, 
notwithstanding any otherwise applicable requirements for the award of 
that medal. Any such award shall be made in lieu of the Armed Forces 
Expeditionary Medal awarded the individual for participation in 
Operation Frequent Wind.
    (b) Eligible Vietnam Evacuation Veteran.--For purposes of this 
section, the term ``eligible Vietnam evacuation veteran'' means a 
member or former member of the Armed Forces who was awarded the Armed 
Forces Expeditionary Medal for participation in military operations 
designated as Operation Frequent Wind arising from the evacuation of 
Vietnam on April 29 and 30, 1975.

SEC. 543. KOREA DEFENSE SERVICE MEDAL.

    (a) Findings.--Congress makes the following findings:
        (1) More than 40,000 members of the United States Armed Forces 
    have served in the Republic of Korea or the waters adjacent thereto 
    each year since the signing of the cease-fire agreement in July 
    1953 ending the Korean War.
        (2) An estimated 1,200 members of the United States Armed 
    Forces have died as a direct result of their service in Korea since 
    the cease-fire agreement in July 1953.
    (b) Army.--(1) Chapter 357 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 3755. Korea Defense Service Medal

    ``(a) The Secretary of the Army shall issue a campaign medal, to be 
known as the Korea Defense Service Medal, to each person who while a 
member of the Army served in the Republic of Korea or the waters 
adjacent thereto during the KDSM eligibility period and met the service 
requirements for the award of that medal prescribed under subsection 
(c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Army shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in 
which the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``3755. Korea Defense Service Medal.''.

    (c) Navy and Marine Corps.--(1) Chapter 567 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 6257. Korea Defense Service Medal

    ``(a) The Secretary of the Navy shall issue a campaign medal, to be 
known as the Korea Defense Service Medal, to each person who while a 
member of the Navy or Marine Corps served in the Republic of Korea or 
the waters adjacent thereto during the KDSM eligibility period and met 
the service requirements for the award of that medal prescribed under 
subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Navy shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in 
which the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``6257. Korea Defense Service Medal.''.

    (d) Air Force.--(1) Chapter 857 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 8755. Korea Defense Service Medal

    ``(a) The Secretary of the Air Force shall issue a campaign medal, 
to be known as the Korea Defense Service Medal, to each person who 
while a member of the Air Force served in the Republic of Korea or the 
waters adjacent thereto during the KDSM eligibility period and met the 
service requirements for the award of that medal prescribed under 
subsection (c).
    ``(b) In this section, the term `KDSM eligibility period' means the 
period beginning on July 28, 1954, and ending on such date after the 
date of the enactment of this section as may be determined by the 
Secretary of Defense to be appropriate for terminating eligibility for 
the Korea Defense Service Medal.
    ``(c) The Secretary of the Air Force shall prescribe service 
requirements for eligibility for the Korea Defense Service Medal. Those 
requirements shall not be more stringent than the service requirements 
for award of the Armed Forces Expeditionary Medal for instances in 
which the award of that medal is authorized.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``8755. Korea Defense Service Medal.''.

    (e) Award for Service Before Date of Enactment.--The Secretary of 
the military department concerned shall take appropriate steps to 
provide in a timely manner for the issuance of the Korea Defense 
Service Medal, upon application therefor, to persons whose eligibility 
for that medal is by reason of service in the Republic of Korea or the 
waters adjacent thereto before the date of the enactment of this Act.

SEC. 544. COMMENDATION OF MILITARY CHAPLAINS.

    (a) Findings.--Congress finds the following:
        (1) Military chaplains have served with those who fought for 
    the cause of freedom since the founding of the Nation.
        (2) Military chaplains and religious support personnel of the 
    Armed Forces have served with distinction as uniformed members of 
    the Armed Forces in support of the Nation's defense missions during 
    every conflict in the history of the United States.
        (3) 400 United States military chaplains have died in combat, 
    some as a result of direct fire while ministering to fallen 
    Americans, while others made the ultimate sacrifice as a prisoner 
    of war.
        (4) Military chaplains currently serve in humanitarian 
    operations, rotational deployments, and in the war on terrorism.
        (5) Religious organizations make up the very fabric of 
    religious diversity and represent unparalleled levels of freedom of 
    conscience, speech, and worship that set the United States apart 
    from any other nation on Earth.
        (6) Religious organizations have richly blessed the uniformed 
    services by sending clergy to comfort and encourage all persons of 
    faith in the Armed Forces.
        (7) During the sinking of the USS Dorchester in February 1943 
    during World War II, four chaplains (Reverend Fox, Reverend Poling, 
    Father Washington, and Rabbi Goode) gave their lives so that others 
    might live.
        (8) All military chaplains aid and assist members of the Armed 
    Forces and their family members with the challenging issues of 
    today's world.
        (9) The current war against terrorism has brought to the shores 
    of the United States new threats and concerns that strike at the 
    beliefs and emotions of Americans.
        (10) Military chaplains must, as never before, deal with the 
    spiritual well-being of the members of the Armed Forces and their 
    families.
    (b) Commendation.--Congress, on behalf of the Nation, expresses its 
appreciation for the outstanding contribution that all military 
chaplains make to the members of the Armed Forces and their families.
    (c) Presidential Proclamation.--The President is authorized and 
requested to issue a proclamation calling on the people of the United 
States to recognize the distinguished service of the Nation's military 
chaplains.

                   Subtitle F--Administrative Matters

SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRISONER OF WAR/MISSING 
              PERSONNEL OFFICE.

    (a) Requirement for Staffing and Funding At Levels Required for 
Performance of Full Range of Missions.--Subsection (a) of section 1501 
of title 10, United States Code, is amended by adding at the end the 
following new paragraph:
    ``(5)(A) The Secretary of Defense shall ensure that the office is 
provided sufficient military and civilian personnel, and sufficient 
funding, to enable the office to fully perform the complete range of 
missions of the office. The Secretary shall ensure that Department of 
Defense programming, planning, and budgeting procedures are structured 
so as to ensure compliance with the preceding sentence for each fiscal 
year.
    ``(B) For any fiscal year, the number of military and civilian 
personnel assigned or detailed to the office may not be less than the 
number requested in the President's budget for fiscal year 2003, unless 
a level below such number is expressly required by law.
    ``(C) For any fiscal year, the level of funding allocated to the 
office within the Department of Defense may not be below the level 
requested for such purposes in the President's budget for fiscal year 
2003, unless such a level of funding is expressly required by law.''.
    (b) Name of Office.--Such subsection is further amended by 
inserting after the first sentence of paragraph (1) the following new 
sentence: ``Such office shall be known as the Defense Prisoner of War/
Missing Personnel Office.''.

SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PERSONNEL OF AGENCIES 
              RESPONSIBLE FOR REVIEW AND CORRECTION OF MILITARY 
              RECORDS.

    (a) In General.--Chapter 79 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1559. Personnel limitation

    ``(a) Limitation.--During fiscal years 2003, 2004, and 2005, the 
Secretary of a military department may not carry out any reduction in 
the number of military and civilian personnel assigned to duty with the 
service review agency for that military department below the baseline 
number for that agency until--
        ``(1) the Secretary submits to Congress a report that--
            ``(A) describes the reduction proposed to be made;
            ``(B) provides the Secretary's rationale for that 
        reduction; and
            ``(C) specifies the number of such personnel that would be 
        assigned to duty with that agency after the reduction; and
        ``(2) a period of 90 days has elapsed after the date on which 
    the report is submitted.
    ``(b) Baseline Number.--The baseline number for a service review 
agency under this section is--
        ``(1) for purposes of the first report with respect to a 
    service review agency under this section, the number of military 
    and civilian personnel assigned to duty with that agency as of 
    January 1, 2002; and
        ``(2) for purposes of any subsequent report with respect to a 
    service review agency under this section, the number of such 
    personnel specified in the most recent report with respect to that 
    agency under this section.
    ``(c) Service Review Agency Defined.--In this section, the term 
`service review agency' means--
        ``(1) with respect to the Department of the Army, the Army 
    Review Boards Agency;
        ``(2) with respect to the Department of the Navy, the Board for 
    Correction of Naval Records; and
        ``(3) with respect to the Department of the Air Force, the Air 
    Force Review Boards Agency.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1559. Personnel limitation.''.

SEC. 553. AUTHORITY FOR ACCEPTANCE OF VOLUNTARY SERVICES OF INDIVIDUALS 
              AS PROCTORS FOR ADMINISTRATION OF ARMED SERVICES 
              VOCATIONAL APTITUDE BATTERY TEST.

    Section 1588(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
        ``(6) Voluntary services as a proctor for administration to 
    secondary school students of the test known as the `Armed Services 
    Vocational Aptitude Battery'.''.

SEC. 554. EXTENSION OF TEMPORARY EARLY RETIREMENT AUTHORITY.

    Effective January 1, 2002, section 4403(i) of the National Defense 
Authorization Act for Fiscal Year 1993 (10 U.S.C. 1293 note) is amended 
by striking ``December 31, 2001'' and inserting ``September 1, 2002''.

   Subtitle G--Matters Relating to Minorities and Women in the Armed 
                                 Forces

SEC. 561. SURVEYS OF RACIAL AND ETHNIC ISSUES AND OF GENDER ISSUES IN 
              THE ARMED FORCES.

    (a) Division of Annual Survey Into Four Quadrennial Surveys.--(1) 
Section 481 of title 10, United States Code, is amended to read as 
follows:

``Sec. 481. Racial and ethnic issues; gender issues: surveys

    ``(a) In General.--(1) The Secretary of Defense shall carry out 
four quadrennial surveys (each in a separate year) in accordance with 
this section to identify and assess racial and ethnic issues and 
discrimination, and to identify and assess gender issues and 
discrimination, among members of the armed forces. Each such survey 
shall be conducted so as to identify and assess the extent (if any) of 
activity among such members that may be seen as so-called `hate group' 
activity.
    ``(2) The four surveys shall be as follows:
        ``(A) To identify and assess racial and ethnic issues and 
    discrimination among members of the armed forces serving on active 
    duty.
        ``(B) To identify and assess racial and ethnic issues and 
    discrimination among members of the armed forces in the reserve 
    components.
        ``(C) To identify and assess gender issues and discrimination 
    among members of the armed forces serving on active duty.
        ``(D) To identify and assess gender issues and discrimination 
    members of the armed forces in the reserve components.
    ``(3) The surveys under this section relating to racial and ethnic 
issues and discrimination shall be known as the `Armed Forces Workplace 
and Equal Opportunity Surveys'. The surveys under this section relating 
to gender issues and discrimination shall be known as the `Armed Forces 
Workplace and Gender Relations Surveys'.
    ``(4) Each survey under this section shall be conducted separately 
from any other survey conducted by the Department of Defense.
    ``(b) Armed Forces Workplace and Equal Opportunity Surveys.--The 
Armed Forces Workplace and Equal Opportunity Surveys shall be conducted 
so as to solicit information on racial and ethnic issues, including 
issues relating to harassment and discrimination, and the climate in 
the armed forces for forming professional relationships among members 
of the armed forces of various racial and ethnic groups. Both such 
surveys shall be conducted so as to solicit information on the 
following:
        ``(1) Indicators of positive and negative trends for 
    professional and personal relationships among members of all racial 
    and ethnic groups.
        ``(2) The effectiveness of Department of Defense policies 
    designed to improve relationships among all racial and ethnic 
    groups.
        ``(3) The effectiveness of current processes for complaints on 
    and investigations into racial and ethnic discrimination.
    ``(c) Armed Forces Workplace and Gender Relations Surveys.--The 
Armed Forces Workplace and Gender Relations Surveys shall be conducted 
so as to solicit information on gender issues, including issues 
relating to gender-based harassment and discrimination, and the climate 
in the armed forces for forming professional relationships between male 
and female members of the armed forces. Both such surveys shall be 
conducted so as to solicit information on the following:
        ``(1) Indicators of positive and negative trends for 
    professional and personal relationships between male and female 
    members of the armed forces.
        ``(2) The effectiveness of Department of Defense policies 
    designed to improve professional relationships between male and 
    female members of the armed forces.
        ``(3) The effectiveness of current processes for complaints on 
    and investigations into gender-based discrimination.
    ``(d) Surveys To Be Conducted in Different Years.--Each of the four 
quadrennial surveys conducted under this section shall be conducted in 
a different year from any other survey conducted under this section, so 
that one such survey is conducted during each year.
    ``(e) Reports to Congress.--Upon the completion of a survey under 
this section, the Secretary shall submit to Congress a report 
containing the results of the survey.
    ``(f) Inapplicability to Coast Guard.--This section does not apply 
to the Coast Guard.''.
    (2) The item relating to such section in the table of sections at 
the beginning of chapter 23 of such title is amended to read as 
follows:

``481. Racial and ethnic issues; gender issues: surveys.''.

    (b) Effective Date.--The first survey under section 481 of title 
10, United States Code, as amended by subsection (a)(1), shall be 
carried out during 2003.

SEC. 562. ANNUAL REPORT ON STATUS OF FEMALE MEMBERS OF THE ARMED 
              FORCES.

    (a) Requirement for Report.--The Secretary of Defense shall submit 
to Congress, for each of fiscal years 2002 through 2006, a report on 
the status of female members of the Armed Forces. Information in the 
annual report shall be shown for the Department of Defense as a whole 
and separately for each of the Army, Navy, Air Force, and Marine Corps.
    (b) Matters To Be Included.--The report for a fiscal year under 
subsection (a) shall include the following information:
        (1) The positions, weapon systems, and fields of skills for 
    which, by policy, female members are not eligible for assignment, 
    as follows:
            (A) In the report for fiscal year 2002--
                (i) an identification of each position, weapon system, 
            and field of skills for which, by policy, female members 
            are not eligible; and
                (ii) the rationale for the applicability of the policy 
            to each such position, weapon system, and field.
            (B) In the report for each fiscal year after fiscal year 
        2002, the positions, weapon systems, and fields for which 
        policy on the eligibility of female members for assignment has 
        changed during that fiscal year, including a discussion of how 
        the policy has changed and the rationale for the change.
        (2) Information on joint spouse assignments, as follows:
            (A) The number of cases in which members of the Armed 
        Forces married to each other are in assignments to which they 
        were jointly assigned during that fiscal year, as defined in 
        the applicable Department of Defense and military department 
        personnel assignment policies.
            (B) The number of cases in which members of the Armed 
        Forces married to each other are in assignments to which they 
        were assigned during that fiscal year, but were not jointly 
        assigned (as so defined).
        (3) Promotion selection rates for female members, for male 
    members, and for all personnel in the reports submitted by 
    promotion selection boards in that fiscal year for promotion to 
    grades E-7, E-8, and E-9, and, in the case of commissioned 
    officers, promotion to grades O-4, O-5, and O-6.
        (4) Retention rates for female members in each grade and for 
    male members in each grade during that fiscal year.
        (5) Selection rates for female members and for male members for 
    assignment to grade O-6 and grade O-5 command positions in reports 
    of command selection boards that were submitted during that fiscal 
    year.
        (6) Selection rates for female members and for male members for 
    attendance at intermediate service schools (ISS) and, separately, 
    for attendance at senior service schools (SSS) in reports of 
    selection boards that were submitted during that fiscal year.
        (7) The extent of assignments of female members during that 
    fiscal year in each field in which at least 80 percent of the Armed 
    Forces personnel assigned in the field are men.
        (8) The incidence of sexual harassment complaints made during 
    that fiscal year, stated as the number of cases in which complaints 
    of sexual harassment were filed under procedures of military 
    departments that are applicable to the submission of sexual 
    harassment complaints, together with the number and percent of the 
    complaints that were substantiated.
        (9) Satisfaction (based on surveys) of female active-duty 
    members, female dependents of active-duty members, and female 
    dependents of nonactive duty members entitled to health care 
    provided by the Department of Defense with access to, and quality 
    of, women's health care benefits provided by the Department of 
    Defense.
    (c) Time for Report.--The report for a fiscal year under this 
section shall be submitted not later than 120 days after the end of 
that fiscal year.

SEC. 563. WEAR OF ABAYAS BY FEMALE MEMBERS OF THE ARMED FORCES IN SAUDI 
              ARABIA.

    (a) Prohibition Relating to Wear of Abayas.--No member of the Armed 
Forces having authority over a member of the Armed Forces and no 
officer or employee of the United States having authority over a member 
of the Armed Forces may require or encourage that member to wear the 
abaya garment or any part of the abaya garment while the member is in 
the Kingdom of Saudi Arabia pursuant to a permanent change of station 
or orders for temporary duty.
    (b) Instruction.--(1) The Secretary of Defense shall provide each 
female member of the Armed Forces ordered to a permanent change of 
station or temporary duty in the Kingdom of Saudi Arabia with 
instruction regarding the prohibition in subsection (a). Such 
instruction shall be provided immediately upon or not more than 48 
hours prior to the arrival of the member at a United States military 
installation within the Kingdom of Saudi Arabia. The instruction shall 
be presented orally and in writing. The written instruction shall 
include the full text of this section.
    (2) In carrying out paragraph (1), the Secretary shall act through 
the Commander in Chief, United States Central Command and Joint Task 
Force Southwest Asia, and the commanders of the Army, Navy, Air Force, 
and Marine Corps components of the United States Central Command and 
Joint Task Force Southwest Asia.
    (c) Prohibition on Use of Funds for Procurement of Abayas.--Funds 
appropriated or otherwise made available to the Department of Defense 
may not be used to procure abayas for regular or routine issuance to 
members of the Armed Forces serving in the Kingdom of Saudi Arabia or 
for any personnel of contractors accompanying the Armed Forces in the 
Kingdom of Saudi Arabia in the performance of contracts entered into by 
the United States with such contractors.

                          Subtitle H--Benefits

SEC. 571. DEPARTMENT OF DEFENSE SUPPORT FOR PERSONS PARTICIPATING IN 
              MILITARY FUNERAL HONORS DETAILS.

    Section 1491(d) of title 10, United States Code, is amended--
        (1) by striking ``To provide a'' after ``Support.--'' and 
    inserting ``(1) To support a'';
        (2) by redesignating paragraph (1) as subparagraph (A) and 
    amending such subparagraph, as so redesignated, to read as follows:
        ``(A) For a person who participates in a funeral honors detail 
    (other than a person who is a member of the armed forces not in a 
    retired status or an employee of the United States), either 
    transportation (or reimbursement for transportation) and expenses 
    or the daily stipend prescribed under paragraph (2).'';
        (3) by redesignating paragraph (2) as subparagraph (B) and in 
    that subparagraph--
            (A) by striking ``Materiel, equipment, and training for'' 
        and inserting ``For''; and
            (B) by inserting before the period at the end ``and for 
        members of the armed forces in a retired status, materiel, 
        equipment, and training'';
        (4) by redesignating paragraph (3) as subparagraph (C) and in 
    that subparagraph--
            (A) by striking ``Articles of clothing for'' and inserting 
        ``For''; and
            (B) by inserting ``, articles of clothing'' after 
        ``subsection (b)(2)''; and
        (5) by adding at the end the following new paragraphs:
    ``(2) The Secretary of Defense shall prescribe annually a flat rate 
daily stipend for purposes of paragraph (1)(A). Such stipend shall be 
set at a rate so as to encompass typical costs for transportation and 
other miscellaneous expenses for persons participating in funeral 
honors details who are members of the armed forces in a retired status 
and other persons who are not members of the armed forces or employees 
of the United States.
    ``(3) A stipend paid under this subsection to a member of the armed 
forces in a retired status is in addition to any compensation to which 
the member is entitled under section 435(a)(2) of title 37 and any 
other compensation to which the member may be entitled.''.

SEC. 572. EMERGENCY LEAVE OF ABSENCE PROGRAM.

    (a) In General.--Chapter 40 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 709. Emergency leave of absence

    ``(a) Emergency Leave of Absence.--The Secretary concerned may 
grant a member of the armed forces emergency leave of absence for a 
qualifying emergency.
    ``(b) Limitations.--An emergency leave of absence under this 
section--
        ``(1) may be granted only once for any member;
        ``(2) may be granted only to prevent the member from entering 
    unearned leave status or excess leave status; and
        ``(3) may not extend for a period of more than 14 days.
    ``(c) Qualifying Emergency.--In this section, the term `qualifying 
emergency', with respect to a member of the armed forces, means a 
circumstance that--
        ``(1) is due to--
            ``(A) a medical condition of a member of the immediate 
        family of the member; or
            ``(B) any other hardship that the Secretary concerned 
        determines appropriate for purposes of this section; and
        ``(2) is verified to the Secretary's satisfaction based upon 
    information or opinion from a source in addition to the member that 
    the Secretary considers to be objective and reliable.
    ``(d) Military Department Regulations.--Regulations prescribed 
under this section by the Secretaries of the military department shall 
be as uniform as practicable and shall be subject to approval by the 
Secretary of Defense.
    ``(e) Definitions.--In this section:
        ``(1) The term `unearned leave status' means leave approved to 
    be used by a member of the armed forces that exceeds the amount of 
    leave credit that has been accrued as a result of the member's 
    active service and that has not been previously used by the member.
        ``(2) The term `excess leave status' means leave approved to be 
    used by a member of the armed forces that is unearned leave for 
    which a member is unable to accrue leave credit during the member's 
    current term of service before the member's separation.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``709. Emergency leave of absence.''.

SEC. 573. ENHANCED FLEXIBILITY IN MEDICAL LOAN REPAYMENT PROGRAM.

    (a) Eligible Persons.--Subsection (d) of section 2173 of title 10, 
United States Code, is amended by striking ``Participants'' and all 
that follows through ``and students'' and inserting ``Students''.
    (b) Loan Repayment Amounts.--Subsection (e)(2) of such section is 
amended by striking the last sentence.

SEC. 574. DESTINATIONS AUTHORIZED FOR GOVERNMENT PAID TRANSPORTATION OF 
              ENLISTED PERSONNEL FOR REST AND RECUPERATION ABSENCE UPON 
              EXTENDING DUTY AT DESIGNATED LOCATIONS OVERSEAS.

    (a) Expansion of Benefits.--Subsection (b)(2) of section 705 of 
title 10, United States Code, is amended by inserting before the period 
at the end the following: ``, or to an alternative destination and 
return at a cost not to exceed the cost of round-trip transportation 
from the location of the extended tour of duty to such nearest port''.
    (b) Change in Terminology.--(1) Subsection (b) of such section is 
further amended by striking ``recuperative'' in paragraphs (1) and (2) 
and inserting ``recuperation''.
    (2)(A) The heading of such section is amended to read as follows:

``Sec. 705. Rest and recuperation absence: qualified enlisted members 
            extending duty at designated locations overseas''.

    (B) The item relating to such section in the table of sections at 
the beginning of chapter 40 of such title is amended to read as 
follows:
``705. Rest and recuperation absence: qualified enlisted members 
          extending duty at designated locations overseas.''.

SEC. 575. VEHICLE STORAGE IN LIEU OF TRANSPORTATION WHEN MEMBER IS 
              ORDERED TO A NONFOREIGN DUTY STATION OUTSIDE CONTINENTAL 
              UNITED STATES.

    (a) Storage Costs Authorized.--Subsection (b) of section 2634 of 
title 10, United States Code, is amended by striking paragraphs (1) and 
(2) and inserting the following:
    ``(b)(1) When a member receives a vehicle storage qualifying order, 
the member may elect to have a motor vehicle described in subsection 
(a) stored at the expense of the United States at a location approved 
by the Secretary concerned. In the case of a vehicle storage qualifying 
order that is to make a change of permanent station, such storage is in 
lieu of transportation authorized by subsection (a).
    ``(2) In this subsection, the term `vehicle storage qualifying 
order' means any of the following:
        ``(A) An order to make a change of permanent station to a 
    foreign country in a case in which the laws, regulations, or other 
    restrictions imposed by the foreign country or by the United States 
    either--
            ``(i) preclude entry of a motor vehicle described in 
        subsection (a) into that country; or
            ``(ii) would require extensive modification of the vehicle 
        as a condition to entry.
        ``(B) An order to make a change of permanent station to a 
    nonforeign area outside the continental United States in a case in 
    which the laws, regulations, or other restrictions imposed by that 
    area or by the United States either--
            ``(i) preclude entry of a motor vehicle described in 
        subsection (a) into that area; or
            ``(ii) would require extensive modification of the vehicle 
        as a condition to entry.
        ``(C) An order under which a member is transferred or assigned 
    in connection with a contingency operation to duty at a location 
    other than the permanent station of the member for a period of more 
    than 30 consecutive days but which is not considered a change of 
    permanent station.''.
    (b) Nonforeign Area Outside the Continental United States 
Defined.--Subsection (h) of such section is amended by adding at the 
end the following new paragraph:
        ``(3) The term `nonforeign area outside the continental United 
    States' means any of the following: the States of Alaska and 
    Hawaii, the Commonwealths of Puerto Rico and the Northern Mariana 
    Islands, and any possession of the United States.''.
    (c) Effective Date.--The amendments made by this section apply to 
orders to make a change of permanent station to a nonforeign area 
outside the continental United States (as such term is defined in 
subsection (h)(3) of section 2634 of title 10, United States Code, as 
added by subsection (b)) that are issued on or after the date of the 
enactment of this Act.

                          Subtitle I--Reports

SEC. 581. QUADRENNIAL QUALITY OF LIFE REVIEW.

    (a) Requirement for Review.--(1) Chapter 2 of title 10, United 
States Code, is amended by inserting after section 118 the following 
new section:

``Sec. 118a. Quadrennial quality of life review

    ``(a) Review Required.--(1) The Secretary of Defense shall every 
four years conduct a comprehensive examination of the quality of life 
of the members of the armed forces (to be known as the `quadrennial 
quality of life review'). The review shall include examination of the 
programs, projects, and activities of the Department of Defense, 
including the morale, welfare, and recreation activities.
    ``(2) The quadrennial quality of life review shall be designed to 
result in determinations, and to foster policies and actions, that 
reflect the priority given the quality of life of members of the armed 
forces as a primary concern of the Department of Defense leadership.
    ``(b) Conduct of Review.--Each quadrennial quality of life review 
shall be conducted so as--
        ``(1) to assess quality of life priorities and issues 
    consistent with the most recent National Security Strategy 
    prescribed by the President pursuant to section 108 of the National 
    Security Act of 1947 (50 U.S.C. 404a);
        ``(2) to identify actions that are needed in order to provide 
    members of the armed forces with the quality of life reasonably 
    necessary to encourage the successful execution of the full range 
    of missions that the members are called on to perform under the 
    national security strategy; and
        ``(3) to identify other actions that have the potential for 
    improving the quality of life of the members of the armed forces.
    ``(c) Considerations.--The Secretary shall consider addressing the 
following matters as part of the quadrennial quality of life review:
        ``(1) Infrastructure.
        ``(2) Military construction.
        ``(3) Physical conditions at military installations and other 
    Department of Defense facilities.
        ``(4) Budget plans.
        ``(5) Adequacy of medical care for members of the armed forces 
    and their dependents.
        ``(6) Adequacy of housing and the basic allowance for housing 
    and basic allowance for subsistence.
        ``(7) Housing-related utility costs.
        ``(8) Educational opportunities and costs.
        ``(9) Length of deployments.
        ``(10) Rates of pay and pay differentials between the pay of 
    members and the pay of civilians.
        ``(11) Retention and recruiting efforts.
        ``(12) Workplace safety.
        ``(13) Support services for spouses and children.
        ``(14) Other elements of Department of Defense programs and 
    Government policies and programs that affect the quality of life of 
    members.
    ``(d) Submission to Congressional Committees.--(1) The Secretary 
shall submit a report on each quadrennial quality of life review to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives. The report shall include the 
following:
        ``(A) The assumptions used in the review.
        ``(B) The results of the review, including a comprehensive 
    discussion of how the quality of life of members of the armed 
    forces affects the national security strategy of the United States.
    ``(2) The report shall be submitted in the year following the year 
in which the review is conducted, but not later than the date on which 
the President submits the budget for the next fiscal year to Congress 
under section 1105(a) of title 31.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 118 the 
following new item:

``118a. Quadrennial quality of life review.''.

    (b) First Quadrennial Quality of Life Review.--The first 
quadrennial quality of life review under section 118a of title 10, 
United States Code, as added by subsection (a), shall be conducted 
during 2003, and the report on that review required to be submitted to 
Congress under subsection (d) of such section shall be submitted not 
later than the date on which the President submits the budget for 
fiscal year 2005 to Congress.

SEC. 582. REPORT ON DESIRABILITY AND FEASIBILITY OF CONSOLIDATING 
              SEPARATE COURSES OF BASIC INSTRUCTION FOR JUDGE 
              ADVOCATES.

    Not later than February 1, 2003, the Secretary of Defense shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the desirability and feasibility of consolidating the separate Army, 
Navy, and Air Force courses of basic instruction for judge advocates 
into a single course to be conducted at a single location. The report 
shall include--
        (1) an assessment of the advantages and disadvantages of such a 
    consolidation;
        (2) a recommendation as to whether such a consolidation is 
    desirable and feasible; and
        (3) any proposal for legislative action that the Secretary 
    considers appropriate for carrying out such a consolidation.

SEC. 583. REPORTS ON EFFORTS TO RESOLVE STATUS OF CAPTAIN MICHAEL SCOTT 
              SPEICHER, UNITED STATES NAVY.

    (a) Reports.--Not later than 90 days after the date of the 
enactment of this Act, and every 120 days thereafter, the Secretary of 
Defense shall submit to Congress a report on the efforts of the United 
States Government to determine the status of Captain Michael Scott 
Speicher, United States Navy, whose aircraft was shot down over Iraq on 
the night of January 17, 1991. Each such report shall be prepared in 
consultation with the Secretary of State and the Director of Central 
Intelligence.
    (b) Period Covered by Reports.--The first report under subsection 
(a) shall cover efforts described in that subsection from the time that 
Michael Scott Speicher's aircraft was shot down over Iraq until the 
date of the report, and each subsequent report shall cover efforts 
described in that subsection since the last such report.
    (c) Report Elements.--Each report under subsection (a) shall 
describe, for the period covered by such report, the following:
        (1) All direct and indirect contacts by the United States 
    Government with the Government of Iraq regarding the status of 
    Michael Scott Speicher.
        (2) Any request made by the United States Government to the 
    government of another country, including the intelligence service 
    of such country, for assistance in resolving the status of Michael 
    Scott Speicher, including the response to such request.
        (3) Each current lead on the status of Michael Scott Speicher, 
    including an assessment of the utility of such lead in resolving 
    the status of Michael Scott Speicher.
        (4) Any cooperation with nongovernmental organizations or 
    international organizations in resolving the status of Michael 
    Scott Speicher, including the results of such cooperation.
    (d) Form of Reports.--Each report under subsection (a) shall be 
submitted in classified or unclassified form. To the extent submitted 
in classified form, such report shall include an unclassified summary.
    (e) Duration.--The requirement to submit reports under this section 
shall cease to be effective upon a final determination regarding the 
status of Michael Scott Speicher by the Secretary of Defense.

SEC. 584. REPORT ON VOLUNTEER SERVICES OF MEMBERS OF THE RESERVE 
              COMPONENTS IN EMERGENCY RESPONSE TO THE TERRORIST ATTACKS 
              OF SEPTEMBER 11, 2001.

    (a) Requirement for Report.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Armed Services of the Senate and House of 
Representatives a report on volunteer services described in subsection 
(b) that were provided by members of the reserve components of the 
Armed Forces, while not in a duty status pursuant to orders, during the 
period of September 11 through September 14, 2001. The report shall 
include a discussion of any recognition that the Secretary considers 
appropriate for those members regarding the provision of such services.
    (b) Covered Volunteer Services.--The volunteer services referred to 
in subsection (a) are volunteer services of a military-unique nature 
that were provided--
        (1) in the vicinity of the site of the World Trade Center, New 
    York, New York, in support of emergency response to the terrorist 
    attack on the World Trade Center on September 11, 2001;
        (2) in the vicinity of the Pentagon, Arlington, Virginia, in 
    support of emergency response to the terrorist attack on the 
    Pentagon on September 11, 2001; or
        (3) in the vicinity of Shanksville, Pennsylvania, in support of 
    emergency response to the terrorist-caused crash of United Airlines 
    Flight 93 in Shanksville, Pennsylvania, on September 11, 2001.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2003.
Sec. 602. Basic allowance for housing in cases of low-cost or no-cost 
          moves.
Sec. 603. Rate of basic allowance for subsistence for enlisted personnel 
          occupying single Government quarters without adequate 
          availability of meals.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
          authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
          authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
          nuclear officers.
Sec. 614. One-year extension of other bonus and special pay authorities.
Sec. 615. Increase in maximum rates for certain special pays, bonuses, 
          and financial assistance for health care professionals.
Sec. 616. Assignment incentive pay.
Sec. 617. Increase in maximum rates for prior service enlistment bonus.
Sec. 618. Retention incentives for health care professionals qualified 
          in a critical military skill.

            Subtitle C--Travel and Transportation Allowances

Sec. 621. Extension of leave travel deferral period for members 
          performing consecutive overseas tours of duty.
Sec. 622. Transportation of motor vehicles for members reported missing.

              Subtitle D--Retired Pay and Survivor Benefits

Sec. 631. Permanent reduction from eight to six in number of years of 
          reserve service required for eligibility for retired pay for 
          non-regular service.
Sec. 632. Increased retired pay for enlisted Reserves credited with 
          extraordinary heroism.
Sec. 633. Elimination of possible inversion in retired pay cost-of-
          living adjustment for initial COLA computation.
Sec. 634. Technical revisions to so-called ``forgotten widows'' annuity 
          program.
Sec. 635. Expansion of authority of Secretary of Defense to waive time 
          limitations on claims against the Government for military 
          personnel benefits.
Sec. 636. Special compensation for certain combat-related disabled 
          uniformed services retirees.

                     Subtitle E--Montgomery GI Bill

Sec. 641. Time limitation for use of Montgomery GI Bill entitlement by 
          members of the Selected Reserve.
Sec. 642. Repayment requirements under Reserve Component Montgomery GI 
          Bill arising from failure to participate satisfactorily in 
          military service to be considered debts owed to the United 
          States.
Sec. 643. Technical adjustments to authority for certain members to 
          transfer educational assistance under Montgomery GI Bill to 
          dependents.

                        Subtitle F--Other Matters

Sec. 651. Payment of interest on student loans.
Sec. 652. Additional authority to provide assistance for families of 
          members of the Armed Forces.
Sec. 653. Repeal of authority for acceptance of honoraria by personnel 
          at certain Department of Defense schools.
Sec. 654. Addition of definition of continental United States in title 
          37.

                     Subtitle A--Pay and Allowances

SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2003 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2003, the rates 
of monthly basic pay for members of the uniformed services within each 
pay grade are as follows:
---------------------------------------------------------------------------
  

                        COMMISSIONED OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   7,474.50   7,719.30   7,881.60   7,927.20    8,129.40
O-7.............   6,210.90   6,499.20   6,633.00   6,739.20    6,930.90
O-6.............   4,603.20   5,057.10   5,388.90   5,388.90    5,409.60
O-5.............   3,837.60   4,323.00   4,622.40   4,678.50    4,864.80
O-4.............   3,311.10   3,832.80   4,088.70   4,145.70    4,383.00
O-3\3\..........   2,911.20   3,300.30   3,562.20   3,883.50    4,069.50
O-2\3\..........   2,515.20   2,864.70   3,299.40   3,410.70    3,481.20
O-1\3\..........   2,183.70   2,272.50   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-10\2\.........      $0.00      $0.00      $0.00      $0.00       $0.00
O-9.............       0.00       0.00       0.00       0.00        0.00
O-8.............   8,468.70   8,547.30   8,868.90   8,961.30    9,238.20
O-7.............   7,120.80   7,340.40   7,559.40   7,779.00    8,468.70
O-6.............   5,641.20   5,672.10   5,672.10   5,994.60    6,564.30
O-5.............   4,977.00   5,222.70   5,403.00   5,635.50    5,991.90
O-4.............   4,637.70   4,954.50   5,201.40   5,372.70    5,471.10
O-3\3\..........   4,273.50   4,405.80   4,623.30   4,736.10    4,736.10
O-2\3\..........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1\3\..........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $12,077.7  $12,137.1  $12,389.4  $12,829.20
                                     0          0          0
O-9.............       0.00  10,563.60  10,715.70  10,935.60   11,319.60
O-8.............   9,639.00  10,008.90  10,255.80  10,255.80   10,255.80
O-7.............   9,051.30   9,051.30   9,051.30   9,051.30    9,096.90
O-6.............   6,898.80   7,233.30   7,423.50   7,616.10    7,989.90
O-5.............   6,161.70   6,329.10   6,519.60   6,519.60    6,519.60
O-4.............   5,528.40   5,528.40   5,528.40   5,528.40    5,528.40
O-3\3\..........   4,736.10   4,736.10   4,736.10   4,736.10    4,736.10
O-2\3\..........   3,481.20   3,481.20   3,481.20   3,481.20    3,481.20
O-1\3\..........   2,746.80   2,746.80   2,746.80   2,746.80    2,746.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for commissioned officers in pay grades 0-7
  through O-10 may not exceed the rate of pay for level III of the
  Executive Schedule and the actual rate of basic pay for all other
  officers may not exceed the rate of pay for level V of the Executive
  Schedule.
\2\Subject to the preceding footnote, the rate of basic pay for an
  officer in this grade while serving as Chairman or Vice Chairman of
  the Joint Chiefs of Staff, Chief of Staff of the Army, Chief of Naval
  Operations, Chief of Staff of the Air Force, Commandant of the Marine
  Corps, or Commandant of the Coast Guard is $14,155.50, regardless of
  cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\This table does not apply to commissioned officers in pay grade O-1,
  O-2, or O-3 who have been credited with over 4 years of active duty
  service as an enlisted member or warrant officer.


  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,883.50   $4,069.50
O-2E............       0.00       0.00       0.00   3,410.70    3,481.20
O-1E............       0.00       0.00       0.00   2,746.80    2,933.70
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $4,273.50  $4,405.80  $4,623.30  $4,806.30   $4,911.00
O-2E............   3,591.90   3,778.80   3,923.40   4,031.10    4,031.10
O-1E............   3,042.00   3,152.70   3,261.60   3,410.70    3,410.70
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $5,054.40  $5,054.40  $5,054.40  $5,054.40   $5,054.40
O-2E............   4,031.10   4,031.10   4,031.10   4,031.10    4,031.10
O-1E............   3,410.70   3,410.70   3,410.70   3,410.70    3,410.70
------------------------------------------------------------------------


                           WARRANT OFFICERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,008.10   3,236.10   3,329.10   3,420.60   3,578.10
W-3..............   2,747.10   2,862.00   2,979.30   3,017.70   3,141.00
W-2..............   2,416.50   2,554.50   2,675.10   2,763.00   2,838.30
W-1..............   2,133.90   2,308.50   2,425.50   2,501.10   2,662.50
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,733.50   3,891.00   4,044.60   4,203.60   4,356.00
W-3..............   3,281.70   3,467.40   3,580.50   3,771.90   3,915.60
W-2..............   2,993.10   3,148.50   3,264.00   3,376.50   3,453.90
W-1..............   2,782.20   2,888.40   3,006.90   3,085.20   3,203.40
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,169.30  $5,346.60  $5,524.50  $5,703.30
W-4..............   4,512.00   4,664.40   4,822.50   4,978.20   5,137.50
W-3..............   4,058.40   4,201.50   4,266.30   4,407.00   4,548.00
W-2..............   3,579.90   3,705.90   3,831.00   3,957.30   3,957.30
W-1..............   3,320.70   3,409.50   3,409.50   3,409.50   3,409.50
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


                           ENLISTED MEMBERS\1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
E-9\2\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   2,068.50   2,257.80   2,343.90   2,428.20   2,516.40
E-6..............   1,770.60   1,947.60   2,033.70   2,117.10   2,204.10
E-5..............   1,625.40   1,733.70   1,817.40   1,903.50   2,037.00
E-4..............   1,502.70   1,579.80   1,665.30   1,749.30   1,824.00
E-3..............   1,356.90   1,442.10   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............        \3\   1,150.80   1,150.80   1,150.80   1,150.80
                    1,150.80
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\2\...........      $0.00  $3,564.30  $3,645.00  $3,747.00  $3,867.00
E-8..............   2,975.40   3,061.20   3,141.30   3,237.60   3,342.00
E-7..............   2,667.90   2,753.40   2,838.30   2,990.40   3,066.30
E-6..............   2,400.90   2,477.40   2,562.30   2,636.70   2,663.10
E-5..............   2,151.90   2,236.80   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\2\...........  $3,987.30  $4,180.80  $4,344.30  $4,506.30  $4,757.40
E-8..............   3,530.10   3,625.50   3,787.50   3,877.50   4,099.20
E-7..............   3,138.60   3,182.70   3,331.50   3,427.80   3,671.40
E-6..............   2,709.60   2,709.60   2,709.60   2,709.60   2,709.60
E-5..............   2,283.30   2,283.30   2,283.30   2,283.30   2,283.30
E-4..............   1,824.00   1,824.00   1,824.00   1,824.00   1,824.00
E-3..............   1,528.80   1,528.80   1,528.80   1,528.80   1,528.80
E-2..............   1,290.00   1,290.00   1,290.00   1,290.00   1,290.00
E-1..............   1,150.80   1,150.80   1,150.80   1,150.80   1,150.80
------------------------------------------------------------------------
\1\Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for enlisted members may not exceed the rate
  of pay for level V of the Executive Schedule.
\2\Subject to the preceding footnote, the rate of basic pay for an
  enlisted member in this grade while serving as Sergeant Major of the
  Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of
  the Air Force, Sergeant Major of the Marine Corps, or Master Chief
  Petty Officer of the Coast Guard, basic pay is $5,732.70, regardless
  of cumulative years of service computed under section 205 of title 37,
  United States Code.
\3\In the case of members in pay grade E-1 who have served less than 4
  months on active duty, the rate of basic pay is $1,064.70.

SEC. 602. BASIC ALLOWANCE FOR HOUSING IN CASES OF LOW-COST OR NO-COST 
              MOVES.

    Section 403 of title 37, United States Code, is amended--
        (1) by transferring paragraph (7) of subsection (b) to the end 
    of the section; and
        (2) in such paragraph--
            (A) by striking ``(7)'' and all that follows through 
        ``circumstances of which make it necessary that the member be'' 
        and inserting ``(o) Treatment of Low-Cost and No-Cost Moves as 
        Not Being Reassignments.--In the case of a member who is 
        assigned to duty at a location or under circumstances that make 
        it necessary for the member to be''; and
            (B) by inserting ``for the purposes of this section'' after 
        ``may be treated''.

SEC. 603. RATE OF BASIC ALLOWANCE FOR SUBSISTENCE FOR ENLISTED 
              PERSONNEL OCCUPYING SINGLE GOVERNMENT QUARTERS WITHOUT 
              ADEQUATE AVAILABILITY OF MEALS.

    Section 402(d) of title 37, United States Code, is amended to read 
as follows:
    ``(d) Special Rate for Enlisted Members Occupying Single Quarters 
Without Adequate Availability of Meals.--The Secretary of Defense, and 
the Secretary of the department in which the Coast Guard is operating, 
may pay an enlisted member the basic allowance for subsistence under 
this section at a monthly rate that is twice the amount in effect under 
subsection (b)(2) while--
        ``(1) the member is assigned to single Government quarters 
    which have no adequate food storage or preparation facility in the 
    quarters; and
        ``(2) there is no Government messing facility serving those 
    quarters that is capable of making meals available to the occupants 
    of the quarters.''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking ``December 31, 2002'' 
and inserting ``December 31, 2003''.
    (b) Selected Reserve Enlistment Bonus.--Section 308c(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (c) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2002'' and inserting ``December 31, 2003''.
    (d) Selected Reserve Affiliation Bonus.--Section 308e(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (f) Prior Service Enlistment Bonus.--Section 308i(f) of such title 
is amended by striking ``December 31, 2002'' and inserting ``December 
31, 2003''.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR CERTAIN HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2003'' and inserting ``January 1, 
2004''.
    (c) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2002'' 
and inserting ``December 31, 2003''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(f) of such title is 
amended by striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR 
              NUCLEAR OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(e) of title 37, United States Code, is 
amended by striking ``December 31, 2002'' and inserting ``December 31, 
2003''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2002'' and inserting ``December 
31, 2003''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.

SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND SPECIAL PAY 
              AUTHORITIES.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (c) Enlistment Bonus for Active Members.--Section 309(e) of such 
title is amended by striking ``December 31, 2002'' and inserting 
``December 31, 2003''.
    (d) Retention Bonus for Members With Critical Military Skills.--
Section 323(i) of such title is amended by striking ``December 31, 
2002'' and inserting ``December 31, 2003''.
    (e) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2002'' and 
inserting ``December 31, 2003''.

SEC. 615. INCREASE IN MAXIMUM RATES FOR CERTAIN SPECIAL PAYS, BONUSES, 
              AND FINANCIAL ASSISTANCE FOR HEALTH CARE PROFESSIONALS.

    (a) Retention Bonus for Medical Officers.--Section 301d(a)(2) of 
title 37, United States Code, is amended by striking ``$14,000'' and 
inserting ``$50,000''.
    (b) Retention Bonus for Dental Officers.--Section 301e(a)(2) of 
such title is amended by striking ``$14,000'' and inserting 
``$50,000''.
    (c) Incentive Special Pay for Medical Officers.--Section 302(b)(1) 
of such title is amended by striking the second sentence and inserting 
the following new sentence: ``The amount of incentive special pay paid 
to an officer under this subsection may not exceed $50,000 for any 12-
month period.''.
    (d) Retention Special Pay Optometrists.--Section 302a(b)(1) of such 
title is amended by striking ``$6,000'' and inserting ``$15,000''.
    (e) Accession Bonus for Registered Nurses.--Section 302d(a)(2) of 
such title is amended by striking ``$5,000'' and inserting ``$30,000''.
    (f) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``$15,000'' and 
inserting ``$50,000''.
    (g) Retention Special Pay for Pharmacy Officers.--Section 302i of 
such title is amended--
        (1) in subsections (a) and (b), by striking ``special pay at 
    the rates specified in subsection (d)'' both places it appears and 
    inserting ``retention special pay under this section'';
        (2) in subsection (c), by striking ``Limitation.--'' and 
    inserting ``Limitation on Eligibility for Special Pay.--''; and
        (3) by striking subsection (d) and inserting the following new 
    subsection:
    ``(d) Limitation on Amount of Special Pay.--The amount of retention 
special pay paid to an officer under this section may not exceed 
$15,000 for any 12-month period.''.
    (h) Financial Assistance for Nurse Officer Candidates.--Section 
2130a(a) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking ``$5,000'' in the first 
    sentence and inserting ``$10,000'' and by striking ``$2,500'' in 
    the second sentence and inserting ``$5,000''; and
        (2) in paragraph (2), by striking ``$500'' and inserting 
    ``$1,000''.
    (i) Application of Increase.--In the case of an amendment made by 
this section to increase the maximum amount of a special pay or bonus 
that may be paid during any 12-month period, the amended limitation 
shall apply to 12-month periods beginning after September 30, 2002.

SEC. 616. ASSIGNMENT INCENTIVE PAY.

    (a) Authority.--(1) Chapter 5 of title 37, United States Code, is 
amended by inserting after section 307 the following new section:

``Sec. 307a. Special pay: assignment incentive pay

    ``(a) Authority.--The Secretary concerned may pay monthly incentive 
pay under this section to a member of a uniformed service who performs 
service, while entitled to basic pay, in an assignment designated by 
the Secretary concerned.
    ``(b) Written Agreement.--The period for which incentive pay will 
be provided under this section and the monthly rate of the incentive 
pay for a member shall be specified in a written agreement between the 
Secretary concerned and the member. Agreements entered into by the 
Secretary of a military department shall require the concurrence of the 
Secretary of Defense.
    ``(c) Maximum Rate.--The maximum monthly rate of incentive pay 
payable to a member under this section is $1,500.
    ``(d) Relationship to Other Pay and Allowances.--Incentive pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(e) Status Not Affected by Temporary Duty or Leave.--The service 
of a member in an assignment referred to in subsection (a) shall not be 
considered discontinued during any period that the member is not 
performing service in the assignment by reason of temporary duty 
performed by the member pursuant to orders or absence of the member for 
authorized leave.
    ``(f) Termination of Authority.--No agreement under this section 
may be entered into after December 31, 2005.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 307 the 
following new item:

``307a. Special pay: assignment incentive pay.''.

    (b) Annual Report.--Not later than February 28, 2004, and February 
28, 2005, the Secretary of Defense shall submit to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives a report on the use of the authority provided 
under section 307a of title 37, United States Code, as added by 
subsection (a), including an assessment of the utility of that 
authority.

SEC. 617. INCREASE IN MAXIMUM RATES FOR PRIOR SERVICE ENLISTMENT BONUS.

    Section 308i(b)(1) of title 37, United States Code, is amended--
        (1) in subparagraph (A), by striking ``$5,000'' and inserting 
    ``$8,000'';
        (2) in subparagraph (B), by striking ``$2,500'' and inserting 
    ``$4,000''; and
        (3) in subparagraph (C), by striking ``$2,000'' and inserting 
    ``$3,500''.

SEC. 618. RETENTION INCENTIVES FOR HEALTH CARE PROFESSIONALS QUALIFIED 
              IN A CRITICAL MILITARY SKILL.

    (a) Exception to Limitation on Maximum Bonus Amount.--Subsection 
(d) of section 323 of title 37, United States Code, is amended--
        (1) by inserting ``(1)'' before ``A member''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The limitation in paragraph (1) on the total bonus payments 
that a member may receive under this section does not apply with 
respect to an officer who is assigned duties as a health care 
professional.''.
    (b) Exception to Years of Service Limitation.--Subsection (e) of 
such section is amended--
        (1) by redesignating paragraphs (1) and (2) as subparagraphs 
    (A) and (B), respectively;
        (2) by inserting ``(1)'' before ``A retention''; and
        (3) by adding at the end the following new paragraph:
    ``(2) The limitations in paragraph (1) do not apply with respect to 
an officer who is assigned duties as a health care professional during 
the period of active duty for which the bonus is being offered.''.

            Subtitle C--Travel and Transportation Allowances

SEC. 621. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD FOR MEMBERS 
              PERFORMING CONSECUTIVE OVERSEAS TOURS OF DUTY.

    (a) Authorized Deferral Period.--Section 411b of title 37, United 
States Code is amended by inserting after subsection (a) the following 
new subsection:
    ``(b) Authority to Defer Travel; Limitations.--(1) Under the 
regulations referred to in subsection (a), a member may defer the 
travel for which the member is paid travel and transportation 
allowances under this section until any time before the completion of 
the consecutive tour at the same duty station or the completion of the 
tour of duty at the new duty station under the order involved, as the 
case may be.
    ``(2) If a member is unable to undertake the travel before 
expiration of the deferral period under paragraph (1) because of duty 
in connection with a contingency operation, the member may defer the 
travel until not more than one year after the date on which the 
member's duty in connection with the contingency operation ends.''.
    (b) Conforming and Clerical Amendments.--Such section is further 
amended--
        (1) in subsection (a)--
            (A) by striking ``(a)(1)'' and inserting ``(a) Allowances 
        Authorized.--''; and
            (B) by striking paragraph (2); and
        (2) by striking ``(b) The allowances'' and inserting ``(c) 
    Limitation on Allowance Rate.--The allowances''.
    (c) Application of Amendment.--Subsection (b) of section 411b of 
title 37, United States Code, as added by subsection (a), shall apply 
with respect to members of the uniformed services in a deferred leave 
travel status under such section as of the date of the enactment of 
this Act or becomes entitled to travel and transportation allowances 
under such section on or after that date.

SEC. 622. TRANSPORTATION OF MOTOR VEHICLES FOR MEMBERS REPORTED 
              MISSING.

    (a) Authority To Ship Two Motor Vehicles.--Subsection (a) of 
section 554 of title 37, United States Code, is amended by striking 
``one privately owned motor vehicle'' both places it appears and 
inserting ``two privately owned motor vehicles''.
    (b) Payments for Late Delivery.--Subsection (i) of such section is 
amended by adding at the end the following new sentence: ``In a case in 
which two motor vehicles of a member (or the dependent or dependents of 
a member) are transported at the expense of the United States, no 
reimbursement is payable under this subsection unless both motor 
vehicles do not arrive at the authorized destination of the vehicles by 
the designated delivery date.''.
    (c) Applicability.--The amendments made by subsection (a) shall 
apply with respect to members whose eligibility for benefits under 
section 554 of title 37, United States Code, commences on or after the 
date of the enactment of this Act.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 631. PERMANENT REDUCTION FROM EIGHT TO SIX IN NUMBER OF YEARS OF 
              RESERVE SERVICE REQUIRED FOR ELIGIBILITY FOR RETIRED PAY 
              FOR NON-REGULAR SERVICE.

    (a) Reduction in Requirement for Years of Reserve Component Service 
Before Retired Pay Eligibility.--Subsection (a)(3) of section 12731 of 
title 10, United States Code, is amended--
        (1) by striking ``eight years'' and inserting ``six years''; 
    and
        (2) by inserting before the semicolon ``, except that in the 
    case of a person who completed the service requirements of 
    paragraph (2) before October 5, 1994, the number of years of such 
    qualifying service under this paragraph shall be eight''.
    (b) Conforming Amendment.--Subsection (f) of such section is 
repealed.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2002. No benefit shall accrue to any person 
for any period before that date by reason of the enactment of those 
amendments.

SEC. 632. INCREASED RETIRED PAY FOR ENLISTED RESERVES CREDITED WITH 
              EXTRAORDINARY HEROISM.

    (a) Authority.--Section 12739 of title 10, United States Code, is 
amended--
        (1) by redesignating subsections (b) and (c) as subsections (c) 
    and (d), respectively; and
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) If a person entitled to retired pay under this chapter has 
been credited by the Secretary concerned with extraordinary heroism in 
the line of duty and if the highest grade held satisfactorily by that 
person at any time in the armed forces is an enlisted grade, the 
person's retired pay shall be increased by 10 percent of the amount 
determined under subsection (a). The Secretary's determination as to 
extraordinary heroism is conclusive for all purposes.''.
    (b) Conforming Amendment.--Subsection (c) of such section, as 
redesignated by subsection (a)(1), is amended by striking ``amount 
computed under subsection (a)'' and inserting ``total amount of the 
monthly retired pay computed under subsections (a) and (b)''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on October 1, 2002, and shall apply with respect to 
retired pay for months beginning on or after that date.

SEC. 633. ELIMINATION OF POSSIBLE INVERSION IN RETIRED PAY COST-OF-
              LIVING ADJUSTMENT FOR INITIAL COLA COMPUTATION.

    (a) Elimination of Possible COLA Inversion.--Section 1401a of title 
10, United States Code, is amended--
        (1) in subsections (c)(1), (d), and (e), by inserting ``but 
    subject to subsection (f)(2)'' after ``Notwithstanding subsection 
    (b)'';
        (2) in subsection (c)(2), by inserting ``(subject to subsection 
    (f)(2) as applied to other members whose retired pay is computed on 
    the current rates of basic pay in the most recent adjustment under 
    this section)'' after ``shall be increased''; and
        (3) in subsection (f)--
            (A) by designating the text after the subsection heading as 
        paragraph (1), indenting that text two ems, and inserting 
        ``Prevention of retired pay inversions.--'' before 
        ``Notwithstanding''; and
            (B) by adding at the end the following new paragraph:
        ``(2) Prevention of cola inversions.--The percentage of the 
    first adjustment under this section in the retired pay of any 
    person, as determined under subsection (c)(1), (c)(2), (d), or (e), 
    may not exceed the percentage increase in retired pay determined 
    under subsection (b)(2) that is effective on the same date as the 
    effective date of such first adjustment.''.
    (b) Technical Amendments.--Such section is further amended--
        (1) in subsection (d), by inserting ``or on or after August 1, 
    1986, if the member or former member did not elect to receive a 
    bonus under section 322 of title 37'' after ``August 1, 1986,''; 
    and
        (2) in subsection (e), by inserting ``and elected to receive a 
    bonus under section 322 of title 37'' after ``August 1, 1986,''.

SEC. 634. TECHNICAL REVISIONS TO SO-CALLED ``FORGOTTEN WIDOWS'' ANNUITY 
              PROGRAM.

    (a) Clarification of Eligibility.--Subsection (a)(1) of section 644 
of the National Defense Authorization Act for Fiscal Year 1998 (Public 
Law 105-85; 10 U.S.C. 1448 note) is amended--
        (1) in subparagraph (A), by inserting after ``(A)'' the 
    following: ``became entitled to retired or retainer pay before 
    September 21, 1972,''; and
        (2) in subparagraph (B), by striking ``was a member of a 
    reserve component of the Armed Forces'' and inserting ``died''.
    (b) Clarification of Interaction With Other Benefits.--(1) 
Subsection (a)(2) of such section is amended by striking ``and who'' 
and all that follows through ``note)''.
    (2) Subsection (b)(2) of such section is amended to read as 
follows:
    ``(2) The amount of an annuity to which a surviving spouse is 
entitled under this section for any period shall be reduced (but not 
below zero) by any amount paid to that surviving spouse for the same 
period under any of the following provisions of law:
        ``(A) Section 1311(a) of title 38, United States Code (relating 
    to dependency and indemnity compensation payable by the Secretary 
    of Veterans Affairs).
        ``(B) Chapter 73 of title 10, United States Code.
        ``(C) Section 4 of Public Law 92-425 (10 U.S.C. 1448 note).''.
    (c) Clarification of Definition of Surviving Spouse.--Subsection 
(d)(2) of such section is amended by striking ``the terms'' and all 
that follows through ``and (8)'' and inserting ``such term in paragraph 
(9)''.
    (d) Specification in Law of Current Benefit Amount.--Subsection (b) 
of such section is amended--
        (1) in paragraph (1), by striking ``$165'' and inserting 
    ``$185.58''; and
        (2) in paragraph (3)--
            (A) by striking ``the date of the enactment of this Act'' 
        and inserting ``May 1, 2002,''; and
            (B) by striking the last sentence.
    (e) Specification of Enactment Month.--Subsection (e) of such 
section is amended--
        (1) in paragraph (1), by striking ``the month in which this Act 
    is enacted'' and inserting ``November 1997''; and
        (2) in paragraph (2), by striking ``the first month that begins 
    after the month in which this Act is enacted'' and inserting 
    ``December 1997''.

SEC. 635. EXPANSION OF AUTHORITY OF SECRETARY OF DEFENSE TO WAIVE TIME 
              LIMITATIONS ON CLAIMS AGAINST THE GOVERNMENT FOR MILITARY 
              PERSONNEL BENEFITS.

    (a) Authority for Waiver of Time Limitations.--Paragraph (1) of 
section 3702(e) of title 31, United States Code, is amended by striking 
``a claim'' and all that follows through ``title 10'' and inserting ``a 
claim referred to in subsection (a)(1)(A)''.
    (b) Technical Amendments.--(1) Such paragraph is further amended--
        (A) by striking ``Upon the request'' and all that follows 
    through ``the Secretary of Defense'' and inserting ``The Secretary 
    of Defense'';
        (B) by striking ``and, subject to paragraph (2), settle the 
    claim''; and
        (C) by adding at the end the following new sentence: ``In the 
    case of a claim by or with respect to a member of the uniformed 
    services who is not under the jurisdiction of the Secretary of a 
    military department, such a waiver may be made only upon the 
    request of the Secretary concerned (as defined in section 101 of 
    title 37).''.
    (2) Paragraph (2) of such section is amended--
        (A) by striking ``under paragraph (1)' and inserting ``under 
    subsection (a)(1)(A)''; and
        (B) by inserting before the period at the end the following: 
    ``, except that in the case of a claim for retired pay or survivor 
    benefits, if the obligation claimed would have been paid from a 
    trust fund if timely paid, the payment of the claim shall be made 
    from that trust fund''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to claims against the United States presented to the 
Secretary of Defense under section 3702 of title 31, United States 
Code, on or after the date of the enactment of this Act.

SEC. 636. SPECIAL COMPENSATION FOR CERTAIN COMBAT-RELATED DISABLED 
              UNIFORMED SERVICES RETIREES.

    (a) Authority.--(1) Chapter 71 of title 10, United States Code, is 
amended by inserting after section 1413 the following new section:

``Sec. 1413a. Special compensation for certain combat-related disabled 
            uniformed services retirees

    ``(a) Authority.--The Secretary concerned shall pay to each 
eligible combat-related disabled uniformed services retiree who elects 
benefits under this section a monthly amount for the combat-related 
disability of the retiree determined under subsection (b).
    ``(b) Amount.--
        ``(1) Determination of monthly amount.--Subject to paragraphs 
    (2) and (3), the monthly amount to be paid an eligible combat-
    related disabled uniformed services retiree for a combat-related 
    disability under subsection (a) is the monthly amount of 
    compensation to which the retiree would be entitled solely for the 
    combat-related disability consistent with chapter 11 of title 38.
        ``(2) Maximum amount.--The amount paid to an eligible combat-
    related disabled uniformed services retiree for any month under 
    paragraph (1) may not exceed the amount of the reduction in retired 
    pay that is applicable to the retiree for that month under sections 
    5304 and 5305 of title 38.
        ``(3) Special rules for chapter 61  disability retirees.--In 
    the case of an eligible combat-related disabled uniformed services 
    retiree who is retired under chapter 61 of this title, the amount 
    of the payment under paragraph (1) for any month shall be reduced 
    by the amount (if any) by which the amount of the member's retired 
    pay under chapter 61 of this title exceeds the amount of retired 
    pay to which the member would have been entitled under any other 
    provision of law based upon the member's service in the uniformed 
    services if the member had not been retired under chapter 61 of 
    this title.
    ``(c) Eligible Retirees.--For purposes of this section, an eligible 
combat-related disabled uniformed services retiree referred to in 
subsection (a) is a member of the uniformed services entitled to 
retired pay who--
        ``(1) has completed at least 20 years of service in the 
    uniformed services that are creditable for purposes of computing 
    the amount of retired pay to which the member is entitled; and
        ``(2) has a qualifying combat-related disability.
    ``(d) Procedures.--The Secretary of Defense shall prescribe 
procedures and criteria under which a disabled uniformed services 
retiree may apply to the Secretary of a military department to be 
considered to be an eligible combat-related disabled uniformed services 
retiree. Such procedures shall apply uniformly throughout the 
Department of Defense.
    ``(e) Qualifying Combat-Related Disability.--In this section, the 
term `qualifying combat-related disability' means either of the 
following:
        ``(1) A disability that--
            ``(A) is attributable to an injury for which the member was 
        awarded the Purple Heart; and
            ``(B) is rated as not less than 10 percent disabling--
                ``(i) by the Secretary concerned, as of the date on 
            which the member is retired from the uniformed services, 
            under criteria prescribed by the Secretary of Defense; or
                ``(ii) by the Secretary of Veterans Affairs.
        ``(2) A service-connected disability that--
            ``(A) was incurred (as determined under criteria prescribed 
        by the Secretary of Defense)--
                ``(i) as a direct result of armed conflict;
                ``(ii) while engaged in hazardous service;
                ``(iii) in the performance of duty under conditions 
            simulating war; or
                ``(iv) through an instrumentality of war; and
            ``(B) is rated as not less than 60 percent disabling--
                ``(i) by the Secretary concerned, as of the date on 
            which the member is retired from the uniformed services, 
            under criteria prescribed by the Secretary of Defense; or
                ``(ii) by the Secretary of Veterans Affairs.
    ``(f) Construction with Special Compensation for Severely Disabled 
Uniformed Services Retirees.--
        ``(1) Single source of compensation.--An individual who is paid 
    special compensation under this section may not receive special 
    compensation under section 1413 of this title.
        ``(2) Election of source.--An individual who is eligible for 
    special compensation under this section and special compensation 
    under section 1413 of this title shall elect which special 
    compensation to receive.
        ``(3) Regulations.--The Secretary of Defense shall prescribe in 
    regulations the manner and form of an election under this 
    subsection.
    ``(g) Status of Payments.--Payments under this section are not 
retired pay.
    ``(h) Source of Payments.--Payments under this section for any 
fiscal year shall be paid out of funds appropriated for pay and 
allowances payable by the Secretary concerned for that fiscal year.
    ``(i) Other Definitions.--In this section:
        ``(1) The term `service-connected' has the meaning given such 
    term in section 101 of title 38.
        ``(2) The term `retired pay' includes retainer pay, emergency 
    officers' retirement pay, and naval pension.''.
    (2) Section 1413a of title 10, United States Code, as added by 
paragraph (1), shall take effect not later than 180 days after the date 
of the enactment of this Act.
    (3) The table of sections at the beginning of chapter 71 of such 
title is amended by inserting after the item relating to section 1413 
the following new item:

``1413a. Special compensation for certain combat-related disabled 
          uniformed services retirees.''.

    (b) Special Compensation for Certain Severely Disabled Uniformed 
Services Retirees.--Section 1413 of title 10, United States Code, is 
amended--
        (1) by redesignating subsections (e), (f) and (g) as 
    subsections (f), (g), and (h), respectively; and
        (2) by inserting after subsection (d) the following new 
    subsection (e):
    ``(e) Construction with Special Compensation for Combat-Disabled 
Uniformed Services Retirees.--(1) An individual who is paid special 
compensation under this section may not receive special compensation 
under section 1413a of this title.
    ``(2) An individual who is eligible for special compensation under 
this section and special compensation under section 1413a of this title 
shall elect which special compensation to receive.
    ``(3) The Secretary of Defense shall prescribe in regulations the 
manner and form of an election under this subsection.''.

                     Subtitle E--Montgomery GI Bill

SEC. 641. TIME LIMITATION FOR USE OF MONTGOMERY GI BILL ENTITLEMENT BY 
              MEMBERS OF THE SELECTED RESERVE.

    (a) Extension of Limitation Period.--Section 16133(a)(1) of title 
10, United States Code, is amended by striking ``10-year'' and 
inserting ``14-year''.
    (b) Effective Date and Applicability.--The amendment made by 
subsection (a) shall take effect on October 1, 2002, and shall apply 
with respect to periods of entitlement to educational assistance under 
chapter 1606 of title 10, United States Code, that begin on or after 
October 1, 1992.

SEC. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT MONTGOMERY GI 
              BILL ARISING FROM FAILURE TO PARTICIPATE SATISFACTORILY 
              IN MILITARY SERVICE TO BE CONSIDERED DEBTS OWED TO THE 
              UNITED STATES.

    Section 16135 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c)(1) Subject to subsection (a)(2), an obligation to pay a 
refund to the United States under subsection (a)(1)(B) in an amount 
determined under subsection (b) is, for all purposes, a debt owed to 
the United States.
    ``(2) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an enlistment or other 
agreement under this section does not discharge the person signing such 
enlistment or other agreement from a debt arising under the enlistment 
or agreement, respectively, under this subsection.''.

SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN MEMBERS TO 
              TRANSFER EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL 
              TO DEPENDENTS.

    (a) Clarification of Rate of Educational Assistance for Dependents 
to Whom Entitlement is Transferred.--Section 3020(h) of title 38, 
United States Code, is amended--
        (1) in paragraph (2)--
            (A) by striking ``paragraphs (4) and (5)'' and inserting 
        ``paragraphs (5) and (6)''; and
            (B) by striking ``and at the same rate'';
        (2) by redesignating paragraphs (3) through (6) as paragraphs 
    (4) through (7), respectively; and
        (3) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3)(A) Subject to subparagraph (B), the monthly rate of 
educational assistance payable to a dependent to whom entitlement is 
transferred under this section shall be the monthly amount payable 
under sections 3015 and 3022 of this title to the individual making the 
transfer.
    ``(B) The monthly rate of assistance payable to a dependent under 
subparagraph (A) shall be subject to the provisions of section 3032 of 
this title, except that the provisions of subsection (a)(1) of that 
section shall not apply even if the individual making the transfer to 
the dependent under this section is on active duty during all or any 
part of enrollment period of the dependent in which such entitlement is 
used.''.
    (b) Source of Funds from Increased Usage.--Section 3035(b) of such 
title is amended--
        (1) in paragraph (1), by striking ``paragraphs (2) and (3) of 
    this subsection'' and inserting ``paragraphs (2), (3), and (4)''; 
    and
        (2) by adding at the end the following new paragraph:
    ``(4) Payments attributable to the increased usage of benefits as a 
result of transfers of entitlement to basic educational assistance 
under section 3020 of this title shall be made from the Department of 
Defense Education Benefits Fund established under section 2006 of title 
10 or from appropriations made to the Department of Transportation, as 
appropriate.''.
    (c) Effective Date.--(1) The amendments made by subsection (a) 
shall take effect as if included in the enactment of section 3020 of 
title 38, United States Code, by section 654(a)(1) of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1153).
    (2) The amendments made by subsection (b) shall take effect as if 
made by section 654 of the National Defense Authorization Act for 
Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1153).

                       Subtitle F--Other Matters

SEC. 651. PAYMENT OF INTEREST ON STUDENT LOANS.

    (a) Authority.--(1) Chapter 109 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2174. Interest payment program: members on active duty

    ``(a) Authority.--(1) The Secretary concerned may pay in accordance 
with this section the interest and any special allowances that accrue 
on one or more student loans of an eligible member of the armed forces.
    ``(2) The Secretary of a military department may exercise the 
authority under paragraph (1) only if approved by the Secretary of 
Defense and subject to such requirements, conditions, and restrictions 
as the Secretary of Defense may prescribe.
    ``(b) Eligible Members.--A member of the armed forces is eligible 
for the benefit under subsection (a) while the member--
        ``(1) is serving on active duty in fulfillment of the member's 
    first enlistment in the armed forces or, in the case of an officer, 
    is serving on active duty and has not completed more than three 
    years of service on active duty;
        ``(2) is the debtor on one or more unpaid loans described in 
    subsection (c); and
        ``(3) is not in default on any such loan.
    ``(c) Student Loans.--The authority to make payments under 
subsection (a) may be exercised with respect to the following loans:
        ``(1) A loan made, insured, or guaranteed under part B of title 
    IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.).
        ``(2) A loan made under part D of such title (20 U.S.C. 1087a 
    et seq.).
        ``(3) A loan made under part E of such title (20 U.S.C. 1087aa 
    et seq.).
    ``(d) Maximum Benefit.--The months for which interest and any 
special allowance may be paid on behalf of a member of the armed forces 
under this section are any 36 consecutive months during which the 
member is eligible under subsection (b).
    ``(e) Funds for Payments.--Appropriations available for the pay and 
allowances of military personnel shall be available for payments under 
this section.
    ``(f) Coordination.--(1) The Secretary of Defense and, with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
the Secretary of the Department in which the Coast Guard is operating 
shall consult with the Secretary of Education regarding the 
administration of the authority under this section.
    ``(2) The Secretary concerned shall transfer to the Secretary of 
Education the funds necessary--
        ``(A) to pay interest and special allowances on student loans 
    under this section (in accordance with sections 428(o), 455(l), and 
    464(j) of the Higher Education Act of 1965 (20 U.S.C. 1078(o), 
    1087e(l), and 1087dd(j)); and
        ``(B) to reimburse the Secretary of Education for any 
    reasonable administrative costs incurred by the Secretary in 
    coordinating the program under this section with the administration 
    of the student loan programs under parts B, D, and E of title IV of 
    the Higher Education Act of 1965.
    ``(g) Special Allowance Defined.--In this section, the term 
`special allowance' means a special allowance that is payable under 
section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087-1).''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2174. Interest payment program: members on active duty.''.

    (b) Federal Family Education Loans and Direct Loans.--(1) 
Subsection (c)(3) of section 428 of the Higher Education Act of 1965 
(20 U.S.C. 1078) is amended--
        (A) in clause (i) of subparagraph (A)--
            (i) by striking ``or'' at the end of subclause (II);
            (ii) by inserting ``or'' at the end of subclause (III); and
            (iii) by adding at the end the following new subclause:

                    ``(IV) is eligible for interest payments to be made 
                on such loan for service in the Armed Forces under 
                section 2174 of title 10, United States Code, and, 
                pursuant to that eligibility, the interest is being 
                paid on such loan under subsection (o);'';

        (B) in clause (ii)(II) of subparagraph (A), by inserting ``or 
    (IV)'' after ``clause (i)(II)''; and
        (C) by striking subparagraph (C) and inserting the following:
            ``(C) shall contain provisions that specify that--
                ``(i) the form of forbearance granted by the lender 
            pursuant to this paragraph, other than subparagraph 
            (A)(i)(IV), shall be temporary cessation of payments, 
            unless the borrower selects forbearance in the form of an 
            extension of time for making payments, or smaller payments 
            than were previously scheduled; and
                ``(ii) the form of forbearance granted by the lender 
            pursuant to subparagraph (A)(i)(IV) shall be the temporary 
            cessation of all payments on the loan other than payments 
            of interest on the loan that are made under subsection (o); 
            and''.
    (2) Section 428 of such Act is further amended by adding at the end 
the following new subsection:
    ``(o) Armed Forces Student Loan Interest Payment Program.--
        ``(1) Authority.--Using funds received by transfer to the 
    Secretary under section 2174 of title 10, United States Code, for 
    the payment of interest and any special allowance on a loan to a 
    member of the Armed Forces that is made, insured, or guaranteed 
    under this part, the Secretary shall pay the interest and special 
    allowance on such loan as due for a period not in excess of 36 
    consecutive months. The Secretary may not pay interest or any 
    special allowance on such a loan out of any funds other than funds 
    that have been so transferred.
        ``(2) Forbearance.--During the period in which the Secretary is 
    making payments on a loan under paragraph (1), the lender shall 
    grant the borrower forbearance in accordance with the guaranty 
    agreement under subsection (c)(3)(A)(i)(IV).
        ``(3) Special allowance defined.--For the purposes of this 
    subsection, the term `special allowance', means a special allowance 
    that is payable with respect to a loan under section 438.''.
    (c) Federal Direct Loans.--Section 455 of the Higher Education Act 
of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following 
new subsection:
    ``(l) Armed Forces Student Loan Interest Payment Program.--
        ``(1) Authority.--Using funds received by transfer to the 
    Secretary under section 2174 of title 10, United States Code, for 
    the payment of interest on a loan made under this part to a member 
    of the Armed Forces, the Secretary shall pay the interest on the 
    loan as due for a period not in excess of 36 consecutive months. 
    The Secretary may not pay interest on such a loan out of any funds 
    other than funds that have been so transferred.
        ``(2) Forbearance.--During the period in which the Secretary is 
    making payments on a loan under paragraph (1), the Secretary shall 
    grant the borrower forbearance, in the form of a temporary 
    cessation of all payments on the loan other than the payments of 
    interest on the loan that are made under that paragraph.''.
    (d) Federal Perkins Loans.--Section 464 of the Higher Education Act 
of 1965 (20 U.S.C. 1087dd) is amended--
        (1) in subsection (e)--
            (A) by striking ``or'' at the end of paragraph (1);
            (B) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (C) by adding at the end the following new paragraph:
        ``(3) the borrower is eligible for interest payments to be made 
    on such loan for service in the Armed Forces under section 2174 of 
    title 10, United States Code, and, pursuant to that eligibility, 
    the interest on such loan is being paid under subsection (j), 
    except that the form of a forbearance under this paragraph shall be 
    a temporary cessation of all payments on the loan other than 
    payments of interest on the loan that are made under subsection 
    (j).''; and
        (2) by adding at the end the following new subsection:
    ``(j) Armed Forces Student Loan Interest Payment Program.--
        ``(1) Authority.--Using funds received by transfer to the 
    Secretary under section 2174 of title 10, United States Code, for 
    the payment of interest on a loan made under this part to a member 
    of the Armed Forces, the Secretary shall pay the interest on the 
    loan as due for a period not in excess of 36 consecutive months. 
    The Secretary may not pay interest on such a loan out of any funds 
    other than funds that have been so transferred.
        ``(2) Forbearance.--During the period in which the Secretary is 
    making payments on a loan under paragraph (1), the institution of 
    higher education shall grant the borrower forbearance in accordance 
    with subsection (e)(3).''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to interest, and any special allowance under section 
438 of the Higher Education Act of 1965, that accrue for months 
beginning on or after October 1, 2003, on student loans described in 
subsection (c) of section 2174 of title 10, United States Code (as 
added by subsection (a)), that were made before, on, or after such date 
to members of the Armed Forces who are on active duty (as defined in 
section 101(d) of title 10, United States Code) on or after that date.

SEC. 652. ADDITIONAL AUTHORITY TO PROVIDE ASSISTANCE FOR FAMILIES OF 
              MEMBERS OF THE ARMED FORCES.

    (a) Authority.--(1) Subchapter I of chapter 88 of title 10, United 
States Code, is amended by adding at the end the following new section:

``Sec. 1788. Additional family assistance

    ``(a) Authority.--The Secretary of Defense may provide for the 
families of members of the armed forces serving on active duty, in 
addition to any other assistance available for such families, any 
assistance that the Secretary considers appropriate to ensure that the 
children of such members obtain needed child care, education, and other 
youth services.
    ``(b) Primary Purpose of Assistance.--The assistance authorized by 
this section should be directed primarily toward providing needed 
family support, including child care, education, and other youth 
services, for children of members of the Armed Forces who are deployed, 
assigned to duty, or ordered to active duty in connection with a 
contingency operation.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by adding at the end the following new item:

``1788. Additional family assistance.''.

    (b) Effective Date.--Section 1788 of title 10, United States Code, 
as added by subsection (a), shall take effect on October 1, 2002.

SEC. 653. REPEAL OF AUTHORITY FOR ACCEPTANCE OF HONORARIA BY PERSONNEL 
              AT CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

    (a) Repeal of Exemption.--Section 542 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 
2413; 10 U.S.C. prec. 2161 note) is repealed.
    (b) Effective Date.--The repeal made by subsection (a) shall apply 
with respect to appearances made, speeches presented, and articles 
published on or after October 1, 2002.

SEC. 654. ADDITION OF DEFINITION OF CONTINENTAL UNITED STATES IN TITLE 
              37.

    (a) Definition.--Section 101(1) of title 37, United States Code, is 
amended--
        (1) by inserting ``(A)'' after ``(1)''; and
        (2) by adding at the end the following new subparagraph:
        ``(B) The term `continental United States' means the 48 
    contiguous States and the District of Columbia.''.
    (b) Conforming Amendments.--Title 37, United States Code, is 
amended as follows:
        (1) Section 314(a)(3) is amended by striking ``the 48 
    contiguous States and the District of Columbia'' and inserting 
    ``the continental United States''.
        (2) Section 403b(i) is amended by striking paragraph (6).
        (3) Section 409 is amended by striking subsection (e).
        (4) Section 411b(a) is amended by striking ``the 48 contiguous 
    States and the District of Columbia'' both places it appears and 
    inserting ``the continental United States''.
        (5) Section 411d is amended by striking subsection (d).
        (6) Section 430 is amended by striking subsection (f) and 
    inserting the following new subsection (f):
    ``(f) Definitions.--In this section:
        ``(1) The term `formal education' means the following:
            ``(A) A secondary education.
            ``(B) An undergraduate college education.
            ``(C) A graduate education pursued on a full-time basis at 
        an institution of higher education.
            ``(D) Vocational education pursued on a full-time basis at 
        a postsecondary vocational institution.
        ``(2) The term `institution of higher education' has the 
    meaning given that term in section 101 of the Higher Education Act 
    of 1965 (20 U.S.C. 1001).
        ``(3) The term `postsecondary vocational institution' has the 
    meaning given that term in section 102(c) of the Higher Education 
    Act of 1965 (20 U.S.C. 1002(c)).''.

                   TITLE VII--HEALTH CARE PROVISIONS

              Subtitle A--Health Care Program Improvements

Sec. 701. Elimination of requirement for TRICARE preauthorization of 
          inpatient mental health care for medicare-eligible 
          beneficiaries.
Sec. 702. Continued TRICARE eligibility of dependents residing at remote 
          locations after departure of sponsors for unaccompanied 
          assignments and eligibility of dependents of reserve component 
          members ordered to active duty.
Sec. 703. Eligibility of surviving dependents for TRICARE dental program 
          benefits after discontinuance of former enrollment.
Sec. 704. Department of Defense Medicare-Eligible Retiree Health Care 
          Fund.
Sec. 705. Approval of medicare providers as TRICARE providers.
Sec. 706. Technical corrections relating to transitional health care for 
          members separated from active duty.
Sec. 707. Extension of temporary authority to enter into personal 
          services contracts for the performance of health care 
          responsibilities at locations other than military medical 
          treatment facilities.
Sec. 708. Access to health care services for beneficiaries eligible for 
          TRICARE and Department of Veterans Affairs health care.
Sec. 709. Disclosure of information on Project 112 to Department of 
          Veterans Affairs.

                           Subtitle B--Reports

Sec. 711. Claims information.
Sec. 712. Comptroller General report on provision of care under the 
          TRICARE program.
Sec. 713. Repeal of report requirement.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                            Resources Sharing

Sec. 721. Revised coordination and sharing guidelines.
Sec. 722. Health care resources sharing and coordination project.
Sec. 723. Report on improved coordination and sharing of health care and 
          health care resources following domestic acts of terrorism or 
          domestic use of weapons of mass destruction.
Sec. 724. Interoperability of Department of Veterans Affairs and 
          Department of Defense pharmacy data systems.
Sec. 725. Joint pilot program for providing graduate medical education 
          and training for physicians.
Sec. 726. Repeal of certain limits on Department of Veterans Affairs 
          resources.

              Subtitle A--Health Care Program Improvements

SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE PREAUTHORIZATION OF 
              INPATIENT MENTAL HEALTH CARE FOR MEDICARE-ELIGIBLE 
              BENEFICIARIES.

    (a) Elimination of Requirement.--Section 1079(i)(3) of title 10, 
United States Code, is amended--
        (1) by inserting ``(A)'' after ``(3)'';
        (2) by striking ``Except in the case of an emergency,'' and 
    inserting ``Except as provided in subparagraph (B),''; and
        (3) by adding at the end the following new subparagraphs:
    ``(B) Preadmission authorization for inpatient mental health 
services is not required under subparagraph (A) in the following cases:
        ``(i) In the case of an emergency.
        ``(ii) In a case in which any benefits are payable for such 
    services under part A of title XVIII of the Social Security Act (42 
    U.S.C. 1395c et seq.), subject to subparagraph (C).
    ``(C) In a case of inpatient mental health services to which 
subparagraph (B)(ii) applies, the Secretary shall require advance 
authorization for a continuation of the provision of such services 
after benefits cease to be payable for such services under such part 
A.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect October 1, 2003.

SEC. 702. CONTINUED TRICARE ELIGIBILITY OF DEPENDENTS RESIDING AT 
              REMOTE LOCATIONS AFTER DEPARTURE OF SPONSORS FOR 
              UNACCOMPANIED ASSIGNMENTS AND ELIGIBILITY OF DEPENDENTS 
              OF RESERVE COMPONENT MEMBERS ORDERED TO ACTIVE DUTY.

    Section 1079(p) of title 10, United States Code, is amended--
        (1) in paragraph (1), by striking ``dependents referred to in 
    subsection (a) of a member of the uniformed services referred to in 
    section 1074(c)(3) of this title who are residing with the member'' 
    and inserting ``dependents described in paragraph (3)'';
        (2) by redesignating paragraph (3) as paragraph (4); and
        (3) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) This subsection applies with respect to a dependent referred 
to in subsection (a) who--
        ``(A) is a dependent of a member of the uniformed services 
    referred to in section 1074(c)(3) of this title and is residing 
    with the member;
        ``(B) is a dependent of a member who, after having served in a 
    duty assignment described in section 1074(c)(3) of this title, has 
    relocated without the dependent pursuant to orders for a permanent 
    change of duty station from a remote location described in 
    subparagraph (B)(ii) of such section where the member and the 
    dependent resided together while the member served in such 
    assignment, if the orders do not authorize dependents to accompany 
    the member to the new duty station at the expense of the United 
    States and the dependent continues to reside at the same remote 
    location, or
        ``(C) is a dependent of a reserve component member ordered to 
    active duty for a period of more than 30 days and is residing with 
    the member, and the residence is located more than 50 miles, or 
    approximately one hour of driving time, from the nearest military 
    medical treatment facility adequate to provide the needed care.''.

SEC. 703. ELIGIBILITY OF SURVIVING DEPENDENTS FOR TRICARE DENTAL 
              PROGRAM BENEFITS AFTER DISCONTINUANCE OF FORMER 
              ENROLLMENT.

    Section 1076a(k)(2) of title 10, United States Code, is amended by 
striking ``if the dependent is enrolled on the date of the death of the 
member in a dental benefits plan established under subsection (a)'' and 
inserting ``if, on the date of the death of the member, the dependent 
is enrolled in a dental benefits plan established under subsection (a) 
or is not enrolled in such a plan by reason of a discontinuance of a 
former enrollment under subsection (f)''.

SEC. 704. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE 
              FUND.

    (a) Source of Funds for Monthly Accrual Payments Into the Fund.--
Section 1116(c) of title 10, United States Code, is amended by striking 
``health care programs'' and inserting ``pay of members''.
    (b) Mandatory Participation of Other Uniformed Services.--Section 
1111(c) of such title is amended--
        (1) in the first sentence, by striking ``may enter into an 
    agreement with any other administering Secretary'' and inserting 
    ``shall enter into an agreement with each other administering 
    Secretary''; and
        (2) in the second sentence, by striking ``Any such'' and 
    inserting ``The''.

SEC. 705. APPROVAL OF MEDICARE PROVIDERS AS TRICARE PROVIDERS.

    (a) In General.--Section 1079 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(q) Subject to subsection (a), a physician or other health care 
practitioner who is eligible to receive reimbursement for services 
provided under medicare (as defined in section 1086(d)(3)(C) of this 
title) shall be considered approved to provide medical care authorized 
under this section and section 1086 of this title unless the 
administering Secretaries have information indicating medicare, 
TRICARE, or other Federal health care program integrity violations by 
the physician or other health care practitioner.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to any contract under the TRICARE program entered 
into on or after the date of the enactment of this Act.

SEC. 706. TECHNICAL CORRECTIONS RELATING TO TRANSITIONAL HEALTH CARE 
              FOR MEMBERS SEPARATED FROM ACTIVE DUTY.

    (a) Continued Applicability to Dependents.--Subsection (a)(1) of 
section 736 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1172) is amended to read as 
follows:
        ``(1) in paragraph (1), by striking `paragraph (2), a member' 
    and all that follows through `of the member),' and inserting 
    `paragraph (3), a member of the armed forces who is separated from 
    active duty as described in paragraph (2) (and the dependents of 
    the member)';''.
    (b) Clarification Regarding the Coast Guard.--Subsection (b)(2) of 
such section is amended to read as follows:
        ``(2) in subsection (e)--
            ``(A) by striking the first sentence; and
            ``(B) by striking `the Coast Guard' in the second sentence 
        and inserting `the members of the Coast Guard and their 
        dependents'.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as of December 28, 2001, and as if included in the National 
Defense Authorization Act for Fiscal Year 2002 as enacted.

SEC. 707. EXTENSION OF TEMPORARY AUTHORITY TO ENTER INTO PERSONAL 
              SERVICES CONTRACTS FOR THE PERFORMANCE OF HEALTH CARE 
              RESPONSIBILITIES AT LOCATIONS OTHER THAN MILITARY MEDICAL 
              TREATMENT FACILITIES.

    Section 1091(a)(2) of title 10, United States Code, is amended by 
striking ``December 31, 2002'' and inserting ``December 31, 2003''.

SEC. 708. ACCESS TO HEALTH CARE SERVICES FOR BENEFICIARIES ELIGIBLE FOR 
              TRICARE AND DEPARTMENT OF VETERANS AFFAIRS HEALTH CARE.

    (a) Requirement To Establish Process.--(1) The Secretary of Defense 
shall prescribe in regulations a process for resolving issues relating 
to patient safety and continuity of care for covered beneficiaries who 
are concurrently entitled to health care under the TRICARE program and 
eligible for health care services provided by the Department of 
Veterans Affairs. The Secretary shall--
        (A) ensure that the process provides for coordination of, and 
    access to, health care from the two sources in a manner that 
    prevents diminution of access to health care from either source; 
    and
        (B) in consultation with the Secretary of Veterans Affairs, 
    prescribe a clear definition of an ``episode of care'' for use in 
    the resolution of patient safety and continuity of care issues 
    under such process.
    (2) Not later than May 1, 2003, the Secretary shall submit to the 
Committees on Armed Services of the Senate and of the House of 
Representatives a report describing the process prescribed under 
paragraph (1).
    (3) While prescribing the process under paragraph (1) and upon 
completion of the report under paragraph (2), the Secretary shall 
provide to the Comptroller General information that would be relevant 
in carrying out the study required by subsection (b).
    (b) Comptroller General Study and Report.--(1) The Comptroller 
General shall conduct a study of the health care issues of covered 
beneficiaries described in subsection (a). The study shall include the 
following:
        (A) An analysis of whether covered beneficiaries who seek 
    services through the Department of Veterans Affairs are receiving 
    needed health care services in a timely manner from the Department 
    of Veterans Affairs, as compared to the timeliness of the care 
    available to covered beneficiaries under TRICARE Prime (as set 
    forth in access to care standards under TRICARE program policy that 
    are applicable to the care being sought).
        (B) An evaluation of the quality of care for covered 
    beneficiaries who do not receive needed services from the 
    Department of Veterans Affairs within a time period that is 
    comparable to the time period provided for under such access to 
    care standards and who then must seek alternative care under the 
    TRICARE program.
        (C) Recommendations to improve access to, and timeliness and 
    quality of, care for covered beneficiaries described in subsection 
    (a).
        (D) An evaluation of the feasibility and advisability of making 
    access to care standards applicable jointly under the TRICARE 
    program and the Department of Veterans Affairs health care system.
        (E) A review of the process prescribed by the Secretary of 
    Defense under subsection (a) to determine whether the process 
    ensures the adequacy and quality of the health care services 
    provided to covered beneficiaries under the TRICARE program and 
    through the Department of Veterans Affairs, together with 
    timeliness of access to such services and patient safety.
    (2) Not later than 60 days after the congressional committees 
specified in subsection (a)(2) receive the report required under that 
subsection, the Comptroller General shall submit to those committees a 
report on the study conducted under this subsection.
    (c) Definitions.--In this section:
        (1) The term ``covered beneficiary'' has the meaning provided 
    by section 1072(5) of title 10, United States Code.
        (2) The term ``TRICARE program'' has the meaning provided by 
    section 1072(7) of such title.
        (3) The term ``TRICARE Prime'' has the meaning provided by 
    section 1097a(f) of such title.

SEC. 709. DISCLOSURE OF INFORMATION ON PROJECT 112 TO DEPARTMENT OF 
              VETERANS AFFAIRS.

    (a) Plan for Disclosure of Information.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress and the Secretary of Veterans Affairs a 
comprehensive plan for the review, declassification, and submittal to 
the Department of Veterans Affairs of all records and information of 
the Department of Defense on Project 112 that are relevant to the 
provision of benefits by the Secretary of Veterans Affairs to members 
of the Armed Forces who participated in that project.
    (b) Plan Requirements.--(1) The records and information covered by 
the plan under subsection (a) shall be the records and information 
necessary to permit the identification of members of the Armed Forces 
who were or may have been exposed to chemical or biological agents as a 
result of Project 112.
    (2) The plan shall provide for completion of all activities 
contemplated by the plan not later than one year after the date of the 
enactment of this Act.
    (c) Identification of Other Projects or Tests.--The Secretary of 
Defense also shall work with veterans and veterans service 
organizations to identify other projects or tests conducted by the 
Department of Defense that may have exposed members of the Armed Forces 
to chemical or biological agents.
    (d) GAO Reports on Plan and Implementation.--(1) Not later than 30 
days after submission of the plan under subsection (a), the Comptroller 
General shall submit to Congress a report reviewing the plan. The 
report shall include an examination of whether adequate resources have 
been committed, the timeliness of the information to be released to the 
Department of Veterans Affairs, and the adequacy of the procedures to 
notify affected veterans of potential exposure.
    (2) Not later than six months after implementation of the plan 
begins, the Comptroller General shall submit to Congress a report 
evaluating the progress in the implementation of the plan.
    (e) DOD Reports on Implementation.--(1) Not later than six months 
after the date of the enactment of this Act, and upon completion of all 
activities contemplated by the plan under subsection (a), the Secretary 
of Defense shall submit to Congress and the Secretary of Veterans 
Affairs a report on progress in the implementation of the plan.
    (2) Each report under paragraph (1) shall include, for the period 
covered by such report--
        (A) the number of records reviewed;
        (B) each test, if any, under Project 112 identified during such 
    review;
        (C) for each test so identified--
            (i) the test name;
            (ii) the test objective;
            (iii) the chemical or biological agent or agents involved; 
        and
            (iv) the number of members of the Armed Forces, and 
        civilian personnel, potentially effected by such test; and
        (D) the extent of submittal of records and information to the 
    Secretary of Veterans Affairs under this section.
    (f) Project 112.--For purposes of this section, Project 112 refers 
to the chemical and biological weapons vulnerability-testing program of 
the Department of Defense conducted by the Deseret Test Center from 
1963 to 1969. The project included the Shipboard Hazard and Defense 
(SHAD) project of the Navy.

                          Subtitle B--Reports

SEC. 711. CLAIMS INFORMATION.

    (a) Correspondence to Medicare Claims Information Requirements.--
Section 1095c of title 10, United States Code, is amended by adding at 
the end the following new subsection:
    ``(d) Correspondence to Medicare Claims Information Requirements.--
The Secretary of Defense, in consultation with the other administering 
Secretaries, shall limit the information required in support of claims 
for payment for health care items and services provided under the 
TRICARE program to that information that is identical to the 
information that would be required for claims for reimbursement for 
those items and services under title XVIII of the Social Security Act 
(42 U.S.C. 1395 et seq.) except for that information, if any, that is 
uniquely required by the TRICARE program. The Secretary of Defense 
shall report to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives any 
information that is excepted under this provision, and the 
justification for that exception.''.
    (b) Applicability.--The Secretary of Defense, in consultation with 
the other administering Secretaries referred to in section 1072(3) of 
title 10, United States Code, shall apply the limitations required 
under subsection (d) of section 1095c of such title (as added by 
subsection (a)) with respect to contracts entered into under the 
TRICARE program on or after October 1, 2002.
    (c) Comptroller General Report on TRICARE Claims Processing.--Not 
later than March 31, 2003, the Comptroller General shall submit to 
Congress an evaluation of the continuing impediments to cost effective 
claims processing under the TRICARE program. The evaluation shall 
include a discussion of the following:
        (1) The extent of progress implementing improvements in claims 
    processing, particularly regarding the application of best industry 
    practices.
        (2) The extent of progress in simplifying claims processing 
    procedures, including the elimination of, or reduction in, the 
    complexity of the Health Care Service Record requirements.
        (3) The cost effectiveness of the data collection and fraud 
    prevention capabilities of existing claims processing practices.
        (4) Recommendations for improving the claims processing system 
    that will reduce processing and administration costs, create 
    greater competition, and improve fraud-prevention activities.

SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION OF CARE UNDER THE 
              TRICARE PROGRAM.

    Not later than March 31, 2003, the Comptroller General shall submit 
to Congress an evaluation of the nature of, reasons for, extent of, and 
trends regarding network provider instability under the TRICARE 
program, and the effectiveness of efforts by the Department of Defense 
and managed care support contractors to measure and mitigate such 
instability. The evaluation shall include a discussion of the 
following:
        (1) The adequacy of measurement tools of TRICARE network 
    instability and their use by the Department of Defense and managed 
    care support contractors to assess network adequacy and stability.
        (2) Recommendations for improvements needed in measurement 
    tools or their application.
        (3) The relationship of reimbursement rates and administration 
    requirements (including preauthorization requirements) to TRICARE 
    network instability.
        (4) The extent of problems under the TRICARE program and likely 
    future trends with and without intervention using existing 
    authority.
        (5) Use of existing authority by the Department of Defense and 
    TRICARE managed care support contractors to apply higher 
    reimbursement rates in specific geographic areas.
        (6) Recommendations for specific fiscally prudent measures that 
    could mitigate negative trends or improve provider and network 
    stability.

SEC. 713. REPEAL OF REPORT REQUIREMENT.

    Notwithstanding subsection (f)(2) of section 712 of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-179), the 
amendment made by subsection (e) of such section shall not take effect 
and the paragraph amended by such subsection is repealed.

Subtitle C--Department of Defense-Department of Veterans Affairs Health 
                           Resources Sharing

SEC. 721. REVISED COORDINATION AND SHARING GUIDELINES.

    (a) In General.--(1) Section 8111 of title 38, United States Code, 
is amended to read as follows:

``Sec. 8111. Sharing of Department of Veterans Affairs and Department 
            of Defense health care resources

    ``(a) Required Coordination and Sharing of Health Care Resources.--
The Secretary of Veterans Affairs and the Secretary of Defense shall 
enter into agreements and contracts for the mutually beneficial 
coordination, use, or exchange of use of the health care resources of 
the Department of Veterans Affairs and the Department of Defense with 
the goal of improving the access to, and quality and cost effectiveness 
of, the health care provided by the Veterans Health Administration and 
the Military Health System to the beneficiaries of both Departments.
    ``(b) Joint Requirements for Secretaries of Veterans Affairs and 
Defense.--To facilitate the mutually beneficial coordination, use, or 
exchange of use of the health care resources of the two Departments, 
the two Secretaries shall carry out the following functions:
        ``(1) Develop and publish a joint strategic vision statement 
    and a joint strategic plan to shape, focus, and prioritize the 
    coordination and sharing efforts among appropriate elements of the 
    two Departments and incorporate the goals and requirements of the 
    joint sharing plan into the strategic and performance plan of each 
    Department under the Government Performance and Results Act.
        ``(2) Jointly fund the interagency committee provided for under 
    subsection (c).
        ``(3) Continue to facilitate and improve sharing between 
    individual Department of Veterans Affairs and Department of Defense 
    health care facilities, but giving priority of effort to 
    initiatives (A) that improve sharing and coordination of health 
    resources at the intraregional and nationwide levels, and (B) that 
    improve the ability of both Departments to provide coordinated 
    health care.
        ``(4) Establish a joint incentive program under subsection (d).
    ``(c) DOD-VA Health Executive Committee.--(1) There is established 
an interagency committee to be known as the Department of Veterans 
Affairs-Department of Defense Health Executive Committee (hereinafter 
in this section referred to as the `Committee'). The Committee is 
composed of--
        ``(A) the Deputy Secretary of Veterans Affairs and such other 
    officers and employees of the Department of Veterans Affairs as the 
    Secretary of Veterans Affairs may designate; and
        ``(B) the Under Secretary of Defense for Personnel and 
    Readiness and such other officers and employees of the Department 
    of Defense as the Secretary of Defense may designate.
    ``(2)(A) During odd-numbered fiscal years, the Deputy Secretary of 
Veterans Affairs shall chair the Committee. During even-numbered fiscal 
years, the Under Secretary of Defense shall chair the Committee.
    ``(B) The Deputy Secretary and the Under Secretary shall determine 
the size and structure of the Committee, as well as the administrative 
and procedural guidelines for the operation of the Committee. The two 
Departments shall share equally the Committee's cost of personnel and 
administrative support and services. Support for such purposes shall be 
provided at a level sufficient for the efficient operation of the 
Committee, including a permanent staff and, as required, other 
temporary working groups of appropriate departmental staff and outside 
experts.
    ``(3) The Committee shall recommend to the Secretaries strategic 
direction for the joint coordination and sharing efforts between and 
within the two Departments under this section and shall oversee 
implementation of those efforts.
    ``(4) The Committee shall submit to the two Secretaries and to 
Congress an annual report containing such recommendations as the 
Committee considers appropriate.
    ``(5) In order to enable the Committee to make recommendations in 
its annual report under paragraph (4), the Committee shall do the 
following:
        ``(A) Review existing policies, procedures, and practices 
    relating to the coordination and sharing of health care resources 
    between the two Departments.
        ``(B) Identify changes in policies, procedures, and practices 
    that, in the judgment of the Committee, would promote mutually 
    beneficial coordination, use, or exchange of use of the health care 
    resources of the two Departments, with the goal of improving the 
    access to, and quality and cost effectiveness of, the health care 
    provided by the Veterans Health Administration and the Military 
    Health System to the beneficiaries of both Departments.
        ``(C) Identify and assess further opportunities for the 
    coordination and sharing of health care resources between the 
    Departments that, in the judgment of the Committee, would not 
    adversely affect the range of services, the quality of care, or the 
    established priorities for care provided by either Department.
        ``(D) Review the plans of both Departments for the acquisition 
    of additional health care resources, especially new facilities and 
    major equipment and technology, in order to assess the potential 
    effect of such plans on further opportunities for the coordination 
    and sharing of health care resources.
        ``(E) Review the implementation of activities designed to 
    promote the coordination and sharing of health care resources 
    between the Departments.
    ``(6) The Committee chairman, under procedures jointly developed by 
the two Secretaries, may require the Inspector General of either or 
both Departments to assist in activities under paragraph (5)(E).
    ``(d) Joint Incentives Program.--(1) Pursuant to subsection (b)(4), 
the two Secretaries shall carry out a program to identify, provide 
incentives to, implement, fund, and evaluate creative coordination and 
sharing initiatives at the facility, intraregional, and nationwide 
levels. The program shall be administered by the Committee established 
in subsection (c), under procedures jointly prescribed by the two 
Secretaries.
    ``(2) To facilitate the incentive program, effective October 1, 
2003, there is established in the Treasury a fund to be known as the 
`DOD-VA Health Care Sharing Incentive Fund'. Each Secretary shall 
annually contribute to the fund a minimum of $15,000,000 from the funds 
appropriated to that Secretary's Department. Such funds shall remain 
available until expended.
    ``(3)(A) For each fiscal year during which the program under this 
subsection is in effect, the Comptroller General shall conduct a review 
of the implementation and effectiveness of the incentives program under 
this subsection. Upon completion of each such annual review, the 
Comptroller General shall submit to the Committees on Armed Services 
and Veterans' Affairs of the Senate and House of Representatives a 
report on the results of that review. Each such report shall be 
submitted not later than February 28 of the year following the fiscal 
year covered by the report. In addition, the Comptroller General shall 
conduct such a review during the first five months of fiscal year 2004 
and, not later than February 28, 2004, shall submit to those committees 
a report on the implementation and effectiveness of the incentives 
program under this subsection to that date.
    ``(B) Each report under this paragraph shall describe activities 
carried out under the program under this subsection during the 
preceding fiscal year (or, in the case of the first such report, to the 
date of the submission of the report). Each report shall include at 
least the following:
        ``(i) An analysis of the initiatives funded by the Committee, 
    and the funds so expended by such initiatives, from the DOD-VA 
    Health Care Sharing Incentive Fund, including the purposes and 
    effects of those initiatives on improving access to care by 
    beneficiaries, improvements in the quality of care received by 
    those beneficiaries, and efficiencies gained in delivering services 
    to those beneficiaries.
        ``(ii) Other matters of interest, including recommendations 
    from the Comptroller General for legislative improvements to the 
    program.
    ``(4) The program under this subsection shall terminate on 
September 30, 2007.
    ``(e) Guidelines and Policies for Implementation of Coordination 
and Sharing Recommendations, Contracts, and Agreements.--(1) To 
implement the recommendations made by the Committee under subsection 
(c)(2), as well as to carry out other health care contracts and 
agreements for coordination and sharing initiatives as they consider 
appropriate, the two Secretaries shall jointly issue guidelines and 
policy directives. Such guidelines and policies shall provide for 
coordination and sharing that--
        ``(A) is consistent with the health care responsibilities of 
    the Department of Veterans Affairs under this title and with the 
    health care responsibilities of the Department of Defense under 
    chapter 55 of title 10;
        ``(B) will not adversely affect the range of services, the 
    quality of care, or the established priorities for care provided by 
    either Department; and
        ``(C) will not reduce capacities in certain specialized 
    programs of the Department of Veterans Affairs that the Secretary 
    is required to maintain in accordance with section 1706(b) of this 
    title.
    ``(2) To facilitate the sharing and coordination of health care 
services between the two Departments, the two Secretaries shall jointly 
develop and implement guidelines for a standardized, uniform payment 
and reimbursement schedule for those services. Such schedule shall be 
implemented no later than October 1, 2003, and shall be revised 
periodically as necessary. The two Secretaries, following 
implementation of the schedule, may on a case-by-case basis waive 
elements of the schedule if they jointly agree that such a waiver is in 
the best interests of both Departments.
    ``(3)(A) The guidelines established under paragraph (1) shall 
authorize the heads of individual Department of Defense and Department 
of Veterans Affairs medical facilities and service regions to enter 
into health care resources coordination and sharing agreements.
    ``(B) Under any such agreement, an individual who is a primary 
beneficiary of one Department may be provided health care, as provided 
in the agreement, at a facility or in the service region of the other 
Department that is a party to the sharing agreement.
    ``(C) Each such agreement shall identify the health care resources 
to be shared.
    ``(D) Each such agreement shall provide, and shall specify 
procedures designed to ensure, that the availability of direct health 
care to individuals who are not primary beneficiaries of the providing 
Department is (i) on a referral basis from the facility or service 
region of the other Department, and (ii) does not (as determined by the 
head of the providing facility or region) adversely affect the range of 
services, the quality of care, or the established priorities for care 
provided to the primary beneficiaries of the providing Department.
    ``(E) Each such agreement shall provide that a providing Department 
or service region shall be reimbursed for the cost of the health care 
resources provided under the agreement and that the rate of such 
reimbursement shall be as determined in accordance with paragraph (2).
    ``(F) Each proposal for an agreement under this paragraph shall be 
effective (i) on the 46th day after the receipt of such proposal by the 
Committee, unless earlier disapproved, or (ii) if earlier approved by 
the Committee, on the date of such approval.
    ``(G) Any funds received through such a uniform payment and 
reimbursement schedule shall be credited to funds that have been 
allotted to the facility of either Department that provided the care or 
services, or is due the funds from, any such agreement.
    ``(f) Annual Joint Report.--(1) At the time the President's budget 
is transmitted to Congress in any year pursuant to section 1105 of 
title 31, the two Secretaries shall submit to Congress a joint report 
on health care coordination and sharing activities under this section 
during the fiscal year that ended during the previous calendar year.
    ``(2) Each report under this section shall include the following:
        ``(A) The guidelines prescribed under subsection (e) (and any 
    revision of such guidelines).
        ``(B) The assessment of further opportunities identified under 
    subparagraph (C) of subsection (c)(5) for the sharing of health-
    care resources between the two Departments.
        ``(C) Any recommendation made under subsection (c)(4) during 
    such fiscal year.
        ``(D) A review of the sharing agreements entered into under 
    subsection (e) and a summary of activities under such agreements 
    during such fiscal year and a description of the results of such 
    agreements in improving access to, and the quality and cost 
    effectiveness of, the health care provided by the Veterans Health 
    Administration and the Military Health System to the beneficiaries 
    of both Departments.
        ``(E) A summary of other planning and activities involving 
    either Department in connection with promoting the coordination and 
    sharing of Federal health-care resources during the preceding 
    fiscal year.
        ``(F) Such recommendations for legislation as the two 
    Secretaries consider appropriate to facilitate the sharing of 
    health-care resources between the two Departments.
    ``(3) In addition to the matters specified in paragraph (2), the 
two Secretaries shall include in the annual report under this 
subsection an overall status report of the progress of health resources 
sharing between the two Departments as a consequence of subtitle C of 
title VII of the Bob Stump National Defense Authorization Act for 
Fiscal Year 2003 and of other sharing initiatives taken during the 
period covered by the report. Such status report shall indicate the 
status of such sharing and shall include appropriate data as well as 
analyses of that data. The annual report shall include the following:
        ``(A) Enumerations and explanations of major policy decisions 
    reached by the two Secretaries during the period covered by the 
    report period with respect to sharing between the two Departments.
        ``(B) A description of progress made in new ventures or 
    particular areas of sharing and coordination that would be of 
    policy interest to Congress consistent with the intent of such 
    subtitle.
        ``(C) A description of enhancements of access to care of 
    beneficiaries of both Departments that came about as a result of 
    new sharing approaches brought about by such subtitle.
        ``(D) A description of proposals for which funds are provided 
    through the joint incentives program under subsection (d), together 
    with a description of their results or status at the time of the 
    report, including access improvements, savings, and quality-of-care 
    enhancements they brought about, and a description of any 
    additional use of funds made available under subsection (d).
    ``(4) In addition to the matters specified in paragraphs (2) and 
(3), the two Secretaries shall include in the annual report under this 
subsection for each year through 2008 the following:
        ``(A) A description of the measures taken, or planned to be 
    taken, to implement the health resources sharing project under 
    section 722 of the Bob Stump National Defense Authorization Act for 
    Fiscal Year 2003 and any cost savings anticipated, or cost sharing 
    achieved, at facilities participating in the project, including 
    information on improvements in access to care, quality, and 
    timeliness, as well as impediments encountered and legislative 
    recommendations to ameliorate such impediments.
        ``(B) A description of the use of the waiver authority provided 
    by section 722(d)(1) of the Bob Stump National Defense 
    Authorization Act for Fiscal Year 2003, including--
            ``(i) a statement of the numbers and types of requests for 
        waivers under that section of administrative policies that have 
        been made during the period covered by the report and, for each 
        such request, an explanation of the content of each request, 
        the intended purpose or result of the requested waiver, and the 
        disposition of each request; and
            ``(ii) descriptions of any new administrative policies that 
        enhance the success of the project.
    ``(5) In addition to the matters specified in paragraphs (2), (3), 
and (4), the two Secretaries shall include in the annual report under 
this subsection for each year through 2009 a report on the pilot 
program for graduate medical education under section 725 of the Bob 
Stump National Defense Authorization Act for Fiscal Year 2003, 
including activities under the program during the preceding year and 
each Secretary's assessment of the efficacy of providing education and 
training under that program.
    ``(g) Definitions.--For the purposes of this section:
        ``(1) The term `beneficiary' means a person who is a primary 
    beneficiary of the Department of Veterans Affairs or of the 
    Department of Defense.
        ``(2) The term `direct health care' means health care provided 
    to a beneficiary in a medical facility operated by the Department 
    of Veterans Affairs or the Department of Defense.
        ``(3) The term `head of a medical facility' (A) with respect to 
    a medical facility of the Department of Veterans Affairs, means the 
    director of the facility, and (B) with respect to a medical 
    facility of the Department of Defense, means the medical or dental 
    officer in charge or the contract surgeon in charge.
        ``(4) The term `health-care resource' includes hospital care, 
    medical services, and rehabilitative services, as those terms are 
    defined in paragraphs (5), (6), and (8), respectively, of section 
    1701 of this title, services under sections 1782 and 1783 of this 
    title, any other health-care service, and any health-care support 
    or administrative resource.
        ``(5) The term `primary beneficiary' (A) with respect to the 
    Department means a person who is eligible under this title (other 
    than under section 1782, 1783, or 1784 or subsection (d) of this 
    section) or any other provision of law for care or services in 
    Department medical facilities, and (B) with respect to the 
    Department of Defense, means a member or former member of the Armed 
    Forces who is eligible for care under section 1074 of title 10.
        ``(6) The term `providing Department' means the Department of 
    Veterans Affairs, in the case of care or services furnished by a 
    facility of the Department of Veterans Affairs, and the Department 
    of Defense, in the case of care or services furnished by a facility 
    of the Department of Defense.
        ``(7) The term `service region' means a geographic service area 
    of the Veterans Health Administration, in the case of the 
    Department of Veterans Affairs, and a service region, in the case 
    of the Department of Defense.''.
    (2) The item relating to that section in the table of sections at 
the beginning of chapter 81 of title 38, United States Code, is amended 
to read as follows:

``8111. Sharing of Department of Veterans Affairs and Department of 
          Defense health care resources.''.

    (b) Conforming Amendment.--Section 1104(a) of title 10, United 
States Code, is amended by striking ``may'' and inserting ``shall''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2003.

SEC. 722. HEALTH CARE RESOURCES SHARING AND COORDINATION PROJECT.

    (a) Establishment.--(1) The Secretary of Veterans Affairs and the 
Secretary of Defense shall conduct a health care resources sharing 
project to serve as a test for evaluating the feasibility, and the 
advantages and disadvantages, of measures and programs designed to 
improve the sharing and coordination of health care and health care 
resources between the Department of Veterans Affairs and the Department 
of Defense. The project shall be carried out, as a minimum, at the 
sites identified under subsection (b).
    (2) Reimbursement between the two Departments with respect to the 
project under this section shall be made in accordance with the 
provisions of section 8111(e)(2) of title 38, United States Code, as 
amended by section 721(a).
    (b) Site Identification.--(1) Not later than 90 days after the date 
of the enactment of this Act, the Secretaries shall jointly identify 
not less than three sites for the conduct of the project under this 
section.
    (2) For purposes of this section, a site at which the resource 
sharing project shall be carried out is an area in the United States in 
which--
        (A) one or more military treatment facilities and one or more 
    VA health care facilities are situated in relative proximity to 
    each other, including facilities engaged in joint ventures as of 
    the date of the enactment of this Act; and
        (B) for which an agreement to coordinate care and programs for 
    patients at those facilities could be implemented not later than 
    October 1, 2004.
    (c) Conduct of Project.--(1) At sites at which the project is 
conducted, the Secretaries shall provide a test of a coordinated 
management system for the military treatment facilities and VA health 
care facilities participating in the project. Such a coordinated 
management system for a site shall include at least one of the elements 
specified in paragraph (2), and each of the elements specified in that 
paragraph must be included in the coordinated management system for at 
least one of the participating sites.
    (2) Elements of a coordinated management system referred to in 
paragraph (1) are the following:
        (A) A budget and financial management system for those 
    facilities that--
            (i) provides managers with information about the costs of 
        providing health care by both Departments at the site; and
            (ii) allows managers to assess the advantages and 
        disadvantages (in terms of relative costs, benefits, and 
        opportunities) of using resources of either Department to 
        provide or enhance health care to beneficiaries of either 
        Department.
        (B) A coordinated staffing and assignment system for the 
    personnel (including contract personnel) employed at or assigned to 
    those facilities, including clinical practitioners of either 
    Department.
        (C) Medical information and information technology systems for 
    those facilities that--
            (i) are compatible with the purposes of the project;
            (ii) communicate with medical information and information 
        technology systems of corresponding elements of those 
        facilities; and
            (iii) incorporate minimum standards of information quality 
        that are at least equivalent to those adopted for the 
        Departments at large in their separate health care systems.
    (d) Authority To Waive Certain Administrative Policies.--(1)(A) In 
order to carry out subsection (c), the Secretary of Defense may, in the 
Secretary's discretion, waive any administrative policy of the 
Department of Defense otherwise applicable to that subsection that 
specifically conflicts with the purposes of the project, in instances 
in which the Secretary determines that the waiver is necessary for the 
purposes of the project.
    (B) In order to carry out subsection (c), the Secretary of Veterans 
Affairs may, in the Secretary's discretion, waive any administrative 
policy of the Department of Veterans Affairs otherwise applicable to 
that subsection that specifically conflicts with the purposes of the 
project, in instances in which the Secretary determines that the waiver 
is necessary for the purposes of the project.
    (C) The two Secretaries shall establish procedures for resolving 
disputes that may arise from the effects of policy changes that are not 
covered by other agreements or existing procedures.
    (2) No waiver under paragraph (1) may alter any labor-management 
agreement in effect as of the date of the enactment of this Act or 
adopted by either Department during the period of the project.
    (e) Use by DOD of Certain Title 38 Personnel Authorities.--(1) In 
order to carry out subsection (c), the Secretary of Defense may apply 
to civilian personnel of the Department of Defense assigned to or 
employed at a military treatment facility participating in the project 
any of the provisions of subchapters I, III, and IV of chapter 74 of 
title 38, United States Code, determined appropriate by the Secretary.
    (2) For purposes of paragraph (1), any reference in chapter 74 of 
title 38, United States Code--
        (A) to the ``Secretary'' or the ``Under Secretary for Health'' 
    shall be treated as referring to the Secretary of Defense; and
        (B) to the ``Veterans Health Administration'' shall be treated 
    as referring to the Department of Defense.
    (f) Funding.--From amounts available for health care for a fiscal 
year, each Secretary shall make available to carry out the project not 
less than--
        (1) $3,000,000 for fiscal year 2003;
        (2) $6,000,000 for fiscal year 2004; and
        (3) $9,000,000 for each succeeding year during which the 
    project is in effect.
    (g) Definitions.--For purposes of this section:
        (1) The term ``military treatment facility'' means a medical 
    facility under the jurisdiction of the Secretary of a military 
    department.
        (2) The term ``VA health care facility'' means a facility under 
    the jurisdiction of the Veterans Health Administration of the 
    Department of Veterans Affairs.
    (h) Performance Review.--(1) The Comptroller General shall provide 
for an annual on-site review at each of the project locations selected 
by the Secretaries under this section.
    (2) Not later than 90 days after completion of the annual review 
under paragraph (1), the Comptroller General shall submit a report on 
such review to the Committees on Armed Services and Veterans' Affairs 
of the Senate and House of Representatives.
    (3) Each such report shall include the following:
        (A) The strategic mission coordination between shared 
    activities.
        (B) The accuracy and validity of performance data used to 
    evaluate sharing performance and changes in standards of care or 
    services at the shared facilities.
        (C) A statement that all appropriated funds designated for 
    sharing activities are being used for direct support of sharing 
    initiatives.
        (D) Recommendations concerning continuance of the project at 
    each site for the succeeding 12-month period.
    (4) Whenever there is a recommendation under paragraph (3)(D) to 
discontinue a resource sharing project under this section, the two 
Secretaries shall act upon that recommendation as soon as practicable.
    (5) In the initial report under this subsection, the Comptroller 
General shall validate the baseline information used for comparative 
analysis.
    (i) Termination.--(1) The project, and the authority provided by 
this section, shall terminate on September 30, 2007.
    (2) The two Secretaries jointly may terminate the performance of 
the project at any site when the performance of the project at that 
site fails to meet performance expectations of the Secretaries, based 
on recommendations from the Comptroller General under subsection (h) or 
on other information available to the Secretaries to warrant such 
action.

SEC. 723. REPORT ON IMPROVED COORDINATION AND SHARING OF HEALTH CARE 
              AND HEALTH CARE RESOURCES FOLLOWING DOMESTIC ACTS OF 
              TERRORISM OR DOMESTIC USE OF WEAPONS OF MASS DESTRUCTION.

    (a) Joint Review.--The Secretary of Defense and the Secretary of 
Veterans Affairs shall jointly review the adequacy of current processes 
and existing statutory authorities and policy governing the capability 
of the Department of Defense and the Department of Veterans Affairs to 
provide health care to members of the Armed Forces following domestic 
acts of terrorism or domestic use of weapons of mass destruction, both 
before and after any declaration of national emergency. Such review 
shall include a determination of the adequacy of current authorities in 
providing for the coordination and sharing of health care resources 
between the two Departments in such cases, particularly before the 
declaration of a national emergency.
    (b) Report to Congress.--The two Secretaries shall include a joint 
report on the review under subsection (a), including any recommended 
legislative changes, shall be submitted to Congress as part of the 
fiscal year 2004 budget submission to Congress.

SEC. 724. INTEROPERABILITY OF DEPARTMENT OF VETERANS AFFAIRS AND 
              DEPARTMENT OF DEFENSE PHARMACY DATA SYSTEMS.

    (a) Interoperability.--The Secretary of Veterans Affairs and the 
Secretary of Defense shall seek to ensure that on or before October 1, 
2004, the Department of Veterans Affairs pharmacy data system and the 
Department of Defense pharmacy data system (known as the ``Pharmacy 
Data Transaction System'') are interoperable for both Department of 
Defense beneficiaries and Department of Veterans Affairs beneficiaries 
by achieving real-time interface, data exchange, and checking of 
prescription drug data of outpatients, and using national standards for 
the exchange of outpatient medication information.
    (b) Alternative Requirement.--If the interoperability specified in 
subsection (a) is not achieved by October 1, 2004, as determined 
jointly by the Secretary of Defense and the Secretary of Veterans 
Affairs, the Secretary of Veterans Affairs shall adopt the Department 
of Defense Pharmacy Data Transaction System for use by the Department 
of Veterans Affairs health care system. Such system shall be fully 
operational not later than October 1, 2005.
    (c) Implementation Funding for Alternative Requirement.--The 
Secretary of Defense shall transfer to the Secretary of Veterans 
Affairs, or shall otherwise bear the cost of, an amount sufficient to 
cover three-fourths of the cost to the Department of Veterans Affairs 
for computer programming activities and relevant staff training 
expenses related to implementation of subsection (b). Such amount shall 
be determined in such manner as agreed to by the two Secretaries.

SEC. 725. JOINT PILOT PROGRAM FOR PROVIDING GRADUATE MEDICAL EDUCATION 
              AND TRAINING FOR PHYSICIANS.

    (a) In General.--The Secretary of Defense and the Secretary of 
Veterans Affairs shall jointly carry out a pilot program under which 
graduate medical education and training is provided to military 
physicians and physician employees of the Department of Defense and the 
Department of Veterans Affairs through one or more programs carried out 
in military medical treatment facilities of the Department of Defense 
and medical centers of the Department of Veterans Affairs. The pilot 
program shall begin not later than January 1, 2003.
    (b) Cost-Sharing Agreement.--The Secretaries shall enter into an 
agreement for carrying out the pilot program. The agreement shall 
establish means for each Secretary to assist in paying the costs, with 
respect to individuals under the jurisdiction of that Secretary, 
incurred by the other Secretary in providing medical education and 
training under the pilot program.
    (c) Use of Existing Authorities.--To carry out the pilot program, 
the Secretary of Defense and the Secretary of Veterans Affairs may use 
authorities provided to them under this subtitle, section 8111 of title 
38, United States Code (as amended by section 721(a)), and other laws 
relating to the furnishing or support of medical education and the 
cooperative use of facilities.
    (d) Termination of Program.--The pilot program under this section 
shall terminate on July 31, 2008.
    (e) Repeal of Superseded Provision.--Section 738 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 10 
U.S.C. 1094 note; 115 Stat.1173) is repealed.

SEC. 726. REPEAL OF CERTAIN LIMITS ON DEPARTMENT OF VETERANS AFFAIRS 
              RESOURCES.

    (a) Repeal of VA Bed Limits.--Section 8110(a)(1) of title 38, 
United States Code, is amended--
        (1) in the first sentence, by striking ``at not more than 
    125,000 and not less than 100,000'';
        (2) in the third sentence, by striking ``shall operate and 
    maintain a total of not less than 90,000 hospital beds and nursing 
    home beds and''; and
        (3) in the fourth sentence, by striking ``to enable the 
    Department to operate and maintain a total of not less than 90,000 
    hospital and nursing home beds in accordance with this paragraph 
    and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2003.

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

              Subtitle A--Acquisition Policy and Management

Sec. 801. Buy-to-budget acquisition of end items.
Sec. 802. Report to Congress on evolutionary acquisition of major 
          defense acquisition programs.
Sec. 803. Spiral development under major defense acquisition programs.
Sec. 804. Improvement of software acquisition processes.
Sec. 805. Performance goals for procuring services pursuant to multiple 
          award contracts.
Sec. 806. Rapid acquisition and deployment procedures.
Sec. 807. Quick-reaction special projects acquisition team.

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

Sec. 811. Limitation period for task and delivery order contracts.
Sec. 812. One-year extension of program applying simplified procedures 
          to certain commercial items; report.
Sec. 813. Extension and improvement of personnel demonstration policies 
          and procedures applicable to the civilian acquisition 
          workforce.
Sec. 814. Past performance given significant weight in renewal of 
          procurement technical assistance cooperative agreements.
Sec. 815. Increased maximum amount of assistance for tribal 
          organizations or economic enterprises carrying out procurement 
          technical assistance programs in two or more service areas.
Sec. 816. Extension of contract goal for small disadvantaged businesses 
          and certain institutions of higher education.
Sec. 817. Grants of exceptions to cost or pricing data certification 
          requirements and waivers of cost accounting standards.
Sec. 818. Timing of certification in connection with waiver of 
          survivability and lethality testing requirements.
Sec. 819. Contracting with Federal Prison Industries.
Sec. 820. Revisions to multiyear contracting authority.

        Subtitle C--Acquisition-Related Reports and Other Matters

Sec. 821. Evaluation of training, knowledge, and resources regarding 
          negotiation of intellectual property arrangements.
Sec. 822. Independent technology readiness assessments.
Sec. 823. Extension and amendment of requirement for annual report on 
          defense commercial pricing management improvement.
Sec. 824. Assessment of purchases of products and services through 
          contracts with other Federal departments and agencies.
Sec. 825. Repeal of certain requirements and Comptroller General reviews 
          of the requirements.
Sec. 826. Multiyear procurement authority for purchase of dinitrogen 
          tetroxide, hydrazine, and hydrazine-related products.
Sec. 827. Multiyear procurement authority for environmental services for 
          military installations.
Sec. 828. Report on effects of Army Contracting Agency.
Sec. 829. Authorization to take actions to correct the industrial 
          resource shortfall for radiation-hardened electronics.

             Subtitle A--Acquisition Policy and Management

SEC. 801. BUY-TO-BUDGET ACQUISITION OF END ITEMS.

    (a) Authority.--(1) Chapter 137 of title 10, United States Code, is 
amended by inserting after section 2307 the following new section:

``Sec. 2308. Buy-to-budget acquisition: end items

    ``(a) Authority To Acquire Additional End Items.--Using funds 
available to the Department of Defense for the acquisition of an end 
item, the head of an agency making the acquisition may acquire a higher 
quantity of the end item than the quantity specified for the end item 
in a law providing for the funding of that acquisition if that head of 
an agency makes each of the following findings:
        ``(1) The agency has an established requirement for the end 
    item that is expected to remain substantially unchanged throughout 
    the period of the acquisition.
        ``(2) It is possible to acquire the higher quantity of the end 
    item without additional funding because of production efficiencies 
    or other cost reductions.
        ``(3) The amount of the funds used for the acquisition of the 
    higher quantity of the end item will not exceed the amount provided 
    under that law for the acquisition of the end item.
        ``(4) The amount so provided is sufficient to ensure that each 
    unit of the end item acquired within the higher quantity is fully 
    funded as a complete end item.
    ``(b) Regulations.--The Secretary of Defense shall prescribe 
regulations for the administration of this section. The regulations 
shall include, at a minimum, the following:
        ``(1) The level of approval within the Department of Defense 
    that is required for a decision to acquire a higher quantity of an 
    end item under subsection (a).
        ``(2) Authority (subject to subsection (a)) to acquire up to 10 
    percent more than the quantity of an end item approved in a 
    justification and approval of the use of procedures other than 
    competitive procedures for the acquisition of the end item under 
    section 2304 of this title.
    ``(c) Notification of Congress.--The head of an agency is not 
required to notify Congress in advance regarding a decision under the 
authority of this section to acquire a higher quantity of an end item 
than is specified in a law described in subsection (a), but shall 
notify the congressional defense committees of the decision not later 
than 30 days after the date of the decision.
    ``(d) Waiver by Other Law.--A provision of law may not be construed 
as prohibiting the acquisition of a higher quantity of an end item 
under this section unless that provision of law--
        ``(1) specifically refers to this section; and
        ``(2) specifically states that the acquisition of the higher 
    quantity of the end item is prohibited notwithstanding the 
    authority provided in this section.
    ``(e) Definitions.--(1) For the purposes of this section, a 
quantity of an end item shall be considered specified in a law if the 
quantity is specified either in a provision of that law or in any 
related representation that is set forth separately in a table, chart, 
or explanatory text included in a joint explanatory statement or 
governing committee report accompanying the law.
    ``(2) In this section:
            ``(A) The term `congressional defense committees' means--
                ``(i) the Committee on Armed Services and the Committee 
            on Appropriations of the Senate; and
                ``(ii) the Committee on Armed Services and the 
            Committee on Appropriations of the House of 
            Representatives.
            ``(B) The term `end item' means a production product 
        assembled, completed, and ready for issue or deployment.
            ``(C) The term `head of an agency' means the Secretary of 
        Defense, the Secretary of the Army, the Secretary of the Navy, 
        and the Secretary of the Air Force.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2307 the 
following new item:

``2308. Buy-to-budget acquisition: end items.''.

    (b) Time for Issuance of Final Regulations.--The Secretary of 
Defense shall issue the final regulations under section 2308(b) of 
title 10, United States Code (as added by subsection (a)), not later 
than 120 days after the date of the enactment of this Act.

SEC. 802. REPORT TO CONGRESS ON EVOLUTIONARY ACQUISITION OF MAJOR 
              DEFENSE ACQUISITION PROGRAMS.

    (a) Report Required.--(1) Not later than 120 days after the date of 
the enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the approach that the 
Secretary plans to take to apply the requirements listed in paragraph 
(2) to major defense acquisition programs that follow the evolutionary 
acquisition process.
    (2) The requirements referred to in paragraph (1) are--
        (A) the requirements of chapter 144 of title 10, United States 
    Code;
        (B) sections 139, 181, 2366, 2399, and 2400 of such title;
        (C) Department of Defense Directive 5000.1;
        (D) Department of Defense Instruction 5000.2;
        (E) Chairman of the Joint Chiefs of Staff Instruction 3170.01B; 
    and
        (F) other provisions of law and regulations (including 
    successor documents) that are applicable to such programs.
    (b) Content of Report.--The report shall, at a minimum, address the 
following matters:
        (1) The manner in which the Secretary plans to establish and 
    approve, for each increment of an evolutionary acquisition 
    process--
            (A) operational requirements; and
            (B) cost and schedule goals.
        (2) The manner in which the Secretary plans, for each increment 
    of an evolutionary acquisition process--
            (A) to meet requirements for operational testing and live 
        fire testing;
            (B) to monitor cost and schedule performance; and
            (C) to comply with laws requiring reports to Congress on 
        results testing and on cost and schedule performance.
        (3) The manner in which the Secretary plans to ensure that each 
    increment of an evolutionary acquisition process is designed--
            (A) to achieve interoperability within and among United 
        States forces and United States coalition partners; and
            (B) to optimize total system performance and minimize total 
        ownership costs by giving appropriate consideration to--
                (i) logistics planning;
                (ii) manpower, personnel, and training;
                (iii) human, environmental, safety, occupational 
            health, accessibility, survivability, operational 
            continuity, and security factors;
                (iv) protection of critical program information; and
                (v) spectrum management.
    (c) Definitions.--In this section:
        (1) The term ``evolutionary acquisition process'' means a 
    process by which an acquisition program is conducted through 
    discrete phases or blocks, with each phase or block consisting of 
    the planned definition, development, production or acquisition, and 
    fielding of hardware or software that provides operationally useful 
    capability.
        (2) The term ``increment'', with respect to an evolutionary 
    acquisition program, means one of the discrete phases or blocks of 
    such program.
        (3) The term ``major defense acquisition program'' has the 
    meaning given such term in section 139(a)(2)(B) of title 10, United 
    States Code.

SEC. 803. SPIRAL DEVELOPMENT UNDER MAJOR DEFENSE ACQUISITION PROGRAMS.

    (a) Authority.--The Secretary of Defense is authorized to conduct 
major defense acquisition programs as spiral development programs.
    (b) Limitation on Spiral Development Programs.--A research and 
development program for a major defense acquisition program of a 
military department or Defense Agency may not be conducted as a spiral 
development program unless the Secretary of Defense approves the spiral 
development plan for that research and development program in 
accordance with subsection (c). The Secretary of Defense may delegate 
authority to approve the plan to the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, or to the senior acquisition 
executive of the military department or Defense Agency concerned, but 
such authority may not be further delegated.
    (c) Spiral Development Plans.--A spiral development plan for a 
research and development program for a major defense acquisition 
program shall, at a minimum, include the following matters:
        (1) A rationale for dividing the research and development 
    program into separate spirals, together with a preliminary 
    identification of the spirals to be included.
        (2) A program strategy, including overall cost, schedule, and 
    performance goals for the total research and development program.
        (3) Specific cost, schedule, and performance parameters, 
    including measurable exit criteria, for the first spiral to be 
    conducted.
        (4) A testing plan to ensure that performance goals, 
    parameters, and exit criteria are met.
        (5) An appropriate limitation on the number of prototype units 
    that may be produced under the research and development program.
        (6) Specific performance parameters, including measurable exit 
    criteria, that must be met before the major defense acquisition 
    program proceeds into production of units in excess of the 
    limitation on the number of prototype units.
    (d) Guidance.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall issue guidance 
for the implementation of spiral development programs authorized by 
this section. The guidance shall include appropriate processes for 
ensuring the independent validation of exit criteria being met, the 
operational assessment of fieldable prototypes, and the management of 
spiral development programs.
    (e) Reporting Requirement.--The Secretary shall submit to Congress 
by September 30 of each of 2003 through 2008 a status report on each 
research and development program that is a spiral development program. 
The report shall contain information on unit costs that is similar to 
the information on unit costs under major defense acquisition programs 
that is required to be provided to Congress under chapter 144 of title 
10, United States Code, except that the information on unit costs shall 
address projected prototype costs instead of production costs.
    (f) Applicability of Existing Law.--Nothing in this section shall 
be construed to exempt any program of the Department of Defense from 
the application of any provision of chapter 144 of title 10, United 
States Code, section 139, 181, 2366, 2399, or 2400 of such title, or 
any requirement under Department of Defense Directive 5000.1, 
Department of Defense Instruction 5000.2, or Chairman of the Joint 
Chiefs of Staff Instruction 3170.01B in accordance with the terms of 
such provision or requirement.
    (g) Definitions.--In this section:
        (1) The term ``spiral development program'', with respect to a 
    research and development program, means a program that--
            (A) is conducted in discrete phases or blocks, each of 
        which will result in the development of fieldable prototypes; 
        and
            (B) will not proceed into acquisition until specific 
        performance parameters, including measurable exit criteria, 
        have been met.
        (2) The term ``spiral'' means one of the discrete phases or 
    blocks of a spiral development program.
        (3) The term ``major defense acquisition program'' has the 
    meaning given such term in section 139(a)(2)(B) of title 10, United 
    States Code.

SEC. 804. IMPROVEMENT OF SOFTWARE ACQUISITION PROCESSES.

    (a) Establishment of Programs.--(1) The Secretary of each military 
department shall establish a program to improve the software 
acquisition processes of that military department.
    (2) The head of each Defense Agency that manages a major defense 
acquisition program with a substantial software component shall 
establish a program to improve the software acquisition processes of 
that Defense Agency.
    (3) The programs required by this subsection shall be established 
not later than 120 days after the date of the enactment of this Act.
    (b) Program Requirements.--A program to improve software 
acquisition processes under this section shall, at a minimum, include 
the following:
        (1) A documented process for software acquisition planning, 
    requirements development and management, project management and 
    oversight, and risk management.
        (2) Efforts to develop appropriate metrics for performance 
    measurement and continual process improvement.
        (3) A process to ensure that key program personnel have an 
    appropriate level of experience or training in software 
    acquisition.
        (4) A process to ensure that each military department and 
    Defense Agency implements and adheres to established processes and 
    requirements relating to the acquisition of software.
    (c) Department of Defense Guidance.--The Assistant Secretary of 
Defense for Command, Control, Communications, and Intelligence, in 
consultation with the Under Secretary of Defense for Acquisition, 
Technology, and Logistics, shall--
        (1) prescribe uniformly applicable guidance for the 
    administration of all of the programs established under subsection 
    (a) and take such actions as are necessary to ensure that the 
    military departments and Defense Agencies comply with the guidance; 
    and
        (2) assist the Secretaries of the military departments and the 
    heads of the Defense Agencies to carry out such programs 
    effectively by--
            (A) ensuring that the criteria applicable to the selection 
        of sources provides added emphasis on past performance of 
        potential sources, as well as on the maturity of the software 
        products offered by the potential sources; and
            (B) identifying, and serving as a clearinghouse for 
        information regarding, best practices in software development 
        and acquisition in both the public and private sectors.
    (d) Definitions.--In this section:
        (1) The term ``Defense Agency'' has the meaning given the term 
    in section 101(a)(11) of title 10, United States Code.
        (2) The term ``major defense acquisition program'' has the 
    meaning given such term in section 139(a)(2)(B) of title 10, United 
    States Code.

SEC. 805. PERFORMANCE GOALS FOR PROCURING SERVICES PURSUANT TO MULTIPLE 
              AWARD CONTRACTS.

    (a) Performance Goals.--Subsection (a) of section 802 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 115 Stat. 1178; 10 U.S.C. 2330 note) is amended to read as 
follows:
    ``(a) Goals.--(1) It shall be an objective of the Department of 
Defense to achieve efficiencies in procurements of services pursuant to 
multiple award contracts through the use of--
        ``(A) performance-based services contracting;
        ``(B) appropriate competition for task orders under services 
    contracts;
        ``(C) program review, spending analyses, and improved 
    management of services contracts.
    ``(2) In furtherance of such objective, the Department of Defense 
shall have the following goals:
        ``(A) To increase, as a percentage of all of the individual 
    purchases of services made by or for the Department of Defense 
    under multiple award contracts for a fiscal year (calculated on the 
    basis of dollar value), the volume of the individual purchases of 
    services that are made on a competitive basis and involve receipt 
    of more than one offer from qualified contractors to a percentage 
    as follows:
            ``(i) For fiscal year 2003, a percentage not less than 40 
        percent.
            ``(ii) For fiscal year 2004, a percentage not less than 50 
        percent.
            ``(iii) For fiscal year 2011, a percentage not less than 75 
        percent.
        ``(B) To increase, as a percentage of all of the individual 
    purchases of services made by or for the Department of Defense 
    under multiple award contracts for a fiscal year (calculated on the 
    basis of dollar value), the use of performance-based purchasing 
    specifying firm fixed prices for the specific tasks to be performed 
    to a percentage as follows:
            ``(i) For fiscal year 2003, a percentage not less than 25 
        percent.
            ``(ii) For fiscal year 2004, a percentage not less than 35 
        percent.
            ``(iii) For fiscal year 2005, a percentage not less than 50 
        percent.
            ``(iv) For fiscal year 2011, a percentage not less than 70 
        percent.
    ``(3) The Secretary of Defense may adjust any percentage goal 
established in paragraph (2) if the Secretary determines in writing 
that such a goal is too high and cannot reasonably be achieved. In the 
event that the Secretary chooses to adjust such a goal, the Secretary 
shall--
        ``(A) establish a percentage goal that the Secretary determines 
    would create an appropriate incentive for Department of Defense 
    components to use competitive procedures or performance-based 
    services contracting, as the case may be; and
        ``(B) submit to the congressional defense committees a report 
    containing an explanation of the reasons for the Secretary's 
    determination and a statement of the new goal that the Secretary 
    has established.''.
    (b) Extension and Revision of Reporting Requirement.--Subsection 
(b) of such section is amended--
        (1) by striking ``March 1, 2006'' and inserting ``March 1, 
    2011''; and
        (2) by amending paragraph (5) to read as follows:
        ``(5) Regarding the individual purchases of services that were 
    made by or for the Department of Defense under multiple award 
    contracts in the fiscal year preceding the fiscal year in which the 
    report is required to be submitted, information (determined using 
    the data collection system established under section 2330a of title 
    10, United States Code) as follows:
            ``(A) The percentage (calculated on the basis of dollar 
        value) of such purchases that are purchases that were made on a 
        competitive basis and involved receipt of more than one offer 
        from qualified contractors.
            ``(B) The percentage (calculated on the basis of dollar 
        value) of such purchases that are performance-based purchases 
        specifying firm fixed prices for the specific tasks to be 
        performed.''.
    (c) Definitions.--Such section is further amended by adding at the 
end the following new subsection:
    ``(c) Definitions.--(1) In this section, the terms `individual 
purchase' and `multiple award contract' have the meanings given such 
terms in section 803(c) of this Act.
    ``(2) For the purposes of this section, an individual purchase of 
services is made on a competitive basis only if it is made pursuant to 
procedures described in paragraphs (2), (3), and (4) of section 803(b) 
of this Act.''.
    (d) Conforming Amendment.--The heading for such section is amended 
by striking ``savings goals'' and inserting ``performance goals''.

SEC. 806. RAPID ACQUISITION AND DEPLOYMENT PROCEDURES.

    (a) Requirement To Establish Procedures.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of Defense 
shall prescribe procedures for the rapid acquisition and deployment of 
items that are--
        (1) currently under development by the Department of Defense or 
    available from the commercial sector; and
        (2) urgently needed to react to an enemy threat or to respond 
    to significant and urgent safety situations.
    (b) Issues To Be Addressed.--The procedures prescribed under 
subsection (a) shall include the following:
        (1) A process for streamlined communications between the 
    Chairman of the Joint Chiefs of Staff, the acquisition community, 
    and the research and development community, including--
            (A) a process for the commanders of the combatant commands 
        and the Joint Chiefs of Staff to communicate their needs to the 
        acquisition community and the research and development 
        community; and
            (B) a process for the acquisition community and the 
        research and development community to propose items that meet 
        the needs communicated by the combatant commands and the Joint 
        Chiefs of Staff.
        (2) Procedures for demonstrating, rapidly acquiring, and 
    deploying items proposed pursuant to paragraph (1)(B), including--
            (A) a process for demonstrating performance and evaluating 
        for current operational purposes the existing capability of an 
        item;
            (B) a process for developing an acquisition and funding 
        strategy for the deployment of an item; and
            (C) a process for making deployment determinations based on 
        information obtained pursuant to subparagraphs (A) and (B).
    (c) Testing Requirement.--(1) The process for demonstrating 
performance and evaluating for current operational purposes the 
existing capability of an item prescribed under subsection (b)(2)(A) 
shall include--
        (A) an operational assessment in accordance with procedures 
    prescribed by the Director of Operational Test and Evaluation; and
        (B) a requirement to provide information about any deficiency 
    of the item in meeting the original requirements for the item (as 
    stated in an operational requirements document or similar document) 
    to the deployment decisionmaking authority.
    (2) The process may not include a requirement for any deficiency of 
an item to be the determining factor in deciding whether to deploy the 
item.
    (d) Limitation.--The quantity of items of a system procured using 
the procedures prescribed pursuant to this section may not exceed the 
number established for low-rate initial production for the system. Any 
such items shall be counted for purposes of the number of items of the 
system that may be procured through low-rate initial production.

SEC. 807. QUICK-REACTION SPECIAL PROJECTS ACQUISITION TEAM.

    (a) Establishment.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall establish a team of highly qualified 
acquisition professionals who shall be available to advise the Under 
Secretary on actions that can be taken to expedite the acquisition of 
urgently needed systems.
    (b) Duties.--The issues on which the team may provide advice shall 
include the following:
        (1) Industrial base issues, including the limited availability 
    of suppliers.
        (2) Technology development and technology transition issues.
        (3) Issues of acquisition policy, including the length of the 
    acquisition cycle.
        (4) Issues of testing policy and ensuring that weapon systems 
    perform properly in combat situations.
        (5) Issues of procurement policy, including the impact of 
    socio-economic requirements.
        (6) Issues relating to compliance with environmental 
    requirements.

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

SEC. 811. LIMITATION PERIOD FOR TASK AND DELIVERY ORDER CONTRACTS.

    (a) Limitation Period.--Section 2306c of title 10, United States 
Code, is amended by adding at the end the following new subsection:
    ``(g) Limitation Period for Task and Delivery Order Contracts.--(1) 
The authority and restrictions of this section, including the authority 
to enter into contracts for periods of not more than five years, shall 
apply with respect to task order and delivery order contracts entered 
into under the authority of section 2304a, 2304b, or 2304c of this 
title.
    ``(2) The regulations implementing this subsection shall establish 
a preference that, to the maximum extent practicable, multi-year 
requirements for task order and delivery order contracts be met with 
separate awards to two or more sources under the authority of section 
2304a(d)(1)(B) of this title.''.
    (b) Effective Date.--Subsection (g) of section 2306c of title 10, 
United States Code, as added by subsection (a), shall apply to all task 
order and delivery order contracts entered into on or after the date of 
the enactment of this Act.
    (c) Comptroller General Report.--Not later than March 15, 2003, the 
Comptroller General shall submit to the Committee on Armed Services of 
the Senate and the Committee on Armed Services of the House of 
Representatives a report on the contract periods (including any options 
or extensions) for all single and multiple contract awards entered into 
under section 2304a(d) of title 10, United States Code, before the 
effective date in subsection (b).

SEC. 812. ONE-YEAR EXTENSION OF PROGRAM APPLYING SIMPLIFIED PROCEDURES 
              TO CERTAIN COMMERCIAL ITEMS; REPORT.

    (a) Extension of Pilot Program.--Section 4202 of the Clinger-Cohen 
Act of 1996 (divisions D and E of Public Law 104-106; 10 U.S.C. 2304 
note) is amended in subsection (e) by striking ``January 1, 2003'' and 
inserting ``January 1, 2004''.
    (b) Report Required.--(1) Not later than March 15, 2003, the 
Comptroller General shall submit to Congress a report on the authority 
to issue solicitations for purchases of commercial items in excess of 
the simplified acquisition threshold pursuant to the special simplified 
procedures authorized by section 2304(g)(1) of title 10, United States 
Code, and section 31(a) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 427(a)).
    (2) The report required by paragraph (1) shall address, at a 
minimum--
        (A) the extent to which such authority has been used by the 
    Secretary of Defense;
        (B) the benefits realized by the Department of Defense through 
    the use of such authority;
        (C) the impact of the use of such authority on competition for 
    contracts with the Department of Defense; and
        (D) any recommendations of the Comptroller General for the 
    continuation or modification of such authority.

SEC. 813. EXTENSION AND IMPROVEMENT OF PERSONNEL DEMONSTRATION POLICIES 
              AND PROCEDURES APPLICABLE TO THE CIVILIAN ACQUISITION 
              WORKFORCE.

    (a) Plan Required.--(1) The Secretary of Defense shall develop a 
plan for improving the personnel management policies and procedures 
applicable to the Department of Defense civilian acquisition workforce 
based on the results of the demonstration project described in section 
4308 of the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 
104-106; 10 U.S.C. 1701 note).
    (2) Not later than February 15, 2003, the Secretary shall submit to 
Congress the plan required under paragraph (1) and a report on the 
plan, including any recommendations for legislative action necessary to 
implement the plan.
    (b) Extension of Demonstration Project Authority.--Section 4308 of 
the Clinger-Cohen Act of 1996 (divisions D and E of Public Law 104-106; 
10 U.S.C. 1701 note) is amended--
        (1) in subsection (b)(2)(C), by striking ``subsection 
    (d)(1)(A)'' and inserting ``subsection (d)(1)'';
        (2) by amending subparagraph (B) of subsection (b)(3) to read 
    as follows:
            ``(B) commences before October 1, 2007.''; and
        (3) by adding at the end the following new subsection:
    ``(e) Termination of Authority.--The authority to conduct a 
demonstration program under this section shall terminate on September 
30, 2012.''.

SEC. 814. PAST PERFORMANCE GIVEN SIGNIFICANT WEIGHT IN RENEWAL OF 
              PROCUREMENT TECHNICAL ASSISTANCE COOPERATIVE AGREEMENTS.

    Section 2413 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) In conducting a competition for the award of a cooperative 
agreement under subsection (a), and in determining the level of funding 
to provide under an agreement under subsection (b), the Secretary shall 
give significant weight to successful past performance of eligible 
entities under a cooperative agreement under this section.''.

SEC. 815. INCREASED MAXIMUM AMOUNT OF ASSISTANCE FOR TRIBAL 
              ORGANIZATIONS OR ECONOMIC ENTERPRISES CARRYING OUT 
              PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS IN TWO OR MORE 
              SERVICE AREAS.

    Section 2414(a)(4) of title 10, United States Code, is amended by 
striking ``$300,000'' and inserting ``$600,000''.

SEC. 816. EXTENSION OF CONTRACT GOAL FOR SMALL DISADVANTAGED BUSINESSES 
              AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.

    Section 2323(k) of title 10, United States Code, is amended by 
striking ``2003'' both places it appears and inserting ``2006''.

SEC. 817. GRANTS OF EXCEPTIONS TO COST OR PRICING DATA CERTIFICATION 
              REQUIREMENTS AND WAIVERS OF COST ACCOUNTING STANDARDS.

    (a) Guidance for Exceptions in Exceptional Circumstances.--Not 
later than 60 days after the date of the enactment of this Act, the 
Secretary of Defense shall issue guidance on the circumstances under 
which it is appropriate to grant an exceptional case exception or 
waiver with respect to certified cost and pricing data and cost 
accounting standards.
    (b) Determination Required for Exceptional Case Exception or 
Waiver.--The guidance shall, at a minimum, include a limitation that a 
grant of an exceptional case exception or waiver is appropriate with 
respect to a contract, subcontract, or (in the case of submission of 
certified cost and pricing data) modification only upon a determination 
that--
        (1) the property or services cannot reasonably be obtained 
    under the contract, subcontract, or modification, as the case may 
    be, without the grant of the exception or waiver;
        (2) the price can be determined to be fair and reasonable 
    without the submission of certified cost and pricing data or the 
    application of cost accounting standards, as the case may be; and
        (3) there are demonstrated benefits to granting the exception 
    or waiver.
    (c) Applicability of New Guidance.--The guidance issued under 
subsection (a) shall apply to each exceptional case exception or waiver 
that is granted on or after the date on which the guidance is issued.
    (d) Annual Report on Both Commercial Item and Exceptional Case 
Exceptions and Waivers With Price or Value Greater Than $15,000,000.--
(1) The Secretary of Defense shall transmit to the congressional 
defense committees promptly after the end of each fiscal year a report 
on commercial item exceptions, and exceptional case exceptions and 
waivers, described in paragraph (2) that were granted during that 
fiscal year.
    (2) The report for a fiscal year shall include--
        (A) with respect to any commercial item exception granted in 
    the case of a contract, subcontract, or contract or subcontract 
    modification that is expected to have a price of $15,000,000 or 
    more, an explanation of the basis for the determination that the 
    products or services to be purchased are commercial items, 
    including an identification of the specific steps taken to ensure 
    price reasonableness; and
        (B) with respect to any exceptional case exception or waiver 
    granted in the case of a contract or subcontract that is expected 
    to have a value of $15,000,000 or more, an explanation of the basis 
    for the determination described in subsection (b), including an 
    identification of the specific steps taken to ensure that the price 
    was fair and reasonable.
    (e) Definitions.--In this section:
        (1) The term ``exceptional case exception or waiver'' means 
    either of the following:
            (A) An exception pursuant to section 2306a(b)(1)(C) of 
        title 10, United States Code, relating to submission of 
        certified cost and pricing data.
            (B) A waiver pursuant to section 26(f)(5)(B) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 422(f)(5)(B)), 
        relating to the applicability of cost accounting standards to 
        contracts and subcontracts.
        (2) The term ``commercial item exception'' means an exception 
    pursuant to section 2306a(b)(1)(B) of title 10, United States Code, 
    relating to submission of certified cost and pricing data.

SEC. 818. TIMING OF CERTIFICATION IN CONNECTION WITH WAIVER OF 
              SURVIVABILITY AND LETHALITY TESTING REQUIREMENTS.

    (a) Certification for Expedited Programs.--Paragraph (1) of 
subsection (c) of section 2366 of title 10, United States Code, is 
amended to read as follows:
    ``(1) The Secretary of Defense may waive the application of the 
survivability and lethality tests of this section to a covered system, 
munitions program, missile program, or covered product improvement 
program if the Secretary determines that live-fire testing of such 
system or program would be unreasonably expensive and impractical and 
submits a certification of that determination to Congress--
        ``(A) before Milestone B approval for the system or program; or
        ``(B) in the case of a system or program initiated at--
            ``(i) Milestone B, as soon as is practicable after the 
        Milestone B approval; or
            ``(ii) Milestone C, as soon as is practicable after the 
        Milestone C approval.''.
    (b) Definitions.--Subsection (e) of such section is amended by 
adding at the end the following new paragraphs:
        ``(8) The term `Milestone B approval' means a decision to enter 
    into system development and demonstration pursuant to guidance 
    prescribed by the Secretary of Defense for the management of 
    Department of Defense acquisition programs.
        ``(9) The term `Milestone C approval' means a decision to enter 
    into production and deployment pursuant to guidance prescribed by 
    the Secretary of Defense for the management of Department of 
    Defense acquisition programs.''.

SEC. 819. CONTRACTING WITH FEDERAL PRISON INDUSTRIES.

    (a) Assurance of Best Value for National Defense.--(1) Section 
2410n of title 10, United States Code, is amended--
        (A) in subsection (a)--
            (i) by amending the heading to read as follows: ``Market 
        Research.--''; and
            (ii) by striking ``comparable in price, quality, and time 
        of delivery to products available from the private sector'' and 
        inserting ``comparable to products available from the private 
        sector that best meet the Department's needs in terms of price, 
        quality, and time of delivery'';
        (B) by striking subsection (b) and inserting the following:
    ``(b) Competition Requirement.--If the Secretary determines that a 
Federal Prison Industries product is not comparable in price, quality, 
or time of delivery to products available from the private sector that 
best meet the Department's needs in terms of price, quality, and time 
of delivery, the Secretary shall use competitive procedures for the 
procurement of the product or shall make an individual purchase under a 
multiple award contract. In conducting such a compeititon or making 
such a purchase, the Secretary shall consider a timely offer from 
Federal Prison Industries.''; and
        (C) by adding at the end the following new subsections:
    ``(c) Implementation by Secretary of Defense.--The Secretary of 
Defense shall ensure that--
        ``(1) the Department of Defense does not purchase a Federal 
    Prison Industries product or service unless a contracting officer 
    of the Department determines that the product or service is 
    comparable to products or services available from the private 
    sector that best meet the Department's needs in terms of price, 
    quality, and time of delivery; and
        ``(2) Federal Prison Industries performs its contractual 
    obligations to the same extent as any other contractor for the 
    Department of Defense.
    ``(d) Market Research Determination Not Subject to Review.--A 
determination by a contracting officer regarding whether a product or 
service offered by Federal Prison Industries is comparable to products 
or services available from the private sector that best meet the 
Department's needs in terms of price, quality, and time of delivery 
shall not be subject to review pursuant to section 4124(b) of title 18.
    ``(e) Performance as a Subcontractor.--(1) A contractor or 
potential contractor of the Department of Defense may not be required 
to use Federal Prison Industries as a subcontractor or supplier of 
products or provider of services for the performance of a Department of 
Defense contract by any means, including means such as--
        ``(A) a contract solicitation provision requiring a contractor 
    to offer to make use of products or services of Federal Prison 
    Industries in the performance of the contract;
        ``(B) a contract specification requiring the contractor to use 
    specific products or services (or classes of products or services) 
    offered by Federal Prison Industries in the performance of the 
    contract; or
        ``(C) any contract modification directing the use of products 
    or services of Federal Prison Industries in the performance of the 
    contract.
    ``(2) In this subsection, the term `contractor', with respect to a 
contract, includes a subcontractor at any tier under the contract.
    ``(f) Protection of Classified and Sensitive Information.--The 
Secretary of Defense may not enter into any contract with Federal 
Prison Industries under which an inmate worker would have access to--
        ``(1) any data that is classified;
        ``(2) any geographic data regarding the location of--
            ``(A) surface and subsurface infrastructure providing 
        communications or water or electrical power distribution;
            ``(B) pipelines for the distribution of natural gas, bulk 
        petroleum products, or other commodities; or
            ``(C) other utilities; or
        ``(3) any personal or financial information about any 
    individual private citizen, including information relating to such 
    person's real property however described, without the prior consent 
    of the individual.
    ``(g) Definitions.--In this section:
        ``(1) The term `competitive procedures' has the meaning given 
    such term in section 2302(2) of this title.
        ``(2) The term `market research' means obtaining specific 
    information about the price, quality, and time of delivery of 
    products available in the private sector through a variety of 
    means, which may include--
            ``(A) contacting knowledgeable individuals in government 
        and industry;
            ``(B) interactive communication among industry, acquisition 
        personnel, and customers; and
            ``(C) interchange meetings or pre-solicitation conferences 
        with potential offerors.''.
    (2) Paragraph (1) and the amendments made by such paragraph shall 
take effect as of October 1, 2001.
    (b) Regulatory Implementation.--(1) Proposed revisions to the 
Department of Defense Supplement to the Federal Acquisition Regulation 
to implement this section shall be published not later than 90 days 
after the date of the enactment of this Act, and not less than 60 days 
shall be provided for public comment on the proposed revisions.
    (2) Final regulations shall be published not later than 180 days 
after the date of the enactment of this Act and shall be effective on 
the date that is 30 days after the date of the publication.

SEC. 820. REVISIONS TO MULTIYEAR CONTRACTING AUTHORITY.

    (a) Use of Procurement and Advance Procurement Funds.--Section 
2306b(i) of title 10, United States Code, is amended by adding at the 
end the following new paragraph:
    ``(4)(A) The Secretary of Defense may obligate funds for 
procurement of an end item under a multiyear contract for the purchase 
of property only for procurement of a complete and usable end item.
    ``(B) The Secretary of Defense may obligate funds appropriated for 
any fiscal year for advance procurement under a contract for the 
purchase of property only for the procurement of those long-lead items 
necessary in order to meet a planned delivery schedule for complete 
major end items that are programmed under the contract to be acquired 
with funds appropriated for a subsequent fiscal year (including an 
economic order quantity of such long-lead items when authorized by 
law).''.
    (b) Effective Date.--(1) Paragraph (4) of section 2306b(i) of title 
10, United States Code, as added by subsection (a), shall not apply 
with respect to any contract awarded before the date of the enactment 
of this Act.
    (2) Nothing in this section shall be construed to authorize the 
expenditure of funds under any contract awarded before the date of the 
enactment of this Act for any purpose other than the purpose for which 
such funds have been authorized and appropriated.

       Subtitle C--Acquisition-Related Reports and Other Matters

SEC. 821. EVALUATION OF TRAINING, KNOWLEDGE, AND RESOURCES REGARDING 
              NEGOTIATION OF INTELLECTUAL PROPERTY ARRANGEMENTS.

    (a) Availability of Training, Knowledge, and Resources.--The 
Secretary of Defense shall evaluate the training, knowledge, and 
resources needed by the Department of Defense in order to effectively 
negotiate intellectual property rights using the principles of the 
Defense Federal Acquisition Regulation Supplement and determine whether 
the Department of Defense currently has in place the training, 
knowledge, and resources available to meet those Departmental needs.
    (b) Report.--Not later than February 1, 2003, the Secretary of 
Defense shall submit to Congress a report describing--
        (1) the results of the evaluation performed under subsection 
    (a);
        (2) to the extent the Department does not have adequate 
    training, knowledge, and resources available, actions to be taken 
    to improve training and knowledge and to make resources available 
    to meet the Department's needs; and
        (3) the number of Department of Defense legal personnel trained 
    in negotiating intellectual property arrangements.

SEC. 822. INDEPENDENT TECHNOLOGY READINESS ASSESSMENTS.

    Section 804(b) of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1180) is amended--
        (1) by striking ``and'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting ``; and''; and
        (3) by adding at the end the following new paragraph:
        ``(3) identify each case in which an authoritative decision has 
    been made within the Department of Defense not to conduct an 
    independent technology readiness assessment for a critical 
    technology on a major defense acquisition program and explain the 
    reasons for the decision.''.

SEC. 823. EXTENSION AND AMENDMENT OF REQUIREMENT FOR ANNUAL REPORT ON 
              DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

    Section 803(c)(4) of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2082; 10 U.S.C. 2306a note) is amended--
        (1) by striking ``2000, 2001, and 2002,'' and inserting ``2000 
    through 2006,'';
        (2) by inserting after ``were conducted'' the following: ``by 
    the Secretary of each military department and the Director of the 
    Defense Logistics Agency''; and
        (3) by inserting after ``actions taken'' the following: ``by 
    each Secretary and the Director''.

SEC. 824. ASSESSMENT OF PURCHASES OF PRODUCTS AND SERVICES THROUGH 
              CONTRACTS WITH OTHER FEDERAL DEPARTMENTS AND AGENCIES.

    (a) Requirement for Assessment.--The Secretary of Defense shall 
carry out an assessment of purchases by the Department of Defense of 
products and services through contracts entered into with other Federal 
departments and agencies.
    (b) Period Covered by Assessment.--The assessment required by 
subsection (a) shall cover purchases made during fiscal years 2000 
through 2002.
    (c) Report.--Not later than February 1, 2003, the Secretary of 
Defense shall submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report on the results of the 
assessment conducted under subsection (a). The report shall include the 
following:
        (1) The total amount paid by the Department of Defense as fees 
    for the acquisition of such products and services.
        (2) A determination of whether such total amount paid is 
    excessive and should be reduced.
        (3) A description of the benefits received by the Department as 
    a result of purchasing such products and services through such 
    contracts.

SEC. 825. REPEAL OF CERTAIN REQUIREMENTS AND COMPTROLLER GENERAL 
              REVIEWS OF THE REQUIREMENTS.

    (a) Termination of Authority To Transfer Funds into Defense 
Modernization Account.--(1) Paragraph (1) of section 912(c) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public Law 
104-106; 110 Stat. 410; 10 U.S.C. 2216 note) is amended by striking 
``September 30, 2003'' and inserting ``September 30, 2002''.
    (2) Section 912(d) of such Act (110 Stat. 410; 10 U.S.C. 2216 
note), relating to Comptroller General reviews of the administration of 
the Defense Modernization Account, is repealed.
    (b) Repeal of Solutions-Based Contracting Pilot Program.--(1) 
Section 11522 of title 40, United States Code, is repealed.
    (2)(A) Section 11501 of title 40, United States Code, is amended--
        (i) in the section heading, by striking ``programs'' and 
    inserting ``program'';
        (ii) in subsection (a)(1), by striking ``conduct pilot 
    programs'' and inserting ``conduct a pilot program pursuant to the 
    requirements of section 11521 of this title'';
        (iii) in subsection (a)(2), by striking ``each pilot program'' 
    and inserting ``the pilot program'';
        (iv) in subsection (b)--
            (I) by striking ``Limitations.--'' and all that follows 
        through ``pilot programs conducted'' and inserting the 
        following: ``Limitation on Amount.--The total amount obligated 
        for contracts entered into under the pilot program conducted''; 
        and
            (II) by striking ``paragraph.'' and inserting 
        ``subsection.''; and
        (v) in subsection (c)(1), by striking ``a pilot'' and inserting 
    ``the pilot''.
    (B) The following provisions of chapter 115 of such title are each 
amended by striking ``a pilot'' each place it appears and inserting 
``the pilot'':
        (i) Section 11502(a).
        (ii) Section 11502(b).
        (iii) Section 11503(a).
        (iv) Section 11504.
    (C) Section 11505 of such chapter is amended by striking 
``programs'' and inserting ``program''.
    (3)(A) The chapter heading for chapter 115 of such title is amended 
by striking ``PROGRAMS'' and inserting ``PROGRAM''.
    (B) The subchapter heading for subchapter I and for subchapter II 
of such chapter are each amended by striking ``PROGRAMS'' and inserting 
``PROGRAM''.
    (C) The item relating to subchapter I in the table of sections at 
the beginning of such chapter is amended to read as follows:

               ``SUBCHAPTER I--CONDUCT OF PILOT PROGRAM''.

    (D) The item relating to subchapter II in the table of sections at 
the beginning of such chapter is amended to read as follows:

               ``SUBCHAPTER II--SPECIFIC PILOT PROGRAM''.

    (E) The item relating to section 11501 in the table of sections at 
the beginning of such is amended by striking ``programs'' and inserting 
``program''.
    (F) The table of sections at the beginning of such chapter is 
amended by striking the item relating to section 11522.
    (G) The item relating to chapter 115 in the table of chapters for 
subtitle III of title 40, United States Code, is amended to read as 
follows:

``115. INFORMATION TECHNOLOGY ACQUISITION PILOT PROGRAM.........11501''.

    (c) Repeal of On-Line Multiple Award Schedule Contracting 
Requirements.--(1) Section 11701 of title 40, United States Code, is 
repealed.
    (2) Sections 11702, 11703, and 11704 of such title are redesignated 
as sections 11701, 11702, and 11703, respectively.
    (3) The table of sections for chapter 117 of such title is 
amended--
        (A) by striking the item relating to section 11701; and
        (B) by redesignating the items relating to sections 11702, 
    11703, and 11704 as sections 11701, 11702, and 11703, respectively.

SEC. 826. MULTIYEAR PROCUREMENT AUTHORITY FOR PURCHASE OF DINITROGEN 
              TETROXIDE, HYDRAZINE, AND HYDRAZINE-RELATED PRODUCTS.

    (a) In General.--Chapter 141 of title 10, United States Code, is 
amended by inserting after section 2410n the following new section:

``Sec. 2410o. Multiyear procurement authority: purchase of dinitrogen 
            tetroxide, hydrazine, and hydrazine-related products

    ``(a) Ten-Year Contract Period.--The Secretary of Defense may enter 
into a contract for a period of up to 10 years for the purchase of 
dinitrogen tetroxide, hydrazine, and hydrazine-related products for the 
support of a United States national security program or a United States 
space program.
    ``(b) Extensions.--A contract entered into for more than one year 
under the authority of subsection (a) may be extended for a total of 
not more than 10 years pursuant to any option or options set forth in 
the contract.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following item:

``2410o. Multiyear procurement authority: purchase of dinitrogen 
          tetroxide, hydrazine, and hydrazine-related products.''.

SEC. 827. MULTIYEAR PROCUREMENT AUTHORITY FOR ENVIRONMENTAL SERVICES 
              FOR MILITARY INSTALLATIONS.

    (a) Authority.--Subsection (b) of section 2306c of title 10, United 
States Code, is amended by adding at the end the following new 
paragraph:
        ``(5) Environmental remediation services for--
            ``(A) an active military installation;
            ``(B) a military installation being closed or realigned 
        under a base closure law; or
            ``(C) a site formerly used by the Department of Defense.''.
    (b) Definitions.--Such section, as amended by section 811, is 
further amended by adding at the end the following new subsection:
    ``(h) Additional Definitions.--In this section:
        ``(1) The term `base closure law' has the meaning given such 
    term in section 2667(h)(2) of this title.
        ``(2) The term `military installation' has the meaning given 
    such term in section 2801(c)(2) of this title.''.

SEC. 828. REPORT ON EFFECTS OF ARMY CONTRACTING AGENCY.

    (a) In general.--The Secretary of the Army shall submit a report on 
the effects of the establishment of an Army Contracting Agency on small 
business participation in Army procurements during the first year of 
operation of such an agency to--
        (1) the Committee on Armed Services of the House of 
    Representatives;
        (2) the Committee on Armed Services of the Senate;
        (3) the Committee on Small Business of the House of 
    Representatives; and
        (4) the Committee on Small Business and Entrepreneurship of the 
    Senate.
    (b) Content.--The report required under subsection (a) shall 
include, in detail--
        (1) the justification for the establishment of an Army 
    Contracting Agency;
        (2) the impact of the creation of an Army Contracting Agency 
    on--
            (A) Army compliance with--
                (i) Department of Defense Directive 4205.1;
                (ii) section 15(g) of the Small Business Act (15 U.S.C. 
            644(g)); and
                (iii) section 15(k) of the Small Business Act (15 
            U.S.C. 644(k)); and
            (B) small business participation in Army procurement of 
        products and services for affected Army installations, 
        including--
                (i) the impact on small businesses located near Army 
            installations, including--

                    (I) the increase or decrease in the total value of 
                Army prime contracting with local small businesses; and
                    (II) the opportunities for small business owners to 
                meet and interact with Army procurement personnel; and

                (ii) any change or projected change in the use of 
            consolidated contracts and bundled contracts; and
        (3) a description of the Army's plan to address any negative 
    impact on small business participation in Army procurement, to the 
    extent such impact is identified in the report.
    (c) Time for Submission.--The report under this section shall be 
submitted 15 months after the date of the establishment of the Army 
Contracting Agency.

SEC. 829. AUTHORIZATION TO TAKE ACTIONS TO CORRECT THE INDUSTRIAL 
              RESOURCE SHORTFALL FOR RADIATION-HARDENED ELECTRONICS.

    Notwithstanding the limitation in section 303(a)(6)(C) of the 
Defense Production Act of 1950 (50 U.S.C. App. 2093(a)(6)(C)), action 
or actions may be taken under section 303 of that Act to correct the 
industrial resource shortfall for radiation-hardened electronics, if 
such actions do not cause the aggregate outstanding amount of all such 
actions to exceed $106,000,000.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

   Subtitle A--Duties and Functions of Department of Defense Officers

Sec. 901. Under Secretary of Defense for Intelligence.
Sec. 902. Reorganization of Office of Secretary of Defense for 
          administration of duties relating to homeland defense and 
          combating terrorism.

                      Subtitle B--Space Activities

Sec. 911. Oversight of acquisition for defense space programs.
Sec. 912. Report regarding assured access to space for the United 
          States.

                           Subtitle C--Reports

Sec. 921. Report on establishment of United States Northern Command.
Sec. 922. Time for submittal of report on Quadrennial Defense Review.
Sec. 923. National defense mission of Coast Guard to be included in 
          future Quadrennial Defense Reviews.
Sec. 924. Report on establishment of a Joint National Training Complex 
          and joint opposing forces.

                        Subtitle D--Other Matters

Sec. 931. Authority to accept gifts for National Defense University.
Sec. 932. Western Hemisphere Institute for Security Cooperation.
Sec. 933. Conforming amendment to reflect disestablishment of Department 
          of Defense Consequence Management Program Integration Office.
Sec. 934. Increase in number of Deputy Commandants of the Marine Corps.

   Subtitle A--Duties and Functions of Department of Defense Officers

SEC. 901. UNDER SECRETARY OF DEFENSE FOR INTELLIGENCE.

    (a) Establishment of Position.--Chapter 4 of title 10, United 
States Code, is amended--
        (1) by transferring section 137 within such chapter to appear 
    after section 139 and redesignating that section as section 139a; 
    and
        (2) by inserting after section 136a the following new section 
    137:

``Sec. 137. Under Secretary of Defense for Intelligence

    ``(a) There is an Under Secretary of Defense for Intelligence, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate.
    ``(b) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Intelligence 
shall perform such duties and exercise such powers as the Secretary of 
Defense may prescribe in the area of intelligence.
    ``(c) The Under Secretary of Defense for Intelligence takes 
precedence in the Department of Defense after the Under Secretary of 
Defense for Personnel and Readiness.''.
    (b) Conforming Amendments.--(1) Section 131(b) of such title is 
amended--
        (A) by striking paragraphs (2) through (5) and inserting the 
    following:
        ``(2) The Under Secretaries of Defense, as follows:
            ``(A) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
            ``(B) The Under Secretary of Defense for Policy.
            ``(C) The Under Secretary of Defense (Comptroller).
            ``(D) The Under Secretary of Defense for Personnel and 
        Readiness.
            ``(E) The Under Secretary of Defense for Intelligence.''; 
        and
        (B) by redesignating paragraphs (6), (7), (8), (9), (10), and 
    (11) as paragraphs (3), (4), (5), (6), (7), and (8), respectively.
    (2) The table of sections at the beginning of chapter 4 of such 
title is amended--
        (A) by striking the item relating to section 137 and inserting 
    the following:

``137. Under Secretary of Defense for Intelligence.'';

    and
        (B) by inserting after the item relating to section 139 the 
    following new item:

``139a. Director of Defense Research and Engineering.''.

    (c) Executive Level III.--Section 5314 of title 5, United States 
Code, is amended by inserting after ``Under Secretary of Defense for 
Personnel and Readiness.'' the following:
        ``Under Secretary of Defense for Intelligence.''.
    (d) Relationship to Authorities Under National Security Act of 
1947.--Nothing in section 137 of title 10, United States Code, as added 
by subsection (a), shall supersede or modify the authorities of the 
Secretary of Defense and the Director of Central Intelligence as 
established by the National Security Act of 1947 (50 U.S.C. 401 et 
seq.).
    (e) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall submit to Congress a report 
on the establishment of the position of Under Secretary of Defense for 
Intelligence. The report shall set forth the following:
        (1) The mission prescribed for that Under Secretary.
        (2) The organizational structure established for the office of 
    that Under Secretary.
        (3) The relationship of that Under Secretary with the Under 
    Secretary of Defense for Acquisition, Technology, and Logistics and 
    the Under Secretary of Defense for Policy.
        (4) The relationship of that Under Secretary with each of the 
    following intelligence components of the Department of Defense: the 
    National Security Agency, the Defense Intelligence Agency, the 
    National Imagery and Mapping Agency, and the National 
    Reconnaissance Office.
        (5) The mission of the position designated, as of the date of 
    the enactment of this Act, as Assistant Secretary of Defense for 
    Command, Control, Communications, and Intelligence and the 
    relationship of that position to the Under Secretary of Defense for 
    Intelligence.

SEC. 902. REORGANIZATION OF OFFICE OF SECRETARY OF DEFENSE FOR 
              ADMINISTRATION OF DUTIES RELATING TO HOMELAND DEFENSE AND 
              COMBATING TERRORISM.

    (a) Assistant Secretary of Defense for Homeland Defense.--Section 
138(b) of title 10, United States Code, is amended by inserting after 
paragraph (2) the following new paragraph:
    ``(3) One of the Assistant Secretaries shall be the Assistant 
Secretary of Defense for Homeland Defense. He shall have as his 
principal duty the overall supervision of the homeland defense 
activities of the Department of Defense.''.
    (b) Transfer to Under Secretary of Defense for Policy of 
Responsibility for Combating Terrorism.--Section 134(b) of such title 
is amended by adding at the end the following new paragraph:
    ``(4) Subject to the authority, direction, and control of the 
Secretary of Defense, the Under Secretary of Defense for Policy shall 
have overall direction and supervision for policy, program planning and 
execution, and allocation and use of resources for the activities of 
the Department of Defense for combating terrorism.''.
    (c) Conforming Amendment.--Section 138(b) of such title is amended 
by striking paragraph (6).
    (d) Repeal of Previous Contingent Reduction in Number of Assistant 
Secretaries of Defense.--Subsections (c) and (d) of section 901 of the 
National Defense Authorization Act for Fiscal Year 2002 (Public Law 
107-107; 115 Stat. 1194) are repealed.

                      Subtitle B--Space Activities

SEC. 911. OVERSIGHT OF ACQUISITION FOR DEFENSE SPACE PROGRAMS.

    (a) In General.--The Secretary of Defense shall provide for 
oversight of acquisition for defense space programs through appropriate 
organizations of the Office of the Secretary of Defense.
    (b) Report on Oversight.--(1) Not later than March 15, 2003, the 
Secretary of Defense shall submit to the congressional defense 
committees a detailed plan on how the Office of the Secretary of 
Defense shall provide oversight of acquisition for defense space 
programs.
    (2) The plan shall set forth the following:
        (A) The organizations in the Office of the Secretary of 
    Defense, and the Joint Staff organizations, to be involved in 
    oversight of acquisition for defense space programs.
        (B) The process for the review of acquisition for defense space 
    programs by the organizations specified under subparagraph (A).
        (C) The process for the provision by such organizations of 
    technical, programmatic, scheduling, and budgetary oversight of 
    acquisition for defense space programs.
        (D) The process for the development of independent cost 
    estimates for acquisition for defense space programs, including the 
    organization responsible for developing such cost estimates and 
    when such cost estimates shall be required.
        (E) The process by which the military departments, Defense 
    Agencies, and organizations in the Office of the Secretary of 
    Defense develop and coordinate the budgets for acquisition for 
    defense space programs.
        (F) The process for the resolution of conflicts among the 
    Department of Defense elements referred to in subparagraphs (A) and 
    (E) regarding acquisition for defense space programs.
    (c) Defense Space Program Defined.--In this section, the term 
``defense space program'' means a program of the Department of Defense 
that--
        (1) is included in the ``virtual major force program'' for 
    space activities that was established by the Secretary of Defense 
    and was to have been submitted with the 2003 fiscal year budget for 
    the Department of Defense; or
        (2) after the date of the enactment of this Act, is included in 
    a virtual major force program for space categories or in a major 
    force program for space activities established after such date.

SEC. 912. REPORT REGARDING ASSURED ACCESS TO SPACE FOR THE UNITED 
              STATES.

    (a) Plan.--The Secretary of Defense shall--
        (1) evaluate all options for sustaining the space launch 
    industrial base of the United States; and
        (2) develop an integrated, long-range, and adequately funded 
    plan for assuring access to space by the United States.
    (b) Report.--Not later than March 1, 2003, the Secretary of Defense 
shall submit to Congress a report on the plan developed under 
subsection (a)(2).

                          Subtitle C--Reports

SEC. 921. REPORT ON ESTABLISHMENT OF UNITED STATES NORTHERN COMMAND.

    Not later than March 1, 2003, the Secretary of Defense shall submit 
to the Committees on Armed Services of the Senate and the House of 
Representatives a report providing an implementation plan for the 
establishment of the United States Northern Command, which is 
established effective October 1, 2002. The report shall address the 
following:
        (1) The required budget for standing-up and maintaining that 
    command over the period of the future-years defense program.
        (2) The rationale for the selection of Peterson Air Force Base, 
    Colorado, as the headquarters of that command, the criteria used in 
    the selection of Peterson Air Force Base, and the alternative 
    locations considered for that headquarters.
        (3) The required military and civilian personnel levels for the 
    headquarters of that command and a specification of the combatant 
    commands and other Department of Defense sources from which such 
    headquarters personnel will be transferred, shown by the number of 
    military and civilian personnel from each such command or other 
    Department of Defense source.
        (4) The organization of the command, a justification of any 
    components of the command, and a review of organizations and units 
    permanently assigned or tasked to the command.
        (5) The relationship of that command (A) to the Office of 
    Homeland Security, the Department of Homeland Security, the 
    Homeland Security Council, and any other Federal coordinating 
    entity, (B) to other Federal departments and agencies, and (C) to 
    State and local law enforcement agencies.
        (6) The relationship of that command with the National Guard 
    Bureau, individual State National Guard Headquarters, and State and 
    local officials the command may be called upon to provide support.
        (7) The legal implications of members of the Armed Forces, 
    including the National Guard in both Federal and State status, 
    operating on United States territory pursuant to missions, 
    operations, or activities of that command.
        (8) The status of Department of Defense consultations--
            (A) with Canada regarding Canada's role in, or relationship 
        with, and any expansion of mission for, the North American Air 
        Defense Command; and
            (B) with Mexico regarding Mexico's role in, or relationship 
        with, the United States Northern Command.
        (9) The status of United States consultations with the North 
    Atlantic Treaty Organization relating to the position of Supreme 
    Allied Commander, Atlantic, and the new chain of command for that 
    position.
        (10) The effect of the creation of the United States Northern 
    Command on the mission, budget, and resource levels of other 
    combatant commands, particularly the United States Joint Forces 
    Command.

SEC. 922. TIME FOR SUBMITTAL OF REPORT ON QUADRENNIAL DEFENSE REVIEW.

    Section 118(d) of title 10, United States Code, is amended by 
striking ``not later than September 30 of the year in which the review 
is conducted'' in the second sentence and inserting ``in the year 
following the year in which the review is conducted, but not later than 
the date on which the President submits the budget for the next fiscal 
year to Congress under section 1105(a) of title 31''.

SEC. 923. NATIONAL DEFENSE MISSION OF COAST GUARD TO BE INCLUDED IN 
              FUTURE QUADRENNIAL DEFENSE REVIEWS.

    Section 118(d) of title 10, United States Code, is amended--
        (1) by redesignating paragraph (14) as paragraph (15); and
        (2) by inserting after paragraph (13) the following new 
    paragraph:
        ``(14) The national defense mission of the Coast Guard.''.

SEC. 924. REPORT ON ESTABLISHMENT OF A JOINT NATIONAL TRAINING COMPLEX 
              AND JOINT OPPOSING FORCES.

    (a) Report Required.--The commander of the United States Joint 
Forces Command shall submit to the Secretary of Defense a report that 
outlines a plan that would provide for the development and 
implementation of a joint national training concept together with the 
establishment of a joint training complex for supporting the 
implementation of that concept. Such a concept and complex--
        (1) may include various training sites, mobile training ranges, 
    public and private modeling and simulation centers, and appropriate 
    joint opposing forces; and
        (2) shall be capable of supporting field exercises and 
    experimentation at the operational level of war across a broad 
    spectrum of adversary capabilities.
    (b) Submission of Report.--Not later than six months after the date 
of the enactment of this Act, the Secretary shall submit the report 
under subsection (a), together with any comments that the Secretary 
considers appropriate and any comments that the Chairman of the Joint 
Chiefs of Staff considers appropriate, to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives. The report may be included in the next annual 
report submitted under section 485 of title 10, United States Code, 
after the date of the enactment of this Act or it may be submitted 
separately.
    (c) Matters To Be Included.--The report under subsection (a) shall 
include the following:
        (1) An identification and description of the types of joint 
    training and experimentation that would be conducted at such a 
    joint national training complex, together with a description of how 
    such training and experimentation would enhance accomplishment of 
    the six critical operational goals for the Department of Defense 
    specified at page 30 of the Quadrennial Defense Review Report of 
    the Secretary of Defense issued on September 30, 2001.
        (2) A discussion of how establishment of such a complex 
    (including joint opposing forces) would promote innovation and 
    transformation throughout the Department of Defense.
        (3) A discussion of how results from training and experiments 
    conducted at such a complex would be taken into consideration in 
    the Department of Defense plans, programs, and budgeting process 
    and by appropriate decision making bodies within the Department of 
    Defense.
        (4) A methodology, framework, and options for selecting sites 
    for such a complex, including consideration of current training 
    facilities that would accommodate requirements among all the Armed 
    Forces.
        (5) Options for development as part of such a complex of a 
    joint urban warfare training center that could also be used for 
    homeland defense and consequence management training for Federal, 
    State, and local training.
        (6) Cost estimates and resource requirements to establish and 
    maintain such a complex, including estimates of costs and resource 
    requirements for the use of contract personnel for the performance 
    of management, operational, and logistics activities for such a 
    complex.
        (7) An explanation of the relationship between and among such a 
    complex and the Department of Defense Office of Transformation, the 
    Joint Staff, the United States Joint Forces Command, the United 
    States Northern Command, and each element of the major commands 
    within the separate Armed Forces with responsibility for 
    experimentation and training.
        (8) A discussion of how implementation of a joint opposing 
    force would be established, including the feasibility of using 
    qualified contractors for the function of establishing and 
    maintaining joint opposing forces and the role of foreign forces.
        (9) A timeline for the establishment of such a complex and for 
    such a complex to achieve (A) initial operational capability, and 
    (B) full operational capability.

                       Subtitle D--Other Matters

SEC. 931. AUTHORITY TO ACCEPT GIFTS FOR NATIONAL DEFENSE UNIVERSITY.

    (a) In General.--Chapter 155 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 2612. National Defense University: acceptance of gifts

    ``(a) The Secretary of Defense may accept, hold, administer, and 
spend any gift, including a gift from an international organization and 
a foreign gift or donation (as defined in section 2611(f) of this 
title), that is made on the condition that it be used in connection 
with the operation or administration of the National Defense 
University. The Secretary may pay all necessary expenses in connection 
with the acceptance of a gift under this subsection.
    ``(b) There is established in the Treasury a fund to be known as 
the `National Defense University Gift Fund'. Gifts of money, and the 
proceeds of the sale of property, received under subsection (a) shall 
be deposited in the fund. The Secretary may disburse funds deposited 
under this subsection for the benefit or use of the National Defense 
University.
    ``(c) Subsection (c) of section 2601 of this title applies to 
property that is accepted under subsection (a) in the same manner that 
such subsection applies to property that is accepted under subsection 
(a) of that section.
    ``(d)(1) Upon request of the Secretary of Defense, the Secretary of 
the Treasury may--
        ``(A) retain money, securities, and the proceeds of the sale of 
    securities, in the National Defense University Gift Fund; and
        ``(B) invest money and reinvest the proceeds of the sale of 
    securities in that fund in securities of the United States or in 
    securities guaranteed as to principal and interest by the United 
    States.
    ``(2) The interest and profits accruing from those securities shall 
be deposited to the credit of the fund and may be disbursed as provided 
in subsection (b).
    ``(e) In this section:
        ``(1) the term `gift' includes a devise of real property or a 
    bequest of personal property and any gift of an interest in real 
    property.
        ``(2) The term `National Defense University' includes any 
    school or other component of the National Defense University 
    specified under section 2165(b) of this title.
    ``(f) The Secretary of Defense shall prescribe regulations to carry 
out this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2612. National Defense University: acceptance of gifts.''.

SEC. 932. WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    (a) Authority To Accept Foreign Gifts and Donations.--Section 2166 
of title 10, United States Code, is amended--
        (1) by redesignating subsections (f), (g), and (h), as 
    subsections (g), (h), and (i), respectively; and
        (2) by inserting after subsection (e) the following new 
    subsection (f):
    ``(f) Authority To Accept Foreign Gifts and Donations.--(1) The 
Secretary of Defense may, on behalf of the Institute, accept foreign 
gifts or donations in order to defray the costs of, or enhance the 
operation of, the Institute.
    ``(2) Funds received by the Secretary under paragraph (1) shall be 
credited to appropriations available for the Department of Defense for 
the Institute. Funds so credited shall be merged with the 
appropriations to which credited and shall be available for the 
Institute for the same purposes and same period as the appropriations 
with which merged.
    ``(3) The Secretary of Defense shall notify Congress if the total 
amount of money accepted under paragraph (1) exceeds $1,000,000 in any 
fiscal year. Any such notice shall list each of the contributors of 
such money and the amount of each contribution in such fiscal year.
    ``(4) For the purposes of this subsection, a foreign gift or 
donation is a gift or donation of funds, materials (including research 
materials), property, or services (including lecture services and 
faculty services) from a foreign government, a foundation or other 
charitable organization in a foreign country, or an individual in a 
foreign country.''.
    (b) Content of Annual Report to Congress.--Subsection (i) of such 
section, as redesignated by subsection (a)(1), is amended by inserting 
after the first sentence the following: ``The report shall include a 
copy of the latest report of the Board of Visitors received by the 
Secretary under subsection (e)(5), together with any comments of the 
Secretary on the Board's report.''.

SEC. 933. CONFORMING AMENDMENT TO REFLECT DISESTABLISHMENT OF 
              DEPARTMENT OF DEFENSE CONSEQUENCE MANAGEMENT PROGRAM 
              INTEGRATION OFFICE.

    Section 12310(c)(3) of title 10, United States Code, is amended by 
striking ``only--'' and all that follows through ``(B) while assigned'' 
and inserting ``only while assigned''.

SEC. 934. INCREASE IN NUMBER OF DEPUTY COMMANDANTS OF THE MARINE CORPS.

    Section 5045 of title 10, United States Code, is amended by 
striking ``five'' and inserting ``six''.

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. Authorization of supplemental appropriations for fiscal year 
          2002.
Sec. 1003. United States contribution to NATO common-funded budgets in 
          fiscal year 2003.
Sec. 1004. Development and implementation of financial management 
          enterprise architecture.
Sec. 1005. Accountable officials in the Department of Defense.
Sec. 1006. Uniform standards throughout Department of Defense for 
          exposure of personnel to pecuniary liability for loss of 
          Government property.
Sec. 1007. Improvements in purchase card management.
Sec. 1008. Improvements in travel card management.
Sec. 1009. Clearance of certain transactions recorded in Treasury 
          suspense accounts and resolution of certain check issuance 
          discrepancies.
Sec. 1010. Authorization of funds for ballistic missile defense programs 
          or combating terrorism programs of the Department of Defense.
Sec. 1011. Reduction in overall authorization due to inflation savings.

                 Subtitle B--Naval Vessels and Shipyards

Sec. 1021. Number of Navy combatant surface vessels in active and 
          reserve service.
Sec. 1022. Annual long-range plan for the construction of naval vessels.
Sec. 1023. Assessment of the feasibility of the expedited equipping of a 
          Navy ship with a version of the 155-millimeter Advanced Gun 
          System.
Sec. 1024. Report on initiatives to increase operational days of Navy 
          ships.
Sec. 1025. Ship combat system industrial base.
Sec. 1026. Sense of Congress concerning aircraft carrier force 
          structure.
Sec. 1027. Conveyance, Navy drydock, Portland, Oregon.

                      Subtitle C--Strategic Matters

Sec. 1031. Strategic force structure plan for nuclear weapons and 
          delivery systems.
Sec. 1032. Annual report on weapons to defeat hardened and deeply buried 
          targets.
Sec. 1033. Report on effects of nuclear earth-penetrator weapon and 
          other weapons.

                           Subtitle D--Reports

Sec. 1041. Repeal and modification of various reporting requirements 
          applicable to the Department of Defense.
Sec. 1042. Requirement that Department of Defense reports to Congress be 
          accompanied by electronic version.
Sec. 1043. Annual report on the conduct of military operations conducted 
          as part of Operation Enduring Freedom.
Sec. 1044. Report on efforts to ensure adequacy of fire fighting staffs 
          at military installations.
Sec. 1045. Report on designation of certain Louisiana highway as Defense 
          Access Road.

              Subtitle E--Extension of Expiring Authorities

Sec. 1051. Extension of authority for Secretary of Defense to sell 
          aircraft and aircraft parts for use in responding to oil 
          spills.
Sec. 1052. Six-month extension of expiring Governmentwide information 
          security requirements; continued applicability of expiring 
          Governmentwide information security requirements to the 
          Department of Defense.
Sec. 1053. Two-year extension of authority of the Secretary of Defense 
          to engage in commercial activities as security for 
          intelligence collection activities abroad.

                        Subtitle F--Other Matters

Sec. 1061. Time for transmittal of annual defense authorization 
          legislative proposal.
Sec. 1062. Technical and clerical amendments.
Sec. 1063. Use for law enforcement purposes of DNA samples maintained by 
          Department of Defense for identification of human remains.
Sec. 1064. Enhanced authority to obtain foreign language services during 
          periods of emergency.
Sec. 1065. Rewards for assistance in combating terrorism.
Sec. 1066. Provision of space and services to military welfare 
          societies.
Sec. 1067. Prevention and mitigation of corrosion of military equipment 
          and infrastructure.
Sec. 1068. Transfer of historic DF-9E Panther aircraft to Women Airforce 
          Service Pilots Museum.
Sec. 1069. Increase in amount authorized to be expended for Department 
          of Defense program to commemorate 50th anniversary of the 
          Korean War.

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon determination 
by the Secretary of Defense that such action is necessary in the 
national interest, the Secretary may transfer amounts of authorizations 
made available to the Department of Defense in this division for fiscal 
year 2003 between any such authorizations for that fiscal year (or any 
subdivisions thereof). Amounts of authorizations so transferred shall 
be merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary may 
transfer under the authority of paragraph (1) may not exceed 
$2,000,000,000.
    (b) Limitations.--The authority provided by subsection (a) to 
transfer authorizations--
        (1) may only be used to provide authority for items that have a 
    higher priority than the items from which authority is transferred; 
    and
        (2) may not be used to provide authority for an item that has 
    been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of subsection (a) shall be 
deemed to increase the amount authorized for the account to which the 
amount is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).
    (e) Increase in Amount of Transfer Authority Authorized for FY02.--
Section 1001 of the National Defense Authorization Act for Fiscal Year 
2002 (Public Law 107-107; 115 Stat. 1201) is amended by striking 
``$2,000,000,000'' and inserting ``$2,500,000,000''.

SEC. 1002. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 
              2002.

    (a) DOD Authorizations.--Amounts authorized to be appropriated to 
the Department of Defense for fiscal year 2002 in the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) are hereby 
adjusted, with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased (by a 
supplemental appropriation) or decreased (by a rescission), or both, or 
are increased by a transfer of funds, pursuant to chapter 3 or chapter 
10 of title I of Public Law 107-206 (116 Stat. 835, 878).
    (b) NNSA Authorizations.--Amounts authorized to be appropriated to 
the Department of Energy for fiscal year 2002 in the National Defense 
Authorization Act for Fiscal Year 2002 (Public Law 107-107) are hereby 
adjusted, with respect to any such authorized amount, by the amount by 
which appropriations pursuant to such authorization are increased (by a 
supplemental appropriation) or decreased (by a rescission), or both, or 
are increased by a transfer of funds, pursuant to chapter 5 of title I 
of Public Law 107-206 (116 Stat. 848).
    (c) Report on Fiscal Year 2002 Transfers.--Not later than January 
15, 2003, the Secretary of Defense shall submit to the congressional 
defense committees a report stating, for each transfer during fiscal 
year 2002 of an amount provided for the Department of Defense for that 
fiscal year through a so-called ``transfer account'', including the 
Defense Emergency Response Fund or any other similar account, the 
amount of the transfer, the appropriation account to which the transfer 
was made, and the specific purpose for which the transferred funds were 
used.

SEC. 1003. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2003.

    (a) Fiscal Year 2003 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2003 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
        (1) The amounts of unexpended balances, as of the end of fiscal 
    year 2002, of funds appropriated for fiscal years before fiscal 
    year 2003 for payments for those budgets.
        (2) The amount specified in subsection (c)(1).
        (3) The amount specified in subsection (c)(2).
        (4) The total amount of the contributions authorized to be made 
    under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
        (1) Of the amount provided in section 201(1), $750,000 for the 
    Civil Budget.
        (2) Of the amount provided in section 301(1), $205,623,000 for 
    the Military Budget.
    (d) Definitions.--For purposes of this section:
        (1) Common-funded budgets of nato.--The term ``common-funded 
    budgets of NATO'' means the Military Budget, the Security 
    Investment Program, and the Civil Budget of the North Atlantic 
    Treaty Organization (and any successor or additional account or 
    program of NATO).
        (2) Fiscal year 1998 baseline limitation.--The term ``fiscal 
    year 1998 baseline limitation'' means the maximum annual amount of 
    Department of Defense contributions for common-funded budgets of 
    NATO that is set forth as the annual limitation in section 
    3(2)(C)(ii) of the resolution of the Senate giving the advice and 
    consent of the Senate to the ratification of the Protocols to the 
    North Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
    and the Czech Republic (as defined in section 4(7) of that 
    resolution), approved by the Senate on April 30, 1998.

SEC. 1004. DEVELOPMENT AND IMPLEMENTATION OF FINANCIAL MANAGEMENT 
              ENTERPRISE ARCHITECTURE.

    (a) Requirement for Enterprise Architecture and for Transition 
Plan.--Not later than May 1, 2003, the Secretary of Defense shall 
develop--
        (1) a financial management enterprise architecture for all 
    budgetary, accounting, finance, enterprise resource planning, and 
    mixed information systems of the Department of Defense; and
        (2) a transition plan for implementing that financial 
    management enterprise architecture.
    (b) Composition of Enterprise Architecture.--(1) The financial 
management enterprise architecture developed under subsection (a)(1) 
shall describe an information infrastructure that, at a minimum, would 
enable the Department of Defense to--
        (A) comply with all Federal accounting, financial management, 
    and reporting requirements;
        (B) routinely produce timely, accurate, and reliable financial 
    information for management purposes;
        (C) integrate budget, accounting, and program information and 
    systems; and
        (D) provide for the systematic measurement of performance, 
    including the ability to produce timely, relevant, and reliable 
    cost information.
    (2) That enterprise architecture shall also include policies, 
procedures, data standards, and system interface requirements that are 
to apply uniformly throughout the Department of Defense.
    (c) Composition of Transition Plan.--The transition plan developed 
under subsection (a)(2) shall include the following:
        (1) The acquisition strategy for the enterprise architecture, 
    including specific time-phased milestones, performance metrics, and 
    financial and nonfinancial resource needs.
        (2) A listing of the mission critical or mission essential 
    operational and developmental financial and nonfinancial management 
    systems of the Department of Defense, as defined by the Under 
    Secretary of Defense (Comptroller), consistent with budget 
    justification documentation, together with--
            (A) the costs to operate and maintain each of those systems 
        during fiscal year 2002; and
            (B) the estimated cost to operate and maintain each of 
        those systems during fiscal year 2003.
        (3) A listing of the operational and developmental financial 
    management systems of the Department of Defense as of the date of 
    the enactment of this Act (known as ``legacy systems'') that will 
    not be part of the objective financial and nonfinancial management 
    system, together with the schedule for terminating those legacy 
    systems that provides for reducing the use of those legacy systems 
    in phases.
    (d) Conditions for Obligation of Significant Amounts for Financial 
System Improvements.--An amount in excess of $1,000,000 may be 
obligated for a defense financial system improvement only if the Under 
Secretary of Defense (Comptroller) makes a determination regarding that 
improvement as follows:
        (1) Before the date of an approval specified in paragraph (2), 
    a determination that the defense financial system improvement is 
    necessary for either of the following reasons:
            (A) To achieve a critical national security capability or 
        address a critical requirement in an area such as safety or 
        security.
            (B) To prevent a significant adverse effect (in terms of a 
        technical matter, cost, or schedule) on a project that is 
        needed to achieve an essential capability, taking into 
        consideration in the determination the alternative solutions 
        for preventing the adverse effect.
        (2) On and after the date of any approval by the Secretary of 
    Defense of a financial management enterprise architecture and a 
    transition plan that satisfy the requirements of this section, a 
    determination that the defense financial system improvement is 
    consistent with both the enterprise architecture and the transition 
    plan.
    (e) Congressional Reports.--Not later than March 15 of each year 
from 2004 through 2007, the Secretary of Defense shall submit to the 
congressional defense committees a report on the progress of the 
Department of Defense in implementing the enterprise architecture and 
transition plan required by this section. Each report shall include, at 
a minimum--
        (1) a description of the actions taken during the preceding 
    fiscal year to implement the enterprise architecture and transition 
    plan (together with the estimated costs of such actions);
        (2) an explanation of any action planned in the enterprise 
    architecture and transition plan to be taken during the preceding 
    fiscal year that was not taken during that fiscal year;
        (3) a description of the actions taken and planned to be taken 
    during the current fiscal year to implement the enterprise 
    architecture and transition plan (together with the estimated costs 
    of such actions); and
        (4) a description of the actions taken and planned to be taken 
    during the next fiscal year to implement the enterprise 
    architecture and transition plan (together with the estimated costs 
    of such actions).
    (f) Comptroller General Review.--Not later than 60 days after the 
approval of an enterprise architecture and transition plan in 
accordance with the requirements of subsection (a), and not later than 
60 days after the submission of an annual report required by subsection 
(e), the Comptroller General shall submit to the congressional defense 
committees an assessment of the extent to which the actions taken by 
the Department comply with the requirements of this section.
    (g) Definitions.--In this section:
        (1) The term ``defense financial system improvement'' means the 
    acquisition of a new budgetary, accounting, finance, enterprise 
    resource planning, or mixed information system for the Department 
    of Defense or a modification of an existing budgetary, accounting, 
    finance, enterprise resource planning, or mixed information system 
    of the Department of Defense. Such term does not include routine 
    maintenance and operation of any such system.
        (2) The term ``mixed information system'' means an information 
    system that supports financial and non-financial functions of the 
    Federal Government as defined in Office of Management and Budget 
    Circular A-127 (Financial management Systems).
    (h) Repeal.--(1) Section 2222 of title 10, United States Code, is 
repealed. The table of sections at the beginning of chapter 131 of such 
title is amended by striking the item relating to such section.
    (2) Section 185(d) of such title is amended by striking ``has the 
meaning given that term in section 2222(c)(2) of this title'' and 
inserting ``means an automated or manual system from which information 
is derived for a financial management system or an accounting system''.

SEC. 1005. ACCOUNTABLE OFFICIALS IN THE DEPARTMENT OF DEFENSE.

    (a) Accountable Officials Within the Department of Defense.--
Chapter 165 of title 10, United States Code, is amended by inserting 
after section 2773 the following new section:

``Sec. 2773a. Departmental accountable officials

    ``(a) Designation by Secretary of Defense.--The Secretary of 
Defense may designate any civilian employee of the Department of 
Defense or member of the armed forces under the Secretary's 
jurisdiction who is described in subsection (b) as an employee or 
member who, in addition to any other potential accountability, may be 
held accountable through personal monetary liability for an illegal, 
improper, or incorrect payment made the Department of Defense described 
in subsection (c). Any such designation shall be in writing. Any 
employee or member who is so designated may be referred to as a 
`departmental accountable official'.
    ``(b) Covered Employees and Members.--An employee or member of the 
armed forces described in this subsection is an employee or member 
who--
        ``(1) is responsible in the performance of the employee's or 
    member's duties for providing to a certifying official of the 
    Department of Defense information, data, or services that are 
    directly relied upon by the certifying official in the 
    certification of vouchers for payment; and
        ``(2) is not otherwise accountable under subtitle III of title 
    31 or any other provision of law for payments made on the basis of 
    such vouchers.
    ``(c) Pecuniary Liability.--(1) The Secretary of Defense may 
subject a departmental accountable official to pecuniary liability for 
an illegal, improper, or incorrect payment made by the Department of 
Defense if the Secretary determines that such payment--
        ``(A) resulted from information, data, or services that that 
    official provided to a certifying official and upon which that 
    certifying official directly relies in certifying the voucher 
    supporting that payment; and
        ``(B) was the result of fault or negligence on the part of that 
    departmental accountable official.
    ``(2) Pecuniary liability under this subsection shall apply in the 
same manner and to the same extent as applies to an official 
accountable under subtitle III of title 31.
    ``(3) Any pecuniary liability of a departmental accountable 
official under this subsection for a loss to the United States 
resulting from an illegal, improper, or incorrect payment is joint and 
several with that of any other officer or employee of the United States 
or member of the uniformed services who is pecuniarily liable for such 
loss.
    ``(d) Certifying Official Defined.--In this section, the term 
`certifying official' means an employee who has the responsibilities 
specified in section 3528(a) of title 31.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2773 the following new item:

``2773a. Departmental accountable officials.''.

SEC. 1006. UNIFORM STANDARDS THROUGHOUT DEPARTMENT OF DEFENSE FOR 
              EXPOSURE OF PERSONNEL TO PECUNIARY LIABILITY FOR LOSS OF 
              GOVERNMENT PROPERTY.

    (a) Extension of Army and Air Force Report-of-Survey Procedures to 
Navy and Marine Corps and all DOD Civilian Employees.--(1) Chapter 165 
of title 10, United States Code, is amended by adding at the end the 
following new section:

``Sec. 2787. Reports of survey

    ``(a) Action on Reports of Survey.--Under regulations prescribed 
pursuant to subsection (c), any officer of the Army, Navy, Air Force, 
or Marine Corps or any civilian employee of the Department of Defense 
designated in accordance with those regulations may act upon reports of 
surveys and vouchers pertaining to the loss, spoilage, 
unserviceability, unsuitability, or destruction of, or damage to, 
property of the United States under the control of the Department of 
Defense.
    ``(b) Finality of Action.--(1) Action taken under subsection (a) is 
final except as provided in paragraph (2).
    ``(2) An action holding a person pecuniarily liable for loss, 
spoilage, destruction, or damage is not final until approved by a 
person designated to do so by the Secretary of a military department, 
commander of a combatant command, or Director of a Defense Agency, as 
the case may be, who has jurisdiction of the person held pecuniarily 
liable. The person designated to provide final approval shall be an 
officer of an armed force, or a civilian employee, under the 
jurisdiction of the official making the designation.
    ``(c) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2787. Reports of survey.''.

    (b) Extension to Members of Navy and Marine Corps of Pay Deduction 
Authority Pertaining to Damage or Repair of Arms and Equipment.--
Section 1007(e) of title 37, United States Code, is amended by striking 
``Army or the Air Force'' and inserting ``Army, Navy, Air Force, or 
Marine Corps''.
    (c) Repeal of Superseded Provisions.--(1) Sections 4835 and 9835 of 
title 10, United States Code, are repealed.
    (2) The tables of sections at the beginning of chapters 453 and 953 
of such title are amended by striking the items relating to sections 
4835 and 9835, respectively.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to the loss, spoilage, unserviceability, 
unsuitability, or destruction of, or damage to, property of the United 
States under the control of the Department of Defense occurring on or 
after the effective date of regulations prescribed pursuant to section 
2787 of title 10, United States Code, as added by subsection (a).

SEC. 1007. IMPROVEMENTS IN PURCHASE CARD MANAGEMENT.

    (a) Purchase Card Management Improvements.--Section 2784 of title 
10, United States Code, is amended--
        (1) in subsection (a), by striking ``, acting through the Under 
    Secretary of Defense (Comptroller),''; and
        (2) by adding at the end of subsection (b) the following:
        ``(7) That periodic reviews are performed to determine whether 
    each purchase card holder has a need for the purchase card.
        ``(8) That the Inspector General of the Department of Defense, 
    the Inspector General of the Army, the Naval Inspector General, and 
    the Inspector General of the Air Force perform periodic audits to 
    identify--
            ``(A) potentially fraudulent, improper, and abusive uses of 
        purchase cards;
            ``(B) any patterns of improper card holder transactions, 
        such as purchases of prohibited items; and
            ``(C) categories of purchases that should be made by means 
        other than purchase cards in order to better aggregate 
        purchases and obtain lower prices.
        ``(9) That appropriate training is provided to each purchase 
    card holder and each official with responsibility for overseeing 
    the use of purchase cards issued by the Department of Defense.
        ``(10) That the Department of Defense has specific policies 
    regarding the number of purchase cards issued by various 
    organizations and categories of organizations, the credit limits 
    authorized for various categories of card holders, and categories 
    of employees eligible to be issued purchase cards, and that those 
    policies are designed to minimize the financial risk to the Federal 
    Government of the issuance of the purchase cards and to ensure the 
    integrity of purchase card holders.
    ``(c) Penalties for Violations.--The regulations prescribed under 
subsection (a) shall--
        ``(1) provide for appropriate adverse personnel actions or 
    other punishment to be imposed in cases in which employees of the 
    Department of Defense violate such regulations or are negligent or 
    engage in misuse, abuse, or fraud with respect to a purchase card, 
    including removal in appropriate cases; and
        ``(2) provide that a violation of such regulations by a person 
    subject to chapter 47 of this title (the Uniform Code of Military 
    Justice) is punishable as a violation of section 892 of this title 
    (article 92 of the Uniform Code of Military Justice).''.
    (b) Conforming and Clerical Amendments.--(1) Section 2784 of such 
title is further amended--
        (A) in the section heading, by striking ``credit'' and 
    inserting ``purchase'';
        (B) in the heading of subsection (a), by striking ``Credit'' 
    and inserting ``Purchase''; and
        (C) in subsection (a) and paragraphs (1) through (6) of 
    subsection (b), by striking ``credit'' and inserting ``purchase'' 
    each place it appears.
    (2) The table of sections at the beginning of chapter 165 of such 
title is amended by striking the item relating to section 2784 and 
inserting the following:

``2784. Management of purchase cards.''.

SEC. 1008. IMPROVEMENTS IN TRAVEL CARD MANAGEMENT.

    (a) Travel Card Management Improvements.--Chapter 165 of title 10, 
United States Code, is amended by inserting after section 2784 the 
following new section:

``Sec. 2784a. Management of travel cards

    ``(a) Disbursement of Travel Allowances Directly to Creditors.--(1) 
The Secretary of Defense may require that any part of a travel or 
transportation allowance of an employee of the Department of Defense or 
a member of the armed forces be disbursed directly to the issuer of a 
Defense travel card if the amount is disbursed to the issuer in payment 
of amounts of expenses of official travel that are charged by the 
employee or member on the Defense travel card.
    ``(2) For the purposes of this subsection, the travel and 
transportation allowances referred to in paragraph (1) are amounts to 
which an employee of the Department of Defense is entitled under 
section 5702 of title 5 or a member of the armed forces is entitled 
under section 404 of title 37.
    ``(b) Offsets for Delinquent Travel Card Charges.--(1) The 
Secretary of Defense may require that there be deducted and withheld 
from any basic pay payable to an employee of the Department of Defense 
or a member of the armed forces any amount that is owed by the employee 
or member to a creditor by reason of one or more charges of expenses of 
official travel of the employee or member on a Defense travel card 
issued by the creditor if the employee or member--
        ``(A) is delinquent in the payment of such amount under the 
    terms of the contract under which the card is issued; and
        ``(B) does not dispute the amount of the delinquency.
    ``(2) The amount deducted and withheld from pay under paragraph (1) 
with respect to a debt owed a creditor as described in that paragraph 
shall be disbursed to the creditor to reduce the amount of the debt.
    ``(3) The amount of pay deducted and withheld from the pay owed to 
an employee or member with respect to a pay period under paragraph (1) 
may not exceed 15 percent of the disposable pay of the employee or 
member for that pay period, except that a higher amount may be deducted 
and withheld with the written consent of the employee or member.
    ``(4) The Secretary of Defense shall prescribe procedures for 
deducting and withholding amounts from pay under this subsection. The 
procedures shall be substantially equivalent to the procedures under 
section 3716 of title 31.
    ``(c) Offsets of Retired Pay.--In the case of a former employee of 
the Department of Defense or a retired member of the armed forces who 
is receiving retired pay and who owes an amount to a creditor by reason 
of one or more charges on a Defense travel card that were made before 
the retirement of the employee or member, the Secretary may require 
amounts to be deducted and withheld from any retired pay of the former 
employee or retired member in the same manner and subject to the same 
conditions as the Secretary deducts and withholds amounts from basic 
pay payable to an employee or member under subsection (b).
    ``(d) Definitions.--In this section:
        ``(1) The term `Defense travel card' means a charge or credit 
    card that--
            ``(A) is issued to an employee of the Department of Defense 
        or a member of the armed forces under a contract entered into 
        by the Department of Defense with the issuer of the card; and
            ``(B) is to be used for charging expenses incurred by the 
        employee or member in connection with official travel.
        ``(2) The term `disposable pay', with respect to a pay period, 
    means the amount equal to the excess of the amount of basic pay or 
    retired pay, as the case may be, payable for the pay period over 
    the total of the amounts deducted and withheld from such pay.
        ``(3) The term `retired pay' means--
            ``(A) in the case of a former employee of the Department of 
        Defense, any retirement benefit payable to that individual, out 
        of the Civil Service Retirement and Disability Fund, based (in 
        whole or in part) on service performed by such individual as a 
        civilian employee of the Department of Defense; and
            ``(B) in the case of a retired member of the armed forces 
        or member of the Fleet Reserve or Fleet Marine Corps Reserve, 
        retired or retainer pay to which the member is entitled.
    ``(e) Exclusion of Coast Guard.--This section does not apply to the 
Coast Guard.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 165 of such title is amended by inserting after the item 
relating to section 2784 the following new item:

``2784a. Management of travel cards.''.

SEC. 1009. CLEARANCE OF CERTAIN TRANSACTIONS RECORDED IN TREASURY 
              SUSPENSE ACCOUNTS AND RESOLUTION OF CERTAIN CHECK 
              ISSUANCE DISCREPANCIES.

    (a) Clearance of Certain Suspense Accounts.--(1) In the case of any 
transaction that was entered into by or on behalf of the Department of 
Defense before March 1, 2001, that is recorded in the Department of 
Treasury Budget Clearing Account (Suspense) designated as account 
F3875, the Unavailable Check Cancellations and Overpayments Account 
(Suspense) designated as account F3880, or an Undistributed 
Intergovernmental Payments account designated as account F3885, and for 
which no appropriation for the Department of Defense has been 
identified--
        (A) any undistributed collection credited to such account in 
    such case shall be deposited to the miscellaneous receipts of the 
    Treasury; and
        (B) subject to paragraph (2), any undistributed disbursement 
    recorded in such account in such case shall be canceled.
    (2) An undistributed disbursement may not be canceled under 
paragraph (1)(B) until the Secretary of Defense has made a written 
determination that the appropriate official or officials of the 
Department of Defense have attempted without success to locate the 
documentation necessary to identify which appropriation should be 
charged with such disbursement and that further efforts to do so are 
not in the best interests of the United States.
    (b) Resolution of Check Issuance Discrepancies.--(1) In the case of 
any check drawn on the Treasury that was issued by or on behalf of the 
Department of Defense before October 31, 1998, for which the Secretary 
of the Treasury has reported to the Department of Defense a discrepancy 
between the amount paid and the amount of the check as transmitted to 
the Department of Treasury, and for which no specific appropriation for 
the Department of Defense can be identified as being associated with 
the check, the discrepancy shall be canceled, subject to paragraph (2).
    (2) A discrepancy may not be canceled under paragraph (1) until the 
Secretary of Defense has made a written determination that the 
appropriate official or officials of the Department of Defense have 
attempted without success to locate the documentation necessary to 
identify which appropriation should be charged with the amount of the 
check and that further efforts to do so are not in the best interests 
of the United States.
    (c) Consultation.--The Secretary of Defense shall consult the 
Secretary of the Treasury in the exercise of the authority granted by 
subsections (a) and (b).
    (d) Duration of Cancellation Authority Following Determination.--
(1) A particular undistributed disbursement may not be canceled under 
paragraph (1)(B) of subsection (a) more than 30 days after the date of 
the written determination made by the Secretary of Defense under 
paragraph (2) of such subsection regarding that undistributed 
disbursement.
    (2) A particular discrepancy may not be canceled under paragraph 
(1) of subsection (b) more than 30 days after the date of the written 
determination made by the Secretary of Defense under paragraph (2) of 
such subsection regarding that discrepancy.
    (e) Program Termination.--No authority may be exercised under this 
section after the date that is two years after the date of the 
enactment of this Act.

SEC. 1010. AUTHORIZATION OF FUNDS FOR BALLISTIC MISSILE DEFENSE 
              PROGRAMS OR COMBATING TERRORISM PROGRAMS OF THE 
              DEPARTMENT OF DEFENSE.

    (a) Authorization.--There is hereby authorized to be appropriated 
for fiscal year 2003 for the military functions of the Department of 
Defense, in addition to amounts authorized to be appropriated in titles 
I, II, and III, the amount of $814,300,000, to be available, in 
accordance with subsection (b), for the following purposes:
        (1) Research, development, test, and evaluation for ballistic 
    missile defense programs of the Missile Defense Agency of the 
    Department of Defense.
        (2) Activities of the Department of Defense for combating 
    terrorism at home and abroad.
    (b) Allocation by President.--(1) The amount authorized to be 
appropriated by subsection (a) shall be allocated between the purposes 
stated in paragraphs (1) and (2) of that subsection in such manner as 
may be determined by the President based upon the national security 
interests of the United States. The amount authorized in subsection (a) 
shall not be available for any other purpose.
    (2) Upon an allocation of such amount by the President, the amount 
so allocated shall be transferred to the appropriate regular 
authorization account under this division in the same manner as 
provided in section 1001. Transfers under this paragraph shall not be 
counted for the purposes of section 1001(a)(2).
    (3) Not later than 15 days after an allocation is made under this 
subsection, the Secretary of Defense shall submit to the congressional 
defense committees a report describing the President's allocation, the 
basis for the President's determination in making such allocation, and 
the Secretary's plan for the use by the Department of Defense of the 
funds made available pursuant to such allocation.

SEC. 1011. REDUCTION IN OVERALL AUTHORIZATION DUE TO INFLATION SAVINGS.

    (a) Reduction.--The total amount authorized to be appropriated by 
titles I, II, and III is the amount equal to the sum of the individual 
authorizations in those titles reduced by $1,000,000,000.
    (b) Source of Savings.--Reductions required in order to comply with 
subsection (a) shall be derived from savings resulting from lower-than-
expected inflation as a result of the midsession review of the budget 
conducted by the Office of Management and Budget.
    (c) Allocation of Reduction.--The Secretary of Defense shall 
allocate the reduction required by subsection (a) among the accounts in 
titles I, II, and III to reflect the extent to which net inflation 
savings are available in those accounts.

                Subtitle B--Naval Vessels and Shipyards

SEC. 1021. NUMBER OF NAVY COMBATANT SURFACE VESSELS IN ACTIVE AND 
              RESERVE SERVICE.

    (a) Contingent Requirement for Report.--(1) If, on the date of the 
enactment of this Act, the number of combatant surface vessels of the 
Navy is less than 116, the Secretary of the Navy shall, not later than 
90 days after such date, submit to the Committees on Armed Services of 
the Senate and the House of Representatives a report on the size of the 
force of combatant surface vessels of the Navy. The report shall 
include a risk assessment for a force of combatant surface vessels in 
the number as of the date of the enactment of this Act that is based on 
the same assumptions as were applied in the QDR 2001 combatant surface 
force risk assessment.
    (2) The definitions in subsection (c) of section 7296 of title 10, 
United States Code, as added by subsection (b), apply to this 
subsection.
    (b) Number of Combatant Surface Vessels.--(1) Chapter 633 of title 
10, United States Code, is amended by inserting after section 7295 the 
following new section:

``Sec. 7296. Combatant surface vessels: notice before reduction in 
            number; preservation of surge capability

    ``(a) Notice-and-Wait Before Reductions.--(1) A reduction described 
in paragraph (2) in the number of combatant surface vessels may only be 
carried out after--
        ``(A) the Secretary of the Navy submits to the Committee on 
    Armed Services of the Senate and the Committee on Armed Services of 
    the House of Representatives a written notification of the proposed 
    reduction; and
        ``(B) a period of 90 days has expired after the date on which 
    such notification is received.
    ``(2) A reduction described in this paragraph in the number of 
combatant surface vessels is a reduction--
        ``(A) from 116, or a number greater than 116, to a number less 
    than 116; or
        ``(B) from a number less than 116 to a lesser number.
    ``(3) Any notification under paragraph (1)(A) shall include the 
following:
        ``(A) The schedule for the proposed reduction.
        ``(B) The number of vessels that are to comprise the force of 
    combatant surface vessels after the reduction.
        ``(C) A risk assessment for a force of combatant surface 
    vessels of the number specified under subparagraph (B) that is 
    based on the same assumptions as were applied in the QDR 2001 
    combatant surface force risk assessment.
    ``(b) Preservation of Surge Capability.--Whenever the number of 
combatant surface vessels is less than 116, the Secretary of the Navy 
shall maintain on the Naval Vessel Register a sufficient number of 
combatant surface vessels to enable the Navy to regain a force of 
combatant surface vessels numbering not less than 116 within 120 days 
after the date of any decision by the President to increase the number 
of combatant surface vessels.
    ``(c) Definitions.--In this section:
        ``(1) The term `combatant surface vessels' means cruisers, 
    destroyers, and frigates that are in active service in the Navy or 
    in active reserve service in the Navy.
        ``(2) The term `QDR 2001 combatant surface force risk 
    assessment' means the risk assessment associated with a force of 
    combatant surface vessels numbering 116 that is set forth in the 
    report on the quadrennial defense review submitted to Congress on 
    September 30, 2001, under section 118 of this title.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 7295 the 
following new item:

``7296. Combatant surface vessels: notice before reduction in number; 
          preservation of surge capability.''.

    (c) Effective Date for 90-Day Waiting Period.--The provisions of 
subparagraph (B) of subsection (a)(1) of section 7296 of title 10, 
United States Code, as added by subsection (b)(1) of this section, 
shall apply only with respect to notifications submitted under 
subparagraph (A) of that subsection on or after January 15, 2003.

SEC. 1022. ANNUAL LONG-RANGE PLAN FOR THE CONSTRUCTION OF NAVAL 
              VESSELS.

    (a) Annual Naval Vessel Construction Plan.--(1) Chapter 9 of title 
10, United States Code, is amended by adding at the end the following 
new section:

``Sec. 231. Budgeting for construction of naval vessels: annual plan 
            and certification

    ``(a) Annual Naval Vessel Construction Plan and Certification.--The 
Secretary of Defense shall include with the defense budget materials 
for a fiscal year--
        ``(1) a plan for the construction of combatant and support 
    vessels for the Navy developed in accordance with this section; and
        ``(2) a certification by the Secretary that both the budget for 
    that fiscal year and the future-years defense program submitted to 
    Congress in relation to such budget under section 221 of this title 
    provide for funding of the construction of naval vessels at a level 
    that is sufficient for the procurement of the vessels provided for 
    in the plan under paragraph (1) on the schedule provided in that 
    plan.
    ``(b) Annual Naval Vessel Construction Plan.--(1) The annual naval 
vessel construction plan developed for a fiscal year for purposes of 
subsection (a)(1) should be designed so that the naval vessel force 
provided for under that plan is capable of supporting the national 
security strategy of the United States as set forth in the most recent 
national security strategy report of the President under section 108 of 
the National Security Act of 1947 (50 U.S.C. 404a), except that, if at 
the time such plan is submitted with the defense budget materials for 
that fiscal year, a national security strategy report required under 
such section 108 has not been submitted to Congress as required by 
paragraph (2) or paragraph (3), if applicable, of subsection (a) of 
such section, then such annual plan should be designed so that the 
naval vessel force provided for under that plan is capable of 
supporting the ship force structure recommended in the report of the 
most recent Quadrennial Defense Review.
    ``(2) Each such naval vessel construction plan shall include the 
following:
        ``(A) A detailed program for the construction of combatant and 
    support vessels for the Navy over the next 30 fiscal years.
        ``(B) A description of the necessary naval vessel force 
    structure to meet the requirements of the national security 
    strategy of the United States or the most recent Quadrennial 
    Defense Review, whichever is applicable under paragraph (1).
        ``(C) The estimated levels of annual funding necessary to carry 
    out the program, together with a discussion of the procurement 
    strategies on which such estimated levels of annual funding are 
    based.
    ``(c) Assessment When Vessel Construction Budget is Insufficient To 
Meet Applicable Requirements.--If the budget for a fiscal year provides 
for funding of the construction of naval vessels at a level that is not 
sufficient to sustain the naval vessel force structure specified in the 
naval vessel construction plan for that fiscal year under subsection 
(a), the Secretary shall include with the defense budget materials for 
that fiscal year an assessment that describes and discusses the risks 
associated with the reduced force structure of naval vessels that will 
result from funding naval vessel construction at such level. Such 
assessment shall be coordinated in advance with the commanders of the 
combatant commands.
    ``(d) Definitions.--In this section:
        ``(1) The term `budget', with respect to a fiscal year, means 
    the budget for that fiscal year that is submitted to Congress by 
    the President under section 1105(a) of title 31.
        ``(2) The term `defense budget materials', with respect to a 
    fiscal year, means the materials submitted to Congress by the 
    Secretary of Defense in support of the budget for that fiscal year.
        ``(3) The term `Quadrennial Defense Review' means the review of 
    the defense programs and policies of the United States that is 
    carried out every four years under section 118 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``231. Budgeting for construction of naval vessels: annual plan and 
          certification.''.

SEC. 1023. ASSESSMENT OF THE FEASIBILITY OF THE EXPEDITED EQUIPPING OF 
              A NAVY SHIP WITH A VERSION OF THE 155-MILLIMETER ADVANCED 
              GUN SYSTEM.

    (a) Feasibility Assessment Required.--(1) The Secretary of the Navy 
shall conduct an assessment of the feasibility of the expedited 
equipping of a Navy ship in active or inactive service with a version 
of the 155-millimeter Advanced Gun System that is being developed for 
the DD(X) next generation, multi-mission, land attack surface combatant 
vessel.
    (2) The assessment shall include an analysis of--
        (A) the actions required to achieve such equipping and the 
    technical and programmatic risks associated with those actions;
        (B) the plan, schedule, and funding required to achieve such 
    equipping; and
        (C) the effect (if any) that such equipping might have on the 
    development program and schedule for the DD(X) vessel.
    (b) Equipping on Expedited Schedule.--The schedule to be considered 
in the assessment under subsection (a) shall provide for equipping of a 
ship with a version of the 155-millimeter Advanced Gun System on an 
expedited schedule that is consistent with the achievement of safety of 
operation, but not later than October 1, 2006.
    (c) Report Required.--The Secretary shall submit to the 
congressional defense committees a report on the results of the 
assessment under subsection (a). The report shall be submitted at the 
same time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code.

SEC. 1024. REPORT ON INITIATIVES TO INCREASE OPERATIONAL DAYS OF NAVY 
              SHIPS.

    (a) Requirement for Report on Initiatives.--(1) The Under Secretary 
of Defense for Acquisition, Technology, and Logistics shall submit to 
the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives a report on Department 
of Defense initiatives to increase the number of operational days of 
Navy ships as described in subsection (b).
    (2) The report shall cover the ongoing Department of Defense 
initiatives as well as any potential initiatives that are under 
consideration within the Department of Defense.
    (b) Initiatives Within Limits of Existing Fleet and Deployment 
Policy.--In the report, the Under Secretary shall assess the 
feasibility and identify the projected effects of conducting 
initiatives that have the potential to increase the number of 
operational days of Navy ships available to the commanders-in-chief of 
the regional unified combatant commands without increasing the number 
of Navy ships and without increasing the routine lengths of deployments 
of Navy ships above six months.
    (c) Required Focus Areas.--The report shall address, at a minimum, 
the following focus areas:
        (1) Assignment of additional ships, including submarines, to 
    home ports closer to the areas of operation for the ships (known as 
    ``forward homeporting'').
        (2) Assignment of ships to remain in a forward area of 
    operations, together with rotation of crews for each ship so 
    assigned.
        (3) Retention of ships for use until the end of the full 
    service life, together with investment of the funds necessary to 
    support retention to that extent.
        (4) Prepositioning of additional ships with, under normal 
    circumstances, small crews in a forward area of operations.
    (d) Ship Maintenance.--The report shall include an assessment of 
how routine programmed ship maintenance would be accomplished for Navy 
ships that would remain in a forward area of operations.
    (e) Time for Submittal.--The report shall be submitted at the same 
time that the President submits the budget for fiscal year 2004 to 
Congress under section 1105(a) of title 31, United States Code.

SEC. 1025. SHIP COMBAT SYSTEM INDUSTRIAL BASE.

    (a) Review.--The Secretary of Defense shall conduct a review of the 
effect of the contract award announced on April 29, 2002, for the lead 
design agent for the DD(X) ship program on the industrial base for ship 
combat system development, including the industrial base for each of 
the following: ship systems integration, radar, electronic warfare, and 
launch systems.
    (b) Report Required.--Not later than March 31, 2003, the Secretary 
shall submit to the congressional defense committees a report based on 
the review under subsection (a). The report shall include the 
following:
        (1) The Secretary's assessment of the effect of the contract 
    award referred to in that subsection on ship combat system 
    development and on the associated industrial base.
        (2) A description of any actions that the Secretary proposes to 
    ensure future competition in the ship combat system development and 
    industrial base.

SEC. 1026. SENSE OF CONGRESS CONCERNING AIRCRAFT CARRIER FORCE 
              STRUCTURE.

    (a) Findings.--Congress makes the following findings:
        (1) The aircraft carrier has been an integral component in 
    Operation Enduring Freedom and in the homeland defense mission of 
    Operation Noble Eagle beginning on September 11, 2001. The aircraft 
    carriers that have participated in Operation Enduring Freedom, as 
    of May 1, 2002, are the USS Enterprise (CVN-65), the USS Carl 
    Vinson (CVN-70), the USS Kitty Hawk (CV-63), the USS Theodore 
    Roosevelt (CVN-71), the USS John C. Stennis (CVN-74), and the USS 
    John F. Kennedy (CV-67). The aircraft carriers that have 
    participated in Operation Noble Eagle, as of May 1, 2002, are the 
    USS George Washington (CVN-73), the USS John F. Kennedy (CV-67), 
    and the USS John C. Stennis (CVN-74).
        (2) Since 1945, the United States has built 172 bases overseas, 
    of which only 24 are currently in use.
        (3) The aircraft carrier provides an independent base of 
    operations should no land base be available for aircraft, with 
    carrier air wings providing the United States sea-based forward-
    deployed offensive strike capability.
        (4) The aircraft carrier is an essential component of the Navy.
        (5) The naval tactical aircraft modernization programs are 
    proceeding on schedule.
        (6) As established by the Navy, the United States requires the 
    service of 15 aircraft carriers to completely fulfill all the naval 
    commitments assigned to the Navy without gapping carrier presence.
    (b) Sense of Congress.--It is the sense of Congress that the number 
of aircraft carriers of the Navy in active service should not be less 
than 12.
    (c) Operation Enduring Freedom and Operation Noble Eagle 
Commendation.--Congress hereby commends the military and civilian 
personnel who have participated in Operation Enduring Freedom and 
Operation Noble Eagle.

SEC. 1027. CONVEYANCE, NAVY DRYDOCK, PORTLAND, OREGON.

    (a) Conveyance Authorized.--The Secretary of the Navy may sell Navy 
Drydock No. YFD-69, located in Portland, Oregon, to Portland Shipyard, 
LLC, which is the current user of the drydock.
    (b) Condition of Conveyance.--The conveyance under subsection (a) 
shall be subject to the condition that the purchaser agree to retain 
the drydock on Swan Island in Portland, Oregon, until at least 
September 30, 2007.
    (c) Consideration.--As consideration for the conveyance of the 
drydock under subsection (a), the purchaser shall pay to the Secretary 
an amount equal to the fair market value of the drydock at the time of 
the conveyance, as determined by the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

                     Subtitle C--Strategic Matters

SEC. 1031. STRATEGIC FORCE STRUCTURE PLAN FOR NUCLEAR WEAPONS AND 
              DELIVERY SYSTEMS.

    (a) Plan Required.--The Secretary of Defense and the Secretary of 
Energy shall jointly prepare a plan for the United States strategic 
force structure for nuclear weapons and nuclear weapons delivery 
systems for the period of fiscal years from 2003 through 2012. The plan 
shall--
        (1) define the range of missions assigned to strategic nuclear 
    forces in the national defense strategy consistent with--
            (A) the Quadrennial Defense Review dated September 30, 
        2001, under section 118 of title 10, United States Code;
            (B) the Nuclear Posture Review dated December 2001 under 
        section 1041 of the Floyd D. Spence National Defense 
        Authorization Act for Fiscal Year 2001 (as enacted into law by 
        Public Law 106-398; 114 Stat. 1654A-262); and
            (C) other relevant planning documents;
        (2) delineate a baseline strategic force structure for such 
    weapons and systems over such period consistent with such Nuclear 
    Posture Review;
        (3) define sufficient force structure, force modernization and 
    life extension plans, infrastructure, and other elements of the 
    defense program of the United States associated with such weapons 
    and systems that would be required to execute successfully the full 
    range of missions defined under paragraph (1);
        (4) identify the budget plan that would be required to provide 
    sufficient resources to execute successfully the full range of 
    missions using such force structure called for in that national 
    defense strategy; and
        (5)(A) evaluate options for achieving, prior to fiscal year 
    2012, a posture under which the United States maintains a number of 
    operationally deployed nuclear warheads at a level of from 1,700 to 
    2,200 such warheads, as outlined in the Nuclear Posture Review 
    referred to in paragraph (1)(B); and
        (B) contain an assessment of the advantages and disadvantages 
    of options for achieving such posture as early as 2007, including 
    effects on cost, the dismantlement workforce, and any other 
    affected matter.
    (b) Report.--Not later than March 1, 2003, the Secretary of Defense 
and the Secretary of Energy shall submit a report on the plan to the 
congressional defense committees.

SEC. 1032. ANNUAL REPORT ON WEAPONS TO DEFEAT HARDENED AND DEEPLY 
              BURIED TARGETS.

    (a) Annual Report.--Not later than April 1 of each year, the 
Secretary of Defense, the Secretary of Energy, and the Director of 
Central Intelligence shall jointly submit to the congressional defense 
committees, the Select Committee on Intelligence of the Senate, and the 
Permanent Select Committee on Intelligence of the House of 
Representatives a report on the research and development, procurement, 
and other activities undertaken during the preceding fiscal year by the 
Department of Defense, the Department of Energy, and the intelligence 
community to develop weapons to defeat hardened and deeply buried 
targets.
    (b) Report Elements.--The report for a fiscal year under subsection 
(a) shall--
        (1) include a discussion of the integration and 
    interoperability of the activities referred to in that subsection 
    that were undertaken during that fiscal year, including a 
    discussion of the relevance of such activities to applicable 
    recommendations by the Chairman of the Joint Chiefs of Staff, 
    assisted under section 181(b) of title 10, United States Code, by 
    the Joint Requirements Oversight Council; and
        (2) set forth separately a description of the activities 
    referred to in that subsection, if any, that were undertaken during 
    such fiscal year by each element of--
            (A) the Department of Defense;
            (B) the Department of Energy; and
            (C) the intelligence community.
    (c) Definition.--In this section, the term ``intelligence 
community'' has the meaning given such term in section 3(4) of the 
National Security Act of 1947 (50 U.S.C. 401a(4)).
    (d) Termination.--No report is required under this section after 
the submission of the report that is due on April 1, 2007.

SEC. 1033. REPORT ON EFFECTS OF NUCLEAR EARTH-PENETRATOR WEAPON AND 
              OTHER WEAPONS.

    (a) National Academy of Sciences Study.--The Secretary of Defense 
shall request the National Academy of Sciences to conduct a study and 
prepare a report on the following:
        (1) The anticipated short-term effects and long-term effects of 
    the use by the United States of a nuclear earth-penetrator weapon 
    on the target area, including the effects on civilian populations 
    in proximity to the target area at the time of or after such use 
    and the effects on United States military personnel who after such 
    use carry out operations or battle damage assessments in the target 
    area.
        (2) The anticipated short-term and long-term effects on 
    civilian population in proximity to a target area--
            (A) if a non-penetrating nuclear weapon is used to attack a 
        hard or deeply-buried target; and
            (B) if a conventional high-explosive weapon is used to 
        attack an adversary's facilities for storage or production of 
        weapons of mass destruction and, as a result of such attack, 
        radioactive, nuclear, biological, or chemical weapons 
        materials, agents, or other contaminants are released or spread 
        into populated areas.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit to Congress the 
report under subsection (a), together with any comments the Secretary 
may consider appropriate on the report. The report shall be submitted 
in unclassified form to the maximum extent possible, with a classified 
annex if needed.

                          Subtitle D--Reports

SEC. 1041. REPEAL AND MODIFICATION OF VARIOUS REPORTING REQUIREMENTS 
              APPLICABLE TO THE DEPARTMENT OF DEFENSE.

    (a) Provisions of Title 10, United States Code.--Title 10, United 
States Code, is amended as follows:
        (1)(A) Section 183 is repealed.
        (B) The table of sections at the beginning of chapter 7 is 
    amended by striking the item relating to section 183.
        (2)(A) Section 230 is repealed.
        (B) The table of sections at the beginning of chapter 9 is 
    amended by striking the items relating to section 230.
        (3) Section 526 is amended by striking subsection (c).
        (4) Section 721(d) is amended--
            (A) by striking paragraph (2); and
            (B) by striking ``(1)'' before ``If an officer''.
        (5) Section 1095(g) is amended--
            (A) by striking paragraph (2); and
            (B) by striking ``(1)'' after ``(g)''.
        (6) Section 1798 is amended by striking subsection (d).
        (7) Section 1799 is amended by striking subsection (d).
        (8) Section 2220 is amended--
            (A) by striking subsections (b) and (c);
            (B) by striking ``(1)'' after ``Establishment of Goals.--
        ''; and
            (C) by striking ``(2) The'' and inserting ``(b) Evaluation 
        of Cost Goals.--The''.
        (9) Section 2350a(g) is amended by striking paragraph (4).
        (10) Section 2350f is amended by striking subsection (c).
        (11) Section 2350k is amended by striking subsection (d).
        (12) Section 2367(d) is amended by striking ``Effort.--(1) In 
    the'' and all that follows through ``(2) After the close of'' and 
    inserting ``Effort.--After the close of''.
        (13) Section 2391 is amended by striking subsection (c).
        (14) Section 2486(b)(12) is amended by striking ``, except 
    that'' and all that follows and inserting the following: ``, except 
    that the Secretary shall notify Congress of any addition of, or 
    change in, a merchandise category under this paragraph.''.
        (15) Section 2492 is amended by striking subsection (c) and 
    inserting the following:
    ``(c) Notification of Conditions Necessitating Restrictions.--The 
Secretary of Defense shall notify Congress of any change proposed or 
made to any of the host nation laws or any of the treaty obligations of 
the United States, and any changed conditions within host nations, if 
the change would necessitate the use of quantity or other restrictions 
on purchases in commissary and exchange stores located outside the 
United States.''.
        (16) Section 2537(a) is amended by striking ``$100,000'' and 
    inserting ``$10,000,000''.
        (17) Section 2611 is amended by striking subsection (e).
        (18) Section 2667(d) is amended by striking paragraph (3).
        (19) Section 4416 is amended by striking subsection (f).
        (20) Section 5721(f) is amended--
            (A) by striking paragraph (2); and
            (B) by striking ``(1)'' after the subsection heading.
    (b) National Defense Authorization Act for Fiscal Year 1995.--
Section 553(b) of the National Defense Authorization Act for Fiscal 
Year 1995 (Public Law 103-337; 108 Stat. 2772; 10 U.S.C. 4331 note) is 
amended by striking the last sentence.
    (c) Ballistic Missile Defense Act of 1995.--Section 234 of the 
Ballistic Missile Defense Act of 1995 (subtitle C of title II of Public 
Law 104-106; 10 U.S.C. 2431 note) is amended by striking subsection 
(f).

SEC. 1042. REQUIREMENT THAT DEPARTMENT OF DEFENSE REPORTS TO CONGRESS 
              BE ACCOMPANIED BY ELECTRONIC VERSION.

    Section 480(a) of title 10, United States Code, is amended by 
striking ``shall, upon request'' and all that follows through ``(or 
each'' and inserting ``shall provide to Congress (or''.

SEC. 1043. ANNUAL REPORT ON THE CONDUCT OF MILITARY OPERATIONS 
              CONDUCTED AS PART OF OPERATION ENDURING FREEDOM.

    (a) Reports Required.--(1) The Secretary of Defense shall submit to 
the congressional committees specified in subsection (d) an annual 
report on the conduct of military operations conducted as part of 
Operation Enduring Freedom. The first report, which shall include a 
definition of the military operations carried out as part of Operation 
Enduring Freedom, shall be submitted not later than June 15, 2003. 
Subsequent reports shall be submitted not later than June 15 each year, 
and the final report shall be submitted not later than 180 days after 
the date (as determined by the Secretary of Defense) of the cessation 
of hostilities undertaken as part of Operation Enduring Freedom.
    (2) Each report under this section shall be prepared in 
consultation with the Chairman of the Joint Chiefs of Staff, the 
commander of the United States Central Command, the Director of Central 
Intelligence, and such other officials as the Secretary considers 
appropriate.
    (3) Each such report shall be submitted in both a classified form 
and an unclassified form, as necessary.
    (b) Special Matters To Be Included.--Each report under this section 
shall include the following:
        (1) A discussion of the command, control, coordination, and 
    support relationship between United States special operations 
    forces and Central Intelligence Agency elements participating in 
    Operation Enduring Freedom and any lessons learned from the joint 
    conduct of operations by those forces and elements.
        (2) Recommendations to improve operational readiness and 
    effectiveness of these forces and elements.
    (c) Other Matters To Be Included.--Each report under this section 
shall include a discussion, with a particular emphasis on 
accomplishments and shortcomings, of the following matters with respect 
to Operation Enduring Freedom:
        (1) The political and military objectives of the United States.
        (2) The military strategy of the United States to achieve those 
    political and military objectives.
        (3) The concept of operations, including any new operational 
    concepts, for the operation.
        (4) The benefits and disadvantages of operating with local 
    opposition forces.
        (5) The benefits and disadvantages of operating in a coalition 
    with the military forces of allied and friendly nations.
        (6) The cooperation of nations in the region for overflight, 
    basing, command and control, and logistic and other support.
        (7) The conduct of relief operations both during and after the 
    period of hostilities.
        (8) The conduct of close air support (CAS), particularly with 
    respect to the timeliness, efficiency, and effectiveness of such 
    support.
        (9) The use of unmanned aerial vehicles for intelligence, 
    surveillance, reconnaissance, and combat support to operational 
    forces.
        (10) The use and performance of United States and coalition 
    military equipment, weapon systems, and munitions.
        (11) The effectiveness of reserve component forces, including 
    their use and performance in the theater of operations.
        (12) The importance and effectiveness of the International 
    Security Assistance Force.
        (13) The importance and effectiveness of United States civil 
    affairs forces.
        (14) The anticipated duration of the United States military 
    presence in Afghanistan.
        (15) The most critical lessons learned that could lead to long-
    term doctrinal, organizational, and technological changes.
    (d) Congressional Committees.--The committees referred to in 
subsection (a)(1) are the following:
        (1) The Committee on Armed Services and the Select Committee on 
    Intelligence of the Senate.
        (2) The Committee on Armed Services and the Permanent Select 
    Committee on Intelligence of the House of Representatives.

SEC. 1044. REPORT ON EFFORTS TO ENSURE ADEQUACY OF FIRE FIGHTING STAFFS 
              AT MILITARY INSTALLATIONS.

    Not later than May 31, 2003, the Secretary of Defense shall submit 
to Congress a report on the actions being undertaken to ensure that the 
fire fighting staffs at military installations are adequate under 
applicable Department of Defense regulations.

SEC. 1045. REPORT ON DESIGNATION OF CERTAIN LOUISIANA HIGHWAY AS 
              DEFENSE ACCESS ROAD.

    Not later than March 1, 2003, the Secretary of the Army shall 
submit to the congressional defense committees a report containing the 
results of a study on the advisability of designating Louisiana Highway 
28 between Alexandria, Louisiana, and Leesville, Louisiana, a road 
providing access to the Joint Readiness Training Center, Louisiana, and 
to Fort Polk, Louisiana, as a defense access road for purposes of 
section 210 of title 23, United States Code.

             Subtitle E--Extension of Expiring Authorities

SEC. 1051. EXTENSION OF AUTHORITY FOR SECRETARY OF DEFENSE TO SELL 
              AIRCRAFT AND AIRCRAFT PARTS FOR USE IN RESPONDING TO OIL 
              SPILLS.

    (a) Four-Year Extension.--Section 740 of the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (Public Law 
106-181; 114 Stat. 173; 10 U.S.C. 2576 note) is amended--
        (1) in subsection (a)(1), by striking ``, during the period 
    beginning on the date of the enactment of this Act and ending 
    September 30, 2002,''; and
        (2) by adding at the end the following new subsection:
    ``(i) Expiration of Authority.--The authority to sell aircraft and 
aircraft parts under this section expires on September 30, 2006.''.
    (b) Additional Report.--Subsection (f) of such section is amended 
by striking ``March 31, 2002'' and inserting ``March 31, 2006''.

SEC. 1052. SIX-MONTH EXTENSION OF EXPIRING GOVERNMENTWIDE INFORMATION 
              SECURITY REQUIREMENTS; CONTINUED APPLICABILITY OF 
              EXPIRING GOVERNMENTWIDE INFORMATION SECURITY REQUIREMENTS 
              TO THE DEPARTMENT OF DEFENSE.

    (a) Six-Month Extension of Expiring Governmentwide Requirements.--
Section 3536 of title 44, United States Code, is amended to read as 
follows:

``Sec. 3536. Expiration

    ``This subchapter shall not be in effect after May 31, 2003.''.
    (b) Continued Applicability of Expiring Governmentwide Requirements 
to Department of Defense.--(1) Chapter 131 of title 10, United States 
Code, is amended by inserting after section 2224 the following new 
section:

``Sec. 2224a. Information security: continued applicability of expiring 
            Governmentwide requirements to the Department of Defense

    ``(a) In General.--The provisions of subchapter II of chapter 35 of 
title 44 shall continue to apply through September 30, 2004, with 
respect to the Department of Defense, notwithstanding the expiration of 
authority under section 3536 of such title.
    ``(b) Responsibilities.--In administering the provisions of 
subchapter II of chapter 35 of title 44 with respect to the Department 
of Defense after the expiration of authority under section 3536 of such 
title, the Secretary of Defense shall perform the duties set forth in 
that subchapter for the Director of the Office of Management and 
Budget.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2224 the 
following new item:

``2224a. Information security: continued applicability of expiring 
          Governmentwide requirements to the Department of Defense.''.

SEC. 1053. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF DEFENSE 
              TO ENGAGE IN COMMERCIAL ACTIVITIES AS SECURITY FOR 
              INTELLIGENCE COLLECTION ACTIVITIES ABROAD.

    Section 431(a) of title 10, United States Code, is amended by 
striking ``December 31, 2002'' and inserting ``December 31, 2004''.

                       Subtitle F--Other Matters

SEC. 1061. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE AUTHORIZATION 
              LEGISLATIVE PROPOSAL.

    (a) In General.--Chapter 2 of title 10, United States Code, is 
amended by inserting after section 113 the following new section:

``Sec. 113a. Transmission of annual defense authorization request

    ``(a) Time for Transmittal.--The Secretary of Defense shall 
transmit to Congress the annual defense authorization request for a 
fiscal year during the first 30 days after the date on which the 
President transmits to Congress the budget for that fiscal year 
pursuant to section 1105 of title 31.
    ``(b) Defense Authorization Request Defined.--In this section, the 
term `defense authorization request', with respect to a fiscal year, 
means a legislative proposal submitted to Congress for the enactment of 
the following:
        ``(1) Authorizations of appropriations for that fiscal year, as 
    required by section 114 of this title.
        ``(2) Personnel strengths for that fiscal year, as required by 
    section 115 of this title.
        ``(3) Any other matter that is proposed by the Secretary of 
    Defense to be enacted as part of the annual defense authorization 
    bill for that fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
113 the following new item:

``113a. Transmission of annual defense authorization request.''.

SEC. 1062. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
        (1) Section 153 is amended--
            (A) by inserting ``(a) Planning; Advice; Policy 
        Formulation.--'' at the beginning of the text; and
            (B) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.
        (2) Section 624(d)(1) is amended by striking ``subsection 
    (d)(2)'' in the second sentence and inserting ``paragraph (2)''.
        (3) Section 661(b)(2) is amended by striking ``the date of the 
    enactment of the National Defense Authorization Act for Fiscal Year 
    2002'' and inserting ``December 28, 2001,''.
        (4) Section 662(a)(2) is amended--
            (A) in subparagraph (A), by striking ``during the three-
        year period beginning on the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 2002,'' and 
        inserting ``during the period beginning on December 28, 2001, 
        and ending on December 27, 2004,''; and
            (B) in subparagraph (B), by striking ``after the end of the 
        period specified in subparagraph (A)'' and inserting ``after 
        December 27, 2004''.
        (5) Section 663(e)(2) is amended by striking ``Armed Forces 
    Staff College'' and inserting ``Joint Forces Staff College''.
        (6) Section 1451(c)(3) is amended by striking ``section'' 
    before ``clause''.
        (7) Section 2162(b)(2) is amended by striking ``the date of the 
    enactment of this paragraph'' and inserting ``December 28, 2001,''.
        (8) Section 2330(c) is amended by inserting a comma after ``a 
    task order''.
        (9) Section 2399(a)(2) is amended--
            (A) in the matter preceding subparagraph (A), by striking 
        ``means--'' and inserting ``means a conventional weapons system 
        that--''; and
            (B) in subparagraph (A), by striking ``a conventional 
        weapons system that''.
        (10)(A) Section 2410h is transferred to the end of subchapter 
    IV of chapter 87 and redesignated as section 1747.
        (B) The item relating to that section in the table of sections 
    at the beginning of chapter 141 is transferred to the end of the 
    table of sections at the beginning of subchapter IV of chapter 87 
    and amended to reflect the redesignation made by subparagraph (A).
        (11) Section 2676(a) is amended by inserting an open 
    parenthesis before ``41 U.S.C.''.
        (12) Section 2677 is amended by striking subsection (c).
        (13) Section 2680(e) is amended by striking ``the'' after ``the 
    Committee on'' the first place it appears.
        (14) Section 2815(b) is amended by striking ``for fiscal year 
    2003 and each fiscal year thereafter'' and inserting ``for any 
    fiscal year''.
        (15) Section 2828(b)(2) is amended by inserting ``time'' after 
    ``from time to''.
        (16) Sections 3755, 6257, and 8755, as added by section 8143(c) 
    of Public Law 107-248 (116 Stat. 1570), are amended by striking 
    ``the date of the enactment of this section'' and inserting 
    ``October 23, 2002''.
    (b) Title 14, United States Code.--Title 14, United States Code, is 
amended as follows:
        (1) Section 505, as added by section 8143(c)(4) of Public Law 
    107-248 (116 Stat. 1571), is amended by striking ``the date of the 
    enactment of this section'' and inserting ``October 23, 2002''.
        (2) Section 516(c) is amended by striking ``his section'' and 
    inserting ``this section''.
    (c) Title 37, United States Code.--Title 37, United States Code, is 
amended as follows:
        (1) Section 302j(a) is amended by striking ``subsection (c)'' 
    and inserting ``subsection (d)''.
        (2) Section 324(b) is amended by striking ``(1)'' before ``The 
    Secretary''.
    (d) Public Law 107-248.--Section 8118(a) of Public Law 107-248 (116 
Stat. 1565) is amended by striking ``subsection (i)'' and inserting 
``subsection (j)''.
    (e) Public Law 107-217.--Effective as if included therein as 
originally enacted, section 3(b) of Public Law 107-217 is amended--
        (1) in paragraph (8) (116 Stat. 1295), by inserting ``the 
    second place it appears'' before the semicolon; and
        (2) in paragraph (34) (116 Stat. 1298), by striking ``section 
    7545(a)'' and inserting ``section 7545(c)''.
    (f) Public Law 107-107.--Effective as of December 28, 2001, and as 
if included therein as enacted, the National Defense Authorization Act 
for Fiscal Year 2002 (Public Law 107-107) is amended as follows:
        (1) Section 602(a)(2) (115 Stat. 1132) is amended by striking 
    ``an'' in the first quoted matter.
        (2) Section 1212(a)(5) (115 Stat. 1249) is amended by inserting 
    ``in'' after the paragraph designation.
        (3) Section 1410(a)(3)(C) (115 Stat. 1266) by inserting ``both 
    places it appears'' before ``and inserting''.
        (4) Section 3007(d)(1)(C) (115 Stat. 1352) is amended by 
    striking ``2905(b)(7)(B)(iv)'' and inserting ``2905(b)(7)(C)(iv)''.
    (g) Public Law 106-398.--Effective as of October 30, 2000, and as 
if included therein as enacted, the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398) is amended as follows:
        (1) Section 577(b)(2) (114 Stat. 1654A-140) is amended by 
    striking ``Federal'' in the quoted matter and inserting 
    ``Department of Defense''.
        (2) Section 612(c)(4)(B) (114 Stat. 1654A-150) is amended by 
    striking the comma at the end of the first quoted matter.
    (h) Public Law 106-246.--Section 136 of Public Law 106-246 (114 
Stat. 520) is amended--
        (1) in subsection (d)(7), by striking subparagraphs (B) and (C) 
    and inserting the following new subparagraphs:
        ``(B) Section 1302 of title 40, United States Code.
        ``(C) Subtitle I of title 40, United States Code.''; and
        (2) in subsection (e)(3), by striking subparagraph (B) and 
    inserting the following new subparagraph:
        ``(B) Subtitle I of title 40, United States Code.''.
    (i) Public Law 106-181.--Section 740(a)(1) of the Wendell H. Ford 
Aviation Investment and Reform Act for the 21st Century (10 U.S.C. 2576 
note) is amended by striking ``section 202 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 483)'' and inserting 
``subchapter II of chapter 5 of title 40, United States Code,''.
    (j) Public Law 106-65.--The National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65) is amended as follows:
        (1) Section 573(b) (10 U.S.C. 513 note) is amended by inserting 
    a period at the end of paragraph (2).
        (2) Section 1305(6) (22 U.S.C. 5952 note) is amended by 
    striking the first period after ``facility''.
    (k) Public Law 104-307.--Section 2(a)(1) of the Wildfire 
Suppression Aircraft Transfer Act of 1996 (10 U.S.C. 2576 note) is 
amended by striking ``section 202 of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 483)'' and inserting 
``subchapter II of chapter 5 of title 40, United States Code,''.
    (l) Public Law 103-337.--Section 2814 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337) is amended 
by striking ``the Public Buildings Act of 1959 (40 U.S.C. 601 et seq.) 
and the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 471 et seq.)'' and inserting ``chapter 5 or 33 of title 40, 
United States Code''.
    (m) Public Law 101-510.--The National Defense Authorization Act for 
Fiscal Year 1991 (Public Law 101-510) is amended as follows:
        (1) Section 2905(b)(1) (10 U.S.C. 2687 note) is amended--
            (A) in subparagraph (A), by striking ``section 202 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 483)'' and inserting ``subchapter II of chapter 5 of 
        title 40, United States Code''; and
            (B) in subparagraph (B), by striking ``section 203 of that 
        Act (40 U.S.C. 484)'' and inserting ``subchapter III of chapter 
        5 of title 40, United States Code''.
        (2) Section 2905(b)(4)(F) is amended by striking ``sections 202 
    and 203 of the Federal Property and Administrative Services Act of 
    1949 (40 U.S.C. 483, 484)'' and inserting ``subchapters II and III 
    of chapter 5 of title 40, United States Code,''.
        (3) Section 2905(b)(7) is amended by striking ``section 203(k) 
    of the Federal Property and Administrative Services Act of 1949 (40 
    U.S.C. 484(k))'' in subparagraphs (K)(v), (L)(iv)(V), and (P) and 
    inserting ``section 550 of title 40, United States Code,''.
        (4) Section 2926(d)(2) is amended by striking ``title IX of the 
    Federal Property and Administrative Services Act (Public Law 92-
    582; 40 U.S.C. 541 et seq., as amended)'' and inserting ``chapter 
    11 of title 40, United States Code''.
    (n) Public Law 100-526.--The Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100-526) is amended as 
follows:
        (1) Section 204(b)(1) (10 U.S.C. 2687 note) is amended--
            (A) in subparagraph (A), by striking ``section 202 of the 
        Federal Property and Administrative Services Act of 1949 (40 
        U.S.C. 483)'' and inserting ``subchapter II of chapter 5 of 
        title 40, United States Code''; and
            (B) in subparagraph (B), by striking ``section 203 of that 
        Act (40 U.S.C. 484)'' and inserting ``subchapter III of chapter 
        5 of title 40, United States Code''.
        (2) Section 204(b)(4)(F) is amended by striking ``sections 202 
    and 203 of the Federal Property and Administrative Services Act of 
    1949 (40 U.S.C. 483, 484)'' and inserting ``subchapters II and III 
    of chapter 5 of title 40, United States Code,''.
    (o) Other Laws.--(1) Section 502(a) of the National Emergencies Act 
(50 U.S.C. 1651(a)) is amended by striking paragraph (2) and 
redesignating paragraphs (3) through (7) as paragraphs (1) through (5), 
respectively.
    (2) Section 10(b)(8) of the Military Selective Service Act (50 
U.S.C. App. 460(b)(8)) is amended by striking ``Public Law 26'' and all 
that follows through the period at the end of the paragraph and 
inserting ``the Act of March 31, 1947 (50 U.S.C. App. 321 et seq.).''.
    (3) The Defense Production Act of 1950 is amended in both section 
305(i) and section 306(j) (50 U.S.C. App. 2095(i), 2096(j))--
        (A) in the first sentence, by striking ``the Act entitled'' and 
    all that follows through the period at the end of the sentence and 
    inserting ``subchapter IV of chapter 31 of title 40, United States 
    Code.''; and
        (B) in the last sentence, by striking ``and section 276(c) of 
    title 40''.

SEC. 1063. USE FOR LAW ENFORCEMENT PURPOSES OF DNA SAMPLES MAINTAINED 
              BY DEPARTMENT OF DEFENSE FOR IDENTIFICATION OF HUMAN 
              REMAINS.

    (a) In General.--Chapter 80 of title 10, United States Code, is 
amended by inserting after section 1565 the following new section:

``Sec. 1565a. DNA samples maintained for identification of human 
            remains: use for law enforcement purposes

    ``(a) Compliance with Court Order.--(1) Subject to paragraph (2), 
if a valid order of a Federal court (or military judge) so requires, an 
element of the Department of Defense that maintains a repository of DNA 
samples for the purpose of identification of human remains shall make 
available, for the purpose specified in subsection (b), such DNA 
samples on such terms and conditions as such court (or military judge) 
directs.
    ``(2) A DNA sample with respect to an individual shall be provided 
under paragraph (1) in a manner that does not compromise the ability of 
the Department of Defense to maintain a sample with respect to that 
individual for the purpose of identification of human remains.
    ``(b) Covered Purpose.--The purpose referred to in subsection (a) 
is the purpose of an investigation or prosecution of a felony, or any 
sexual offense, for which no other source of DNA information is 
reasonably available.
    ``(c) Definition.--In this section, the term `DNA sample' has the 
meaning given such term in section 1565(c) of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
1565 the following new item:

``1565a. DNA samples maintained for identification of human remains: use 
          for law enforcement purposes.''.

SEC. 1064. ENHANCED AUTHORITY TO OBTAIN FOREIGN LANGUAGE SERVICES 
              DURING PERIODS OF EMERGENCY.

    (a) National Foreign Language Skills Registry.--(1) Chapter 81 of 
title 10, United States Code, is amended by inserting after section 
1596a the following new section:

``Sec. 1596b. Foreign language proficiency: National Foreign Language 
            Skills Registry

    ``(a) Establishment.--(1) The Secretary of Defense may establish 
and maintain a registry of persons who--
        ``(A) have proficiency in one or more critical foreign 
    languages;
        ``(B) are willing to provide linguistic services to the United 
    States in the interests of national security during war or a 
    national emergency; and
        ``(C) meet the eligibility requirements of subsection (b).
    ``(2) The registry shall be known as the `National Foreign Language 
Skills Registry' (in this section referred to as the `Registry').
    ``(b) Eligible Persons.--To be eligible for listing on the 
Registry, a person--
        ``(1) must be--
            ``(A) a national of the United States (as defined in 
        section 101(a)(22) of the Immigration and Nationality Act (8 
        U.S.C. 1101(a)(22))); or
            ``(B) an alien lawfully admitted for permanent residence 
        (as defined in section 101(a)(20) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(20)));
        ``(2) shall express willingness, in a form and manner 
    prescribed by the Secretary--
            ``(A) to provide linguistic services for a foreign language 
        as described in subsection (a); and
            ``(B) to be listed on the Registry; and
        ``(3) shall meet such language proficiency and other selection 
    criteria as may be prescribed by the Secretary.
    ``(c) Registered Information.--The Registry shall consist of the 
following:
        ``(1) The names of eligible persons selected by the Secretary 
    for listing on the Registry.
        ``(2) Such other information on such persons as the Secretary 
    determines pertinent to the use of such persons to provide 
    linguistic services as described in subsection (a).
    ``(d) Protection of Privacy.--The Secretary may withhold from 
public disclosure the information maintained in the Registry in 
accordance with section 552a of title 5.
    ``(e) Designation of Critical Foreign Languages.--The Secretary 
shall designate those languages that are critical foreign languages for 
the purposes of this section. The Secretary shall make such a 
designation for any foreign language for which there is a shortage of 
experts in translation or interpretation available to meet requirements 
of the Secretary or of the head of any other department or agency of 
the United States for translation or interpretation in the national 
security interests of the United States.
    ``(f) Linguistic Services Defined.--In this section, the term 
`linguistic services' means translation or interpretation of 
communication in a foreign language.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after section 1596a the following new item:

``1596b. Foreign language proficiency: National Foreign Language Skills 
          Registry.''.

    (b) Authority To Accept Voluntary Translation and Interpretation 
Services.--Section 1588(a) of title 10, United States Code, is amended 
by adding after paragraph (6), as added by section 553, the following 
new paragraph:
        ``(7) Voluntary translation or interpretation services offered 
    with respect to a foreign language by a person (A) who is 
    registered for such foreign language on the National Foreign 
    Language Skills Registry under section 1596b of this title, or (B) 
    who otherwise is approved to provide voluntary translation or 
    interpretation services for national security purposes, as 
    determined by the Secretary of Defense.''.

SEC. 1065. REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

    (a) Authority.--Chapter 3 of title 10, United States Code, is 
amended by inserting after section 127a the following new section:

``Sec. 127b. Assistance in combating terrorism: rewards

    ``(a) Authority.--The Secretary of Defense may pay a monetary 
amount, or provide a payment-in-kind, to a person as a reward for 
providing United States Government personnel with information or 
nonlethal assistance that is beneficial to--
        ``(1) an operation or activity of the armed forces conducted 
    outside the United States against international terrorism; or
        ``(2) force protection of the armed forces.
    ``(b) Limitation.--The amount or value of a reward provided under 
this section may not exceed $200,000.
    ``(c) Delegation of Authority.--(1) The authority of the Secretary 
of Defense under subsection (a) may be delegated only--
        ``(A) to the Deputy Secretary of Defense and an Under Secretary 
    of Defense, without further redelegation; and
        ``(B) to the commander of a combatant command, but only for a 
    reward in an amount or with a value not in excess of $50,000.
    ``(2) A commander of a combatant command to whom authority to 
provide rewards under this section is delegated under paragraph (1) may 
further delegate that authority, but only for a reward in an amount or 
with a value not in excess of $2,500, except that such a delegation may 
be made to the commander's deputy commander without regard to such 
limitation.
    ``(d) Coordination.--(1) The Secretary of Defense shall prescribe 
policies and procedures for the offering and making of rewards under 
this section and otherwise for administering the authority under this 
section. Such polices and procedures shall be prescribed in 
consultation with the Secretary of State and the Attorney General and 
shall ensure that the making of a reward under this section does not 
duplicate or interfere with the payment of a reward authorized by the 
Secretary of State or the Attorney General.
    ``(2) The Secretary of Defense shall consult with the Secretary of 
State regarding the making of any reward under this section in an 
amount or with a value in excess of $100,000.
    ``(e) Persons Not Eligible.--The following persons are not eligible 
to receive a reward under this section:
        ``(1) A citizen of the United States.
        ``(2) An officer or employee of the United States.
        ``(3) An employee of a contractor of the United States.
    ``(f) Annual Report.--(1) Not later than December 1 of each year, 
the Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report on the 
administration of the rewards program under this section during the 
preceding fiscal year.
    ``(2) Each report for a fiscal year under this subsection shall 
include the following:
        ``(A) Information on the total amount expended during that 
    fiscal year to carry out the rewards program under this section 
    during that fiscal year.
        ``(B) Specification of the amount, if any, expended during that 
    fiscal year to publicize the availability of rewards under this 
    section.
        ``(C) With respect to each reward provided during that fiscal 
    year--
            ``(i) the amount or value of the reward and whether the 
        reward was provided as a monetary payment or in some other 
        form;
            ``(ii) the recipient of the reward; and
            ``(iii) a description of the information or assistance for 
        which the reward was paid, together with an assessment of the 
        significance and benefit of the information or assistance.
    ``(3) The Secretary may submit the report in classified form if the 
Secretary determines that it is necessary to do so.
    ``(g) Determinations by the Secretary.--A determination by the 
Secretary under this section is final and conclusive and is not subject 
to judicial review.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
127a the following new item:

``127b. Assistance in combating terrorism: rewards.''.

SEC. 1066. PROVISION OF SPACE AND SERVICES TO MILITARY WELFARE 
              SOCIETIES.

    (a) Authority To Provide Space and Services.--Chapter 152 of title 
10, United States Code, is amended by adding at the end the following 
new section:

``Sec. 2566. Space and services: provision to military welfare 
            societies

    ``(a) Authority To Provide Space and Services.--The Secretary of a 
military department may provide, without charge, space and services 
under the jurisdiction of that Secretary to a military welfare society.
    ``(b) Definitions.--In this section:
        ``(1) The term `military welfare society' means the following:
            ``(A) The Army Emergency Relief Society.
            ``(B) The Navy-Marine Corps Relief Society.
            ``(C) The Air Force Aid Society, Inc.
        ``(2) The term `services' includes lighting, heating, cooling, 
    electricity, office furniture, office machines and equipment, 
    telephone and other information technology services (including 
    installation of lines and equipment, connectivity, and other 
    associated services), and security systems (including installation 
    and other associated expenses).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2566. Space and services: provision to military welfare societies.''.

SEC. 1067. PREVENTION AND MITIGATION OF CORROSION OF MILITARY EQUIPMENT 
              AND INFRASTRUCTURE.

    (a) In General.--(1) Chapter 131 of title 10, United States Code, 
is amended by adding at the end the following new section:

``Sec. 2228. Military equipment and infrastructure: prevention and 
            mitigation of corrosion

    ``(a) Designation of Responsible Official or Organization.--The 
Secretary of Defense shall designate an officer or employee of the 
Department of Defense, or a standing board or committee of the 
Department of Defense, as the senior official or organization 
responsible in the Department to the Secretary of Defense (after the 
Under Secretary of Defense for Acquisition, Technology, and Logistics) 
for the prevention and mitigation of corrosion of the military 
equipment and infrastructure of the Department.
    ``(b) Duties.--(1) The official or organization designated under 
subsection (a) shall oversee and coordinate efforts throughout the 
Department of Defense to prevent and mitigate corrosion of the military 
equipment and infrastructure of the Department. The duties under this 
paragraph shall include the duties specified in paragraphs (2) through 
(5).
    ``(2) The designated official or organization shall develop and 
recommend any policy guidance on the prevention and mitigation of 
corrosion to be issued by the Secretary of Defense.
    ``(3) The designated official or organization shall review the 
programs and funding levels proposed by the Secretary of each military 
department during the annual internal Department of Defense budget 
review process as those programs and funding proposals relate to 
programs and funding for the prevention and mitigation of corrosion and 
shall submit to the Secretary of Defense recommendations regarding 
those programs and proposed funding levels.
    ``(4) The designated official or organization shall provide 
oversight and coordination of the efforts within the Department of 
Defense to prevent or mitigate corrosion during--
        ``(A) the design, acquisition, and maintenance of military 
    equipment; and
        ``(B) the design, construction, and maintenance of 
    infrastructure.
    ``(5) The designated official or organization shall monitor 
acquisition practices within the Department of Defense--
        ``(A) to ensure that the use of corrosion prevention 
    technologies and the application of corrosion prevention treatments 
    are fully considered during research and development in the 
    acquisition process; and
        ``(B) to ensure that, to the extent determined appropriate for 
    each acquisition program, such technologies and treatments are 
    incorporated into that program, particularly during the engineering 
    and design phases of the acquisition process.
    ``(c) Long-Term Strategy.--(1) The Secretary of Defense shall 
develop and implement a long-term strategy to reduce corrosion and the 
effects of corrosion on the military equipment and infrastructure of 
the Department of Defense.
    ``(2) The strategy under paragraph (1) shall include the following:
        ``(A) Expansion of the emphasis on corrosion prevention and 
    mitigation within the Department of Defense to include coverage of 
    infrastructure.
        ``(B) Application uniformly throughout the Department of 
    Defense of requirements and criteria for the testing and 
    certification of new corrosion-prevention technologies for 
    equipment and infrastructure with similar characteristics, similar 
    missions, or similar operating environments.
        ``(C) Implementation of programs, including supporting 
    databases, to ensure that a focused and coordinated approach is 
    taken throughout the Department of Defense to collect, review, 
    validate, and distribute information on proven methods and products 
    that are relevant to the prevention of corrosion of military 
    equipment and infrastructure.
        ``(D) Establishment of a coordinated research and development 
    program for the prevention and mitigation of corrosion for new and 
    existing military equipment and infrastructure that includes a plan 
    to transition new corrosion prevention technologies into 
    operational systems.
    ``(3) The strategy shall include, for the matters specified in 
paragraph (2), the following:
        ``(A) Policy guidance.
        ``(B) Performance measures and milestones.
        ``(C) An assessment of the necessary personnel and funding 
    necessary to accomplish the long-term strategy.
    ``(d) Definitions.--In this section:
        ``(1) The term `corrosion' means the deterioration of a 
    material or its properties due to a reaction of that material with 
    its chemical environment.
        ``(2) The term `military equipment' includes all weapon 
    systems, weapon platforms, vehicles, and munitions of the 
    Department of Defense, and the components of such items.
        ``(3) The term `infrastructure' includes all buildings, 
    structures, airfields, port facilities, surface and subterranean 
    utility systems, heating and cooling systems, fuel tanks, 
    pavements, and bridges.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``2228. Military equipment and infrastructure: prevention and mitigation 
          of corrosion.''.

    (b) Deadline for Designation of Responsible Official or 
Organization.--The Secretary of Defense shall designate an officer, 
employee, or standing board or committee of the Department of Defense 
under subsection (a) of section 2228 of title 10, United States Code, 
as added by subsection (a), not later than 90 days after the date of 
the enactment of this Act.
    (c) Interim Report.--When the President submits the budget for 
fiscal year 2004 to Congress pursuant to section 1105(a) of title 31, 
United States Code, the Secretary of Defense shall submit to Congress a 
report regarding the actions taken to that date under section 2228 of 
title 10, United States Code, as added by subsection (a). That report 
shall include the following:
        (1) A description of the organizational structure for the 
    personnel carrying out the responsibilities of the official or 
    organization designated under subsection (a) of that section with 
    respect to the prevention and mitigation of corrosion.
        (2) An outline for the long-term strategy for prevention and 
    mitigation of corrosion required by subsection (c) of that section 
    and milestones for development of that strategy.
    (d) Deadline for Long-Term Strategy.--The Secretary of Defense 
shall submit to Congress a report setting forth the long-term strategy 
required under subsection (c) of section 2228 of title 10, United 
States Code, as added by subsection (a), not later than one year after 
the date of the enactment of this Act.
    (e) GAO Review.--The Comptroller General shall monitor the 
implementation of the long-term strategy required under subsection (c) 
of section 2228 of title 10, United States Code, as added by subsection 
(a), and, not later than 18 months after the date of the enactment of 
this Act, shall submit to Congress an assessment of the extent to which 
that strategy has been implemented.

SEC. 1068. TRANSFER OF HISTORIC DF-9E PANTHER AIRCRAFT TO WOMEN 
              AIRFORCE SERVICE PILOTS MUSEUM.

    (a) Authority to Convey.--The Secretary of the Navy may convey, 
without consideration, to the Women Airforce Service Pilots Museum in 
Quartzsite, Arizona (in this section referred to as the ``W.A.S.P. 
Museum''), all right, title, and interest of the United States in and 
to a DF-9E Panther aircraft (Bureau Number 125316). The conveyance 
shall be made by means of a conditional deed of gift.
    (b) Condition of Aircraft.--The aircraft shall be conveyed under 
subsection (a) in its current unflyable, ``as is'' condition. The 
Secretary is not required to repair or alter the condition of the 
aircraft before conveying ownership of the aircraft.
    (c) Reverter Upon Breach of Conditions.--The Secretary shall 
include in the instrument of conveyance of the aircraft under 
subsection (a) the following conditions:
        (1) The W.A.S.P. Museum may not convey any ownership interest 
    in, or transfer possession of, the aircraft to any other party 
    without the prior approval of the Secretary.
        (2) If the Secretary determines at any time that the W.A.S.P. 
    Museum has conveyed an ownership interest in, or transferred 
    possession of, the aircraft to any other party without the prior 
    approval of the Secretary, all right, title, and interest in and to 
    the aircraft, including any repair or alteration of the aircraft, 
    shall revert to the United States, and the United States shall have 
    the right of immediate possession of the aircraft.
    (d) Conveyance at No Cost to the United States.--The conveyance of 
the aircraft under subsection (a) shall be made at no cost to the 
United States. Any costs associated with the conveyance, costs of 
determining compliance with subsection (b), and costs of operation and 
maintenance of the aircraft conveyed shall be borne by the W.A.S.P. 
Museum.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a conveyance 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 1069. INCREASE IN AMOUNT AUTHORIZED TO BE EXPENDED FOR DEPARTMENT 
              OF DEFENSE PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE 
              KOREAN WAR.

    Section 1083(f)(2) of the National Defense Authorization Act for 
Fiscal Year 1998 (10 U.S.C. 113 note) is amended by striking 
``$7,000,000'' and inserting ``$10,000,000''.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

Sec. 1101. Eligibility of Department of Defense nonappropriated fund 
          employees for long-term care insurance.
Sec. 1102. Extension of Department of Defense authority to make lump-sum 
          severance payments.
Sec. 1103. Continuation of Federal Employee Health Benefits Program 
          eligibility.
Sec. 1104. Certification for Department of Defense professional 
          accounting positions.

SEC. 1101. ELIGIBILITY OF DEPARTMENT OF DEFENSE NONAPPROPRIATED FUND 
              EMPLOYEES FOR LONG-TERM CARE INSURANCE.

    (a) In General.--Section 9001(1) of title 5, United States Code, is 
amended--
        (1) in subparagraph (B), by striking ``and'';
        (2) in subparagraph (C), by striking the comma at the end and 
    inserting ``; and''; and
        (3) by inserting after subparagraph (C) the following new 
    subparagraph:
            ``(D) an employee of a nonappropriated fund instrumentality 
        of the Department of Defense described in section 2105(c),''.
    (b) Discretionary Authority.--Section 9002 of such title is 
amended--
        (1) by redesignating subsections (b), (c), (d), and (e) as 
    subsections (c), (d), (e), and (f), respectively; and
        (2) by inserting after subsection (a) the following new 
    subsection (b):
    ``(b) Discretionary Authority Regarding Nonappropriated Fund 
Instrumentalities.--The Secretary of Defense may determine that a 
nonappropriated fund instrumentality of the Department of Defense is 
covered under this chapter or is covered under an alternative long-term 
care insurance program.''.

SEC. 1102. EXTENSION OF DEPARTMENT OF DEFENSE AUTHORITY TO MAKE LUMP-
              SUM SEVERANCE PAYMENTS.

    (a) In General.--Section 5595(i)(4) of title 5, United States Code, 
is amended by striking ``2003'' and inserting ``2006''.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the President shall submit to the Committees on 
Armed Services and on Governmental Affairs of the Senate and the 
Committees on Armed Services and on Government Reform of the House of 
Representatives a report, including recommendations, on whether the 
authority under section 5595(i) of title 5, United States Code, should 
be made permanent or expanded to be made Governmentwide.

SEC. 1103. CONTINUATION OF FEDERAL EMPLOYEE HEALTH BENEFITS PROGRAM 
              ELIGIBILITY.

    Paragraph (4)(B) of section 8905a(d) of title 5, United States 
Code, is amended--
        (1) in clause (i), by striking ``2003'' and inserting ``2006''; 
    and
        (2) in clause (ii)--
            (A) by striking ``2004'' and inserting ``2007''; and
            (B) by striking ``2003'' and inserting ``2006''.

SEC. 1104. CERTIFICATION FOR DEPARTMENT OF DEFENSE PROFESSIONAL 
              ACCOUNTING POSITIONS.

    (a) In General.--(1) Chapter 81 of title 10, United States Code, is 
amended by adding at the end the following new section:

``Sec. 1599d. Professional accounting positions: authority to prescribe 
            certification and credential standards

    ``(a) Authority To Prescribe Professional Certification 
Standards.--The Secretary of Defense may prescribe professional 
certification and credential standards for professional accounting 
positions within the Department of Defense. Any such standard shall be 
prescribed as a Department of Defense regulation.
    ``(b) Waiver Authority.--The Secretary may waive any standard 
prescribed under subsection (a) whenever the Secretary determines such 
a waiver to be appropriate.
    ``(c) Applicability.--A standard prescribed under subsection (a) 
shall not apply to any person employed by the Department of Defense 
before the standard is prescribed.
    ``(d) Report.--The Secretary of Defense shall submit to Congress a 
report on the Secretary's plans to provide training to appropriate 
Department of Defense personnel to meet any new professional and 
credential standards prescribed under subsection (a). Such report shall 
be prepared in conjunction with the Director of the Office of Personnel 
Management. Such a report shall be submitted not later than one year 
after the effective date of any regulations, or any revision to 
regulations, prescribed pursuant to subsection (a).
    ``(e) Definition.--In this section, the term `professional 
accounting position' means a position or group of positions in the GS-
510, GS-511, and GS-505 series that involves professional accounting 
work.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``1599d. Professional accounting positions: authority to prescribe 
          certification and credential standards.''.

    (b) Effective Date.--Standards established pursuant to section 
1599d of title 10, United States Code, as added by subsection (a), may 
take effect no sooner than 120 days after the date of the enactment of 
this Act.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

Sec. 1201. Authority to provide administrative services and support for 
          coalition liaison officers.
Sec. 1202. Authority to pay for certain travel of defense personnel of 
          countries participating in NATO Partnership for Peace program.
Sec. 1203. Limitation on funding for Joint Data Exchange Center in 
          Moscow.
Sec. 1204. Support of United Nations-sponsored efforts to inspect and 
          monitor Iraqi weapons activities.
Sec. 1205. Comprehensive annual report to Congress on coordination and 
          integration of all United States nonproliferation activities.
Sec. 1206. Report requirement regarding Russian proliferation to Iran 
          and other countries of proliferation concern.
Sec. 1207. Monitoring of implementation of 1979 agreement between the 
          United States and China on cooperation in science and 
          technology.
Sec. 1208. Extension of certain counterproliferation activities and 
          programs.
Sec. 1209. Semiannual report by Director of Central Intelligence on 
          contributions by foreign persons to efforts by countries of 
          proliferation concern to obtain weapons of mass destruction 
          and their delivery systems.
Sec. 1210. Report on feasibility and advisability of senior officer 
          exchanges between the Armed Forces of the United States and 
          the military forces of Taiwan.
Sec. 1211. Report on United States force structure in the Pacific. 

SEC. 1201. AUTHORITY TO PROVIDE ADMINISTRATIVE SERVICES AND SUPPORT FOR 
              COALITION LIAISON OFFICERS.

    (a) Authority.--(1) Chapter 53 of title 10, United States Code, is 
amended by inserting after section 1051 the following new section:

``Sec. 1051a. Coalition liaison officers: administrative services and 
            support; travel, subsistence, and other personal expenses

    ``(a) Authority.--The Secretary of Defense may provide 
administrative services and support for the performance of duties by a 
liaison officer of another nation involved in a coalition with the 
United States while the liaison officer is assigned temporarily to the 
headquarters of a combatant command, component command, or subordinate 
operational command of the United States in connection with the 
planning for, or conduct of, a coalition operation.
    ``(b) Travel and Subsistence Expenses.--(1) The Secretary may pay 
the expenses specified in paragraph (2) of a liaison officer of a 
developing country in connection with the assignment of that officer to 
the headquarters of a combatant command as described in subsection (a), 
if the assignment is requested by the commander of the combatant 
command.
    ``(2) Expenses of a liaison officer that may be paid under 
paragraph (1) in connection with an assignment described in that 
paragraph are the following:
        ``(A) Travel and subsistence expenses.
        ``(B) Personal expenses directly necessary to carry out the 
    duties of that officer in connection with that assignment.
    ``(c) Reimbursement.--To the extent that the Secretary determines 
appropriate, the Secretary may provide the services and support 
authorized by subsection (a) and the expenses authorized by subsection 
(b) with or without reimbursement from (or on behalf of) the 
recipients.
    ``(d) Definitions.--In this section:
        ``(1) The term `administrative services and support' includes 
    base or installation support services, office space, utilities, 
    copying services, fire and police protection, and computer support.
        ``(2) The term `coalition' means an ad hoc arrangement between 
    or among the United States and one or more other nations for common 
    action.
    ``(e) Expiration of Authority.--The authority under this section 
shall expire on September 30, 2005.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 1051 the 
following new item:

``1051a. Coalition liaison officers: administrative services and 
          support; travel, subsistence, and other personal expenses.''.

    (b) GAO Report.--Not later than March 1, 2005, the Comptroller 
General shall submit to the Committees on Armed Services of the Senate 
and House of Representatives a report providing an assessment of the 
implementation of section 1051a of title 10, United States Code, as 
added by subsection (a). The assessment shall include the following:
        (1) A description of the benefits to coalition operations of 
    the authority provided by that section.
        (2) A statement of the cost to the Department of Defense of the 
    use of the authority provided by that section.
        (3) A summary of activities carried out under the authority 
    provided by that section, including (A) the number of liaison 
    officers for whom administrative services and support or expenses 
    were provided under that authority and their countries of origin, 
    and (B) the type of services, support, and expenses provided.

SEC. 1202. AUTHORITY TO PAY FOR CERTAIN TRAVEL OF DEFENSE PERSONNEL OF 
              COUNTRIES PARTICIPATING IN NATO PARTNERSHIP FOR PEACE 
              PROGRAM.

    (a) Authority for Use of Funds.--Section 1051(b) of title 10, 
United States Code, is amended--
        (1) in paragraph (1), by striking ``paragraph (2)'' and 
    inserting ``paragraphs (2) and (3)'';
        (2) by redesignating paragraph (3) as paragraph (4); and
        (3) by inserting after paragraph (2) the following new 
    paragraph (3):
    ``(3) In the case of defense personnel of a developing country that 
is not a member of the North Atlantic Treaty Organization and that is 
participating in the Partnership for Peace program of the North 
Atlantic Treaty Organization (NATO), expenses authorized to be paid 
under subsection (a) may be paid in connection with travel of personnel 
to the territory of any of the countries participating in the 
Partnership for Peace program or the territory of any NATO member 
country.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply only with respect to travel performed on or after the date of the 
enactment of this Act.

SEC. 1203. LIMITATION ON FUNDING FOR JOINT DATA EXCHANGE CENTER IN 
              MOSCOW.

    (a) Limitation.--Not more than 50 percent of the funds made 
available to the Department of Defense for fiscal year 2003 for 
activities associated with the Joint Data Exchange Center in Moscow, 
Russia, may be obligated or expended for any such activity until--
        (1) the United States and the Russian Federation enter into a 
    cost-sharing agreement as described in subsection (d) of section 
    1231 of the Floyd D. Spence National Defense Authorization Act for 
    Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 
    Stat. 1654A-329);
        (2) the United States and the Russian Federation enter into an 
    agreement or agreements exempting the United States and any United 
    States person from Russian taxes, and from liability under Russian 
    laws, with respect to activities associated with the Joint Data 
    Exchange Center;
        (3) the Secretary of Defense submits to the Committee on Armed 
    Services of the Senate and the Committee on Armed Services of the 
    House of Representatives a copy of each agreement referred to in 
    paragraphs (1) and (2); and
        (4) a period of 30 days has expired after the date of the final 
    submission under paragraph (3).
    (b) Joint Data Exchange Center.--For purposes of this section, the 
term ``Joint Data Exchange Center'' means the United States-Russian 
Federation joint center for the exchange of data to provide early 
warning of launches of ballistic missiles and for notification of such 
launches that is provided for in a joint United States-Russian 
Federation memorandum of agreement signed in Moscow in June 2000.

SEC. 1204. SUPPORT OF UNITED NATIONS-SPONSORED EFFORTS TO INSPECT AND 
              MONITOR IRAQI WEAPONS ACTIVITIES.

    (a) Limitation on Amount of Assistance in Fiscal Year 2003.--The 
total amount of the assistance for fiscal year 2003 that is provided by 
the Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) as activities of the 
Department of Defense in support of activities under that Act may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--Subsection (f) 
of section 1505 of the Weapons of Mass Destruction Control Act of 1992 
(22 U.S.C. 5859a) is amended by striking ``2002'' and inserting 
``2003''.

SEC. 1205. COMPREHENSIVE ANNUAL REPORT TO CONGRESS ON COORDINATION AND 
              INTEGRATION OF ALL UNITED STATES NONPROLIFERATION 
              ACTIVITIES.

    Section 1205 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1247) is amended by adding at 
the end the following new subsection:
    ``(d) Annual Report on Implementation of Plan.--(1) Not later than 
January 31, 2003, and each year thereafter, the President shall submit 
to Congress a report on the implementation of the plan required by 
subsection (a) during the preceding year.
    ``(2) Each report under paragraph (1) shall include--
        ``(A) a discussion of progress made during the year covered by 
    such report in the matters of the plan required by subsection (a);
        ``(B) a discussion of consultations with foreign nations, and 
    in particular the Russian Federation, during such year on joint 
    programs to implement the plan;
        ``(C) a discussion of cooperation, coordination, and 
    integration during such year in the implementation of the plan 
    among the various departments and agencies of the United States 
    Government, as well as private entities that share objectives 
    similar to the objectives of the plan; and
        ``(D) any recommendations that the President considers 
    appropriate regarding modifications to law or regulations, or to 
    the administration or organization of any Federal department or 
    agency, in order to improve the effectiveness of any programs 
    carried out during such year in the implementation of the plan.''.

SEC. 1206. REPORT REQUIREMENT REGARDING RUSSIAN PROLIFERATION TO IRAN 
              AND OTHER COUNTRIES OF PROLIFERATION CONCERN.

    (a) Report Requirement.--Not later than March 15 of 2003 through 
2009, the President shall submit to Congress a report (in unclassified 
and classified form as necessary) describing in detail Russian 
proliferation of weapons of mass destruction and ballistic missile 
goods, technology, expertise, and information, and of dual-use items 
that may contribute to the development of weapons of mass destruction 
and ballistic missiles, to Iran and to other countries of proliferation 
concern during the year preceding the year in which the report is 
submitted. The report shall include a detailed description of the 
following, for the year covered by the report:
        (1) The number, type, and quality of direct and dual-use 
    weapons of mass destruction and ballistic missile goods, 
    technology, expertise, and information transferred.
        (2) The form, location, and manner in which such transfers took 
    place.
        (3) The contribution that such transfers could make to the 
    recipient countries' weapons of mass destruction and ballistic 
    missile programs, and an estimate of how soon such countries will 
    test, possess, and deploy weapons of mass destruction and ballistic 
    missiles.
        (4) The impact and consequences that such transfers have, and 
    could have over the next 10 years--
            (A) on United States national security;
            (B) on United States military forces deployed in the region 
        to which such transfers are being made;
            (C) on United States allies, friends, and interests in that 
        region; and
            (D) on the military capabilities of the country receiving 
        such transfers from Russia.
        (5) The policy and strategy that the President intends to 
    employ to halt Russian proliferation, the policy tools that the 
    President intends to use to carry out that policy and strategy, the 
    rationale for employing such tools, and the timeline by which the 
    President expects to see material progress in ending Russian 
    proliferation of direct and dual-use weapons of mass destruction 
    and missile goods, technology, expertise, and information.
    (b) Definition.--In this section, the term ``country of 
proliferation concern'' means any country identified by the Director of 
Central Intelligence as having engaged in the acquisition of dual-use 
and other technology useful for the development or production of 
weapons of mass destruction (including nuclear weapons, chemical 
weapons, and biological weapons) or advanced conventional munitions--
        (1) in the most recent report under section 721 of the 
    Combatting Proliferation of Weapons of Mass Destruction Act of 1996 
    (title VII of Public Law 104-293; 50 U.S.C. 2366); or
        (2) in any successor report on the acquisition by foreign 
    countries of dual-use and other technology useful for the 
    development or production of weapons of mass destruction.

SEC. 1207. MONITORING OF IMPLEMENTATION OF 1979 AGREEMENT BETWEEN THE 
              UNITED STATES AND CHINA ON COOPERATION IN SCIENCE AND 
              TECHNOLOGY.

    (a) In General.--The Secretary of State shall--
        (1) monitor the implementation of the Agreement specified in 
    subsection (c);
        (2) keep a systematic account of the protocols to the 
    Agreement;
        (3) coordinate the activities of all agencies of the United 
    States Government that carry out cooperative activities under the 
    Agreement; and
        (4) ensure that all activities conducted under the Agreement 
    comply with applicable laws and regulations concerning the transfer 
    of militarily sensitive technologies and dual-use technologies.
    (b) Responsibilities of the Office of Science and Technology 
Cooperation.--Except as otherwise provided by the Secretary of State, 
the functions of the Secretary under this section shall be carried out 
through the Director of the Office of Science and Technology 
Cooperation of the Department of State.
    (c) Agreement Defined.--For purposes of this section, the term 
``Agreement'' means the agreement between the United States and the 
People's Republic of China known as the ``Agreement between the 
Government of the United States of America and the Government of the 
People's Republic of China on Cooperation in Science and Technology'', 
signed in Washington on January 31, 1979, and its protocols.
    (d) Biennial Report to Congress.--(1) Not later than April 1 of 
each even-numbered year, the Secretary of State shall submit to 
Congress a report on the implementation of the Agreement and on 
activities under the Agreement. Each such report shall be submitted in 
both classified and unclassified form, as necessary.
    (2) Each report under this subsection shall provide an evaluation 
of the benefits of the Agreement to the economy, to the military, and 
to the industrial base of the People's Republic of China and shall 
include the following:
        (A) An accounting of all activities conducted under the 
    Agreement since the previous report (or, in the case of the first 
    report, since the Agreement was entered into) and a projection of 
    activities to be undertaken under the Agreement during the next two 
    years.
        (B) An estimate of the costs to the United States to administer 
    the Agreement during the period covered by the report.
        (C) An assessment of how the Agreement has influenced the 
    foreign and domestic policies of the People's Republic of China and 
    the policy of the People's Republic of China toward scientific and 
    technological cooperation with the United States.
        (D) An analysis by the Director of Central Intelligence of the 
    involvement of military specialists, weapons specialists, and 
    intelligence specialists of the People's Republic of China in the 
    activities of the Joint Commission established under the Agreement 
    and in other activities conducted under the Agreement.
        (E) A determination by the Secretary of Defense, developed with 
    the assistance of the Director of Central Intelligence, of the 
    extent to which the activities conducted under the Agreement have 
    enhanced the military and defense industrial base of the People's 
    Republic of China, and an assessment of the effect that projected 
    activities under the Agreement for the next two years, including 
    the transfer of technology and know-how, could have on the economic 
    and military capabilities of the People's Republic of China.
        (F) An assessment by the Inspector General of the Department of 
    Commerce of--
            (i) the extent to which programs or activities carried out 
        under the Agreement provide access to technology, information, 
        or know-how that could enhance military capabilities of the 
        People's Republic of China; and
            (ii) the extent to which those programs or activities are 
        carried out in compliance with export control laws and 
        regulations of the United States, especially those laws and 
        regulations governing so-called ``deemed exports''.
        (G) Any recommendations of the Secretary of State, Secretary of 
    Defense, or Director of Central Intelligence for improving the 
    monitoring of the activities of the Joint Commission established 
    under the Agreement.
    (3) The Secretary of State shall prepare each report under this 
subsection in consultation with the Secretary of Defense, the Secretary 
of Energy, the Director of Central Intelligence, the Director of the 
Federal Bureau of Investigation, and the Director of the National 
Science Foundation.
    (e) Interagency Working Group.--The President shall establish an 
interagency working group to oversee the implementation of the 
Agreement by departments and agencies of the United States. The working 
group shall consist of representatives of such departments, agencies, 
and offices of the executive branch as the President considers 
appropriate. The working group shall perform the following functions:
        (1) Assisting the Secretary of State and other appropriate 
    officials in setting standards under the Agreement for science and 
    technology transfers between the United States and the People's 
    Republic of China.
        (2) Monitoring ongoing programs and activities under the 
    Agreement and recommending future programs and activities under the 
    Agreement.
        (3) Developing a comprehensive database of all government-to-
    government programs and United States Government-funded programs 
    under the Agreement.
        (4) Coordinating activities under the Agreement between United 
    States Government agencies, including elements of the intelligence 
    community, as appropriate.

SEC. 1208. EXTENSION OF CERTAIN COUNTERPROLIFERATION ACTIVITIES AND 
              PROGRAMS.

    (a) Extension of Interagency Counterproliferation Program Review 
Committee.--Section 1605(f) of the National Defense Authorization Act 
for Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by striking 
``September 30, 2004'' and inserting ``September 30, 2008''.
    (b) Later Deadline for Submission of Annual Report.--Subsection (a) 
of section 1503 of the National Defense Authorization Act for Fiscal 
Year 1995 (22 U.S.C. 2751 note) is amended by striking ``February 1 of 
each year'' and inserting ``May 1 each year''.
    (c) Additional Matters To Be Included in Annual Report.--Subsection 
(b) of such section is amended by adding at the end the following new 
paragraph:
        ``(8) A discussion of the limitations and impediments to the 
    biological weapons counterproliferation efforts of the Department 
    of Defense (including legal, policy, and resource constraints) and 
    recommendations for the removal or mitigation of such impediments 
    and for ways to make such efforts more effective.''.
    (d) Technical Amendment To Reflect Change in Position Title.--
Section 1605(a)(4) of the National Defense Authorization Act for Fiscal 
Year 1994 (22 U.S.C. 2751 note) is amended by striking ``Under 
Secretary of Defense for Acquisition and Technology'' in the first 
sentence and inserting ``Under Secretary of Defense for Acquisition, 
Technology, and Logisitics''.

SEC. 1209. SEMIANNUAL REPORT BY DIRECTOR OF CENTRAL INTELLIGENCE ON 
              CONTRIBUTIONS BY FOREIGN PERSONS TO EFFORTS BY COUNTRIES 
              OF PROLIFERATION CONCERN TO OBTAIN WEAPONS OF MASS 
              DESTRUCTION AND THEIR DELIVERY SYSTEMS.

    (a) Content of Semiannual Report.--The Combatting Proliferation of 
Weapons of Mass Destruction Act of 1996 (title VII of Public Law 104-
293) is amended by inserting after section 721 (50 U.S.C. 2366) the 
following new section:

``SEC. 722. SEMIANNUAL REPORT ON CONTRIBUTIONS OF FOREIGN PERSONS TO 
              WEAPONS OF MASS DESTRUCTION AND DELIVERY SYSTEMS EFFORTS 
              OF COUNTRIES OF PROLIFERATION CONCERN.

    ``(a) Reports.--The Director of Central Intelligence shall submit 
to Congress a semiannual report identifying each foreign person that, 
during the period covered by the report, made a material contribution 
to the research, development, production, or acquisition by a country 
of proliferation concern of--
        ``(1) weapons of mass destruction (including nuclear weapons, 
    chemical weapons, or biological weapons); or
        ``(2) ballistic or cruise missile systems.
    ``(b) Period of Semiannual Reports.--Semiannual reports under 
subsection (a) shall be submitted as follows:
        ``(1) One semiannual report shall cover the first six months of 
    the calendar year and shall be submitted not later than January 1 
    of the following year.
        ``(2) The other semiannual report shall cover the second six 
    months of the calendar year and shall be submitted not later than 
    July 1 of the following year.
    ``(c) Form of Reports.--(1) A report under subsection (a) may be 
submitted in classified form, in whole or in part, if the Director of 
Central Intelligence determines that submittal in that form is 
advisable.
    ``(2) Any portion of a report under subsection (a) that is 
submitted in classified form shall be accompanied by an unclassified 
summary of such portion.
    ``(d) Definitions.--In this section:
        ``(1) The term `foreign person' means any of the following:
            ``(A) A natural person who is not a citizen of the United 
        States.
            ``(B) A corporation, business association, partnership, 
        society, trust, or other nongovernmental entity, organization, 
        or group that is organized under the laws of a foreign country 
        or has its principal place of business in a foreign country.
            ``(C) Any foreign government or foreign governmental entity 
        operating as a business enterprise or in any other capacity.
            ``(D) Any successor, subunit, or subsidiary of any entity 
        described in subparagraph (B) or (C).
        ``(2) The term `country of proliferation concern' means any 
    country identified by the Director of Central Intelligence as 
    having engaged in the acquisition of dual-use and other technology 
    useful for the development or production of weapons of mass 
    destruction (including nuclear weapons, chemical weapons, and 
    biological weapons) or advanced conventional munitions--
            ``(A) in the most recent report under section 721; or
            ``(B) in any successor report on the acquisition by foreign 
        countries of dual-use and other technology useful for the 
        development or production of weapons of mass destruction.''.
    (b) Effective Date.--Section 722 of the Combatting Proliferation of 
Weapons of Mass Destruction Act of 1996, as added by subsection (a), 
shall take effect with the report with respect to the first six months 
of 2003 required to be submitted under that section not later than 
January 1, 2004.

SEC. 1210. REPORT ON FEASIBILITY AND ADVISABILITY OF SENIOR OFFICER 
              EXCHANGES BETWEEN THE ARMED FORCES OF THE UNITED STATES 
              AND THE MILITARY FORCES OF TAIWAN.

    (a) Presidential Report.--Not later than 180 days after the date of 
the enactment of this Act, the President shall submit to Congress a 
report on--
        (1) the feasibility and advisability of conducting combined 
    operational training with, and exchanges of general and flag 
    officers between, the Armed Forces of the United States and the 
    military forces of Taiwan; and
        (2) the progress being made in meeting United States 
    commitments to the security of Taiwan.
    (b) Classification of Report.--The report required by this section 
shall be submitted in unclassified form and, as necessary, in 
classified form.

SEC. 1211. REPORT ON UNITED STATES FORCE STRUCTURE IN THE PACIFIC.

    (a) Secretary of Defense Report.--Not later than 180 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report on the plans of the Department of Defense 
to maintain adequate United States force structure in the Pacific, 
including any efforts (1) to augment current basing arrangements, and 
(2) to implement the recommendations from the most recent Quadrennial 
Defense Review to improve United States military capabilities in the 
Pacific.
    (b) Classification of Report.--The report required by this section 
shall be submitted in unclassified form and, as necessary, in 
classified form.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition against use of funds until submission of reports.
Sec. 1304. Report on use of revenue generated by activities carried out 
          under Cooperative Threat Reduction programs.
Sec. 1305. Prohibition against use of funds for second wing of fissile 
          material storage facility.
Sec. 1306. Limited waiver of restrictions on use of funds for threat 
          reduction in states of the former Soviet Union.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2003 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2003 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $416,700,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2003 in 
section 301(23) for Cooperative Threat Reduction programs, the 
following amounts may be obligated for the purposes specified:
        (1) For strategic offensive arms elimination in Russia, 
    $70,500,000.
        (2) For strategic nuclear arms elimination in Ukraine, 
    $6,500,000.
        (3) For nuclear weapons transportation security in Russia, 
    $19,700,000.
        (4) For nuclear weapons storage security in Russia, 
    $40,000,000.
        (5) For activities designated as Other Assessments/
    Administrative Support, $14,700,000.
        (6) For defense and military contacts, $18,900,000.
        (7) For weapons of mass destruction infrastructure elimination 
    activities in Kazakhstan, $9,000,000.
        (8) For weapons of mass destruction infrastructure elimination 
    activities in Ukraine, $8,800,000.
        (9) For chemical weapons destruction in Russia, $50,000,000.
        (10) For biological weapons proliferation prevention in the 
    former Soviet Union, $55,000,000.
        (11) For weapons of mass destruction proliferation prevention 
    in the States of the former Soviet Union, $40,000,000.
    (b) Additional Funds Authorized for Certain Purposes.--Of the funds 
authorized to be appropriated to the Department of Defense for fiscal 
year 2003 in section 301(23) for Cooperative Threat Reduction programs, 
$83,600,000 may be obligated for any of the purposes specified in 
paragraphs (1) through (4) and (9) of subsection (a) in addition to the 
amounts specifically authorized in such paragraphs.
    (c) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2003 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (11) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2003 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (d) Limited Authority To Vary Individual Amounts.--(1) Subject to 
paragraphs (2) and (3), in any case in which the Secretary of Defense 
determines that it is necessary to do so in the national interest, the 
Secretary may obligate amounts appropriated for fiscal year 2003 for a 
purpose listed in any of the paragraphs in subsection (a) in excess of 
the specific amount authorized for that purpose.
    (2) An obligation of funds for a purpose stated in any of the 
paragraphs in subsection (a) in excess of the specific amount 
authorized for such purpose may be made using the authority provided in 
paragraph (1) only after--
        (A) the Secretary submits to Congress notification of the 
    intent to do so together with a complete discussion of the 
    justification for doing so; and
        (B) 15 days have elapsed following the date of the 
    notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts for a purpose stated in any of 
paragraphs (5) through (10) of subsection (a) in excess of 125 percent 
of the specific amount authorized for such purpose.
    (4) In this section, the term ``specific amount authorized'' means, 
with respect to a purpose listed in any paragraph in subsection (a)--
        (A) the amount specifically authorized for that purpose in 
    subsection (a), plus
        (B) in the case of a purpose listed in paragraph (1), (2), (3), 
    (4), or (9) of subsection (a), any amount obligated under 
    subsection (b) for that purpose.

SEC. 1303. PROHIBITION AGAINST USE OF FUNDS UNTIL SUBMISSION OF 
              REPORTS.

    Not more than 50 percent of fiscal year 2003 Cooperative Threat 
Reduction funds may be obligated or expended until 30 days after the 
date of the submission of--
        (1) the report required to be submitted in fiscal year 2002 
    under section 1308(a) of the Floyd D. Spence National Defense 
    Authorization Act for Fiscal Year 2001 (as enacted into law by 
    Public Law 106-398; 114 Stat. 1654A-341); and
        (2) the update for the multiyear plan required to be submitted 
    for fiscal year 2001 under section 1205 of the National Defense 
    Authorization Act for Fiscal Year 1995 (Public Law 103-337; 22 
    U.S.C. 5952 note).

SEC. 1304. REPORT ON USE OF REVENUE GENERATED BY ACTIVITIES CARRIED OUT 
              UNDER COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) Additional Report Requirements.--Section 1308(c) of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-341) is amended 
by inserting at the end the following new paragraphs:
        ``(6) To the maximum extent practicable, a description of how 
    revenue generated by activities carried out under Cooperative 
    Threat Reduction programs in recipient States is being utilized, 
    monitored, and accounted for.
        ``(7) A description of the defense and military activities 
    carried out under Cooperative Threat Reduction programs during the 
    fiscal year ending in the year preceding the year of the report, 
    including--
            ``(A) the amounts obligated or expended for such 
        activities;
            ``(B) the purposes, goals, and objectives for which such 
        amounts were obligated and expended;
            ``(C) a description of the activities carried out, 
        including the forms of assistance provided, and the 
        justification for each form of assistance provided;
            ``(D) the success of each activity, including the goals and 
        objectives achieved for each;
            ``(E) a description of participation by private sector 
        entities in the United States in carrying out such activities, 
        and the participation of any other Federal department or agency 
        in such activities; and
            ``(F) any other information that the Secretary considers 
        relevant to provide a complete description of the operation and 
        success of activities carried out under Cooperative Threat 
        Reduction programs.''.
    (b) Effective Date.--Paragraphs (6) and (7) of section 1308(c) of 
such Act, as added by subsection (a), shall apply beginning with the 
report submitted under that section in 2004.

SEC. 1305. PROHIBITION AGAINST USE OF FUNDS FOR SECOND WING OF FISSILE 
              MATERIAL STORAGE FACILITY.

    No funds authorized to be appropriated for Cooperative Threat 
Reduction programs for any fiscal year may be used for the design, 
planning, or construction of a second wing for a storage facility for 
Russian fissile material.

SEC. 1306. LIMITED WAIVER OF RESTRICTIONS ON USE OF FUNDS FOR THREAT 
              REDUCTION IN STATES OF THE FORMER SOVIET UNION.

    (a) Authority To Waive Restrictions and Eligibility Requirements.--
If the President submits the certification and report described in 
subsection (b) with respect to an independent state of the former 
Soviet Union for a fiscal year--
        (1) the restrictions in subsection (d) of section 1203 of the 
    Cooperative Threat Reduction Act of 1993 (22 U.S.C. 5952) shall 
    cease to apply, and funds may be obligated and expended under that 
    section for assistance, to that state during that fiscal year; and
        (2) funds may be obligated and expended during that fiscal year 
    under section 502 of the FREEDOM Support Act (22 U.S.C. 5852) for 
    assistance or other programs and activities for that state even if 
    that state has not met one or more of the requirements for 
    eligibility under paragraphs (1) through (4) of that section.
    (b) Certification and Report.--(1) The certification and report 
referred to in subsection (a) are a written certification submitted by 
the President to Congress that the waiver of the restrictions and 
requirements described in paragraphs (1) and (2) of that subsection 
during such fiscal year is important to the national security interests 
of the United States, together with a report containing the following:
        (A) A description of the activity or activities that prevent 
    the President from certifying that the state is committed to the 
    matters set forth in the provisions of law specified in paragraphs 
    (1) and (2) of subsection (a) in such fiscal year.
        (B) An explanation of why the waiver is important to the 
    national security interests of the United States.
        (C) A description of the strategy, plan, or policy of the 
    President for promoting the commitment of the state to, and 
    compliance by the state with, such matters, notwithstanding the 
    waiver.
    (2) The matter included in the report under paragraph (1) shall be 
submitted in unclassified form, but may include a classified annex.
    (c) Fiscal Years Covered.--The authority under subsection (a) shall 
apply only with respect to fiscal years 2003, 2004, and 2005.
    (d) Expiration of Authority.--The authority under subsection (a) 
shall expire on September 30, 2005.
    (e) Administration of Restrictions on Assistance.--Subsection (d) 
of section 1203 of the Cooperative Threat Reduction Act of 1993 (title 
XII of Public Law 103-160; 107 Stat. 1778; 22 U.S.C. 5952) is amended--
        (1) by striking ``any year'' and inserting ``any fiscal year''; 
    and
        (2) by striking ``that year'' and inserting ``such fiscal 
    year''.

                      TITLE XIV--HOMELAND SECURITY

Sec. 1401. Transfer of technology items and equipment in support of 
          homeland security.
Sec. 1402. Comprehensive plan for improving the preparedness of military 
          installations for terrorist incidents.
Sec. 1403. Additional Weapons of Mass Destruction Civil Support Teams.
Sec. 1404. Report on the role of the Department of Defense in supporting 
          homeland security.
Sec. 1405. Sense of Congress on Department of Defense assistance to 
          local first responders.

SEC. 1401. TRANSFER OF TECHNOLOGY ITEMS AND EQUIPMENT IN SUPPORT OF 
              HOMELAND SECURITY.

    (a) Responsible Senior Official.--The Secretary of Defense shall 
designate a senior official of the Department of Defense to coordinate 
all Department of Defense efforts to identify, evaluate, deploy, and 
transfer to Federal, State, and local first responders technology items 
and equipment in support of homeland security.
    (b) Duties.--The official designated pursuant to subsection (a) 
shall--
        (1) identify technology items and equipment developed or being 
    developed by Department of Defense components that have the 
    potential to enhance public safety and improve homeland security;
        (2) cooperate with appropriate Federal Government officials 
    outside the Department of Defense to evaluate whether such 
    technology items and equipment would be useful to first responders;
        (3) facilitate the timely transfer, through identification of 
    appropriate private sector manufacturers, of appropriate technology 
    items and equipment to Federal, State, and local first responders, 
    in coordination with appropriate Federal Government officials 
    outside the Department of Defense;
        (4) identify and eliminate redundant and unnecessary research 
    efforts within the Department of Defense with respect to 
    technologies to be deployed to first responders;
        (5) expedite the advancement of high priority Department of 
    Defense projects from research through implementation of initial 
    manufacturing; and
        (6) participate in outreach programs established by appropriate 
    Federal Government officials outside the Department of Defense to 
    communicate with first responders and to facilitate awareness of 
    available technology items and equipment to support responses to 
    crises.
    (c) Support Agreement.--The official designated pursuant to 
subsection (a) shall enter into an appropriate agreement with a 
nongovernment entity for such entity to assist the official designated 
under subsection (a) in carrying out that official's duties under this 
section. Any such agreement shall be entered into using competitive 
procedures in compliance with applicable requirements of law and 
regulation.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the actions taken to carry 
out this section. The report shall include the following:
        (1) Identification of the senior official designated pursuant 
    to subsection (a).
        (2) A summary of the actions taken or planned to be taken to 
    implement subsection (b), including a schedule for planned actions.
        (3) An initial list of technology items and equipment 
    identified pursuant to subsection (b)(1), together with a summary 
    of any program schedule for the development, deployment, or 
    transfer of such items and equipment.
        (4) A description of any agreement entered into pursuant to 
    subsection (c).

SEC. 1402. COMPREHENSIVE PLAN FOR IMPROVING THE PREPAREDNESS OF 
              MILITARY INSTALLATIONS FOR TERRORIST INCIDENTS.

    (a) Comprehensive Plan.--The Secretary of Defense shall develop a 
comprehensive plan for improving the preparedness of military 
installations for preventing and responding to terrorist attacks, 
including attacks involving the use or threat of use of weapons of mass 
destruction.
    (b) Preparedness Strategy.--The plan under subsection (a) shall 
include a preparedness strategy that includes each of the following:
        (1) Identification of long-term goals and objectives for 
    improving the preparedness of military installations for preventing 
    and responding to terrorist attacks.
        (2) Identification of budget and other resource requirements 
    necessary to achieve those goals and objectives.
        (3) Identification of factors beyond the control of the 
    Secretary that could impede the achievement of those goals and 
    objectives.
        (4) A discussion of the extent to which local, regional, or 
    national military response capabilities are to be developed, 
    integrated, and used.
        (5) A discussion of how the Secretary will coordinate the 
    capabilities referred to in paragraph (4) with local, regional, or 
    national civilian and other military capabilities.
    (c) Performance Plan.--The plan under subsection (a) shall include 
a performance plan that includes each of the following:
        (1) A reasonable schedule, with milestones, for achieving the 
    goals and objectives of the strategy under subsection (b).
        (2) Performance criteria for measuring progress in achieving 
    those goals and objectives.
        (3) A description of the process, together with a discussion of 
    the resources, necessary to achieve those goals and objectives.
        (4) A description of the process for evaluating results in 
    achieving those goals and objectives.
    (d) Submittal to Congress.--The Secretary shall submit the 
comprehensive plan developed under subsection (a) to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives not later than 180 days after the date of the 
enactment of this Act.
    (e) Comptroller General Review and Report.--Not later than 60 days 
after the date on which the Secretary submits the comprehensive plan 
under subsection (a), the Comptroller General shall review the plan and 
submit to the committees referred to in subsection (d) the Comptroller 
General's assessment of the plan.
    (f) Annual Report.--(1) In each of 2004, 2005, and 2006, the 
Secretary of Defense shall include a report on the comprehensive plan 
developed under subsection (a) with the materials that the Secretary 
submits to Congress in support of the budget submitted by the President 
that year pursuant to section 1105(a) of title 31, United States Code.
    (2) Each such report shall include--
        (A) a discussion of any revision that the Secretary has made in 
    the comprehensive plan developed under subsection (a) since the 
    last report under this subsection or, in the case of the first such 
    report, since the plan was submitted under subsection (d); and
        (B) an assessment of the progress made in achieving the goals 
    and objectives of the strategy set forth in the plan.
    (3) If the Secretary includes in the report for 2004 or 2005 under 
this subsection a declaration that the goals and objectives of the 
preparedness strategy set forth in the comprehensive plan have been 
achieved, no further report is required under this subsection.

SEC. 1403. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

    (a) Establishment of Additional Teams.--The Secretary of Defense 
shall--
        (1) establish 23 additional teams designated as Weapons of Mass 
    Destruction Civil Support Teams, for a total of 55 such teams; and
        (2) ensure that of such 55 teams, there is at least one team 
    established in each State and territory.
    (b) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary shall submit to Congress a plan, in 
furtherance of subsection (a), for establishing at least one Weapons of 
Mass Destruction Civil Support Team in each State and territory that 
does not have such a team as of the date of the enactment of this Act. 
The plan shall include the following:
        (1) A schedule and budget for manning, training, and equipping 
    the new teams as rapidly as is possible without jeopardizing the 
    attainment of full effectiveness by the new teams.
        (2) A discussion of whether the mission of the Weapons of Mass 
    Destruction Civil Support Teams should be expanded and, if so, how.
    (c) Definitions.--For purposes of this section:
        (1) The term ``Weapons of Mass Destruction Civil Support Team'' 
    means a team of members of the reserve components of the Armed 
    Forces that is established under section 12310(c) of title 10, 
    United States Code, in support of emergency preparedness programs 
    to prepare for or to respond to any emergency involving the use of 
    a weapon of mass destruction.
        (2) The term ``State and territory'' means each of the several 
    States, the District of Columbia, Puerto Rico, Guam, and the Virgin 
    Islands.

SEC. 1404. REPORT ON THE ROLE OF THE DEPARTMENT OF DEFENSE IN 
              SUPPORTING HOMELAND SECURITY.

    (a) Report Required.--Not later than March 1, 2003, the Secretary 
of Defense shall submit to the congressional defense committees a 
report on Department of Defense responsibilities, mission, and plans 
for military support of homeland security.
    (b) Contents of Report.--The report shall include, at a minimum, a 
discussion of the following:
        (1) The Department of Defense definition of its homeland 
    security mission, particularly with respect to how it relates to 
    providing military support to civil authorities, managing the 
    consequences of terrorist attacks, and homeland defense, and the 
    actions the Department is taking to implement the homeland security 
    mission as so defined.
        (2) Changes in the roles, missions, responsibilities, 
    organization, and capabilities of the following organizations in 
    order to conduct their homeland security support mission, and the 
    reasons for such changes:
            (A) The Office of the Secretary of Defense.
            (B) The Army, Navy, Air Force, and Marine Corps.
            (C) The Army National Guard and the Air National Guard.
            (D) The combatant commands of the Department of Defense.
        (3) The relationship between the Department of Defense, 
    including its combatant commands, and the following with regard to 
    homeland security:
            (A) Other departments and agencies of the Federal 
        Government.
            (B) State and local governments.
            (C) The National Guard and Reserve components.
        (4) The current capability of the Department of Defense to 
    respond to terrorist attacks employing chemical, biological, 
    radiological, nuclear, high explosive or cyberterrorism weapons 
    against personnel and critical infrastructure of the Department, 
    including identification of the goals of the Department for being 
    fully capable of responding to such attacks, current deficiencies 
    in that capability, the resources required to achieve that 
    capability, and a long-term plan to reach that capability.
        (5) The roles, missions, and responsibilities of the 
    intelligence components of the Department of Defense in support of 
    its homeland security mission, including the policies and plans 
    for--
            (A) collecting and analyzing information related to 
        homeland security;
            (B) sharing that information with other agencies of the 
        Federal Government; and
            (C) preparing threat and risk assessments and issuing 
        warnings.
        (6) A discussion of plans of the Department of Defense for 
    training, exercising, and preparing to perform its homeland 
    security mission, including--
            (A) individual and collective training for civilian and 
        military personnel of the Department involved in homeland 
        security;
            (B) integrated training with other agencies of the Federal 
        Government, and with State and local governments, as 
        appropriate;
            (C) interagency exercises and simulations; and
            (D) the development of a permanent ``terrorist opposing 
        force'' capable of challenging the Department's plans, 
        policies, and capabilities during training events and 
        exercises.
        (7) A discussion of how the Department of Defense biological 
    defense research program supports its homeland security mission.
        (8) A discussion of the efforts by the Department of Defense to 
    develop, either within the Department or through contracts with 
    private entities, anticyberterrorism technology, including an 
    assessment of whether and how such efforts should be increased.
        (9) An assessment of the need for and feasibility of developing 
    and fielding Department of Defense regional chemical-biological 
    incident response teams across the United States, including options 
    for providing the resources and personnel necessary for developing 
    and fielding any such teams.
        (10) A discussion of the Department of Defense plans and 
    efforts to place new emphasis on the unique operational demands 
    associated with homeland security while ensuring that defense of 
    the United States remains the primary mission of the Department of 
    Defense.
        (11) The resource constraints and legal impediments to 
    implementing any of the activities discussed under paragraphs (1) 
    through (10).

SEC. 1405. SENSE OF CONGRESS ON DEPARTMENT OF DEFENSE ASSISTANCE TO 
              LOCAL FIRST RESPONDERS.

    It is the sense of Congress that the Secretary of Defense should, 
to the extent the Secretary considers appropriate and feasible, provide 
assistance, in accordance with otherwise applicable provisions of law, 
to entities that are local first responders for domestic terrorist 
incidents in order to assist those entities in improving their 
capabilities to respond to such incidents.

   TITLE XV--AUTHORIZATION OF APPROPRIATIONS FOR THE WAR ON TERRORISM

Sec. 1501. Authorization of appropriations for continued operations for 
          the war on terrorism.
Sec. 1502. Mobilization and personnel.
Sec. 1503. Operations.
Sec. 1504. Equipment replacement and enhancement.
Sec. 1505. Classified activities.
Sec. 1506. Procurement of munitions.
Sec. 1507. Discretionary restoration of authorizations of appropriations 
          reduced for management efficiencies.
Sec. 1508. General provisions applicable to transfers.

SEC. 1501. AUTHORIZATION OF APPROPRIATIONS FOR CONTINUED OPERATIONS FOR 
              THE WAR ON TERRORISM.

    In addition to any other amounts authorized to be appropriated by 
this Act, there is hereby authorized to be appropriated for the 
Department of Defense for fiscal year 2003, subject to subsection (b), 
$10,000,000,000 only for the conduct of Operation Noble Eagle and 
Operation Enduring Freedom in continuation of the war on terrorism in 
accordance with the purposes stated in section 2(a) of the 
Authorization for Use of Military Force (Public Law 107-40; 50 U.S.C. 
1541 note).

SEC. 1502. MOBILIZATION AND PERSONNEL.

    Of the amount authorized to be appropriated in section 1501, 
$2,550,000,000 shall be available only for transfer (subject to 
sections 1507 and 1508) to fiscal year 2003 military personnel accounts 
of the Department of Defense for the purpose of providing for the 
personnel and personnel support costs of the members of the Armed 
Forces who are participating in Operation Noble Eagle or Operation 
Enduring Freedom in continuation of the war on terrorism in accordance 
with the purposes referred to in section 1501(a).

SEC. 1503. OPERATIONS.

    Of the amount authorized to be appropriated in section 1501, 
$4,270,000,000 shall be available only for transfer (subject to 
sections 1507 and 1508) to fiscal year 2003 operation and maintenance 
accounts and working-capital funds of the Department of Defense for 
operating costs of the conduct of Operation Noble Eagle and Operation 
Enduring Freedom in continuation of the war on terrorism in accordance 
with the purposes referred to in section 1501(a).

SEC. 1504. EQUIPMENT REPLACEMENT AND ENHANCEMENT.

    Of the amount authorized to be appropriated in section 1501, 
$1,000,000,000 shall be available only for transfer (subject to 
sections 1507 and 1508) to fiscal year 2003 procurement and research, 
development, test, and evaluation accounts of the Department of Defense 
for--
        (1) emergency replacement of equipment and munitions lost or 
    expended in operations conducted as part of Operation Noble Eagle 
    or Operation Enduring Freedom in continuation of the war on 
    terrorism in accordance with the purposes referred to in section 
    1501(a); or
        (2) enhancement of critical military capabilities necessary to 
    carry out operations as part of those Operations in continuation of 
    the war on terrorism in accordance with those purposes.

SEC. 1505. CLASSIFIED ACTIVITIES.

    Of the amount authorized to be appropriated in section 1501, 
$1,980,000,000 shall be available only for unspecified intelligence and 
classified activities carried out in support of Operation Noble Eagle 
or Operation Enduring Freedom in continuation of the war on terrorism 
in accordance with the purposes referred to in section 1501(a), and 
only by transfer (subject to sections 1507 and 1508) to fiscal year 
2003 accounts of the Department of Defense in amounts as follows:
        (1) To procurement accounts, $1,618,200,000.
        (2) To operation and maintenance accounts, $301,600,000.
        (3) To research, development, test, and evaluation accounts, 
    $60,200,000.

SEC. 1506. PROCUREMENT OF MUNITIONS.

    Of the amount authorized to be appropriated in section 1501, 
$200,000,000 shall be available only for the procurement of munitions 
for the support of Operation Noble Eagle or Operation Enduring Freedom 
in continuation of the war on terrorism in accordance with the purposes 
referred to in section 1501(a), and only by transfer (subject to 
sections 1507 and 1508) to fiscal year 2003 procurement accounts of the 
Department of Defense in amounts as follows:
        (1) To accounts of the Army for the procurement of ammunition 
    $94,000,000.
        (2) To accounts of the Navy for the procurement of weapons, 
    $35,000,000.
        (3) To accounts of the Navy and Marine Corps for the 
    procurement of ammunition, $25,000,000.
        (4) To accounts of the Air Force for the procurement of 
    ammunition, $40,000,000.
        (5) To Defense-wide procurement accounts for special operations 
    forces, $6,000,000.

SEC. 1507. DISCRETIONARY RESTORATION OF AUTHORIZATIONS OF 
              APPROPRIATIONS REDUCED FOR MANAGEMENT EFFICIENCIES.

    (a) Transfer Authority.--(1) The Secretary of Defense may, subject 
to section 1508, transfer up to a total of $1,000,000,000 of the amount 
authorized to be appropriated by section 1501 to Department of Defense 
accounts under titles I, II, and III that are reduced for savings 
described in paragraph (2) if and to the extent that the Secretary 
determines that such savings are not achievable.
    (2) The savings referred to in paragraph (1) are savings that are 
to be achieved from--
        (A) improved management of Department of Defense contracts for 
    the procurement of services; and
        (B) the deferral of expenditures on financial management 
    systems.
    (b) Relationship to Other Title XV Transfer Authorities.--The total 
amount transferred under sections 1502 through 1506 and under section 
1507 may not exceed the total amount authorized to be appropriated by 
section 1501.

SEC. 1508. GENERAL PROVISIONS APPLICABLE TO TRANSFERS.

    (a) Merger of Transferred Amounts.--Amounts transferred pursuant to 
this title shall be merged with, and shall be available for the same 
purposes and the same period as, the account to which transferred.
    (b) Congressional Notice-and-Wait Requirement.--A transfer may not 
be made under section 1502, 1503, 1504, 1505, 1506, or 1507 until the 
Secretary of Defense has submitted a notice in writing to the 
congressional defense committees of the proposed transfer and a period 
of 15 days has elapsed after the date such notice is received. Any such 
notice shall include specification of the amount of the proposed 
transfer, the account to which the transfer is to be made, and the 
purpose of the transfer.
    (c) Relationship to Other Transfer Authority.--The transfer 
authorities provided in this title are in addition to any other 
transfer authority available to the Secretary of Defense under any 
provision of any other title of this Act or under any other provision 
of law.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2003''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
          2002 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
          2001 project.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Army: Inside the United States
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Anniston Army Depot..        $1,900,000
                                 Fort Rucker..........       $15,808,000
                                 Redstone Arsenal.....        $1,950,000
Alaska.........................  Fort Greely..........        $2,700,000
                                 Fort Richardson......       $20,011,000
                                 Fort Wainwright......      $139,906,000
Arizona........................  Fort Huachuca........       $10,400,000
                                 Yuma Proving Ground..        $4,500,000
California.....................  Fort Irwin...........        $2,522,000
Colorado.......................  Fort Carson..........        $9,698,000
District of Columbia...........  Walter Reed Army            $13,794,000
                                  Medical Center......
Georgia........................  Fort Benning.........       $86,250,000
                                 Fort Stewart/Hunter         $26,000,000
                                  Army Air Field......
Hawaii.........................  Schofield Barracks...      $191,000,000
Kansas.........................  Fort Leavenworth.....        $7,979,000
                                 Fort Riley...........       $81,095,000
Kentucky.......................  Blue Grass Army Depot        $5,500,000
                                 Fort Campbell........      $106,300,000
                                 Fort Knox............        $5,873,000
Louisiana......................  Fort Polk............       $37,620,000
Maryland.......................  Fort Detrick.........       $22,500,000
Massachusetts..................  Natick Research,             $4,100,000
                                  Development, and
                                  Engineering Center..
Missouri.......................  Fort Leonard Wood....       $24,993,000
New Jersey.....................  Picatinny Arsenal....        $7,500,000
New York.......................  Fort Drum............       $18,300,000
                                 United States                $4,991,000
                                  Military Academy,
                                  West Point..........
North Carolina.................  Fort Bragg...........       $99,632,000
Oklahoma.......................  Fort Sill............       $39,652,000
Pennsylvania...................  Letterkenny Army             $1,550,000
                                  Depot...............
South Carolina.................  Fort Jackson.........        $3,051,000
Texas..........................  Fort Bliss...........        $5,200,000
                                 Fort Hood............       $83,061,000
Virginia.......................  Fort Eustis..........        $4,133,000
                                 Fort Lee.............        $7,103,000
Washington.....................  Fort Lewis...........       $56,195,000
                                 Yakima Training              $3,000,000
                                  Center.
                                                       -----------------
                                     Total............    $1,155,767,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(2), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Belgium........................  Supreme Headquarters,       $13,600,000
                                  Allied Powers Europe..
Germany........................  Area Support Group,         $17,200,000
                                  Bamberg.
                                 Campbell Barracks......      $8,300,000
                                 Coleman Barracks.......      $1,350,000
                                 Darmstadt..............      $3,500,000
                                 Grafenwoehr............     $69,866,000
                                 Landstuhl..............      $2,400,000
                                 Mannheim...............     $42,000,000
                                 Schweinfurt............      $2,000,000
Italy..........................  Vicenza................     $34,700,000
Korea..........................  Camp Carroll...........     $20,000,000
                                 Camp Castle............      $6,800,000
                                 Camp Hovey.............     $25,000,000
                                 Camp Humphreys.........     $36,000,000
                                 Camp Henry.............     $10,200,000
                                 Camp Tango.............     $12,600,000
                                 K16 Airfield...........     $40,000,000
Qatar..........................  Qatar..................      $8,600,000
                                                         ---------------
                                 Total..................    $354,116,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(3), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installation and location, and in the 
amount, set forth in the following table:


                       Army: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Unspecified Worldwide..      $4,000,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(6)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Fort Wainwright............  38 Units...................   $17,752,000
Arizona.................................  Yuma Proving Ground........  33 Units...................    $6,100,000
Korea...................................  Yongsan....................  10 Units...................    $3,100,000
                                                                                                   -------------
                                              Total:.................                                $26,952,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(6)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $15,653,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(6)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $239,751,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Army in the total amount of $3,104,176,000, as 
follows:
        (1) For military construction projects inside the United States 
    authorized by section 2101(a), $949,567,000.
        (2) For military construction projects outside the United 
    States authorized by section 2101(b), $354,116,000.
        (3) For military construction projects at unspecified worldwide 
    locations authorized by section 2101(c), $4,000,000.
        (4) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $21,550,000.
        (5) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $160,313,000.
        (6) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $282,356,000.
            (B) For support of military family housing (including the 
        functions described in section 2833 of title 10, United States 
        Code), $1,117,274,000.
        (7) For the construction of phase 2 of Saddle Access Road, 
    Pohakoula Training Facility, Hawaii, authorized by section 2101(a) 
    of the Military Construction Authorization Act for Fiscal Year 2001 
    (division B of the Floyd D. Spence National Defense Authorization 
    Act for Fiscal Year 2001, as enacted into law by Public Law 106-
    398; 114 Stat. 1654A-389), $13,000,000.
        (8) For the construction of phase 3 of a barracks complex, 
    Butner Road, at Fort Bragg, North Carolina, authorized by section 
    2101(a) of the Military Construction Authorization Act for Fiscal 
    Year 2001 (division B of the Floyd D. Spence National Defense 
    Authorization Act for Fiscal Year 2001, as enacted into law by 
    Public Law 106-398; 114 Stat. 1654A-389), $50,000,000.
        (9) For the construction of phase 2 of a barracks complex, D 
    Street, at Fort Richardson, Alaska, authorized by section 2101(a) 
    of the Military Construction Authorization Act for Fiscal Year 2002 
    (division B of Public Law 107-107; 115 Stat. 1280), $21,000,000.
        (10) For the construction of phase 2 of a barracks complex, 
    Nelson Boulevard, at Fort Carson, Colorado, authorized by section 
    2101(a) of the Military Construction Authorization Act for Fiscal 
    Year 2002 (division B of Public Law 107-107; 115 Stat. 1280), as 
    amended by section 2105 of this Act, $42,000,000.
        (11) For the construction of phase 2 of a basic combat trainee 
    complex at Fort Jackson, South Carolina, authorized by section 
    2101(a) of the Military Construction Authorization Act for Fiscal 
    Year 2002 (division B of Public Law 107-107; 115 Stat. 1280), as 
    amended by section 2105 of this Act, $39,000,000.
        (12) For the construction of phase 2 of a barracks complex, 
    17th and B Streets, at Fort Lewis, Washington, authorized by 
    section 2101(a) of the Military Construction Authorization Act for 
    Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
    1280), $50,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1), (2), and (3) of subsection (a);
        (2) $18,000,000 (the balance of the amount authorized under 
    section 2101(a) for construction of a barracks complex, Main Post, 
    at Fort Benning, Georgia);
        (3) $100,000,000 (the balance of the amount authorized under 
    section 2101(a) for construction of a barracks complex, Capron 
    Avenue, at Schofield Barracks, Hawaii);
        (4) $13,200,000 (the balance of the amount authorized under 
    section 2101(a) for construction of a combined arms collective 
    training facility at Fort Riley, Kansas);
        (5) $50,000,000 (the balance of the amount authorized under 
    section 2101(a) for construction of a barracks complex, Range Road, 
    at Fort Campbell, Kentucky); and
        (6) $25,000,000 (the balance of the amount authorized under 
    section 2101(a) for construction of a consolidated maintenance 
    complex at Fort Sill, Oklahoma).
    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (12) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by the following:
        (1) $18,596,000, which represents savings resulting from 
    adjustments to foreign currency exchange rates for military 
    construction, military family housing construction, and military 
    family housing support outside the United States.
        (2) $29,350,000, which represents savings resulting from 
    adjustments in the accounting of civilian personnel benefits.
        (3) $16,740,000, which represents savings resulting from 
    reductions in supervision, inspection, and overhead costs.
        (4) $18,000,000, which represents savings resulting from lower-
    than-expected inflation.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2002 PROJECTS.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1281) is amended--
        (1) in the item relating to Fort Carson, Colorado, by striking 
    ``$66,000,000'' in the amount column and inserting ``$67,000,000''; 
    and
        (2) in the item relating to Fort Jackson, South Carolina, by 
    striking ``$65,650,000'' in the amount column and inserting 
    ``$68,650,000''.
    (b) Conforming Amendments.--Section 2104(b) of that Act (115 Stat. 
1284) is amended--
        (1) in paragraph (3), by striking ``$41,000,000'' and inserting 
    ``$42,000,000''; and
        (2) in paragraph (4), by striking ``$36,000,000'' and inserting 
    ``$39,000,000''.

SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2001 PROJECT.

    The table in section 2101(b) of the Military Construction 
Authorization Act for Fiscal Year 2001 (division B of the Floyd D. 
Spence National Defense Authorization Act for Fiscal Year 2001, as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-390) is amended 
by striking ``Camp Page'' in the installation or location column and 
inserting ``Camp Stanley''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Modification of authority to carry out certain fiscal year 
          2002 projects.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air             $3,000,000
                                  Station, Yuma.
California.....................  Auxiliary Landing            $6,150,000
                                  Field, San Diego (San
                                  Clemente Island).....
                                 Marine Corps Air-           $39,470,000
                                  Ground Combat Center,
                                  Twentynine Palms.....
                                 Marine Corps Air            $11,930,000
                                  Station, Camp
                                  Pendleton............
                                 Marine Corps Air            $12,210,000
                                  Station, Miramar.....
                                 Marine Corps Base,          $84,040,000
                                  Camp Pendleton.......
                                 Marine Corps Logistics       $4,450,000
                                  Base, Barstow........
                                 Naval Air Station,          $35,855,000
                                  Lemoore.
                                 Naval Air Warfare            $6,760,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Air Warfare           $10,100,000
                                  Center, China Lake...
                                 Naval Construction          $10,170,000
                                  Training Center, Port
                                  Hueneme..............
                                 Naval Post Graduate          $9,020,000
                                  School, Monterey.....
                                 Naval Station, San          $12,210,000
                                  Diego................
Connecticut....................  Naval Submarine Base,        $7,880,000
                                  New London...........
District of Columbia...........  Marine Corps Barracks.       $3,700,000
                                 Naval District,              $2,690,000
                                  Washington.
Florida........................  Naval Air Station,          $13,342,000
                                  Jacksonville.
                                 Naval Air Station,             $990,000
                                  Pensacola.
                                 Naval School Explosive       $6,350,000
                                  Ordnance Detachment,
                                  Eglin................
                                 Naval Station, Mayport       $1,900,000
                                 Naval Surface Warfare       $10,700,000
                                  Center Coastal
                                  Systems Station,
                                  Panama City..........
Georgia........................  Naval Submarine Base,        $1,580,000
                                  Kings Bay.
Hawaii.........................  Marine Corps Base.....       $9,500,000
                                 Naval Shipyard, Pearl       $18,500,000
                                  Harbor.
                                 Naval Station, Pearl        $34,090,000
                                  Harbor.
Illinois.......................  Naval Training Center,      $83,190,000
                                  Great Lakes.
Indiana........................  Naval Surface Warfare       $11,610,000
                                  Center, Crane........
Maine..........................  Naval Air Station,           $9,830,000
                                  Brunswick.
                                 Naval Shipyard,             $15,200,000
                                  Kittery-Portsmouth.
Maryland.......................  Naval Air Facility,          $9,680,000
                                  Andrews Air Force
                                  Base.................
                                 Naval Surface Warfare       $12,900,000
                                  Center, Carderock
                                  Division.............
                                 United States Naval          $1,800,000
                                  Academy.
Mississippi....................  Naval Air Station,           $2,850,000
                                  Meridian.
                                 Naval Construction           $5,460,000
                                  Battalion Center,
                                  Gulfport.............
                                 Naval Station,              $25,305,000
                                  Pascagoula.
New Jersey.....................  Naval Air Warfare            $5,200,000
                                  Center, Lakehurst.
                                 Naval Weapons Station,       $5,600,000
                                  Earle................
North Carolina.................  Marine Corps Air             $6,040,000
                                  Station, Cherry Point.
                                 Marine Corps Air             $6,920,000
                                  Station, New River.
                                 Marine Corps Base,           $9,570,000
                                  Camp Lejeune.
Rhode Island...................  Naval Station, Newport      $15,900,000
South Carolina.................  Marine Corps Air            $13,700,000
                                  Station, Beaufort....
                                 Marine Corps Recruit        $10,490,000
                                  Depot, Parris Island.
                                 Naval Weapons Station,       $5,740,000
                                  Charleston...........
Texas..........................  Naval Air Station,           $7,150,000
                                  Corpus Christi.
                                 Naval Station,               $5,000,000
                                  Ingleside.
                                 Naval Air Station,           $6,210,000
                                  Kingsville.
Virginia.......................  Marine Corps Combat         $24,864,000
                                  Development Command,
                                  Quantico.............
                                 Naval Air Station           $16,490,000
                                  Oceana.
                                 Naval Amphibious Base,       $9,770,000
                                  Little Creek.
                                 Naval Shipyard,             $36,470,000
                                  Norfolk, Portsmouth.
                                 Naval Station, Norfolk     $168,965,000
                                 Naval Support                $2,260,000
                                  Activity, Norfolk.
                                 Naval Surface Warfare       $15,830,000
                                  Center, Dahlgren.....
                                 Naval Weapons Station,      $15,020,000
                                  Yorktown.
Washington.....................  Naval Air Station,          $17,580,000
                                  Whidbey Island.
                                 Naval Magazine, Indian       $4,030,000
                                  Island.
                                 Naval Station,              $45,870,000
                                  Bremerton.
                                 Naval Submarine Base,       $22,310,000
                                  Bangor.
                                 Naval Undersea Warfare       $7,500,000
                                  Center, Keyport......
                                 Puget Sound Naval           $57,132,000
                                  Shipyard, Bremerton..
                                 Strategic Weapons            $7,340,000
                                  Facility, Bangor.
Various Locations..............  Host Nation                  $1,000,000
                                  Infrastructure.
                                                        ----------------
                                     Total.............   $1,084,363,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(2), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the locations outside the United States, and 
in the amounts, set forth in the following table:


                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $25,970,000
                                  Bahrain...............
Cuba...........................  Naval Station,               $4,280,000
                                  Guantanamo Bay........
Diego Garcia...................  Diego Garcia, Naval         $11,090,000
                                  Support Facility......
Greece.........................  Naval Support Activity,      $6,800,000
                                  Joint Headquarters
                                  Command, Larissa......
Guam...........................  Commander, United           $13,400,000
                                  States Naval Forces,
                                  Guam..................
Iceland........................  Naval Air Station,          $14,920,000
                                  Keflavik.
Italy..........................  Naval Air Station,          $55,660,000
                                  Sigonella.
Spain..........................  Naval Station, Rota....     $18,700,000
                                                         ---------------
                                     Total..............    $150,820,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore.  178 Units..................   $40,981,000
                                          Twentynine Palms...........  76 Units...................   $19,425,000
Connecticut.............................  Naval Submarine Base, New    100 Units..................   $24,415,000
                                           London....................
Florida.................................  Naval Station, Mayport.....  1 Unit.....................      $329,000
Hawaii..................................  Marine Corps Base, Kaneohe   65 Units...................   $24,797,000
                                           Bay.......................
Maine...................................  Naval Air Station,           22 Units...................    $5,000,000
                                           Brunswick.................
Mississippi.............................  Naval Air Station, Meridian  56 Units...................    $9,755,000
North Carolina..........................  Marine Corps Base, Camp      317 Units..................   $43,650,000
                                           Lejeune...................
Virginia................................  Marine Corps Base, Quantico  290 Units..................   $41,843,000
 United Kingdom.........................  Joint Maritime Facility,     62 Units...................   $18,524,000
                                           St. Mawgan................
                                                                                                   -------------
                                                                           Total..................  $228,719,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriation in section 2204(a)(5)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $11,281,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(5)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $139,468,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Navy in the total amount of $2,576,381,000, as 
follows:
        (1) For military construction projects inside the United States 
    authorized by section 2201(a), $1,025,598,000.
        (2) For military construction projects outside the United 
    States authorized by section 2201(b), $148,250,000.
        (3) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $26,187,000.
        (4) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $95,570,000.
        (5) For military family housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $379,468,000.
            (B) For support of military family housing (including 
        functions described in section 2833 of title 10, United States 
        Code), $867,788,000.
        (6) For replacement of a pier at Naval Station, Norfolk, 
    Virginia, authorized by section 2201(a) of the Military 
    Construction Authorization Act for Fiscal Year 2002 (division B of 
    Public Law 107-107; 115 Stat. 1287), as amended by section 2205 of 
    this Act, $33,520,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a);
        (2) $10,645,000 (the balance of the amount authorized under 
    section 2201(a) for a bachelors enlisted quarters shipboard ashore, 
    Naval Station, Pascagoula, Mississippi);
        (3) $48,120,000 (the balance of the amount authorized under 
    section 2201(a) for a bachelors enlisted quarters shipboard ashore, 
    Naval Station, Norfolk, Virginia); and
        (4) $2,570,000 (the balance of the amount authorized under 
    section 2201(b) for a quality of life support facility, Naval Air 
    Station Sigonella, Italy).
    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by the following:
        (1) $3,992,000, which represents savings resulting from 
    adjustments to foreign currency exchange rates for military 
    construction, military family housing construction, and military 
    family housing support outside the United States.
        (2) $10,470,000, which represents savings resulting from 
    adjustments in the accounting of civilian personnel benefits.
        (3) $15,017,000, which represents savings resulting from 
    reductions in supervision, inspection, and overhead costs.
        (4) $14,000,000, which represents savings resulting from lower-
    than-expected inflation.

SEC. 2205. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2002 PROJECTS.

    (a) Military Construction Project at Naval Station, Norfolk, 
Virginia.--The table in section 2201(a) of the Military Construction 
Authorization Act for Fiscal Year 2002 (division B of Public Law 107-
107; 115 Stat. 1286) is amended--
        (1) in the item relating to Naval Station, Norfolk, Virginia, 
    by striking ``$139,270,000'' in the amount column and inserting 
    ``$139,550,000''; and
        (2) by striking the amount identified as the total in the 
    amount column and inserting ``$1,059,030,000''.
    (b) Military Family Housing at Quantico, Virginia.--The table in 
section 2202(a) of that Act (115 Stat. 1288) is amended in the item 
relating to Marine Corps Combat Development Command, Quantico, 
Virginia, by striking ``60 Units'' in the purpose column and inserting 
``39 Units''.
    (c) Conforming Amendment.--Section 2204(b)(2) of that Act (115 
Stat. 1289) is amended by striking ``$33,240,000'' and inserting 
``$33,520,000''.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Authority for use of military construction funds for 
          construction of public road near Aviano Air Base, Italy, to 
          replace road closed for force protection purposes.

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
inside the United States, and in the amounts, set forth in the 
following table:


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alaska.........................  Clear Air Station......     $14,400,000
                                 Eielson Air Force Base.     $41,100,000
Arizona........................  Davis-Monthan Air Force     $19,270,000
                                  Base.
                                 Luke Air Force Base....     $13,000,000
Arkansas.......................  Little Rock Air Force       $25,600,000
                                  Base.
California.....................  Beale Air Force Base...     $11,740,000
                                 Travis Air Force Base..     $33,469,000
                                 Vandenberg Air Force        $10,500,000
                                  Base.
Colorado.......................  Buckley Air National        $17,700,000
                                  Guard Base.
                                 Peterson Air Force Base      $5,500,000
                                 Schriever Air Force          $5,700,000
                                  Base.
                                 United States Air Force      $4,200,000
                                  Academy.
District of Columbia...........  Bolling Air Force Base.      $5,000,000
Florida........................  Avon Park Air Force          $2,000,000
                                  Range.
                                 Elgin Air Force Base...      $4,250,000
                                 Hurlburt Field.........     $15,000,000
                                 MacDill Air Force Base.     $20,000,000
Georgia........................  Robins Air Force Base..     $29,400,000
Hawaii.........................  Hickam Air Force Base..      $1,350,000
Kansas.........................  McConnell Air Force          $7,500,000
                                  Base.
Louisiana......................  Barksdale Air Force         $22,900,000
                                  Base.
Maryland.......................  Andrews Air Force Base.      $9,600,000
Massachusetts..................  Hanscom Air Force Base.      $7,700,000
Mississippi....................  Keesler Air Force Base.     $22,000,000
Nebraska.......................  Offutt Air Force Base..     $11,000,000
Nevada.........................  Nellis Air Force Base..     $56,850,000
New Jersey.....................  McGuire Air Force Base.     $29,831,000
New Mexico.....................  Cannon Air Force Base..      $4,650,000
                                 Holloman Air Force Base      $4,650,000
                                 Kirtland Air Force Base     $21,900,000
North Carolina.................  Pope Air Force Base....      $9,700,000
North Dakota...................  Minot Air Force Base...      $5,000,000
Ohio...........................  Wright-Patterson Air        $25,000,000
                                  Force Base.
Oklahoma.......................  Altus Air Force Base...     $14,800,000
                                 Vance Air Force Base...      $4,800,000
South Carolina.................  Shaw Air Force Base....      $6,800,000
South Dakota...................  Ellsworth Air Force         $13,200,000
                                  Base.
Texas..........................  Goodfellow Air Force        $10,600,000
                                  Base.
                                 Lackland Air Force Base     $37,300,000
                                 Lackland Air Force Base     $10,000,000
                                  (Camp Bullis).........
                                 Laughlin Air Force Base      $8,000,000
                                 Sheppard Air Force Base     $16,000,000
Utah...........................  Hill Air Force Base....     $14,500,000
Virginia.......................  Langley Air Force Base.     $70,940,000
                                                         ---------------
                                 Total..................    $724,400,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(2), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations and locations 
outside the United States, and in the amounts, set forth in the 
following table:


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Diego Garcia...................  Diego Garcia...........     $17,100,000
Germany........................  Ramstein Air Force Base     $71,783,000
Guam...........................  Andersen Air Force Base     $31,000,000
Italy..........................  Aviano Air Force Base..      $6,600,000
Japan..........................  Kadena Air Force Base..      $6,000,000
Korea..........................  Osan Air Base..........     $15,100,000
Spain..........................  Naval Station, Rota....     $31,818,000
Turkey.........................  Incirlik Air Force Base      $1,550,000
United Kingdom.................  Royal Air Force,            $19,000,000
                                  Fairford.
                                 Royal Air Force,            $13,400,000
                                  Lakenheath.
Wake Island....................  Wake Island............     $24,900,000
                                                         ---------------
                                     Total..............    $238,251,000
------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(3), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installation and location, and 
in the amount, set forth in the following table:


                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
            Location                   Installation           Amount
------------------------------------------------------------------------
Unspecified Worldwide..........  Classified Location....     $24,993,000
                                                         ---------------
                                     Total..............     $24,993,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations, for the purposes, and in the amounts 
set forth in the following table:


                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Luke Air Force Base........  140 Units..................   $18,954,000
California..............................  Travis Air Force Base......  110 Units..................   $24,320,000
Colorado................................  Peterson Air Force Base....  2 Units....................      $959,000
                                          United States Air Force      71 Units...................   $12,424,000
                                           Academy...................
Delaware................................  Dover Air Force Base.......  112 Units..................   $19,615,000
Florida.................................  Eglin Air Force Base.......  Housing Office.............      $597,000
                                          Eglin Air Force Base.......  134 Units..................   $15,906,000
                                          MacDill Air Force Base.....  96 Units...................   $18,086,000
Hawaii..................................  Hickam Air Force Base......  96 Units...................   $29,050,000
Idaho...................................  Mountain Home Air Force      95 Units...................   $24,392,000
                                           Base......................
Kansas..................................  McConnell Air Force Base...  Housing Maintenance            $1,514,000
                                                                        Facility..................
Maryland................................  Andrews Air Force Base.....  53 Units...................    $9,838,000
                                          Andrews Air Force Base.....  52 Units...................    $8,807,000
Mississippi.............................  Columbus Air Force Base....  Housing Office.............      $412,000
                                          Keesler Air Force Base.....  117 Units..................   $16,505,000
Missouri................................  Whiteman Air Force Base....  97 Units...................   $17,107,000
Montana.................................  Malmstrom Air Force Base...  18 Units...................    $4,717,000
New Mexico..............................  Holloman Air Force Base....  101 Units..................   $20,161,000
North Carolina..........................  Pope Air Force Base........  Housing Maintenance              $991,000
                                                                        Facility..................
                                          Seymour Johnson Air Force    126 Units..................   $18,615,000
                                           Base......................
North Dakota............................  Grand Forks Air Force Base.  150 Units..................   $30,140,000
                                          Minot Air Force Base.......  112 Units..................   $21,428,000
                                          Minot Air Force Base.......  102 Units..................   $20,315,000
Oklahoma................................  Vance Air Force Base.......  59 Units...................   $11,423,000
South Dakota............................  Ellsworth Air Force Base...  Housing Maintenance              $447,000
                                                                        Facility..................
                                          Ellsworth Air Force Base...  22 Units...................    $4,794,000
Texas...................................  Dyess Air Force Base.......  85 Units...................   $14,824,000
                                          Randolph Air Force Base....  Housing Maintenance              $447,000
                                                                        Facility..................
                                          Randolph Air Force Base....  112 Units..................   $14,311,000
Virginia................................  Langley Air Force Base.....  Housing Office.............    $1,193,000
Germany.................................  Ramstein Air Force Base....  19 Units...................    $8,534,000
Korea...................................  Osan Air Base..............  113 Units..................   $35,705,000
                                          Osan Air Base..............  Housing Supply Warehouse...      $834,000
United Kingdom..........................  Royal Air Force, Lakenheath  Housing Office and             $2,203,000
                                                                        Maintenance Facility......
                                                                      ------------------------------
                                          Total......................                               $429,568,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(6)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $34,188,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, Unites States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$226,068,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of the Air Force in the total amount of 
$2,633,738,000, as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2301(a), $717,300,000.
        (2) For military construction projects outside the United 
    States authorized by section 2301(b), $238,251,000.
        (3) For military construction projects at unspecified worldwide 
    locations authorized by section 2301(c), $24,993,000.
        (4) For unspecified minor construction projects authorized by 
    section 2805 of title 10, United States Code, $11,500,000.
        (5) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $82,820,000.
        (6) For military housing functions:
            (A) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $689,824,000.
            (B) For support of military family housing (including 
        functions described in section 2833 of title 10, United States 
        Code), $869,050,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2301 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1), (2) and (3) of subsection (a); and
        (2) $7,100,000 (the balance of the amount authorized under 
    section 2301(a) for construction of a consolidated base engineer 
    complex at Altus Air Force Base, Oklahoma).
    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (6) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by the following:
        (1) $19,063,000, which represents savings resulting from 
    adjustments to foreign currency exchange rates for military 
    construction, military family housing construction, and military 
    family housing support outside the United States.
        (2) $15,306,000, which represents savings resulting from 
    reductions in supervision, inspection, and overhead costs.
        (3) $16,000,000, which represents savings resulting from lower-
    than-expected inflation.

SEC. 2305. AUTHORITY FOR USE OF MILITARY CONSTRUCTION FUNDS FOR 
              CONSTRUCTION OF PUBLIC ROAD NEAR AVIANO AIR BASE, ITALY, 
              TO REPLACE ROAD CLOSED FOR FORCE PROTECTION PURPOSES.

    (a) Authority To Use Funds.--Using amounts authorized to be 
appropriated by section 2304(a)(2), the Secretary of the Air Force may 
carry out a project to provide a public road, and associated 
improvements, to replace a public road adjacent to Aviano Air Base, 
Italy, that has been closed for force protection purposes.
    (b) Scope of Authority.--(1) The authority of the Secretary to 
carry out the project referred to in subsection (a) shall include 
authority as follows:
        (A) To acquire property for the project for transfer to a host 
    nation authority.
        (B) To provide funds to a host nation authority to acquire 
    property for the project.
        (C) To make a contribution to a host nation authority for 
    purposes of carrying out the project.
        (D) To provide vehicle and pedestrian access to landowners 
    affected by the project.
    (2) The acquisition of property using the authority in subparagraph 
(A) or (B) of paragraph (1) may be made regardless of whether or not 
ownership of such property will vest in the United States.
    (c) Inapplicability of Certain Real Property Management 
Requirement.--Section 2672(a)(1)(B) of title 10, United States Code, 
shall not apply with respect to any acquisition of interests in land 
for purposes of the project authorized by subsection (a).

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.
Sec. 2405. Modification of authority to carry out certain fiscal year 
          2000 project.
Sec. 2406. Modification of authority to carry out certain fiscal year 
          1999 project.
Sec. 2407. Modification of authority to carry out certain fiscal year 
          1997 project.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations inside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Chemical Demilitarization......  Pine Bluff, Arkansas...     $18,937,000
Defense Intelligence Agency....  Bolling Air Force Base,    $111,958,000
                                  District of Columbia..
Defense Logistics Agency.......  Defense Supply Center,       $5,500,000
                                  Richmond, Virginia....
                                 Naval Air Station, New       $9,500,000
                                  Orleans, Louisiana....
                                 Travis Air Force Base,      $16,000,000
                                  California............
Defense Threat Reduction Agency  Fort Belvoir, Virginia.     $76,388,000
Department of Defense            Fort Bragg, North            $2,036,000
 Dependents Schools............   Carolina..............
                                 Fort Jackson, South          $2,506,000
                                  Carolina..............
                                 Marine Corps Base, Camp     $12,138,000
                                  Lejeune, North
                                  Carolina..............
                                 Marine Corps Base,           $1,418,000
                                  Quantico, Virginia....
                                 United States Military       $4,347,000
                                  Academy, West Point,
                                  New York..............
Joint Chiefs of Staff..........  Peterson Air Force          $25,000,000
                                  Base, Colorado.
Missile Defense Agency.........  Kauai, Hawaii..........     $23,400,000
National Security Agency.......  Fort Meade, Maryland...      $4,484,000
Special Operations Command.....  Dam Neck, Virginia.....      $3,900,000
                                 Fort Bragg, North           $30,800,000
                                  Carolina.
                                 Hurlburt Field, Florida     $11,100,000
                                 Naval Amphibious Base,      $14,300,000
                                  Little Creek, Virginia
                                 Stennis Space Center,        $5,000,000
                                  Mississippi.
TRICARE Management Activity....  Elmendorf Air Force         $10,400,000
                                  Base, Alaska..........
                                 Hickam Air Force Base,       $2,700,000
                                  Hawaii.
Washington Headquarters          District of Columbia...      $2,500,000
 Services......................
                                                         ---------------
                                     Total..............    $394,312,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations and locations outside the 
United States, and in the amounts, set forth in the following table:


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Logistics Agency.......  Andersen Air Force          $17,586,000
                                  Base, Guam............
                                 Naval Forces Marianas        $6,000,000
                                  Islands, Guam.........
                                 Naval Station, Rota,        $23,400,000
                                  Spain.................
                                 Royal Air Force,            $17,000,000
                                  Fairford, United
                                  Kingdom...............
                                 Yokota Air Base, Japan.     $23,000,000
Department of Defense            Kaiserslautern, Germany        $957,000
 Dependents Schools............
                                 Lajes Field, Azores,         $1,192,000
                                  Portugal..............
                                 Seoul, Korea...........     $31,683,000
                                 Supreme Headquarters,        $1,573,000
                                  Allied Powers Europe,
                                  Belgium...............
                                 Spangdahlem Air Base,          $997,000
                                  Germany...............
                                 Vicenza, Italy.........      $2,117,000
TRICARE Management Activity....  Naval Support Activity,     $41,449,000
                                  Naples, Italy.........
                                 Spangdahlem Air Base,       $39,629,000
                                  Germany...............
                                                         ---------------
                                     Total..............    $206,583,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2404(a)(8)(A), the Secretary of Defense may improve existing 
military family housing units in an amount not to exceed $5,480,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(6), the Secretary of Defense may 
carry out energy conservation projects under section 2865 of title 10, 
United States Code, in the amount of $34,531,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for military 
construction, land acquisition, and military family housing functions 
of the Department of Defense (other than the military departments) in 
the total amount of $1,434,795,000, as follows:
        (1) For military construction projects inside the United States 
    authorized by section 2401(a), $357,712,000.
        (2) For military construction projects outside the United 
    States authorized by section 2401(b), $206,583,000.
        (3) For unspecified minor construction projects under section 
    2805 of title 10, United States Code, $16,293,000.
        (4) For contingency construction projects of the Secretary of 
    Defense under section 2804 of title 10, United States Code, 
    $10,000,000.
        (5) For architectural and engineering services and construction 
    design under section 2807 of title 10, United States Code, 
    $45,532,000.
        (6) For energy conservation projects authorized by section 
    2403, $34,531,000.
        (7) For base closure and realignment activities as authorized 
    by the Defense Base Closure and Realignment Act of 1990 (part A of 
    title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), 
    $565,138,000.
        (8) For military family housing functions:
            (A) For improvement of military family housing and 
        facilities, $5,480,000.
            (B) For support of military family housing (including 
        functions described in section 2833 of title 10, United States 
        Code), $42,432,000.
            (C) For credit to the Department of Defense Family Housing 
        Improvement Fund established by section 2883(a)(1) of title 10, 
        United States Code, $2,000,000.
        (9) For payment of a claim against the Hospital Replacement 
    project at Elmendorf Air Force Base, Alaska, $10,400,000.
        (10) For the construction of phase 4 of an ammunition 
    demilitarization facility at Pueblo Chemical Activity, Colorado, 
    authorized by section 2401(a) of the Military Construction 
    Authorization Act for Fiscal Year 1997 (division B of Public Law 
    104-201; 110 Stat. 2775), as amended by section 2406 of the 
    Military Construction Authorization Act for Fiscal Year 2000 
    (division B of Public Law 106-65; 113 Stat. 839) and section 2407 
    of this Act, $38,000,000.
        (11) For the construction of phase 5 of an ammunition 
    demilitarization facility at Newport Army Depot, Indiana, 
    authorized by section 2401(a) of the Military Construction 
    Authorization Act for Fiscal Year 1999 (division B of Public Law 
    105-261; 112 Stat. 2193), as amended by section 2406 of this Act, 
    $61,494,000.
        (12) For the construction of phase 5 of an ammunition 
    demilitarization facility at Aberdeen Proving Ground, Maryland, 
    authorized by section 2401(a) of the Military Construction 
    Authorization Act for Fiscal Year 1999 (division B of Public Law 
    105-261; 112 Stat. 2193), as amended by section 2406 of the 
    Military Construction Authorization Act for Fiscal Year 2002 
    (division B of Public Law 107-107; 115 Stat. 1299), $20,600,000.
        (13) For the construction of phase 3 of an ammunition 
    demilitarization facility at Blue Grass Army Depot, Kentucky, 
    authorized by section 2401(a) of the Military Construction 
    Authorization Act for Fiscal Year 2000 (division B of Public Law 
    106-65; 113 Stat. 835), as amended by section 2405 of the Military 
    Construction Authorization Act for Fiscal Year 2002 (division B of 
    Public Law 107-107; 115 Stat. 1298) and section 2405 of this Act, 
    $10,300,000.
        (14) For the construction of phase 3 of an ammunition 
    demilitarization support facility at Blue Grass Army Depot, 
    Kentucky, authorized by section 2401(a) of the Military 
    Construction Authorization Act for Fiscal Year 2000 (division B of 
    Public Law 106-65; 113 Stat. 835), $8,300,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed--
        (1) the total amount authorized to be appropriated under 
    paragraphs (1) and (2) of subsection (a); and
        (2) $26,200,000 (the balance of the amount authorized under 
    section 2401(a) for the construction of the Defense Threat 
    Reduction Center, Fort Belvoir, Virginia).
    (c) Adjustments.--The total amount authorized to be appropriated 
pursuant to paragraphs (1) through (14) of subsection (a) is the sum of 
the amounts authorized to be appropriated in such paragraphs, reduced 
by the following:
        (1) $2,976,000, which represents savings resulting from 
    adjustments to foreign currency exchange rates for military 
    construction, military family housing construction, and military 
    family housing support outside the United States.
        (2) $37,000, which represents savings resulting from 
    adjustments in the accounting of civilian personnel benefits.
        (3) $7,414,000, which represents savings resulting from 
    reductions in supervision, inspection, and overhead costs.
        (4) $7,000,000, which represents savings resulting from lower-
    than-expected inflation.

SEC. 2405. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2000 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 2000 (division B of 
Public Law 106-65; 113 Stat. 835), as amended by section 2405 of the 
Military Construction Authorization Act for Fiscal Year 2002 (division 
B of Public Law 107-107; 115 Stat. 1298), is further amended--
        (1) under the agency heading relating to Chemical 
    Demilitarization, in the item relating to Blue Grass Army Depot, 
    Kentucky, by striking ``$254,030,000'' in the amount column and 
    inserting ``$290,325,000''; and
        (2) by striking the amount identified as the total in the 
    amount column and inserting ``$748,245,000''.
    (b) Conforming Amendment.--Section 2405(b)(3) of the Military 
Construction Authorization Act for Fiscal Year 2000 (113 Stat. 839), as 
so amended, is further amended by striking ``$231,230,000'' and 
inserting ``$267,525,000''.

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              1999 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2193), as amended by section 2406 of the 
Military Construction Authorization Act for Fiscal Year 2002 (division 
B of Public Law 107-107; 115 Stat. 1299), is further amended--
        (1) under the agency heading relating to Chemical 
    Demilitarization, in the item relating to Newport Army Depot, 
    Indiana, by striking ``$191,550,000'' in the amount column and 
    inserting ``$293,853,000''; and
        (2) by striking the amount identified as the total in the 
    amount column and inserting ``$829,919,000''.
    (b) Conforming Amendment.--Section 2404(b)(2) of the Military 
Construction Authorization Act for Fiscal Year 1999 (112 Stat. 2196) is 
amended by striking ``$162,050,000'' and inserting ``$264,353,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              1997 PROJECT.

    (a) Modification.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Year 1997 (division B of 
Public Law 104-201; 110 Stat. 2775), as amended by section 2406 of the 
Military Construction Authorization Act for Fiscal Year 2000 (division 
B of Public Law 106-65; 113 Stat. 839), is further amended--
        (1) under the agency heading relating to Chemical 
    Demilitarization Program, in the item relating to Pueblo Chemical 
    Activity, Colorado, by striking ``$203,500,000'' in the amount 
    column and inserting ``$261,000,000''; and
        (2) by striking the amount identified as the total in the 
    amount column and inserting ``$607,454,000''.
    (b) Conforming Amendment.--Section 2406(b)(2) of the Military 
Construction Authorization Act for Fiscal Year 1997 (110 Stat. 2779), 
as so amended, is further amended by striking ``$203,500,000'' and 
inserting ``$261,000,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
Sec. 2502. Authorization of appropriations, NATO.

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    (a) In General.--Funds are hereby authorized to be appropriated for 
fiscal years beginning after September 30, 2002, for contributions by 
the Secretary of Defense under section 2806 of title 10, United States 
Code, for the share of the United States of the cost of projects for 
the North Atlantic Treaty Organization Security Investment program 
authorized by section 2501, in the amount of $168,200,000.
    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to subsection (a) is the amount specified in such subsection, 
reduced by $1,000,000, which represents savings resulting from lower-
than-expected inflation.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) In General.--There are authorized to be appropriated for fiscal 
years beginning after September 30, 2002, for the costs of acquisition, 
architectural and engineering services, and construction of facilities 
for the Guard and Reserve Forces, and for contributions therefor, under 
chapter 1803 of title 10, United States Code (including the cost of 
acquisition of land for those facilities), the following amounts:
        (1) For the Department of the Army--
            (A) for the Army National Guard of the United States, 
        $237,236,000; and
            (B) for the Army Reserve, $99,399,000.
        (2) For the Department of the Navy, for the Naval and Marine 
    Corps Reserve, $75,801,000.
        (3) For the Department of the Air Force--
            (A) for the Air National Guard of the United States, 
        $204,215,000; and
            (B) for the Air Force Reserve, $85,649,000.
    (b) Adjustment.--The total amount authorized to be appropriated 
pursuant to subsection (a)(1)(A) is the amount specified in such 
subsection, reduced by $1,000,000, which represents savings resulting 
from lower-than-expected inflation.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2000 
          projects.
Sec. 2703. Extension of authorizations of certain fiscal year 1999 
          projects.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
              SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
        (1) October 1, 2005; or
        (2) the date of the enactment of an Act authorizing funds for 
    military construction for fiscal year 2006.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects, and facilities, and contributions to the North Atlantic 
Treaty Organization Security Investment program (and authorizations of 
appropriations therefor) for which appropriated funds have been 
obligated before the later of--
        (1) October 1, 2005; or
        (2) the date of the enactment of an Act authorizing funds for 
    fiscal year 2006 for military construction projects, land 
    acquisition, family housing projects and facilities, and 
    contributions to the North Atlantic Treaty Organization Security 
    Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2000 
              PROJECTS.

    (a) Extension of Certain Projects.--Notwithstanding section 2701 of 
the Military Construction Authorization Act for Fiscal Year 2000 
(division B of Public Law 106-65; 113 Stat. 841), authorizations set 
forth in the tables in subsection (b), as provided in section 2302 or 
2601 of that Act, shall remain in effect until October 1, 2003, or the 
date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2004, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:


                               Air Force: Extension of 2000 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Oklahoma..............................  Tinker Air Force Base....  Replace Family Housing (41         $6,000,000
                                                                    Units)......................
Texas.................................  Lackland Air Force Base..  Dormitory....................      $5,300,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 2000 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Virginia..............................  Fort Pickett.............  Multi-Purpose Range Complex-      $13,500,000
                                                                    Heavy.......................
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1999 
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 1999 (division B of 
Public Law 105-261; 112 Stat. 2199), authorizations set forth in the 
table in subsection (b), as provided in section 2302 of that Act and 
extended by section 2702 of the Military Construction Authorization Act 
for Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
1301), shall remain in effect until October 1, 2003, or the date of the 
enactment of an Act authorizing funds for military construction for 
fiscal year 2004, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as follows:


                               Air Force: Extension of 1999 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Delaware..............................  Dover Air Force Base.....  Replace Family Housing (55         $8,988,000
                                                                    Units)......................
Florida...............................  Patrick Air Force Base...  Replace Family Housing (46         $9,692,000
                                                                    Units)......................
New Mexico............................  Kirtland Air Force Base..  Replace Family Housing (37         $6,400,000
                                                                    Units)......................
Ohio..................................  Wright-Patterson Air       Replace Family Housing (40         $5,600,000
                                         Force Base..............   Units)......................
----------------------------------------------------------------------------------------------------------------

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Lease of military family housing in Korea.
Sec. 2802. Modification of alternative authority for acquisition and 
          improvement of military housing.
Sec. 2803. Pilot housing privatization authority for acquisition or 
          construction of military unaccompanied housing.
Sec. 2804. Repeal of source requirements for family housing construction 
          overseas.
Sec. 2805. Availability of energy cost savings realized at military 
          installations.

         Subtitle B--Real Property and Facilities Administration

Sec. 2811. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.
Sec. 2812. Conveyance of surplus real property for natural resource 
          conservation purposes.
Sec. 2813. Modification of demonstration program on reduction in long-
          term facility maintenance costs.
Sec. 2814. Expanded authority to transfer property at military 
          installations to be closed to persons who construct or provide 
          military family housing.

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

Sec. 2821. Transfer of jurisdiction, Fort McClellan, Alabama, to 
          establish Mountain Longleaf National Wildlife Refuge.
Sec. 2822. Land conveyances, lands in Alaska no longer required for 
          National Guard purposes.
Sec. 2823. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2824. Land conveyances, Bluegrass Army Depot, Richmond, Kentucky.
Sec. 2825. Land conveyance, Fort Campbell, Kentucky.
Sec. 2826. Land conveyance, Army Reserve Training Center, Buffalo, 
          Minnesota.
Sec. 2827. Land conveyance, Fort Monmouth, New Jersey.
Sec. 2828. Land conveyance, Fort Bliss, Texas.
Sec. 2829. Land conveyance, Fort Hood, Texas.
Sec. 2830. Land conveyances, Engineer Proving Ground, Fort Belvoir, 
          Virginia.

                        Part II--Navy Conveyances

Sec. 2831. Land conveyance, Marine Corps Air Station, Miramar, San 
          Diego, California.
Sec. 2832. Modification of authority for land transfer and conveyance, 
          Naval Security Group Activity, Winter Harbor, Maine.
Sec. 2833. Land conveyance, Westover Air Reserve Base, Massachusetts.
Sec. 2834. Land conveyance, Naval Station, Newport, Rhode Island.
Sec. 2835. Land exchange and boundary adjustments, Marine Corps Base, 
          Quantico, and Prince William Forest Park, Virginia.

                     Part III--Air Force Conveyances

Sec. 2841. Modification of land conveyance, Los Angeles Air Force Base, 
          California.
Sec. 2842. Land exchange, Buckley Air Force Base, Colorado.
Sec. 2843. Land conveyances, Wendover Air Force Base Auxiliary Field, 
          Nevada.

                        Subtitle D--Other Matters

Sec. 2851. Master plan for use of Navy Annex, Arlington, Virginia.
Sec. 2852. Sale of excess treated water and wastewater treatment 
          capacity, Marine Corps Base, Camp Lejeune, North Carolina.
Sec. 2853. Conveyance of real property, Adak Naval Complex, Alaska, and 
          related land conveyances.
Sec. 2854. Special requirement for adding military installation to 
          closure list.

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

SEC. 2801. LEASE OF MILITARY FAMILY HOUSING IN KOREA.

    (a) Increase in Number of Units Authorized for Lease at Current 
Maximum Amount.--Paragraph (3) of section 2828(e) of title 10, United 
States Code, is amended by striking ``800 units'' and inserting ``1,175 
units''.
    (b) Authority To Lease Additional Number of Units at Increased 
Maximum Amount.--That section is further amended--
        (1) by redesignating paragraphs (4) and (5) as paragraphs (5) 
    and (6), respectively;
        (2) by inserting after paragraph (3) the following new 
    paragraph (4):
    ``(4) In addition to the units of family housing referred to in 
paragraph (1) for which the maximum lease amount is $25,000 per unit 
per year, the Secretary of the Army may lease not more than 2,400 units 
of family housing in Korea subject to a maximum lease amount of $35,000 
per unit per year.'';
        (3) in paragraph (5), as so redesignated, by striking ``and 
    (3)'' and inserting ``(3), and (4)''; and
        (4) in paragraph (6), as so redesignated, by striking 
    ``53,000'' and inserting ``55,775''.

SEC. 2802. MODIFICATION OF ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
              IMPROVEMENT OF MILITARY HOUSING.

    (a) Authorized Utilities and Services.--Section 2872a(b) of title 
10, United States Code, is amended by adding at the end the following 
new paragraphs:
        ``(11) Firefighting and fire protection services.
        ``(12) Police protection services.''.
    (b) Leasing of Housing.--(1) Section 2874 of such title is 
amended--
        (A) by redesignating subsection (b) as subsection (c); and
        (B) by striking subsection (a) and inserting the following new 
    subsections:
    ``(a) Lease Authorized.--The Secretary concerned may enter into 
contracts for the lease of housing units that the Secretary determines 
are suitable for use as military family housing or military 
unaccompanied housing.
    ``(b) Use of Leased Units.--The Secretary concerned shall utilize 
housing units leased under this section as military family housing or 
military unaccompanied housing, as appropriate.''.
    (2) The heading for such section is amended to read as follows:

``Sec. 2874. Leasing of housing''.

    (3) The table of sections at the beginning of subchapter IV of 
chapter 169 of such title is amended by striking the item relating to 
section 2874 and inserting the following new item:

``2874. Leasing of housing.''.

    (c) Repeal of Interim Lease Authority.--(1) Section 2879 of such 
title is repealed.
    (2) The table of sections at the beginning of subchapter IV of 
chapter 169 of such title is amended by striking the item relating to 
section 2879.

SEC. 2803. PILOT HOUSING PRIVATIZATION AUTHORITY FOR ACQUISITION OR 
              CONSTRUCTION OF MILITARY UNACCOMPANIED HOUSING.

    (a) In General.--(1) Subchapter IV of chapter 169 of title 10, 
United States Code, is amended by inserting after section 2881 the 
following new section:

``Sec. 2881a. Pilot projects for acquisition or construction of 
            military unaccompanied housing

    ``(a) Pilot Projects Authorized.--The Secretary of the Navy may 
carry out not more than three pilot projects under the authority of 
this section or another provision of this subchapter to use the private 
sector for the acquisition or construction of military unaccompanied 
housing in the United States, including any territory or possession of 
the United States.
    ``(b) Treatment of Housing; Assignment of Members.--The Secretary 
of the Navy may assign members of the armed forces without dependents 
to housing units acquired or constructed under the pilot projects, and 
such housing units shall be considered as quarters of the United States 
or a housing facility under the jurisdiction of the Secretary for 
purposes of section 403 of title 37.
    ``(c) Basic Allowance for Housing.--(1) The Secretary of Defense 
may prescribe and, under section 403(n) of title 37, pay for members of 
the armed forces without dependents in privatized housing acquired or 
constructed under the pilot projects higher rates of partial basic 
allowance for housing than the rates authorized under paragraph (2) of 
such section.
    ``(2) The partial basic allowance for housing paid for a member at 
a higher rate under this subsection may be paid directly to the private 
sector source of the housing to whom the member is obligated to pay 
rent or other charge for residing in such housing if the private sector 
source credits the amount so paid against the amount owed by the member 
for the rent or other charge.
    ``(d) Funding.--(1) The Secretary of the Navy shall use the 
Department of Defense Military Unaccompanied Housing Improvement Fund 
to carry out activities under the pilot projects.
    ``(2) Subject to 90 days prior notification to the appropriate 
committees of Congress, such additional amounts as the Secretary of 
Defense considers necessary may be transferred to the Department of 
Defense Military Unaccompanied Housing Improvement Fund from amounts 
appropriated for construction of military unaccompanied housing in 
military construction accounts. The amounts so transferred shall be 
merged with and be available for the same purposes and for the same 
period of time as amounts appropriated directly to the Fund.
    ``(e) Reports.--(1) The Secretary of the Navy shall transmit to the 
appropriate committees of Congress a report describing--
        ``(A) each contract for the acquisition of military 
    unaccompanied housing that the Secretary proposes to solicit under 
    the pilot projects;
        ``(B) each conveyance or lease proposed under section 2878 of 
    this title in furtherance of the pilot projects; and
        ``(C) the proposed partial basic allowance for housing rates 
    for each contract as they vary by grade of the member and how they 
    compare to basic allowance for housing rates for other contracts 
    written under the authority of the pilot programs.
    ``(2) The report shall describe the proposed contract, conveyance, 
or lease and the intended method of participation of the United States 
in the contract, conveyance, or lease and provide a justification of 
such method of participation. The report shall be submitted not later 
than 90 days before the date on which the Secretary issues the contract 
solicitation or offers the conveyance or lease.
    ``(f) Expiration.--Notwithstanding section 2885 of this title, the 
authority of the Secretary of the Navy to enter into a contract under 
the pilot programs shall expire September 30, 2007.''.
    (2) The table of sections at the beginning of such subchapter is 
amended by inserting after the item relating to section 2881 the 
following new item:

``2881a. Pilot projects for acquisition or construction of military 
          unaccompanied housing.''.

    (b) Conforming Amendment.--Section 2871(7) of title 10, United 
States Code, is amended by inserting before the period at the end the 
following: ``and transient housing intended to be occupied by members 
of the armed forces on temporary duty''.

SEC. 2804. REPEAL OF SOURCE REQUIREMENTS FOR FAMILY HOUSING 
              CONSTRUCTION OVERSEAS.

    Section 803 of the Military Construction Authorization Act, 1984 
(Public Law 98-115; 10 U.S.C. 2821 note) is repealed.

SEC. 2805. AVAILABILITY OF ENERGY COST SAVINGS REALIZED AT MILITARY 
              INSTALLATIONS.

    Section 2865(b) of title 10, United States Code, is amended by 
striking ``through the end of the fiscal year following the fiscal year 
for which the funds were appropriated'' and inserting ``until 
expended''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON 
              MILITARY TRAINING, TESTING, AND OPERATIONS.

    (a) In General.--Chapter 159 of title 10, United States Code, is 
amended by inserting after section 2684 the following new section:

``Sec. 2684a. Agreements to limit encroachments and other constraints 
            on military training, testing, and operations

    ``(a) Agreements Authorized.--The Secretary of Defense or the 
Secretary of a military department may enter into an agreement with an 
eligible entity described in subsection (b) to address the use or 
development of real property in the vicinity of a military installation 
for purposes of--
        ``(1) limiting any development or use of the property that 
    would be incompatible with the mission of the installation; or
        ``(2) preserving habitat on the property in a manner that--
            ``(A) is compatible with environmental requirements; and
            ``(B) may eliminate or relieve current or anticipated 
        environmental restrictions that would or might otherwise 
        restrict, impede, or otherwise interfere, whether directly or 
        indirectly, with current or anticipated military training, 
        testing, or operations on the installation.
    ``(b) Eligible Entities.--An agreement under this section may be 
entered into with any of the following:
        ``(1) A State or political subdivision of a State.
        ``(2) A private entity that has as its stated principal 
    organizational purpose or goal the conservation, restoration, or 
    preservation of land and natural resources, or a similar purpose or 
    goal, as determined by the Secretary concerned.
    ``(c) Inapplicability of Certain Contract Requirements.--Chapter 63 
of title 31 shall not apply to any agreement entered into under this 
section.
    ``(d) Acquisition and Acceptance of Property and Interests.--(1) An 
agreement with an eligible entity under this section may provide for--
        ``(A) the acquisition by the entity of all right, title, and 
    interest in and to any real property, or any lesser interest in the 
    property, as may be appropriate for purposes of this section; and
        ``(B) the sharing by the United States and the entity of the 
    acquisition costs.
    ``(2) Property or interests may not be acquired pursuant to the 
agreement unless the owner of the property or interests consents to the 
acquisition.
    ``(3) The agreement shall require the entity to transfer to the 
United States, upon the request of the Secretary concerned, all or a 
portion of the property or interest acquired under the agreement or a 
lesser interest therein. The Secretary shall limit such transfer 
request to the minimum property or interests necessary to ensure that 
the property concerned is developed and used in a manner appropriate 
for purposes of this section.
    ``(4) The Secretary concerned may accept on behalf of the United 
States any property or interest to be transferred to the United States 
under the agreement.
    ``(5) For purposes of the acceptance of property or interests under 
the agreement, the Secretary concerned may accept an appraisal or title 
documents prepared or adopted by a non-Federal entity as satisfying the 
applicable requirements of section 301 of the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (42 
U.S.C. 4651) or section 3111 of title 40, if the Secretary concerned 
finds that the appraisal or title documents substantially comply with 
the requirements.
    ``(e) Acquisition of Water Rights.--The authority of the Secretary 
concerned to enter into an agreement under this section for the 
acquisition of real property (or an interest therein) includes the 
authority to support the purchase of water rights from any available 
source when necessary to support or protect the mission of a military 
installation.
    ``(f) Additional Terms and Conditions.--The Secretary concerned may 
require such additional terms and conditions in an agreement under this 
section as the Secretary considers appropriate to protect the interests 
of the United States.
    ``(g) Funding.--(1) Except as provided in paragraph (2), funds 
authorized to be appropriated for operation and maintenance of the 
Army, Navy, Marine Corps, Air Force, or Defense-wide activities may be 
used to enter into agreements under this section.
    ``(2) In the case of a military installation operated primarily 
with funds authorized to be appropriated for research, development, 
test, and evaluation, funds authorized to be appropriated for the Army, 
Navy, Marine Corps, Air Force, or Defense-wide activities for research, 
development, test, and evaluation may be used to enter into agreements 
under this section with respect to the installation.
    ``(h) Definitions.--In this section:
        ``(1) The term `Secretary concerned' means the Secretary of 
    Defense or the Secretary of a military department.
        ``(2) The term `State' includes the District of Columbia, the 
    Commonwealth of Puerto Rico, the Commonwealth of the Northern 
    Marianas, and the territories and possessions 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 
2684 the following new item:

``2684a. Agreements to limit encroachments and other constraints on 
          military training, testing, and operations.''.

SEC. 2812. CONVEYANCE OF SURPLUS REAL PROPERTY FOR NATURAL RESOURCE 
              CONSERVATION PURPOSES.

    (a) Conveyance Authority.--(1) Chapter 159 of title 10, United 
States Code, is amended by inserting after section 2694 the following 
new section:

``Sec. 2694a. Conveyance of surplus real property for natural resource 
            conservation

    ``(a) Authority to Convey.--The Secretary of a military department 
may convey to an eligible entity described in subsection (b) any 
surplus real property that--
        ``(1) is under the administrative control of the Secretary;
        ``(2) is suitable and desirable for conservation purposes;
        ``(3) has been made available for public benefit transfer for a 
    sufficient period of time to potential claimants; and
        ``(4) is not subject to a pending request for transfer to 
    another Federal agency or for conveyance to any other qualified 
    recipient for public benefit transfer under the real property 
    disposal processes and authorities under subtitle I of title 40.
    ``(b) Eligible Entities.--The conveyance of surplus real property 
under this section may be made to any of the following:
        ``(1) A State or political subdivision of a State.
        ``(2) A nonprofit organization that exists for the primary 
    purpose of conservation of natural resources on real property.
    ``(c) Revisionary Interest and Other Deed Requirements.--(1) The 
deed of conveyance of any surplus real property conveyed under this 
section shall require the property to be used and maintained for the 
conservation of natural resources in perpetuity. If the Secretary 
concerned determines at any time that the property is not being used or 
maintained for such purpose, then, at the option of the Secretary, all 
or any portion of the property shall revert to the United States.
    ``(2) The deed of conveyance may permit the recipient of the 
property--
        ``(A) to convey the property to another eligible entity, 
    subject to the approval of the Secretary concerned and subject to 
    the same covenants and terms and conditions as provided in the deed 
    from the United States; and
        ``(B) to conduct incidental revenue-producing activities on the 
    property that are compatible with the use of the property for 
    conservation purposes.
    ``(3) The deed of conveyance may contain such additional terms, 
reservations, restrictions, and conditions as the Secretary concerned 
considers appropriate to protect the interests of the United States.
    ``(d) Release of Covenants.--With the concurrence of the Secretary 
of Interior, the Secretary concerned may grant a release from a 
covenant included in the deed of conveyance of real property conveyed 
under this section, subject to the condition that the recipient of the 
property pay the fair market value, as determined by the Secretary 
concerned, of the property at the time of the release of the covenant. 
The Secretary concerned may reduce the amount required to be paid under 
this subsection to account for the value of the natural resource 
conservation benefit that has accrued to the United States during the 
period the covenant was in effect, if the benefit was not taken into 
account in determining the original consideration for the conveyance.
    ``(e) Congressional Notification.--The Secretary concerned may not 
approve of the reconveyance of real property under subsection (c) or 
grant the release of a covenant under subsection (d) until the 
Secretary notifies the appropriate committees of Congress of the 
proposed reconveyance or release and a period of 21 days elapses from 
the date the notification is received by the committees.
    ``(f) Limitations.--The conveyance of real property under this 
section shall not be used as a condition of allowing any defense 
activity under any Federal, State, or local permitting or review 
process. The Secretary concerned may make the conveyance, with the 
restrictions specified in subsection (c), to establish a mitigation 
bank, but only if the establishment of the mitigation bank does not 
occur in order to satisfy any condition for permitting military 
activity under a Federal, State, or local permitting or review process.
    ``(g) Consideration.--In fixing the consideration for the 
conveyance of real property under this section, or in determining the 
amount of any reduction of the amount to be paid for the release of a 
covenant under subsection (d), the Secretary concerned shall take into 
consideration any benefit that has accrued or may accrue to the United 
States from the use of such property for the conservation of natural 
resources.
    ``(h) Relation to Other Conveyance Authorities.--(1) The Secretary 
concerned may not make a conveyance under this section of any real 
property to be disposed of under a base closure law in a manner that is 
inconsistent with the requirements and conditions of the base closure 
law.
    ``(2) In the case of real property on Guam, the Secretary concerned 
may not make a conveyance under this section unless the Government of 
Guam has been first afforded the opportunity to acquire the real 
property as authorized by section 1 of Public Law 106-504 (114 Stat. 
2309).
    ``(i) Definitions.--In this section:
        ``(1) The term `appropriate committees of Congress' has the 
    meaning given such term in section 2801 of this title.
        ``(2) The term `base closure law' means the following:
            ``(A) Section 2687 of this title.
            ``(B) Title II of the Defense Authorization Amendments and 
        Base Closure and Realignment Act of 1988 (10 U.S.C. 2687 note).
            ``(C) The Defense Base Closure and Realignment Act of 1990 
        (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note).
            ``(D) Any other similar authority for the closure or 
        realignment of military installations that is enacted after the 
        date of the enactment of the Bob Stump National Defense 
        Authorization Act for Fiscal Year 2003.
        ``(3) The term `Secretary concerned' means the Secretary of a 
    military department.
        ``(4) The term `State' includes the District of Columbia, the 
    Commonwealth of Puerto Rico, the Commonwealth of the Northern 
    Marianas, and the territories and possessions of the United 
    States.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 2694 the 
following new item:

``2694a. Conveyance of surplus real property for natural resource 
          conservation.''.

    (b) Acceptance of Funds to Cover Administrative Expenses.--Section 
2695(b) of such title is amended by adding at the end the following new 
paragraph:
        ``(5) The conveyance of real property under section 2694a of 
    this title.''.
    (c) Agreements With Nonprofit Natural Resource Conservation 
Organizations.--Section 2701(d) of such title is amended--
        (1) in the subsection heading, by striking ``Agencies'' and 
    inserting ``Entities'';
        (2) in paragraph (1)--
            (A) by striking ``with any State or local government 
        agency, or with any Indian tribe,'' and inserting ``any State 
        or local government agency, any Indian tribe, or any nonprofit 
        conservation organization''; and
            (B) by striking ``the agency'' and inserting ``the agency, 
        Indian tribe, or organization''; and
        (3) by striking paragraph (4), as redesignated by section 
    311(2) of this Act, and inserting the following new paragraph:
        ``(4) Definitions.--In this subsection:
            ``(A) The term `Indian tribe' has the meaning given such 
        term in section 101(36) of CERCLA (42 U.S.C. 9601(36)).
            ``(B) The term `nonprofit conservation organization' means 
        any non-governmental nonprofit organization whose primary 
        purpose is conservation of open space or natural resources.''.

SEC. 2813. MODIFICATION OF DEMONSTRATION PROGRAM ON REDUCTION IN LONG-
              TERM FACILITY MAINTENANCE COSTS.

    (a) Administrator of Program.--Subsection (a) of section 2814 of 
the Military Construction Authorization Act for Fiscal Year 2002 
(division B of Public Law 107-107; 115 Stat. 1310; 10 U.S.C. 2809 note) 
is amended by striking ``Secretary of the Army'' and inserting 
``Secretary of Defense or the Secretary of a military department''.
    (b) Contracts.--Subsection (b) of such section is amended to read 
as follows:
    ``(b) Contracts.--(1) Not more than 12 contracts per military 
department may contain requirements referred to in subsection (a) for 
the purpose of the demonstration program.
    ``(2) The demonstration program may only cover contracts entered 
into on or after the date of the enactment of the Bob Stump National 
Defense Authorization Act for Fiscal Year 2003, except that the 
Secretary of the Army shall treat any contract containing requirements 
referred to in subsection (a) that was entered into under the authority 
in such subsection between that date and December 28, 2001, as a 
contract for the purpose of the demonstration program.''.
    (c) Reporting Requirements.--Subsection (d) of such section is 
amended by striking ``Secretary of the Army'' and inserting ``Secretary 
of Defense''.
    (d) Funding.--(1) Subsection (f) of such section is amended by 
striking ``the Army'' and inserting ``the military departments or 
defense-wide''.
    (2) The amendment made by paragraph (1) shall not affect the 
availability for the purpose of the demonstration program under section 
2814 of the Military Construction Authorization Act for Fiscal Year 
2002, as amended by this section, of any amounts authorized to be 
appropriated before the date of the enactment of this Act for the Army 
for military construction that have been obligated for the 
demonstration program, but not expended, as of that date.

SEC. 2814. EXPANDED AUTHORITY TO TRANSFER PROPERTY AT MILITARY 
              INSTALLATIONS TO BE CLOSED TO PERSONS WHO CONSTRUCT OR 
              PROVIDE MILITARY FAMILY HOUSING.

    (a) 1988 Law.--Section 204(e)(1) of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note) is amended by striking the last sentence.
    (b) 1990 Law.--Section 2905(f)(1) of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
U.S.C. 2687 note) is amended by striking the last sentence.

                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2821. TRANSFER OF JURISDICTION, FORT MCCLELLAN, ALABAMA, TO 
              ESTABLISH MOUNTAIN LONGLEAF NATIONAL WILDLIFE REFUGE.

    (a) Transfer Required.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of the Army shall transfer, 
without reimbursement, to the administrative jurisdiction of the 
Secretary of the Interior a parcel of real property at Fort McClellan, 
Alabama, consisting of approximately 7,600 acres, which is described as 
the ``acquisition area'' in a memorandum of agreement between the 
Secretaries numbered 1448-40181-00-K-014.
    (b) Establishment and Management of Refuge.--(1) The Secretary of 
the Interior shall establish on the real property transferred under 
subsection (a) the Mountain Longleaf National Wildlife Refuge to 
enhance, manage, and protect the unique mountain longleaf pine 
ecosystem on the property.
    (2) The Secretary of Interior shall manage the Mountain Longleaf 
National Wildlife Refuge in a manner that--
        (A) conserves and enhances populations of fish, wildlife, and 
    plants in the Refuge, including migratory birds and species that 
    are threatened or endangered, with particular emphasis on the 
    protection of the mountain longleaf pine plant ecosystem;
        (B) protects and enhances the quality of aquatic habitat in the 
    Refuge;
        (C) provides, in coordination with the Alabama Department of 
    Conservation and Natural Resources, the public with recreational 
    opportunities, including hunting, fishing, wildlife observation, 
    and photography;
        (D) provides opportunities for scientific research and 
    education on land use and environmental law; and
        (E) is consistent with environmental restoration efforts 
    conducted by the Secretary of the Army on the Refuge or on lands 
    adjacent to the Refuge.
    (c) Environmental Restoration.--(1) The Secretary of the Army shall 
continue to be responsible for unexploded ordnance, discarded military 
munitions, and munitions constituents on the real property transferred 
under subsection (a) and shall continue to follow a remediation process 
in accordance with the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.).
    (2) The Secretary of the Army shall appropriately factor the 
management directives for the Mountain Longleaf National Wildlife 
Refuge, as described in subsection (b), into the remedy selection 
process for the property transferred under subsection (a).
    (d) Relation to Other Environmental Laws.--Nothing in this section 
shall relieve, and no action taken under this section may relieve, the 
Secretary of the Army or the Secretary of the Interior, or any other 
person from any liability or other obligation under the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, the 
Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901 et 
seq.), or any other Federal or State law.
    (e) Assistance.--The Secretary of the Army may provide up to 
$500,000 from the funds in the Base Realignment and Closure Account 
1990 to the Secretary of Interior to facilitate the establishment of 
the Mountain Longleaf National Wildlife Refuge and to support 
environmental research at the Refuge during the first two years of the 
operation of the Refuge.

SEC. 2822. LAND CONVEYANCES, LANDS IN ALASKA NO LONGER REQUIRED FOR 
              NATIONAL GUARD PURPOSES.

    (a) Conveyance Authorized.--The Secretary of the Army may convey to 
an eligible entity described in subsection (b) all right, title, and 
interest of the United States in and to any parcel of real property, 
including any improvements thereon, in the State of Alaska described in 
subsection (c) if the Secretary determines the conveyance would be in 
the public interest.
    (b) Eligible Recipients.--The following entities shall be eligible 
to receive real property under subsection (a):
        (1) The State of Alaska.
        (2) A governmental entity in the State of Alaska.
        (3) A Native Corporation (as defined in section 3 of the Alaska 
    Native Claims Settlement Act (43 U.S.C. 1602)).
        (4) The Metlakatla Indian Community.
    (c) Covered Property.--Subsection (a) applies to real property 
located in the State of Alaska that--
        (1) is under the jurisdiction of the Department of the Army 
    and, before December 2, 1980, was under such jurisdiction for the 
    use of the Alaska National Guard;
        (2) is located in a unit of the National Wildlife Refuge System 
    designated in the Alaska National Interest Lands Conservation Act 
    (Public Law 96-487; 16 U.S.C. 668dd note);
        (3) is excess to the needs of the Alaska National Guard and the 
    Department of Defense; and
        (4) the Secretary determines that--
            (A) the anticipated cost to the United States of retaining 
        the property exceeds the value of such property; or
            (B) the condition of the property makes it unsuitable for 
        retention by the United States.
    (d) Consideration.--The conveyance of real property under this 
section shall, at the election of the Secretary, be for no 
consideration or for consideration in an amount determined by the 
Secretary to be appropriate under the circumstances.
    (e) Use of Consideration.--If consideration is received for the 
conveyance of real property under subsection (a), the Secretary may use 
the amounts received, in such amounts as are provided in appropriations 
Acts, to pay for--
        (1) the cost of a survey described in subsection (f) with 
    respect to the property;
        (2) the cost of carrying out any environmental assessment, 
    study, or analysis, and any remediation, that may be required under 
    Federal law, or is considered appropriate by the Secretary, in 
    connection with the property or the conveyance of the property; and
        (3) any other costs incurred by the Secretary in conveying the 
    property.
    (f) Description of Property.--The exact acreage and legal 
description of any real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with a conveyance of 
real property under this section as the Secretary considers appropriate 
to protect the interests of the United States.

SEC. 2823. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, KANSAS.

    (a) Conveyance Authorized.--The Administrator of General Services 
may convey to the Johnson County Park and Recreation District, Kansas 
(in this section referred to as the ``District''), all right, title, 
and interest of the United States in and to a parcel of real property, 
including any improvements thereon, at the Sunflower Army Ammunition 
Plant in the State of Kansas consisting of approximately 2,000 acres.
    (b) Basis of Conveyance.--The conveyance under this section shall 
be made in a manner consistent with section 550(e) of title 40, United 
States Code, for the purpose of permitting the District to use the 
conveyed property for public recreational purposes.
    (c) Description of Property.--The exact acreage, location, and 
legal description of the real property to be conveyed under subsection 
(a) shall be determined by a survey satisfactory to the Administrator. 
The cost of such legal description, survey, or both shall be borne by 
the District.
    (d) Additional Terms and Conditions.--The Administrator may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Administrator considers appropriate to 
protect the interests of the United States.
    (e) Application of Section.--If the Administrator and the District 
reach an agreement regarding the conveyance of the property described 
in subsection (a) before January 31, 2003, the authority provided by 
this section shall not take effect.

SEC. 2824. LAND CONVEYANCES, BLUEGRASS ARMY DEPOT, RICHMOND, KENTUCKY.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to Madison County, Kentucky (in this section 
referred to as the ``County''), all right, title, and interest of the 
United States in and to the following parcels of real property, 
including any improvements thereon, at the Bluegrass Army Depot, 
Richmond, Kentucky:
        (1) A parcel consisting of approximately 10 acres.
        (2) A parcel consisting of approximately 3 acres, including the 
    building known as Quarters 29.
    (b) Conditions of Conveyance.--(1) The Secretary may not convey the 
parcel of real property referred to in subsection (a)(1) unless the 
County agrees to use the property to facilitate the construction of a 
veterans' center on the property by the State of Kentucky and the 
Secretary determines that the State has appropriated adequate funds for 
the construction of the veterans' center.
    (2) The Secretary may not convey the parcel of real property 
referred to in subsection (a)(2) unless the County agrees to utilize 
the property for historical preservation and education purposes.
    (c) Reversionary Interest.--(1) At the end of the seven-year period 
beginning on the date on which the Secretary makes the conveyance of 
the parcel of real property referred to in subsection (a)(1), if the 
Secretary determines that a veterans' center is not in operation on the 
conveyed real property, then, at the option of the Secretary, all 
right, title, and interest in and to the property, including any 
improvements thereon, shall revert to the United States, and the United 
States shall have the right of immediate entry onto the property.
    (2) If the Secretary determines at any time that the parcel of real 
property referred to in subsection (a)(2) has ceased to be utilized for 
the purposes specified in subsection (b)(2), then, at the option of the 
Secretary, all right, title, and interest in and to the property shall 
revert to the United States, and the United States shall have the right 
of immediate entry onto the property.
    (3) Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (d) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the County to reimburse the Secretary for the costs incurred by 
the Secretary to carry out the conveyances under subsection (a), 
including survey costs, costs related to environmental documentation 
(other than the environmental baseline survey), and other 
administrative costs related to the conveyance.
    (2) The Secretary shall require the County to reimburse the 
Secretary for any excess costs incurred by the Secretary for any 
environmental assessment, study, or analysis, or for any other excess 
costs incurred by the Secretary, in connection with the conveyances, if 
the excess costs were incurred as a result of a request by the County. 
In this paragraph, the term ``excess costs'' means costs in excess of 
those costs considered reasonable and necessary by the Secretary to 
comply with existing law to make the conveyances.
    (3) Any reimbursement received under this subsection shall be 
credited to the fund or account that was used to cover the costs 
incurred by the Secretary in carrying out the conveyances. Amounts so 
credited shall be merged with amounts in such fund or account, and 
shall be available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2825. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the City of Hopkinsville, Kentucky (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property at Fort Campbell, 
Kentucky, consisting of approximately 50 acres and containing an 
abandoned railroad spur for the purpose of permitting the City to use 
the property for storm water management, recreation, transportation, 
and other public purposes.
    (b) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the City to reimburse the Secretary for the costs incurred by 
the Secretary to carry out the conveyance under subsection (a), 
including survey costs, costs related to environmental documentation 
(other than the environmental baseline survey), and other 
administrative costs related to the conveyance.
    (2) The Secretary shall require the City to reimburse the Secretary 
for any excess costs incurred by the Secretary for any environmental 
assessment, study, or analysis, or for any other excess costs incurred 
by the Secretary, in connection with the conveyance, if the excess 
costs were incurred as a result of a request by the City. In this 
paragraph, the term ``excess costs'' means costs in excess of those 
costs considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall be 
credited to the fund or account that was used to cover the costs 
incurred by the Secretary in carrying out the conveyance. Amounts so 
credited shall be merged with amounts in such fund or account, and 
shall be available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (c) Description of Property.--The acreage of the real property to 
be conveyed under subsection (a) has been determined by the Secretary 
through a legal description outlining such acreage. No further survey 
of the property is required before the conveyance is made.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2826. LAND CONVEYANCE, ARMY RESERVE TRAINING CENTER, BUFFALO, 
              MINNESOTA.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Buffalo Independent School District 877 
of Buffalo, Minnesota (in this section referred to as the ``School 
District''), all right, title, and interest of the United States in and 
to a parcel of real property, including improvements thereon, that is 
located at 800 8th Street, N.E., in Buffalo, Minnesota, and contains a 
former Army Reserve Training Center, which is being used by the School 
District as the site of the Phoenix Learning Center.
    (b) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the School District to reimburse the Secretary for the costs 
incurred by the Secretary to carry out the conveyance under subsection 
(a), including survey costs, costs related to environmental 
documentation (other than the environmental baseline survey), and other 
administrative costs related to the conveyance.
    (2) The Secretary shall require the School District to reimburse 
the Secretary for any excess costs incurred by the Secretary for any 
environmental assessment, study, or analysis, or for any other excess 
costs incurred by the Secretary, in connection with the conveyance, if 
the excess costs were incurred as a result of a request by the School 
District. In this paragraph, the term ``excess costs'' means costs in 
excess of those costs considered reasonable and necessary by the 
Secretary to comply with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall be 
credited to the fund or account that was used to cover the costs 
incurred by the Secretary in carrying out the conveyance. Amounts so 
credited shall be merged with amounts in such fund or account, and 
shall be available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the School District.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2827. LAND CONVEYANCE, FORT MONMOUTH, NEW JERSEY.

    (a) Conveyance Authorized.--The Secretary of the Army may convey by 
sale all right, title, and interest of the United States in and to a 
parcel of real property, consisting of approximately 63.95 acres of 
military family housing known as Howard Commons, that comprises a 
portion of Fort Monmouth, New Jersey.
    (b) Competitive Bid Requirement.--The Secretary shall use 
competitive procedures for the sale authorized by subsection (a).
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (a), the recipient shall provide the United 
States, whether by cash payment, in-kind contribution, or a combination 
thereof, an amount that is not less than the fair market value, as 
determined by the Secretary, of the property conveyed under such 
subsection.
    (2) In-kind consideration under paragraph (1) may include the 
construction of replacement military family housing or the 
rehabilitation of existing military family housing at Fort Monmouth, 
New Jersey, as agreed upon by the Secretary.
    (3) If the value of in-kind consideration to be provided under this 
subsection exceeds $1,500,000, the Secretary may not accept such 
consideration until after the end of the 21-day period beginning on the 
date the Secretary notifies the congressional defense committees of the 
decision of the Secretary to accept in-kind consideration in excess of 
that amount.
    (4) Any proceeds received by the Secretary under this subsection 
and not used to construct or rehabilitate such military family housing 
shall be deposited in the special account in the Treasury established 
pursuant to section 572(b) of title 40, United States Code.
    (d) Effect of Transfer of Administrative Jurisdiction.--If the real 
property authorized to be conveyed by this section is transferred to 
the administrative jurisdiction of the Administrator of General 
Services, the Administrator, rather than the Secretary, shall have the 
authority to convey such property under this section.
    (e) Description of Parcel.--The exact acreage and legal description 
of the parcel to be conveyed under subsection (a) shall be determined 
by a survey that is satisfactory to the Secretary. The cost of the 
survey shall be borne by the recipient of the parcel.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2828. LAND CONVEYANCE, FORT BLISS, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the County of El Paso, Texas (in this section 
referred to as the ``County''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 44 acres at Fort 
Bliss, Texas, for the purpose of facilitating the construction by the 
State of Texas of a nursing home for veterans of the Armed Forces.
    (b) Reversionary Interest.--(1) At the end of the seven-year period 
beginning on the date on which the Secretary makes the conveyance under 
subsection (a), if the Secretary determines that a nursing home for 
veterans is not in operation on the conveyed real property, then, at 
the option of the Secretary--
        (A) all right, title, and interest in and to the property, 
    including any improvements thereon, shall revert to the United 
    States; and
        (B) the United States shall have the right of immediate entry 
    onto the property.
    (2) Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (c) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the County to reimburse the Secretary for the costs incurred by 
the Secretary to carry out the conveyance under subsection (a), 
including survey costs, costs related to environmental documentation 
(other than the environmental baseline survey), and other 
administrative costs related to the conveyance.
    (2) The Secretary shall require the County to reimburse the 
Secretary for any excess costs incurred by the Secretary for any 
environmental assessment, study, or analysis, or for any other excess 
costs incurred by the Secretary, in connection with the conveyance, if 
the excess costs were incurred as a result of a request by the County. 
In this paragraph, the term ``excess costs'' means costs in excess of 
those costs considered reasonable and necessary by the Secretary to 
comply with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall be 
credited to the fund or account that was used to cover the costs 
incurred by the Secretary in carrying out the conveyance. Amounts so 
credited shall be merged with amounts in such fund or account, and 
shall be available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the County.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2829. LAND CONVEYANCE, FORT HOOD, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may convey, 
without consideration, to the Veterans Land Board of the State of Texas 
(in this section referred to as the ``Board'') all right, title, and 
interest of the United States in and to a parcel of real property, 
including any improvements thereon, consisting of approximately 174 
acres at Fort Hood, Texas, for the purpose of permitting the Board to 
establish a State-run cemetery for veterans of the Armed Forces.
    (b) Reversionary Interest.--(1) At the end of the seven-year period 
beginning on the date on which the Secretary makes the conveyance under 
subsection (a), if the Secretary determines that a cemetery for 
veterans is not in operation on the conveyed real property, then, at 
the option of the Secretary--
        (A) all right, title, and interest in and to the property, 
    including any improvements thereon, shall revert to the United 
    States; and
        (B) the United States shall have the right of immediate entry 
    onto the property.
    (2) Any determination of the Secretary under this subsection shall 
be made on the record after an opportunity for a hearing.
    (c) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the Board to reimburse the Secretary for the costs incurred by 
the Secretary to carry out the conveyance under subsection (a), 
including survey costs, costs related to environmental documentation 
(other than the environmental baseline survey), and other 
administrative costs related to the conveyance.
    (2) The Secretary shall require the Board to reimburse the 
Secretary for any excess costs incurred by the Secretary for any 
environmental assessment, study, or analysis, or for any other excess 
costs incurred by the Secretary, in connection with the conveyance, if 
the excess costs were incurred as a result of a request by the Board. 
In this paragraph, the term ``excess costs'' means costs in excess of 
those costs considered reasonable and necessary by the Secretary to 
comply with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall be 
credited to the fund or account that was used to cover the costs 
incurred by the Secretary in carrying out the conveyance. Amounts so 
credited shall be merged with amounts in such fund or account, and 
shall be available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. The cost 
of the survey shall be borne by the Board.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2830. LAND CONVEYANCES, ENGINEER PROVING GROUND, FORT BELVOIR, 
              VIRGINIA.

    (a) Conveyance to Fairfax County, Virginia, Authorized.--(1) The 
Secretary of the Army may convey, without consideration, to Fairfax 
County, Virginia, all right, title, and interest of the United States 
in and to a parcel of real property, including any improvements 
thereon, consisting of approximately 135 acres, located in the 
northwest portion of the Engineer Proving Ground at Fort Belvoir, 
Virginia, in order to permit the County to use such property for park 
and recreational purposes.
    (2) The parcel of real property authorized to be conveyed by 
paragraph (1) is generally described as that portion of the Engineer 
Proving Ground located west of Accotink Creek, east of the Fairfax 
County Parkway, and north of Cissna Road to the northern boundary, but 
excludes a parcel of land consisting of approximately 15 acres located 
in the southeast corner of such portion of the Engineer Proving Ground.
    (3) The land excluded under paragraph (2) from the parcel of real 
property authorized to be conveyed by paragraph (1) shall be reserved 
for an access road to be constructed in the future.
    (b) Conveyance of Balance of Property Authorized.--The Secretary 
may convey to any competitively selected grantee all right, title, and 
interest of the United States in and to the real property, including 
any improvements thereon, at the Engineering Proving Ground not 
conveyed under the authority in subsection (a).
    (c) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (b), the grantee shall provide the United 
States, whether by cash payment, in-kind contribution, or a combination 
thereof, an amount that is not less than the fair market value, as 
determined by the Secretary, of the property conveyed under such 
subsection.
    (2) In-kind consideration under paragraph (1) may include the 
maintenance, improvement, alteration, repair, remodeling, restoration 
(including environmental restoration), or construction of facilities 
for the Department of the Army at Fort Belvoir or at any other site or 
sites designated by the Secretary.
    (3) If in-kind consideration under paragraph (1) includes the 
construction of facilities, the grantee shall also convey to the United 
States--
        (A) title to such facilities, free of all liens and other 
    encumbrances; and
        (B) if the United States does not have fee simple title to the 
    land underlying such facilities, convey to the United States all 
    right, title, and interest in and to such lands not held by the 
    United States.
    (4) If the value of in-kind consideration to be provided under 
paragraph (1) exceeds $1,500,000, the Secretary may not accept such 
consideration until after the end of the 21-day period beginning on the 
date the Secretary notifies the congressional defense committees of the 
decision of the Secretary to accept in-kind consideration in excess of 
that amount.
    (5) The Secretary shall deposit any cash received as consideration 
under this subsection in the special account established pursuant to 
section 572(b) of title 40, United States Code.
    (d) Effect of Transfer of Administrative Jurisdiction.--If all or a 
portion of the real property authorized to be conveyed by this section 
is transferred to the administrative jurisdiction of the Administrator 
of General Services, the Administrator, rather than the Secretary of 
the Army, shall have the authority to convey such property under this 
section.
    (e) Repeal of Superseded Authority.--Section 2821 of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 (division 
B of Public Law 101-189; 103 Stat. 1658), as amended by section 2854 of 
the Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 568), is repealed.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsections (a) 
and (b) shall be determined by surveys satisfactory to the Secretary. 
The cost of each such survey shall be borne by the grantee.
    (g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under subsections (a) and (b) as the Secretary considers appropriate to 
protect the interests of the United States.

                       PART II--NAVY CONVEYANCES

SEC. 2831. LAND CONVEYANCE, MARINE CORPS AIR STATION, MIRAMAR, SAN 
              DIEGO, CALIFORNIA.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the ENPEX Corporation, Incorporated (in this section referred to as the 
``Corporation''), all right, title, and interest of the United States 
in and to a parcel of real property, including any improvements 
thereon, at Marine Corps Air Station, Miramar, San Diego, California, 
consisting of approximately 60 acres and appurtenant easements and any 
other necessary interests in real property for the purpose of 
permitting the Corporation to use the property for the production of 
electric power and related ancillary activities.
    (b) Consideration.--(1) As consideration for the conveyance under 
subsection (a), the Corporation shall--
        (A) convey to the United States all right, title, and interest 
    of the Corporation in and to a parcel of real property in the San 
    Diego area that is suitable for military family housing, as 
    determined by the Secretary; and
        (B) if the parcel conveyed under subparagraph (A) does not 
    contain housing units suitable for use as military family housing, 
    design and construct such military family housing units and 
    supporting facilities as the Secretary considers appropriate.
    (2) The total combined value of the real property and military 
family housing conveyed by the Corporation under this subsection shall 
be at least equal to the fair market value of the real property 
conveyed to the Secretary under subsection (a), including any severance 
costs arising from any diminution of the value or utility of other 
property at Marine Corps Air Station, Miramar, attributable to the 
prospective future use of the property conveyed under subsection (a).
    (3) The Secretary shall determine the fair market value of the real 
property to be conveyed under subsection (a) and the fair market value 
of the consideration to be provided under this subsection. Such 
determinations shall be final.
    (c) Reversionary Interest.--(1) Subject to paragraph (2), if the 
Secretary determines at any time that the property conveyed under 
subsection (a) is not being used in accordance with the purpose of the 
conveyance specified in such subsection, all right, title, and interest 
in and to the property, including any improvements thereon, shall 
revert, at the option of the Secretary, to the United States, and the 
United States shall have the right of immediate entry onto the 
property. Any determination of the Secretary under this subsection 
shall be made on the record after an opportunity for a hearing.
    (2) If Marine Corps Air Station, Miramar, is no longer used as a 
Federal aviation facility, paragraph (1) shall no longer apply, and the 
Secretary shall release, without consideration, the reversionary 
interest retained by the United States under such paragraph.
    (d) Administrative Expenses.--(1) The Corporation shall make funds 
available to the Secretary to cover costs to be incurred by the 
Secretary, or reimburse the Secretary for costs incurred, to carry out 
the conveyance under subsection (a), including survey costs, costs 
related to environmental documentation, and other administrative costs 
related to the conveyance. This paragraph does not apply to costs 
associated with the removal of explosive ordnance from the parcel and 
environmental remediation of the parcel.
    (2) Section 2695(c) of title 10 United States Code, shall apply to 
any amount received under paragraph (1). If the amounts received in 
advance under such paragraph exceed the costs actually incurred by the 
Secretary, the Secretary shall refund the excess amount to the 
Corporation.
    (e) Descriptions of Property.--The exact acreage and legal 
descriptions of the real property to be conveyed by the Secretary under 
subsection (a) and the property to be conveyed by the Corporation under 
subsection (b) shall be determined by a survey satisfactory to the 
Secretary.
    (f) Exemptions.--Section 2696 of title 10, United States Code, does 
not apply to the conveyance authorized by subsection (a), and the 
authority to make the conveyance shall not be considered to render the 
property excess or underutilized.
    (g) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
authorized by this section as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2832. MODIFICATION OF AUTHORITY FOR LAND TRANSFER AND CONVEYANCE, 
              NAVAL SECURITY GROUP ACTIVITY, WINTER HARBOR, MAINE.

    (a) Modification of Conveyance Authority for Corea and Winter 
Harbor Properties.--Subsection (b) of section 2845 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1319) is amended to read as follows:
    ``(b) Conveyance and Transfer of Corea and Winter Harbor Properties 
Authorized.--(1) The Secretary of the Navy may convey, without 
consideration, to the State of Maine, any political subdivision of the 
State of Maine, or any tax-supported agency in the State of Maine, all 
right, title, and interest of the United States in and to parcels of 
real property, including any improvements thereon and appurtenances 
thereto, comprising the former facilities of the Naval Security Group 
Activity, Winter Harbor, Maine, as follows:
        ``(A) The parcel consisting of approximately 50 acres known as 
    the Corea Operations Site.
        ``(B) Three parcels consisting of approximately 23 acres and 
    comprising family housing facilities.
    ``(2) The Secretary of the Navy may transfer to the administrative 
jurisdiction of the Secretary of the Interior a parcel of real property 
consisting of approximately 404 acres at the former Naval Security 
Group Activity, which is the balance of the real property comprising 
the Corea Operations Site. The Secretary of the Interior shall 
administer the property transferred under this paragraph as part of the 
National Wildlife Refuge System.''.
    (b) Exemption of Modified Conveyances from Federal Screening 
Requirement.--Such section is further amended--
        (1) by redesignating subsections (g) and (h) as subsections (h) 
    and (i), respectively; and
        (2) by inserting after subsection (f) the following new 
    subsection (g):
    ``(g) Exemption From Federal Screening.--Any conveyance authorized 
by subsection (b)(1) is exempt from the requirement to screen the 
property concerned for further Federal use pursuant to section 2696 of 
title 10, United States Code.''.
    (c) Conforming Amendments.--Subsections (c), (d), (e), (f), (h) (as 
redesignated), and (i) (as redesignated) of such section are amended by 
striking ``subsection (b)'' each place it appears and inserting 
``subsection (b)(1)''.

SEC. 2833. LAND CONVEYANCE, WESTOVER AIR RESERVE BASE, MASSACHUSETTS.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey, 
without consideration, to the City of Chicopee, Massachusetts (in this 
section referred to as the ``City''), all right, title, and interest of 
the United States in and to a parcel of real property, including 133 
housing units and other improvements thereon, consisting of 
approximately 30.38 acres located at Westover Air Reserve Base in 
Chicopee, Massachusetts, for the purpose of permitting the City to use 
the property for economic development and other public purposes.
    (b) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the City to reimburse the Secretary for the costs incurred by 
the Secretary to carry out the conveyance under subsection (a), 
including survey costs, costs related to environmental documentation 
(other than the environmental baseline survey), and other 
administrative costs related to the conveyance.
    (2) The Secretary shall require the City to reimburse the Secretary 
for any excess costs incurred by the Secretary for any environmental 
assessment, study, or analysis, or for any other excess costs incurred 
by the Secretary, in connection with the conveyance, if the excess 
costs were incurred as a result of a request by the City. In this 
paragraph, the term ``excess costs'' means costs in excess of those 
costs considered reasonable and necessary by the Secretary to comply 
with existing law to make the conveyance.
    (3) Any reimbursement received under this subsection shall be 
credited to the fund or account that was used to cover the costs 
incurred by the Secretary in carrying out the conveyance. Amounts so 
credited shall be merged with amounts in such fund or account, and 
shall be available for the same purposes, and subject to the same 
conditions and limitations, as amounts in such fund or account.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2834. LAND CONVEYANCE, NAVAL STATION, NEWPORT, RHODE ISLAND.

    (a) Conveyance Authorized.--The Secretary of the Navy may convey to 
the State of Rhode Island, or any political subdivision thereof, any or 
all right, title, and interest of the United States in and to a parcel 
of real property, together with improvements thereon, consisting of 
approximately 34 acres located in Melville, Rhode Island, and known as 
the Melville Marina site.
    (b) Consideration.--(1) As consideration for the conveyance of real 
property under subsection (a), the conveyee shall pay the United States 
an amount equal to the fair market value of the real property, as 
determined by the Secretary based on an appraisal of the real property 
acceptable to the Secretary.
    (2) The consideration received under paragraph (1) shall be 
deposited in the account established pursuant to section 572(b) of 
title 40, United States Code, and shall be available as provided for in 
that section.
    (c) Reimbursement for Costs of Conveyance.--(1) The Secretary may 
require the conveyee of the real property under subsection (a) to 
reimburse the Secretary for any costs incurred by the Secretary in 
carrying out the conveyance.
    (2) Any reimbursement for costs that is received under paragraph 
(1) shall be credited to the fund or account providing funds for such 
costs. Amounts so credited shall be merged with amounts in such fund or 
account, and shall be available for the same purposes, and subject to 
the same conditions and limitations, as amounts in such fund or 
account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyance 
under subsection (a) as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2835. LAND EXCHANGE AND BOUNDARY ADJUSTMENTS, MARINE CORPS BASE, 
              QUANTICO, AND PRINCE WILLIAM FOREST PARK, VIRGINIA.

    (a) Land Exchange.--Administrative jurisdiction over certain lands 
at Prince William Forest Park, Virginia, and at the Marine Corps Base, 
Quantico, Virginia, shall be adjusted through the following actions:
        (1) The Secretary of the Navy shall transfer, without 
    reimbursement, to the administrative jurisdiction of the Secretary 
    of the Interior approximately 352 acres of land, depicted as 
    ``Lands Transferred from Department of the Navy to Department of 
    the Interior'' on the map entitled ``Boundary Adjustments Between 
    Prince William Forest Park and Marine Corps Base, Quantico'', 
    numbered 860/80283, and dated May 1, 2002.
        (2) The Secretary of the Interior shall transfer, without 
    reimbursement, to the administrative jurisdiction of the Secretary 
    of the Navy approximately 3,398 acres of land, depicted as ``Lands 
    Transferred from Department of the Interior to Department of the 
    Navy'' on the map described in paragraph (1).
    (b) Retention of Certain Land.--The Secretary of the Interior shall 
continue to administer approximately 1,346 acres of land, depicted as 
``Lands Retained by Department of the Interior'' on the map described 
in subsection (a)(1). Effective on the date of the enactment of this 
Act, the special use permit dated March 16, 1972, which provides for 
the use of part of this land by the Marine Corps, shall no longer be in 
effect.
    (c) Subsequent Disposal of Land.--(1) If any of the land described 
in subsection (a)(1) or (b) is determined to be excess to the needs of 
the Department of the Interior, the Secretary of the Interior shall 
offer to transfer, without reimbursement, administrative jurisdiction 
over the land to the Secretary of the Navy.
    (2) If any of the land described in subsection (a)(2) is determined 
to be excess to the needs of the Department of the Navy, the Secretary 
of the Navy shall offer to transfer, without reimbursement, 
administrative jurisdiction over the land to the Secretary of the 
Interior.
    (3) If an offer made under this subsection is not accepted within 
90 days, the land covered by the offer may be disposed of in accordance 
with the laws and regulations governing the disposal of excess 
property.
    (d) Boundary Modification and Administration.--(1) The boundaries 
of Prince William Forest Park and the Marine Corps Base, Quantico, 
shall be modified to reflect the land exchanges or disposals made under 
this section.
    (2) Land transferred to the Secretary of the Interior under 
subsection (a)(1) or retained under subsection (b) shall be 
administered as part of Prince William Forest Park in accordance with 
applicable laws and regulations.
    (e) Availability of Map.--The map described in subsection (a)(1) 
shall be on file and available for public inspection in the appropriate 
offices of the National Park Service, Department of the Interior.
    (f) Conforming Amendments.--The Act of June 22, 1948 (Chapter 596; 
62 Stat. 571), is amended--
        (1) by striking the first section and inserting the following 
    new section:

``SECTION 1. PRINCE WILLIAM FOREST PARK, VIRGINIA.

    ``Chopawamsic Park, which was established in 1933 as Chopawamsic 
Recreational Demonstration Area, shall be known as `Prince William 
Forest Park'.'';
        (2) in section 2--
            (A) by striking ``That all'' and inserting ``All''; and
            (B) by striking ``the Chopawamsic Park'' and inserting 
        ``Prince William Forest Park''; and
        (3) in section 3--
            (A) by striking ``That the Secretary of the Interior and 
        the Secretary of the Navy be, and they are hereby'' and 
        inserting ``The Secretary of the Interior is''; and
            (B) by striking ``the Chopawamsic Park'' both places it 
        appears and inserting ``Prince William Forest Park''.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2841. MODIFICATION OF LAND CONVEYANCE, LOS ANGELES AIR FORCE BASE, 
              CALIFORNIA.

    Section 2861(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-433) is amended in the first sentence by 
striking ``10 years'' and inserting ``30 years''.

SEC. 2842. LAND EXCHANGE, BUCKLEY AIR FORCE BASE, COLORADO.

    (a) Exchange Authorized.--For the purpose of facilitating the 
acquisition of real property suitable for the construction of military 
family housing for Buckley Air Force Base, Colorado, the Secretary of 
the Air Force may convey to the State of Colorado (in this section 
referred to as the ``State'') all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of all or part of the Watkins 
Communications Site in Arapahoe County, Colorado.
    (b) Consideration.--(1) As consideration for the conveyance 
authorized by subsection (a) the State shall convey to the United 
States all right, title, and interest of the State in and to a parcel 
of real property, including improvements thereon, consisting of 
approximately 41 acres that is owned by the State and is contiguous to 
Buckley Air Force Base, Colorado.
    (2) The Secretary shall have jurisdiction over the real property 
conveyed under paragraph (1).
    (3) Upon conveyance to the United States under paragraph (1), the 
real property conveyed under that paragraph is withdrawn from all forms 
of appropriation under the general land laws, including the mining laws 
and mineral and geothermal leasing laws.
    (c) Description of Property.--The exact acreage and legal 
description of the parcels of real property to be conveyed under this 
section shall be determined by surveys satisfactory to the Secretary.
    (d) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the conveyances 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2843. LAND CONVEYANCES, WENDOVER AIR FORCE BASE AUXILIARY FIELD, 
              NEVADA.

    (a) Conveyances Authorized To West Wendover, Nevada.--(1) The 
Secretary of the Interior may convey, without consideration, to the 
City of West Wendover, Nevada, all right, title, and interest of the 
United States in and to the following:
        (A) The lands at Wendover Air Force Base Auxiliary Field, 
    Nevada, identified in Easement No. AFMC-HL-2-00-334 that are 
    determined by the Secretary of the Air Force to be no longer 
    required.
        (B) The lands at Wendover Air Force Base Auxiliary Field 
    identified for disposition on the map entitled ``West Wendover, 
    Nevada-Excess'', dated January 5, 2001, that are determined by the 
    Secretary of the Air Force to be no longer required.
    (2) The purposes of the conveyances under this subsection are--
        (A) to permit the establishment and maintenance of runway 
    protection zones; and
        (B) to provide for the development of an industrial park and 
    related infrastructure.
    (3) The map referred to in paragraph (1)(B) shall be on file and 
available for public inspection in the offices of the Director of the 
Bureau of Land Management and the Elko District Office of the Bureau of 
Land Management.
    (b) Conveyance Authorized to Tooele County, Utah.--(1) The 
Secretary of the Interior may convey, without consideration, to Tooele 
County, Utah, all right, title, and interest of the United States in 
and to the lands at Wendover Air Force Base Auxiliary Field identified 
in Easement No. AFMC-HL-2-00-318 that are determined by the Secretary 
of the Air Force to be no longer required.
    (2) The purpose of the conveyance under this subsection is to 
permit the establishment and maintenance of runway protection zones and 
an aircraft accident potential protection zone as necessitated by 
continued military aircraft operations at the Utah Test and Training 
Range.
    (c) Phased Conveyances.--The land conveyances authorized by 
subsections (a) and (b) may be conducted in phases. To the extent 
practicable, the first phase of the conveyances should involve at least 
3,000 acres.
    (d) Management of Conveyed Lands.--The lands conveyed under 
subsections (a) and (b) shall be managed by the City of West Wendover, 
Nevada, City of Wendover, Utah, Tooele County, Utah, and Elko County, 
Nevada--
        (1) in accordance with the provisions of an Interlocal 
    Memorandum of Agreement entered into between the Cities of West 
    Wendover, Nevada, and Wendover, Utah, Tooele County, Utah, and Elko 
    County, Nevada, providing for the coordinated management and 
    development of the lands for the economic benefit of both 
    communities; and
        (2) in a manner that is consistent with such provisions of the 
    easements referred to subsections (a) and (b) that, as jointly 
    determined by the Secretary of the Air Force and Secretary of the 
    Interior, remain applicable and relevant to the operation and 
    management of the lands following conveyance and are consistent 
    with the provisions of this section.
    (e) Additional Terms and Conditions.--The Secretary of the Air 
Force and the Secretary of the Interior may jointly require such 
additional terms and conditions in connection with the conveyances 
authorized by subsections (a) and (b) as the Secretaries consider 
appropriate to protect the interests of the United States.

                       Subtitle D--Other Matters

SEC. 2851. MASTER PLAN FOR USE OF NAVY ANNEX, ARLINGTON, VIRGINIA.

    (a) Modification of Authority for Transfer from Navy Annex.--
Section 2881 of the Military Construction Authorization Act for Fiscal 
Year 2000 (113 Stat. 879) is amended--
        (1) in subsection (b)(2), as amended by section 2863(f) of the 
    Military Construction Authorization Act for Fiscal Year 2002 
    (division B of Public Law 107-107; 115 Stat. 1332), by striking 
    ``as a site for--'' and all that follows and inserting ``as a site 
    for such other memorials or museums that the Secretary considers 
    compatible with Arlington National Cemetery and the Air Force 
    Memorial.''; and
        (2) in subsection (d)--
            (A) in paragraph (2), by striking ``the recommendation (if 
        any) of the Commission on the National Military Museum to use a 
        portion of the Navy Annex property as the site for the National 
        Military Museum'' and inserting ``the use of the acres reserved 
        under subsection (b)(2) for a memorial or museum''; and
            (B) in paragraph (4), by striking ``the date on which the 
        Commission on the National Military Museum submits to Congress 
        its report under section 2903'' and inserting ``the date of the 
        enactment of the Bob Stump National Defense Authorization Act 
        for Fiscal Year 2003''.
    (b) Construction of Amendments.--The amendments made by subsection 
(a) may not be construed to delay the establishment of the United 
States Air Force Memorial authorized by section 2863 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1330).

SEC. 2852. SALE OF EXCESS TREATED WATER AND WASTEWATER TREATMENT 
              CAPACITY, MARINE CORPS BASE, CAMP LEJEUNE, NORTH 
              CAROLINA.

    (a) Sale Authorized.--The Secretary of the Navy may provide to 
Onslow County, North Carolina, or any authority or political 
subdivision organized under the laws of North Carolina to provide 
public water or sewage services in Onslow County (in this section 
referred to as the ``County''), treated water and wastewater treatment 
services from facilities at Marine Corps Base, Camp Lejeune, North 
Carolina, if the Secretary determines that the provision of these 
utility services is in the public interest and will not interfere with 
current or future operations at Camp Lejeune.
    (b) Inapplicability of Certain Requirements.--Section 2686 of title 
10, United States Code, shall not apply to the provision of public 
water or sewage services authorized by subsection (a).
    (c) Consideration.--As consideration for the receipt of public 
water or sewage services under subsection (a), the County shall pay to 
the Secretary an amount (in cash or in kind) equal to the fair market 
value of the services. Amounts received in cash shall be credited to 
the base operation and maintenance accounts of Camp Lejeune.
    (d) Expansion.--The Secretary may make minor expansions and 
extensions and permit connections to the public water or sewage systems 
of the County in order to furnish the services authorized under 
subsection (a). The Secretary shall restrict the provision of services 
to the County to those areas in the County where residential 
development would be compatible with current and future operations at 
Camp Lejeune.
    (e) Administrative Expenses.--(1) The Secretary may require the 
County to reimburse the Secretary for the costs incurred by the 
Secretary to provide public water or sewage services to the County 
under subsection (a).
    (2) Section 2695(c) of title 10 United States Code, shall apply to 
any amount received under this subsection.
    (f) Additional Terms and Conditions.--The Secretary may require 
such additional terms and conditions in connection with the provision 
of public water or sewage services under this section as the Secretary 
considers appropriate to protect the interests of the United States.

SEC. 2853. CONVEYANCE OF REAL PROPERTY, ADAK NAVAL COMPLEX, ALASKA, AND 
              RELATED LAND CONVEYANCES.

    Section 6 of the Act entitled ``An Act to ratify an agreement 
between The Aleut Corporation and the United States of America to 
exchange land rights received under the Alaska Native Claims Settlement 
Act for certain land interests on Adak Island, and for other 
purposes.'', approved October 11, 2002 (Public Law 107-239), is amended 
by adding at the end the following new subsection:
    ``(f) For purposes of section 21(c) of the Alaska Native Claims 
Settlement Act (43 U.S.C. 1620(c)), all property received by the Aleut 
Corporation under this Act shall be given a tax basis equal to fair 
value on the date of the transfer. Fair value shall be determined by 
replacement cost appraisal.''.

SEC. 2854. SPECIAL REQUIREMENT FOR ADDING MILITARY INSTALLATION TO 
              CLOSURE LIST.

    Section 2914(d) of the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), 
as added by section 3003 of the Military Construction Authorization Act 
for Fiscal Year 2002 (division B of Public Law 107-107; 155 Stat, 
1346), is amended--
        (1) by redesignating paragraph (5) as paragraph (6); and
        (2) by inserting after paragraph (4) the following new 
    paragraph (5):
        ``(5) Site visit.--In the report required under section 
    2903(d)(2)(A) that is to be transmitted under paragraph (1), the 
    Commission may not recommend the closure of a military installation 
    not recommended for closure by the Secretary under subsection (a) 
    unless at least two members of the Commission visit the 
    installation before the date of the transmittal of the report.''.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS
      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

    Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3141. Annual assessments and reports to the President and Congress 
          regarding the condition of the United States nuclear weapons 
          stockpile.
Sec. 3142. Plans for achieving enhanced readiness posture for resumption 
          by the United States of underground nuclear weapons tests.
Sec. 3143. Requirements for specific request for new or modified nuclear 
          weapons.
Sec. 3144. Database to track notification and resolution phases of 
          Significant Finding Investigations.
Sec. 3145. Defense environmental management cleanup reform program.
Sec. 3146. Limitation on obligation of funds for Robust Nuclear Earth 
          Penetrator program pending submission of report.

                    Subtitle C--Proliferation Matters

Sec. 3151. Transfer to National Nuclear Security Administration of 
          Department of Defense's Cooperative Threat Reduction program 
          relating to elimination of weapons grade plutonium production 
          in Russia.
Sec. 3152. Repeal of requirement for reports on obligation of funds for 
          programs on fissile materials in Russia.
Sec. 3153. Expansion of annual reports on status of nuclear materials 
          protection, control, and accounting programs.
Sec. 3154. Testing of preparedness for emergencies involving nuclear, 
          radiological, chemical, or biological weapons.
Sec. 3155. Cooperative program on research, development, and 
          demonstration of technology regarding nuclear or radiological 
          terrorism.
Sec. 3156. Matters relating to the International Materials Protection, 
          Control, and Accounting program of the Department of Energy.
Sec. 3157. Accelerated disposition of highly enriched uranium.
Sec. 3158. Strengthened international security for nuclear materials and 
          security of nuclear operations.
Sec. 3159. Export control programs.
Sec. 3160. Plan for accelerated return of weapons-usable nuclear 
          materials.
Sec. 3161. Sense of Congress on amendment of Convention on Physical 
          Protection of Nuclear Materials.
Sec. 3162. Sense of Congress on program to secure stockpiles of highly 
          enriched uranium and plutonium.

                        Subtitle D--Other Matters

Sec. 3171. Indemnification of Department of Energy contractors.
Sec. 3172. Support for public education in the vicinity of Los Alamos 
          National Laboratory, New Mexico.
Sec. 3173. Worker health and safety rules for Department of Energy 
          nuclear facilities.
Sec. 3174. Extension of authority to appoint certain scientific, 
          engineering, and technical personnel.
Sec. 3175. One-year extension of panel to assess the reliability, 
          safety, and security of the United States nuclear stockpile.
Sec. 3176. Report on status of environmental management initiatives to 
          accelerate the reduction of environmental risks and challenges 
          posed by the legacy of the Cold War.

 Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

Sec. 3181. Findings.
Sec. 3182. Disposition of weapons-usable plutonium at Savannah River 
          Site.
Sec. 3183. Study of facilities for storage of plutonium and plutonium 
          materials at Savannah River Site.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated to the Department of Energy for fiscal year 2003 for 
the activities of the National Nuclear Security Administration in 
carrying out programs necessary for national security in the amount of 
$8,038,490,000, to be allocated as follows:
        (1) For weapons activities, $5,901,641,000.
        (2) For defense nuclear nonproliferation activities, 
    $1,104,130,000.
        (3) For naval reactors, $706,790,000.
        (4) For the Office of the Administrator for Nuclear Security, 
    $325,929,000.
    (b) Authorization of New Plant Projects.--From funds referred to in 
subsection (a) that are available for carrying out plant projects, the 
Secretary of Energy may carry out new plant projects as follows:
        (1) For weapons activities, the following new plant projects:
            Project 03-D-101, Sandia underground reactor facility 
        (SURF), Sandia National Laboratories, Albuquerque, New Mexico, 
        $2,000,000.
            Project 03-D-103, project engineering and design, various 
        locations, $17,039,000.
            Project 03-D-121, gas transfer capacity expansion, Kansas 
        City Plant, Kansas City, Missouri, $4,000,000.
            Project 03-D-122, prototype purification facility, Y-12 
        plant, Oak Ridge, Tennessee, $20,800,000.
            Project 03-D-123, special nuclear materials 
        requalification, Pantex plant, Amarillo, Texas, $3,000,000.
        (2) For naval reactors, the following new plant project:
            Project 03-D-201, cleanroom technology facility, Bettis 
        Atomic Power Laboratory, West Mifflin, Pennsylvania, 
        $7,200,000.

SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated to the Department of Energy for fiscal year 2003 for 
environmental management activities in carrying out programs necessary 
for national security in the amount of $6,759,846,000, to be allocated 
as follows:
        (1) For defense environmental restoration and waste management, 
    $4,510,133,000.
        (2) For defense environmental management cleanup reform in 
    carrying out environmental restoration and waste management 
    activities necessary for national security programs, $982,000,000.
        (3) For defense facilities closure projects, $1,109,314,000.
        (4) For defense environmental management privatization, 
    $158,399,000.
    (b) Authorization of New Plant Projects.--From funds referred to in 
subsection (a) that are available for carrying out plant projects, the 
Secretary of Energy may carry out new plant projects as follows:
        (1) For environmental restoration and waste management 
    activities, the following new plant project:
            Project 03-D-403, immobilized high-level waste interim 
        storage facility, Richland, Washington, $6,363,000.
        (2) For defense environmental management cleanup reform, the 
    following new plant project:
            Project 03-D-414, project engineering and design, various 
        locations, $8,800,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for other defense activities in carrying 
out programs necessary for national security in the amount of 
$462,664,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2003 for defense nuclear waste disposal for 
payment to the Nuclear Waste Fund established in section 302(c) of the 
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$315,000,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3141. ANNUAL ASSESSMENTS AND REPORTS TO THE PRESIDENT AND CONGRESS 
              REGARDING THE CONDITION OF THE UNITED STATES NUCLEAR 
              WEAPONS STOCKPILE.

    (a) Annual Assessments Required.--For each nuclear weapon type in 
the stockpile of the United States, each official specified in 
subsection (b) on an annual basis shall, to the extent such official is 
directly responsible for the safety, reliability, performance, or 
military effectiveness of that nuclear weapon type, complete an 
assessment of the safety, reliability, performance, or military 
effectiveness (as the case may be) of that nuclear weapon type.
    (b) Covered Officials.--The officials referred to in subsection (a) 
are the following:
        (1) The head of each national security laboratory.
        (2) The commander of the United States Strategic Command.
    (c) Use of Teams of Experts for Assessments.--The head of each 
national security laboratory shall establish and use one or more teams 
of experts, known as ``red teams'', to assist in the assessments 
required by subsection (a). Each such team shall include experts from 
both of the other national security laboratories. Each such team for a 
national security laboratory shall--
        (1) review the matters covered by the assessments under 
    subsection (a) performed by the head of that laboratory;
        (2) subject such matters to challenge; and
        (3) submit the results of such review and challenge, together 
    with the findings and recommendations of such team with respect to 
    such review and challenge, to the head of that laboratory.
    (d) Report on Assessments.--Not later than December 1 of each year, 
each official specified in subsection (b) shall submit to the Secretary 
concerned, and to the Nuclear Weapons Council, a report on the 
assessments that such official was required by subsection (a) to 
complete. The report shall include the following:
        (1) The results of each such assessment.
        (2)(A) Such official's determination as to whether or not one 
    or more underground nuclear tests are necessary to resolve any 
    issues identified in the assessments and, if so--
            (i) an identification of the specific underground nuclear 
        tests that are necessary to resolve such issues; and
            (ii) a discussion of why options other than an underground 
        nuclear test are not available or would not resolve such 
        issues.
        (B) An identification of the specific underground nuclear tests 
    which, while not necessary, might have value in resolving any such 
    issues and a discussion of the anticipated value of conducting such 
    tests.
        (C) Such official's determination as to the readiness of the 
    United States to conduct the underground nuclear tests identified 
    under subparagraphs (A)(i) and (B), if directed by the President to 
    do so.
        (3) In the case of a report submitted by the head of a national 
    security laboratory--
            (A) a concise statement regarding the adequacy of the 
        science-based tools and methods being used to determine the 
        matters covered by the assessments;
            (B) a concise statement regarding the adequacy of the tools 
        and methods employed by the manufacturing infrastructure 
        required by section 3137 of the National Defense Authorization 
        Act for Fiscal Year 1996 (42 U.S.C. 2121 note) to identify and 
        fix any inadequacy with respect to the matters covered by the 
        assessments; and
            (C) a concise summary of the findings and recommendations 
        of any teams under subsection (c) that relate to the 
        assessments, together with a discussion of those findings and 
        recommendations.
        (4) In the case of a report submitted by the Commander of the 
    United States Strategic Command, a discussion of the relative 
    merits of other nuclear weapon types (if any), or compensatory 
    measures (if any) that could be taken, that could enable 
    accomplishment of the missions of the nuclear weapon types to which 
    the assessments relate, should such assessments identify any 
    deficiency with respect to such nuclear weapon types.
        (5) An identification and discussion of any matter having an 
    adverse effect on the capability of the official submitting the 
    report to accurately determine the matters covered by the 
    assessments.
    (e) Submittals to the President and Congress.--(1) Not later than 
March 1 of each year, the Secretary of Defense and the Secretary of 
Energy shall submit to the President--
        (A) each report, without change, submitted to either Secretary 
    under subsection (d) during the preceding year;
        (B) any comments that the Secretaries individually or jointly 
    consider appropriate with respect to each such report;
        (C) the conclusions that the Secretaries individually or 
    jointly reach as to the safety, reliability, performance, and 
    military effectiveness of the nuclear weapons stockpile of the 
    United States; and
        (D) any other information that the Secretaries individually or 
    jointly consider appropriate.
    (2) Not later than March 15 of each year, the President shall 
forward to Congress the matters received by the President under 
paragraph (1) for that year, together with any comments the President 
considers appropriate.
    (f) Classified Form.--Each submittal under subsection (e) shall be 
in classified form only, with the classification level required for 
each portion of such submittal marked appropriately.
    (g) Definitions.--In this section:
        (1) The term ``national security laboratory'' has the meaning 
    given such term in section 3281 of the National Nuclear Security 
    Administration Act (50 U.S.C. 2471).
        (2) The term ``Secretary concerned'' means--
            (A) the Secretary of Energy, with respect to matters 
        concerning the Department of Energy; and
            (B) the Secretary of Defense, with respect to matters 
        concerning the Department of Defense.
    (h) First Submissions.--(1) The first submissions made under 
subsection (d) shall be the submissions required to be made in 2003.
    (2) The first submissions made under subsection (e) shall be the 
submissions required to be made in 2004.

SEC. 3142. PLANS FOR ACHIEVING ENHANCED READINESS POSTURE FOR 
              RESUMPTION BY THE UNITED STATES OF UNDERGROUND NUCLEAR 
              WEAPONS TESTS.

    (a) Plans Required.--The Secretary of Energy, in consultation with 
the Administrator for Nuclear Security, shall prepare plans for 
achieving, not later than one year after the date on which the plans 
are submitted under subsection (c), readiness postures of six months, 
12 months, 18 months, and 24 months for resumption by the United States 
of underground nuclear weapons tests.
    (b) Readiness Posture.--For purposes of this section, a readiness 
posture of a specified number of months for resumption by the United 
States of underground nuclear weapons tests is achieved when the 
Department of Energy has the capability to resume such tests, if 
directed by the President to resume such tests, not later than the 
specified number of months after the date on which the President so 
directs.
    (c) Report.--The Secretary shall include with the budget 
justification materials submitted to Congress in support of the 
Department of Energy budget for fiscal year 2004 (as submitted with the 
budget of the President under section 1105(a) of title 31, United 
States Code) a report on the plans required by subsection (a). The 
report shall include--
        (1) an assessment of the current readiness posture for 
    resumption by the United States of underground nuclear weapons 
    tests;
        (2) the plans required by subsection (a) and, for each such 
    plan, the estimated cost for implementing such plan and an estimate 
    of the annual cost of maintaining the readiness posture to which 
    the plan relates; and
        (3) the recommendation of the Secretary, developed in 
    consultation with the Secretary of Defense, as to the optimal 
    readiness posture for resumption by the United States of 
    underground nuclear weapons tests, including the basis for that 
    recommendation.

SEC. 3143. REQUIREMENTS FOR SPECIFIC REQUEST FOR NEW OR MODIFIED 
              NUCLEAR WEAPONS.

    (a) Requirement for Request for Funds for Development.--(1) In any 
fiscal year after fiscal year 2002 in which the Secretary of Energy 
plans to carry out activities described in paragraph (2) relating to 
the development of a new nuclear weapon or modified nuclear weapon, the 
Secretary shall specifically request funds for such activities in the 
budget of the President for that fiscal year under section 1105(a) of 
title 31, United States Code.
    (2) The activities described in this paragraph are as follows:
        (A) The conduct, or provision for conduct, of research and 
    development which could lead to the production of a new nuclear 
    weapon by the United States.
        (B) The conduct, or provision for conduct, of engineering or 
    manufacturing to carry out the production of a new nuclear weapon 
    by the United States.
        (C) The conduct, or provision for conduct, of research and 
    development which could lead to the production of a modified 
    nuclear weapon by the United States.
        (D) The conduct, or provision for conduct, of engineering or 
    manufacturing to carry out the production of a modified nuclear 
    weapon by the United States.
    (b) Budget Request Format.--The Secretary shall include in a 
request for funds under subsection (a) the following:
        (1) In the case of funds for activities described in 
    subparagraph (A) or (C) of subsection (a)(2), a single dedicated 
    line item for all such activities for new nuclear weapons or 
    modified nuclear weapons that are in phase 1, 2, or 2A or phase 
    6.1, 6.2, or 6.2A (as the case may be), or any concept work prior 
    to phase 1 or 6.1 (as the case may be), of the nuclear weapons 
    acquisition process.
        (2) In the case of funds for activities described in 
    subparagraph (B) or (D) of subsection (a)(2), a dedicated line item 
    for each such activity for a new nuclear weapon or modified nuclear 
    weapon that is in phase 3 or higher or phase 6.3 or higher (as the 
    case may be) of the nuclear weapons acquisition process.
    (c) Exception.--Subsection (a) shall not apply to funds for 
purposes of conducting, or providing for the conduct of, research and 
development, or manufacturing and engineering, determined by the 
Secretary to be necessary--
        (1) for the nuclear weapons life extension program;
        (2) to modify an existing nuclear weapon solely to address 
    safety or reliability concerns; or
        (3) to address proliferation concerns.
    (d) Definitions.--In this section:
        (1) The term ``life extension program'' means the program to 
    repair or replace non-nuclear components, or to modify the pit or 
    canned subassembly, of nuclear weapons that are in the nuclear 
    weapons stockpile on the date of the enactment of this Act in order 
    to assure that such nuclear weapons retain the ability to meet the 
    military requirements applicable to such nuclear weapons when first 
    placed in the nuclear weapons stockpile.
        (2) The term ``modified nuclear weapon'' means a nuclear weapon 
    that contains a pit or canned subassembly, either of which--
            (A) is in the nuclear weapons stockpile as of the date of 
        the enactment of this Act; and
            (B) is being modified in order to meet a military 
        requirement that is other than the military requirements 
        applicable to such nuclear weapon when first placed in the 
        nuclear weapons stockpile.
        (3) The term ``new nuclear weapon'' means a nuclear weapon that 
    contains a pit or canned subassembly, either of which is neither--
            (A) in the nuclear weapons stockpile on the date of the 
        enactment of this Act; nor
            (B) in production as of that date.

SEC. 3144. DATABASE TO TRACK NOTIFICATION AND RESOLUTION PHASES OF 
              SIGNIFICANT FINDING INVESTIGATIONS.

    (a) Availability of Funds for Database.--Amounts authorized to be 
appropriated by section 3101(a)(1) for the National Nuclear Security 
Administration for weapons activities shall be available to the Deputy 
Administrator for Nuclear Security for Defense Programs for the 
development and implementation of a database for all national security 
laboratories to track the notification and resolution phases of 
Significant Finding Investigations (SFIs). The purpose of the database 
is to facilitate the monitoring of the progress and accountability of 
the national security laboratories in Significant Finding 
Investigations.
    (b) Implementation Deadline.--The database required by subsection 
(a) shall be implemented not later than September 30, 2003.
    (c) National Security Laboratory Defined.--In this section, the 
term ``national security laboratory'' has the meaning given that term 
in section 3281(1) of the National Nuclear Security Administration Act 
(title XXXII of Public Law 106-65; 113 Stat. 968; 50 U.S.C. 2471(1)).

SEC. 3145. DEFENSE ENVIRONMENTAL MANAGEMENT CLEANUP REFORM PROGRAM.

    (a) Program Required.--From funds made available pursuant to 
section 3102(a)(2) for defense environmental management cleanup reform, 
the Secretary of Energy shall carry out a program to reform DOE 
environmental management activities. In carrying out the program, the 
Secretary shall allocate, to each site for which the Secretary has 
submitted to the congressional defense committees a site performance 
management plan, the amount of those funds that such plan requires.
    (b) Transfer and Merger of Funds.--(1) Funds so allocated shall, 
notwithstanding section 3624, be transferred to the account for DOE 
environmental management activities and, subject to paragraph (2) and 
subsection (c), shall be merged with and be available for the same 
purposes and for the same period as the funds available in such 
account. The authority provided by section 3629 shall apply to funds so 
transferred.
    (2) No funds so allocated may be obligated or expended until 30 
days after the Secretary submits to the congressional defense 
committees a description of the activities to be carried out at each 
site to which funds are so allocated.
    (c) Limitation on Use of All Merged Funds.--Upon a transfer and 
merger of funds under subsection (b), all funds in the merged account 
that are available with respect to the site may be used only to carry 
out the site performance management plan for the site.
    (d) Site Performance Management Plan Defined.--For purposes of this 
section, a site performance management plan for a site is a plan, 
agreed to by the applicable Federal and State agencies with regulatory 
jurisdiction with respect to the site, for the performance of 
activities to accelerate the reduction of environmental risk in 
connection with, and to accelerate the environmental cleanup of, the 
site.
    (e) DOE Environmental Management Activities Defined.--For purposes 
of this section, the term ``DOE environmental management activities'' 
means environmental restoration and waste management activities of the 
Department of Energy in carrying out programs necessary for national 
security.

SEC. 3146. LIMITATION ON OBLIGATION OF FUNDS FOR ROBUST NUCLEAR EARTH 
              PENETRATOR PROGRAM PENDING SUBMISSION OF REPORT.

    (a) Report-and-Wait Requirement.--None of the funds made available 
to the Secretary of Energy for fiscal year 2003 for the Robust Nuclear 
Earth Penetrator program may be obligated until--
        (1) the Secretary of Defense submits to the Committees on Armed 
    Services of the Senate and House of Representatives a report 
    described in subsection (b); and
        (2) a period of 30 days has passed after such report is 
    received by those committees.
    (b) Report.--A report under subsection (a)(1) is a report on the 
Robust Nuclear Earth Penetrator program, prepared by the Secretary of 
Defense in consultation with the Secretary of Energy, that sets forth 
the following:
        (1) The military requirements for the Robust Nuclear Earth 
    Penetrator.
        (2) The nuclear weapons employment policy regarding the Robust 
    Nuclear Earth Penetrator.
        (3) A detailed description of the categories or types of 
    targets that the Robust Nuclear Earth Penetrator is designed to 
    hold at risk.
        (4) An assessment of the ability of conventional weapons to 
    defeat the same categories and types of targets as are described 
    pursuant to paragraph (3).

                   Subtitle C--Proliferation Matters

SEC. 3151. TRANSFER TO NATIONAL NUCLEAR SECURITY ADMINISTRATION OF 
              DEPARTMENT OF DEFENSE'S COOPERATIVE THREAT REDUCTION 
              PROGRAM RELATING TO ELIMINATION OF WEAPONS GRADE 
              PLUTONIUM PRODUCTION IN RUSSIA.

    (a) Transfer of Program.--There are hereby transferred to the 
Administrator for Nuclear Security the following:
        (1) The program, within the Cooperative Threat Reduction 
    program of the Department of Defense, relating to the elimination 
    of weapons grade plutonium production in Russia.
        (2) All functions, powers, duties, and activities of that 
    program performed before the date of the enactment of this Act by 
    the Department of Defense.
    (b) Transfer of Assets.--(1) Notwithstanding any restriction or 
limitation in law on the availability of Cooperative Threat Reduction 
funds specified in paragraph (2), so much of the property, records, and 
unexpended balances of appropriations, allocations, and other funds 
employed, used, held, available, or to be made available in connection 
with the program transferred by subsection (a) are transferred to the 
Administrator for use in connection with the program transferred.
    (2) The Cooperative Threat Reduction funds specified in this 
paragraph are the following:
        (A) Fiscal year 2002 Cooperative Threat Reduction funds, as 
    specified in section 1301(b) of the National Defense Authorization 
    Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1254; 22 
    U.S.C. 5952 note).
        (B) Fiscal year 2001 Cooperative Threat Reduction funds, as 
    specified in section 1301(b) of the Floyd D. Spence National 
    Defense Authorization Act for Fiscal Year 2001 (as enacted into law 
    by Public Law 106-398; 114 Stat. 1654A-339; 22 U.S.C. 5959 note).
        (C) Fiscal year 2000 Cooperative Threat Reduction funds, as 
    specified in section 1301(b) of the National Defense Authorization 
    Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 792; 22 
    U.S.C. 5952 note).
    (c) Availability of Transferred Funds.--(1) Notwithstanding any 
restriction or limitation in law on the availability of Cooperative 
Threat Reduction funds specified in subsection (b)(2), the Cooperative 
Threat Reduction funds transferred under subsection (b) for the program 
referred to in subsection (a) shall be available for activities as 
follows:
        (A) To design and construct, refurbish, or both, fossil fuel 
    energy plants in Russia that provide alternative sources of energy 
    to the energy plants in Russia that produce weapons grade 
    plutonium.
        (B) To carry out limited safety upgrades of not more than three 
    energy plants in Russia that produce weapons grade plutonium, 
    provided that such upgrades do not extend the life of those plants.
    (2) Amounts available under paragraph (1) for activities referred 
to in that paragraph shall remain available for obligation for three 
fiscal years.
    (d) Limitation.--(1) Of the amounts authorized to be appropriated 
by this title or any other Act for the program referred to in 
subsection (a), the Administrator for Nuclear Security may not obligate 
any funds for construction, or obligate or expend more than 
$100,000,000 for that program, until 30 days after the later of--
        (A) the date on which the Administrator submits to the 
    congressional defense committees, the Committee on International 
    Relations of the House of Representatives, and the Committee on 
    Foreign Relations of the Senate, a copy of an agreement or 
    agreements entered into between the United States Government and 
    the Government of the Russian Federation to shut down the three 
    plutonium-producing reactors in Russia as specified under paragraph 
    (2); and
        (B) the date on which the Administrator submits to the 
    committees specified in subparagraph (A) a report on a plan to 
    achieve international participation in the program referred to in 
    subsection (a), including cost sharing.
    (2) The agreement (or agreements) under paragraph (1)(A) shall 
contain--
        (A) a commitment to shut down the three plutonium-producing 
    reactors;
        (B) the date on which each such reactor will be shut down;
        (C) a schedule and milestones for each such reactor to complete 
    the shutdown of such reactor by the date specified under 
    subparagraph (B);
        (D) a schedule and milestones for refurbishment or construction 
    of fossil fuel energy plants to be undertaken by the Government of 
    the Russian Federation in support of the program;
        (E) an arrangement for access to sites and facilities necessary 
    to meet such schedules and milestones;
        (F) an arrangement for audit and examination procedures in 
    order to evaluate progress in meeting such schedules and 
    milestones; and
        (G) any cost sharing arrangements between the United States 
    Government and the Government of the Russian Federation in 
    undertaking activities under such agreement (or agreements).

SEC. 3152. REPEAL OF REQUIREMENT FOR REPORTS ON OBLIGATION OF FUNDS FOR 
              PROGRAMS ON FISSILE MATERIALS IN RUSSIA.

    Section 3131 of the National Defense Authorization Act for Fiscal 
Year 1996 (Public Law 104-106; 110 Stat. 617; 22 U.S.C. 5952 note) is 
amended--
        (1) in subsection (a), by striking ``(a) Authority.--''; and
        (2) by striking subsection (b).

SEC. 3153. EXPANSION OF ANNUAL REPORTS ON STATUS OF NUCLEAR MATERIALS 
              PROTECTION, CONTROL, AND ACCOUNTING PROGRAMS.

    (a) Covered Programs.--Subsection (a) of section 3171 of the Floyd 
D. Spence National Defense Authorization Act for Fiscal Year 2001 (as 
enacted into law by Public Law 106-398; 114 Stat. 1654A-475; 22 U.S.C. 
5952 note) is amended by striking ``Russia that'' and inserting 
``countries where such materials''.
    (b) Report Contents.--Subsection (b) of that section is amended--
        (1) in paragraph (1) by inserting ``in each country covered by 
    subsection (a)'' after ``locations,'';
        (2) in paragraph (2), by striking ``in Russia'' and inserting 
    ``in each such country'';
        (3) in paragraph (3), by inserting ``in each such country'' 
    after ``subsection (a)''; and
        (4) in paragraph (5), by striking ``by total amount and by 
    amount per fiscal year'' and inserting ``by total amount per 
    country and by amount per fiscal year per country''.

SEC. 3154. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, 
              RADIOLOGICAL, CHEMICAL, OR BIOLOGICAL WEAPONS.

    (a) Extension of Testing.--Section 1415 of the Defense Against 
Weapons of Mass Destruction Act of 1996 (title XIV of Public Law 104-
201; 110 Stat. 2720; 50 U.S.C. 2315) is amended--
        (1) in subsection (a)(2), by striking ``of five successive 
    fiscal years beginning with fiscal year 1997'' and inserting ``of 
    fiscal years 1997 through 2013''; and
        (2) in subsection (b)(2), by striking ``of five successive 
    fiscal years beginning with fiscal year 1997'' and inserting ``of 
    fiscal years 1997 through 2013''.
    (b) Construction of Extension With Designation of Attorney General 
as Lead Official.--The amendments made by subsection (a) may not be 
construed as modifying the designation of the President titled 
``Designation of the Attorney General as the Lead Official for the 
Emergency Response Assistance Program Under Sections 1412 and 1415 of 
the National Defense Authorization Act for Fiscal Year 1997'', dated 
April 6, 2000, designating the Attorney General to assume programmatic 
and funding responsibilities for the Emergency Response Assistance 
Program under sections 1412 and 1415 of the Defense Against Weapons of 
Mass Destruction Act of 1996 (title XIV of the National Defense 
Authorization Act for Fiscal Year 1997).

SEC. 3155. COOPERATIVE PROGRAM ON RESEARCH, DEVELOPMENT, AND 
              DEMONSTRATION OF TECHNOLOGY REGARDING NUCLEAR OR 
              RADIOLOGICAL TERRORISM.

    (a) Program Required.--The Administrator for Nuclear Security shall 
carry out with the Russian Federation a cooperative program on the 
research, development, and demonstration of technologies for protection 
from and response to nuclear or radiological terrorism.
    (b) Program Elements.--In carrying out the program required by 
subsection (a), the Administrator shall--
        (1) conduct research and development of technology for 
    protection from nuclear or radiological terrorism, including 
    technology for the detection, identification, assessment, control, 
    and disposition of radiological materials that could be used for 
    nuclear terrorism; and
        (2) provide, where feasible, for the demonstration to other 
    countries of technologies or methodologies on matters relating to 
    nuclear or radiological terrorism, including--
            (A) the demonstration of technologies developed under the 
        program to respond to nuclear or radiological terrorism;
            (B) the demonstration of technologies developed under the 
        program for the disposal of radioactive materials;
            (C) the demonstration of methodologies developed under the 
        program for use in evaluating the radiological threat of 
        radiological sources identified as not under current accounting 
        programs in the audit report of the Inspector General of the 
        Department of Energy titled ``Accounting for Sealed Sources of 
        Nuclear Material Provided to Foreign Countries'' (DOE/IG-0546);
            (D) in coordination with the Nuclear Regulatory Commission, 
        the demonstration of methodologies developed under the program 
        to facilitate the development of a regulatory framework for 
        licensing and controlling radioactive sources; and
            (E) in coordination with the Office of Environment, Safety, 
        and Health of the Department of Energy, the demonstration of 
        methodologies developed under the program to facilitate 
        development of consistent criteria for screening international 
        transfers of radiological materials.
    (c) Consultation.--In carrying out activities in accordance with 
subsection (b)(2), the Administrator shall consult with--
        (1) the Secretary of Defense, Secretary of State, and Secretary 
    of Commerce; and
        (2) the International Atomic Energy Agency.
    (d) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(a)(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation, up to $15,000,000 may be available for carrying out 
this section.

SEC. 3156. MATTERS RELATING TO THE INTERNATIONAL MATERIALS PROTECTION, 
              CONTROL, AND ACCOUNTING PROGRAM OF THE DEPARTMENT OF 
              ENERGY.

    (a) Radiological Dispersal Device Materials Protection, Control, 
and Accounting.--The Secretary of Energy may establish within the 
International Materials Protection, Control, and Accounting program of 
the Department of Energy a program on the protection, control, and 
accounting of materials usable in radiological dispersal devices. In 
establishing such program, the Secretary shall--
        (1) identify the sites and radiological materials to be covered 
    by such program;
        (2) carry out a risk assessment of such radiological materials; 
    and
        (3) identify and establish the costs of and schedules for such 
    program.
    (b) Revised Focus for Materials Protection, Control, and Accounting 
Program of Russian Federation.--(1) The Secretary of Energy shall work 
cooperatively with the Russian Federation to develop, as soon as 
practicable but not later than January 1, 2013, a sustainable nuclear 
materials protection, control, and accounting system for the nuclear 
materials of the Russian Federation that is supported solely by the 
Russian Federation.
    (2) The Secretary shall work with the Russian Federation to 
identify various alternatives to provide the United States adequate 
transparency in the nuclear materials protection, control, and 
accounting program of the Russian Federation to assure that such 
program is meeting applicable goals for nuclear materials protection, 
control, and accounting.
    (c) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(a)(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation, up to $5,000,000 may be available for carrying out 
this section.

SEC. 3157. ACCELERATED DISPOSITION OF HIGHLY ENRICHED URANIUM.

    (a) Program on Accelerated Disposition of HEU Authorized.--(1) The 
Secretary of Energy may carry out a program to pursue with the Russian 
Federation options for blending highly enriched uranium so that the 
concentration of U-235 in such uranium is below 20 percent.
    (2) The options pursued under paragraph (1) shall include expansion 
of the Material Consolidation and Conversion program of the Department 
of Energy to include--
        (A) additional facilities for the blending of highly enriched 
    uranium; and
        (B) additional centralized secure storage facilities for highly 
    enriched uranium designated for blending.
    (3) Any site selected for the storage of uranium or blended 
material under paragraph (2)(B) shall undergo complete materials 
protection, control, and accounting upgrades before the commencement of 
the storage of uranium or blended material at such site under the 
program.
    (b) Construction With HEU Disposition Agreement.--Nothing in this 
section may be construed as terminating, modifying, or otherwise 
affecting requirements for the disposition of highly enriched uranium 
under the Agreement Between the Government of the United States of 
America and the Government of the Russian Federation Concerning the 
Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons, 
signed at Washington on February 18, 1993.
    (c) Limitation on Release for Sale of Blended Uranium.--Uranium 
blended under this section may not be released for sale until the 
earlier of--
        (1) January 1, 2014; or
        (2) the date on which the Secretary certifies that such uranium 
    can be absorbed into the global market without undue disruption to 
    the uranium mining, conversion, and enrichment industry in the 
    United States.
    (d) Amount for Activities.--Of the amount to be appropriated by 
section 3101(a)(2) for the Department of Energy for the National 
Nuclear Security Administration for defense nuclear nonproliferation, 
up to $10,000,000 may be available for carrying out this section.

SEC. 3158. STRENGTHENED INTERNATIONAL SECURITY FOR NUCLEAR MATERIALS 
              AND SECURITY OF NUCLEAR OPERATIONS.

    (a) Report on Options for International Program To Strengthen 
Security.--(1) Not later than 270 days after the date of the enactment 
of this Act, the Secretary of Energy shall submit to Congress a report 
on options for an international program to develop strengthened 
security for nuclear reactors and associated materials outside the 
United States.
    (2) In evaluating options for purposes of the report, the Secretary 
shall consult with the Nuclear Regulatory Commission and the 
International Atomic Energy Agency on the feasibility and advisability 
of actions to reduce the risks associated with terrorist attacks on 
nuclear reactors outside the United States.
    (b) Joint Programs With Russia on Proliferation-Resistant Nuclear 
Energy Technologies.--(1) The Secretary shall pursue with the Ministry 
of Atomic Energy of the Russian Federation joint programs between the 
United States and the Russian Federation on the development of 
proliferation-resistant nuclear energy technologies, including advanced 
fuel cycles.
    (2) Of the amount authorized to be appropriated by section 
3101(a)(2) for the Department of Energy for the National Nuclear 
Security Administration for defense nuclear nonproliferation, up to 
$10,000,000 may be available for carrying out the joint programs 
referred to in paragraph (1).
    (c) Assistance Regarding Hostile Insiders.--The Secretary may, 
utilizing appropriate expertise of the Department of Energy and the 
Nuclear Regulatory Commission, provide technical assistance to nuclear 
reactor facilities outside the United States with respect to the 
interdiction of hostile insiders at such facilities in order to prevent 
incidents arising from the disablement of the vital systems of such 
facilities.

SEC. 3159. EXPORT CONTROL PROGRAMS.

    (a) Authority To Pursue Options for Strengthening Export Control 
Programs.--The Secretary of Energy, in coordination with the Secretary 
of State, may pursue in the region of the former Soviet Union and other 
regions of concern options for accelerating programs that assist the 
countries in such regions in improving their domestic export control 
programs for materials, technologies, and expertise relevant to the 
construction or use of a nuclear or radiological dispersal device.
    (b) Amount for Activities.--Of the amount authorized to be 
appropriated by section 3101(a)(2) for the Department of Energy for the 
National Nuclear Security Administration for defense nuclear 
nonproliferation, up to $5,000,000 may be available for carrying out 
this section.

SEC. 3160. PLAN FOR ACCELERATED RETURN OF WEAPONS-USABLE NUCLEAR 
              MATERIALS.

    (a) Plan for Accelerated Return.--The Secretary of Energy shall 
work with the Russian Federation to develop a plan to accelerate the 
return to Russia of all weapons-usable nuclear materials located in 
research reactors and other facilities outside Russia that were 
supplied by the former Soviet Union.
    (b) Funding and Schedules.--As part of the plan under subsection 
(a), the Secretary shall identify the funding and schedules required to 
assist the research reactors and facilities referred to in that 
subsection in--
        (1) transferring highly enriched uranium to Russia; and
        (2) upgrading the materials protection, control, and accounting 
    procedures at such research reactors and facilities until the 
    weapons-usable nuclear materials in such reactors and facilities 
    are returned in accordance with that subsection.
    (c) Coordination.--The provision of assistance under subsection (b) 
shall be closely coordinated with the International Atomic Energy 
Agency.

SEC. 3161. SENSE OF CONGRESS ON AMENDMENT OF CONVENTION ON PHYSICAL 
              PROTECTION OF NUCLEAR MATERIALS.

    (a) Sense of Congress.--It is the sense of Congress that the 
President should encourage amendment of the Convention on the Physical 
Protection of Nuclear Materials in order to provide that the Convention 
shall--
        (1) apply to both the domestic and international use and 
    transport of nuclear materials;
        (2) incorporate fundamental practices for the physical 
    protection of such materials; and
        (3) address protection against sabotage involving nuclear 
    materials.
    (b) Convention on the Physical Protection of Nuclear Material 
Defined.--In this section, the term ``Convention on the Physical 
Protection of Nuclear Materials'' means the Convention on the Physical 
Protection of Nuclear Materials, With Annex, done at Vienna on October 
26, 1979.

SEC. 3162. SENSE OF CONGRESS ON PROGRAM TO SECURE STOCKPILES OF HIGHLY 
              ENRICHED URANIUM AND PLUTONIUM.

    It is the sense of Congress that the Secretary of Energy should, in 
consultation with the Secretary of State and Secretary of Defense, 
develop a comprehensive program of activities to encourage all 
countries with nuclear materials to adhere to, or to adopt standards 
equivalent to, the International Atomic Energy Agency standard on The 
Physical Protection of Nuclear Material and Nuclear Facilities 
(INFCIRC/225/Rev.4), relating to the security of stockpiles of highly 
enriched uranium (HEU) and plutonium (Pu).

                       Subtitle D--Other Matters

SEC. 3171. INDEMNIFICATION OF DEPARTMENT OF ENERGY CONTRACTORS.

    Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 
2210(d)(1)(A)) is amended by striking ``until August 1, 2002,'' and 
inserting ``until December 31, 2004,''.

SEC. 3172. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
              NATIONAL LABORATORY, NEW MEXICO.

    (a) Support for Fiscal Year 2003.--From amounts authorized to be 
appropriated to the Secretary of Energy by this title, $6,900,000 shall 
be available for payment by the Secretary for fiscal year 2003 to the 
Los Alamos National Laboratory Foundation, a not-for-profit foundation 
chartered as described in section 3167(a) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 
2052).
    (b) Use of Funds.--The foundation referred to in subsection (a) 
shall--
        (1) utilize funds provided under this section as a contribution 
    to the endowment fund for the foundation; and
        (2) use the income generated from investments in the endowment 
    fund that are attributable to the payment made under this section 
    to fund programs to support the educational needs of children in 
    the public schools in the vicinity of Los Alamos National 
    Laboratory, New Mexico.
    (c) Repeal of Superseded Authority and Modification of Authority To 
Extend Contract.--(1) Subsection (b) of section 3136 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1368) is amended to read as follows:
    ``(b) Support for Fiscal Years 2003 through 2005.--Subject to the 
availability of appropriations, the Secretary may provide for a 
contract extension through fiscal year 2005 similar to the contract 
extension referred to in subsection (a)(2).''.
    (2) The amendment made by paragraph (1) shall take effect on 
October 1, 2002.
    (d) Report.--(1) The Secretary of Energy, in consultation with the 
Administrator for Nuclear Security, shall conduct a study of options 
for funding the contract extension authorized by subsection (b) of such 
section 3136 (as amended by subsection (c)) other than through annual 
appropriations. The study should also include options for providing 
cost of living adjustments to teachers in the public schools in the 
vicinity of Los Alamos National Laboratory, New Mexico, other than 
through such contract extension.
    (2) Not later than December 31, 2003, the Secretary shall submit to 
the congressional defense committees a report on the study conducted 
under paragraph (1). The report shall set forth the findings and 
conclusions of the study, together with any recommendations as a result 
of the study.

SEC. 3173. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF ENERGY 
              NUCLEAR FACILITIES.

    (a) Worker Health and Safety Rules.--The Atomic Energy Act of 1954 
is amended by inserting after section 234B (42 U.S.C. 2282b) the 
following new section:

``SEC. 234C. WORKER HEALTH AND SAFETY RULES FOR DEPARTMENT OF ENERGY 
              NUCLEAR FACILITIES.

    ``a. Regulations Required.--
        ``(1) In general.--The Secretary shall promulgate regulations 
    for industrial and construction health and safety at Department of 
    Energy facilities that are operated by contractors covered by 
    agreements of indemnification under section 170 d. of the Atomic 
    Energy Act of 1954, after public notice and opportunity for comment 
    under section 553 of title 5, United States Code (commonly known as 
    the `Administrative Procedure Act'). Such regulations shall, 
    subject to paragraph (3), provide a level of protection for workers 
    at such facilities that is substantially equivalent to the level of 
    protection currently provided to such workers at such facilities.
        ``(2) Applicability.--The regulations promulgated under 
    paragraph (1) shall not apply to any facility that is a component 
    of, or any activity conducted under, the Naval Nuclear Propulsion 
    Program provided for under Executive Order No. 12344, dated 
    February 1, 1982 (42 U.S.C. 7158 note) (as in force pursuant to 
    section 1634 of the Department of Defense Authorization Act, 1985 
    (Public Law 98-525; 42 U.S.C. 7158 note)).
        ``(3) Flexibility.--In promulgating the regulations under 
    paragraph (1), the Secretary shall include flexibility--
            ``(A) to tailor implementation of such regulations to 
        reflect activities and hazards associated with a particular 
        work environment;
            ``(B) to take into account special circumstances at a 
        facility that is, or is expected to be, permanently closed and 
        that is expected to be demolished, or title to which is 
        expected to be transferred to another entity for reuse; and
            ``(C) to achieve national security missions of the 
        Department of Energy in an efficient and timely manner.
        ``(4) No effect on health and safety enforcement.--This 
    subsection does not diminish or otherwise affect the enforcement or 
    the application of any other law, regulation, order, or contractual 
    obligation relating to worker health and safety.
    ``b. Civil Penalties.--
        ``(1) In general.--A person (or any subcontractor or supplier 
    of the person) who has entered into an agreement of indemnification 
    under section 170 d. (or any subcontractor or supplier of the 
    person) that violates (or is the employer of a person that 
    violates) any regulation promulgated under subsection a. shall be 
    subject to a civil penalty of not more than $70,000 for each such 
    violation.
        ``(2) Continuing violations.--If any violation under this 
    subsection is a continuing violation, each day of the violation 
    shall constitute a separate violation for the purpose of computing 
    the civil penalty under paragraph (1).
    ``c. Contract Penalties.--
        ``(1) In general.--The Secretary shall include in each contract 
    with a contractor of the Department who has entered into an 
    agreement of indemnification under section 170 d. provisions that 
    provide an appropriate reduction in the fees or amounts paid to the 
    contractor under the contract in the event of a violation by the 
    contractor or contractor employee of any regulation promulgated 
    under subsection a.
        ``(2) Contents.--The provisions shall specify various degrees 
    of violations and the amount of the reduction attributable to each 
    degree of violation.
    ``d. Coordination of Penalties.--
        ``(1) Choice of penalties.--For any violation by a person of a 
    regulation promulgated under subsection a., the Secretary shall 
    pursue either civil penalties under subsection b. or contract 
    penalties under subsection c., but not both.
        ``(2) Maximum amount.--In the case of an entity described in 
    subsection d. of section 234A, the total amount of civil penalties 
    under subsection b. and contract penalties under subsection c. in a 
    fiscal year may not exceed the total amount of fees paid by the 
    Department of Energy to that entity in that fiscal year.
        ``(3) Coordination with section 234a.--The Secretary shall 
    ensure that a contractor of the Department is not penalized both 
    under this section and under section 234A for the same 
    violation.''.
    (b) Promulgation of Initial Regulations.--
        (1) Deadline for promulgating regulations.--The Secretary of 
    Energy shall promulgate the regulations required by subsection a. 
    of section 234C of the Atomic Energy Act of 1954 (as added by 
    subsection (a)) not later than one year after the date of the 
    enactment of this Act.
        (2) Effective date.--The regulations promulgated under 
    paragraph (1) shall take effect on the date that is one year after 
    the promulgation date of the regulations.
    (c) Prohibition.--The Secretary of Energy shall not participate in 
or otherwise support any study or other project relating to a 
modification in the scope of the regulations enforceable by civil 
penalties under section 234A or 234C of the Atomic Energy Act of 1954, 
or the responsibility of the Secretary to implement and enforce such 
regulations, until after the date on which the regulations for such 
purposes under such section 234C take effect in accordance with 
subsection (b).

SEC. 3174. EXTENSION OF AUTHORITY TO APPOINT CERTAIN SCIENTIFIC, 
              ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 3161(c)(1) of the National Defense Authorization Act for 
Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by striking 
``September 30, 2002'' and inserting ``September 30, 2004''.

SEC. 3175. ONE-YEAR EXTENSION OF PANEL TO ASSESS THE RELIABILITY, 
              SAFETY, AND SECURITY OF THE UNITED STATES NUCLEAR 
              STOCKPILE.

    Section 3159 of the Strom Thurmond National Defense Authorization 
Act for Fiscal Year 1999 (42 U.S.C. 2121 note) is amended--
        (1) in subsection (f), by striking ``atomic energy defense 
    activities'' and inserting ``the National Nuclear Security 
    Administration'';
        (2) in subsection (g), by striking ``three years'' and all that 
    follows through the period at the end and inserting ``April 1, 
    2003.''; and
        (3) by adding at the end the following new subsection:
    ``(i) Follow-Up Report.--Not later than February 1, 2003, the panel 
shall submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a follow-up 
report assessing progress toward meeting the expectations set forth by 
the panel for the United States stockpile stewardship program, and 
making recommendations for corrective legislative action where progress 
has been unsatisfactory.''.

SEC. 3176. REPORT ON STATUS OF ENVIRONMENTAL MANAGEMENT INITIATIVES TO 
              ACCELERATE THE REDUCTION OF ENVIRONMENTAL RISKS AND 
              CHALLENGES POSED BY THE LEGACY OF THE COLD WAR.

    (a) Report Required.--The Secretary of Energy shall prepare a 
report on the status of those environmental management initiatives 
specified in subsection (c) that are being undertaken to accelerate the 
reduction of the environmental risks and challenges that, as a result 
of the legacy of the Cold War, are faced by the Department of Energy, 
contractors of the Department, and applicable Federal and State 
agencies with regulatory jurisdiction.
    (b) Contents.--The report shall include the following matters:
        (1) A discussion of the progress made in reducing such risks 
    and challenges in each of the following areas:
            (A) Acquisition strategy and contract management.
            (B) Regulatory agreements.
            (C) Interim storage and final disposal of high-level waste, 
        spent nuclear fuel, transuranic waste, and low-level waste.
            (D) Closure and transfer of environmental remediation 
        sites.
            (E) Achievements in innovation by contractors of the 
        Department with respect to accelerated risk reduction and 
        cleanup.
            (F) Consolidation of special nuclear materials and 
        improvements in safeguards and security.
        (2) An assessment of the progress made in streamlining risk 
    reduction processes of the environmental management program of the 
    Department.
        (3) An assessment of the progress made in improving the 
    responsiveness and effectiveness of the environmental management 
    program of the Department.
        (4) Any proposals for legislation that the Secretary considers 
    necessary to carry out such initiatives, including the 
    justification for each such proposal.
    (c) Initiatives Covered.--The environmental management initiatives 
referred to in subsection (a) are the initiatives arising out of the 
report titled ``Top-to-Bottom Review of the Environmental Management 
Program'' and dated February 4, 2002, with respect to the environmental 
restoration and waste management activities of the Department of Energy 
in carrying out programs necessary for national security.
    (d) Submission of Report.--On the date on which the budget 
justification materials in support of the Department of Energy budget 
for fiscal year 2004 (as submitted with the budget of the President 
under section 1105(a) of title 31, United States Code) are submitted to 
Congress, the Secretary shall submit to the congressional defense 
committees the report required by subsection (a).

Subtitle E--Disposition of Weapons-Usable Plutonium at Savannah River, 
                             South Carolina

SEC. 3181. FINDINGS.

    Congress makes the following findings:
        (1) In September 2000, the United States and the Russian 
    Federation signed a Plutonium Management and Disposition Agreement 
    by which each agreed to dispose of 34 metric tons of weapons-grade 
    plutonium.
        (2) The agreement with Russia is a significant step toward 
    safeguarding nuclear materials and preventing their diversion to 
    rogue states and terrorists.
        (3) The Department of Energy plans to dispose of 34 metric tons 
    of weapons-grade plutonium in the United States before the end of 
    2019 by converting the plutonium to a mixed-oxide fuel to be used 
    in commercial nuclear power reactors.
        (4) The Department has formulated a plan for implementing the 
    agreement with Russia through construction of a mixed-oxide fuel 
    fabrication facility, the so-called MOX facility, and a pit 
    disassembly and conversion facility at the Savannah River Site, 
    Aiken, South Carolina.
        (5) The United States and the State of South Carolina have a 
    compelling interest in the safe, proper, and efficient operation of 
    the plutonium disposition facilities at the Savannah River Site. 
    The MOX facility will also be economically beneficial to the State 
    of South Carolina, and that economic benefit will not be fully 
    realized unless the MOX facility is built.
        (6) The State of South Carolina desires to ensure that all 
    plutonium transferred to the State of South Carolina is stored 
    safely; that the full benefits of the MOX facility are realized as 
    soon as possible; and, specifically, that all defense plutonium or 
    defense plutonium materials transferred to the Savannah River Site 
    either be processed or be removed expeditiously.

SEC. 3182. DISPOSITION OF WEAPONS-USABLE PLUTONIUM AT SAVANNAH RIVER 
              SITE.

    (a) Plan for Construction and Operation of MOX Facility.--(1) Not 
later than February 1, 2003, the Secretary of Energy shall submit to 
Congress a plan for the construction and operation of the MOX facility 
at the Savannah River Site, Aiken, South Carolina.
    (2) The plan under paragraph (1) shall include--
        (A) a schedule for construction and operations so as to 
    achieve, as of January 1, 2009, and thereafter, the MOX production 
    objective, and to produce 1 metric ton of mixed-oxide fuel by 
    December 31, 2009; and
        (B) a schedule of operations of the MOX facility designed so 
    that 34 metric tons of defense plutonium and defense plutonium 
    materials at the Savannah River Site will be processed into mixed-
    oxide fuel by January 1, 2019.
    (3)(A) Not later than February 15 each year, beginning in 2004 and 
continuing for as long as the MOX facility is in use, the Secretary 
shall submit to Congress a report on the implementation of the plan 
required by paragraph (1).
    (B) Each report under subparagraph (A) for years before 2010 shall 
include--
        (i) an assessment of compliance with the schedules included 
    with the plan under paragraph (2); and
        (ii) a certification by the Secretary whether or not the MOX 
    production objective can be met by January 2009.
    (C) Each report under subparagraph (A) for years after 2009 shall--
        (i) address whether the MOX production objective has been met; 
    and
        (ii) assess progress toward meeting the obligations of the 
    United States under the Plutonium Management and Disposition 
    Agreement.
    (D) Each report under subparagraph (A) for years after 2017 shall 
also include an assessment of compliance with the MOX production 
objective and, if not in compliance, the plan of the Secretary for 
achieving one of the following:
        (i) Compliance with such objective.
        (ii) Removal of all remaining defense plutonium and defense 
    plutonium materials from the State of South Carolina.
    (b) Corrective Actions.--(1) If a report under subsection (a)(3) 
indicates that construction or operation of the MOX facility is behind 
the applicable schedule under subsection (a)(2) by 12 months or more, 
the Secretary shall submit to Congress, not later than August 15 of the 
year in which such report is submitted, a plan for corrective actions 
to be implemented by the Secretary to ensure that the MOX facility 
project is capable of meeting the MOX production objective by January 
1, 2009.
    (2) If a plan is submitted under paragraph (1) in any year after 
2008, the plan shall include corrective actions to be implemented by 
the Secretary to ensure that the MOX production objective is met.
    (3) Any plan for corrective actions under paragraph (1) or (2) 
shall include established milestones under such plan for achieving 
compliance with the MOX production objective.
    (4) If, before January 1, 2009, the Secretary determines that there 
is a substantial and material risk that the MOX production objective 
will not be achieved by 2009 because of a failure to achieve milestones 
set forth in the most recent corrective action plan under this 
subsection, the Secretary shall suspend further transfers of defense 
plutonium and defense plutonium materials to be processed by the MOX 
facility until such risk is addressed and the Secretary certifies that 
the MOX production objective can be met by 2009.
    (5) If, after January 1, 2009, the Secretary determines that the 
MOX production objective has not been achieved because of a failure to 
achieve milestones set forth in the most recent corrective action plan 
under this subsection, the Secretary shall suspend further transfers of 
defense plutonium and defense plutonium materials to be processed by 
the MOX facility until the Secretary certifies that the MOX production 
objective can be met.
    (6)(A) Upon making a determination under paragraph (4) or (5), the 
Secretary shall submit to Congress a report on the options for removing 
from the State of South Carolina an amount of defense plutonium or 
defense plutonium materials equal to the amount of defense plutonium or 
defense plutonium materials transferred to the State of South Carolina 
after April 15, 2002.
    (B) Each report under subparagraph (A) shall include an analysis of 
each option set forth in the report, including the cost and schedule 
for implementation of such option, and any requirements under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 
relating to consideration or selection of such option.
    (C) Upon submittal of a report under paragraph (A), the Secretary 
shall commence any analysis that may be required under the National 
Environmental Policy Act of 1969 in order to select among the options 
set forth in the report.
    (c) Contingent Requirement for Removal of Plutonium and Materials 
From Savannah River Site.--If the MOX production objective is not 
achieved as of January 1, 2009, the Secretary shall, consistent with 
the National Environmental Policy Act of 1969 and other applicable 
laws, remove from the State of South Carolina, for storage or disposal 
elsewhere--
        (1) not later than January 1, 2011, not less than 1 metric ton 
    of defense plutonium or defense plutonium materials; and
        (2) not later than January 1, 2017, an amount of defense 
    plutonium or defense plutonium materials equal to the amount of 
    defense plutonium or defense plutonium materials transferred to the 
    Savannah River Site between April 15, 2002 and January 1, 2017, but 
    not processed by the MOX facility.
    (d) Economic and Impact Assistance.--(1) If the MOX production 
objective is not achieved as of January 1, 2011, the Secretary shall, 
from funds available to the Secretary, pay to the State of South 
Carolina each year beginning on or after that date through 2016 for 
economic and impact assistance an amount equal to $1,000,000 per day, 
not to exceed $100,000,000 per year, until the later of--
        (A) the date on which the MOX production objective is achieved 
    in such year; or
        (B) the date on which the Secretary has removed from the State 
    of South Carolina in such year at least 1 metric ton of defense 
    plutonium or defense plutonium materials.
    (2)(A) If, as of January 1, 2017, the MOX facility has not 
processed mixed-oxide fuel from defense plutonium and defense plutonium 
materials in the amount of not less than--
        (i) one metric ton, in each of any two consecutive calendar 
    years; and
        (ii) three metric tons total,
the Secretary shall, from funds available to the Secretary, pay to the 
State of South Carolina for economic and impact assistance an amount 
equal to $1,000,000 per day, not to exceed $100,000,000 per year, until 
the removal by the Secretary from the State of South Carolina of an 
amount of defense plutonium or defense plutonium materials equal to the 
amount of defense plutonium or defense plutonium materials transferred 
to the Savannah River Site between April 15, 2002, and January 1, 2017, 
but not processed by the MOX facility.
    (B) Nothing in this paragraph may be construed to terminate, 
supersede, or otherwise affect any other requirements of this section.
    (3) If the State of South Carolina obtains an injunction that 
prohibits the Department from taking any action necessary for the 
Department to meet any deadline specified by this subsection, that 
deadline shall be extended for a period of time equal to the period of 
time during which the injunction is in effect.
    (e) Failure To Complete Planned Disposition Program.--If on July 1 
each year beginning in 2020 and continuing for as long as the MOX 
facility is in use, less than 34 metric tons of defense plutonium or 
defense plutonium materials have been processed by the MOX facility, 
the Secretary shall submit to Congress a plan for--
        (1) completing the processing of 34 metric tons of defense 
    plutonium and defense plutonium material by the MOX facility; or
        (2) removing from the State of South Carolina an amount of 
    defense plutonium or defense plutonium materials equal to the 
    amount of defense plutonium or defense plutonium materials 
    transferred to the Savannah River Site after April 15, 2002, but 
    not processed by the MOX facility.
    (f) Removal of Mixed-Oxide Fuel Upon Completion of Operations of 
MOX Facility.--If, one year after the date on which operation of the 
MOX facility permanently ceases, any mixed-oxide fuel remains at the 
Savannah River Site, the Secretary shall submit to Congress--
        (1) a report on when such fuel will be transferred for use in 
    commercial nuclear reactors; or
        (2) a plan for removing such fuel from the State of South 
    Carolina.
    (g) Definitions.--In this section:
        (1) MOX production objective.--The term ``MOX production 
    objective'' means production at the MOX facility of mixed-oxide 
    fuel from defense plutonium and defense plutonium materials at an 
    average rate equivalent to not less than one metric ton of mixed-
    oxide fuel per year. The average rate shall be determined by 
    measuring production at the MOX facility from the date the facility 
    is declared operational to the Nuclear Regulatory Commission 
    through the date of assessment.
        (2) MOX facility.--The term ``MOX facility'' means the mixed-
    oxide fuel fabrication facility at the Savannah River Site, Aiken, 
    South Carolina.
        (3) Defense plutonium; defense plutonium materials.--The terms 
    ``defense plutonium'' and ``defense plutonium materials'' mean 
    weapons-usable plutonium.

SEC. 3183. STUDY OF FACILITIES FOR STORAGE OF PLUTONIUM AND PLUTONIUM 
              MATERIALS AT SAVANNAH RIVER SITE.

    (a) Study.--The Defense Nuclear Facilities Safety Board shall 
conduct a study of the adequacy of the K-Area Materials Storage 
facility (KAMS), and related support facilities such as Building 235-F, 
at the Savannah River Site, Aiken, South Carolina, for the storage of 
defense plutonium and defense plutonium materials in connection with 
the disposition program provided in section 3182 and in connection with 
the amended Record of Decision of the Department of Energy for fissile 
materials disposition.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Defense Nuclear Facilities Safety Board 
shall submit to Congress and the Secretary of Energy a report on the 
study conducted under subsection (a).
    (c) Report Elements.--The report under subsection (b) shall--
        (1) address--
            (A) the suitability of KAMS and related support facilities 
        for monitoring and observing any defense plutonium or defense 
        plutonium materials stored in KAMS;
            (B) the adequacy of the provisions made by the Department 
        for remote monitoring of such defense plutonium and defense 
        plutonium materials by way of sensors and for handling of 
        retrieval of such defense plutonium and defense plutonium 
        materials; and
            (C) the adequacy of KAMS should such defense plutonium and 
        defense plutonium materials continue to be stored at KAMS after 
        2019; and
        (2) include such proposals as the Defense Nuclear Facilities 
    Safety Board considers appropriate to enhance the safety, 
    reliability, and functionality of KAMS.
    (d) Reports on Actions on Proposals.--Not later than 6 months after 
the date on which the report under subsection (b) is submitted to 
Congress, and every year thereafter, the Secretary and the Board shall 
each submit to Congress a report on the actions taken by the Secretary 
in response to the proposals, if any, included in the report.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 2003, 
$19,000,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 2003, the 
National Defense Stockpile Manager may obligate up to $76,400,000 of 
the funds in the National Defense Stockpile Transaction Fund 
established under subsection (a) of section 9 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized 
uses of such funds under subsection (b)(2) of such section, including 
the disposal of hazardous materials that are environmentally sensitive.
    (b) Additional Obligations.--The National Defense Stockpile Manager 
may obligate amounts in excess of the amount specified in subsection 
(a) if the National Defense Stockpile Manager notifies Congress that 
extraordinary or emergency conditions necessitate the additional 
obligations. The National Defense Stockpile Manager may make the 
additional obligations described in the notification after the end of 
the 45-day period beginning on the date on which Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section shall be 
subject to such limitations as may be provided in appropriations Acts.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are hereby authorized to be appropriated to the 
Secretary of Energy $21,069,000 for fiscal year 2003 for the purpose of 
carrying out activities under chapter 641 of title 10, United States 
Code, relating to the naval petroleum reserves.
    (b) Period of Availability.--Funds appropriated pursuant to the 
authorization of appropriations in subsection (a) shall remain 
available until expended.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2003.
Sec. 3502. Authority to convey vessel USS SPHINX (ARL-24).
Sec. 3503. Independent analysis of title XI insurance guarantee 
          applications.
Sec. 3504. Preparation as artificial reefs and scrapping of obsolete 
          vessels.

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2003.

    Funds are hereby authorized to be appropriated for fiscal year 
2003, to be available without fiscal year limitation if so provided in 
appropriations Acts, for the use of the Department of Transportation 
for the Maritime Administration as follows:
        (1) For expenses necessary for operations and training 
    activities, $93,132,000.
        (2) For expenses under the loan guarantee program authorized by 
    title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et 
    seq.), $54,126,000, of which--
            (A) $50,000,000 is for the cost (as defined in section 
        502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 
        661a(5))) of loan guarantees under the program; and
            (B) $4,126,000 is for administrative expenses related to 
        loan guarantee commitments under the program.
        (3) For expenses to dispose of obsolete vessels in the National 
    Defense Reserve Fleet, including provision of assistance under 
    section 7 of Public Law 92-402 (as amended by this title), 
    $20,000,000.

SEC. 3502. AUTHORITY TO CONVEY VESSEL USS SPHINX (ARL-24).

    (a) In General.--Notwithstanding any other law, the Secretary of 
Transportation may convey the right, title, and interest of the United 
States Government in and to the vessel USS SPHINX (ARL-24), to the 
Dunkirk Historical Lighthouse and Veterans Park Museum (a not-for-
profit corporation, in this section referred to as the ``recipient'') 
for use as a military museum, if--
        (1) the recipient agrees to use the vessel as a nonprofit 
    military museum;
        (2) the vessel is not used for commercial transportation 
    purposes;
        (3) the recipient agrees to make the vessel available to the 
    Government when the Secretary requires use of the vessel by the 
    Government;
        (4) the recipient agrees that when the recipient no longer 
    requires the vessel for use as a military museum--
            (A) the recipient will, at the discretion of the Secretary, 
        reconvey the vessel to the Government in good condition except 
        for ordinary wear and tear; or
            (B) if the Board of Trustees of the recipient has decided 
        to dissolve the recipient according to the laws of the State of 
        New York, then--
                (i) the recipient shall distribute the vessel, as an 
            asset of the recipient, to a person that has been 
            determined exempt from taxation under the provisions of 
            section 501(c)(3) of the Internal Revenue Code, or to the 
            Federal Government or a State or local government for a 
            public purpose; and
                (ii) the vessel shall be disposed of by a court of 
            competent jurisdiction of the county in which the principal 
            office of the recipient is located, for such purposes as 
            the court shall determine, or to such organizations as the 
            court shall determine are organized exclusively for public 
            purposes;
        (5) the recipient agrees to hold the Government harmless for 
    any claims arising from exposure to asbestos, polychlorinated 
    biphenyls, or lead paint after conveyance of the vessel, except for 
    claims arising from use by the Government under paragraph (3) or 
    (4); and
        (6) the recipient has available, for use to restore the vessel, 
    in the form of cash, liquid assets, or a written loan commitment, 
    financial resources of at least $100,000.
    (b) Delivery of Vessel.--If a conveyance is made under this 
section, the Secretary shall deliver the vessel at the place where the 
vessel is located on the date of enactment of this Act, in its present 
condition, and without cost to the Government.
    (c) Other Unneeded Equipment.--The Secretary may also convey any 
unneeded equipment from other vessels in the National Defense Reserve 
Fleet in order to restore the USS SPHINX (ARL-24) to museum quality.
    (d) Retention of Vessel in NDRF.--The Secretary shall retain in the 
National Defense Reserve Fleet the vessel authorized to be conveyed 
under subsection (a), until the earlier of--
        (1) 2 years after the date of the enactment of this Act; or
        (2) the date of conveyance of the vessel under subsection (a).

SEC. 3503. INDEPENDENT ANALYSIS OF TITLE XI INSURANCE GUARANTEE 
              APPLICATIONS.

    Section 1104A of the Merchant Marine Act, 1936 (46 App. U.S.C. 
1274) is amended--
        (1) by adding at the end of subsection (d) the following:
    ``(4) The Secretary may obtain independent analysis of an 
application for a guarantee or commitment to guarantee under this 
title.''; and
        (2) in subsection (f) by inserting ``(including for obtaining 
    independent analysis under subsection (d)(4))'' after 
    ``applications for a guarantee''.

SEC. 3504. PREPARATION AS ARTIFICIAL REEFS AND SCRAPPING OF OBSOLETE 
              VESSELS.

    (a) Financial Assistance to States for Preparation of Transferred 
Obsolete Ships for Use as Artificial Reefs.--(1) Public Law 92-402 (16 
U.S.C. 1220 et seq.) is amended--
        (A) by redesignating section 7 as section 8; and
        (B) by inserting after section 6 the following new section 7:

``SEC. 7. FINANCIAL ASSISTANCE TO STATE TO PREPARE TRANSFERRED SHIP.

    ``(a) Assistance Authorized.--The Secretary, subject to the 
availability of appropriations, may provide, to any State to which an 
obsolete ship is transferred under this Act, financial assistance to 
prepare the ship for use as an artificial reef, including for--
        ``(1) environmental remediation;
        ``(2) towing; and
        ``(3) sinking.
    ``(b) Amount of Assistance.--The Secretary shall determine the 
amount of assistance under this section with respect to an obsolete 
ship based on--
        ``(1) the total amount available for providing assistance under 
    this section;
        ``(2) the benefit achieved by providing assistance for that 
    ship; and
        ``(3) the cost effectiveness of disposing of the ship by 
    transfer under this Act and provision of assistance under this 
    section, compared to other disposal options for that ship.
    ``(c) Terms and Conditions.--The Secretary--
        ``(1) shall require a State seeking assistance under this 
    section to provide cost data and other information determined by 
    the Secretary to be necessary to justify and document the 
    assistance; and
        ``(2) may require a State receiving such assistance to comply 
    with terms and conditions necessary to protect the environment and 
    the interests of the United States.''.
    (2) Section 4(4) of such Act (16 U.S.C. 1220a(4)) is amended by 
inserting ``(except for any financial assistance provided under section 
7)'' after ``at no cost to the Government''.
    (b) Environmental Best Management Practices for Preparing Vessels 
for Use as Artificial Reefs.--(1) Not later than September 30, 2003, 
the Secretary of Transportation, acting through the Maritime 
Administration, and the Administrator of the Environmental Protection 
Agency shall jointly develop environmental best management practices to 
be used in the preparation of vessels for use as artificial reefs.
    (2) The environmental best management practices under paragraph (1) 
shall be developed in consultation with the heads of other Federal 
agencies, and State agencies, having an interest in the use of vessels 
as artificial reefs.
    (3) The environmental best management practices under paragraph (1) 
shall--
        (A) include practices for the preparation of vessels for use as 
    artificial reefs to ensure that vessels so prepared will be 
    environmentally sound in their use as artificial reefs;
        (B) ensure that such practices are consistent nationwide;
        (C) establish baselines for estimating the costs associated 
    with the preparation of vessels for use as artificial reefs; and
        (D) include mechanisms to enhance the utility of the Artificial 
    Reefing Program of the Maritime Administration as an option for the 
    disposal of obsolete vessels.
    (4) The environmental best management practices developed under 
paragraph (1) shall serve as national guidelines to be used by Federal 
agencies for the preparation of vessels for use as artificial reefs.
    (5) The Secretary of Transportation shall submit to Congress a 
report on the environmental best management practices developed under 
paragraph (1) through the existing ship disposal reporting requirements 
in section 3502 of Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 1654A-
492). The report shall describe such practices, and may include such 
other matters as the Secretary considers appropriate.
    (c) Pilot Program on Export of Obsolete Vessels for Dismantlement 
and Recycling.--(1)(A) The Secretary of Transportation, Secretary of 
State, and Administrator of the Environmental Protection Agency shall 
jointly carry out one or more pilot programs through the Maritime 
Administration to explore the feasibility and advisability of various 
alternatives for exporting obsolete vessels in the National Defense 
Reserve Fleet for purposes of the dismantlement and recycling of such 
vessels.
    (B) The pilot programs shall be carried out in accordance with 
applicable provisions of law and regulations.
    (2)(A) The pilot programs under paragraph (1) shall be carried out 
during fiscal year 2003.
    (B) The pilot programs shall include a total of not more than four 
vessels.
    (C) The authority provided by this subsection is in addition to any 
other authority available to Maritime Administration for exporting 
obsolete vessels in the National Defense Reserve Fleet.
    (3) Activities under the pilot programs under paragraph (1) shall 
include the following:
        (A) Exploration of the feasibility and advisability of a 
    variety of alternatives (developed for purposes of the pilot 
    programs) for exporting obsolete vessels in the National Defense 
    Reserve Fleet for purposes of the dismantlement and recycling of 
    such vessels.
        (B) Response by the Maritime Administration to proposals from 
    the international ship recycling industry for innovative and cost-
    effective disposal solutions for obsolete vessels in the National 
    Defense Reserve Fleet, including an evaluation of the feasibility 
    and advisability of such proposals.
        (C) Demonstration of the extent to which the cost-effective 
    dismantlement or recycling of obsolete vessels in the National 
    Defense Reserve Fleet can be accomplished abroad in manner that 
    appropriately addresses concerns regarding worker health and safety 
    and the environment.
        (D) Opportunities to transfer abroad processes, methodologies, 
    and technologies for ship dismantlement and recycling in order to 
    support the pilot programs and to improve international practices 
    and standards for ship dismantlement and recycling.
        (E) Exploration of cooperative efforts with foreign governments 
    (under a global action program on ship recycling or other program) 
    in order to foster economically and environmentally sound ship 
    recycling abroad.
    (4) The Secretary of Transportation shall submit to Congress a 
report on the pilot programs under paragraph (1) through the existing 
ship disposal reporting requirements in section 3502 of Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001. The report 
shall include a description of the activities under the pilot programs, 
and such recommendations for further legislative or administrative 
action as the Secretary considers appropriate.
    (d) Construction.--Nothing in this section shall be construed to 
establish a preference for the reefing or export of obsolete vessels in 
the National Defense Reserve Fleet over other alternatives available to 
the Secretary for the scrapping of such vessels under section 
3502(d)(3) of the Floyd D. Spence National Defense Authorization Act 
for Fiscal Year 2001.

             TITLE XXXVI--ATOMIC ENERGY DEFENSE PROVISIONS

Sec. 3601. Short title.

                         Subtitle A--[Reserved]

   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

Sec. 3620. Definitions.
Sec. 3621. Reprogramming.
Sec. 3622. Minor construction projects.
Sec. 3623. Limits on construction projects.
Sec. 3624. Fund transfer authority.
Sec. 3625. Conceptual and construction design.
Sec. 3626. Authority for emergency planning, design, and construction 
          activities.
Sec. 3627. Scope of authority to carry out plant projects.
Sec. 3628. Availability of funds.
Sec. 3629. Transfer of defense environmental management funds.
Sec. 3630. Transfer of weapons activities funds.
Sec. 3631. Funds available for all national security programs of the 
          Department of Energy.

SEC. 3601. SHORT TITLE.

    This title may be cited as the ``Atomic Energy Defense Act''.

                         Subtitle A--[Reserved]
   Subtitle B--Department of Energy National Security Authorizations 
                           General Provisions

SEC. 3620. DEFINITIONS.

    In this subtitle:
        (1) The term ``DOE national security authorization'' means an 
    authorization of appropriations for activities of the Department of 
    Energy in carrying out programs necessary for national security.
        (2) The term ``congressional defense committees'' means--
            (A) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate; and
            (B) the Committee on Armed Services and the Committee on 
        Appropriations of the House of Representatives.
        (3) The term ``minor construction threshold'' means $5,000,000.

SEC. 3621. REPROGRAMMING.

    (a) In General.--Except as provided in subsection (b) and in 
sections 3629 and 3630, the Secretary of Energy may not use amounts 
appropriated pursuant to a DOE national security authorization for a 
program--
        (1) in amounts that exceed, in a fiscal year--
            (A) 115 percent of the amount authorized for that program 
        by that authorization for that fiscal year; or
            (B) $5,000,000 more than the amount authorized for that 
        program by that authorization for that fiscal year; or
        (2) which has not been presented to, or requested of, Congress.
    (b) Exception Where Notice-and-Wait Given.--An action described in 
subsection (a) may be taken if--
        (1) the Secretary submits to the congressional defense 
    committees a report referred to in subsection (c) with respect to 
    such action; and
        (2) a period of 30 days has elapsed after the date on which 
    such committees receive the report.
    (c) Report.--The report referred to in subsection (a) is a report 
containing a full and complete statement of the action proposed to be 
taken and the facts and circumstances relied upon in support of the 
proposed action.
    (d) Computation of Days.--In the computation of the 30-day period 
under subsection (b), there shall be excluded any day on which either 
House of Congress is not in session because of an adjournment of more 
than three days to a day certain.
    (e) Limitations.--
        (1) Total amount obligated.--In no event may the total amount 
    of funds obligated pursuant to a DOE national security 
    authorization for a fiscal year exceed the total amount authorized 
    to be appropriated by that authorization for that fiscal year.
        (2) Prohibited items.--Funds appropriated pursuant to a DOE 
    national security authorization may not be used for an item for 
    which Congress has specifically denied funds.

SEC. 3622. MINOR CONSTRUCTION PROJECTS.

    (a) Authority.--Using operation and maintenance funds or facilities 
and infrastructure funds authorized by a DOE national security 
authorization, the Secretary of Energy may carry out minor construction 
projects.
    (b) Annual Report.--The Secretary shall submit to the congressional 
defense committees on an annual basis a report on each exercise of the 
authority in subsection (a) during the preceding fiscal year. Each 
report shall provide a brief description of each minor construction 
project covered by the report.
    (c) Cost Variation Reports to Congressional Committees.--If, at any 
time during the construction of any minor construction project 
authorized by a DOE national security authorization, the estimated cost 
of the project is revised and the revised cost of the project exceeds 
the minor construction threshold, the Secretary shall immediately 
submit to the congressional defense committees a report explaining the 
reasons for the cost variation.
    (d) Minor Construction Project Defined.--In this section, the term 
``minor construction project'' means any plant project not specifically 
authorized by law for which the approved total estimated cost does not 
exceed the minor construction threshold.

SEC. 3623. LIMITS ON CONSTRUCTION PROJECTS.

    (a) Construction Cost Ceiling.--Except as provided in subsection 
(b), construction on a construction project which is in support of 
national security programs of the Department of Energy and was 
authorized by a DOE national security authorization may not be started, 
and additional obligations in connection with the project above the 
total estimated cost may not be incurred, whenever the current 
estimated cost of the construction project exceeds by more than 25 
percent the higher of--
        (1) the amount authorized for the project; or
        (2) the amount of the total estimated cost for the project as 
    shown in the most recent budget justification data submitted to 
    Congress.
    (b) Exception Where Notice-and-Wait Given.--An action described in 
subsection (a) may be taken if--
        (1) the Secretary of Energy has submitted to the congressional 
    defense committees a report on the actions and the circumstances 
    making such action necessary; and
        (2) a period of 30 days has elapsed after the date on which the 
    report is received by the committees.
    (c) Computation of Days.--In the computation of the 30-day period 
under subsection (b), there shall be excluded any day on which either 
House of Congress is not in session because of an adjournment of more 
than three days to a day certain.
    (d) Exception for Minor Projects.--Subsection (a) does not apply to 
a construction project with a current estimated cost of less than the 
minor construction threshold.

SEC. 3624. FUND TRANSFER AUTHORITY.

    (a) Transfer to Other Federal Agencies.--The Secretary of Energy 
may transfer funds authorized to be appropriated to the Department of 
Energy pursuant to a DOE national security authorization to other 
Federal agencies for the performance of work for which the funds were 
authorized. Funds so transferred may be merged with and be available 
for the same purposes and for the same time period as the 
authorizations of the Federal agency to which the amounts are 
transferred.
    (b) Transfer Within Department of Energy.--
        (1) Transfers permitted.--Subject to paragraph (2), the 
    Secretary of Energy may transfer funds authorized to be 
    appropriated to the Department of Energy pursuant to a DOE national 
    security authorization to any other DOE national security 
    authorization. Amounts of authorizations so transferred may be 
    merged with and be available for the same purposes and for the same 
    period as the authorization to which the amounts are transferred.
        (2) Maximum amounts.--Not more than 5 percent of any such 
    authorization may be transferred to another authorization under 
    paragraph (1). No such authorization may be increased or decreased 
    by more than 5 percent by a transfer under such paragraph.
    (c) Limitations.--The authority provided by this subsection to 
transfer authorizations--
        (1) may be used only to provide funds for items relating to 
    activities necessary for national security programs that have a 
    higher priority than the items from which the funds are 
    transferred; and
        (2) may not be used to provide funds for an item for which 
    Congress has specifically denied funds.
    (d) Notice to Congress.--The Secretary of Energy shall promptly 
notify the congressional defense committees of any transfer of funds to 
or from any DOE national security authorization.

SEC. 3625. CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Conceptual Design.--
        (1) Requirement.--Subject to paragraph (2) and except as 
    provided in paragraph (3), before submitting to Congress a request 
    for funds for a construction project that is in support of a 
    national security program of the Department of Energy, the 
    Secretary of Energy shall complete a conceptual design for that 
    project.
        (2) Requests for conceptual design funds.--If the estimated 
    cost of completing a conceptual design for a construction project 
    exceeds $3,000,000, the Secretary shall submit to Congress a 
    request for funds for the conceptual design before submitting a 
    request for funds for the construction project.
        (3) Exceptions.--The requirement in paragraph (1) does not 
    apply to a request for funds--
            (A) for a construction project the total estimated cost of 
        which is less than the minor construction threshold; or
            (B) for emergency planning, design, and construction 
        activities under section 3626.
    (b) Construction Design.--
        (1) Authority.--Within the amounts authorized by a DOE national 
    security authorization, the Secretary may carry out construction 
    design (including architectural and engineering services) in 
    connection with any proposed construction project if the total 
    estimated cost for such design does not exceed $600,000.
        (2) Limitation on availability of funds for certain projects.--
    If the total estimated cost for construction design in connection 
    with any construction project exceeds $600,000, funds for that 
    design must be specifically authorized by law.

SEC. 3626. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION 
              ACTIVITIES.

    (a) Authority.--The Secretary of Energy may use any funds available 
to the Department of Energy pursuant to a DOE national security 
authorization, including funds authorized to be appropriated for 
advance planning, engineering, and construction design, and for plant 
projects, to perform planning, design, and construction activities for 
any Department of Energy national security program construction project 
that, as determined by the Secretary, must proceed expeditiously in 
order to protect public health and safety, to meet the needs of 
national defense, or to protect property.
    (b) Limitation.--The Secretary may not exercise the authority under 
subsection (a) in the case of a construction project until the 
Secretary has submitted to the congressional defense committees a 
report on the activities that the Secretary intends to carry out under 
this section and the circumstances making those activities necessary.
    (c) Specific Authority.--The requirement of section 3625(b)(2) does 
not apply to emergency planning, design, and construction activities 
conducted under this section.

SEC. 3627. SCOPE OF AUTHORITY TO CARRY OUT PLANT PROJECTS.

    In carrying out programs necessary for national security, the 
authority of the Secretary of Energy to carry out plant projects 
includes authority for maintenance, restoration, planning, 
construction, acquisition, modification of facilities, and the 
continuation of projects authorized in prior years, and land 
acquisition related thereto.

SEC. 3628. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), amounts 
appropriated pursuant to a DOE national security authorization for 
operation and maintenance or for plant projects may, when so specified 
in an appropriations Act, remain available until expended.
    (b) Exception for Program Direction Funds.--Amounts appropriated 
for program direction pursuant to a DOE national security athorization 
for a fiscal year shall remain available to be obligated only until the 
end of that fiscal year.

SEC. 3629. TRANSFER OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of each field 
office of the Department of Energy with the authority to transfer 
defense environmental management funds from a program or project under 
the jurisdiction of that office to another such program or project.
    (b) Limitations.--
        (1) Number of transfers.--Not more than one transfer may be 
    made to or from any program or project under subsection (a) in a 
    fiscal year.
        (2) Amounts transferred.--The amount transferred to or from a 
    program or project in any one transfer under subsection (a) may not 
    exceed $5,000,000.
        (3) Determination required.--A transfer may not be carried out 
    by a manager of a field office under subsection (a) unless the 
    manager determines that the transfer is necessary--
            (A) to address a risk to health, safety, or the 
        environment; or
            (B) to assure the most efficient use of defense 
        environmental management funds at the field office.
        (4) Impermissible uses.--Funds transferred pursuant to 
    subsection (a) may not be used for an item for which Congress has 
    specifically denied funds or for a new program or project that has 
    not been authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The requirements of 
section 3621 shall not apply to transfers of funds pursuant to 
subsection (a).
    (d) Notification.--The Secretary, acting through the Assistant 
Secretary of Energy for Environmental Management, shall notify Congress 
of any transfer of funds pursuant to subsection (a) not later than 30 
days after such transfer occurs.
    (e) Definitions.--In this section:
        (1) The term ``program or project'' means, with respect to a 
    field office of the Department of Energy, a program or project that 
    is for environmental restoration or waste management activities 
    necessary for national security programs of the Department, that is 
    being carried out by that office, and for which defense 
    environmental management funds have been authorized and 
    appropriated.
        (2) The term ``defense environmental management funds'' means 
    funds appropriated to the Department of Energy pursuant to an 
    authorization for carrying out environmental restoration and waste 
    management activities necessary for national security programs.

SEC. 3630. TRANSFER OF WEAPONS ACTIVITIES FUNDS.

    (a) Transfer Authority for Weapons Activities Funds.--The Secretary 
of Energy shall provide the manager of each field office of the 
Department of Energy with the authority to transfer weapons activities 
funds from a program or project under the jurisdiction of that office 
to another such program or project.
    (b) Limitations.--
        (1) Number of transfers.--Not more than one transfer may be 
    made to or from any program or project under subsection (a) in a 
    fiscal year.
        (2) Amounts transferred.--The amount transferred to or from a 
    program or project in any one transfer under subsection (a) may not 
    exceed $5,000,000.
        (3) Determination required.--A transfer may not be carried out 
    by a manager of a field office under subsection (a) unless the 
    manager determines that the transfer--
            (A) is necessary to address a risk to health, safety, or 
        the environment; or
            (B) will result in cost savings and efficiencies.
        (4) Limitation.--A transfer may not be carried out by a manager 
    of a field office under subsection (a) to cover a cost overrun or 
    scheduling delay for any program or project.
        (5) Impermissible uses.--Funds transferred pursuant to 
    subsection (a) may not be used for an item for which Congress has 
    specifically denied funds or for a new program or project that has 
    not been authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The requirements of 
section 3621 shall not apply to transfers of funds pursuant to 
subsection (a).
    (d) Notification.--The Secretary, acting through the Administrator 
for Nuclear Security, shall notify Congress of any transfer of funds 
pursuant to subsection (a) not later than 30 days after such transfer 
occurs.
    (e) Definitions.--In this section:
        (1) The term ``program or project'' means, with respect to a 
    field office of the Department of Energy, a program or project that 
    is for weapons activities necessary for national security programs 
    of the Department, that is being carried out by that office, and 
    for which weapons activities funds have been authorized and 
    appropriated.
        (2) The term ``weapons activities funds'' means funds 
    appropriated to the Department of Energy pursuant to an 
    authorization for carrying out weapons activities necessary for 
    national security programs.

SEC. 3631. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE 
              DEPARTMENT OF ENERGY.

    Subject to the provisions of appropriation Acts and section 3621, 
amounts appropriated pursuant to a DOE national security authorization 
for management and support activities and for general plant projects 
are available for use, when necessary, in connection with all national 
security programs of the Department of Energy.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.